Freeloader – Child Carrier Backpack
DEAL
EPISODE SUMMARY
🕓 Air Date: October 4, 2013
Asking For:
$200,000 for 15%
Investor:
Robert Herjavec
Deal:
$200,000 for 33%
PRODUCT SUMMARY
The Freeloader is an ultra-sleek child carrier designed to alleviate the burden of carrying tired children during outings. It features an integrated frame with a fold-down seat capable of holding up to 80 pounds, along with a 5-point safety harness for security.
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Background Story
The Freeloader, based in Austin, Texas, was founded by Erick and Nathan, both seasoned firefighters. Their shared experience in navigating challenging situations as first responders inspired them to innovate solutions beyond their profession. The idea for The Freeloader emerged during personal experiences when Erick and Nathan, both fathers, faced the common dilemma of carrying their tired children during outings. Reflecting on their own struggles and those of fellow parents, they recognized the need for a more practical and comfortable child carrier.
Drawing on their expertise in handling heavy equipment and their deep understanding of safety protocols, Erick and Nathan embarked on a journey to develop a revolutionary child carrier. They aimed to create a product that would not only alleviate the physical strain on parents but also enhance the overall experience of spending time outdoors with children. Their vision was to design a carrier that combined functionality with comfort, allowing parents to enjoy extended outings without the burden of carrying their children.
Motivated by their passion for both parenthood and innovation, Erick and Nathan poured their energy into refining their concept and bringing it to life. They conducted rigorous research and testing to ensure that The Freeloader met the highest standards of safety and durability. Through dedication and perseverance, they transformed their initial idea into a sleek and practical product that resonated with active families seeking convenience and comfort. The Freeloader represents not only a solution to a common parenting challenge but also the culmination of Erick and Nathan’s commitment to improving the lives of parents and children alike.
The Product
The Freeloader is an innovative child carrier designed to provide comfort and convenience for parents during outdoor activities. Featuring an integrated frame and a fold-down seat capable of supporting up to 80 pounds, it offers a practical solution for carrying tired children on-the-go. The carrier includes a 5-point safety harness to ensure the child’s security and stability during use.
Utilizing cutting-edge hiking pack technologies, The Freeloader evenly distributes weight across the wearer’s shoulders and hips, minimizing strain and discomfort during extended outings. Its sleek and lightweight design makes it suitable for various activities, from running errands to exploring amusement parks.
Parents can purchase The Freeloader through various channels, including online platforms and retail stores. While specific pricing details were not provided during the pitch, the product is expected to offer excellent value for its functionality and durability.
The benefits of The Freeloader extend beyond convenience, providing parents with the freedom to enjoy outdoor adventures with their children without the limitations of fatigue or discomfort. Its versatility and safety features make it a must-have accessory for active families seeking to enhance their outdoor experiences while ensuring the well-being of their little ones.
How It Went
The company’s position before Shark Tank
The Freeloader has demonstrated promising performance and is positioned for growth in the child carrier market. The company has successfully raised over $40,000 through a crowdfunding campaign, indicating strong consumer interest and support for its product. This initial funding has enabled The Freeloader to kickstart production and begin fulfilling orders. The company has not disclosed any formal partnerships or wholesaler relationships during the pitch. However, given the positive reception of their product at events like the kite festival in Austin, there is potential for future collaborations with retailers and distributors to expand their reach.
The primary target customers for The Freeloader are active parents seeking practical solutions for carrying their children during outdoor activities. By catering to this niche market segment, the company has identified a demand for its product and has garnered attention from potential buyers through direct sales and marketing efforts. In terms of funding, The Freeloader relies on crowdfunding proceeds and potentially further investments from partners or investors to fuel its growth and expansion. The available capital from these sources is likely allocated towards manufacturing costs, operational expenses, and marketing initiatives aimed at increasing brand awareness and driving sales.
As for the company’s structure, Erick and Nathan, the founders, are likely the key decision-makers and driving forces behind The Freeloader’s operations. Given their background as firefighters and their hands-on approach to product development, they are likely involved in all aspects of the business, from product design and manufacturing to sales and marketing strategies. As the company continues to grow, it may consider expanding its team and organizational structure to support its evolving needs and objectives.
The Negotiations:
During the negotiations on Shark Tank, the founders of The Freeloader, Erick and Nathan, faced both skepticism and interest from the Sharks. While the product received praise for its innovation and potential market appeal, concerns were raised regarding its weight, design, and safety implications. Robert Herjavec recognized the product’s potential and made an offer of $200,000 for one-third equity, which was accepted by Erick and Nathan.
Despite initial objections from other Sharks about the product’s readiness for market and the need for further testing and refinement, Robert’s confidence in the product’s appeal to dads and his willingness to navigate challenges resonated with the founders. The negotiation highlighted the importance of assessing market readiness and addressing potential concerns regarding product design, safety, and scalability. While some Sharks expressed reservations about the product’s viability and market potential, Robert’s offer provided validation and support for the founders’ vision.
Ultimately, the negotiation concluded with Erick and Nathan securing a partnership with Robert Herjavec, leveraging his expertise and resources to further develop and market The Freeloader. The negotiation process underscored the significance of finding the right partner who shares the founders’ vision and can help navigate the complexities of bringing a new product to market.
