Magic Moments Print On Demand Products
NO DEAL
EPISODE SUMMARY
🕓 Air Date: November 15, 2013
Asking For:
$500,000 for 15%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Magic Moments enables users to create customized products directly from their mobile phones, allowing them to sell their creations through the app.
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Background Story
Magic Moments, based in Detroit, Michigan, was founded by Trevor George, Blake George, and Sanford Nelson. The trio’s background spans technology and entrepreneurship, with a shared vision of simplifying the process of creating customized products from photos. Their inspiration stemmed from the inconvenience of transferring photos from portable cameras to computers for product customization. Recognizing the growing trend of mobile photography and the desire for instant gratification, they conceptualized Magic Moments as a solution to enable users to create and sell personalized products directly from their mobile phones.
Drawing from their collective expertise in technology and business, the founders embarked on developing the Magic Moments app, aiming to revolutionize the way people interacted with their photos. They envisioned a user-friendly platform that would streamline the entire process, from capturing moments to turning them into tangible products. With a keen understanding of consumer behavior and market trends, they identified the untapped potential in the personalized product market and sought to capitalize on it with their innovative approach.
Through their entrepreneurial journey, the founders leveraged their knowledge and skills to navigate the challenges of product development and market entry. Their passion for innovation and commitment to providing a seamless user experience drove them to create a robust platform that would empower individuals to unleash their creativity and monetize their digital assets. With Magic Moments, Trevor, Blake, and Sanford aimed to democratize the creation and distribution of customized products, empowering users to turn their everyday moments into magical memories.
The Product
Magic Moments offers a convenient and intuitive mobile app that revolutionizes the creation and sale of personalized products. Users can easily transform their favorite photos into a wide range of customizable items, including t-shirts, iPhone cases, mugs, mouse pads, coasters, canvas bags, and more. The process is simple: users capture a moment on their mobile device, upload the photo to the Magic Moments app, and choose from a variety of products to customize using the built-in design center.
The app provides numerous customization options, allowing users to add text, graphics, filters, and other elements to their designs. Once satisfied with their creation, users can preview the product and proceed to purchase it directly from the app. Additionally, Magic Moments offers a unique feature that enables users to sell their creations through the app’s marketplace, providing an opportunity to monetize their photos.
With Magic Moments, users can unleash their creativity and personalize everyday items with their unique style and memories. The app’s seamless interface and extensive product catalog make it easy for users to express themselves and create meaningful gifts for themselves or others. Pricing for products varies depending on the selected item and customization options, with transparent pricing displayed within the app for users’ convenience.
How It Went
The company’s position before Shark Tank
Magic Moments was in the pre-revenue stage, indicating that they had not yet generated any sales. However, the company had secured a significant partnership with CafePress, a global manufacturer and distributor, serving as their back-end manufacturer. This exclusive relationship provided Magic Moments with access to global distribution channels and streamlined manufacturing processes through CafePress’ infrastructure. Magic Moments’ target customers included individuals looking to personalize and purchase customized products, as well as those seeking to monetize their photos by selling them through the app’s marketplace.
The founders emphasized the potential market for personalized products, highlighting the growing trend of mobile photography and the desire for instant gratification among consumers. In terms of funding, Magic Moments had received $500,000 in initial funding from family and friends, representing a 33% equity stake in the company. They were seeking an additional $500,000 for a 15% equity stake from the Sharks during the pitch. However, none of the Sharks were willing to invest at that valuation.
Despite the lack of sales and concerns raised by the Sharks about the business model, Magic Moments remained confident in their technology and market potential. The company’s structure likely involved the founders playing key roles in product development, marketing, and business operations. With a robust platform and exclusive partnership with CafePress, Magic Moments was poised to capitalize on the growing demand for personalized products and mobile commerce, although they faced challenges in proving the viability of their concept and attracting further investment.
The Negotiations:
During the negotiations on “Shark Tank,” Magic Moments sought $500,000 for a 15% equity stake in their company. However, none of the Sharks were willing to meet this valuation, expressing concerns about the lack of sales and the unproven business model. Mark Cuban and Robert Herjavec questioned the valuation and feasibility of selling user-generated photos on the platform. Despite Magic Moments’ exclusive partnership with CafePress, the Sharks remained unconvinced of the company’s potential.
Ultimately, all Sharks declined to invest in Magic Moments. Daymond John was the first to opt out, followed by Robert Herjavec, who doubted the immediacy of the market and the viability of selling photos through the app. Lori Greiner expressed concerns about the lack of proof of concept in sales and the need for further validation. Kevin O’Leary dismissed the company’s valuation and suggested a lower offer.
The negotiations highlighted the Sharks’ reservations about Magic Moments’ business model and valuation, ultimately leading to no deal being struck. Despite the rejection, the founders remained confident in their product and vision, emphasizing the potential of their technology and exclusive partnership with CafePress. However, the Sharks felt that the risks outweighed the potential rewards, resulting in Magic Moments leaving the tank without a deal.
