ROQ Innovation Head Lightz Beanies
DEAL
EPISODE SUMMARY
🕓 Air Date: January 14, 2022
Asking For:
$200,000 for 15%
Investor:
Kevin O'Leary, Peter Jones (50/50)
Deal:
$200,000 for 20% + $1/unit royalty until $600,000
PRODUCT SUMMARY
Headlightz is a hat with a removable and rechargeable LED light, providing hands-free lighting for various activities.
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Background Story
Roq Innovation, based in the bustling city of Chicago, Illinois, was established by Raquel Graham, a determined and resilient entrepreneur with a passion for innovation. Raquel’s journey was marked by significant challenges and personal struggles, which served as a testament to her unwavering perseverance and resilience. Before delving into the entrepreneurial world, Raquel faced a pivotal health crisis that profoundly impacted her life. Overcoming a misdiagnosis and battling a life-threatening illness, she displayed extraordinary strength and courage.
During her recovery, she conceptualized the idea for Headlightz, drawing inspiration from her own experiences and the need for a convenient hands-free lighting solution for various everyday activities. Her personal struggle with limited visibility in challenging situations sparked the idea for a practical and versatile product that could provide a solution for people in similar situations. With her background in design and a deep understanding of the importance of both functionality and style, Raquel crafted Headlightz as a unisex, one-size-fits-most hat integrated with a removable and rechargeable LED light.
Her vision was to create a product that not only fulfilled the practical need for illumination but also seamlessly blended into everyday attire, ensuring that individuals could carry out their tasks efficiently without compromising on style. Through her sheer determination and entrepreneurial spirit, Raquel transformed her vision into a successful business venture, securing partnerships with renowned media platforms and expanding her reach beyond traditional retail channels.
The Product
Headlightz, the flagship product of Roq Innovation, is a cutting-edge solution for individuals seeking hands-free lighting in various scenarios. Designed as a unisex, one-size-fits-most hat, Headlightz is equipped with a detachable and rechargeable LED light, providing up to 8 hours of continuous illumination on a single charge. The innovative LED light can be conveniently charged using any standard USB port or computer, ensuring hassle-free recharging wherever one may be.
This multifunctional hat serves as an indispensable tool for activities such as dog walking at night, outdoor exercising, or even handling tasks in low-light conditions, eliminating the need for cumbersome handheld flashlights. Additionally, its practical design and machine-washable feature make it a convenient and durable accessory for daily use.
With a retail price ranging from $19.99 to $24, Headlightz is accessible for purchase through various platforms, including the company’s official website and popular media channels like the Home Shopping Network. Its unisex design and adaptable sizing make it suitable for a wide range of consumers, catering to the practical needs of outdoor enthusiasts, pet owners, DIY enthusiasts, and individuals seeking hands-free lighting solutions in diverse settings.
How It Went
The company’s position before Shark Tank
Roq Innovation has demonstrated remarkable growth and resilience, positioning itself as a prominent player in the market for innovative hands-free lighting solutions. With a lifetime company valuation of $2.4 million, the company has exhibited a robust financial standing, propelled by the success of its flagship product, Headlightz. Generating a substantial revenue of $1.1 million solely from Headlightz sales in the previous fiscal year, the company has solidified its presence in the competitive market, carving out a niche for itself in the outdoor and utility accessory industry.
The company has forged strategic partnerships with influential media platforms, including the Home Shopping Network, “Good Morning America,” and “The View,” amplifying its brand visibility and reach. This collaborative approach has enabled Roq Innovation to tap into a diverse customer base, comprising outdoor enthusiasts, pet owners, fitness enthusiasts, and individuals seeking practical solutions for low-light scenarios. Through its various marketing endeavors and media collaborations, the company has effectively expanded its customer base and strengthened its brand recognition.
In terms of funding, Roq Innovation has primarily relied on its generated sales revenues, demonstrating a self-sustaining and profitable business model. With no disclosed external investment sources, the company has strategically utilized its profits to drive further product development, marketing initiatives, and operational expansion. This prudent financial management has allowed the company to maintain a healthy balance between innovation and sustainability, fostering steady growth and development within the organization.
The Negotiations:
The negotiations for Roq Innovation’s Headlightz product on Shark Tank presented a compelling display of investor interest and strategic bargaining. Raquel Graham, the resilient founder of Roq Innovation, initially sought a $200,000 investment in exchange for a 15% stake in her company. The negotiations commenced with an offer from Kevin O’Leary, proposing a royalty deal without equity, aiming for $2 per hat sold until his initial investment was recouped, followed by $1 per hat thereafter.
However, as the negotiations progressed, a joint offer emerged from Kevin O’Leary and another investor, Peter, who proposed a $200,000 investment for a 20% stake and a royalty of $1 per unit sold until they recouped $600,000, after which the royalty would cease. Raquel carefully considered the terms and eventually accepted this joint offer, signaling a successful outcome for the negotiations.
The negotiation process witnessed a lively exchange of viewpoints, with various Sharks expressing their admiration for Raquel’s journey and entrepreneurial spirit. While some Sharks highlighted concerns about patent pending issues and the need for streamlined business operations, others acknowledged Raquel’s remarkable resilience and determination in the face of personal challenges. The negotiation’s culmination with the acceptance of the joint offer underscored the investors’ confidence in Roq Innovation’s potential for further growth and expansion, solidifying a partnership that aimed to leverage both financial support and strategic expertise to propel the company to new heights.
