Coco Jack
DEAL
EPISODE SUMMARY
🕓 Air Date: March 6, 2015
Asking For:
$125,000 for 10%
Investor:
Mark Cuban
Deal:
$125,000 for 25%
PRODUCT SUMMARY
Coco Jack is a tool designed to safely open young Thai coconuts in a few seconds, eliminating the challenges of traditional methods.
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Background Story
Coco Jack, a venture originating from the bustling streets of New York City, is the brainchild of Dave Goodman. Dave, a multifaceted individual with a diverse array of experiences, embarked on a unique entrepreneurial journey inspired by his passion for raw veganism. Originally from New York City, Dave’s professional journey has been a tapestry of varied interests. Raised with a pre-school education, he pursued classical music at the esteemed Juilliard, specializing in percussion and composition.
His trajectory then took an unexpected turn when, at 14, he underwent a classical music conversion, leading him to California where he delved into economics, mythology, and politics. A licensed private pilot in Colorado, Dave’s experiences reflect a life rich in exploration and diverse learning. The inception of Coco Jack traces back 12 years when Dave, following a friend’s introduction to a raw vegan diet, found himself constantly grappling with the challenge of opening coconuts. As a committed practitioner of this lifestyle, the need for a more efficient solution became apparent.
Dave’s perseverance and ingenuity led to the creation of Coco Jack, a tool designed to open young Thai coconuts swiftly and safely. This unique blend of experiences, from classical music to aviation, converged with a commitment to a healthy lifestyle, culminating in the birth of Coco Jack. Dave’s journey from New York City to the creation of this innovative product encapsulates the spirit of entrepreneurship driven by a fusion of personal passion and problem-solving ingenuity.
The Product
Coco Jack is a revolutionary tool designed to simplify the process of opening young Thai coconuts, offering a seamless and efficient alternative to traditional methods. The user-friendly device ensures a quick and safe coconut-opening experience, catering to individuals of varying sizes and strengths.
The working mechanism of Coco Jack is straightforward. Placed atop a young Thai coconut, the tool requires a few precise hits with a mallet to effortlessly crack open the coconut, eliminating the challenges often associated with traditional cleavers or other methods. The product includes additional value with a stainless-steel scoop tool, facilitating easy extraction of coconut meat.
Coco Jack’s versatility shines as it accommodates users ranging from 4-year-old kids to elderly individuals, making it accessible to a broad demographic. The Coco Jack package includes the tool and the stainless-steel scoop, presented in an eco-friendly burlap sack.
For those interested in purchasing, Coco Jack primarily sells through its website, providing a convenient online platform for customers. Additionally, the product is available at various Asian markets, Mexican/Latino markets, international markets, and select Whole Foods or health food stores.
How It Went
The company’s position before Shark Tank
Coco Jack has demonstrated a commendable performance in its initial stages, showing promising growth and market acceptance. Over the span of 9 months, the company has achieved sales totaling $325,000, primarily through its online platform. The focus on direct-to-consumer sales reflects a strategic approach, enabling the company to establish a direct connection with its customer base. As for partners and wholesalers, Coco Jack has positioned itself in various markets.
The product is available at Asian markets, Mexican/Latino markets, international markets, and select Whole Foods or health food stores. This diverse distribution strategy ensures accessibility and caters to a broad consumer demographic. The company’s funding situation includes an acknowledgment of approximately $13,000 in debt. This debt, while existing, has not impeded the company’s ability to generate sales and innovate its product. Coco Jack’s financial health appears stable, with profits contributing to its overall growth.
In terms of structure, Coco Jack is a dynamic entity led by founder Dave Goodman. While Dave emphasizes creative thinking and outsources aspects he deems less proficient in, the company’s structure benefits from a team of three individuals adept at managing financial aspects, ensuring a balanced approach to business operations. Coco Jack’s performance exemplifies a positive trajectory, with steady sales, a diversified market presence, and a founder-led structure fostering both innovation and financial acumen.
The Negotiations:
The negotiations for Coco Jack unfolded with enthusiasm and a mix of intriguing offers from the Sharks. Founder Dave Goodman entered the tank seeking $125,000 in exchange for a 10% equity stake in his company. The Sharks, known for their shrewd investment strategies, engaged in a lively discussion. Kevin O’Leary was the first to make an offer, proposing $125,000 for a 50% stake. However, he ultimately withdrew his offer, expressing reservations about the market potential for the product. Robert Herjavec and Lori Greiner, while expressing interest, decided not to invest.
The negotiation spotlight then shifted to Mark Cuban, who offered $125,000 structured as convertible debt with a 7% interest rate, aiming for a 25% equity conversion. Mark emphasized alignment and flexibility in this arrangement, highlighting the potential for mutual success. However, Mark’s offer came with a cautionary note from Kevin about the risks associated with convertible debt. As the tension built, Daymond John entered the negotiation scene, presenting an alternative offer of $125,000 structured as convertible debt with a 20% equity conversion.
The negotiations reached a crucial point as Dave deliberated between Mark’s and Daymond’s offers, considering the implications of debt versus equity. In the end, Dave chose to accept Mark Cuban’s offer, securing $125,000 as convertible debt for a 25% equity conversion. The negotiations showcased the Sharks’ diverse approaches to investment, with Mark’s offer ultimately aligning with Dave’s vision for Coco Jack’s future.
