IcyBreeze – Portable Air Conditioner and Cooler
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 29, 2016
Asking For:
$50,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Icy Breeze is the world's first personal, portable air conditioner and cooler all in one, designed to provide relief from heat in outdoor settings.
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Background Story
Icy Breeze was pitched by Andrew Jenkins (CEO), Jason Shakleford (VP of Sales and Marketing), and Dave Yonce (Owner and Inventor). The product originated from a camping experience where Dave Yonce, the inventor, faced sweltering temperatures and sought a way to cool the air for comfort. This led to the development of Icy Breeze, a portable air conditioner and cooler.
Dave Yonce, a serial entrepreneur with notable success in founding the software company SolarWinds, invested $5.5 million of his own money into Icy Breeze. The team aimed for a strategic partnership and sought $50,000 for 5% equity.
The Product
Icy Breeze operates by circulating ice-cold water from the bottom of a tub into a brass radiator in the lid. The cold water chills the radiator, and a three-speed fan blows the cooled air through a flexi-hose, providing relief at 35 degrees below the outside temperature.
The product is designed to be portable and wireless, with a rechargeable battery in the lid offering up to six hours of cooling. Priced at $349, Icy Breeze targets outdoor enthusiasts, providing applications such as keeping individuals cool in sports stands or during outdoor activities.
The product’s uniqueness lies in combining the functionality of a personal air conditioner with that of a cooler, offering a solution for beating the heat outdoors.
How It Went
The company’s position before Shark Tank
Icy Breeze had sold 1,700 units online and was available in 48 Sam’s Clubs across the country. The founders projected sales of $2.5 million for the current year, with a revenue of $125,000 the previous year. The cost of manufacturing the product was $191, attributed to the inclusion of a 10 amp-hour nickel metal hydride battery, which was identified as a costly component. The founders emphasized that they were cash-flow-positive, debt-free, and had stable financials. However, the high valuation and cost of the product raised questions from the Sharks.
The Negotiations:
The negotiation process revolved around the high cost of the product and its marketability. The founders were seeking $50,000 for 5%, valuing the company at $1 million. The Sharks raised concerns about the $349 retail price, comparing it to much cheaper traditional coolers. Kevin O’Leary questioned the cost of goods, and Mark Cuban expressed skepticism about the product’s widespread appeal at the given price point.
The founders defended the pricing, citing the cost of the battery as a significant factor. Despite the impressive sales figures and positive financial position, the Sharks were hesitant to invest due to the perceived high valuation and market challenges. Ultimately, none of the Sharks made an offer, and the founders left the tank without securing a deal.
