XTorch Solar-Powered Flashlight
NO DEAL
EPISODE SUMMARY
🕓 Air Date: April 23, 2021
Asking For:
$150,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
XTorch is a solar-powered, rechargeable device that functions as a flashlight, lantern, and cellphone charger, designed to provide reliable backup power during emergencies.
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Background Story
Keidy and Gene, the founders of XTorch, introduced their product to the Sharks on Shark Tank. Keidy is originally from the Dominican Republic, where she experienced frequent power outages. Gene has experience living in Mexico, where power outages are also common.
They came up with the idea for XTorch after a harrowing experience in Equatorial Guinea, where Keidy fell seriously ill, and they had to rely on a small flashlight to administer medication in the dark. This incident inspired them to create a reliable and versatile emergency light and power device.
The Product
The XTorch is a multi-functional device that serves as a flashlight, room lantern, table lantern, and reading lantern. It is powered by solar energy and can also be charged via electricity, taking only one hour to charge fully. Additionally, it can charge cell phones through a USB cable.
The device is designed to withstand rugged conditions and can even be frozen in a block of ice for more than two days and still function effectively. It has a long battery life, capable of providing up to 48 hours of continuous light, and can hold a charge for up to three years in storage.
XTorch is equipped with a battery status indicator, making it easy to check the remaining charge. Its versatility and durability make it suitable for various scenarios, including power outages, camping, and emergency situations.
The XTorch is available for purchase on their website for $55.95, with plans to enter brick-and-mortar retail in the future. The founders emphasize that it is not just another flashlight but a reliable emergency light and power device designed to keep families safe during power outages.
How It Went
The company’s position before Shark Tank
In the pitch, Keidy and Gene revealed that their company had sold $53,000 worth of products in the previous year and projected sales of $90,000 for the current year. They mentioned that their business model had shifted from selling to nonprofit organizations to a more commercial approach. They also discussed their involvement with nonprofit organizations worldwide and their commitment to donating at least 25% of their profits to partner organizations.
However, the Sharks were concerned about the company’s lack of sales and the competitive market they were entering. They expressed doubts about the product’s price point and its ability to compete effectively in the flashlight and emergency light industry.
Despite interest from Robert Herjavec, who initially offered $400,000 for 100% ownership of the company, Keidy and Gene declined the offer, stating they wanted a million dollars for their business. Herjavec then increased his offer to $750,000, but the founders refused, and no deal was made. Ultimately, the Sharks were skeptical about the company’s ability to scale and succeed in the competitive market.
The Negotiations:
The negotiation process revolved around Robert Herjavec’s interest in acquiring the entire company. He initially offered $400,000 for 100% ownership, but Keidy and Gene countered with a demand for a million dollars. Herjavec then increased his offer to $750,000, but the founders ultimately declined, as they believed their company was worth more.
The negotiation ended with no deal, as the founders were not willing to accept Herjavec’s offer, and the other Sharks had already expressed their concerns about the company’s performance and market competitiveness.
