Voyage Air Guitar
NO DEAL
EPISODE SUMMARY
🕓 Air Date: August 23, 2009
Asking For:
$500,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Voyage Air Guitar offers an innovative folding guitar that provides convenience for travelers and musicians on the go.
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Background Story
Voyage Air Guitar, led by CEO Jeff Cohen, is a company based on innovation and a deep love for music. The company was founded as a collaborative effort between Jeff and his son, Josh Cohen. Jeff, a passionate musician and entrepreneur, envisioned a solution to a common problem faced by guitarists: the inconvenience of traveling with a traditional guitar. Driven by their shared passion for music and a desire to revolutionize the guitar industry, Jeff and Josh embarked on a journey to create an innovative product that would address this challenge.
Drawing from Jeff’s background in business and entrepreneurship, as well as his personal investment in the music industry, the duo poured their expertise and resources into developing a groundbreaking solution. The idea for Voyage Air Guitar emerged from Jeff’s personal experiences as a musician and frequent traveler. Frustrated by the limitations of traditional guitars when it came to portability, Jeff recognized an opportunity to introduce a disruptive innovation to the market.
Inspired by the concept of foldable instruments and fueled by their determination to create something truly unique, Jeff and Josh embarked on extensive research and development to bring their vision to life. Their journey was not without challenges, but their unwavering dedication and shared commitment to their vision fueled their progress. Ultimately, Voyage Air Guitar was born out of a desire to bridge the gap between convenience and quality in the world of musical instruments, with Jeff and Josh leading the charge towards a future where musicians can enjoy the freedom to travel without compromising on their craft.
The Product
Voyage Air Guitar offers a revolutionary solution to the age-old challenge of traveling with a traditional guitar. The standout feature of their product is its patented folding mechanism, which allows the guitar to neatly fold in half, transforming it into a compact and portable package. This innovative design enables musicians to carry their guitars with ease, whether it’s for a cross-country tour, a backpacking adventure, or simply commuting to a gig.
Despite its foldable nature, Voyage Air Guitar promises exceptional sound quality and performance, rivaling that of traditional guitars. Its sturdy construction and high-quality materials ensure durability and reliability, making it suitable for professional musicians and enthusiasts alike. Available for purchase directly from the company’s website or through authorized retailers, Voyage Air Guitar offers various models to cater to different preferences and budgets.
Prices may vary depending on the model and additional features, but the company aims to provide an accessible option for musicians seeking portability without compromising on sound quality. With its blend of innovation, convenience, and performance, Voyage Air Guitar stands as a game-changer in the world of musical instruments, offering a versatile and practical solution for musicians on the move.
How It Went
The company’s position before Shark Tank
Voyage Air Guitar has demonstrated promising potential in the market since its inception, although it faces challenges in scaling production and meeting demand. The company’s health and position are characterized by moderate success in sales and revenue generation, with approximately 800 units sold, translating to around $400,000 in revenue. However, Voyage Air Guitar struggles with cash flow issues due to production constraints, resulting in a negative cash flow position despite promising sales figures.
In terms of partnerships, Voyage Air Guitar has collaborated with authorized retailers and distributors to expand its reach and distribution network. These partners play a crucial role in marketing and selling the product to a wider audience, leveraging their expertise and resources to promote Voyage Air Guitar’s innovative offerings. The company’s customer base primarily consists of musicians and guitar enthusiasts seeking a portable and convenient solution for traveling with their instruments. These customers value the product’s foldable design, sound quality, and durability, making Voyage Air Guitar a preferred choice for on-the-go musicians.
In terms of funding, Voyage Air Guitar has primarily relied on internal financing and investments from the founder, Jeff Cohen. However, the company is open to external funding opportunities to support its growth and expansion plans, particularly in scaling production and increasing inventory levels to meet growing demand. Despite facing challenges, Voyage Air Guitar remains determined to capitalize on its innovative product and tap into the lucrative guitar market. With strategic partnerships, focused marketing efforts, and a commitment to product excellence, the company aims to strengthen its position in the industry and achieve sustainable growth in the future.
The Negotiations:
During the negotiation on Shark Tank, Voyage Air Guitar sought $500,000 for a 5% equity stake in the company. The Sharks expressed interest in the product’s innovative design and potential market appeal but raised concerns about the company’s valuation and financial performance. Jeff Cohen, the CEO, emphasized the uniqueness of the patented folding mechanism and the untapped market opportunity in the guitar industry.
Multiple Sharks made offers, including Kevin O’Leary’s proposal of $500,000 for 51% of the patent, which Jeff ultimately declined. O’Leary’s offer aimed to leverage his expertise in licensing deals and distribution channels to maximize the product’s potential. However, Jeff was unwilling to relinquish majority control of the patent. Robert Herjavec also proposed a deal, offering $1 million for 49% of the patent, but Jeff deemed the offer unacceptable due to the loss of control.
Ultimately, Jeff’s reluctance to compromise on equity led to the collapse of negotiations, with no deal being struck. Despite the Sharks’ interest and willingness to invest, Jeff’s steadfast commitment to retaining control over the patent prevented a successful outcome. The negotiation underscored the importance of finding a balance between securing investment and maintaining control, highlighting the challenges faced by entrepreneurs in navigating strategic partnerships and equity arrangements.
