InstaFire – Instant Fire-starter
DEAL
EPISODE SUMMARY
🕓 Air Date: February 21, 2016
Asking For:
$300,000 for 10%
Investor:
Mark Cuban, Lori Greiner (50/50)
Deal:
$300,000 for 30%
PRODUCT SUMMARY
Insta-Fire is a versatile fire starter, charcoal briquette lighter, and emergency fuel that is safe, powerful, and easy to use.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Konel Banner and Frank Weston, founders of Insta-Fire, hail from Riverdale, Utah. The idea for Insta-Fire originated when Konel met an old man at a Mountain Man Rendezvous event who was burning a rock to start a fire. Inspired by this unconventional approach, Konel developed the concept. The product initially targeted the emergency preparedness market with large buckets of emergency fuel. Over seven years, Insta-Fire expanded its offerings to include fire starters and charcoal briquette lighters, entering retail partnerships with major stores like Home Depot, Meijer, Ace, True Value, and Cabela’s.
The Product
Insta-Fire stands out as a safe and powerful fire starter. It lights with ease using a match or lighter and can withstand strong winds and even float and burn on water. Its versatility extends to emergency situations, as it can efficiently boil water and cook food.
The fire starter uses a cellulose pouch for charcoal briquette lighting, eliminating the mess associated with traditional methods. The founders emphasize the safety aspect, showcasing how the fire can be easily extinguished.
Insta-Fire comes in a convenient pouch, simplifying the process of starting a fire. The product is suitable for various activities, including hiking, camping, backpacking, grilling, RVing, and ATVing.
How It Went
The company’s position before Shark Tank
Insta-Fire’s seven-year journey has seen substantial growth, with sales reaching $2.1 million to date. In the last year, they achieved $378,000 in sales, projecting $850,000 for the current year. The company has secured retail partnerships with major chains like Home Depot, Meijer, Ace, True Value, and Cabela’s within the past three months.
Their product lineup includes emergency fuel, fire starters, and charcoal briquette lighters. Insta-Fire’s production cost for a unit is 18.5 cents, and they sell wholesale at $74 and retail at $149. Despite their success, the founders emphasize the need for strategic partners to propel them further.
The Negotiations:
The negotiation process involved offers from Kevin, Daymond, Mark, and Lori. Initially asking for $300,000 for 10%, Mark and Lori countered with $300,000 for 33.3% (20% equity and 33.3% equity online), which was accepted. Kevin and Daymond dropped out, and Mark and Lori emphasized their expertise in retail and online sales, offering valuable insights into growing Insta-Fire’s market presence.
Despite some hesitations on equity percentages, the founders appreciated the value Mark and Lori brought to the table and agreed to the deal. The negotiation showcased the sharks’ competition for a stake in Insta-Fire and the founders’ willingness to adjust their terms for the right partners.
