Sports Start-Up Predicted To Make $100,000,000 in 2025?! | Shark Tank Australia

Summary

In this pitch to the Sharks, Mick Spencer, the founder of On the Go Sports, seeks a $300,000 investment for a 10% equity stake in his company. After overcoming a significant problem in the sportswear industry, he revolutionized the way customers design custom sports gear. The company is growing rapidly, boasting big-name clients like GoPro and Olympic teams. Despite the competition and his company's early-stage profitability, Mick impresses the Sharks with his ambition, offering a 15% equity stake in exchange for investment. Ultimately, a deal is struck with three Sharks investing $600,000 for a 30% stake in the company.

Takeaways

• 😀 Mick Spencer is the founder and managing director of On the Go Sports, a company offering customized sportswear with fast delivery.
• 😀 Mick is asking for a $300,000 investment in exchange for a 10% equity stake in his company.
• 😀 The company was founded after Mick solved a significant problem for a sports event needing 400 cycling jerseys in less than 3 weeks.
• 😀 On the Go Sports allows customers to design their own sportswear online with a highly innovative and fast delivery system.
• 😀 The company serves global customers, including major brands like Iron Man, GoPro, and Olympic teams, growing at over 80% year-over-year.
• 😀 On the Go Sports is projected to reach a turnover of $1.6 million this year and aims for $25 million in 2020, with a goal of $100 million by 2025.
• 😀 The main competitive advantage of On the Go Sports is its speed of delivery, which surpasses larger players with heavy supply chains.
• 😀 Despite strong growth, the company is currently in negotiations for a $1 million annual deal with Australia's largest sporting body.
• 😀 Mick has a big vision, aiming to build a billion-dollar company, but the current valuation is under scrutiny with only $255,000 in profit to date.
• 😀 After receiving offers from multiple investors, Mick proposes a deal for $300,000 for 15% equity, resulting in a final agreement of $600,000 for 30% equity, showing strong investor confidence.

Q & A

What problem did Mick Spencer's company, On the Go Sports, solve when it was first founded?

On the Go Sports solved the issue of delivering custom sportswear quickly when a sports event needed 400 cycling jerseys in less than three weeks due to a staff member leaving without ordering them.

What is the unique selling point of On the Go Sports' service?

The unique selling point of On the Go Sports is the speed of delivery. They offer a direct-to-customer model, bypassing traditional supply chain delays and allowing faster production of custom sportswear.

What major brands and organizations use On the Go Sports' products?

On the Go Sports' products are used by organizations like Iron Man, Anytime Fitness, GoPro, national sporting bodies, and Olympic teams, along with over 3,500 other organizations.

How much revenue is On the Go Sports projected to make this year?

On the Go Sports is projected to make $1.6 million in revenue this year.

What were the challenges Mick Spencer faced in scaling his business?

Mick faced challenges in terms of financing, as he initially had only $150 to his name when he founded On the Go Sports. Additionally, scaling the business involved overcoming the complex processes of delivering custom sportswear quickly on a large scale.

What offer did the sharks make to Mick Spencer during the pitch?

The sharks made an offer of $300,000 for 20% equity in On the Go Sports, though Mick initially asked for less equity due to his larger vision for the company.

What is Mick Spencer's long-term vision for On the Go Sports?

Mick's long-term vision for On the Go Sports is to build a billion-dollar company, with a target of reaching $100 million in revenue by 2025.

Why did Mick Spencer consider asking for 15% equity instead of 20%?

Mick Spencer, after discussing with his CFO, decided to offer 15% equity in exchange for $300,000, hoping to retain a larger stake in the company while still securing the investment from the sharks.

Why did Mick ultimately accept the sharks' offer of $600,000 for 35% equity?

Mick accepted the sharks' offer of $600,000 for 35% equity because it provided the capital needed to grow his business, despite the fact that it overvalued the company at its current stage.

What concerns did the sharks have about investing in On the Go Sports?

The sharks expressed concerns about the highly competitive environment, particularly with the company being based in Australia and competing against global players. They also questioned the valuation of the business and its unproven scale.