Dino Don Robotic Dinosaurs
DEAL
EPISODE SUMMARY
🕓 Air Date: May 21, 2021
Asking For:
$500,000 for 10%
Investor:
Mark Cuban
Deal:
$500,000 for 25%
PRODUCT SUMMARY
Dino Don, Inc. creates highly realistic, full-sized robotic dinosaurs for exhibitions and attractions at zoos, museums, and other venues.
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Background Story
Dino Don, Inc. was founded by “Dino” Don Lessem and Val Jones, based in Philadelphia. Don Lessem is a renowned dinosaur explorer and author who has excavated and recreated some of the largest dinosaurs in history. He even had a dinosaur named after him, the Lessemsaurus, and served as a science advisor for “Jurassic Park.” Val Jones is a financial expert with a background in fundraising for nonprofits, zoos, and museums.
The idea for Dino Don, Inc. was born when Don Lessem, a former reporter, was sent on a dinosaur-related assignment and fell in love with the excitement of searching for lost animals and bringing them to life. He later acquired sets and props from “Jurassic Park” to create an exhibit, raising $3 million for research. This venture marked the beginning of his exhibition business.
The Product
Dino Don, Inc. specializes in creating incredibly realistic and life-sized dinosaur robots. These robots are meticulously crafted to resemble the dinosaurs of the past, with details down to their eyes and movements.
These robots are significantly larger than what you typically find in museums, with some reaching up to 110 feet in length. Museums and zoos use these robotic dinosaurs to boost attendance due to the sheer fascination these creatures generate.
Dino Don, Inc. tours groups of these dinosaurs to various venues, bringing the prehistoric creatures closer to the public. The company charges venues to rent the dinosaurs, making it a lucrative venture.
How It Went
The company’s position before Shark Tank
Dino Don, Inc. reported revenues of $1.6 million in the previous year, and despite the challenges posed by the pandemic, they managed to increase their revenues to $1.8 million in the current year. They own a collection of 150 dinosaur robots and the largest collection of fossil skeletons, valuing their assets at $1 million.
The company primarily derives its income from renting out these robots to museums and zoos. They charge a flat fee for their services, but given the current financial constraints faced by these institutions, they are exploring gate-sharing agreements as a way to increase revenue. Dino Don, Inc. is now poised to expand its operations and increase its profitability, aiming for $3 million in sales and a significant boost in profits in the coming year.
The Negotiations:
Mark Cuban, impressed by the potential and marketability of the product, made a bold offer of $500,000 for a 25% stake in the company. His offer was higher than what the founders had initially requested but also came with a larger equity share. After some hesitation and considering the valuable connections and expertise Mark could provide, Dino Don, Inc. accepted Cuban’s offer.
Other Sharks expressed interest in the product but had concerns about the company’s execution plan and their ability to turn it into a defined business. Lori Greiner suggested the importance of presenting a visual plan for marketing their product to venues. Despite some interest, none of the other Sharks made competing offers.
Ultimately, Dino Don, Inc. secured a deal with Mark Cuban, and the partnership promises to take their business to the next level with increased funding, marketing support, and access to potential new markets, such as concert promotion companies. Cuban’s 25% equity share reflects his commitment to investing time and resources into helping the company grow.
