MyoStorm – Massage Therapy Ball
DEAL
EPISODE SUMMARY
🕓 Air Date: October 27, 2019
Asking For:
$150,000 for 10%
Investor:
Lori Greiner
Deal:
$150,000 for 5% + $1 royalty per ball until $500,000 is repaid
PRODUCT SUMMARY
MyoStorm offers the Meteor, a patent-pending, FDA-compliant medical massage device that combines heat and vibration therapy to alleviate pain and aid muscular recovery.
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Background Story
MyoStorm, based in Provo, Utah, was founded by Jono DiPeri, an engineer, along with Shaquille Walker, the world 800-meter world record holder, and Jared Ward, a 2016 Olympic marathon runner for Team USA. The idea for MyoStorm’s flagship product, the Meteor, stemmed from the founders’ personal experiences with pain and the inadequacies of existing recovery equipment.
As professional athletes, Walker and Ward faced daily challenges of muscle soreness and sought a more effective solution. Recognizing the need for an improved recovery tool, they collaborated with DiPeri to create a device that would address these issues.
The Product
The Meteor is a cutting-edge massage device that stands out in the market due to its integration of heat and vibration therapy. It is designed for ease of use, offering versatility by allowing users to apply it while lying down, sitting, or simply holding it against sore muscles.
The device functions similarly to a traditional roller but incorporates the added benefits of heat and vibration, enhancing the overall massage experience. Users can experience the soothing effects of heat combined with the therapeutic vibrations, making it more comfortable than conventional rollers.
The product is user-friendly, providing a convenient solution for individuals experiencing various types of pain, from sore backs to muscular discomfort. MyoStorm initially targeted professional athletes but recognized the broader applicability of their product, making it accessible to anyone with pain or muscle soreness.
The pricing strategy involves selling the Meteor between $130 and $175, with a retail price of $160. While the product is priced at a premium, the founders justified this by emphasizing its superior features compared to competitors in the market.
Manufacturing costs were disclosed at $40 per unit. The product has been tested with positive results, and the company has already generated $120,000 in total sales, including a successful Kickstarter campaign.
How It Went
The company’s position before Shark Tank
MyoStorm, a relatively new company, demonstrated promising performance on “Shark Tank.” The founders disclosed that they had generated approximately $120,000 in total sales, with a Kickstarter campaign contributing significantly to this figure. They positioned themselves as a direct-to-consumer brand, selling the Meteor through their website. The company expressed interest in expanding into the retail space, beginning with specialty retailers.
The manufacturing cost of the Meteor was stated at $40 per unit, and the retail price ranged between $130 and $175. MyoStorm emphasized the competitive advantage of offering a superior product at a more affordable price point compared to other products on the market.
During the pitch, the founders highlighted their background and experience as professional athletes, bringing authenticity and expertise to their products. Their aim was to secure a deal with the Sharks to not only obtain funding but also benefit from the mentorship and guidance of the chosen Shark.
The Negotiations:
The founders entered the Tank seeking $150,000 for a 10% equity stake in MyoStorm. The Sharks showed genuine interest in the product, with multiple offers coming in. Mark Cuban made an offer of $250,000 for 20% equity. He emphasized his ability to help the company reach the sports demographic through his connections.
Kevin O’Leary made an initial offer of $250,000 for 20% equity, proposing a royalty of $1 per unit until he recoups $500,000, after which the royalty would cease, and he would retain 5% equity. Lori Greiner and Matt Higgins both expressed interest and made competing offers. Greiner proposed $150,000 for 5% equity with a $1 per unit royalty until she recoups $500,000. Higgins matched the initial ask of $150,000 for 10% equity.
Ultimately, MyoStorm accepted Lori Greiner’s offer of $150,000 for 5% equity, with a $1 per unit royalty until $500,000 is recouped. The founders chose Greiner’s offer, citing potential value in her ideas for cost reduction and distribution.
