Float ‘N’ Grill Floating Grill
DEAL
EPISODE SUMMARY
đź•“ Air Date: May 14, 2021
Asking For:
$100,000 for 20%
Investor:
Daniel Lubetzky
Deal:
$100,000 for 22.5% equity + $100,000 loan at 7% interest + 50% licensing deal
PRODUCT SUMMARY
Float’N’Grill is a floating grill designed for use on the water, allowing users to enjoy cooking while in the lake or at the beach.
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Background Story
Float’N’Grill is a Michigan-based company founded by Mike Bashawaty and Jeremy Quillico. The company’s journey began when these two avid sandbar and lake enthusiasts wanted a way to enjoy hot, freshly grilled food while spending time in the water.
Their desire to elevate the on-the-water dining experience led them to create the innovative Float’N’Grill. Situated in Plymouth, Michigan, the founders have deep roots in the local community and a passion for outdoor activities, making them intimately familiar with the needs and preferences of their target market.
The Product
Float’N’Grill is a groundbreaking invention that provides an ingenious solution for those who love water and great food. This product is the world’s first and only floating grill, designed to enable users to cook while immersed in the water.
It boasts a unique and patented design with a special weight displacement system to prevent capsizing. The grill is easy to use and lightweight, making it perfect for anyone who enjoys water-based recreation and doesn’t want to miss out on delicious grilled dishes.
Retailing at $229, Float’N’Grill offers an outstanding way to cook up to eight burgers simultaneously with its powerful 1,200 BTU burner.
How It Went
The company’s position before Shark Tank
Float’N’Grill had garnered total gross sales of $19,400 within just a year and a half of its launch, without any formal marketing efforts. The founders highlighted their deliberate strategy of not investing in marketing and instead relying on organic growth, underlining the potential for substantial growth with a focused marketing campaign.
With two other investors holding 10% and 20% stakes in the company from a previous investment round, Float’N’Grill’s valuation stood at $300,000. The founders were seeking $200,000 in exchange for 20% equity during their appearance on Shark Tank, aiming to secure additional capital for expansion and marketing efforts to tap into the product’s viral potential.
The Negotiations:
The pitch on Shark Tank sparked lively negotiations. Daniel Lubetzky initially offered $200,000 for 50% equity, a proposition that the founders deemed too steep. Kevin O’Leary expressed reservations about the product’s market demand, citing its low sales figures. Mark Cuban suggested exploring a licensing deal with a major grill company but was countered by the founders, emphasizing the strength of their patent.
Ultimately, the founders struck a deal with Daniel Lubetzky, accepting his offer of $100,000 for 22.5% equity, a $100,000 loan at 7% interest, and 50% of any licensing deals he helps secure. The negotiation process highlighted the challenges of valuing a product with promising viral potential but modest initial sales, ultimately leading to a mutually beneficial agreement for Float’N’Grill and their new partner, Daniel Lubetzky.
