SunScreenr Sunscreen Coverage Camera
DEAL
EPISODE SUMMARY
🕓 Air Date: October 28, 2016
Asking For:
$800,000 for 10%
Investor:
Kevin O'Leary
Deal:
$800,000 for 33,30%
PRODUCT SUMMARY
Sunscreenr is a special viewer that utilizes technology to make invisible sunscreen visible, allowing users to see protected and unprotected areas on the skin.
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Background Story
Sunscreenr, hailing from Chapel Hill, North Carolina, emerged from the innovative mind of its founder and CEO, Dave Cohen. Dave, equipped with a Ph.D. in biochemistry and biophysics, boasts a career marked by expertise in building medical devices, including contributions to projects for the Defense Department and forensic applications. His scientific background and passion for developing impactful solutions laid the foundation for Sunscreenr.
The inspiration for Sunscreenr struck Dave amidst the paradox of increasing spending on sunscreen in the United States, reaching $1.3 billion annually, and the persistent rise of over 3 million new cases of skin cancer each year. Recognizing sunscreen as the primary defense against harmful U.V. rays but realizing its invisibility, Dave envisioned a way to make its effectiveness visible.
The concept of Sunscreenr was born from the idea that if people could witness the areas of their skin shielded by sunscreen versus those left exposed, they could better protect themselves from the dangers of U.V. rays. Drawing on his background in medical devices and biophysics, Dave developed Sunscreenr as a specialized viewer that utilizes technology, once only accessible to scientists, to achieve this remarkable feat.
The Product
Sunscreenr, an innovative product developed by Dave Cohen, is a groundbreaking solution in the realm of sun protection. This specialized viewer employs advanced U.V. technology to make invisible sunscreen visible, providing users with a clear visual representation of the areas on their skin that are adequately protected and those that are not.
The working mechanism of Sunscreenr is simple yet powerful. When users look through the device, protected areas appear dark, contrasting with the light areas representing uncovered skin. This allows individuals to identify spots where sunscreen has worn away due to factors like water, sand, or sweat, empowering them to reapply and maintain effective protection.
Sunscreenr serves various practical purposes, whether for a quick check on a child’s skin or a personal assessment of one’s sun protection. The device acts as a valuable tool for ensuring comprehensive coverage, particularly in situations involving water activities or prolonged sun exposure.
Priced at $109, Sunscreenr is currently in the prototype stage, with plans to ship the finished product in December. The product can be purchased through the Kickstarter campaign, where it has already gained significant traction, raising $93,000 within five weeks. This accessible pricing and user-friendly approach position Sunscreenr as a revolutionary product in the sun care market, promising enhanced visibility and effectiveness in protecting against the harmful effects of U.V. rays.
How It Went
The company’s position before Shark Tank
Sunscreenr has exhibited robust performance, highlighted by a successful Kickstarter campaign that surpassed expectations and garnered significant attention within a short span. The company, under the leadership of founder and CEO Dave Cohen, achieved remarkable financial support, raising $93,000 in just five weeks, well beyond the initial $45,000 target. This achievement underscores the market’s enthusiasm for the innovative sun protection solution offered by Sunscreenr.
While Sunscreenr is still in the prototype stage, the company’s strategic move to showcase its product on Kickstarter not only secured funding but also served as a testament to the strong interest and potential consumer demand. The successful campaign attracted the attention of five prominent sunscreen companies, two of which are multi-billion-dollar global entities, expressing interest in potential partnerships or licensing agreements. As of now, Sunscreenr has not disclosed specific details about existing partnerships, wholesalers, or customers beyond the interest from major players in the sunscreen industry.
The company’s financial health appears promising with the funds raised on Kickstarter, providing a solid foundation for product development and future growth. The current company structure includes Dave Cohen as the CEO, leveraging his background in biochemistry, biophysics, and experience in building medical devices. The success of the Kickstarter campaign and the interest from sunscreen industry giants position Sunscreenr favorably, indicating a potential for further strategic collaborations and market expansion. The company’s proactive approach to engaging with industry leaders and its ability to secure funding highlight its promising trajectory in the competitive sun protection market.
The Negotiations:
The negotiation process for Sunscreenr on Shark Tank was both dynamic and challenging, revolving around the pivotal factor of the company’s $8 million valuation. Founder Dave Cohen entered the Tank seeking $800,000 in exchange for a 10% equity stake in Sunscreenr. The Sharks, however, were quick to express skepticism and concern over the high valuation, challenging the self-awareness and market validation of the business. As the negotiations unfolded, the Sharks delved into the specifics of Sunscreenr’s performance, questioning the $8 million valuation just five weeks after launching on Kickstarter.
Despite Dave’s scientific background and the success of the crowdfunding campaign, the Sharks remained critical of the perceived lack of business acumen in the valuation. Multiple Sharks, including Lori Greiner and Robert Herjavec, opted out of the deal due to the valuation concerns and uncertainties about consumer adoption. Kevin O’Leary, known for his pragmatic approach, made the sole offer on the table—an $800,000 investment for a substantial 33 1/3% equity stake. This offer reflected a significant departure from Dave’s initial terms.
Ultimately, faced with the challenge of a high valuation and limited offers, Dave accepted Kevin O’Leary’s offer. The negotiation showcased the importance of pragmatism and a realistic valuation in the eyes of the Sharks, with Kevin leveraging his position as the last Shark to secure a deal that aligned with his investment criteria and the perceived value of Sunscreenr in the market. The negotiation outcome demonstrated the delicate balance entrepreneurs must strike between confidence in their product and a realistic assessment of its market value.
