Zuum – Self-Balancing E-Skates
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 5, 2020
Asking For:
$125,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Zuum Shoes are individual self-balancing platforms for your feet, reaching a top speed of 8 miles per hour, providing a unique and entertaining mode of personal electric transportation.
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Background Story
Founded by Chico and Mason from Portland, Oregon, Zuum Technologies entered the market to capitalize on the growing trend of electric rideables. Inspired by the fascination consumers had with electric scooters and hoverboards, the founders aimed to make electric rideables more accessible to the masses. The two young entrepreneurs launched Zuum Shoes, a unique product in the personal electric vehicle space.
Chico and Mason, driven by a passion for electric rideables, established their company with a vision to introduce innovative products. They recognized the trend sweeping the U.S. and sought to contribute to it by making a mark in the electric rideables market. Zuum Shoes were conceived as a fun and convenient way for people to travel short distances with a touch of style and entertainment.
The Product
Zuum Shoes are individual self-balancing platforms designed to be strapped onto the user’s feet. With a top speed of 8 miles per hour and an average ride time of 1 hour, these shoes provide a novel and entertaining way to navigate short distances. The self-balancing technology allows users to easily maneuver through and over different objects.
The shoes are showcased as a versatile and amusing means of transportation. Users can perform various movements, including practicing dance moves, highlighting the fun aspect of Zuum Shoes. Priced at $299, the product is positioned as an affordable and accessible option in the personal electric vehicle market. Additionally, the compact size of Zuum Shoes allows users to conveniently carry them in a backpack.
Manufactured in China, the self-balancing technology is not exclusive to Zuum Technologies, but the founders express their intention to innovate on top of the existing electric scooter market. The duo launched a Kickstarter campaign to gauge market interest and raised $25,000 to test the concept and fund manufacturing.
Despite being compared to competitors like Segway, the founders emphasized that Zuum Shoes offers a more cost-effective alternative. While facing challenges like potential city obstacles and a lack of exclusivity on the technology, the founders aim to use the investment to create custom designs, distinguishing their brand in a competitive market.
How It Went
The company’s position before Shark Tank
Zuum Technologies presented a Kickstarter campaign as part of their market testing strategy, raising $25,000 to assess the viability and interest in their product. The founders acknowledged that they don’t own exclusive rights to the self-balancing technology, positioning themselves more as distributors than creators of the product. The company faced criticism from the Sharks for not having a clear business strategy or exclusivity in their contract with the manufacturer.
Despite their initial success with the Kickstarter campaign, the lack of a proprietary product and a defined market strategy raised concerns among the Sharks. The founders identified capital as a significant obstacle, expressing the need for funding to fulfill opportunities and invest in inventory. However, the Sharks were unconvinced that money alone would solve the challenges faced by Zuum Technologies. The absence of a clear vision, proprietary elements, or a strategic edge in a competitive market led to the Sharks’ reluctance to invest.
The Negotiations:
The pitch began with Chico and Mason seeking $125,000 for a 20% equity stake in Zuum Technologies. The founders showcased Zuum Shoes, highlighting their unique self-balancing technology and entertaining features. The Sharks, however, raised questions about the company’s lack of exclusivity on the technology and the competitive nature of the market. Barbara was the first to bow out, expressing concerns about the challenges the product might face in the future.
Lori questioned the founders about their competition, and after learning about competitors like Segway, she decided to opt out as well. Kevin followed suit, stating that he hated the business and saw no potential in it. Mark expressed confusion about the business plan and was dissatisfied with the founders’ responses. He ultimately decided not to invest, and when Robert was asked for his decision, Kevin humorously took on Robert’s role but also declined to invest.
The negotiations concluded with Chico and Mason not securing a deal from any of the Sharks. The founders left the Tank without an investment but expressed a commitment to continue marketing and selling their product. In the aftermath, the founders acknowledged the feedback and vowed to learn from it, with a focus on improving their sales and marketing efforts. Despite not securing a deal, they remained optimistic about Zuum Shoes’ potential in the market.
