Sway Motorsports
DEAL
EPISODE SUMMARY
🕓 Air Date: May 15, 2015
Asking For:
$300,000 for 10%
Investor:
Mark Cuban
Deal:
$300,000 for 20%
PRODUCT SUMMARY
Sway Motorsports presents "Sway," an innovative electric vehicle that combines the thrill of a motorcycle with added safety, utility, and maneuverability. The patented Sway-Tilt Control allows riders to control the tilt of the vehicle with their feet.
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Background Story
Sway Motorsports, the brainchild of founder Joe Wilcox, emerged from a blend of innovative design expertise and a passion for redefining personal transportation. Located at the intersection of Silicon Valley ingenuity and urban mobility needs, Sway Motorsports finds its roots in Palo Alto, California. Joe Wilcox, the creative force behind Sway, boasts a rich background in design, particularly in the realm of toys. His journey as a toy inventor led him to IDEO, a global design consultancy in Palo Alto, renowned for its user-centered design approach. Over the years, Joe honed his skills, contributing to the creation and design of toys that have become fixtures in major toy stores worldwide.
The inception of Sway Motorsports stems from Joe’s dual identity as both a maker and a visionary designer. Fueled by a desire to revolutionize personal transportation, Joe leveraged his extensive experience to craft the Sway, an electric vehicle that marries the excitement of a motorcycle with enhanced safety, utility, and maneuverability tailored for urban commuters. The key innovation in Sway is the patented Sway-Tilt Control, an all-mechanical linkage system designed by Joe. This ingenious mechanism empowers riders to control the tilt of the vehicle with their feet, ensuring stability while keeping the battery mass ultra-low.
This distinctive feature allows riders to navigate turns more tightly and swiftly than traditional two-wheelers. Sway Motorsports, with its flagship product, envisions a future where electric vehicles seamlessly blend thrill and practicality for urban commuters. Joe Wilcox’s journey from toy design to electric mobility underscores the company’s commitment to pushing the boundaries of innovation in the transportation sector. As they embark on the quest for a high-volume manufacturing partner, Sway Motorsports stands poised to transform the landscape of urban commuting.
The Product
Sway Motorsports introduces a groundbreaking electric vehicle designed to revolutionize personal transportation – the Sway. At its core, Sway combines the exhilarating experience of a motorcycle with unprecedented safety, utility, and maneuverability, making it the ideal urban commuter vehicle.
The standout feature of Sway is the patented Sway-Tilt Control, an innovative all-mechanical linkage system crafted by founder Joe Wilcox. This technology enables riders to control the tilt of the vehicle with their feet, enhancing stability while keeping the battery mass exceptionally low. As a result, riders can navigate turns more sharply and efficiently than on traditional two-wheelers.
The versatility of Sway extends beyond its unique control system. It can comfortably carry passengers and cargo, making it a practical choice for urban commuting. Its adaptability allows riders to traverse various terrains, including snow, mud, and ice. Importantly, due to its three-wheel configuration, riders in California and the European Union can operate the Sway without the need for a motorcycle license.
Interested customers can purchase the Sway directly from the company’s website. The pricing structure offers a 60-mile-an-hour, 40-mile range version at $79,999. The design incorporates a bottom platform that serves as an integrated stable storage platform, providing space for batteries, chargers, and controllers while leaving the top portion open for additional storage and modular accessories.
How It Went
The company’s position before Shark Tank
From the pitch, it’s apparent that Sway Motorsports was seeking a $300,000 investment on Shark Tank, emphasizing the need for an Original Equipment Manufacturer (O.E.M.) for high-volume manufacturing and distribution. Joe Wilcox mentioned ongoing discussions with over five manufacturers. However, the exact status of these discussions or any finalized partnerships is not disclosed in the episode.
Customer information is limited to the fact that Sway Motorsports has secured deposits representing $350,000 in pre-sales, signaling initial interest in the product. Information on current funding sources, profits and losses, and available capital is not disclosed in the pitch. The company’s financial health and position remain unclear without specific data on revenue, expenses, and overall profitability. The pitch primarily focuses on the product and the negotiation process, leaving out vital details about the broader business landscape of Sway Motorsports.
The Negotiations:
In the Shark Tank negotiation for Sway Motorsports, founder Joe Wilcox sought a $300,000 investment for a 10% equity stake in his innovative electric vehicle company. Mark Cuban, intrigued by the potential of Sway, made a counteroffer of $300,000 for a higher equity share, proposing a 20% stake. After some consideration, Joe accepted Mark’s deal, securing a partnership with the renowned entrepreneur. The negotiations were marked by initial skepticism from some sharks, with Kevin O’Leary expressing concerns about the binary nature of success in the market and the need for distribution, marketing, and manufacturing partners.
Daymond John and Nick Woodman also bowed out, citing challenges in consumer perception and maintenance. Despite the uncertainties raised by the sharks, Mark Cuban recognized the unique value proposition of Sway and seized the opportunity to invest. His offer aligned with Joe’s funding needs, and the deal was sealed at $300,000 for a 20% equity share, giving Mark a stake in the future success of Sway Motorsports.
This negotiation showcased the inherent challenges and risks associated with bringing an innovative product to market, particularly in a niche industry like electric personal transportation. Mark Cuban’s investment not only provided the required capital but also brought strategic guidance and mentorship to help Sway Motorsports navigate the complexities of the market and build a successful business around their groundbreaking electric vehicle.
