TekDry's Entrepreneurs SHOCK The Sharks | Shark Tank US | Shark Tank Global

Summary

In this pitch, Adam Cookson and Craig Bicki from Techry present their innovative device that can restore water-damaged electronics like phones, tablets, and laptops. Seeking $500,000 for a 5% stake in the company, they explain how their machine uses science to turn liquid into gas, effectively drying out devices without the need for disassembly. Despite an impressive expansion into 82 stores and a projected $650,000 in sales, investors are skeptical, questioning the company's valuation and long-term viability. Ultimately, Mr. Wonderful offers a $500,000 loan with equity, which the founders accept, securing their future growth.

Takeaways

• 😀 The entrepreneurs, Adam Cookson and Craig Bicki, are seeking $500,000 in exchange for 5% equity in their company, Techry.
• 😀 The main product they offer is a machine designed to revive water-damaged electronic devices such as phones, tablets, laptops, and watches.
• 😀 Their machine works by turning liquid into gas, drying out devices without needing to disassemble them, and restoring them within 30 minutes.
• 😀 The process involves placing a device inside a chamber with metallic beads that provide gentle heat, removing air, and turning the liquid inside the device into gas.
• 😀 Techry has a service model in which retailers pay an $80 monthly rent for the machine, in addition to a 16% revenue share from the charges for device restoration.
• 😀 Despite only earning $29,000 in sales with a few stores last year, Techry has expanded to 82 stores and expects $650,000 in sales this year.
• 😀 The company raised $2.2 million in funding with a valuation cap of $4.8 million, but some sharks question its $10 million valuation, suggesting it is too high given the current performance.
• 😀 Techry’s founders believe that their team and business model will lead them to success, although investors raise concerns about the market potential and competition from water-resistant phones.
• 😀 One of the sharks, Mr. Wonderful, offers a loan of $500,000 at 13% interest, along with a 5% equity warrant in the company, instead of a traditional equity investment.
• 😀 The entrepreneurs accept the loan offer from Mr. Wonderful, with the understanding that it must be repaid within 36 months.

Q & A

What is the primary product Techry offers?

Techry offers a machine that restores water-damaged electronic devices, such as phones, tablets, laptops, and watches, by turning liquid into gas and drying them within 30 minutes.

How much equity is Techry offering in exchange for the $500,000 investment?

Techry is offering 5% equity in the company in exchange for a $500,000 investment.

What is the main reason customers lose their phones to water damage according to the pitch?

The main reason customers lose their phones to water damage is due to the design of toilets, swimming pools, and washing machines, which are responsible for 22 million phone losses each year in the US.

What makes the restoration process in Techry's machine effective?

The restoration process involves removing air from the chamber, using metallic beads to apply gentle heat, and turning the liquid inside the device into gas, which dries the phone without needing to disassemble it.

What is the cost to the customer for using Techry's service?

The customer is charged $69 for each device repair, which Techry performs in retail stores or via a mail-in service.

How many retail stores is Techry currently in, and what are their future plans?

Techry is currently in 82 retail stores and plans to expand to 600 stores based on the success of the initial stores.

How much did Techry generate in sales last year, and what is the projection for this year?

Techry generated $29,000 in sales last year with a few stores, and with the expansion, they are on track to hit $650,000 in sales this year.

What was the initial cost to produce one of Techry's machines, and how has that changed?

Initially, each machine cost over $8,000 to produce, but the cost has now reduced to less than $3,000 due to economies of scale.

What is Techry's business model for renting their machines to retail stores?

Techry rents its machines to retail stores for about $80 per month, and in addition, the company receives a 16% revenue share from the customer charges.

What offer did Kevin O'Leary make to Techry, and what did it involve?

Kevin O'Leary offered to loan Techry $500,000 at 13% interest over 36 months, in exchange for a 5% equity warrant, rather than a direct equity investment.