Could Amber Be The Shortest & WORST Pitch EVER? | Shark Tank US | Shark Tank Global

Summary

In this Shark Tank pitch, recent college graduates Bill Shuan and Kyle Byrd introduce Amber, a free mobile phone charging station with fingerprint scanning for security. They seek $200,000 for a 20% stake, aiming to place Amber in venues like bars and restaurants to enhance customer experience and drive revenue. The sharks express concerns over the fingerprint scanner's reliability, the high cost of production, and the competitive landscape of free charging options. Despite the founders' confidence in their product, the sharks ultimately reject the investment, citing issues with cost, security, and practicality.

Takeaways

• 📱 Bill Shuan and Kyle Byrd are recent college graduates pitching their product, Amber, a mobile phone charging station, on a business investment show.
• 🔓 Amber offers a free and secure charging solution using fingerprint scanning technology to lock and unlock charging compartments.
• 💸 They are seeking an investment of $200,000 for a 20% stake in their company, which is currently pre-revenue.
• 🏢 The founders aim to place Amber in various public venues like bars, restaurants, gyms, and movie theaters to enhance customer experience and keep people around longer.
• 💰 The pricing model for venues includes a one-time purchase of $2,000 or a monthly lease fee of $150.
• 🛠️ The product is still in the prototype phase, with the current cost to manufacture a unit being around $1,000.
• 👎 The sharks express concerns about the reliability of the fingerprint technology at the proposed price point and the overall business model.
• 🍻 There's a discussion about the liability issues of customers giving their phones to bar staff for charging and how Amber could mitigate this.
• 📉 The sharks are skeptical about the cost-effectiveness and the necessity of the product, comparing it to free charging options available in airports.
• 🚫 The sharks ultimately reject the pitch, citing issues with the cost, security, and the existence of free alternatives as their main reasons.

Q & A

What is the name of the company founded by Bill Shuan and Kyle Byrd?

The company founded by Bill Shuan and Kyle Byrd is called Amber.

What is the primary purpose of Amber as described in the script?

The primary purpose of Amber is to provide a mobile phone charging station that is completely free to use in public spaces.

How does the fingerprint scanning feature work in Amber's charging station?

Users secure their device in one of the compartments by scanning their fingerprint, and to retrieve it, they rescan their finger, which unlocks the compartment.

What is the proposed business model for Amber's charging stations in venues?

Amber proposes a business model where venues can either purchase the unit for $2000 outright or lease it for $150 per month.

What is the target demographic for Amber's charging stations according to the pitch?

The target demographic includes bars, restaurants, gyms, movie theaters, arenas, and other venues where people might need to charge their phones.

What concerns were raised by the sharks about the fingerprint scanner's reliability?

The sharks expressed concerns about the fingerprint scanner being finicky and questioned whether a scanner at Amber's proposed price point could be reliable and quick enough for users.

How much investment are Bill Shuan and Kyle Byrd seeking in the pitch?

Bill Shuan and Kyle Byrd are seeking $200,000 in exchange for a 20% stake in Amber.

What was the sharks' reaction to the cost of the Amber unit and the business model?

The sharks were critical of the cost, with some stating it was too high and others suggesting that the product needed to be priced under a hundred dollars to be viable.

What alternative solutions do the sharks suggest to the Amber charging station?

The sharks suggest that the competition is 'free' charging stations, and they question the necessity of Amber's service when people can already charge their phones for free or use personal charging devices.

What issues were identified with the Amber charging station in terms of practical use in public venues?

The sharks identified issues such as the potential for the fingerprint scanner to fail in less-than-ideal conditions (like a wet or grimy festival environment), and the creation of lines and congestion in venues.

What was the final outcome of the pitch in terms of investment from the sharks?

The pitch was unsuccessful, with all the sharks declining to invest, citing concerns over the cost, security, practicality, and the existence of free alternatives.

Outlines

00:00

🔋 Pitch for a Secure Phone Charging Station

Bill Shuan and Kyle Byrd, recent college graduates, introduce Amber, a mobile phone charging station designed for public venues. They seek an investment of $200,000 for a 20% stake in their company. Amber offers a free, secure charging solution that uses fingerprint scanning to lock and unlock phone compartments. The founders believe Amber enhances customer experience and encourages patrons to stay longer at venues. They plan to install Amber in various public spaces like bars, restaurants, and theaters. The charging station is either available for a one-time payment of $2,000 or a monthly lease of $150. Despite the sharks' concerns about the fingerprint scanner's reliability and the product's cost, the founders assert that they have tested the technology extensively and are confident in its functionality.

