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A drone startup walked into ‘Shark Tank’, made all five Sharks fight — then convinced them to team up

They asked for $500K — and walked away with a $1.5M deal from all five Sharks

It's a rare sight to see the 'Shark Tank' investors battling it out to invest in a business, but miracles do happen. In an episode of 'Shark Tank' Season 7, JD Claridge and Charles Manning pitched their innovative drone company, XCraft, in front of the esteemed Sharks Mark Cuban, Daymond John, Kevin O'Leary, Lori Greiner, and Robert Herjavec. During their pitch, the founders of XCraft presented X PlusOne, a high-speed drone capable of vertical and horizontal flight. As soon as Claridge and Manning wrapped up their pitch, they received multiple offers on the table, and eventually, they walked away with a great deal.

In the episode, Claridge and Manning were seeking $500,000 in exchange for 20% of their company. During their presentation, Claridge said, "Much like when the Wright brothers first took their flight in 1903, we're witnessing a new dawn of aviation, the age of unmanned flight. The X PlusOne is a drone redefined. We've combined both the hovering precision of a helicopter and the fast flight of an aircraft. You can soar up to 60 mph and climb as high as 10,000 feet, and you can seamlessly transition from high speed back to hover. XCraft is breaking boundaries, and with your help, the sky will no longer be the limit." 

The duo revealed that the manufacturing cost of one drone was $400, and they sold it for $1,800. When asked about the sales, Claridge shared, "We've got $173,000, right now in pre-sales. Kickstarter was $143,000, and then, we've done about 30,000 cents on our website." Following that, the Sharks came down to business, with Kevin O'Leary being the first to offer $750,000 for a 25% stake. According to Business Insider, before Claridge and Manning could respond, John entered the chat and said, "You know what I smell? I smell a nasty, nasty Shark fight that's about to happen." Ultimately, John offered $1 million for 25%.

Immediately, Greiner offered $1 million for 20% and O'Leary matched that. After seeing the Sharks fight, Manning quipped, "We contemplated this as an opportunity, and it's a fantastic opportunity. We believe everything is about the team. Here's my suggestion. Is there a capacity to do a syndicate where we get each and every one of you participating in your own unique ways?" to which O'Leary replied, "Oh, I'm interested in that." At that point, John, Greiner, and Herjavec also agreed.

Then, Claridge stated that he was looking forward to a $10 million valuation. Shortly afterward, Daymond said, "I smell greedy people now. I don't think this is worth more than $6 million." Meanwhile, O'Leary declared, "I think that ceiling for me is 5%. I got to have 5% minimum. That's the smallest position I've got in anything I'm working hard on." After having a discussion in the hallway, Claridge and Manning returned and asked for $1.5 million for 25% equity, in which each Shark invests $300,000 for 5% equity. In the end, all five Sharks agreed, and they sealed the historic deal with a handshake and a hug.