UniKey Technologies
DEAL
EPISODE SUMMARY
🕓 Air Date: May 18, 2012
Asking For:
$500,000 for 33%
Investor:
Kevin O'Leary, Mark Cuban (50/50)
Deal:
$500,000 for 40%
PRODUCT SUMMARY
UniKey revolutionizes access control by integrating keys into mobile phones, allowing users to remotely control locks and manage access permissions.
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Background Story
Phil Dumas, the founder of UniKey Technologies, introduces his company on Shark Tank, highlighting his passion for access control and the lack of evolution in key technology over centuries. With a degree in electrical engineering and experience in private equity, Dumas aims to disrupt the market by simplifying access control through mobile technology. He underscores the versatility of UniKey in managing access permissions, from one-time access for visitors to permanent access for family members, emphasizing the importance of user control and security.
The Product
UniKey is a technology that integrates traditional keys into mobile phones, enabling users to remotely control locks. It functions by utilizing Bluetooth technology, allowing users to lock and unlock doors within range. Access permissions can be managed through the UniKey app, enabling users to grant temporary or permanent access to others.
The product offers convenience, enhanced security, and flexibility in managing access to various spaces, such as homes, offices, or rental properties. UniKey works with existing locks, requiring a simple retrofit process for installation. The estimated market price for UniKey is between $149 to $199, depending on partnerships with manufacturers like Black & Decker.
How It Went
The company’s position before Shark Tank
UniKey Technologies is in the early stages of development, with a focus on securing patents and establishing partnerships with lock manufacturers like Black & Decker. The company’s primary source of funding is through investments sought on platforms like Shark Tank.
With plans to further develop the technology and expand into various markets, UniKey aims to achieve profitability with additional funding rounds. The company’s structure revolves around its founder, Phil Dumas, who brings expertise from his background in electrical engineering and private equity.
The Negotiations:
Phil Dumas initially seeks $500,000 for a 33% equity stake but faces challenges regarding the high product cost and development risks. Sharks express concerns about market competitiveness and the need for additional funding rounds. Mark Cuban and Kevin O’Leary make a joint offer of $500,000 for 40% equity.
After negotiations, Cuban and O’Leary secure a deal with Dumas for $500,000, granting them 40% equity, with assurances of additional board control and support in future funding rounds. Despite competing offers, Dumas accepts Cuban and O’Leary’s proposal, valuing their expertise and financial backing.
