Shark Tank US | Can Aira Secure A Deal With The Sharks?

Summary

Jake Slavik and Eric Goodchild pitch *Era*, the world’s first free-position wireless charger, allowing multiple devices to charge simultaneously from any orientation. Built on Tesla’s technology, their product offers a solution to current wireless charging limitations. The entrepreneurs are moving into production after securing a licensing deal for 33,000 units. Seeking $500,000 for 7% equity, they face offers from investors, with some expressing concerns about competition. After negotiations, they accept $500,000 for 15% equity, forming a partnership to bring their innovative technology to market and revolutionize wireless charging.

Takeaways

• 😀 The entrepreneurs are seeking $500,000 for 7% equity in their company.
• 😀 The product, 'Era', is the world’s first free-position wireless charger, allowing multiple devices to charge from any orientation.
• 😀 The technology behind 'Era' is inspired by Nikola Tesla's wireless power innovations.
• 😀 Unlike traditional wireless chargers with a specific charging spot, Era offers a charging surface where devices can be placed anywhere and still charge.
• 😀 The company is moving from prototype to production, with one sample product shown to investors.
• 😀 They plan to license the core electronics module to other companies, allowing them to brand the product as they wish.
• 😀 The technology could be scaled to charge larger devices like iPads in addition to phones.
• 😀 One licensing partner has already pre-paid royalties for 33,000 units, signaling strong interest in the technology.
• 😀 The company has a burn rate of $30,000 per month, which needs to increase to $50,000 to support its growing engineering team.
• 😀 Investors are cautious about the fast-moving tech space, with some expressing concerns about being leapfrogged by competitors using different approaches.
• 😀 The entrepreneurs ultimately receive an offer of $500,000 for 10% equity, and later a joint offer of 15% equity from two Sharks, which they accept.

Q & A

What is the main product introduced in the transcript?

The product introduced is Era, the world's first free-position wireless charger, which is based on technology invented by Nikola Tesla.

How does Era's technology differ from traditional wireless chargers?

Era allows devices to be placed anywhere on its charging surface and still receive power, unlike traditional chargers that require devices to be precisely aligned with a charging pad.

What makes Era's wireless charging technology unique?

Era's wireless charger is a charging surface that supports multiple devices charging simultaneously from any orientation, not just a single device or a specific alignment.

Who are the founders of the company, and where are they from?

The founders are Jake Slavik from San Diego, California, and Eric Goodchild from Phoenix, Arizona.

What is the primary market strategy for the company?

The company is focusing on a licensing model, where it sells the core electronics module to other companies who can brand and distribute the product under their own name.

What is the current status of the product's development?

The product is moving into the production phase after completing the production prototype. They have already secured a licensing partner.

How much revenue is expected from the first licensing partner's order?

The first licensing partner has pre-paid for 33,000 units, and the company expects to earn between four to ten dollars per unit in royalties.

Why does the company still seek funding despite having secured a licensing deal?

The company needs additional funding to cover a burn rate of $30,000 per month, which will increase to $50,000 per month as they expand their engineering team and move towards market readiness.

What concerns were raised by the investors during the pitch?

One investor raised concerns about the rapid pace of technological change, which could lead to the company being leapfrogged by competitors. Another investor questioned the need for a loan rather than an equity investment.

What are the terms of the investment offers made by the Sharks?

One offer was for $500,000 in exchange for 10% equity, while another was a $500,000 loan at 9% interest with 15% equity in return. The entrepreneurs ultimately accepted a compromise deal of $500,000 for 15% equity.