ilumi – World’s Smartest Lightbulb
DEAL
EPISODE SUMMARY
🕓 Air Date: April 18, 2014
Asking For:
$350,000 for 15%
Investor:
Mark Cuban
Deal:
$350,000 for 25%
PRODUCT SUMMARY
Ilumi Solutions offers intelligent and tunable LED light bulbs controlled wirelessly via a mobile device, providing users with complete control over their lighting to create the right ambiance at any time.
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Background Story
Corey Egan and Swapnil Bora, the founders of Ilumi Solutions, hail from Dallas, Texas, where they attended the University of Texas at Dallas. Their entrepreneurial journey began during their time as classmates, where they shared a passion for innovation and technology. With backgrounds in engineering and business, respectively, Egan and Bora combined their expertise to tackle a common problem: inefficient and outdated lighting solutions. Inspired by the potential to revolutionize the lighting industry, Egan and Bora conceived the idea for Ilumi Solutions.
They recognized the growing demand for smart home technology and saw an opportunity to leverage advancements in LED lighting and wireless connectivity to create a groundbreaking product. Their vision was to develop a lighting system that offered both functionality and convenience, allowing users to control their lighting environment effortlessly. Drawing upon their academic background and industry knowledge, Egan and Bora embarked on the journey of turning their idea into reality.
They conducted extensive research and development to perfect their product, focusing on factors such as energy efficiency, ease of use, and customization options. Through dedication and perseverance, they successfully brought Ilumi to the brink of manufacturing, poised to disrupt the lighting market with their innovative solution. Egan and Bora’s journey exemplifies the power of collaboration and ingenuity, showcasing how passion and determination can transform a simple idea into a groundbreaking product poised to change the way we illuminate our world.
The Product
Ilumi Solutions offers an innovative lighting solution that combines cutting-edge technology with user-friendly design. Their intelligent LED light bulbs can be controlled wirelessly via a mobile app, providing users with unprecedented flexibility and customization options. The setup process is simple: users screw in the Ilumi light bulbs into any standard light fixture and download the Ilumi app onto their mobile device.
Through the app, users can adjust the color, brightness, and timing of the lights, allowing them to create personalized lighting experiences tailored to their preferences and needs. For example, users can simulate a sunrise to wake up feeling refreshed, set automatic timers for lights to turn on or off when leaving or returning home, or create mood lighting for special occasions.
The benefits of Ilumi extend beyond convenience to include energy efficiency and longevity. With LED technology, Ilumi bulbs consume less energy compared to traditional incandescent bulbs, helping users save on electricity bills while reducing their environmental footprint. Additionally, Ilumi bulbs have a lifespan of up to 20 years, ensuring long-term durability and reliability.
Ilumi bulbs are available for purchase directly from the company’s website or authorized retailers. The price for a three-pack of Ilumi bulbs is $289, making them a premium yet worthwhile investment for those seeking advanced lighting solutions that enhance their living spaces and lifestyle.
How It Went
The company’s position before Shark Tank
Ilumi Solutions has positioned itself as a leading player in the smart lighting industry, demonstrating strong growth potential and a commitment to innovation. The company’s health and position are robust, with a solid foundation built on a unique product offering and a dedicated customer base. As for partnerships, Ilumi has forged collaborations with various retailers and distributors to expand its market reach. These partnerships enable the company to tap into different distribution channels and reach a broader audience of consumers and businesses.
Additionally, Ilumi works closely with technology partners to integrate its products with other smart home devices and platforms, enhancing interoperability and usability. Ilumi’s customer base consists of both residential and commercial clients seeking advanced lighting solutions. Residential customers appreciate the convenience and customization options offered by Ilumi bulbs, while commercial clients value the energy efficiency and cost-effectiveness of the technology for their spaces. In terms of funding, Ilumi has secured investment from prominent investors, including Mark Cuban, to support its growth and expansion efforts.
This funding enables the company to invest in research and development, manufacturing capabilities, marketing initiatives, and customer support services. The company’s available capital allows it to pursue strategic initiatives, such as product development, market expansion, and partnership opportunities. Ilumi Solutions is structured to scale its operations efficiently, with a focus on innovation, quality, and customer satisfaction. The company’s leadership team comprises experienced professionals with expertise in technology, business development, and marketing, driving its success and positioning it for continued growth in the competitive smart home market.
The Negotiations:
During the negotiations on Shark Tank, Ilumi Solutions received multiple offers from the Sharks, each presenting unique terms and value propositions. Initially seeking $350,000 for 15% equity, the founders Corey Egan and Swapnil Bora received offers from Mark Cuban and Kevin O’Leary. Mark Cuban offered the full amount of $350,000 but requested a higher equity stake of 25%, citing the potential value he could bring to the company. Kevin O’Leary, on the other hand, proposed a royalty-based deal, offering $350,000 in exchange for a royalty stream of 15% without taking any equity.
The negotiations took a turn when the founders expressed their desire to explore other offers and consider their options. This prompted Mark Cuban to withdraw his offer, feeling his terms were fair and competitive. However, after some deliberation, Kevin O’Leary re-entered the negotiation with a modified offer, proposing to provide the funding without taking any equity but instead seeking a 15% royalty stream upon the clearance of the company’s intellectual property.
Ultimately, Corey and Swapnil accepted Mark Cuban’s offer of $350,000 for 25% equity, recognizing the value he could bring to the table in terms of expertise, connections, and strategic guidance. The negotiation process showcased the importance of evaluating offers carefully and weighing the potential benefits and drawbacks of each proposal before making a decision.
