'Shark Tank' offers a life-changing deal to founder couple who turned an injury into a business
"Shark Tank" deals do eventually depend on sales figures and promising business models, but every business that impresses the sharks begins with a need to address everyday problems. The founders of "Night Runner 270" probably had one of the best origin stories on the show. Renata and Doug Storer came up with the idea when Doug was injured. He said, "I was training for my fifth marathon on a dark early morning training run when I hit a pothole that I couldn't see and took a dive I was injured." Doug added that after getting home, he told his wife that he needed "headlights for his sneakers," which is when the concept of "Night Runner 270" was born.
The Storer couple appeared in Season 8 of the show, seeking $250,000 for 10% of their business. They started a bidding war with two of their products and went home with a deal, although things didn't work out later.
They introduced their product, which was highly durable, waterproof lights that attach to running shoes and provide visibility to the users. The couple handed out samples, and everyone on the panel tried them on. Mark Cuban took some strides wearing the lights, and he couldn't even feel that anything was attached to his shoes.
While the product impressed the Sharks, the company's numbers were solid as well. They shared that the lights cost them $15.50 to make wholesale for $30, and the retail price was $59.95. They further added that in just eight months of operation, they have sold $260,000 worth of products, and if they get more investment to manufacture, they could close the year with $760,000 in sales. While most of the panel remained interested, Barbara Corcoran chose to take an early exit. She said she didn't see enough night runners in New York City, so she was out.
At this point, Doug said, "There is more it's called the 'Night Shift' is for the occupational safety market. It is for people who work at night, like construction workers, and road workers out there." Following this, Kevin O'Leary said, "I was thinking I was going to go out but when you showed me the product for the industrial safety and walking market that got my juices flowing. That makes a lot more sense to me if it becomes a standard safety item. The mining industry is going to be huge."
The negotiation heated up when Robert Herjavec made the first move with an offer of $250,000 for 30% equity. O'Leary jumped in with an offer of $250,000 for 15% equity to undercut Herjavec. Lori Greiner offered $300,000 for 20% equity. Herjavec then adjusted his offer to $200,000 for 15% equity plus a $150,000 loan to fund manufacturing. At this point, Cuban floated an offer of $250,000 for 30% equity and unlimited purchase order financing.
The entrepreneurs stepped out to consider their options, and while they were out, the three Sharks, O'Leary, Herjavec, and Greiner, had teamed up to offer $250,000 for 30% equity. "This is always the risk of leaving the Tank," O'Leary said as the duo walked back in.
However, when Doug mentioned that they weren't willing to give up more than 20%, the three Sharks went back to their original offers. After some back-and-forth, Renata and Doug accepted Robert’s final revised offer, and they struck a deal.
However, later Forbes reported that the deal never went through, as after the episode aired, the company was no longer in need of the extra funds. "Also, they offered fewer dollars for the same equity. We came to a mutual decision that the deal wasn’t in our best interest," Doug shared.
