‘Shark Tank’ founders make Kevin O’Leary ride bike during wild pitch — and still walk away with huge deal
'Shark Tank' investor Kevin O'Leary doesn't mind testing out different products on the ABC show, and when Bryan Visintin and Ani Armstrong pitched a product that makes cycling a more comfortable affair, he couldn't stop himself from giving it a go. Visintin and Armstrong introduced their company, VSeat, to the esteemed Sharks Mark Cuban, Lori Greiner, Barbara Corcoran, Robert Herjavec, and O'Leary, explaining the many problems that saddle soreness causes for cyclists. The pitch caught the attention of the Sharks, but deciding without testing out the product first was not something they were expected to do, especially when the duo was seeking $150,000 for a 5% stake in the company.
"Sharks, no matter what we try to do to fix the bicycle seat, we still suffer from saddle soreness even when we wear uncomfortable padded shorts like this," Visintin quipped. "Riding bikes should be fun, the outdoors, the fresh air, the breeze in your hair, or on your aerodynamic head, but even after a short ride..." Armstrong said, with Visitin completing the sentence, "...biking hurts down here. It's the undercarriage calamity. It's the gear-shifting, groin-grinding, it's the pedal-powered private pandemonium and pain." The humorous approach caught the Sharks' attention immediately, who couldn't help but laugh out loud, while accepting the intensity of the problem.
Armstrong continued their pitch, saying, "They get it, Bryan, crotch pain is real. Traditional bike saddles put too much pressure on the nerves and arteries, restricting the blood flow to the genitals, which is why we created the VSeat, a revolutionary noseless and bumpless bicycle seat ergonomically designed to support the sit bones for prolonged rides. The VSeat soft pad allows for unrestricted blood flow for both women and men." "Even though it's slightly pitched forward, the slip-resistant material will grip your tush the way you thought only your lover could," Visitin added. The duo then informed the Sharks that installing the Vseat was as easy as adjusting the height of your seat. "Plus, it's extra durable, it's lightweight, and you don't have to wear shorts that look like diapers," they concluded.
O'Leary and Corcoran immediately announced that they'd like to try it, and wasted no time in joining the Vseat owners on stage. "As an avid cyclist, I spend an hour and a half every day on my bike, and I'm yet to find a seat that's good," O'Leary said as he walked on to the stage. "What's it like, Kevin?" Herjavec asked as he tried the new seats, to which O'Leary replied, "It's very package-friendly. It's not constrained in any way; your rumper rino is well-supported. I think it is better." Shortly afterward, Corcoran gave it a try. "It's great and I'm so surprised because there's no cushioning and yet it feels totally comfortable. It's terrific," she said.
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When asked about the sales of their company, Armstrong shared, "We have sold so far over $300,000 over 3 years. $26,000 of that came last year, and this year, we've sold a little over $270,000." Without wasting any time, the Sharks came down to business, with Cuban being the first Shark to back out due to the small profit margins that bikes generate. Corcoran and Greiner followed in Cuban's footsteps and dropped out as they felt this wasn't the right product for them.
But O'Leary, who had tried the product firsthand, saw some potential in VSeat and was the first to offer $150,000 for a 20% stake in the company. Herjavec, too, joined in, offering $150,000 for 15% of the firm. Armstrong asked Herjavec if he was willing to do 12.5% for the same amount, but the shark refused, saying that he felt the amount was a fair valuation for 15%. Visintin responded by saying, "Well, the only thing better than one shark is two sharks." In the end, O'Leary and Herjavec made a final offer of $200,000 for 25% equity, which the entrepreneurs accepted.
