Hydroviv Water Filters
DEAL
EPISODE SUMMARY
đź•“ Air Date: April 14, 2019
Asking For:
$400,000 for 10%
Investor:
Mark Cuban
Deal:
$400,000 for 20%
PRODUCT SUMMARY
Hydroviv offers customized water filters, tailored to the specific contaminants in each customer's water, addressing the shortcomings of mass-produced filters.
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Background Story
Eric Roy, a PhD chemist based in Washington, D.C., is the visionary founder behind Hydroviv. The inception of Hydroviv stems from a critical moment in environmental crisis—the Flint lead disaster. Witnessing the inadequacies of existing water filters in addressing the crisis, Eric, who was developing technology for the Department of Defense at the time, took matters into his own hands. Setting up in his studio apartment in Washington, D.C., Eric embarked on a mission to develop high-capacity lead-removal filters specifically designed to counteract the contamination in Flint’s water. This initiative went beyond profit, as Eric donated these custom filters to individuals and child-centric organizations in Flint, aiming to alleviate the dire water quality situation.
This grassroots involvement in mitigating a community’s water crisis inspired Eric to establish Hydroviv. Recognizing the limitations of one-size-fits-all water filters, he envisioned a company that could offer personalized solutions. Hydroviv’s approach involves an in-depth analysis of water quality data for each customer’s location. The “Water Nerds” at Hydroviv then construct filters tailored to the specific contaminants present in the water, ensuring a highly effective solution for diverse communities facing distinct water challenges.
The company’s commitment to addressing real-world water quality issues, coupled with Eric’s scientific expertise, has positioned Hydroviv as a unique player in the water filtration industry. Operating from the nation’s capital, Hydroviv not only provides innovative water solutions but also stands as a testament to the transformative power of proactive and community-focused entrepreneurship.
The Product
Hydroviv’s flagship product is a revolutionary water filtration system designed to provide tailored solutions for the specific water quality challenges faced by individual consumers. The process begins when a customer places an order for a Hydroviv system. The company’s team of “Water Nerds” then meticulously examines water quality data for the customer’s geographical location.
Based on this analysis, the Water Nerds craft a custom filter optimized to address the unique contaminants present in the customer’s water. For example, if a region is prone to lead contamination, the filter’s formulation is adjusted to enhance lead removal. This personalized approach ensures that the filtration system is not a generic, one-size-fits-all solution but a precisely engineered product that meets the specific needs of the customer’s location.
Once constructed, the Hydroviv system is conveniently shipped to the customer’s home, ready for straightforward installation under the sink and connection to the existing faucet. The system operates on a subscription model, with replacement cartridge costs at $55.25 every six months, ensuring continued effectiveness and convenience for the consumer. This unique and customized approach distinguishes Hydroviv in the market, providing not only clean water but a tailored solution that addresses the real and varied water quality concerns of its customers.
How It Went
The company’s position before Shark Tank
Hydroviv exhibits a robust and promising performance in the water filtration industry. The company, operating exclusively through e-commerce on its website, has positioned itself for growth and impact. With a projected sales figure of over $325,000 for the current year and a substantial increase to $1.7 million forecasted for the next year, Hydroviv is on a trajectory of rapid expansion. Currently, Hydroviv’s primary sales channel is its own website, showcasing a direct-to-consumer model that enables efficient order processing and personalized customer interactions.
The company has garnered considerable attention, attracting over 2,000 daily visitors to its blog, indicating a strong organic online presence. Hydroviv recently initiated marketing efforts, engaging a marketing firm for Facebook ads, a strategic move aimed at broadening its customer base and increasing brand awareness. The successful negotiation on Shark Tank resulted in a deal with Mark Cuban. This infusion of capital from a renowned investor like Mark Cuban is likely to provide Hydroviv with the financial leverage needed for scaling operations, marketing efforts, and product development.
Hydroviv’s customer base primarily comprises environmentally conscious consumers seeking tailored solutions for their water quality concerns. The company’s unique selling proposition lies in its ability to customize filters based on specific contaminant profiles in different geographical locations. The company’s current structure is centered around its founder, Eric Roy, and the recent partnership with Mark Cuban. The infusion of funds and expertise from Mark Cuban is expected to propel Hydroviv to new heights, solidifying its position as a key player in the water filtration market.
The Negotiations:
The negotiations for Hydroviv on Shark Tank were dynamic, with the sharks scrutinizing the company’s strategy, marketing approach, and the need for additional investment. Eric Roy, the founder, sought a $400,000 investment in exchange for a 10% equity stake in Hydroviv. Mark Cuban, intrigued by the product and recognizing Eric’s personal involvement in marketing, made a counteroffer of $400,000 for a 20% stake.
As the negotiation unfolded, skepticism arose regarding Hydroviv’s marketing complexity. Barbara Corcoran and Lori Greiner opted out, expressing concerns about consumer awareness and the intricacies of promoting a product with a customized approach. Mark Cuban emphasized that Hydroviv’s strength lies in Eric’s personal engagement with marketing, asserting that a senior-level marketing hire might not be the solution. Kevin O’Leary remained silent for much of the negotiation, and as the tension built, Eric expressed his desire to strike a deal with Mark Cuban.
However, O’Leary intervened, reminding Eric that he had not yet heard Kevin’s offer. Ultimately, Eric chose to accept Mark Cuban’s offer of $400,000 for a 20% equity stake, sealing the deal and bringing Mark Cuban on board as a strategic partner. While there were concerns raised about the company’s marketing strategy and the necessity of hiring a senior-level marketing person, Mark Cuban’s offer was deemed favorable. The negotiation highlighted the importance of Eric’s direct involvement in marketing and the potential for the company’s growth with Mark Cuban’s investment and expertise.
