SparkCharge Portable EV Charger
DEAL
EPISODE SUMMARY
đź•“ Air Date: October 16, 2020
Asking For:
$1,000,000 for 6%
Investor:
Mark Cuban, Lori Greiner (50/50)
Deal:
$1,000,000 for 14%
PRODUCT SUMMARY
SparkCharge’s product, the Roadie, is the world’s first and only portable, modular, and ultrafast EV charger that addresses range anxiety for electric vehicle owners by bringing the charging station to them.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
SparkCharge, founded by Chris Ellis and Josh Aviv, is based in Somerville, Massachusetts. The founders recognized the growing popularity of electric vehicles (EVs) and identified the issue of range anxiety as a barrier to EV adoption. They designed the Roadie, a portable EV charger that can be deployed anywhere, eliminating the need for fixed charging stations.
Their product targets businesses like OEMs, roadside companies, and on-demand services, allowing them to provide convenient charging solutions for EV owners. The founders’ commitment to sustainability and their strategic approach to funding through a mix of venture capital and grants enabled them to develop a proprietary product and establish a manufacturing facility in Buffalo, New York.
The Product
The Roadie is a portable, modular EV charger that can be connected to provide the desired charging range to electric vehicle owners. It offers fast charging at a rate of one mile every 60 seconds, significantly reducing charging time. The units are modular, allowing them to be interconnected to meet various charging needs.
SparkCharge primarily sells these units to businesses that offer charging services to EV owners on demand. The device is designed to work with various electric vehicle models and can easily adapt to changing technology.
Price: The cost structure involves a $2,500 production cost per module, a $1,000 nonrefundable deposit, and a $150 monthly fee for usage.
How It Went
The company’s position before Shark Tank
In the past six months, SparkCharge has achieved over half a million dollars in sales, with a projected sales target of over $1 million for the current year. The company aims to reach close to $10 million in sales by the end of the following year. The Roadie is patented and has been developed from scratch, and the company has also secured funding from both venture capital and grants.
The Negotiations:
Kevin O’Leary and John declined to invest, and the negotiation mainly revolved around the valuation and equity stake. The entrepreneurs sought $1 million for a 6% stake, but Mark Cuban and Lori Greiner proposed the entrepreneurs make a counteroffer . The entrepreneurs made a counter offer of $1 million for a 10% stake (split equally between them), along with an additional 2% adviser equity for each of them and a board seat.
After some negotiation, the sharks accepted the offer, and a deal was made with Mark Cuban and Lori Greiner investing $1 million for a total stake of 10%, 4% advisory roles, and 1 board seat in the company. Despite earlier doubts, the entrepreneurs successfully secured the investment they were seeking.
