iFork Flatware
DEAL
EPISODE SUMMARY
🕓 Air Date: January 7, 2018
Asking For:
$100,000 for 5%
Investor:
Barbara Corcoran
Deal:
$100,000 for 15%
PRODUCT SUMMARY
iFork is an innovative, all-in-one, interlocking system designed to make eating and drinking at parties easier, featuring an iCup, iPlate, and iFork with an innovative notch to prevent the fork from touching dirty surfaces.
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Background Story
Kyle Donovan, the founder of iFork, grew up in the projects of Brooklyn without his parents. Despite the challenging circumstances, he displayed an entrepreneurial spirit from an early age, collecting bottles with his cousin to make money. Kyle’s journey led him to work in a photo lab at 15, open a photography studio at 19, and launch the second-largest urban business magazine in the country at 26.
Inspired by his discomfort with dirty utensils at restaurants, Kyle developed iFork to provide an innovative solution for eating and drinking at events. The product’s evolution involved securing a 500-store test with Wal-Mart, where the iFork performed well, but the full potential was hindered by the lack of a cup and plate at that time.
The Product
iFork offers an all-in-one solution for social gatherings, consisting of an iCup, iPlate, and iFork. The iCup allows users to secure their drinks and features a mechanism for easy attachment and removal. The iPlate has an innovative notch designed to keep the fork from touching dirty surfaces, addressing hygiene concerns.
The iFork can be slid out for use and then nested back into place after eating. The product aims to improve upon traditional flatware and simplify the two-hand shuffle dilemma faced at parties. Kyle emphasizes the unique selling point of the notch, highlighting the importance of preventing the part of the fork that enters the mouth from contacting unsanitary surfaces.
How It Went
The company’s position before Shark Tank
iFork secured a 500-store test with Walmart, featuring the iFork product line, excluding the cup and plate. The initial order amounted to 18,000 units, generating $26,000 in sales. However, Wal-Mart did not reorder the product, citing concerns about the brand’s visibility and the risk associated with shelf space. Kyle is focused on marketing and developing iFork full-time, with plans to retail the product at $15.99.
The company is in the early stages, with the first container received, and there is an emphasis on selling the product as a set. Kyle acknowledges the need for an effective demonstration to convey the value of the product to potential customers. The challenges include a higher price point compared to standard plastic sets and the necessity of educating consumers about the innovative features.
The Negotiations:
Mark Cuban, Robert Herjavec, Lori Greiner, and Rohan Oza raised concerns about the product’s marketing and packaging. Rohan points out concerns about the marketing challenges and the need for consumer understanding. Barbara Corcoran, recognizing the potential of iFork, made a deal with Kyle for $100,000 in exchange for a 20% equity stake. However, she proposed a contingency that the plate be redesigned to hold a standard cup, potentially opening up a broader market.
Robert Herjavec commends Kyle for overcoming challenges in life but opts out, supporting Barbara’s offer. In a final attempt to negotiate, Kyle, appreciating the offer, attempted to negotiate the equity down to 15%, and Barbara agreed, finalizing the deal at $100,000 for 15%.
The negotiation showcased Barbara’s belief in the product’s potential and her willingness to work with Kyle to enhance its marketability and success. Kyle expresses gratitude for the opportunity and reflects on his journey from a challenging background to securing an investment on Shark Tank.
