The Sharks Are Humbled and Energized With Neuro | Shark Tank US | Shark Tank Global

Summary

In this Shark Tank pitch, Kent and Ryan, founders of Nuro, present their innovative product line: NeuroGum and NeuroMints. Designed for fast-acting energy, focus, and clarity, these products combine natural caffeine, L-theanine, and vitamins. With a patented cold-compressed method, they provide an energy boost without the hassle of drinks or sugar. Despite their growing success in retail, including CVS and partnerships with major airlines, the Sharks have concerns about the valuation and risks of scaling too quickly. In the end, the duo faces tough negotiations, with Kevin O'Leary making a bold offer, but ultimately walking away empty-handed.

Takeaways

• 😀 Kent and Ryan, founders of Neuro, are seeking $750,000 for 5% equity in their company.
• 😀 Neuro offers gum and mints that provide clean, balanced energy with natural caffeine, L-theanine, and B6 and B12 vitamins.
• 😀 Each piece of Neuro gum or mint contains as much caffeine as half a cup of coffee, with faster absorption compared to drinks or supplements.
• 😀 The product is vegan, GMO-free, and contains no added sugar.
• 😀 Neuro has gained traction in retail, with their products available in 5,500 locations, including CVS, where they are the number two bestselling item in memory and focus.
• 😀 Last year, Neuro's revenue was $1.5 million, and they project $3.5 million in sales for the current year.
• 😀 The company plans to expand further with distribution deals with major airlines like Delta and JetBlue, aiming for $10 million in sales next year.
• 😀 Kent and Ryan's journey started from their personal struggles with maintaining energy during intense training, which led them to create a more convenient energy solution.
• 😀 Mark Cuban and other Sharks express concern about the scalability of the business, especially considering the risks of sampling and marketing claims.
• 😀 Kevin O'Leary offers a deal of $750,000 for 5% equity and 50 cents in royalties per unit until he recoups $1 million, but the founders do not accept his offer, citing concerns over their valuation.

Q & A

What is the main product of Neuro Gum and Neuro Mints?

Neuro Gum and Neuro Mints are products designed to provide quick, clean, and balanced energy. They contain natural caffeine, L-theanine, and B vitamins and are absorbed faster than energy drinks or supplements.

What makes Neuro Gum and Neuro Mints unique compared to other energy products?

Neuro products use a patented cold-compressed method to blend caffeine with L-theanine and B vitamins in each piece. This allows for faster absorption through the mouth, offering quicker energy compared to drinks or pills. Additionally, the products are vegan, GMO-free, and affordable.

How much caffeine is in each piece of Neuro Gum or Mint?

Each piece contains as much caffeine as half a cup of coffee.

How do the founders of Neuro Gum describe their backgrounds?

Kent studied neuroscience and trained with the Japanese Olympic judo team, while Ryan studied chemistry, was a captain of the cross-country team, and has completed 12 marathons. He is also an artist who has created over 40 murals globally.

What were the key reasons for starting Neuro Gum?

The founders wanted a clean, balanced source of energy that could be easily consumed on the go. They felt traditional energy drinks were inconvenient and not ideal for their active lifestyles.

What is the target market for Neuro Gum and Neuro Mints?

The target market includes individuals who need a quick energy boost, such as athletes, students, professionals, or anyone who wants to enhance focus and energy without the inconvenience of coffee or energy drinks.

How did the company perform in terms of sales in recent years?

Neuro Gum achieved $1.5 million in sales last year, with projections of $3.5 million this year. They have expanded into retail, including 5,500 stores like CVS, and are also growing their online presence.

What retail locations are Neuro Gum products sold in?

Neuro Gum is sold in over 5,000 retail locations, including major pharmacy chains like CVS, where it is the #2 bestselling product in memory and focus.

What are the founders’ plans for growing Neuro Gum?

The founders plan to invest in retail marketing, sampling, and events to promote the brand. They are also expanding their distribution through partnerships with large airlines, such as Delta and JetBlue.

What were the key reasons the Sharks did or did not invest in Neuro Gum?

The Sharks had various concerns. Some, like Daniel and Mark, felt disconnected from the category or worried about scaling risks, especially with product claims and sampling. Robert made an offer based on royalties, but the founders rejected it due to valuation disagreements. Kevin also made an offer, but the founders chose not to accept the terms.