EmazingLights
DEAL
EPISODE SUMMARY
🕓 Air Date: March 13, 2015
Asking For:
$650,000 for 5%
Investor:
Daymond John, Mark Cuban
Deal:
$650,000 for 5% equity + 20% of any licensing deals from Daymond
PRODUCT SUMMARY
EmazingLights offers a customizable glove set called eLITE Chroma for gloving, a dance craze known for its light shows set to electronic dance music.
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Background Story
Brian Lin, the visionary founder and CEO of EmazingLights, has woven a compelling narrative of entrepreneurship rooted in his upbringing and passion for innovation. Born out of a family that immigrated to the United States from China to escape communism, Brian’s formative years were shaped by the hard work and dedication of his parents, who toiled for 18-hour days. EmazingLights, the brainchild of Brian, emerged from humble beginnings. With a mere $100 investment, he embarked on a journey that led to the creation of a revolutionary product in the realm of entertainment and expression.
The company is not only a testament to his entrepreneurial spirit but also a reflection of his desire to share something unique with the world. The spark for EmazingLights ignited when Brian’s girlfriend introduced him to the world of gloving, a dance phenomenon that involves intricate light shows synchronized with electronic dance music. Enamored by the crowd-pulling effect of his first light show, Brian envisioned bringing gloving to a wider audience. The journey wasn’t without its challenges. Brian bootstrapped EmazingLights, utilizing profits wisely and even expanding into a related venture, iHeartRaves.
The EmazingLights product, particularly the eLITE Chroma glove set, symbolizes Brian’s commitment to innovation and creating a niche market. The customizable glove set represents the culmination of Brian’s dedication and strategic thinking, propelling EmazingLights into the forefront of the global gloving market. Situated at the intersection of entrepreneurial grit, cultural diversity, and a passion for unconventional self-expression, EmazingLights is not just a company; it’s a manifestation of Brian Lin’s journey, resilience, and unwavering commitment to sharing the transformative power of gloving with the world.
The Product
EmazingLights’ flagship product, the eLITE Chroma glove set, stands at the forefront of the gloving movement, offering enthusiasts a mesmerizing platform for self-expression. These gloves feature state-of-the-art LED technology, allowing users to create dazzling light shows synchronized to the beats of electronic dance music.
The eLITE Chroma glove set empowers users to customize their performances with up to 50 modes and a palette of 20 vibrant colors. Its programmability is a key differentiator, enabling users to tailor their light shows to their unique artistic preferences. The gloves range from $20 for entry-level models to $120 for the premium eLITE Chromas, where the higher price unlocks advanced programmability and customization options.
Beyond the dance floor, the eLITE Chroma glove set has found a home in various subcultures, expanding from the EDM scene to encompass genres like hip-hop. The product not only serves as a tool for artistic expression but also fosters a sense of community and competition with the emergence of gloving as a professional sport.
How It Went
The company’s position before Shark Tank
EmazingLights has positioned itself as a dominant player in the gloving market, boasting a robust financial performance and strategic expansion initiatives. Since its inception four years ago, the company has achieved remarkable success, grossing over $13 million in sales. The visionary founder and CEO, Brian Lin, strategically leveraged profits from EmazingLights to create iHeartRaves, a related venture specializing in providing wild and unconventional apparel to festival-goers. iHeartRaves has also demonstrated impressive growth, projecting sales of $2.5 million for the current year.
The company primarily operates online, with approximately 90% of sales conducted through its e-commerce platform. EmazingLights’ products, especially the eLITE Chroma glove set, have garnered a diverse customer base, transcending the EDM scene and expanding into genres like hip-hop. The product’s universal appeal is evident in its ability to attract enthusiasts across various subcultures. EmazingLights has strategically collaborated with over 20 factories overseas, establishing strong connections for design, tooling, and prototyping. This extensive network enables the company to maintain competitive pricing and high-quality products.
EmazingLights has successfully navigated the global gloving market, claiming an impressive 80% share. In terms of funding, the company’s growth has largely been fueled by its own profits, showcasing Brian Lin’s adept entrepreneurial skills in resource management. The profitability of EmazingLights is evident in its ability to bootstrap and expand into a related venture without relying heavily on external funding. The company’s current financial health is robust, with projections of $5.5 million in sales for the ongoing calendar year.
The Negotiations:
The negotiation for EmazingLights in the Shark Tank was a dynamic and strategic process, reflecting the Sharks’ interest in the unique gloving industry. Brian Lin entered seeking $650,000 for 5% equity in the company, presenting the eLITE Chroma glove set as a groundbreaking product within the gloving movement. The negotiations began with a dazzling light show, setting the stage for Mark and Daymond’s initial offer of $650,000 for 5% equity and a 20% commission on licensing deals that Daymond could secure. This offer emphasized Daymond’s expertise in licensing and strategic partnerships.
Robert and Lori, recognizing the potential of EmazingLights, countered with a $1 million offer for 5% equity. Mark and Daymond then revised their offer to $650,000 for 5% equity, with Mark taking a strategic role and Daymond earning a 20% commission on licensing. In a surprising turn, Robert and Lori further adjusted their proposal, expressing a desire to be part of Brian’s team. They offered $1 million for 5% equity, emphasizing their commitment to actively support and guide EmazingLights’ growth.
Brian faced a critical decision between the two compelling offers. Mark and Daymond represented strategic expertise, with Daymond focused on licensing, while Robert and Lori brought a blend of retail and QVC experience. In the end, Brian chose Mark and Daymond’s offer, valuing their unique strengths and strategic involvement. The deal was sealed at $650,000 for 5% equity, with Mark taking a strategic role and Daymond overseeing licensing opportunities. The negotiation showcased the Sharks’ recognition of EmazingLights’ potential and Brian’s ability to secure a deal that not only brought in investment but also strategic guidance for the company’s future growth.
