Driftline Boardshorts
NO DEAL
EPISODE SUMMARY
🕓 Air Date: May 13, 2022
Asking For:
$100,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Driftline offers Drifties, a two-in-one board short with a patent-pending wetsuit liner designed for water sports enthusiasts to provide comfort, warmth, and chafe protection.
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Background Story
Driftline, headquartered in the heart of the vibrant water sports scene in San Diego, California, embodies the shared passion and dedication of its co-founders, Wes and Greg, toward transforming the water sports apparel landscape. Wes, leveraging his background in graphic design and marketing, immersed himself in night classes to hone his skills further, fueling his creative drive and vision for the brand. Meanwhile, Greg’s astute financial acumen, coupled with his extensive experience in the tech and marketing sales sector, provided a solid foundation for the company’s strategic development and growth trajectory.
The inception of Drifties, the company’s groundbreaking flagship product, can be traced back to an insightful dawn patrol surf session along the breathtaking California coastline. Confronted with the discomfort of dealing with the challenging transitional water temperatures, which neither traditional wetsuits nor regular board shorts adequately addressed, Wes and Greg were inspired to create an innovative solution. Discontent with the existing options available in the market, they embarked on a mission to revolutionize the water sports apparel industry by developing a product that seamlessly merged the comfort of board shorts with the warmth and protection of a wetsuit.
Through a rigorous and meticulous testing process in diverse global water sport environments, coupled with extensive collaboration with manufacturers to perfect the product’s materials and design, Wes and Greg brought their visionary creation, Drifties, to fruition. The bustling coastal city of San Diego, renowned for its rich surf culture and vibrant water sports community, served as an ideal breeding ground for the innovative spirit of Driftline, fostering an environment of relentless innovation and commitment to revolutionizing the water sports apparel sector.
The Product
Driftline’s flagship product, Drifties, stands as a pioneering solution for water sports enthusiasts seeking enhanced comfort and performance. Designed as a two-in-one board short, Drifties seamlessly combine a patent-pending wetsuit liner with a stylish outer shell, ensuring optimal functionality and style.
The neoprene wetsuit liner, a key feature of Drifties, serves to maintain warmth and provide protection, effectively eliminating the discomfort caused by transitional water temperatures. This unique combination allows users to enjoy the benefits of both a traditional board short and a wetsuit, making it an ideal choice for activities such as surfing, paddleboarding, kayaking, and various other water sports.
Crafted with meticulous attention to detail and functionality, Drifties have been rigorously tested by a diverse range of water-sport athletes across the globe, attesting to their durability and performance in extreme conditions. The product’s cloud-like wetsuit liner ensures not only warmth but also chafe protection, addressing a common issue faced by water sports enthusiasts.
Drifties are available for purchase directly from the company’s website, with a retail price of $89 per pair. The user-friendly online platform enables customers to easily select their preferred size and style, making the purchasing process streamlined and convenient. With its innovative design, enhanced functionality, and proven performance, Drifties stand as a testament to Driftline’s commitment to revolutionizing water-sports apparel.
How It Went
The company’s position before Shark Tank
Driftline has demonstrated promising growth and a strong market presence within the water-sports apparel industry. Primarily operating as a direct-to-consumer brand, the company has established a robust online platform, allowing it to effectively reach its target audience. With a notable emphasis on product development and customer engagement, Driftline has successfully generated $125,000 in sales year-to-date, showcasing a significant increase from its previous year’s sales of $100,000.
The company’s strategic approach to marketing has been efficient, with a prudent allocation of approximately $10,000 for marketing efforts in the previous year. This focused spending has contributed to a steady increase in brand awareness and customer acquisition, further solidifying Driftline’s position within the water-sports apparel market. While Driftline operates primarily as a direct-to-consumer brand, it has also strategically considered potential partnerships for future expansion. As for funding, the company’s current financial structure relies on its initial investment, generated revenue, and potential future investments.
Driftline’s solid sales performance has facilitated the company’s financial stability, allowing it to allocate resources towards research and development initiatives aimed at product enhancement and expansion. With a prudent approach to managing costs and reinvesting profits into research and development, Driftline maintains a steady trajectory towards achieving long-term sustainability and growth within the water-sports apparel market. The company remains well-positioned to further scale its operations and strengthen its market presence through strategic partnerships, innovative product offerings, and an unwavering commitment to delivering high-quality and functional water-sports apparel to its diverse customer base.
The Negotiations:
During the negotiations on the “Shark Tank” show, the founders of Driftline, Wes and Greg, sought a $100,000 investment for 10% equity in their company. While the Sharks acknowledged the innovation and quality of the product, concerns were raised about the scalability of the business and the potential market size. The negotiation process saw various Sharks expressing interest in the product but ultimately backing out due to reservations about the company’s growth potential.
Several Sharks, including Mark Cuban and Lori Greiner, expressed doubts regarding the market’s scale, leading them to decline the opportunity. Robert Herjavec, recognizing the value of the product and the potential for expansion, offered $150,000 for a significant 33% equity stake, emphasizing the need for accelerated growth and a faster-paced business approach. However, the founders hesitated to part with such a substantial share of their company and attempted to negotiate for a lower equity percentage.
Despite a few rounds of negotiation, the offers on the table did not align with the founders’ expectations, and they ultimately declined the deals. While the Sharks recognized the potential of the product, the founders prioritized maintaining a larger stake in their company, highlighting their dedication to their vision and the company’s long-term success. The negotiation process showcased the challenges of balancing investment opportunities with the founders’ desire to retain control and ownership of their innovative venture.
