Larq Has The Highest Valuation Ever On Shark Tank! | Shark Tank US | Shark Tank Global

Summary

In the transcript, entrepreneur Justin Wayne pitches his self-cleaning water bottle, the Lark, for $500,000 in exchange for 1% equity on a Shark Tank-like show. The bottle uses UVC LED technology to purify water in 60 seconds, addressing the issue of bacteria in reusable bottles. Despite skepticism from some 'sharks' and a valuation of $50 million, Wayne secures offers and negotiates for better terms, emphasizing his product's innovation and market potential in a $300 billion industry.

Takeaways

• 💧 Lark is a water purification company offering the first self-cleaning water bottle using UVC LED technology to kill 99.99% of harmful bacteria, viruses, and mold.
• 💰 Founder Justin is asking for $500,000 for 1% equity, valuing the company at $50 million, the highest valuation requested in Shark Tank history.
• 📊 The reusable water bottle market is part of a $300 billion industry, though only 7% of it is reusable bottles, a market that’s growing.
• 🔬 Lark’s technology reflects UV light inside the bottle to purify water in 60 seconds or 3 minutes in 'adventure mode' for higher contamination areas.
• 📈 Lark launched in 2018, achieving over $9 million in sales in the last 12 months and projected $14 million in sales this year.
• 📉 Despite growth, the company expects a $1 million loss this year due to recent investment in scaling.
• ⚖️ Justin has raised $6.7 million in venture capital at a $31.7 million valuation and still has $6.5 million in the bank.
• 🏷️ The Lark bottle retails for $95, with a manufacturing cost of around $40, leaving a significant margin.
• 🚰 Lark also developed a water pitcher that uses both filtration and UVC light for home water purification, with no direct competition in this segment.
• 🌍 Lark donates 1% of its gross revenue to charity, partnering with 1% for the Planet and Charity Water to support clean water initiatives globally.

Q & A

What is the main problem that the Lark bottle aims to solve?

The Lark bottle aims to address the issue of bacteria buildup and bad odors in reusable water bottles by using self-cleaning technology, making it a more hygienic option for users.

How does the Lark bottle clean itself?

The Lark bottle uses UVC LED technology to purify water and clean the bottle. By pressing a button, the UV light is activated, eradicating 99.99% of harmful bacteria, viruses, and mold within 60 seconds.

What is the market size for reusable water bottles, and how does it compare to the overall water industry?

The overall water industry is valued at $300 billion globally, while the reusable water bottle market accounts for only 7% of that, but it is growing.

What are the two modes available on the Lark bottle, and how do they differ?

The Lark bottle has two modes: the normal mode, which purifies the water in 60 seconds, and the adventure mode, which lasts 3 minutes and is designed for more uncertain water sources, such as when camping or in developing countries.

How does the self-cleaning technology of the Lark bottle compare to boiling water?

According to the founder, using the Lark bottle’s UV technology is equivalent to boiling water for 20 minutes in terms of safety.

How much did Lark raise in their first round of venture capital, and at what valuation?

Lark raised $6.7 million in their first venture capital round at a valuation of $31.7 million.

What is the retail price of the Lark bottle, and how much does it cost to manufacture?

The retail price of the Lark bottle is $95, and the manufacturing cost is around $40.

What other products does Lark offer, aside from the self-cleaning water bottle?

Lark also offers a water pitcher that uses a two-step purification process: one to capture contaminants and another to purify the water, preventing the growth of germs inside the pitcher.

What charitable initiatives is Lark involved in?

Lark donates 1% of its gross revenue to charitable causes, specifically partnering with '1% for the Planet' and 'Charity Water' to build wells in Africa and provide clean water.

What was the final deal that Lark accepted on Shark Tank?

Lark accepted an offer from Kevin and Lori for $1 million for 4% equity, divided equally between the two sharks. They negotiated to avoid advisory shares and agreed to 2% equity for each shark upfront.