05:03

🚫 Sharks' Skepticism and Rejection of Amber's Business Model

The sharks express their doubts about the viability of Amber's business model. They argue that the cost of the charging stations is too high compared to the existing free alternatives. They also question the reliability of the fingerprint technology at the proposed price point. Additionally, the sharks highlight the potential for increased congestion and the impracticality of using fingerprint scanners in messy environments like festivals. The sharks are not convinced by the founders' pitch and ultimately decide not to invest, citing concerns about the product's cost, security, and market competitiveness.

Keywords

💡Amber

Amber is the name of the product in the video, a mobile phone charging station. It represents the core concept of the business pitch, aiming to offer a free and secure charging solution for public spaces. In the script, the founders introduce Amber as a solution to the common problem of phone battery drainage, especially in locations like airports, bars, and restaurants.

💡Shark Tank

Shark Tank is a television show where entrepreneurs pitch their business ideas to a panel of investors, known as 'sharks', who may offer them funding in exchange for equity. The script is a transcript from an episode of Shark Tank, where the founders of Amber present their idea to the sharks, seeking investment.

💡Biometric scanning

Biometric scanning refers to the method of identifying individuals based on their unique physiological or behavioral characteristics, such as fingerprints. In the context of the video, Amber uses fingerprint scanning to secure users' phones in the charging compartments, ensuring that only the rightful owner can retrieve their device.

💡Revenue model

The revenue model is the way a company plans to generate income from its business activities. In the script, the founders of Amber discuss their revenue model, which includes selling the charging stations outright or leasing them to venues, with the aim of keeping customers at the venue for longer periods.

💡Public space

Public space in the video refers to areas like airports, bars, and restaurants where Amber's charging stations could be installed. The concept is central to the pitch as it addresses the need for phone charging solutions in places where people often find themselves with depleted batteries.

💡Prototype

A prototype is an early model of a product used to test concepts and feasibility before full-scale production. The founders of Amber mention that they have built prototypes of their charging stations, which they use to demonstrate the functionality and security features to the sharks.

💡Fingerprint scanner

A fingerprint scanner is a device that reads and analyzes the pattern of a person's fingerprint for identification purposes. In the video, the Amber charging station uses a fingerprint scanner to allow users to securely access their charging compartments, which is a key feature of the product.

💡Investment

Investment in this context refers to the financial backing provided by the sharks in exchange for equity in the company. The founders of Amber are seeking an investment of $200,000 for a 20% stake in their company to help them expand and place Amber in more venues across the nation.

💡Lease

Leasing, as mentioned in the script, is one of the options for venues to acquire Amber's charging stations without paying the full purchase price upfront. The founders offer a leasing option as a way to make their product more accessible to potential customers.

💡Security

Security in the video pertains to the safety and protection of users' phones while charging. The Amber charging station is designed with security in mind, using fingerprint scanning to ensure that only the phone's owner can access it, addressing a common concern in public charging scenarios.

💡Venue

A venue in the context of the video refers to the establishments like bars, restaurants, and movie theaters where Amber's charging stations could be installed. The founders pitch their product as a way to enhance customer experience and keep people at the venue longer, which could potentially increase revenue.

Highlights

Amber is a mobile phone charging station that is completely free to use.

Amber secures your device using biometric scanning, specifically fingerprint scanning.

The charging station aims to drive revenue for venues by keeping customers around longer.

Amber can be placed in various venues like bars, restaurants, gyms, and movie theaters.

The charging station is either available for purchase at $2000 or can be leased for $150 per month.

The founders have tested the fingerprint scanner extensively.

The cost to make a single unit of Amber is approximately $1000.

The founders have invested around $11,000 in the development of Amber.

The sharks express concerns about the fingerprint scanner's reliability in a public setting.

The sharks question the business model, comparing it to free charging stations in airports.

The founders mention interest from festivals and large-scale venues for a larger version of Amber.

The sharks argue that creating a charging station could lead to unnecessary lines and congestion.

The sharks criticize the security and cost of the product, with some stating they are out.

The sharks highlight the competition, stating that 'free' is Amber's biggest competitor.

Despite the sharks' negative feedback, the founders remain confident in their product and its potential.

