Shark Tank US | Tenikle Entrepreneur Only Has $39 In The Bank!

Summary

In a gripping episode of Shark Tank, Hans Dose from Dana Point, California, pitches his innovative product, Tentacle, a versatile suction mount inspired by the octopus. Seeking $200,000 in exchange for 10% equity in his company, Hans impresses the sharks with his product's utility and waterproof design. Despite facing challenges such as a crowded market and significant debt, Hans' honesty and passion for his invention shine through. After a tense negotiation, he secures a deal with one of the sharks, who offers to pay off his $270,000 debt and invest an additional $100,000 for a 60% stake, with the condition of bringing in experienced partners. The deal is a testament to Hans' resilience and the potential of his product in a competitive market.

Takeaways

• 💡 The entrepreneur, Hans Dose, is seeking $200,000 in exchange for 10% equity in his company, Tentacle.
• 🐙 Inspired by the octopus's ability to multitask with its many tentacles, Hans created a versatile suction mount for various tech devices to free up human hands.
• 💰 The product is sold for $45, with a manufacturing cost of $6.8, allowing for a significant profit margin.
• 📈 Hans has successfully sold over 40,000 units, generating $3 million in sales, and holds a patent for his invention since 2015.
• 🚀 The initial success was boosted by a Kickstarter campaign that raised approximately $172,000, prompting Hans to leave his job to focus on the business.
• 📉 Despite initial success, Hans faced challenges with product reviews on Amazon and a significant investment in inventory that did not sell as expected.
• 💸 Hans has a debt of $270,000 and is currently left with only $39 in his bank account, highlighting the financial risk he has taken.
• 🏠 In an effort to manage debt, Hans and his wife moved into an RV on his mother's property in Menifee, California.
• 🤝 The sharks appreciate the product but express concerns about the crowded market and Hans's financial situation.
• 💼 Offers are made with various terms, including a complete debt pay-off and equity stakes, reflecting the sharks' belief in the product's potential.
• ✅ The final deal is struck for $200,000 for a 30% equity stake, providing Hans with the capital he needs to continue growing his business.

Q & A

What is the name of the entrepreneur presenting the product?

Hans Dose

What is the product called and what is its inspiration?

The product is called 'Tentacle', and it is inspired by the octopus and its many tentacles.

What is the main problem Hans Dose is trying to solve with his product?

The main problem is the difficulty humans face when trying to hold phones while doing something else with their two hands.

What are some of the functionalities of the Tentacle product?

Tentacle can be used as a car mount, bike mount, speaker mount, and even a pickle holder. It is waterproof and durable, supporting weights up to a surfboard.

How much does Hans Dose want to raise for his company?

Hans Dose is seeking two hundred thousand dollars.

What percentage of the company does Hans Dose offer in exchange for the investment?

Hans Dose offers 10% of his company in exchange for the investment.

How much revenue did Hans Dose make in the last year?

Last year, Hans Dose made about 478,000 dollars in sales.

What was the cost of producing the Tentacle product?

The cost to produce each Tentacle product is six dollars and eight cents.

What was Hans Dose's financial situation before appearing on the show?

Hans Dose had 39 dollars in the bank and was in debt for 270,000 dollars.

What was the initial reaction of the sharks towards the Tentacle product?

The initial reaction was positive, with comments on the product's good design and the entrepreneur's passion.

What was the final deal offered to Hans Dose?

The final deal was 200,000 dollars for a 30% equity stake in the company.

What was the reason behind the sharks' hesitation to invest?

The hesitation was due to the high risk involved, the crowded market space, and Hans Dose's vulnerability with very low cash on hand.