Shark Tank US | All Five Sharks Fight For Deal With TheMagic5

Summary

Two entrepreneurs from Denmark, Rasmus and Bo, pitch their custom-fitted swimming goggles company, The Magic 5, to the Shark Tank investors. Their app-based scanning technology creates personalized goggles that ensure a perfect fit, eliminating leaks and discomfort. With $3 million in lifetime revenue and a $500,000 investment request for 5% equity, they discuss manufacturing in the US and leveraging robotics for customization. The pitch sparks multiple offers from the Sharks, with Robert Herjavec ultimately winning by offering $1 million for 6% equity to help scale their business to new heights.

Takeaways

• 👓 Magic 5 is introducing the world's first custom-fitted swimming goggles, addressing the discomfort and leakage issues of standard one-size-fits-all goggles.
• 📱 The goggles are fitted using an app-based scanning technology that takes only 13 seconds to scan a user's face, ensuring a perfect fit with no leakage or marks.
• 💰 The founders are seeking $500,000 for 25% equity in their company to help bring custom-fitted goggles to a wider market.
• 🏊‍♂️ Magic 5 has already sold to 40,000 customers and generated $3 million in revenue since launching in 2018, growing three times every year.
• 🌍 The global swimming goggle market in the US and Europe is valued at $2.2 billion, presenting a significant opportunity for growth.
• 🛠 The goggles are manufactured using advanced robotics, with parts sourced from China and customized in Charlotte, North Carolina.
• 📊 The company's customer acquisition cost is $24, and the production cost per pair of goggles is $14, with a selling price of $55.
• 🦈 Multiple Shark Tank investors showed interest, with offers focusing on a mix of equity, venture debt, and royalties, including a final accepted offer of $1 million for 6% equity.
• 🌟 The founders are both triathletes, and their personal experiences with poorly fitting goggles motivated the creation of Magic 5.
• 🤝 Robert Herjavec's offer was ultimately accepted due to his ability to help scale the business and his enthusiasm for the product.

Q & A

What problem are Rasmus and Bo addressing with their product?

Rasmus and Bo are addressing the problem of ill-fitting and uncomfortable swimming goggles, which leak and leave marks on the face. Traditional goggles are one-size-fits-all, which doesn’t accommodate the variety of face shapes.

What is unique about the swimming goggles they have created?

The uniqueness of their swimming goggles lies in their custom-fit design. The goggles are made to fit individual faces using app-based scanning technology, ensuring no leakage and a comfortable fit without marks.

How long does it take to scan a person’s face for the custom goggles?

It takes only 13 seconds to scan a person’s face using their app-based technology.

How many customers have purchased their custom swimming goggles so far?

They have 40,000 customers to date, with a lifetime revenue of $3 million.

What is the price point of the custom swimming goggles, and why did they choose this price?

The goggles are priced at $55. They chose this price to be in the middle of the high-end goggle market, ensuring price wouldn’t be a barrier for customers.

What are their manufacturing costs, and what is the customer acquisition cost?

The manufacturing cost is $14 per goggle, and the customer acquisition cost is $24.

What patent protection do they have for their product?

They have a utility patent on their fitting algorithm, which is the core technology behind the custom fit of their goggles.

Why did Rasmus and Bo move to the U.S. market?

They moved to the U.S. because the market for swimming goggles is better in the U.S. compared to Europe, with a slightly higher number of swimmers.

What was the offer they eventually accepted from the Sharks?

They accepted an offer of $1 million for 6% equity from Robert Herjavec.

What was the final comment from Rasmus and Bo about Robert Herjavec?

Rasmus and Bo mentioned that Robert Herjavec was their favorite investor going into the show, and they believe he can help take their goggle business to the next level.