round21
DEAL
EPISODE SUMMARY
🕓 Air Date: March 25, 2022
Asking For:
$250,000 for 3%
Investor:
Kevin O'Leary
Deal:
$250,000 for 10% + 1.5% royalty of NFT sales
PRODUCT SUMMARY
round21 merges art and sports, offering digital and physical sporting goods with a focus on creativity and self-expression.
WATCH HERE
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Background Story
Jasmine Maietta, the founder and CEO of round21, originates from a small town in Oklahoma, USA. With a profound passion for basketball, she found her identity through the sport, playing at the high school and overseas levels before transitioning into coaching. Her deep-rooted connection to sports and her subsequent professional journey in marketing leadership roles at prominent companies such as Reebok, Hasbro, and Under Armour, as well as serving as the vice president of brand at Peloton, provided her with a comprehensive understanding of the intersection between sports, marketing, and consumer behavior.
Fueled by her diverse experiences and a desire to bridge the gap between sports and creativity, Jasmine conceptualized the idea of round21. Located in an undisclosed area, round21 aims to merge the worlds of art and sports, emphasizing self-expression and individuality within the realm of athletic products. With a focus on creating a platform that amplifies athletes, artists, and tastemakers, the company leverages digital sporting goods and unique NFT collaborations to extend the reach of their physical products.
Jasmine’s background, encompassing her personal connection to sports and her extensive marketing expertise, serves as the driving force behind round21’s mission to revolutionize the sports industry, making self-expression and creativity integral components of the athletic experience.
The Product
round21 offers a diverse range of sports-related products that seamlessly blend athletic functionality with artistic expression. Their product line includes creatively designed basketballs, soccer balls, ping-pong paddles, and other sporting goods. These items are meticulously crafted to promote individuality and self-expression among athletes and sports enthusiasts.
With a strong emphasis on visual aesthetics and unique designs, round21’s products cater to a market seeking distinctive sports equipment that transcends traditional standards. These products not only serve functional purposes but also act as a form of artistic representation and personal identity for athletes and sports aficionados.
In addition to their physical product offerings, round21 also provides digital non-fungible tokens (NFTs) that function as both a social brand and a membership pass to the round21 community. These digital collectibles allow users to access early product releases and exclusive events, fostering a sense of belonging and engagement within the round21 ecosystem.
Consumers can purchase round21 products and NFTs through their online platform, providing a convenient and accessible way to acquire these unique and visually captivating sports items. Prices for round21 products vary based on the specific item and design, with the company aiming to offer a balance between premium quality and artistic expression at a competitive price point within the sports market.
How It Went
The company’s position before Shark Tank
round21 has demonstrated promising growth and an innovative approach to merging art and sports. With total sales amounting to $354,000 for physical goods and an additional $20,000 generated from NFT sales, the company has shown a strong initial traction in the market. The strategic partnership established with a leading sporting goods retailer in the United States reflects the company’s successful efforts to expand its distribution channels and reach a broader customer base.
Despite the company’s notable revenue figures, round21 currently operates at a non-profitable status, with a monthly burn rate of approximately $10,000. However, the recent successful funding round of $1.39 million on a SAFE at a 6.25% post-money valuation has provided the company with the necessary financial support to continue its operations and pursue further growth opportunities. The company’s structure revolves around a dynamic team led by founder and CEO Jasmine Maietta, whose extensive background in basketball, coaching, and marketing has contributed to the strategic direction and vision of round21. Additionally, the company has cultivated partnerships with various artists, athletes, and tastemakers, fostering a collaborative environment that fuels creativity and innovation within the sports industry.
While specific details about the company’s wholesalers and customer base were not explicitly mentioned in the transcript, round21’s focus on promoting individuality and self-expression within the sports community suggests a diverse clientele ranging from athletes and sports enthusiasts to individuals with a keen appreciation for art and creativity. As the company continues to expand its product offerings and solidify its position in the market, maintaining strategic partnerships and nurturing customer relationships will be crucial to sustaining its growth trajectory and achieving long-term success.
The Negotiations:
During the negotiation process on “Shark Tank,” Jasmine Maietta presented her company, round21, to the Sharks, seeking a $250,000 investment for 3% of the business. Kevin O’Leary was the first Shark to make an offer, proposing $250,000 for 15% equity, emphasizing his expertise in the crypto space and his commitment to supporting the company’s growth. Mark Cuban followed suit, initially offering $250,000 for 15%, which he later revised to $250,000 for 11% and an additional 2% of every NFT sold, emphasizing the potential value he could bring to the company.
As negotiations continued, Jasmine countered with a proposal of $250,000 for 5% equity, along with an advisory share and 1% of every NFT sold, prompting a discussion on royalty deals. Ultimately, Cuban adjusted his offer to $250,000 for 10% equity and 1.5% of the NFTs, acknowledging the implications of a potential down round for the company’s existing investors. Jasmine accepted Cuban’s offer, recognizing the value Cuban could bring to the table with his infrastructure and expertise in the NFT space.
Other Sharks, including Lori Greiner, John, and Daymond, opted out of the deal due to various factors, such as a lack of expertise in the crypto space or a belief that the company’s revenue wasn’t substantial enough to scale. Robert Herjavec expressed interest in round21’s NFT domain but did not offer a deal, while Mr. Wonderful, Kevin O’Leary, stood firm on his terms, eventually being outbid by Mark Cuban’s revised offer. The negotiation process highlighted the challenges and opportunities of securing a strategic partnership, with Jasmine ultimately choosing Cuban as her business partner on “Shark Tank.”
