ootBox Moveable Workspaces
DEAL
EPISODE SUMMARY
🕓 Air Date: March 18, 2022
Asking For:
$300,000 for 5%
Investor:
Barbara Corcoran
Deal:
$300,000 for 10%
PRODUCT SUMMARY
ootBox is an 80-square-foot outdoor plug-and-play experience made from upcycled shipping containers, providing a versatile, temperature-controlled, and soundproof space for various purposes.
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Background Story
ootBox was founded by Robbie and Allison, two innovative entrepreneurs hailing from Columbus, Ohio. With a shared passion for sustainable solutions and a keen eye for repurposing materials, they embarked on a journey to create a product that would address the growing need for adaptable outdoor spaces. Both Robbie and Allison come from backgrounds in design and construction, leveraging their expertise in repurposing materials to breathe life into their vision.
Their inspiration for ootBox struck during the tumultuous times of the pandemic, when the world was grappling with the need for functional, private outdoor spaces. Recognizing the potential to offer a solution that seamlessly blends sustainability, functionality, and versatility, they set out to transform ordinary shipping containers into state-of-the-art, eco-friendly outdoor structures. This endeavor led them to create ootBox, an 80-square-foot plug-and-play outdoor space crafted from upcycled shipping containers.
Driven by a commitment to eco-conscious design and a vision for a more flexible and sustainable future, Robbie and Allison’s dedication to repurposing materials has not only resulted in an innovative product but has also contributed to the burgeoning movement toward sustainable living and working spaces. With their collective expertise and a profound understanding of the evolving demands of modern society, they continue to push the boundaries of what’s possible in the realm of adaptable outdoor architecture.
The Product
ootBox is a groundbreaking solution, redefining the concept of outdoor space with its ingeniously designed, eco-friendly, and versatile structure. Crafted from repurposed shipping containers, each 80-square-foot ootBox is meticulously designed to offer a convenient and customizable outdoor experience. Equipped with temperature control and soundproofing features, it provides a comfortable and adaptable environment suitable for a multitude of uses.
The product’s plug-and-play design allows for easy installation, as it can be effortlessly delivered to any desired location and simply plugged into a power source to function. Its versatility lends itself to various applications, serving as an ideal option for backyard offices, pop-up shops, outdoor conference rooms, or any other purpose that demands a well-equipped and customizable outdoor space.
ootBox is available for purchase starting at $20,500, providing an affordable and sustainable solution for those in need of a flexible and private outdoor space. With its innovative features and adaptability, it caters to the evolving demands of the modern world, offering a seamless blend of sustainability, functionality, and aesthetic appeal. As a portable, eco-friendly, and aesthetically pleasing outdoor structure, ootBox presents a compelling option for individuals, businesses, and organizations seeking a customizable and sustainable outdoor solution.
How It Went
The company’s position before Shark Tank
ootBox has exhibited strong performance and robust growth since its inception in June 2020. With a revenue of $950,000 in the current year and a healthy profit margin of approximately 40%, the company has proven its ability to meet the increasing demand for its innovative outdoor solutions. Despite the challenges posed by limited production capacity, ootBox has managed to establish a strong foothold in the market, attracting a diverse clientele ranging from individuals seeking private backyard offices to businesses in need of adaptable pop-up retail spaces or temporary conference rooms.
The company’s success can also be attributed to its strategic partnerships and collaborations with key stakeholders in the sustainable construction and design industry. Leveraging its eco-friendly approach and commitment to repurposing materials, ootBox has established strong relationships with suppliers of upcycled shipping containers, ensuring a steady and reliable source of raw materials for its production. Additionally, the company has fostered partnerships with construction and logistics firms to facilitate the efficient delivery and installation of its products across various locations.
While the company’s current structure remains primarily focused on production and sales, its expansion plans necessitated the pursuit of additional funding to fuel its growth trajectory. To date, ootBox has secured a total of $870,000 in funding, reflecting investor confidence in the company’s innovative business model and sustainable product offerings. With a sound financial position and promising revenue projections, the company is poised for further expansion and market penetration, aiming to capitalize on the increasing demand for adaptable, eco-friendly outdoor spaces in both residential and commercial sectors.
The Negotiations:
The negotiations for ootBox on Shark Tank were marked by a dynamic interplay of different investment offers from the sharks. Initially seeking $300,000 for 5% of the company, the founders faced inquiries about their business model and market potential. While some sharks expressed skepticism about the scalability of the business, others recognized its relevance in the context of the evolving needs for adaptable outdoor spaces, especially during the pandemic.
Barbara Corcoran made an initial offer of $300,000 for 10%, emphasizing her ability to drive business growth and leverage her expertise in scaling ventures. Kevin O’Leary proposed a royalty deal, offering $300,000 in exchange for a $1,000 return for each box sold until he earned $600,000 in returns. Lori Greiner and Mark Cuban expressed interest in investing but raised concerns about the company’s capital constraints and long-term sustainability. However, their proposed equity stakes of 20% did not align with the founders’ expectations.
Amidst the negotiation process, Kevin and Barbara engaged in a playful banter, with Kevin eventually persuading the founders to accept Barbara’s offer. Although Lori and Mark’s offers were considered, the founders ultimately valued Barbara’s expertise and her willingness to support their vision for ootBox. The negotiation process highlighted the importance of a mutually beneficial partnership, with the founders prioritizing an investor who could provide both financial support and valuable industry insights to drive the company’s future growth and expansion.
