If you hadn't seen, in October we made a $1.000.000 deal with Mark Cuban and Robert Herjavec on Season 13 Episode 4 of ABC's Shark Tank. Watch the segment below.
Read the inside scoop from co-founders Rasmus Barfred and Bo Haaber.
We flew into Los Angeles and were picked up and taken to SONY Production. I don’t know what we expected but it was way bigger than I thought it would be.
Shark Tank has a tradition of starting each pitch with a 90-second stare down with the sharks before the pitch, which felt like an eternity. The bell rang indicating that we should begin and we delivered our pitch and initial ask.
Robert Herjavec burst out in a big laugh after hearing the valuation and that’s how we started our counter. I built out a cascade of value propositions like the product, customer, and market size, and that’s how we got started with our negotiation.
After 5-10 minutes, Mark Cuban made the first offer, then all the sharks made their first offer. They were confident that we are good business people that know our business inside and out.
The conversation changed from talking about THEMAGIC5 as a swimming goggle company to talking about THEMAGIC5 as a technology company. We felt that the experience among the group of sharks would be valuable as we develop as a company, as they have a deep understanding of how to take the technology into other markets outside of swimming.
They placed their second offers, and then they gave us an opportunity to discuss our counteroffer. Before we left to discuss it, Robert Herjavec stood up and offered 1 million dollars for 6.5 percent. We felt that it was a great deal and accepted.
55 minutes flew by.
Afterward, Mark Cuban reached out to Robert Herjavec and suggested that they share the deal 50/50. Now, we have two new investors in Robert and Marc, each with 3.25%.
There are very few deals with the valuation that THEMAGIC5 received. We had a great time sharing our love for THEMAGIC5 with the Sharks. We were also very excited to tell our families in Denmark that we will be on American Television.
Thanks for following along with our exciting news! We're excited for the future of THEMAGIC5 and grateful to our community for getting us to where we are today.
-Rasmus and Bo