DynoSafe Delivery Lockbox
DEAL
EPISODE SUMMARY
🕓 Air Date: April 2, 2021
Asking For:
$150,000 for 15%
Investor:
Robert Herjavec
Deal:
$150,000 for 25% + 1 board seat
PRODUCT SUMMARY
DynoSafe is a patented smart-home temperature-controlled safe designed for contactless deliveries, providing security for perishable items like groceries, takeout food, and medications.
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Background Story
Rebecca and Eric’s journey to creating DynoSafe was born out of a practical need and a desire to tackle a significant problem. Rebecca, as the owner of a medi-spa business in Dallas, Texas, had firsthand experience with the frustrations and financial losses associated with lost deliveries. Customers often requested specific products, and ensuring their timely and secure delivery was crucial for maintaining the spa’s reputation.
One pivotal moment that catalyzed their idea was a customer’s claim of non-receipt for a delivered product. Faced with the dilemma of a dissatisfied customer, Rebecca had to send a replacement product, which not only eroded profits but also highlighted the vulnerability of the delivery process.
Determined to find a solution that could safeguard essential and perishable items during transit, Rebecca and Eric embarked on a mission to create a product that could alleviate these delivery woes. Their vision was to develop a smart, temperature-controlled safe that could be easily integrated into the delivery process, ensuring that items arrived securely and at the right temperature. This idea ultimately materialized into DynoSafe, a patented innovation aimed at revolutionizing contactless deliveries and providing peace of mind to both consumers and retailers.
The Product
DynoSafe is a game-changing solution for secure and temperature-controlled deliveries. At its core is a user-friendly mobile app that empowers customers to take control of their deliveries like never before. Through this app, users have the ability to assign specific temperature settings to their orders. Whether it’s groceries, takeout meals, or vital medications, customers can customize the conditions in which their items are transported, ensuring freshness and safety.
The centerpiece of DynoSafe is the climate-controlled safe, securely affixed to the porch. This innovative safe serves as a fortress, shielding deliveries from the rigors of external elements. It’s a guardian that maintains the ideal temperature, safeguarding perishable items from damage and spoilage.
One of the most remarkable features of DynoSafe is its real-time notification system. When a contactless delivery is executed, the app immediately notifies the customer, offering reassurance that their delivery has been safely deposited and is being maintained at the precise temperature they specified.
Perhaps the pinnacle of its innovation is the one-click, contactless unlocking and temperature adjustment, a feature meticulously protected by their patent. This unique capability simplifies the delivery process, combining convenience with security. With a simple click, customers can access their deliveries and make temperature adjustments on-the-fly, setting DynoSafe apart as a trailblazer in the world of secure and controlled deliveries.
How It Went
The company’s position before Shark Tank
DynoSafe is currently in the prototype phase, having not yet made any sales of its innovative product. Their strategy revolves around licensing their cutting-edge technology to retailers, with a particular focus on the grocery industry. Rebecca and Eric have taken proactive steps to engage in discussions with significant players in the online retail and grocery sectors, all of whom have shown keen interest in integrating DynoSafe as part of a subscription-based model.
The founders have made a substantial financial commitment to their venture, investing approximately $500,000. These funds have been allocated toward intellectual property (IP) development, engineering, participation in trade shows, and building crucial relationships within the industry. This substantial investment underscores their dedication to bringing DynoSafe to market. To validate the concept, DynoSafe has undergone testing in three homes, spanning locations in Scottsdale and Seattle. These tests provide invaluable data and real-world feedback to refine the product and prepare it for a broader market rollout.
Additionally, the founders have initiated discussions with a distributor who possesses strong ties to a prominent big-box retailer. These conversations present a promising avenue for the widespread adoption of DynoSafe’s technology, potentially positioning it as a game-changer in the world of secure and temperature-controlled deliveries. While the company is in its early stages, it holds significant promise for transforming the way essential and perishable items are delivered and safeguarded.
The Negotiations:
During the negotiations on “Shark Tank,” the founders of DynoSafe faced a challenging decision-making process as they sought investment to propel their innovative product to the next level. Three sharks decided to opt out of the deal, expressing concerns about the technology’s competitiveness and the need for substantial control. However, Robert Herjavec stepped in with an offer that caught the founders’ attention.
He proposed investing $150,000 in exchange for a 25% equity stake in DynoSafe, alongside the additional condition of creating a board of directors. Robert’s primary objective was to secure a controlling interest in the company, recognizing the potential of the patent and the demand for a secure delivery solution. On the other hand, Kevin O’Leary presented an alternative offer. He also offered $150,000 but asked for a higher equity share of 40%. O’Leary’s approach emphasized the binary nature of the investment, acknowledging the inherent risks but offering a larger stake in return.
After careful consideration, the founders opted for Robert Herjavec’s offer, agreeing to the $150,000 investment in exchange for 25% equity. They recognized the value of Robert’s expertise in the tech industry and his dedication to making DynoSafe a success. Additionally, they were comfortable with the idea of creating a board of directors, understanding the need for strategic guidance and governance as they moved forward. The negotiation process was a pivotal moment for DynoSafe, securing the necessary funding and expertise to advance their groundbreaking product towards a brighter future in the world of secure and temperature-controlled deliveries.
