'Shark Tank' contestant gets a life-changing deal for toy pitched as 'Lego's next big competitor'
"Shark Tank" investors are known for spotting the potential in innovative products and ambitious ventures to support them towards success. Vladislav Smolyanskyy, the founder of "Pinblock," pitched his revolutionary idea to beat a major player in the toy industry with a simple ask of $100,000. While the sharks were impressed with the idea and his story, only Kevin O'Leary made an offer to the entrepreneur, and that left a bad taste in his mouth.
Smolyanskyy pitched his revolutionary toy to the Sharks with an ask of $100,000 for 20% equity in his company. He explained how the unique single-shape design of the toy lets users create anything that they can imagine, with more flexibility than the traditional building block sets on the market. He demonstrated that Pinblock uses a flexible pin-and-hole system that allows for movement and creative play, making it stand out. He even had O'Leary's face constructed in one of the samples. "I created Pinblock, which requires no manual and every single piece is exactly the same. The long run pins on top of each block allow your models to band and even the fold," he explained.
Smolyanskyy further shared that his family hails from Kyiv, and they made a long and hard journey to come to the U.S. and get a foothold. He shared that his business operates mainly through e-commerce, selling directly to customers. Smolyanskyy came up with the idea along with a childhood friend in 2014 and successfully raised $18,573 on Kickstarter in 2015. He noted that he owned 85% of the company, with 15% belonging to a former partner.
When O'Leary asked if he had made any deals with the big manufacturers, Smolyanskyy revealed that he was yet to get any big names on board. With this, O'Leary made the first offer, bragging about his connections with the top toy manufacturers. He offered $100,000 but for 30% equity, proposing to license the toy. "I have no interest in investing in this unless I can put it into a very large toy manufacturer that provides marketing and distribution globally," O'Leary said.
Smolyanskyy hesitated to accept the deal, saying the vision did not align with his strategy for the company. However, unfortunately for the entrepreneur, no other Shark was willing to make an offer. Barbara Corcoran became the first Shark to drop out, saying it wasn't the right investment for her. Mark Cuban also followed suit as he felt the toy industry was faced with too many challenges. With this, Robert Hervajec and Lori Greiner dropped out as well, wishing Smolyanskyy good luck.
After all the other Sharks dropped out, O'Leary sensed an opportunity and modified his offer. He upped his equity demand to 50%, saying that he would give Smolyanskyy the right to negotiate licensing deals. "I'll bring it to the toy industry because they all return my calls. I'll bring deals to you and if you want to turn them down that's fine but if you want to accept one of them we're 50-50," O'Leary said.
After considering the offer, Smolyanskyy hesitantly accepted the deal. While he thought he was giving up too much, Cuban told him that he did the right thing. "The moral is, Kevin thought he was making a better deal, but you won, as you can set the bar as high as you want. Congratulations," Cuban said.
However, things didn't go well for Smolyanskyy after the episode aired. In an interview with Forbes, the entrepreneur shared that the deal with O'Leary never closed as the Shark backed out after four months. "I went in with a lot of trust in the show, sometimes forgetting that the show is a show," Smolyanskyy told the publication. Today, the company is mostly dormant, but the Piblocks are still up for sale on its website.
