After simulating an earthquake, these ‘Shark Tank’ founders scored a surprise offer — and had to act fast
Christian Schauf and Mike Escamilla came from a life on a Wisconsin dairy farm, and the two had their reasons to be prepared for any disaster. Appearing on the hit business show ‘Shark Tank,’ the two introduced The Seventy2, asking for $100,000 for 5% equity. Their product was a compact, all-in-one survival kit filled with essential tools and information.
Schauf and Escamilla began their pitch with a simulation that caught the Sharks’ attention. The simulation depicted an earthquake and immediately captivated the Sharks. According to Shark Tank Recap, the Season 9 backpack was designed to support 72-hour survival in a disaster. The waterproof backpack was also lightweight and packed with high-quality tools. It included first aid supplies and other essential gear. The founders pitched it as a comprehensive solution for adventurers, first responders, and disaster victims.
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The duo explained their pitch with a display board, and the Sharks were impressed with the backpacks. While discussing numbers, the duo revealed $700,000 in sales over the past six months, with $400,000 from a successful IndieGoGo campaign and $300,000 in direct sales through their website, according to the outlet. Impressively, they reduced their per-unit manufacturing cost from $209 to $144. Being a small business made it harder to build strong relationships with factories. This, in turn, hindered the production of their in-demand products.
Barbara Corcoran was the first to express interest, even saying she’d buy one for her husband, but she passed, leaving the door open for the other Sharks. Meanwhile, Mark Cuban decided to back out, thinking the only way he could help the company was with straight cash. Robert Herjavec felt the company had more challenges than the founders had mentioned. However, he went on to offer $200,000 for 10% ownership.
The deal was super profitable for the duo standing on the podium of ‘Shark Tank.’ It reflected a higher valuation than what they had originally asked for. It also gave both entrepreneurs more money and a larger equity stake. Herjavec offered a deal straight out of an entrepreneur’s dream, the catch was that they had to accept his offer then and there, without even hearing the offers from other Sharks. Lori Greiner tried to interject and convince Schauf and Escamilla to wait. But the duo accepted Herjavec’s offer and shook hands on the deal. After their ‘Shark Tank’ appearance, the company saw solid sales. However, in a twist, Herjavec ultimately backed out of the deal in 2019, according to Shark Tank Blog.