Rocketbook Reusable Notebook
NO DEAL
EPISODE SUMMARY
🕓 Air Date: May 12, 2017
Asking For:
$400,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Rocketbook offers reusable notebooks that integrate traditional pen-and-paper note-taking with digital cloud storage, allowing users to scan and organize their notes instantly.
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Background Story
Joe and Jake, the dynamic duo behind Rocketbook, entered the Shark Tank with a vision to bridge the gap between traditional note-taking and modern digital convenience. The founders, Joe and Jake, introduced themselves as the minds behind the futuristic version of a common product – notebooks. Their journey into the world of stationery innovation is driven by a deep understanding of the enduring connection people have with pen and paper, a sentiment that transcends both students and successful entrepreneurs like the Sharks.
Joe and Jake’s backgrounds were not extensively covered, but their passion for combining analog and digital elements shines through. The product, Rocketbook, is a testament to their creative problem-solving. The idea was born out of the recognition that while pen and paper remain the most natural forms of expression, our lives are increasingly digital and interconnected. This realization led to the development of a notebook that seamlessly integrates handwritten notes with digital cloud storage.
The Rocketbook concept centers around customization and user control. The founders designed a notebook with symbols at the bottom of each page, allowing users to dictate where their notes go in the digital realm. This customization, coupled with the innovation of making the notebook reusable through microwave erasing, showcases Joe and Jake’s commitment to offering a unique and practical solution to a common problem.Joe and Jake’s exuded entrepreneurial spirit and a keen understanding of the evolving needs of today’s tech-savvy yet nostalgically-inclined consumer.
The Product
Rocketbook, priced at $27, is not just a notebook; it’s a clever fusion of traditional handwriting and modern digital convenience. The key feature lies in its seamless integration of pen-and-paper note-taking with instant digital storage. Each Rocketbook page is adorned with seven customizable symbols at the bottom, empowering users to designate destinations for their notes through the Rocketbook app.
The process is straightforward: users write their notes in the Rocketbook, then scan them using the Rocketbook app. The app facilitates instant organization by sending notes to popular cloud services according to the user’s predefined symbols. This digitization ensures that users have access to their notes across various devices.
The flagship product, the Rocketbook Wave, takes innovation a step further by being reusable. The pages can be erased by placing the notebook in the Rocket Reset Chamber, which involves microwaving with a mug of water on the designated circles on the cover. This quirky yet effective feature adds a sustainable dimension to traditional note-taking.
Rocketbook’s appeal extends beyond the gimmicky microwave erasing, emphasizing the Rocket System’s benefits. The notebook caters to users who appreciate the tactile experience of writing on paper but seek the convenience of digital organization. The engineering behind the notebook includes pending patents, ensuring its microwave-safe construction.
How It Went
The company’s position before Shark Tank
Based on the information disclosed during the pitch, Rocketbook demonstrated robust sales performance, having generated an impressive $2.2 million in revenue. The founders, Joe and Jake, proudly shared that they had sold around 75,000 units of their innovative notebook. The episode focused more on the product’s unique features and the founders’ pitch to the Sharks rather than delving into the intricate details of Rocketbook’s business relationships and financial structure.
Rocketbook’s customer base seems diverse, as the founders mentioned that the product appeals to a wide audience, from students to professionals. The product’s popularity is evidenced by the significant sales figures, suggesting a positive reception among consumers. While the episode did not provide information on Rocketbook’s current capital, profits, or losses, the founders expressed confidence in their vision for the company’s future.
They outlined ambitious plans to position Rocketbook as a major brand and the operating system for paper in the next five years. The company’s structure, including its organizational hierarchy and key team members, was not discussed in detail during the pitch. The focus of the episode was primarily on introducing the innovative product and gauging the Sharks’ interest in a potential investment deal.
The Negotiations:
The negotiations for Rocketbook in the Shark Tank took an unexpected turn, showcasing both the enthusiasm for the product and the skepticism from the Sharks. Joe and Jake initially sought a $400,000 investment in exchange for a 10% stake in their company. Mark Cuban was the sole Shark who expressed interest, offering a deal to invest the requested amount for a 20% stake, doubling the equity initially proposed by the founders.
However, despite the impressive sales figures and the unique features of the Rocketbook, the other Sharks quickly bowed out of the negotiation. The concerns raised by some Sharks revolved around the long-term appeal of the product and the perceived complexity of its usage, particularly the necessity of microwaving the notebook to erase its contents and the multiple steps involved in the process.
While Mark Cuban’s offer reflected a belief in the product’s potential, Joe and Jake decided not to accept the deal. They graciously acknowledged Mark’s interest but expressed their understanding of the Sharks’ concerns. The episode concluded with Rocketbook leaving the Shark Tank without securing a deal. The founders, undeterred by the lack of investment, remained positive and ready to continue their journey, highlighting that not every pitch results in a fit with the Sharks.
