CO.ALITION Backpack
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 29, 2016
Asking For:
$200,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
CO.ALITION backpacks integrate smart technology into elegantly designed bags, providing a solution for charging devices on the go and featuring an integrated wireless hard drive for storing digital files.
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Background Story
CO.ALITION, founded by Jeff Popp and Casey Lorenzen from Denver, Colorado, emerged from their experience in the pack industry, where they had been involved for six years, particularly with an outdoor technical brand called MHM. While MHM achieved sales of $450,000 in the previous year and totaled $1.2 million in sales, CO.ALITION was born out of the founders’ observation during a business trip to Japan. They noticed the ubiquitous presence of mobile devices and bags among people, inspiring them to create a product that combines functionality and style.
The Product
CO.ALITION backpacks address the modern challenge of staying connected on the move. These backpacks are equipped with a smart technology integration that allows users to charge their devices seamlessly.
The charging system is computerized, with a chip regulating the power output, providing a unique advantage over other portable battery solutions. The bags also feature an integrated wireless hard drive, offering users the ability to store thousands of digital files, such as movies, music, and documents, functioning as a personal cloud service accessible anywhere wirelessly.
The product’s convenience is demonstrated by the ease of recharging the bag, requiring users to simply pull the cord out and plug the pack directly into the wall. CO.ALITION aims to offer a fresh perspective in the competitive market of wearable technology, emphasizing a youthful outlook and a different vision compared to established companies in the industry.
How It Went
The company’s position before Shark Tank
In the seven months since its inception, CO.ALITION has sold almost 500 bags, generating approximately $100,000 in revenue. The founders highlight their focus on direct sales online, relying on word of mouth for marketing without allocating funds for advertising. The existing company, MHM, with last year’s sales at $450,000, serves as the backdrop for CO.ALITION’s emergence. However, CO.ALITION is positioned as a separate brand due to its distinct target customer and vision.
The Negotiations:
Despite the founders’ pitch emphasizing the potential of CO.ALITION, the sharks expressed concerns about the lack of a patent and the competition in the market. The negotiation took an unexpected turn when the founders revealed they had an existing company, MHM, which raised questions about their decision to split their focus between the two ventures. Mark Cuban and Lori Greiner quickly opted out, believing that CO.ALITION was more of a feature than a separate company.
The founders rejected Daymond John’s offer, seeking a strategic partner for both brands. Kevin O’Leary criticized their decision to value the company at $1 million and questioned their ability to protect the product’s uniqueness. Ultimately, all sharks backed out, leaving CO.ALITION without a deal. The founders, while disappointed, appreciated the feedback and remained optimistic about the future of their innovative backpacks.
