Clean Bottle
DEAL
EPISODE SUMMARY
🕓 Air Date: January 20, 2012
Asking For:
$60,000 for 5%
Investor:
Mark Cuban
Deal:
$60,000 for 8%
PRODUCT SUMMARY
Clean Bottle is a water bottle that unscrews from the bottom as well as the top for easy cleaning, solving the problem of mold and odor build-up in conventional bottles.
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Background Story
Clean Bottle was pitched on Shark Tank by founder Dave Mayer. Frustrated with the inability to thoroughly clean conventional water bottles due to their design, Dave came up with the idea for Clean Bottle. The inspiration struck him when he opened his bottle one day and found it moldy and smelling awful. Realizing the need for a solution, he created a bottle that could be easily disassembled for thorough cleaning, thus preventing mold and odor buildup.
Dave launched the product about a year before the Shark Tank pitch and had to rely on creative marketing strategies due to limited funds. He leveraged events like the Tour de France and the New York Marathon to showcase his product and managed to gain traction in the market.
The Product
Clean Bottle is a uniquely designed water bottle that addresses the common problem of mold and odor buildup in traditional bottles. Unlike conventional bottles, Clean Bottle can be unscrewed from both the top and the bottom, allowing for easy access and thorough cleaning. This design feature ensures that users can maintain hygiene and prevent the accumulation of mold and bacteria, enhancing the longevity of the bottle and ensuring safe drinking water.
The bottle is made from durable materials, making it suitable for daily use and outdoor activities like sports and hiking. It comes with a removable nozzle, further facilitating cleaning and maintenance. Clean Bottle is available for purchase online through the company’s website and is also sold in major retail stores.
Priced at $5 per unit, Clean Bottle offers an affordable solution to a common problem faced by water bottle users. Its innovative design and functionality have garnered attention and positive reviews from customers. The bottle’s versatility makes it suitable for various lifestyles and activities, appealing to a wide range of consumers.
How It Went
The company’s position before Shark Tank
Clean Bottle has demonstrated promising growth since its launch, with sales reaching $750,000 within a year. The company has secured partnerships with major retailers, ensuring widespread availability of its products. Its customer base comprises individuals seeking a convenient and hygienic solution for their hydration needs. In terms of funding, Clean Bottle initially relied on its founder’s investment and generated revenue from sales to sustain operations.
However, to fuel further growth and expansion, Dave sought additional capital through the Shark Tank pitch, ultimately securing a deal with Mark Cuban. With $118,000 in profits over the last 12 months, Clean Bottle has demonstrated its financial viability and potential for scalability. The infusion of $60,000 from Mark Cuban will provide the company with the necessary resources to invest in inventory, marketing, and product development, driving future growth and profitability.
The company is structured to capitalize on its innovative product offering and leverage strategic partnerships to capitalize on market opportunities. With a clear focus on product quality, customer satisfaction, and brand building, Clean Bottle is poised for continued success in the hydration industry.
The Negotiations:
In the Shark Tank, Dave Mayer pitched Clean Bottle, seeking $60,000 for a 5% stake. While Kevin O’Leary offered $100,000 for no equity but with a royalty, Mark Cuban and Robert Herjavec proposed equity deals. Mark offered $60,000 for 8%, valuing the company at $750,000, while Robert offered the same for 5%, valuing it at $1.2 million. Daymond John also made an offer, but Dave was hesitant due to the larger equity stake.
Negotiations continued, with Mark and Robert sticking to their offers. After deliberation, Dave accepted Mark’s offer of $60,000 for 8%, meeting halfway between their initial positions. Despite a tempting higher valuation from Robert, Dave valued Mark’s strategic expertise and connections in the sports world, aligning with Clean Bottle’s target market. This negotiation showcased Dave’s determination to find the right partner, balancing financial considerations with strategic alignment, and ultimately securing a deal to propel Clean Bottle’s success with Mark Cuban’s investment and guidance.
