GoGo Gear Motorcycle Riding Apparel
DEAL
EPISODE SUMMARY
🕓 Air Date: March 23, 2012
Asking For:
$300,000 for 15%
Investor:
Daymond John
Deal:
$300,000 for 65%
PRODUCT SUMMARY
GoGo GEAR offers fully protective yet fashionable safety wear for scooter and motorcycle riders, addressing the gap for stylish protective gear in the market.
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Background Story
The founders of GoGo GEAR, Desiree Estrada and Arlene Battishill, found themselves in need of protective gear while commuting to work via scooter. Dissatisfied with the lack of fashionable options available, they decided to take matters into their own hands and create their line of protective wear.
With their backgrounds in corporate management, they pooled their resources and invested nearly $400,000 of their own money into the venture. Despite their lack of experience in the fashion industry, their passion for riding and commitment to safety fueled their determination to fill the gap in the market.
The Product
GoGo GEAR’s product line includes jackets equipped with protective armor in key areas such as the back, shoulders, and elbows, ensuring riders are adequately shielded in case of accidents. Their gear is designed to appeal to riders who prioritize safety without wanting to compromise on style.
Despite operating with minimal overhead costs out of their homes, GoGo GEAR managed to achieve $172,000 in sales the previous year. Their products are currently exclusively available in 25 select motorcycle and scooter stores.
How It Went
The company’s position before Shark Tank
Despite being a relatively new player in the market, GoGo GEAR has shown promising growth potential, with $172,000 in sales the previous year. Operating with a lean team of just two employees, they have managed to secure partnerships with 25 retail stores. Additionally, their focus on expanding into the European market, where they see significant growth opportunities due to a larger pool of registered riders, indicates their ambition to scale their business internationally.
The Negotiations:
Initially asking for $300,000 for a 15% equity stake, GoGo GEAR faced skepticism from the sharks regarding their high valuation of $2 million. Despite receiving counteroffers and attempting to justify their valuation, they ultimately agreed to a deal with Daymond for $300,000 for a 65% equity stake. The negotiation process highlighted concerns over the company’s financial management and strategic focus, but Daymond’s belief in the product’s potential ultimately led to a successful partnership.