Transcripts

[Music]

next up are recent College grads who

believe they have a better way to stay

recharged

[Music]

sharks my name is Bill Shuan the

co-founder and CEO of Amber and my name

is Kyle Byrd I'm head of products and a

co-founder at Amber sharks today we are

raising 200 000 in exchange for 20 stake

within Amber sharks how many times

you've been at an airport and had your

phone tragically Die In Your Arms you

know our paying all too well the fact is

we didn't want to walk around with

charters in our pockets or give our

phones to bartenders to charge our

phones in a public space we saw a

problem and we came up with a solution

sharks Amber is a mobile phone charging

station that is completely free to use

we secure your device in one of our

seven compartments using biometric

scanning namely fingerprint scanning we

made it super super simple let's show

you how it works

simply walk up scan their fingerprint

choose one of the available compartments

and whenever they're done they simply

rescan their finger and one of the doors

will unlock

we realized that Amber wasn't just a

free secure way for people to charge

their phones in a public space but could

also Drive revenue for venues by keeping

people around longer and heightening the

overall customer experience we want to

put Amber in bars restaurants gyms movie

theaters Arenas really anywhere the list

goes on and on sharks by securing an

investment today we can make our first

big push into seeing Amber and venue

Across the Nation who wants a secure

deal with Amber

what's up is the product shipping

so we are pre-revenue I love that word

pre-revenue we just graduated a few

weeks ago from college where'd you go to

school James Madison University in

Virginia Bill walk me through the

premise you walk into a bar sure I'm a

bar owner how much are you going to

charge me so we will either charge you

two thousand dollars outright for the

unit or you can lease it either on a six

nine I buy for two thousand that's it or

you can get it right on your wall for

150 right there and it's it's a monthly

150. it's a convenience for the bar but

it's not something they have to have

well so actually right now people are

charging their phones in bars right

they're giving the bartenders to

waitresses and waiters that's a

liability it's like hey can I get my

phone will that waiter waitress may have

left got enough work and now they have a

lost phone guys you said a door locks I

didn't see the door lock so the locks in

here is what we're using for testing

we're actually currently sourcing our

locks through Master Lock okay so there

will be a door on there yeah yes Bill

have you tested the fingerprint scanner

we have we test it all in the back end

because I'm in the cyber security space

and here's what I know about fingerprint

scanners they can be very finicky very

except for the very very high-end ones

with all due respect to you the idea of

you walking up once putting your finger

in there and it recognizing you and the

door coming down is ludicrous we have a

big security Center the fingerprint

scanner that we pay for people to get

into that Center was well well over

fifty thousand there's no way for that

price point you're gonna buy fingerprint

scanner that's right that quickly so

here's how it's going to work someone's

going to come up they're going to go

once they're going to go twice they're

gonna go three times and then they're

gonna pull it off the wall yeah and this

is before they've had something to drink

tell us how much you've invested right

because you've got to build prototypes

so on our College budgets uh we are

sitting um I think we're right around

eleven thousand dollars

what does it cost you to make a unit

right now we can make the unit for a

thousand dollars with a thousand dollars

this is going to end so badly

that is such a bad business what are you

you're saying you're saying the cost of

it two thousand dollars right oh it's a

it's 150 a month or two thousand dollars

outright

why would a bar pay you 2 000 when you

go to the airports those guys who have

the big charges they issue it for free

because they want to do their

advertising why wouldn't a bar put one

of those free devices behind the bar I

mean why does anybody really need this I

think there's so many personal charging

devices and actually I'm in the space

right now we're creating something that

is light years ahead of this

I'm out

the cost is horrible guys I mean you've

got to get this down under a hundred

dollars and that's exactly what we're

trying to do um

right and I feel bad because you put in

a lot of Blood Sweat and Tears wait wait

no sweat and tears just blood in the

water blood we've actually had a lot of

interest from festivals um and say

larger scale venues conventions so we

actually we developed the products like

putting it on a stand

um and having say 14 units whenever you

have a lot of people one of the things

you don't want to do is create a reason

for them to congregate in one spot

waiting for something all you're doing

is creating more lines and then the

finger scanner something was wet someone

was grimy you're at a festival it's not

going to be a clean environment this is

definitely not for me I'm out there's

only one answer to this I have to hire

you both so I can fire them

this is so horrible how do you think

this has any chance of surviving and

working

I hate this so much it's incredible it's

one of the worst ideas I've ever seen

I'm out

I have absolutely no interest in this

business I'm out

so we do have competition there are a

few yeah there's a lot of competitors

right your biggest competitor is free

you've come out with an incredibly

elegant solution

true free

look

I'm at

good thank you guys very much for your

time

[Music]

horrible

put your glass there and fill it up

the cost was an issue the security was

an issue I know it works we've tested it

a million times I mean I would probably

go rail Hershey back in the tease I mean

that's not that's right you should want

to be to be honest I'm being honest

um

[Music]

before you go don't forget to subscribe

to the Shark Tank Youtube channel and

ring the notification Bell to keep up

with everything that's bubbling in the

tank