Brake Free – Motorcycle Helmet Brake Light
DEAL
EPISODE SUMMARY
🕓 Air Date: December 11, 2020
Asking For:
$200,000 for 10%
Investor:
Robert Herjavec, Mark Cuban (50/50)
Deal:
$200,000 for 20%
PRODUCT SUMMARY
Brake Free is a helmet-mounted brake light for motorcycles that improves rider visibility by lighting up brightly when the rider slows down, enhancing safety on the road.
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Background Story
Brake Free Technologies, founded by Alex and Henry, aimed to address the critical issue of motorcycle safety. Both founders are passionate motorcycle enthusiasts, and Alex, being a husband and father of two young daughters, was particularly motivated to make riding safer. They recognized that motorcycle accidents could have life-altering consequences for riders and other road users. Their product, Brake Free, was born out of a desire to enhance rider visibility and prevent accidents.
The founders developed Brake Free, an innovative helmet-mounted brake light, to address this problem. Their background in technology and riding experience led them to create a product that mounts at eye level, ensuring all drivers can see motorcyclists when they slow down. The device uses sensors to detect deceleration, activating its bright lights. With a utility patent in hand, they introduced Brake Free to the market.
The Product
Brake Free is a groundbreaking safety device for motorcycle riders. It attaches easily to the back of the rider’s helmet, mounting at eye level for maximum visibility to other motorists. The device uses advanced sensors to detect any deceleration, whether from braking, engine braking, or down-shifting, and responds by lighting up brightly.
One of the product’s key advantages is its simplicity. There’s no need to wire it to the motorcycle or install any apps. It’s powered by a long-lasting rechargeable battery and can be activated with a simple on/off switch.
Brake Free not only enhances rider safety but also adds a touch of style to the riding experience. It is designed to be compatible with a wide range of helmets, making it accessible to a broad audience of motorcycle enthusiasts.
How It Went
The company’s position before Shark Tank
At the time of their “Shark Tank” pitch, Brake Free Technologies had generated $240,000 in sales through Indiegogo, primarily consisting of pre-orders. Their cost per unit was $42, and they were on the brink of shipping their product to customers. The $200,000 investment they sought was intended to build inventory for the upcoming market launch.
The founders mentioned their connections in the motorcycle industry, including engagements with Ducati and Harley Canada. They aspired to expand into dealerships and had ambitious plans for scaling their business. The investment from the Sharks would play a pivotal role in achieving these goals, tapping into economies of scale, and leveraging the expertise of Mark Cuban and Robert Herjavec.
The company’s structure and funding sources beyond the “Shark Tank” pitch were not detailed in the transcript, but it can be inferred that they were in the early stages of building their business and seeking strategic partnerships to drive growth.
The Negotiations:
The negotiations for Brake Free Technologies saw Mark Cuban and Robert Herjavec making an offer of $200,000 for a 20% equity stake, which was ultimately accepted by the founders. Lori Greiner expressed initial interest but was concerned about potential liabilities associated with the product and decided to pass.
Mark Cuban and Robert Herjavec presented a compelling case for their involvement, emphasizing their expertise in both the motorcycle industry and the world of startups. They highlighted their connections, with Robert mentioning his close ties to the motorcycle culture and Mark showcasing his successful experiences in safety-related businesses.
In a humorous twist, Mark Cuban playfully insisted that if the founders accepted his offer, he would ride with them and even made a condition that Robert had to hug him while riding. Ultimately, the founders enthusiastically accepted the deal with Mark and Robert, expressing their excitement at securing their ideal partners for the company’s growth.
