SBU (Self Balancing Unicycle)
DEAL
EPISODE SUMMARY
🕓 Air Date: October 26, 2012
Asking For:
$300,000 for 10%
Investor:
Robert Herjavec, Kevin O’Leary (50/50)
Deal:
$300,000 for 33%
PRODUCT SUMMARY
SBU is the first and only electric self-balancing unicycle, offering intuitive motion and portability for easy transportation.
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Background Story
Daniel Wood and David Martschinske present their innovative product, SBU, on Shark Tank. They explain the technology behind it, highlighting its self-balancing feature and ease of use. The founders express confidence in their product’s potential, citing its ability to appeal to a wide audience. They emphasize their prior success in selling the initial batch and their plans for future growth. Despite encountering skepticism from some sharks, they manage to secure a deal with Robert and Barbara, who are impressed by the proprietary technology and the potential for the mass transport market.
The Product
SBU is an electric self-balancing unicycle equipped with smart sensors that maintain balance for the rider. It operates through intuitive motion control, eliminating the need for pedaling. With a top speed of 15 miles per hour and a range of 10 miles on a single charge, it offers convenience and efficiency for short-distance transportation.
The retail price is $1,800, and the founders have already sold the initial batch of 100 units through their website. They also mention plans to license their technology to e-bike manufacturers and have already received royalties from one company.
How It Went
The company’s position before Shark Tank
SBU has just finished manufacturing its first batch of units, which sold out quickly. The founders have invested $350,000 in the initial production run and have already generated revenue by selling units directly from their website. They have plans for future growth, including licensing their technology to other manufacturers. The founders express confidence in the product’s potential and their ability to capture a significant share of the market.
The Negotiations:
Initially met with skepticism from some sharks due to concerns about the viability of the product and overseas manufacturing, the founders manage to convince Robert and Kevin of the technology’s potential. They disclose their plans for future growth, including licensing their technology and generating revenue through royalties.
Robert and Kevin are impressed by the proprietary technology and the potential for the mass transport market, leading to a deal for $300,000 for 33% equity with Robert and Kevin. Despite initial doubts, the founders successfully secured investment and expressed excitement about the future of their company.
