Breathometer – Smartphone Breathalyzer
DEAL
EPISODE SUMMARY
🕓 Air Date: September 27, 2013
Asking For:
$250,000 for 10%
Investor:
Lori Greiner, Robert Herjavec, Kevin O'Leary, Daymond John, Mark Cuban (5)
Deal:
$1,000,000 for 30%
PRODUCT SUMMARY
Breathometer offers the world's first smartphone breathalyzer, providing a portable solution for individuals to quickly and accurately measure their breath alcohol level and make informed decisions regarding their ability to drive safely.
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Background Story
Breathometer, headquartered in Silicon Valley, California, was founded by Charles Michael Yim, a seasoned entrepreneur with a background in technology and innovation. Charles, a Silicon Valley veteran, had previously built and sold a successful tech company within 18 months, showcasing his prowess in developing and scaling technology-driven solutions. The idea for Breathometer emerged from Charles’s desire to address the critical issue of drunk driving and promote safer decision-making around alcohol consumption.
Observing the prevalence of alcohol-related accidents and fatalities, Charles recognized the need for a convenient and accessible solution to empower individuals to make informed choices about their ability to drive safely. Drawing on his expertise in coding and technology development, Charles conceptualized the world’s first smartphone breathalyzer. Leveraging the power of smartphone technology, he aimed to create a compact and user-friendly device that could accurately measure breath alcohol levels on the go. By integrating the device with a smartphone app, Charles sought to provide users with real-time feedback on their alcohol consumption and its potential impact on their ability to drive.
Driven by a passion for saving lives and a commitment to leveraging technology for social good, Charles embarked on the journey to bring Breathometer to life. Through meticulous research, development, and testing, he transformed his vision into a tangible product that would ultimately revolutionize the way people approach responsible drinking. Breathometer’s mission became clear: to empower individuals to make smarter and safer decisions, one breath at a time, thereby contributing to the reduction of alcohol-related accidents and fatalities on the roads.
The Product
Breathometer offers a groundbreaking solution for individuals concerned about their alcohol consumption and its potential impact on their ability to drive safely. The product is a compact and portable smartphone breathalyzer that provides users with instant and accurate readings of their breath alcohol levels.
To use Breathometer, users simply retract the audio jack and plug the device into their smartphone. By activating the accompanying app and blowing into the device, users receive real-time feedback on their breath alcohol level within seconds. The app not only displays the current alcohol level but also provides estimates on how long it will take for the user to sober up, offering valuable insights for responsible decision-making.
One of the key benefits of Breathometer is its convenience and accessibility. Its small size allows users to carry it in their pocket or purse, making it ideal for use at parties, bars, or social gatherings. Additionally, the device promotes safety by empowering users to assess their sobriety before getting behind the wheel, potentially preventing drunk driving incidents and ensuring road safety.
Breathometer can be purchased online through the company’s website, with a retail price of $49.99. This competitive pricing makes it an affordable option for individuals looking to prioritize safety and responsibility when consuming alcohol. With its user-friendly interface and reliable performance, Breathometer is poised to become an essential tool for promoting smarter and safer drinking habits.
How It Went
The company’s position before Shark Tank
Breathometer has demonstrated strong performance and positioned itself as a leader in the market for smartphone breathalyzers. Since its inception, the company has experienced rapid growth and garnered significant attention for its innovative product and commitment to promoting responsible drinking. Partnerships play a crucial role in Breathometer’s success. The company has collaborated with technology retailers, online marketplaces, and alcohol safety organizations to expand its reach and distribution network. Additionally, Breathometer has established relationships with wholesalers and distributors to ensure widespread availability of its products in retail stores across the country.
Breathometer’s customer base primarily consists of individuals concerned about their alcohol consumption and interested in maintaining safety while drinking. The product appeals to a wide range of demographics, including young adults, professionals, and parents concerned about their children’s safety. In terms of funding, Breathometer has secured initial capital through a combination of founder investment, angel investors, and crowdfunding campaigns. The successful launch on platforms like Indiegogo provided the company with the necessary resources to scale its operations and bring its product to market.
Breathometer’s revenue growth and market traction indicate a healthy financial position. The company continues to invest in product development, marketing initiatives, and expansion efforts to capitalize on its momentum and solidify its position as a leader in alcohol safety technology. Breathometer’s current structure likely includes dedicated teams for research and development, marketing and sales, customer support, and operations. With a focus on innovation, customer satisfaction, and responsible drinking advocacy, Breathometer is well-positioned for continued success and growth in the years to come.
The Negotiations:
During the negotiations on Shark Tank, Charles Michael Yim, the founder of Breathometer, initially sought $250,000 for a 10% equity stake in his company. Mark Cuban, impressed by the product’s potential in the sensor business, made the first offer of $500,000 for 20% equity. However, Charles was open to exploring other offers and engaged with the other Sharks. Kevin O’Leary then proposed a deal of $250,000 for 15% equity, highlighting that it would result in less dilution compared to Mark’s offer.
This offer prompted Charles to consider his options further. Lori Greiner expressed interest in collaborating with Mark on the retail end, but Mark declined, emphasizing the long-term benefits of his offer over retail considerations. Ultimately, Charles surprised the Sharks by revealing his plan to raise a full $1 million round from Silicon Valley angels within 60 days. He proposed involving multiple Sharks in the investment, leveraging their combined resources and expertise.
This proposal sparked a collaborative effort among all five Sharks, who collectively offered $1 million for 30% equity, with each Shark contributing $500,000. This unprecedented offer demonstrated the Sharks’ confidence in Breathometer’s potential and their willingness to work together to support its growth. Charles accepted the offer, securing the funding needed to propel Breathometer to new heights.
