Solsource – Solar Powered Grill
DEAL
EPISODE SUMMARY
🕓 Air Date: February 11, 2018
Asking For:
$500,000 for 3%
Investor:
Mark Cuban
Deal:
$500,000 for 4% + a board seat
PRODUCT SUMMARY
SolSource is a solar-powered grill that offers an eco-friendly and fuel-free solution for outdoor cooking, addressing health and environmental concerns related to traditional cooking methods.
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Background Story
Dr. Catlin Powers, the founder of Solsource, has a background in chemistry and environmental health, earning her doctoral degree from Harvard University. The inspiration for Solsource came during a scientific research project in the Himalayas, where she discovered the severe health impacts of indoor smoke from traditional cooking methods. Witnessing the struggles of local families, she developed the solar-powered grill to provide a cleaner and healthier cooking alternative.
The company faced challenges, including military lockdowns and ethnic conflicts, prompting a change in business models. Driven by a commitment to social impact, Solsource transitioned to a consumer market, experiencing recent success with the launch of a new, energy-efficient reflector material and plans for a solar battery system.
The Product
Dr. Catlin Powers, the founder of Solsource, has a background in chemistry and environmental health, earning her doctoral degree from Harvard University. The inspiration for Solsource came during a scientific research project in the Himalayas, where she discovered the severe health impacts of indoor smoke from traditional cooking methods.
Witnessing the struggles of local families, she developed the solar-powered grill to provide a cleaner and healthier cooking alternative. The company faced challenges, including military lockdowns and ethnic conflicts, prompting a change in business models.
Driven by a commitment to social impact, Solsource transitioned to a consumer market, experiencing recent success with the launch of a new, energy-efficient reflector material and plans for a solar battery system.
How It Went
The company’s position before Shark Tank
Solsource has achieved $1.3 million in sales, with a significant jump from $100,000 the previous year. The company initially operated in the Himalayas, employing a barter-based business model due to customers’ limited cash income. However, external challenges, including military lockdowns, led to a change in the business model. Solsource now sells through its website and Amazon.
The recent release of a new reflector material has contributed to increased sales, and the company plans to introduce a solar battery system for extended cooking hours. Solsource ‘s current trajectory aims to reach half a million in sales by the end of the year. The company’s journey involves overcoming obstacles in a challenging market, with a focus on delivering innovative, eco-friendly solutions.
The Negotiations:
During the negotiations on Shark Tank, Dr. Catlin Powers faced a challenging moment as the Sharks had reservations about Solsource ‘s focus on grills rather than the broader potential of its solar technology. The exchange started with Robert Herjavec expressing his hesitation, stating that the presentation didn’t align with the incredible technology Solsource possessed.
Barbara Corcoran and Lori Greiner followed suit, voicing their concerns. Mark Cuban, however, saw the potential beyond the grill. He acknowledged the company’s incredible technology and offered a deal that reflected his belief in Solsource ‘s broader capabilities. Cuban proposed $500,000 for a 5% equity stake, emphasizing the potential to apply Solsource ‘s reflector system to cars and even suggested the technology could compete with Elon Musk’s ventures in renewable energy.
Dr. Powers, recognizing the strategic alignment and the potential for broader applications, accepted Cuban’s offer. The negotiation concluded with a final deal of $500,000 for 4% equity and a board seat for Mark Cuban. Cuban’s belief in the potential to apply the technology to other industries demonstrated his understanding of the market and innovation, aligning with Solsource ‘s trajectory beyond outdoor cooking.
