LiddUp Cooler
DEAL
EPISODE SUMMARY
🕓 Air Date: April 5, 2013
Asking For:
$100,000 for 10%
Investor:
Kevin O'Leary
Deal:
$100,000 for 33%
PRODUCT SUMMARY
LiddUp Cooler is the first and only cooler with built-in LED lighting, designed to make finding items easier in the dark.
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Background Story
Jayson Sandberg and Taylor Gwiazdon, founders of LiddUp Corporation, were inspired to create the LiddUp Cooler during a camping trip. Frustrated by searching for drinks in a dark cooler, Jayson conceived the idea for a cooler with built-in LED lights. After realizing no such product existed, they developed prototypes and secured three issued patents to protect their technology. With a vision to revolutionize the cooler industry, they entered the Shark Tank seeking funding and strategic partnerships to bring their product to market.
The Product
The LiddUp Cooler is equipped with LED lighting along its interior, providing illumination for easy visibility of contents, even in low light conditions. The cooler’s design ensures efficient cooling and durability, making it ideal for various outdoor activities such as camping, picnics, and tailgating.
Customers can purchase the LiddUp Cooler online through the company’s website or through retail partners. The price point is competitive with other high-quality coolers on the market, reflecting the added value of its innovative lighting feature.
How It Went
The company’s position before Shark Tank
LiddUp Corporation has positioned itself as an innovative player in the cooler industry, with patented technology and a unique product offering. While they have not yet secured retail partnerships, they have focused on developing their intellectual property portfolio to protect their technology. The company’s current funding primarily comes from seeking investments from strategic partners like the Sharks on Shark Tank. With available capital from the deal with Kevin O’Leary, they aim to initiate negotiations with major cooler manufacturers to license their technology and expand their market reach.
The Negotiations:
Initially seeking $100,000 for a 10% equity stake, Jayson and Taylor faced skepticism from the sharks regarding their valuation and market strategy. Robert Herjavec offered $100,000 for 25% of the company and proposed to introduce them to a leading cooler manufacturer. However, Kevin O’Leary countered with an offer of $100,000 for 33% of potential licensing deals, emphasizing his expertise in negotiating such agreements. Ultimately, Jayson and Taylor accepted Kevin’s offer, recognizing the value of his experience and connections in the industry.
