Flipstik Phone Mount & Stand
DEAL
EPISODE SUMMARY
đź•“ Air Date: November 6, 2020
Asking For:
$100,000 for 20%
Investor:
Lori Greiner
Deal:
$100,000 for 25%
PRODUCT SUMMARY
Flipstik is a paper-thin device that attaches to the back of your phone and features synthetic CT adhesive, allowing it to stick to any flat surface securely.
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Background Story
Akeem Shannon, the founder of Flipstik, pursued his entrepreneurial journey after a successful career in the cellphone industry, working for companies like Sprint and Verizon. However, he yearned for independence and set out to create his product after receiving inspiration from his uncle, an engineer at NASA. Akeem’s journey took him from a college student who lost his scholarship to a successful salesman, eventually launching his own invention, Flipstik.
The product is a result of his dedication to proving to his parents that their investment in his education was worthwhile. He successfully launched Flipstik on Kickstarter and turned his passion for entrepreneurship into a thriving business. His remarkable story of self-motivation and determination resonated with the Sharks.
The Product
Flipstik is a slim and versatile phone accessory designed to enhance users’ mobile experience. It attaches to the back of any smartphone and is available in over 70 different designs and colors.
Its main feature is the synthetic CT adhesive, inspired by gecko feet, which allows the phone to securely stick to various flat surfaces. Flipstik’s adhesive properties are remarkable; it firmly attaches to surfaces such as glass, tile, metal, vinyl, and more.
This versatility enables users to use their phones hands-free in various settings, from kitchens to bathrooms. The adhesive retains its stickiness even when wet and can withstand dirt and grit, making it suitable for everyday use.
How It Went
The company’s position before Shark Tank
Flipstik has generated $115,000 in total sales over a span of 2 1/2 years. Akeem mentioned that the business faced challenges due to COVID-19, with 60% of the revenue coming from brick-and-mortar retail locations. Unfortunately, these revenue channels were significantly impacted by the pandemic.
The product has an impressive profit margin, with an average cost of 58 cents per unit and a retail price of $15. Additional bundled offers provide customers with even greater value. During the pitch, Akeem highlighted the need to transition to a more digital-focused strategy, as retail sales were not performing as expected.
The company’s financials indicated that Flipstik had tremendous potential, especially with the right online marketing and video content. The company’s structure appeared to be primarily run by Akeem, who sought a Shark partner to help elevate Flipstik’s digital marketing efforts and expand the business’s reach.
The Negotiations:
Akeem entered the Shark Tank seeking a $100,000 investment in exchange for a 20% equity stake in Flipstik. After a captivating rap pitch and a product demonstration, Kevin O’Leary offered the exact amount Akeem was seeking—$100,000 for 20% equity. However, Akeem hesitated and shared that the company’s recent sales had been relatively low due to COVID-19.
Lori Greiner recognized the potential of Flipstik and believed that Akeem needed a partner to guide the business’s digital marketing efforts. She offered $100,000 for a slightly higher equity stake of 25%, emphasizing her extensive experience with successful products. Daymond John and Barbara Corcoran both opted out of the deal, with Daymond citing potential competition from a similar product he was involved with called LoveHandle.
Despite receiving an offer from Kevin O’Leary, Akeem ultimately chose to accept Lori Greiner’s offer of $100,000 for 25% equity. He valued her expertise and saw her as the ideal partner to help Flipstik thrive, particularly in the digital marketing realm. Lori’s background in creating compelling product videos and marketing strategies made her the perfect fit for Akeem’s vision.
