LARQ Self-cleaning Water Bottle
DEAL
EPISODE SUMMARY
🕓 Air Date: April 16, 2021
Asking For:
$500,000 for 1%
Investor:
Lori Greiner, Kevin O'Leary (50/50)
Deal:
$1,000,000 for 4%
PRODUCT SUMMARY
LARQ offers the LARQ Bottle, a self-cleaning water bottle that uses UV-C LED technology to purify water, eliminating 99.99% of harmful bacteria, viruses, and mold, providing a convenient and eco-friendly alternative to single-use plastic bottles.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Justin Wang, the founder of LARQ, introduced the LARQ Bottle as a solution to the common issue of reusable water bottles accumulating harmful bacteria and developing odors. He highlighted the environmental problem of one million single-use plastic water bottles being consumed every minute.
Justin explained that he was inspired to create the LARQ Bottle after experiencing problems with other reusable bottles, such as mold growth and odor. He partnered with a co-founder with a Ph.D. in physics from Caltech to develop the UV-C LED technology, PureVis, which powers the LARQ Bottle’s self-cleaning and water-purifying capabilities.
The Product
The LARQ Bottle is a groundbreaking self-cleaning water bottle that utilizes patented UV-C LED technology to purify water on the go. By pressing a button, the UV-C light activates, eradicating 99.99% of harmful bacteria, viruses, and mold within the bottle in just 60 seconds.
It also eliminates unpleasant odors, ensuring the user enjoys pure and clean water. The LARQ Bottle is not only environmentally friendly but also convenient for individuals who want access to purified water without the need for single-use plastic bottles.
The product comes in various designs and is priced at $95, with a portion of proceeds donated to charity partners. It is available for purchase online and appeals to consumers who seek a sustainable and health-conscious alternative to traditional reusable bottles.
How It Went
The company’s position before Shark Tank
LARQ had been on the market for under two years and had already achieved significant success. In its first full year in 2019, the company generated over $5.5 million in sales. Over the last 12 months, LARQ has reached $9 million in sales, with plans to achieve $14 million in the current year.
The company raised $6.7 million in an early venture capital round at a valuation of approximately $31.7 million. LARQ maintained a strong financial position with approximately $6.5 million in available capital. The company was structured to accommodate growth and expansion. The LARQ product line extended beyond the LARQ Bottle to include innovative solutions like the LARQ Pitcher, further expanding the brand’s reach and market presence.
The Negotiations:
Justin Wang entered the Shark Tank seeking $500,000 for just 1% of his company, LARQ, valuing the company at a remarkable $50 million. This valuation raised eyebrows among the Sharks, making it the highest valuation ever requested on the show.
The Sharks were intrigued by the LARQ Bottle’s self-cleaning and water-purifying capabilities, acknowledging the potential for disruption in the reusable water bottle market. However, they were cautious about the lofty valuation. Mark Cuban decided to pass on the deal early in the negotiation process, citing concerns about the product’s scalability and market potential given its high price point.
Lori Greiner and Kevin O’Leary were initially interested in making a deal and discussed various offers. They ultimately proposed investing $1.5 million in total, with each Shark contributing $500,000. The proposed deal involved acquiring 6% equity in LARQ, with an additional 1% in advisory shares to be split among the Sharks.
Justin expressed his concern about diluting his valuation below the previous round and attempted to negotiate a $1.5M for a 4.5% stake + 1% advisory shares but without contingencies. In the end, Justin accepted Lori Greiner and Kevin O’Leary’s offer of $1 million for 4% equity to be shared between them. Justin valued the advisory shares as an opportunity for the Sharks to provide valuable input into the company’s growth strategy.
