Extreme Vehicle Protection – Flood Protection Bag for Cars
DEAL
EPISODE SUMMARY
🕓 Air Date: May 13, 2016
Asking For:
$50,000 for 20%
Investor:
Daymond John
Deal:
$50,000 for 33.3%
PRODUCT SUMMARY
EVP offers a protective solution for vehicles during floods with a waterproof and flood-proof cover, likened to a "car condom."
WATCH HERE
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Background Story
Kenny Lerner, a graphic artist with 20 years of experience, teamed up with Matthew Harris, previously a repo man, to address the need for protecting vehicles during floods. The idea stemmed from witnessing the increasing frequency of floods worldwide and the lack of preparedness for safeguarding cars. Kenny’s background in graphic arts and Matthew’s experience in repossessions led them to develop EVP.
Kenny had transitioned from repo work due to the economic impact on middle-class individuals, which prompted him to seek a more positive venture. The founders aimed to fill the gap in vehicle protection during floods, drawing inspiration from the devastation caused by events like Hurricane Sandy.
The Product
EVP is a protective cover for vehicles during floods, acting as a waterproof and flood-proof shield. Priced between $250 and $350, the cover is designed to provide a quick and efficient solution for safeguarding cars during extreme weather conditions. The product is demonstrated by enclosing a car within the cover, essentially creating a protective barrier.
The founders highlight its ease of use, emphasizing that it can be deployed in situations where moving the vehicle to higher ground is impractical. The cover is compared to a “car condom” for its protective functionality. The founders stress its effectiveness in preventing flood damage, particularly in areas prone to such disasters. The price point ranges based on the size of the cover required for different vehicles.
How It Went
The company’s position before Shark Tank
The founders pitched the product on “Shark Tank” seeking $50,000 for 20% equity. They mentioned that the entire project was coordinated for the show, indicating a pre-sale strategy. Sales figures were not thoroughly discussed, but they claimed to have sold 150 units in a short period, achieving a quick cash flow. The founders emphasized the potential market, citing instances like Hurricane Sandy where a product like EVP could have seen high demand. However, the Sharks raised concerns about scalability and the long-term viability of the business. The lack of a substantial sales history and uncertainty about future growth seemed to influence the Sharks’ decision not to invest.
The Negotiations:
The negotiation phase saw Kevin O’Leary making an offer of $50,000 in exchange for a $30 royalty per unit sold, essentially asking for a perpetual 30% stake in the profits. Daymond John followed with a more traditional equity offer, proposing a $50,000 investment for a one-third ownership share of the company. The negotiation took an unexpected turn when Robert Herjavec proposed an investment of $50,000 with the condition that he exit the deal once he recoups $200,000.
Mark Cuban raised concerns about the long-term implications of such a deal, stating that a real partner is needed beyond the initial injection of funds. Despite alternative offers from O’Leary and John, the founders decided to accept Daymond John’s offer to continue with their business, citing a preference for their roots in Brooklyn.
