Oru Kayak
DEAL
EPISODE SUMMARY
🕓 Air Date: May 9, 2014
Asking For:
$500,000 for 12%
Investor:
Robert Herjavec
Deal:
$500,000 for 25%
PRODUCT SUMMARY
Oru Kayak offers foldable kayaks designed for easy storage and transportation, inspired by origami.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Oru Kayak is the brainchild of three outdoor enthusiasts: Anton, Roberto, and Ardy. With a shared passion for kayaking, they were frustrated by the cumbersome nature of traditional kayaks, particularly the challenges associated with storage and transportation. Determined to find a solution, Anton, armed with a background in design, embarked on a journey to revolutionize the kayak industry. Drawing inspiration from his childhood fascination with origami, Anton set out to create a kayak that could fold into a compact size, easily storable in small spaces like a bedroom closet.
This ambitious project fused his expertise in design with his love for outdoor adventure. Joined by Roberto and Ardy, who shared his vision and brought their own expertise to the table, the trio embarked on a mission to redefine the outdoor recreation landscape. Based on their innovative concept, they founded Oru Kayak, a company dedicated to crafting foldable kayaks that blend functionality with elegance. Located in a hub of innovation and outdoor culture, their global reach speaks to their success in tapping into the market’s demand for portable, high-performance watercraft.
With Oru Kayak, the founders sought to democratize kayaking, making it accessible to a wider audience while addressing the practical challenges faced by enthusiasts. Their journey from concept to company involved nine months of intensive work, including setting up a manufacturing line and establishing a global distribution network. The founders’ dedication to their vision and their collective expertise in design, outdoor recreation, and business laid the foundation for Oru Kayak’s success story.
The Product
Oru Kayak offers a revolutionary solution for outdoor enthusiasts with their foldable kayak design. Inspired by the art of origami, the kayak seamlessly unfolds from a single, durable sheet into a fully-functional watercraft. This innovative design ensures easy storage and transportation, making it ideal for adventurers with limited space or those seeking portability.
Constructed from lightweight yet robust materials, the Oru Kayak is remarkably sturdy while weighing only 26 pounds. Its rigid bulkheads provide structural integrity, ensuring stability and safety on the water. The watertight seams guarantee a dry and comfortable experience, even in rough conditions.
Versatile and user-friendly, the Oru Kayak is suitable for paddlers of all skill levels. Expert paddlers appreciate its speed and durability, while beginners find it stable and easy to maneuver. Whether on flat lakes, big ocean waves, or whitewater rapids, the Oru Kayak performs admirably, offering an exhilarating outdoor experience.
Customers can purchase Oru Kayaks directly from the company’s website, where the best-selling model is priced at $1,100. This direct-to-consumer approach ensures accessibility and convenience for buyers worldwide. With its competitive pricing and innovative design, the Oru Kayak has garnered acclaim from outdoor enthusiasts seeking a reliable and portable watercraft for their adventures.
How It Went
The company’s position before Shark Tank
Oru Kayak has demonstrated impressive growth and success since its inception, with a strong position in the outdoor recreation market. The company has efficiently capitalized on the demand for innovative, portable watercraft, establishing itself as a leader in the industry. With a global reach, Oru Kayak has cultivated partnerships with various outdoor retailers and distributors, expanding its distribution network and reaching a diverse customer base.
The primary customers of Oru Kayak are outdoor enthusiasts, including both novice paddlers and seasoned adventurers. With its versatile design and user-friendly features, the kayak appeals to a wide range of individuals seeking portable and high-performance watercraft for their outdoor adventures. In terms of funding, Oru Kayak initially sought investment from the Sharks on Shark Tank, securing a deal with Robert Herjavec for $500,000 in exchange for a 25% stake in the company. This injection of capital provided the necessary resources for Oru Kayak to scale up manufacturing and meet growing demand.
With a projected revenue of $4 million for the next year, Oru Kayak is well-positioned for further growth and expansion. In terms of company structure, Oru Kayak operates with a lean and agile approach, focusing on innovation, efficiency, and customer satisfaction. The founders play key roles in driving the company’s vision forward, supported by a dedicated team committed to delivering high-quality products and exceptional service. With solid financial backing and a proven track record of success, Oru Kayak is poised to continue its upward trajectory in the outdoor recreation market.
The Negotiations:
During the negotiations on Shark Tank, Oru Kayak sought a $500,000 investment in exchange for a 12% equity stake in the company. Robert Herjavec expressed immediate interest in the innovative product, offering the full amount but for a larger stake of 25%. His enthusiasm and belief in the product’s potential convinced the founders to accept his offer, valuing the company at $2 million.
While other Sharks expressed interest in the product, concerns were raised about the scalability of manufacturing and logistics, leading them to ultimately pass on the opportunity. Daymond John, for instance, expressed reservations about the $500,000 investment being sufficient to automate the manufacturing process, while Kevin O’Leary highlighted the tight margins in his business, making it challenging to invest at this stage.
Despite some skepticism, the founders were impressed by Robert’s commitment and expertise, ultimately accepting his offer. Robert’s willingness to provide support, including a seat on the board and assistance with manufacturing, sealed the deal. With Robert’s investment, Oru Kayak gained not only the necessary capital to scale up production but also a strategic partner who shared their vision for the company’s future success. The negotiation showcased the power of belief in the product and the importance of finding the right investor to propel a business forward.
