Shark Tank US | All Five Sharks Fight For Deal With TheMagic5
Sony Pictures Television
10 min, 19 sec
Entrepreneurs Rasmus and Boom pitch their custom-fitted swimming goggles, The Magic Five, to the Sharks, asking for $500,000 for 2.5% equity.
Summary
- Rasmus and Boom introduce The Magic Five, custom-fitted goggles made using facial scanning technology to provide a perfect fit.
- They explain their product's advantages, such as no leakage and no marks after use, and state that top swimmers and triathletes are already their customers.
- The asking price is $500,000 for 2.5% equity, with goggles selling at $55 and a cost of $14 to make.
- The company's revenue growth is strong, and they have a utility patent on the fitting algorithm.
- After intense negotiations, they accept Robert Herjavec's offer of $1 million for 6.5% equity.
Chapter 1
Rasmus and Boom introduce their company, The Magic Five, and their innovation in the fitness accessory space.
- The entrepreneurs pitch their unique custom-fitted swimming goggles to the Sharks.
- They emphasize the common problems with standard goggles such as discomfort and leakage.
- The Magic Five uses face-scanning technology to create a perfect fit for every individual.
Chapter 2
The entrepreneurs discuss the details of their product, including the scanning process and pricing strategy.
- Scanning a face takes 13 seconds, and the product is delivered directly to the customer's doorstep.
- The goggles are priced at $55, with a variety of tints available for different swimming conditions.
- They seek an investment to scale up their operations and make the goggles available to all swimmers.
Chapter 3
Rasmus and Boom provide financial details and discuss the company's growth trajectory.
- The company has 40,000 customers and a lifetime revenue of $3 million since its start in 2018.
- Revenue growth has tripled each year, with the current year's revenue already at $1.5 million.
- The entrepreneurs discuss their manufacturing process and intellectual property protection.
Chapter 4
The Sharks make various offers to the entrepreneurs, leading to a heated negotiation.
- Kevin O'Leary makes the first offer, asking for 7.5% equity for $500,000.
- Mark Cuban and Lori Greiner propose a joint venture debt deal with a royalty structure.
- Robert Herjavec offers $500,000 for 5% equity, emphasizing his experience in the swimming market.
Chapter 5
After a series of counteroffers, Rasmus and Boom close a deal with Robert Herjavec.
- Robert modifies his offer to $1 million for 6.5% equity, doubling the initial investment request.
- The entrepreneurs quickly accept Robert's offer, concluding the negotiation.
- They express excitement about working with Robert to take their business to the next level.