'Shark Tank' offers a life-changing deal to founder who dropped his phone in toilet on live TV
Entrepreneurs who get the chance to showcase their business on “Shark Tank” have to stand out from the rest. Some of them resort to measures that can be deemed extreme. That is exactly what Adam Cookson and Craig Beinecke did when one of them intentionally dropped their phone in a toilet full of water as part of their pitch on a show’s earlier episode. Their company was called "TekDry," and they were seeking half a million for 5% of their business.
What "TekDry" prided itself on was a small chamber made to fix cell phones that had been dropped in water. Many people use their phones while sitting on a toilet pan, and sometimes, it can fall right in. TekDry’s product helped evaporate that water from the inside and make the phone as good as new. Their product looked like a chamber, consisting of several metal beads on the bottom that emitted a gentle heat. It also created a vacuum inside when turned on, helping the water escape the phone as it vaporized more effectively.
It was a smart product. However, its valuation was way too high, especially considering that the company had sales of only $29,000 in the year before the recording of the segment. However, the entrepreneurs claimed that they were on course to make $650,000 that year. While that was a big step up from before, most sharks were still left unconvinced by the product’s future.
The entrepreneurs said they had their products in 82 stores, but Robert Herjavec did not understand why they wanted to get into the retail space. He and Lori Grenier saw TekDry as having an online market. So, the entrepreneurs’ vision for going into retail space did not sit right with them. Grenier even said that she did not know how they would be able to make the money she offered them back fast enough.
As a result, both sharks backed out. Barbara Corcoran believed that technology was TekDry’s biggest enemy. At the time, water-resistant phones were not that common, but Apple had just started to make products that were somewhat resistant to it, she added. The shark believed that it was the future of cell phones, and in that case, TekDry’s service would be rendered obsolete. Therefore, she backed out.
For Mark Cuban, money was a big issue, just like Grenier, and he, too, said no to offering them a deal for that reason. There was only one man left, Kevin O’Leary. He could be a tough negotiator, but Mr. Wonderful could make any product go big with his connections and reputation. He offered the $500,000 as a loan at 13% interest to be paid back in 36 months and also asked for 5% of the company.
This way, he would have a foolproof way of making his money back and hold a stake in the business, in case it went big. The entrepreneurs had no other offer on the table and decided to side with Mr. Wonderful on this one.
