The Sharks Are SHOCKED At Blueland's Asking Share | Shark Tank US | Shark Tank Global

Summary

Blueland, an eco-friendly cleaning product company, pitches to investors seeking $270,000 for 2% equity. The founders, Sarah and Sayet, introduce their revolutionary cleaning tablets that reduce plastic waste by using reusable bottles. They offer a range of products, including hand soap and multi-surface cleaners, all priced affordably. After impressive sales and previous funding, they negotiate with investors, including Kevin O'Leary and Mark Cuban. Ultimately, they secure a deal with O'Leary, who offers $270,000 for 3% equity and a royalty until he recoups his investment, ensuring both financial backing and valuable commercial terms.

Takeaways

• 😀 BlueLand offers an eco-friendly solution to reduce plastic waste by providing cleaning tablets that work with reusable bottles.
• 😀 The founders are seeking $270,000 for 2% equity of the company to expand their innovative cleaning product line.
• 😀 Each cleaning tablet costs $2, which is cheaper than purchasing a new plastic cleaning bottle each time.
• 😀 The company aims to eliminate 5 billion plastic cleaning bottles annually, helping protect the environment.
• 😀 The product line includes a foaming hand soap and three cleaning sprays: multi-surface cleaner, bathroom cleaner, and glass/mirror cleaner.
• 😀 The starter kit, which includes one bottle and one tablet, is priced at $12, while the Essentials kit (hand soap and three sprays) costs $39.
• 😀 The founders have a background in economics, business, and chemistry, with prior entrepreneurial experience and success.
• 😀 They have raised $3 million at a $13.5 million valuation and have achieved $200,000 in sales in just over a month of being live.
• 😀 The sharks were concerned about the product's ability to differentiate in a competitive market and suggested improvements in packaging and product presentation.
• 😀 After a negotiation process, Kevin O'Leary agreed to invest $270,000 for 3% equity and a royalty agreement of 50 cents per kit until he recoups his money.

Q & A

What is Blue Land's primary product offering?

Blue Land offers eco-friendly cleaning products, including a foaming hand soap and three cleaning sprays: a multi-surface cleaner, a bathroom cleaner, and a glass and mirror cleaner. These products come with reusable bottles and tablets that dissolve in water to create the cleaning solution.

What problem does Blue Land aim to solve?

Blue Land aims to eliminate plastic waste by offering cleaning products in tablet form, which reduces the need for single-use plastic bottles. Their products are designed to help consumers save money, space, and reduce environmental impact by avoiding plastic packaging.

How does the Blue Land cleaning system work?

Consumers fill a reusable bottle with water, drop in a cleaning tablet, and within minutes, they have a cleaning solution ready to use. The system allows for the reuse of the bottle while only needing to purchase refills in tablet form.

What is the price of Blue Land's starter set and refill tablets?

The starter set, which includes one bottle and one tablet, costs $12. Refills are priced at $2 per tablet, which is cheaper than buying a new plastic cleaning bottle.

How much funding has Blue Land raised and at what valuation?

Blue Land has raised $3 million at a $13.5 million valuation.

What makes Blue Land's products different from competitors in the cleaning industry?

Blue Land differentiates itself by using EPA-approved third-party studies to prove that their products are more effective than leading competitors. The company focuses on providing high-quality, non-toxic cleaning products formulated by experts in chemistry.

How long has Blue Land been selling its products?

Blue Land has been selling its products for just over a month, during which they have achieved $200,000 in sales.

What is Blue Land's business model for distribution?

Currently, Blue Land operates on a direct-to-consumer model, selling its products online. However, they plan to launch in a national retailer in the beginning of the next year.

What offer did Mr. Wonderful propose during the pitch?

Mr. Wonderful proposed an investment of $270,000 for 5% equity in Blue Land, with an additional 1% advisory shares, after expressing his belief that the founders would benefit from his business expertise.

What was the final deal agreed upon between Blue Land and Kevin O'Leary?

Blue Land and Kevin O'Leary agreed on a deal of $270,000 for 3% equity in the company, along with a royalty of $0.50 per kit until he recoups his investment.