'Shark Tank': Robert Herjavec abandons Lori Greiner to strike $1M deal with THEMAGIC5
In the middle of a three-way bidding war, Robert Herjavec threw Lori Greiner under the bus to strike a million dollar deal
For swimmers, taking on the water be it a pool or a natural water body, it is important to maintain focus. Swimming definitely puts your body and mind to the test and often demands undivided attention. For people who swim competitively, the challenge to stay focused is even bigger. In such circumstances, having the right equipment is key.
For the creators of THEMAGIC5, all of whom swim competitively, the lack of good swimming goggles made them feel as though it was a problem that needed to be solved. With their custom-created goggles that are made to measure, THEMAGIC5 ensures that you are on top of your game. Now, it's up to them to convince Mark Cuban, Lori Greiner, Kevin O'Leary, Robert Herjavec and Nirav Tolia that they are on top of theirs!
Uncle-nephew duo of Haaber and Barfred went on the show, asking for $500,000 for 2.5% equity. While that might like a tall demand, the sharks bit the bait. As the duo explained with a 2.2 billion goggles market, they currently had a 40,000 strong customer base with a lifetime revenue of $3 million. With making cost coming in at $14 and customer acquisition at $24, the company was hoping to scale their business even further. Seeing that the company made $1.2 million last year and was looking to close at 1.5 million this year, the sharks wasted no time to dive right in.
Fans were instantly impressed with the product itself. "I would totally be interested in custom swimming goggles! I have bought so many over the years. #SharkTank" tweeted a fan. "I cant even begin to tell you the number of pairs of Goggles I've bought over the years trying to find 1 that is comfortable. There is definitely a market for this. #SharkTank" added another. Fans weren't the only ones who were curious about the product, as sharks too, were all in when they spotted a product of great potential. "Wow! All of the sharks are interested in this innovative product that definitely fixes a problem! #SharkTank" tweeted a fan. "All the sharks want in, it is a great concept. Original idea @TheMagic5swim guys and a family company Nice. Custom goggles #SharkTank #TheMagic5" added another.
I would totally be interested in custom swimming goggles! I have bought so many over the years. #SharkTank— Ryan Bartholomee (@RyanBartholomee) October 30, 2021
I cant even begin to tell you the number of pairs of Goggles I've bought over the years trying to find 1 that is comfortable. There is definitely a market for this. #SharkTank— Novafan23 (@Novafan23) October 30, 2021
Wow! All of the sharks are interested in this innovative product that definitely fixes a problem! 🏊♂️ #SharkTank— Ryan Bartholomee (@RyanBartholomee) October 30, 2021
When it came down to offers, it was an all-out bidding war. Cuban was the first one to make a deal for 7.5%, arguing that he had a robotics company, an AI company and a sports one as well. However, Tolia and O'Leary came in hot, offering 5% with an additional royalty, until the $1.5 million had been recouped. Herjavec wasted no time making an offer for 5% with no royalty. Greiner wasn't the one to be left out, seeing that she was the one required if they were looking to make big sales.
She looked at Herjavec to go in it with her and make a joined offer. They both offered 6% for $500,000. O'Leary and Tolia made two more offers, finally boiling down to 3% equity along with royalty. However, at the last moment, Herjavec swooped right in, offering them 6.5%, no royalty for a whopping $1 million. The duo was thrilled and took the offer immediately, citing that Herjavec was their favorite shark going in.
Catch the latest episode of 'Shark Tank' Season 13 on Fridays, from 8 pm ET to 9 pm ET. Missed an episode? Been wanting to catch up? Episodes can also be viewed the next day on demand and on Hulu. Not just that, you can also watch old seasons and episodes on Amazon Prime Video and iTunes.