Radiate – Portable Campfire
DEAL
EPISODE SUMMARY
🕓 Air Date: January 28, 2018
Asking For:
$50,000 for 20%
Investor:
Robert Herjavec
Deal:
$100,000 for 25%
PRODUCT SUMMARY
Radiate Portable Campfire is a convenient, easy-to-use, and portable campfire solution that provides heat, light, and ambiance without the hassle of traditional campfires.
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Background Story
Radiate Portable Campfire was presented on Shark Tank by Brent and Bryan, who shared their passion for the outdoors and the joy of campfires. Recognizing the challenges of starting and maintaining traditional campfires, they set out to create a solution that was easy to use, store, and carry. The idea for Radiate Portable Campfire was born out of the founders’ personal experiences with the inconveniences of traditional campfires, such as the difficulty of starting, maintaining, and cleaning up, as well as the challenge of finding wood in the dark.
The product was designed to cater to a wide audience, making campfires accessible and hassle-free for families and individuals who may not be experienced outdoor enthusiasts. The founders recounted their vacation experience in Kauai, where they used the portable campfire and received enthusiastic inquiries from onlookers, sparking early interest in the product.
The Product
Radiate Portable Campfire is a compact and lightweight campfire solution that comes in a tin container. The product is easy to light, store, and carry, providing a convenient alternative to traditional campfires.
It is designed for use in various settings, including the beach, tailgating, camping, and even in the backyard. The campfire is created by igniting briquettes inside the tin, producing heat and light for up to six hours.
The product offers different scents, including a mosquito-repelling option with eucalyptus and lemon oil. Additionally, there is a s’more kit for a complete outdoor experience. The founders emphasized the convenience of the product, especially in locations where traditional fires may not be allowed, as the portable campfire is contained and can be easily shut on and off.
Radiate Portable Campfire is priced at $25, with a wholesale cost of $12.50. The founders explained that the product weighs 4 pounds, and while shipping one unit costs about $9.50 in the U.S., shipping two units costs only about $13.00, addressing potential concerns about the weight and shipping costs.
How It Went
The company’s position before Shark Tank
At the time of the Shark Tank pitch, Radiate Portable Campfire had been in business for 30 days, during which they sold 1,100 units. The founders initially crowdfunded 400 units to prove the concept, surpassing their $1,000 goal. Subsequently, they sold an additional 600 units through traditional wholesale retail channels, targeting surf shops, camp stores, and sporting goods stores. The product had gained traction in various retail outlets, with the founders citing examples of successful placements in surf shops and other outdoor-related stores.
They also shared a positive anecdote from their vacation in Kauai, where interest in the product was sparked by fellow vacationers. The company’s current structure, partners, and financial details were not extensively discussed in the pitch. However, the founders showcased a promising start, having achieved early success in sales and gaining interest from both consumers and retailers.
The Negotiations:
The negotiation process started with the founders seeking $50,000 for a 20% stake in their business. Mark Cuban and Lori Greiner opted out of the deal, citing concerns about the product’s burn time compared to other existing solutions like InstaFire. Barbara Corcoran, Rohan Oza, and Robert Herjavec expressed interest in the product, with Barbara making the first offer of $50,000 for 25%. Rohan Oza followed with a similar offer, emphasizing his larger network and connections that could benefit the product.
Robert Herjavec, known for his distribution expertise, then made a compelling offer of $100,000 for 25%, doubling the investment amount. The founders accepted Robert’s offer, expressing gratitude for his passion and belief in the product. The negotiation showcased the founders’ ability to secure a favorable deal with Robert Herjavec, who not only shared their enthusiasm for the product but also brought valuable distribution expertise to the table.
