Kymera Electric Body Boards
DEAL
EPISODE SUMMARY
🕓 Air Date: April 28, 2019
Asking For:
$250,000 for 20%
Investor:
Daymond John
Deal:
$500,000 for 10%
PRODUCT SUMMARY
Kymera Body Board is the world's first all-electric, jet-propelled body board, offering a unique and thrilling water sports experience.
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Background Story
Jason Woods, founder of Kymera Body Board, hails from Pleasant Hill, California, and his entrepreneurial journey is one of resilience and transformation. Returning to the Shark Tank after a challenging initial pitch, Woods demonstrated a willingness to learn and adapt. Approximately a decade ago, Woods embarked on a venture to create the world’s first all-electric, jet-propelled body board. However, his first attempt faced setbacks and harsh criticism from the Sharks.
Undeterred, he took their feedback to heart, acknowledging that he needed to shift away from the “want-repreneur” mindset. This led him to make significant life changes, including quitting his job and embracing a newfound determination to turn his vision into reality. In the pursuit of redemption, Woods sought a strategic partner to handle the operations of Kymera Body Board. This is where Adam Majewski enters the picture. Adam, now responsible for operations, was brought on board after Woods reached out during a live episode airing.
Together, they evolved the garage prototype into a fully refined product that not only includes the groundbreaking electric body board but also extends to other innovative watercraft, such as hybrid electric kayaks and electric jet surfboards. The transformation didn’t stop there. Woods and Majewski turned Kymera Body Board into a scalable technology, showcasing their dedication to innovation and adaptability. With a renewed focus and a revamped product line, they re-entered the Shark Tank seeking $250,000 for a 5% stake, setting the stage for a successful redemption story in the world of electric watersports.
The Product
Kymera Body Board stands as a pioneering force in electric watersports, offering an electrifying experience on the water. At its core, the product is the world’s first all-electric, jet-propelled body board. The body board operates with an innovative modular drivetrain that propels it forward, delivering a thrilling and dynamic ride for water enthusiasts.
Designed for versatility, Kymera’s product line extends beyond the body board. The modular drivetrain can be adapted for use in various watercraft, such as hybrid electric kayaks, electric jet surfboards, and micro-personal watercraft. This adaptability sets Kymera apart, providing users with a range of options to suit their preferences and water adventures.
The Kymera Body Board and its counterparts cater to a broad market, offering benefits such as ease of use, unique water experiences, and environmental sustainability with its electric propulsion. The product is available for purchase through direct-to-consumer sales, providing accessibility to individual buyers. Additionally, Kymera has secured partnerships with major luxury-boat manufacturers, expanding its reach through their extensive dealer networks.
With a retail price ranging from $3,250 to $3,750, the Kymera Body Board is positioned as a premium yet attainable product in the electric watersports market. Its combination of cutting-edge technology, adaptability, and thrilling performance makes it a standout choice for water enthusiasts seeking a new dimension of excitement on the waves.
How It Went
The company’s position before Shark Tank
Kymera Body Board has experienced significant growth and transformation, positioning itself as a notable player in the electric watersports market. The company’s health is marked by a backlog of orders, successful rental locations, and international distribution channels. Kymera has strategically partnered with one of the largest luxury-boat manufacturers, securing access to 225 dealers, a move that promises to expand their market presence significantly. In terms of funding, Kymera has raised a total of $625,000 through various rounds with different investment groups, showcasing investor confidence and support.
Valuations have ranged from $2 million to $7.5 million, indicating a positive perception of the company’s potential. This funding has been crucial for product development, refining the initial garage prototype into a fully realized and scalable technology. The company’s customer base includes water sports enthusiasts seeking unique and thrilling experiences. With successful rental locations and international distribution, Kymera has broadened its reach to a diverse audience globally. Direct-to-consumer sales provide individual buyers with the opportunity to own Kymera’s innovative electric watercraft.
While projecting $2 million in sales for the current year, Kymera acknowledges challenges related to inventory management. The company has experienced a high demand for its products, leading to a backlog of orders. Despite this, year-to-date sales stand at $350,000, with $900,000 in sales over the last 12 months. However, the company faces the hurdle of meeting demand due to inventory constraints, emphasizing the need for strategic financial management. Kymera’s current structure involves key partnerships, including the significant collaboration with Adam Majewski, who handles operations.
The Negotiations:
In the intense negotiations on Shark Tank, Jason Woods and Adam Majewski of Kymera Body Board faced a challenging yet ultimately successful journey toward securing a deal for their electric watercraft venture. The Sharks initially expressed skepticism due to their previous unsuccessful pitch, and Kevin O’Leary offered $250,000 for 5% with a unique repayment structure. O’Leary proposed receiving $500 per unit until he recoups $750,000, adding a distinctive financial aspect to the deal.
Daymond John entered the negotiation arena, offering $250,000 for 10% and emphasizing his expertise in licensing and factor relationships, indicating a belief in the scalability of the business. However, in a surprising turn of events, he swiftly increased his offer to $500,000 for 10%, clearly recognizing the potential of Kymera Body Board and the value he could bring to the table. Amidst the negotiations, Robert Herjavec bowed out, expressing concerns about cash burn and the potential distraction from the core business. Lori Greiner also opted out, underlining the importance of staying focused in the competitive market.
Ultimately, the founders found their ideal partner in Daymond John, accepting his offer of $500,000 for 10%. This deal not only brought significant capital infusion but also leveraged John’s industry insights and connections for licensing and scaling the business. The negotiation showcased the founders’ resilience, the evolution of their product line, and the strategic decision-making that led to a triumphant redemption on the Shark Tank stage.
