Games2U
NO DEAL
EPISODE SUMMARY
🕓 Air Date: April 29, 2011
Asking For:
$500,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Games2U is a mobile entertainment company offering unique and interactive entertainment experiences for events and parties, including 4-D movie theaters, mobile video game theaters, and innovative games like Booger Wars.
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Background Story
Games2U, founded by brothers David and Stuart Pikoff, is headquartered in Austin, Texas. The concept for Games2U emerged from David’s experience organizing his son’s birthday party, where he found the traditional entertainment options lacking in excitement and innovation. Recognizing a gap in the market for unique and interactive party experiences, David and Stuart embarked on a mission to revolutionize children’s entertainment.
David Pikoff brings a background in entrepreneurship and event planning to the table, having previously worked on various business ventures. Stuart Pikoff complements his brother’s skills with his expertise in marketing and business development. Together, they leveraged their combined experiences and passion for delivering exceptional customer experiences to create Games2U. Driven by a shared vision to offer unforgettable entertainment experiences, the Pikoff brothers developed Games2U as the first nationally branded mobile entertainment company of its kind.
Their goal was to bring the coolest and most exciting entertainment options directly to customers’ doorsteps, transforming ordinary events into extraordinary experiences. Inspired by their own childhood memories and fueled by their entrepreneurial spirit, David and Stuart embarked on the journey of building Games2U from the ground up. With their innovative approach to entertainment and dedication to customer satisfaction, they have successfully established Games2U as a leading provider of mobile entertainment services, bringing joy and excitement to countless events and parties across the country.
The Product
Games2U offers a diverse range of mobile entertainment options designed to elevate any event or party experience. Their fleet of specialized vehicles is equipped with state-of-the-art technology and innovative features to provide unparalleled entertainment for all ages.
One of their flagship offerings is the 4-D movie theater, where guests can immerse themselves in a cinematic experience enhanced with sensory effects like motion, wind, and even scents. Additionally, Games2U provides mobile video game theaters, allowing guests to enjoy multiplayer gaming on large screens with the latest gaming consoles and titles.
For those seeking unique and engaging activities, Games2U offers interactive games such as Booger Wars and Ubot, where participants can experience thrilling challenges and competitions.
The convenience of Games2U’s mobile entertainment services means they can be booked for various events, including birthday parties, corporate team-building events, school fundraisers, and community gatherings. Pricing typically ranges from $300 to $400 for home birthday parties, with corporate events costing up to a few thousand dollars depending on the specific requirements.
How It Went
The company’s position before Shark Tank
Games2U has demonstrated robust performance and steady growth since its inception, positioning itself as a leading provider of mobile entertainment services. The company’s health is reflected in its expanding franchise network, strong customer satisfaction ratings, and increasing demand for its innovative offerings. With over 140 franchise territories sold in 28 states, Games2U has established a broad presence across the United States, serving a diverse range of customers from families hosting birthday parties to corporations organizing team-building events and schools arranging fundraisers.
Games2U has built strategic partnerships with event planners, venue operators, and corporate clients to expand its reach and enhance its service offerings. By collaborating with these partners, Games2U has been able to access new markets and tap into additional revenue streams, further solidifying its position in the mobile entertainment industry. In terms of funding, Games2U initially relied on a combination of angel investments and personal capital from the founders to launch and grow the business.
The company’s available capital would depend on its current cash reserves, revenue streams, and any external funding sources it may have secured. Overall, Games2U is structured as a franchise organization, with franchisees operating independently within their respective territories under the Games2U brand. This decentralized model allows for scalability and local market adaptation while maintaining consistency in brand identity and service quality across the franchise network.
The Negotiations:
During the negotiations on Shark Tank, the founders of Games2U, David and Stuart Pikoff, sought a $500,000 investment for a 10% equity stake in their company. However, the Sharks expressed skepticism about the company’s valuation of $5 million and raised concerns about the scalability of the business model. Kevin O’Leary made an initial offer of $500,000 for a controlling 51% stake in Games2U. Despite the significant investment offered, David and Stuart rejected the deal, unwilling to relinquish majority control of their company.
They emphasized their proven track record, successful franchise model, and strong customer satisfaction ratings as reasons to maintain control. Other Sharks expressed doubts about the company’s valuation and profitability, with concerns about the need for ongoing investment in product development and the ability to generate substantial returns. While the Pikoff brothers were open to negotiation, they ultimately stood firm on their valuation and ownership terms.
Despite the Sharks’ reservations, the negotiations highlighted Games2U’s impressive growth and market potential. However, the Pikoff brothers decided to walk away from the Tank without a deal, as they were unwilling to compromise on ownership control. This decision reflected their confidence in the company’s trajectory and their commitment to maintaining control over its future direction.
