SnapClips – Barbell Collars
DEAL
EPISODE SUMMARY
🕓 Air Date: January 28, 2018
Asking For:
$150,000 for 15%
Investor:
Mark Cuban, Lori Greiner, Alex Rodriguez (33,3)
Deal:
$150,000 for 30%
PRODUCT SUMMARY
SnapClips are durable, safe, and user-friendly weight collars that secure free weights to a barbell, with potential applications beyond fitness.
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Background Story
Martin Dimitrov, a 19-year-old entrepreneur from Chicago, introduced SnapClips on Shark Tank. He developed the idea in high school and launched a successful Kickstarter campaign that raised $23,000. The product, inspired by the functionality of bracelets, features layers of heat-treated steel reinforced by military-grade Kevlar, providing durability and safety. Martin, currently a sophomore at the University of Illinois at Chicago, is dedicated to taking SnapClips beyond fitness applications and has an issued patent that allows for licensing in various industries.
The Product
SnapClips is a revolutionary weight collar designed to address the shortcomings of traditional collars. Made with layers of heat-treated steel reinforced by military-grade Kevlar, SnapClips offers superior durability, user-friendliness, and safety.
The snapping mechanism, similar to kids’ bracelets, allows for easy attachment to a barbell. The silicon-on-silicon grip securely holds SnapClips against the weight, and an added Velcro lock provides extra security. After use, SnapClips can be easily removed and straightened out.
Beyond fitness, the product has potential applications in industries such as industrial fasteners and telecom, thanks to its versatile patent. The clips can be used for securing cables and other items, showcasing the product’s adaptability.
Priced at $29.99 for a pair (with a production cost of $8.50), SnapClips offers a cost-effective solution for fitness enthusiasts and industries requiring secure fastening.
How It Went
The company’s position before Shark Tank
SnapClips, a relatively new entrant, launched just a month ago and has already generated $6,500 in sales. While this may seem modest, Martin highlights the successful Kickstarter campaign that yielded $23,000 in a month during high school. The company aims to build on this momentum, with potential applications beyond the fitness industry.
Martin’s valuation of $1 million is based on the Kickstarter success, projected sales, and the perceived value of the patent. He sees the patent as a valuable asset, with interest from wire-management industry leaders. Currently, Martin is the sole driving force behind SnapClips, handling design and other aspects of the business. The sharks express concern about the workload, leading to negotiations around equity and investment.
The Negotiations:
The negotiations kick off with Martin seeking $150,000 for 15% equity. Lori Greiner is interested but proposes a 50% stake, citing the substantial work required to build the business. Mark Cuban and Barbara Corcoran, while acknowledging Martin’s potential, opt out as the product doesn’t align with their interests. Alex Rodriguez supports Lori’s offer of 50% equity, emphasizing the hard work required to turn SnapClips into a successful company.
Lori then sweetens the deal, suggesting that if another shark joins, they can split the work, and she offers $150,000 for 30%. Mark Cuban steps in, proposing a partnership where he, Lori, and Alex Rodriguez collectively invest $150,000 for 30% equity. After some back-and-forth, Martin accepts Mark’s offer. Alex Rodriguez insists that Martin must stay in school for the deal to go through, ensuring he continues his education while building the business. The deal is sealed, and SnapClips secures a partnership with Lori Greiner, Alex Rodriguez, and Mark Cuban.
