Windcatcher Quick Inflating Air Mattress
DEAL
EPISODE SUMMARY
🕓 Air Date: October 30, 2015
Asking For:
$200,000 for 8%
Investor:
Lori Greiner
Deal:
$200,000 for 5%
PRODUCT SUMMARY
Windcatcher Technology offers a revolutionary inflation technology that allows for rapid inflation of objects, demonstrated through their flagship product, the AirPad 2, an inflatable pad that also doubles as a seat.
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Background Story
Windcatcher Technology, founded by Ryan Frayne in Portland, Oregon, emerged from his frustration with the cumbersome process of inflating objects through conventional valves. The breakthrough came after a family beach trip, where the tedious inflation of pool rafts sparked the idea.
Through trial and error, Ryan discovered the concept of entrainment, leading to the development of Windcatcher’s unique inflation technology. Although not an engineer, Ryan’s passion for invention and problem-solving led him to patent the technology. The company’s flagship product, the AirPad 2, showcases the effectiveness of this innovation.
The Product
Windcatcher’s inflation technology utilizes entrainment, allowing objects to inflate rapidly with just a single breath. The AirPad 2, priced at $99.95, showcases this technology and can be easily inflated and packed up within seconds. Its versatility is highlighted as it can double as a seat by folding and attaching straps.
The innovative valve design, based on entrainment, sets Windcatcher apart from traditional inflation methods, making it 10 times faster. The technology has been integrated into the AirPad 2, demonstrating its potential for various applications beyond recreational products.Â
How It Went
The company’s position before Shark Tank
Since its Kickstarter campaign in May 2013, Windcatcher Technology has generated $165,000 in revenue. The AirPad, with a retail price of $99.95, boasts a 60% profit margin when sold to retailers. Despite not disclosing manufacturing costs, Ryan emphasizes the margins and the need for the $200,000 investment. The company’s focus is on travel and outdoor gear, avoiding products outside this niche. Windcatcher is a single-man operation, with Ryan Frayne spearheading the business.
The Negotiations:
Ryan entered the Tank seeking $200,000 for an 8% equity stake. The sharks were intrigued by the innovative technology but questioned the scalability and competitive landscape. Kevin O’Leary proposed a venture debt deal, causing friction as Ryan expressed concerns about immediate repayments. Other sharks explored licensing opportunities and questioned Windcatcher’s ability to compete with established players in the market.
Lori Greiner, recognizing Ryan’s need for help, offered $200,000 for 15%, emphasizing her expertise in product development and retail. Chris Sacca expressed interest but suggested a higher equity stake, leading Lori to revise her offer to $200,000 for 10%.
However, Lori later amended her deal to $200,000 for 5%, excluding Chris Sacca. Despite the change, Ryan accepted the deal, marking a successful partnership with Lori Greiner. Kevin O’Leary voiced his disappointment at the low equity percentage, while Chris Sacca expressed sympathy for Ryan. The negotiation showcased the sharks’ contrasting approaches, with Lori securing the deal with a lower equity share than initially requested.
