Neo Innovations Tattoo Removal
NO DEAL
EPISODE SUMMARY
🕓 Air Date: March 1, 2013
Asking For:
$80,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Neo Innovations offers Black Magic IPL, an affordable at-home tattoo removal device using intense-pulse light technology.
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Background Story
Neo Innovations, founded by Nick Gonzales and Kevin Mack, emerged from Gonzales’s experience owning a tattoo shop, where he witnessed a growing demand for tattoo cover-ups and removals. Fueled by this observation and Mack’s expertise, they sought to develop an affordable solution for tattoo regret.
Recognizing the high cost and inconvenience associated with traditional laser tattoo removal, they conceptualized Black Magic IPL, a device utilizing intense-pulse light to break up tattoo pigments without damaging the skin’s surface. With their combined backgrounds in tattoo artistry and technological innovation, they embarked on a mission to democratize tattoo removal, making it accessible for individuals to use in the comfort of their own homes.
The Product
Black Magic IPL operates as an at-home tattoo removal device, leveraging intense-pulse light technology to target and break up tattoo pigments without harming the surrounding skin. The device is user-friendly, requiring individuals to place the tip on the desired treatment area and pulse one to three times, moving gradually to cover the entire tattoo.
The tattoo fades gradually over several weeks following treatment. The device features adjustable settings, allowing users to tailor the intensity based on their tattoo’s darkness and ink type. Its key features include affordability compared to traditional laser treatments, ease of use, and the ability to target a wide range of tattoo sizes and colors. The device’s safety measures include adjustable wattage and protective functions to prevent misuse and potential harm.
Black Magic IPL is available for purchase online through platforms like Amazon and eBay, with retail prices ranging from $139.99 to $300. Despite being relatively new to the market, Neo Innovations has sold approximately 1,200 units within its first year of operation, indicating a growing demand for accessible tattoo removal solutions.
How It Went
The company’s position before Shark Tank
Neo Innovations operates primarily through online platforms like Amazon and eBay, reaching a broad customer base seeking affordable tattoo removal solutions. The company’s current sales strategy focuses on direct-to-consumer channels, with plans to expand marketing efforts to increase sales volume. While Neo Innovations has achieved notable success in unit sales, generating revenue of $700,000 in its first year, it faces challenges regarding FDA approval and liability concerns.
The company has applied for FDA approval for its process but has yet to receive clearance for its device. This regulatory hurdle poses a significant barrier to market expansion and potential partnerships with retail outlets or medical professionals. In terms of funding, Neo Innovations initially sought $80,000 in exchange for 20% equity on Shark Tank, aiming to allocate the capital towards FDA approval and marketing initiatives.
However, the sharks expressed reservations regarding the product’s safety and liability risks, ultimately opting not to invest. Currently, Neo Innovations operates as a small team, with Gonzales and Mack overseeing product development, sales, and marketing efforts. The company’s structure may evolve as it navigates regulatory challenges and explores opportunities for growth in the tattoo removal market.
The Negotiations:
During the pitch on Shark Tank, Neo Innovations sought $80,000 in exchange for a 20% equity stake in the company. Despite highlighting the significant market demand for affordable tattoo removal solutions and showcasing the efficacy of Black Magic IPL, the sharks expressed skepticism regarding the product’s safety and regulatory compliance. Several sharks, including Barbara Corcoran and Kevin O’Leary, raised concerns about potential liability issues associated with at-home tattoo removal devices, particularly without FDA approval.
Despite Neo Innovations’ assurance of safety measures and ongoing FDA approval process, these concerns ultimately led the sharks to opt out of investing. The negotiation process underscored the importance of regulatory compliance and risk mitigation in the medical device industry. Despite Neo Innovations’ innovative product and promising market traction, the lack of FDA approval and unresolved liability concerns hindered investment opportunities on Shark Tank.
