Can FinalStraw Land A Deal With The Sharks? | Shark Tank US | Shark Tank Global

Summary

In this episode of Shark Tank, Emma and Miles present Final Straw, a revolutionary reusable and collapsible straw, to the sharks. They highlight the environmental impact of single-use plastic straws, sharing statistics and a powerful visual of plastic waste. With impressive early sales and a successful Kickstarter campaign, they seek $625,000 for 5% equity. However, while some sharks are impressed by the product’s mission, concerns over competition, pricing, and scalability lead to mixed reactions. After negotiations, they receive an offer with 25% equity but ultimately leave without a deal. The pitch showcases both the potential and challenges of disrupting the plastic straw industry.

Takeaways

• 😀 The pitch is about addressing the environmental issue of plastic straws polluting the oceans.
• 😀 The product being pitched is Final Straw, the world's first reusable and collapsible straw.
• 😀 The founders are Emma and Miles, who have a background in environmental sustainability and waste minimization.
• 😀 The product folds up into a small case that can fit in a pocket or on a keychain, making it highly portable.
• 😀 The solution targets the growing anti-plastic movement, as single-use straws are being banned globally.
• 😀 They raised $1.89 million on Kickstarter in just 30 days and made $115,000 in pre-sales on their website.
• 😀 The main challenge is the high cost of the straw ($20 each), which may deter widespread adoption.
• 😀 Competitors like paper straws are seen as an ineffective solution, as they still create waste and are prone to sogginess in hot drinks.
• 😀 The Sharks were skeptical about the product's ability to scale due to its high cost and limited market potential.
• 😀 Kevin O'Leary offers $625,000 for 10% equity and a royalty of $2 per straw sold until the investment is recouped.
• 😀 Mark Cuban ultimately offers $625,000 for 25% of the company due to concerns about the business side and finances.
• 😀 The founders reject Mark's offer, instead proposing $625,000 for 12.5% equity, but Mark declines.

Q & A

What is the main environmental problem addressed in the pitch?

The main environmental problem addressed in the pitch is the widespread pollution caused by plastic straws, which are a significant contributor to littering on beaches and in oceans, harming marine life.

How do the founders of the company, Emma and Miles, propose to solve the problem?

Emma and Miles propose a reusable, collapsible straw called Final Straw, which can be folded up and stored in a small, portable case. This is meant to reduce single-use plastic straw consumption.

How much of the company are Emma and Miles offering for $625,000?

Emma and Miles are offering 5% of their company for $625,000.

What is the significance of the 500 million straws mentioned in the pitch?

The 500 million straws used every day in the US is a staggering figure that highlights the scale of plastic straw consumption and its environmental impact.

What are some of the straws' design options presented to the sharks?

The founders present several design options for the reusable straws, including colors like Healy Coral, Shark Butt Gray, Arctic Melt Blue, and Succulent Green.

What does the founder Emma’s educational background include?

Emma has a master's degree in Environmental Management and Sustainability from Harvard and has worked at Los Alamos National Laboratory in waste minimization.

How much does it cost to make each Final Straw and how much is it sold for?

It costs $5 to make each Final Straw, and it is sold for $20.

What was the outcome of the Kickstarter campaign for Final Straw?

The Kickstarter campaign for Final Straw raised $1.89 million over 30 days, showing strong initial interest and support for the product.

Why do some sharks express concerns about the price of the Final Straw?

Some sharks express concerns because the price of $20 for a reusable straw is high, and they worry about whether the product will be adopted widely by consumers, especially in a market where many people are focused on affordability.

What offer does Kevin make to the founders, and what is his rationale?

Kevin offers $625,000 for 10% of the company, along with a royalty of $2 per straw until he recoups $1.8 million, arguing that the founders can afford this structure based on their sales.