$500k for Just 5%: "This better be good!" | Shark Tank US | Shark Tank Global

Summary

In this pitch, Justin Randle and Bart Lamont from Dallas present their innovative robotic lawn mowing service to the Sharks, seeking $500,000 for 5% of their company. They highlight the inefficiencies of traditional lawn care, proposing a more eco-friendly solution with robotic mowers. The service offers a variety of packages, from basic mowing to full landscaping. With a $5 million annual revenue and a strong growth potential, the business aims to revolutionize lawn care in the U.S. Despite some interest, the Sharks express concerns about the high costs and long investment horizon, leading to no deal.

Takeaways

• 🌱 Robin offers the world's first robotic lawn-mowing service, combining automated mowers with human crews for a complete lawn care solution.
• 💰 The founders are seeking $500,000 for 5% of the company to expand their innovative lawn care service.
• 🚜 Traditional lawn care in the U.S. costs $70 billion annually and relies heavily on unreliable, gas-powered mowers that harm the environment.
• 🤖 The robotic mowers cut a small amount of grass daily, and clippings act as natural fertilizer, reducing the need for additional chemicals.
• 🔌 Each robot uses a buried perimeter wire and a docking station to navigate and return home after mowing.
• 💵 Customers pay a weekly subscription: $17 for mowing, $25 for mowing plus edging, and $37 for full-service care including weeding and shrub trimming.
• 🌍 The robots are manufactured in Europe and are already widely used there, but there are less than 10,000 units in the U.S.
• 📈 The company has a current revenue-generating lawn care business, performing 10,000 jobs per month with a nearly $5 million run rate.
• 📉 Last year, the company lost just over $1 million due to aggressive growth investments, with a monthly burn rate of approximately $100,000.
• 💡 The founders’ backgrounds combine logistics, military operations, and business development, which supports the operational and scaling aspects of the company.
• ⚖️ Investors expressed concerns about capital costs, long horizon for ROI, and valuation, leading all Sharks to ultimately decline the investment.

Q & A

Who are the presenters in the pitch and what company are they representing?

The presenters are Justin Randle and Bart Lamont, and they are representing Robin, a robotic lawn mowing service.

What problem are the presenters addressing in the lawn care industry?

They are addressing the high cost and inefficiency of traditional lawn care services, which use unreliable landscapers and polluting gas-powered mowers, despite the availability of modern, self-driving battery-powered alternatives.

How does the Robin robotic lawn mower work?

The Robin mower uses a perimeter wire to define the yard boundaries, mows a small portion of grass each day, and returns automatically to its docking station at the end of the day. The clippings act as natural fertilizer, reducing the need for additional fertilizer by about 25%.

What is the business model for Robin's service?

Customers subscribe to Robin's lawn care service rather than purchasing the robots. Pricing options include $17 per week for mowing, $25 per week for mowing plus edging/trimming, and $37 per week for full service including weeding and shrub trimming. The company leases the robots from European manufacturers with minimal upfront costs.

What is the current scale of Robin's existing operations?

Robin performs about 10,000 jobs per month across Houston, Austin, and Dallas, generating approximately $400,000 per month, with an annualized run rate of about $5 million.

What are the backgrounds of the founders?

Bart Lamont has a background in logistics and operations and is a former military operations officer. Justin Randle has a business and sales background, holds an MBA from Harvard, and has experience growing e-commerce revenue from $0.5 million to $15 million.

How many team members and crews does Robin have?

Robin has 10 full-time team members and contracts with about 80 crews.

What financial challenges were highlighted in the pitch?

The company lost over $1 million last year due to aggressive growth investment and has a monthly burn rate of approximately $100,000. Break-even can be achieved if they pause customer acquisition spending.

Why did the investors ultimately decline to invest in Robin?

Investors were concerned about the high capital costs, the long horizon for return on investment, the $10 million valuation, and the need for substantial future fundraising to scale the business.

What differentiates Robin from traditional lawn care services?

Robin combines robotic mowing technology with human crews for tasks like edging and trimming, offering a more environmentally friendly, reliable, and potentially higher-margin lawn care solution compared to traditional services.

How does Robin manage to reduce upfront costs for customers?

Robin has an agreement with European manufacturers where robots are installed at no upfront cost, customers are charged for the first month, and then the company pays the manufacturer $45 per month on a lease model.

What environmental benefits does Robin offer?

The robotic mowers reduce pollution compared to gas-powered mowers and minimize fertilizer use by letting grass clippings naturally fertilize the lawn.