BearTek Smart Gloves
NO DEAL
EPISODE SUMMARY
🕓 Air Date: February 5, 2016
Asking For:
$500,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Beartek transforms any glove into a convenient, safe, and accurate remote control, allowing users to control devices such as smartphones, action cameras, and military-grade equipment.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Beartek, founded by Willie Blount from Columbia, Maryland, and led by CEO Tarik Rodgers from Dallas, Texas, was born out of the founders’ shared love for the outdoors and the challenges they faced when trying to control devices while wearing gloves. Willie, with a background in aviation electronics from his time in the Marine Corps, and Tarik, with a career in Fortune 500 companies and startups, joined forces to address the problem of controlling music and devices while engaging in outdoor activities. The idea was sparked by their personal experiences – Willie faced challenges controlling music while riding his motorcycle, and Tarik encountered similar issues while skiing.
The Product
Beartek gloves utilize a high-tech system with six touchpoints that can be activated by tapping the thumb and index finger together. The gloves come with a Beartek sync module that is plugged into a pocket on the back of the glove.
The touch points on the glove allow users to control various actions, such as adjusting volume, changing songs, answering/rejecting calls, and more. The technology extends beyond music control, aiming to be a versatile solution for operating devices ranging from consumer action cameras to military-grade equipment. The gloves are positioned as not just a product but a technology company with a vision to power all gloves with Beartek.
How It Went
The company’s position before Shark Tank
Beartek started by launching gloves to prove the concept and garnered interest from major brands at trade shows. In the initial 15 months, they conducted a pilot and sold about 1,500 units, generating $200,000 in sales. The gloves are priced between $200 and $275. Tarik, having invested $500,000 of his own money, highlighted his background in startups and the duo’s ability to bootstrap the venture.
They emphasized that they are currently in the glove-selling business as a proof of concept and have broader plans beyond just selling gloves. The founders mentioned that major retailers have started carrying their product, and they have received interest from military companies looking to integrate Beartek technology for controlling various devices used in military operations.
The Negotiations:
The Sharks were intrigued by the product’s potential but expressed reservations about the $10 million valuation. The founders defended the valuation by emphasizing the opportunity in both consumer and military markets. However, the Sharks felt the valuation was too high for a company primarily focused on gloves. Mark Cuban and Daymond John were the first to drop out, expressing concerns about the valuation and the risk/reward profile.
Lori Greiner followed suit, citing uncertainty about the company’s direction and potential. Robert Herjavec questioned the valuation and asked for a clear plan to move beyond the glove business. Ultimately, no deal was made as the Sharks felt the founders hadn’t sufficiently demonstrated how they would transition from being a glove company to a broader technology company. Despite some interest in the product’s potential, the high valuation and uncertainty about the company’s future direction led to the Sharks opting out of an investment.
