Aira – Wireless Charging Solution
DEAL
EPISODE SUMMARY
🕓 Air Date: October 13, 2019
Asking For:
$500,000 for 7%
Investor:
Robert Herjavec, Kevin O'Leary, Lori Greiner (33,3)
Deal:
$500,000 for 15%
PRODUCT SUMMARY
Aira is the world's first free-position wireless charger, utilizing technology inspired by Nikola Tesla, allowing multiple devices to be charged simultaneously in any orientation on a charging surface
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Background Story
Jake Slatnick and Eric Goodchild, hailing from San Diego and Phoenix, respectively, recognized the challenges of traditional wireless chargers requiring precise alignment for effective charging. Leveraging Eric’s expertise in Tesla coils, the duo developed Aira, a revolutionary wireless charging technology based on Nikola Tesla’s century-old principles.
Eric’s extensive experience, including holding a Guinness World Record for constructing a powerful Tesla coil, laid the foundation for Aira. The company operates as a licensing business, providing the electronics module to licensees who can brand it as they wish.
The Product
Aira’s wireless charging technology, inspired by Nikola Tesla, offers a departure from traditional charging pads. Unlike standard chargers with a centralized hotspot, Aira is a charging surface that enables free-position charging. The technology allows users to place multiple devices in any orientation on the surface, ensuring simultaneous charging.
The product can be customized to accommodate various sizes, even extending to charging an iPad and two phones simultaneously. The company’s licensing model allows partners to brand and market the product while utilizing the underlying technology.
How It Went
The company’s position before Shark Tank
Aira already secured its first licensing partner, a major player in the industry, placing an initial order for 33,000 units. This licensing deal is valued between $4 and $10 per unit, with the licensee pre-paying royalties on the entire order. The founders clarified that the electronics module, not the cosmetic example shown, is what they sell to licensees.
The company’s burn rate is currently $30,000 per month, with plans to increase it to $50,000 per month to enhance the engineering team and expedite market entry. Despite having a pre-paid licensing deal, they sought additional funding on the show to meet the increased burn rate.
The Negotiations:
Jake and Eric initially asked for $500,000 for 7%, valuing the company at $7.1 million. However, Mark Cuban dropped out early, expressing concerns about potential competition. Lori Greiner was also cautious about the rapid pace of technological advancements but praised the founders. Robert Herjavec offered $500,000 for 10%, emphasizing the need for a straightforward investment without a loan.
Lori and Kevin O’Leary collaborated, providing an alternative offer of $500,000 at 9% interest as a loan with 15% equity, which they later revised to a straight equity deal. Eventually, Jake and Eric accepted a joint deal from Lori, Robert, and Kevin for $500,000 at 15%, securing the expertise of three sharks for their business. The negotiation showcased the founders’ ability to attract multiple sharks and resulted in a mutually beneficial agreement for both parties.
