Hy-Conn Water Hose Connector
DEAL
EPISODE SUMMARY
🕓 Air Date: May 6, 2011
Asking For:
$500,000 for 40%
Investor:
Mark Cuban
Deal:
1,250,000 for 100% of the company, plus a 3 year work agreement, and 7.5% royalty
PRODUCT SUMMARY
HyConn is a rapid connect and disconnect system for fire hydrants, designed to drastically reduce the time it takes to supply water to the fire scene, potentially saving lives.
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Background Story
Jeff Stroope, a dedicated fire brigade captain and maintenance supervisor residing in Cabot, Arkansas, found himself at a crossroads during his 15-year tenure in the firefighting industry. Witnessing firsthand the inefficiencies and critical delays in supplying water to fire scenes, he realized the urgent need for innovation in this essential aspect of firefighting. Living in a small town where every second mattered in emergencies, Stroope felt compelled to find a solution. Driven by his passion for firefighting and a desire to make a meaningful difference, Stroope embarked on a journey to develop a groundbreaking product that could revolutionize the industry.
Balancing his full-time responsibilities as a fire captain with his dedication to improving firefighting practices, Stroope poured countless hours into researching, designing, and prototyping what would eventually become HyConn. Drawing on his extensive experience in firefighting operations and maintenance supervision, Stroope meticulously analyzed the challenges faced by firefighters when connecting hoses to hydrants. Through his dedication and ingenuity, he conceived the idea for HyConn—a rapid connect and disconnect system that could drastically reduce the time it takes to establish water supply at fire scenes.
Stroope’s journey with HyConn was not without sacrifices. Working tirelessly during weekends and evenings, he dedicated over a decade of his life to perfecting the product, driven by a deep-seated commitment to improving emergency response times and potentially saving lives. His unwavering determination and relentless pursuit of innovation led him to present his groundbreaking invention on Shark Tank, seeking the support and resources needed to bring HyConn to firefighters across the nation.
The Product
HyConn is a revolutionary rapid connect and disconnect system designed to streamline the process of supplying water to fire scenes. Its innovative design enables firefighters to establish water supply from fire hydrants in a fraction of the time compared to traditional methods.
The HyConn system consists of specially designed connectors that easily attach to fire hydrants and hoses, allowing for quick and secure connections. Unlike conventional fittings that require tedious threading and tightening, HyConn can be engaged and disengaged in seconds, significantly reducing response times during emergencies.
The benefits of HyConn extend beyond its speed and efficiency. Its intuitive design minimizes the risk of leaks and ensures a reliable water supply to firefighters battling blazes. With HyConn, firefighters can focus more on extinguishing fires and less on grappling with cumbersome hose connections.
HyConn is available for purchase directly from the company’s website and through select distributors. The product comes in two sizes, catering to various firefighting equipment setups. Prices range from $215 for the smaller connector to $385 for the larger version, making it a cost-effective investment for fire departments seeking to enhance their firefighting capabilities.
How It Went
The company’s position before Shark Tank
HyConn LLC has made significant strides in its journey to revolutionize firefighting practices with its innovative rapid connect and disconnect system. Despite being a relatively young company, HyConn has garnered substantial interest from fire departments across the United States, with several departments already providing purchase orders and others in the process of finalizing paperwork. This indicates a strong demand for the product and underscores its potential to make a significant impact on emergency response times.
As for partners and wholesalers, HyConn has established relationships with distributors in the firefighting equipment industry who are eager to incorporate the product into their offerings. These partnerships provide access to a wider market and facilitate the distribution of HyConn to fire departments nationwide. HyConn’s primary customers are fire departments and emergency response agencies seeking to enhance their firefighting capabilities. The product’s reliability, ease of use, and ability to significantly reduce response times make it an attractive investment for these organizations.
In terms of funding, HyConn is currently seeking $500,000 to support manufacturing and distribution efforts. While the company has made sales to several fire departments, additional capital is needed to scale operations and meet growing demand. The company’s financial position is stable, with a clear path to profitability as sales continue to grow. HyConn LLC is structured as a privately held company, with Jeff Stroope serving as the owner and founder. Stroope’s background in firefighting and maintenance supervision has been instrumental in guiding the company’s development and strategy.
The Negotiations:
The negotiations on Shark Tank for HyConn LLC were intense and marked by competing offers from the sharks, each reflecting different perspectives on the company’s potential and value. Initially, Jeff Stroope, the founder, sought $500,000 for 40% equity in the company. Mark Cuban made a compelling offer of $1.25 million for 100% ownership, along with a 3-year employment agreement for Stroope at $100,000 per year and a 7.5% royalty on sales.
However, Barbara Corcoran expressed concern about the perceived exploitation of Stroope’s hard work in Cuban’s offer, leading to a heated exchange between the sharks. Kevin O’Leary and Robert Herjavec also made offers, but Stroope ultimately accepted Cuban’s deal, viewing it as a significant opportunity for growth and impact. Cuban’s offer provided the financial resources needed to scale operations and bring HyConn to firefighters across the nation.
Despite initial hesitation from some sharks, the negotiations concluded with Stroope accepting Cuban’s offer, marking a pivotal moment for HyConn and its potential to revolutionize firefighting practices. The negotiation process showcased the sharks’ differing perspectives on valuation and the importance of securing the right strategic partner to propel HyConn forward in the firefighting industry.
