'Shark Tank' offers a life-changing deal to 15-year-old who came up with a simple umbrella pitch
All that is required to win over investors on ABC's show "Shark Tank" is the zeal for entrepreneurship, a great idea, and a plan. Nathaniel Wellen had all that at the young age of 15 and his simple twist to an everyday object was enough to convince sharks to invest in its future. The Los Angeles-based high school-going kid created The Duo, which is an umbrella with a second extendable handle designed for two people of different heights to stand beneath it comfortably.
Wellen was struck with this idea when he was just 8 years old after he got drenched while sharing an umbrella with his father. He later teamed up with his dad to develop and design the umbrella before obtaining a utility patent for it. On the show, the teenager arrived with his mother and his sister, who helped him demonstrate the umbrella for the sharks. "That’s a good size for a little compact umbrella," Lori Greiner said while testing a prototype. "You’re a great example for kids out there who want to be entrepreneurs," Mark Cuban added.
He then asked for $100,000 in exchange for 10% of his company, which only had prototypes at the time. The company however already had the weather accessories brand Shed Rain as a partner. "They own 49% of the company,” the founder said. “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 added.
The judges were impressed that Wellen got his partnership by cold-calling the company and had a cordial partnership with the CEO. "If you dilute your equity at all, even 10%, you’re under 50%. And that’s an issue going into what you’re doing," Cuban said. "Given the circumstances, you want to stay over 50%. for those reasons, I’m out, Nathaniel — but congratulations on what you’ve done," Cuban added.
Lori Greiner, Barbara Corcoran, and Mr. Wonderful Kevin O’Leary on the other hand declined to make offers, as O'Leary 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," he said.
Robert Herjavec on the other hand was very interested in making an offer. He said how he loved deals where there's a potential exit already built in. "You create this product, you partner with them and it takes off ... There’s no way they’re not going to buy you out." Herjavec went on to offer $100,000 for 20% of the company. This prompted Wellen to negotiate and offer 15%, and Herjavec countered with 18%. "You’ve got a deal, Robert," Wellen to close the negotiations. People in the comments section also expressed equal admiration for the invention, "This kid is impressive, his umbrellas cool but I also think he could sell ice to an Eskimo," read the top comment by @chrome2yourdome while another user didn't seem to agree with the idea. "Call me crazy, but isn't there already a solution to this problem? The taller person of the two carries the umbrella. What's the purpose of having the other person hold the handle? Seems unnecessary," @Razear added.
