iReTron
DEAL
EPISODE SUMMARY
🕓 Air Date: March 14, 2014
Asking For:
$100,000 for 20%
Investor:
Barbara Corcoran, Mark Cuban (50/50)
Deal:
$100,000 for 20%
PRODUCT SUMMARY
iReTron is an online recommerce business that focuses on buying used or unwanted electronics, offering competitive prices while promoting environmental sustainability by giving older devices a new life.
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Background Story
iReTron, founded by Jason, is a pioneering online recommerce venture aiming to mitigate electronic waste while making technology accessible to all. Jason, the innovative mind behind iReTron, is a remarkable 16-year-old entrepreneur with a passion for environmental sustainability and social responsibility. His journey into entrepreneurship began after a judo injury sidelined him, leading him to explore avenues where he could make a positive impact. Immigrating from China at a young age, Jason’s upbringing instilled in him a strong sense of community and the drive to contribute meaningfully to society.
Inspired by his environmental consciousness and desire to provide affordable technology solutions, Jason conceived the idea for iReTron. Recognizing the staggering amount of electronic waste generated annually and the financial barriers preventing individuals from accessing the latest technology, he saw an opportunity to bridge the gap. Combining his entrepreneurial spirit with his commitment to environmental conservation, Jason embarked on the journey to establish iReTron.
He envisioned a platform where individuals could easily sell their used electronics, extending their lifespan and reducing electronic waste. By offering competitive prices and a hassle-free process, iReTron not only benefits sellers but also contributes to a greener, more sustainable future. Jason’s unique background, coupled with his dedication to social and environmental causes, fuels iReTron’s mission to revolutionize the electronics industry and inspire others to embrace sustainability in their consumer habits.
The Product
iReTron operates as an online recommerce platform that simplifies the process of selling used or unwanted electronics while promoting environmental sustainability. Users can easily navigate the website to receive an instant quote for their devices, including cellphones, calculators, MP3 players, and more. The platform stands out by offering competitive prices, often the highest on the market, for a wide range of electronic products.
The process for selling electronics through iReTron is straightforward: users input details about their device on the website, such as its model and condition, and receive an immediate valuation. Upon accepting the quote, sellers can ship their products to iReTron free of charge. Within 48 hours of receiving the device, iReTron inspects it and issues payment to the seller.
iReTron’s approach benefits both sellers and the environment. Sellers gain access to a convenient and lucrative avenue for disposing of their electronics, while buyers can purchase refurbished devices at affordable prices, extending the lifespan of technology and reducing electronic waste.
Through its commitment to environmental sustainability and customer accessibility, iReTron has positioned itself as a leader in the recommerce market, providing a win-win solution for individuals looking to sell their electronics and those seeking affordable tech upgrades. Pricing for purchased devices varies depending on factors such as model, condition, and market demand, ensuring competitive offers for sellers while maintaining affordability for buyers.
How It Went
The company’s position before Shark Tank
iReTron has demonstrated promising growth and a strong position in the recommerce market since its inception. With a revenue of $40,000 in the past year and a net profit margin of approximately 25%, the company has established itself as a viable player in the electronics recycling industry. Despite facing stiff competition, iReTron differentiates itself as a social enterprise committed to environmental sustainability, offering a wide range of electronic products and providing competitive prices to sellers.
iReTron collaborates with various electronic manufacturers, retailers, and recycling facilities to source and process used electronics. The company’s customer base comprises individuals seeking to sell their used devices and environmentally conscious consumers looking for affordable refurbished electronics. In terms of funding, iReTron’s capital likely comes from a combination of sources, including initial investments from the founder, revenue generated from sales, and potential external investments or loans. The company’s financial health is stable, with profits reinvested into business operations and expansion efforts.
iReTron’s current organizational structure likely consists of a small team led by the founder, Jason, who oversees day-to-day operations, marketing, and strategic decision-making. As the company grows, it may seek to expand its team and establish partnerships with other organizations to further scale its operations and reach a wider audience. Overall, iReTron’s performance reflects its commitment to environmental sustainability, customer satisfaction, and innovation in the electronics recommerce industry.
The Negotiations:
The negotiations on “Shark Tank” for iReTron were dynamic and reflective of the company’s potential. Initially, Jason sought $100,000 in exchange for a 20% stake in his business. While some Sharks expressed reservations about iReTron’s scalability and profitability, Barbara recognized Jason’s entrepreneurial spirit and offered $100,000 for 20% equity, along with a unique proposition: a 20% stake in any future business ventures Jason undertakes over the next five years.
This offer highlighted Barbara’s belief in Jason’s potential as a young entrepreneur and her desire to foster his growth. Mark Cuban later joined Barbara’s offer, expressing confidence in Jason’s abilities and willingness to support his journey. Despite concerns raised by other Sharks regarding iReTron’s valuation and proprietary aspects of the business, Barbara and Mark’s joint offer resonated with Jason’s vision and aspirations.
Ultimately, Jason accepted Barbara and Mark’s offer, excited about the opportunity to collaborate with both Sharks and leverage their expertise to propel iReTron to new heights. The negotiations showcased the Sharks’ willingness to invest in Jason not just for his current venture but also for his future endeavors, underscoring the belief in his potential to make a significant impact in the business world.
