DetraPel – Stain Repellent
DEAL
EPISODE SUMMARY
🕓 Air Date: January 7, 2018
Asking For:
$200,000 for 20%
Investor:
Mark Cuban, Lori Greiner (50/50)
Deal:
$200,000 for 25%
PRODUCT SUMMARY
Detrapel is a super hydrophobic liquid repellant spray that protects belongings from liquid-based substances, keeping them clean and stain-free.
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Background Story
David Zamarin, the 19-year-old founder of Detrapel, grew up in a low-income family with immigrant parents. The idea for Detrapel came when he, as a high school freshman, wanted to protect his new Jordans but lacked the resources to develop the product. Instead, he started a shoe-cleaning business for local university sports teams, eventually selling the business for $150,000.
Zamarin used the proceeds to fund Detrapel, a hydrophobic liquid-repellent spray. Facing manufacturing challenges and the bankruptcy of the initial manufacturer, he persevered through a three-year hiatus to re-engineer the formula. Detrapel is now a water-based, non-toxic product created using nanoparticles.
The Product
Detrapel is a super hydrophobic liquid-repellent spray designed to shield belongings from liquid-based substances. The product, applied as a spray, creates a protective layer that causes liquids to bead and roll off the treated surface.
The formula is unique in its use of nanoparticles, which are particles reduced to nano size. This technology, combined with a water-based formula, ensures the product is non-toxic and eco-friendly. The coating is safe for contact with the skin due to a natural wax coating, making it resistant to penetration unless there’s an open sore or cut.
The application process is simple, with one treatment lasting an entire year. Unlike other hydrophobic products, Detrapel boasts no glossy barrier, no white discoloration, and complete non-toxicity. The founder emphasizes the safety of the formula, even demonstrating its harmlessness by spraying it directly on his hands.
Detrapel is sold in various sizes, with the travel size priced at $12.99. The cost to produce one unit is $1.14, providing a healthy profit margin. The product is currently available for purchase on the company’s website.
How It Went
The company’s position before Shark Tank
Detrapel, as of the pitch, is a young, growing brand projecting revenues between $300,000 and $350,000 for the year. The primary customer base is business-to-business, with a focus on companies creating consumer products like furniture and carpets. The founder emphasizes adherence to FDA testing and EPA compliance regulations, ensuring the product’s safety and regulatory compliance. The current sales strategy involves direct-to-consumer sales through the company’s website.
The Negotiations:
David Zamarin enters the Shark Tank seeking a $200,000 investment for a 20% equity stake. Mark Cuban and Lori Greiner make a joint offer of $200,000 for a 25% equity stake. As the negotiation progresses, Robert Herjavec and Rohan Oza express interest, with Robert proposing $200,000 for 25% and a stipulation that the founder retains ownership of the formula. Lori Greiner and Mark Cuban sweeten their offer to match Robert’s $200,000 for 25%.
Robert and Rohan make a counteroffer of $200,000 for 23%, providing a slightly better deal. The negotiation intensifies, with David ultimately choosing Mark Cuban and Lori Greiner’s offer of $200,000 for 25%. The decision is based on the Sharks’ expertise in branding, product development, and their established presence in the market. Despite Robert’s attempt to appeal to shared immigrant experiences, David opts for the combination of Mark and Lori’s skills for a win-win situation. The deal is sealed, and Detrapel secures Mark Cuban and Lori Greiner as strategic partners in the business.
