Power Pot
DEAL
EPISODE SUMMARY
🕓 Air Date: April 11, 2014
Asking For:
$250,000 for 10%
Investor:
Mark Cuban
Deal:
250,000 for 12% equity, along with 3% of advisory shares
PRODUCT SUMMARY
The PowerPot is a cooking vessel that doubles as a mini renewable power plant, allowing users to charge their electronic devices by boiling water.
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Background Story
Power Practical, founded by David Toledo and Caleb Light, is a venture born out of the intersection of innovation and outdoor exploration. Both founders bring unique backgrounds and expertise to the table: Toledo, presumably with a background in engineering or related fields, and Light, with a penchant for outdoor adventures. The idea for Power Practical emerged from their collective experiences in the great outdoors. Recognizing the increasing reliance on electronic devices even in remote settings, Toledo and Light saw an opportunity to create a solution that combined their expertise in engineering with their love for nature.
They observed the inconvenience and limitations of traditional power sources while camping or hiking and envisioned a product that could harness the elements available in such environments to generate electricity. Driven by their shared vision to provide portable power solutions for outdoor enthusiasts, the founders embarked on a journey to develop the PowerPot. Their journey began with a successful crowdfunding campaign on Kickstarter, where they surpassed their fundraising goal and received validation for their concept.
This early success propelled them forward, allowing them to bring their product to market and establish partnerships with retail outlets. With a commitment to innovation and a passion for enabling outdoor adventures, Toledo and Light continue to lead Power Practical on its mission to provide on-demand power solutions for outdoor enthusiasts worldwide. Their dedication to combining technology with the natural world underscores their belief in the transformative power of innovation to enhance outdoor experiences.
The Product
The PowerPot, created by Power Practical, is a revolutionary portable power solution designed for outdoor enthusiasts and emergency preparedness. It operates on a simple yet ingenious principle: converting heat from a cooking vessel into electricity. Users can simply fill the PowerPot with water, place it over a heat source such as a campfire or portable stove, and plug in their devices via the provided regulator cord.
As the water boils, the temperature difference between the pot’s bottom and the boiling water generates electricity, which can then be used to charge USB-compatible devices like smartphones, cameras, or GPS units. This innovative device offers several benefits. Firstly, it provides a reliable source of power in remote outdoor locations where traditional electricity sources may be unavailable.
Secondly, it eliminates the need for carrying extra batteries or solar panels, reducing the weight and bulk of outdoor gear. Additionally, the PowerPot’s versatility makes it suitable for various outdoor activities, including camping, hiking, backpacking, and fishing. The PowerPot can be purchased online through the Power Practical website or through various retail channels, including outdoor equipment stores.
Pricing may vary depending on the model and any bundled accessories, but typically ranges from around $100 to $150. With its durable construction, compact design, and ability to generate power in any weather conditions, the PowerPot offers outdoor enthusiasts a convenient and eco-friendly way to stay connected while off the grid.
How It Went
The company’s position before Shark Tank
Power Practical has demonstrated strong performance and growth since its inception, establishing itself as a leader in portable power solutions for outdoor enthusiasts and emergency preparedness. The company’s strategic partnerships, retail distribution channels, and innovative product offerings have contributed to its success. Power Practical’s primary partners include retailers specializing in outdoor equipment and emergency preparedness gear. These partnerships have enabled the company to expand its reach and access new customer segments. Additionally, Power Practical collaborates with manufacturers and suppliers to ensure the quality and reliability of its products.
The company’s customer base primarily consists of outdoor enthusiasts, campers, hikers, backpackers, and individuals preparing for emergencies or off-grid living. By targeting these niche markets, Power Practical has been able to carve out a unique position for itself and build a loyal customer following. In terms of funding, Power Practical initially relied on a successful crowdfunding campaign on Kickstarter to finance the development and launch of its flagship product, the PowerPot. Since then, the company has secured additional funding through various sources, including private investors and venture capital firms.
Power Practical’s current structure likely includes key departments such as product development, sales and marketing, operations, and customer service. The founders, David Toledo and Caleb Light, likely oversee the company’s strategic direction and day-to-day operations, supported by a dedicated team of employees. Overall, Power Practical is well-positioned for continued growth and success in the portable power industry, with a strong foundation, innovative products, and a commitment to meeting the needs of its customers.
The Negotiations:
During the negotiations on Shark Tank, Power Practical founders David Toledo and Caleb Light sought a $250,000 investment for 10% equity in their company. Despite initial interest from the sharks, several expressed concerns about the scalability of the business and the size of the market. Mark Cuban made an offer of $250,000 for 20% equity, which was declined by the founders due to existing investor commitments. After negotiation, they reached a deal with Cuban for $250,000 for 12% equity, along with 3% of advisor options and a seat on the board.
While this offer represented a higher equity stake than initially proposed, it also provided valuable expertise and connections through Cuban’s involvement. Throughout the negotiation process, the founders emphasized the importance of strategic partnerships and the potential for social impact in emerging markets. They recognized the value that Cuban could bring to the table and ultimately decided to accept his offer, viewing it as an opportunity to accelerate the company’s growth and expand its reach.
The negotiation highlights the balance between securing investment capital and maintaining control over the company’s direction. By carefully weighing their options and considering the long-term implications of each offer, Toledo and Light ultimately made a decision that they believed would best position Power Practical for success in the competitive portable power market.
