All 5 'Shark Tank' judges fought for their goggle brand — these founders knew exactly whom to pick
Investors on “Shark Tank” are known to closely scrutinize businesses before shelling out money, which is why getting them to make a million-dollar deal is a rare feat. The product has to be understandable and useful, and the entrepreneurs need to have the sales to back it up. One usually doesn’t see a company making swimming goggles as one to get such a big sum of money, but that’s exactly what Robert Herjavec offered on an earlier episode of the show. All five sharks made offers to the entrepreneurs without taking a significant amount of equity.
The entrepreneurs were Rasmus Barfred and Bo Haaber, and they asked for $500,000 for 2.5% of their company, TheMagic5. The unique thing about the goggles they produce is that they’re custom-made to fit the face shape of the customer. A lot of swimming goggles today come in a few standard sizes. Barfred and Haaber, both triathletes, faced the problem of goggles not fitting them while they competed, which was the inspiration for the company.
The two Danes boasted lifetime sales of more than $3 million, with a threefold year-on-year growth since the company started at the time of taping. The year prior, they had earned over a million in revenue, and year-to-date was $1.5 million. The sharks saw the value behind the product and were impressed with the company’s numbers as well.
Mark Cuban was the first to make an offer, asking for 7.5% of the company for half a million dollars. However, he was open to hearing counteroffers. Not to be outdone, Kevin O’Leary partnered with guest shark Nirav Tolia to offer the money for a 5% stake in the company. However, they wanted a royalty fee of $3 per unit until $1.5 million was paid back. Robert Herjavec was next to come in, asking for 5% of the business.
Lori Greiner also saw value in the business, but she had one problem. The company used robotics to get the facial parameters of a customer and craft their goggles according to those readings. Greiner could look after the sales side of things, but she needed either Cuban or Herjavec to partner with her for the tech side of things. The latter agreed, and they offered the entrepreneur the money for 6% of the company.
One of the most unprecedented parts of the whole pitch was that O’Leary agreed to go as low as 3% equity to get the deal done, along with Tolia. The entrepreneurs seemed confused, and that’s when Herjavec swept in. He offered a million dollars for 6.5%. “It’s a crazy offer for me,” he said. This was a no-brainer, and the Danish entrepreneurs took the deal almost immediately.
“It was crazy. I don’t know what we expected, we were taken into this massive hangar, and my feeling was like there were 50-100 people on set, and it looked like a set from a Hollywood movie. It was really something — making the pitch and seeing their reaction,” Barfred said afterwards as per a report in Swimming World.
