Power Decal – Light Up Stickers
DEAL
EPISODE SUMMARY
🕓 Air Date: April 15, 2011
Asking For:
$100,000 for 5%
Investor:
Daymond John, Robert Herjavec (50/50)
Deal:
$100,000 for 70%
PRODUCT SUMMARY
LightFilm offers a light-up decal for car windows that features motion and light sensors, allowing it to illuminate and animate at night.
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Background Story
LightFilm LLC, helmed by George Podd and Rolf Schwartz, is a venture driven by innovation and a keen eye for market opportunities. George Podd brings to the table a background in industrial design, a field that has fueled his passion for creating products that seamlessly blend functionality with aesthetics. His prior experience includes notable projects such as contributing to the development of the first home pregnancy test and designing Sears wet/dry vacuum cleaners under the Craftsman brand.
The genesis of LightFilm stemmed from a simple observation during one of his routine activities: dropping off his son at hockey practice. Witnessing a car adorned with a team logo and a child watching cartoons through a flip-down DVD monitor, George had a moment of inspiration. He envisioned merging the worlds of branding and animation, setting the stage for the creation of LightFilm’s innovative light-up decals for car windows. Rolf Schwartz, with a financial background, complements George’s expertise with his strategic vision and business acumen.
Together, they embarked on a journey of extensive research, development, and investment, pouring approximately $750,000 into the venture to bring their vision to life. Their collaboration underscores a shared commitment to turning ideas into tangible products that resonate with consumers and disrupt traditional markets. Through their combined experience and dedication, George and Rolf have positioned LightFilm as a beacon of innovation, poised to revolutionize the automotive accessory industry with their groundbreaking product.
The Product
LightFilm’s flagship product is a revolutionary light-up decal designed for car windows, combining motion and light sensors to create eye-catching animations and branding opportunities. The decal operates with simplicity and efficiency, automatically activating at night to illuminate and animate, capturing the attention of passersby and enhancing the visibility of the vehicle.
The peel-and-stick application process ensures easy installation, requiring no tools and minimal effort from the user. Once applied, the decal seamlessly integrates with the car window, providing a flush-mounted appearance that enhances the vehicle’s aesthetics.
LightFilm’s product offers numerous benefits to consumers and businesses alike. For individuals, it serves as a unique way to personalize their vehicles, showcasing their interests, affiliations, or favorite brands through customizable designs and animations. Businesses can leverage LightFilm’s technology for promotional purposes, increasing brand visibility and engagement with potential customers on the move.
Customers can purchase LightFilm’s products directly from the company’s website or through authorized retailers. Pricing for the current wired version is around $10 for production costs, with wholesale prices set at $10 and retail prices at $19.99. The next generation of cordless, solar-powered decals is projected to offer even greater affordability and convenience, with production costs estimated to be $5 or less based on volume.
How It Went
The company’s position before Shark Tank
LightFilm LLC is a burgeoning company with ambitious goals and a solid foundation for growth. Strategically, LightFilm has positioned itself for success through partnerships with niche sectors and verbal commitments from major brands like Harley-Davidson. These partnerships not only validate the product’s appeal but also provide avenues for future growth and expansion into new markets. In terms of distribution, LightFilm has leveraged both online and retail channels to reach its target audience.
Customers can purchase the company’s products directly from its website or through authorized retailers, ensuring widespread accessibility and visibility. Additionally, the company’s plans to secure licensing deals with major brands further enhance its distribution network, potentially opening doors to new retail opportunities and market segments. Funding for LightFilm has primarily come from the founders’ personal investments, totaling approximately $750,000. This initial capital has been allocated towards research, development, patents, and legal due diligence, laying the groundwork for the company’s future success.
As for the company’s structure, LightFilm operates under the leadership of its founders, George Podd and Rolf Schwartz. While the exact organizational structure was not detailed, it can be inferred that the founders play integral roles in driving the company’s vision, strategy, and operations forward. Overall, LightFilm is well-positioned for growth and success, with strategic partnerships, a diverse distribution network, and a solid foundation of funding to support its expansion efforts. With a focus on innovation and customer satisfaction, the company is poised to disrupt the automotive accessory industry and establish itself as a leader in its niche market.
The Negotiations:
During the negotiations on Shark Tank, LightFilm LLC initially sought $100,000 for a 5% ownership stake. However, Daymond John saw the potential in LightFilm’s product and made a bold offer of $200,000 for a 70% ownership stake. His offer included immediate financing, manufacturing support, and licensing opportunities from his brands. This offer was accepted by George and Rolf. However, Robert Herjavec also expressed interest in the company and proposed a counteroffer of $100,000 for a 70% ownership stake, in partnership with Daymond John.
This joint offer aimed to split the investment while still acquiring the majority ownership. After deliberation, George and Rolf accepted the offer from both Daymond and Robert, seeing the benefits of immediate financing and the expertise brought by both investors. The negotiation showcased the importance of finding the right investors who could provide not only capital but also valuable resources and expertise to drive the company’s growth and success. Ultimately, LightFilm secured the investment they needed to propel their business forward and expand their innovative product into the market.
