Third Wave Water
DEAL
EPISODE SUMMARY
🕓 Air Date: October 8, 2017
Asking For:
$100,000 for 10%
Investor:
Barbara Corcoran
Deal:
$100,000 for 25% + $1/unit royalty until $100,000 is recouped
PRODUCT SUMMARY
Third Wave Water is a product that enhances the taste of coffee by providing precise minerals to be added to distilled water for brewing.
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Background Story
Charles Nick, a Marine Corps veteran, and Taylor Minor, a coffee shop owner, teamed up to address the challenge of achieving the perfect cup of coffee at home. Nick’s coffee shop customers often used tap water, affecting the quality of the brew. Frustrated by the limitations of distilled water and the variable quality of tap water, they developed Third Wave Water to offer a simple solution for coffee enthusiasts worldwide.
The Product
Third Wave Water is a stick containing precise minerals that, when added to a gallon of distilled water, creates an ideal brewing environment. The founders emphasize that water composition is crucial, with the product enhancing the flavor, acidity, and overall quality of brewed coffee.
The stick simplifies the process, eliminating the need for expensive water systems and making it practical for home use. The product has been shipped to over 50 countries and all 50 states.
How It Went
The company’s position before Shark Tank
In the eight months of operation, Third Wave Water has gained over 1,200 customers worldwide, generating $66,000 in sales, a significant increase from the previous year’s $4,000. The company boasts a 95% gross margin, sending sample packs to customers for free to promote product adoption. The focus is on online sales, targeting a niche market willing to invest in a hassle-free way to achieve the perfect coffee.
The Negotiations:
The Sharks raised concerns about the niche market and the potential difficulty of making the product a mass-based offering. While several Sharks expressed doubts and chose to opt-out, Barbara Corcoran recognized the product’s potential. She offered $100,000 for 33.33% equity with a $1 per box royalty until recouping the investment.
The founders countered with a 25% equity offer, still repaying the $100,000 with the same royalty structure, which Barbara accepted, expressing confidence in her ability to market the product online and drive repeat orders. The deal concluded with Barbara Corcoran securing 25% equity in Third Wave Water.
