'Shark Tank' contestants showed off a Nikola Tesla-like science experiment and got a $500,000 deal
Innovative technology always catches the eye of investors on “Shark Tank,” and a science experiment during the pitch is bound to stand out. Nikola Tesla is undoubtedly one of the greatest scientists of all time, thanks to his contributions to the design of the modern alternating current (AC) electricity supply system. That's why, when entrepreneurs came to the show with a gigantic Tesla coil and demonstrated how it worked, all five sharks were impressed. In the end, they walked away with half a million dollars from three sharks.
Eric Goodchild and Jake Slatnick sought $500,000 for a 7% stake in their company, Aira. The company produced wireless chargers that don’t require a device to be aligned with the power coil to be charged. Multiple devices can be charged at once thanks to the size of these chargers. While pitching the product, Slatnick claimed that they had created the future of wireless charging as Goodchild turned on the Tesla coil.
The sharks loved seeing the ray of electricity shoot out of the massive device, and they couldn’t keep calm. It’s not surprising that the coil worked as well as it did. Goodchild, after all, was one of the foremost experts in the world on Tesla coils. He even held a Guinness World Record for one of the largest and most powerful Tesla coils ever built. Speaking about the coil he had brought to the show, he said that he built it in high school.
On the business side of things, some sharks saw the vision behind Aira while others were unsure about its future. Mark Cuban believed that the company may get leapfrogged by others with more innovative products. Daymond John said that the unpredictable nature of the tech industry made it hard for him to see guaranteed long-term success. As a result, both of them walked out.
The entrepreneurs claimed that their company was not a product company but a licensing company. This means that they sell their technology to other companies, who then brand it accordingly and sell it to consumers. They already had a licensing partner who had prepaid the royalties for 33,000 units at the time of taping. The remaining three sharks were all impressed, and they all made offers to the duo.
Robert Herjavec was the first, offering $500,000 for a 10% stake in the company. Kevin O’Leary and Lori Greiner then teamed up, offering the same money as a loan with 9% interest for 15% of the business. They then changed their offer and did away with the loan part of things. It was a tough decision for the entrepreneurs, and they needed a moment to think about it.
They then came up with a counteroffer for all three sharks. They asked if Herjavec, Grenier, and O’Leary would consider teaming up to pay $500,00 for a 15% stake. This was an agreeable offer to all the parties involved, and a deal was struck. “Done,” Herjavec said after a moment’s pause before shaking the entrepreneur’s hands.
