Shark Tank US | Can Float 'N' Grill's Entrepreneurs Convince Daniel Lubetzky To Invest?

Summary

In this Shark Tank pitch, Mike and Jeremy from Michigan introduce Flo, a floating grill designed for water enthusiasts who want to cook on the go. Seeking $200,000 for 20% equity, they highlight the grill's unique design, safety features, and viral success. Despite low sales of $19,400, they emphasize the product's potential. After negotiations, they secure a deal with Daniel for $100,000 investment, a loan, and 50% of future licensing deals. The pitch focuses on innovation, Sandbar life, and a fun, water-based grilling experience.

Takeaways

• 🌞 Two entrepreneurs, Mike Basati and Jeremy Quilico, from Plymouth, Michigan, are seeking $200,000 for 20% equity in their company.
• 🍔 They introduce the world's first floating grill, designed to be used on water, making grilling possible on lakes, rivers, and sandbars.
• 💡 The Floam Grill is lightweight, safe, and easy to use, with a patented design to ensure it doesn't flip over in the water.
• 🔥 The grill uses a 12,200 BTU burner, which is large enough to cook eight burgers at once, and runs on a 1lb propane tank.
• 📈 Their product went viral in 2018 on social media, but due to a lack of production capability, they couldn’t capitalize on the attention.
• 💸 The Floam Grill retails for $229, with a cost of goods at $168.88, including free shipping.
• 🤔 Despite the viral success, they've only generated $19,400 in sales, which raised concerns from the Sharks about demand and market traction.
• 🏖 Mike and Jeremy argue that the product is popular within the sandbar community, but the Sharks feel the sales don't reflect that.
• 🦈 Daniel offers $200,000 for 50%, emphasizing that his team would work full-time to help grow the business, but the founders decline.
• 🤝 A deal is made with Daniel for $100,000 for 22.5% equity, a $100,000 loan at 7% interest, and 50% of any licensing deals.

Q & A

What is the product being pitched in the script?

The product is a floating grill called Floam Grill, designed for use on water, such as at sandbars or rivers.

How much equity are the founders seeking in exchange for $200,000?

The founders are seeking $200,000 in exchange for 20% equity in their company.

What is the main feature of the Floam Grill?

The Floam Grill is a floating grill designed to be used safely on water with a patented design for weight displacement, preventing it from flipping over.

What is the cost to produce the Floam Grill and its retail price?

The Floam Grill costs $16.88 to produce and retails for $229.

How much in total sales has the Floam Grill generated so far?

The Floam Grill has generated $19,400 in total sales.

What event caused the Floam Grill to go viral?

A video posted on Facebook in 2018 caused the Floam Grill to go viral, reaching 4.7 million people in 72 hours.

What concerns do the Sharks express about the product?

The Sharks express concerns about the low sales numbers, with some suggesting that the sandbar community may not be interested in the product despite its viral success.

What offer does one of the Sharks, Daniel, make to the founders?

Daniel offers $200,000 for 50% equity and a licensing agreement for any deals he helps them secure.

What counteroffer do the founders make to Daniel’s initial proposal?

The founders counter with $100,000 for 22.5% equity and a $100,000 loan at 7% interest, plus 50% of any licensing revenue Daniel helps secure.

What is the final outcome of the pitch?

The founders accept Daniel’s offer of $100,000 for 22.5% equity, a $100,000 loan at 7% interest, and 50% of any licensing revenue.