15-year-old walks into ‘Shark Tank’ with a simple idea he had at 8 — and bags life-changing $100K deal
A great idea never goes unrewarded on the ‘Shark Tank’ stage, especially when it comes from a kid-preneur! When 15-year-old Nathaniel Wellen appeared on the show, the investors were left impressed. The young entrepreneur gave a simple twist to an everyday use object, especially during rains and storms: an umbrella. The Los Angeles-based high school student created The Duo, an umbrella with a second extendable handle. This design allows two people to comfortably stand under one umbrella which each having their own handles to hold on to. The investors were impressed not just by the idea but also by the thought process that the kid-preneur had.
Something that further impressed the investors was the fact that Wallen came up with the idea at 8 years of age. The teen recalled getting drenched while sharing an umbrella with his father, and that’s how he thought of the idea. “That’s a good size for a little compact umbrella,” investor Lori Greiner said while testing a prototype. “You’re a great example for kids out there who want to be entrepreneurs,” Mark Cuban added. The young contestant who arrived on stage with his younger sister and mother asked for $100,000 in exchange for 10% equity.
Wellen’s company, The Duo, had only manufactured prototypes at the time. Moreover, the company had a weather accessories brand, Shed Rain, as a partner. Wellen revealed that his company only owns 49% while the majority lies with the subsidiary company. “They’re going to help us [with] prototypes, manufacturing, distribution ... They’re going to get us in stores like Target, Walmart, Kroger, and Costco,” he explained. Considering the pitchers had a low stake in the company that was running, it seemed like a risky bet. In addition to that, he asked for 10% equity, which would further dilute his stake.
The judges were impressed by the fact that the young entrepreneur managed to crack a partnership by cold calling the company and established a cordial relationship with the CEO. However, they also pointed out the issues in his business. “If you dilute your equity at all, even 10%, you’re under 50%. And that’s an issue going into what you’re doing,” Greiner added. Cuban also stepped out of the deal because of the messed-up equity division. “Given the circumstances, you want to stay over 50%. For those reasons, I’m out, Nathaniel — but congratulations on what you’ve done,” he told the contestant.
Kevin O’Leary, aka Mr. Wonderful, also refused to make an offer and saw Wellen’s age as a roadblock. “I don’t like the fact that you’re in school. What’s your teacher going to say when I call your cell and you’re in class? They’re not going to let you answer, and that really pisses me off,” the Shark told the contestant. Barbara Corcoran also opted out of the deal for her own reasons. Robert Herjavec wanted to make an offer as he loved the products and saw potential in them, but he offered a bigger stake in the company, 20%. After some back and forth, they closed the deal with 18%.
