'Shark Tank' contestant makes all judges fight then convinces them to team up for $1.5 million deal
It's very rare for "Shark Tank" entrepreneurs to get deals from all sharks, but some manage to pull off that miracle. Among them were JD Claridge and Charles Manning, the founders of xCraft, an innovative drone company. The duo pitched their flying of their drone, X PlusOne, in the Tank and left everyone in awe. While the Sharks initially fought each other to make a deal for themselves, in the end, they all came together to make a $1.5 million investment.
In the episode, Claridge and Manning entered the Tank seeking $500,000 for 20% equity. During their pitch, they came in with their super-fast drone and made a smooth landing. They pitched their product as a revolution in the drone industry, as it combined traditional hovering capabilities with high-speed flight. They explained that this allowed their drone to cover greater distances and switch between modes mid-flight. They shared that they needed the investment to reduce production costs and develop their next innovation, the PhoneDrone Ethos, a cheaper, collapsible drone for the mass market.
After the presentation, the sharks immediately asked questions about X PlusOne’s flight range, control features, and the legality of using pre-programmed flight paths. The entrepreneurs answered all the questions and clarified that drone operating below 400 feet and within sight was completely legal. Sharing the numbers, they told the Sharks that each drone sold for $1,899 retail, but only cost around $400 to manufacture.
With a solid core product, pending patents, and a willingness to license their technology, the entrepreneurs soon became shark favorites. Kevin O'Leary made the first move, offering $750,000 for a 25% stake, raising the company's valuation instantly, in a rare move. Before the co-founders could respond, Daymond John raised the stakes further by offering $1 million for the same equity.
Then came Robert Herjavec and Lori Greiner, who made even more generous offers, putting up $1 million for just 20% equity. With this, the company's valuation doubled to $5 million. With the bidding war raging, Herjavec asked the entrepreneurs to step out and discuss their options. Claridge and Manning then came back with a bold offer, asking all five Sharks to invest at a $10 million valuation. However, the Sharks declined the offer, calling them 'greedy.'
Nevertheless, four out of the five Sharks were ready to make a deal at the $6 million valuation. The only Shark left to get was Mark Cuban, who fired some quick questions. Satisfied with the answers, all five sharks agreed to make the historic deal, offering $1.5 million collectively for 5% equity each.
As it turns out, despite the great pitch and impressive negotiations, the deal with all five Sharks did not go ahead for xCraft, according to Looper. As per the publication, the failed deal did not impact the growth of the company as xCraft went on to expand its product offerings. As per Shark Tank Blog, the company had annual sales worth $6 million, and its website is still active with multiple products on sale for customers.
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