Yono Clip Suction Cup Hanger
DEAL
EPISODE SUMMARY
🕓 Air Date: February 5, 2021
Asking For:
$150,000 for 15%
Investor:
Daymond John
Deal:
$150,000 for 30%
PRODUCT SUMMARY
The Yono Clip is a portable device that allows you to hang your belongings on almost any flat, non-porous surface to keep them off the ground and free from germs and dirt.
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Background Story
Yono Clip was pitched by founders Michael Green and Bob Mackey from Atlanta, Georgia. They met at a youth technology summit called STEM Fest and became great friends. Michael owns a company called Science for Everyone, where he presents interactive science shows at schools nationwide.
Bob, on the other hand, overcame a challenging upbringing, obtained his GED, and eventually became the president of Boys & Girls Clubs of North Central Georgia. Their shared commitment to making a positive impact on the world brought them together to create the Yono Clip.
The Product
The Yono Clip is a compact, portable device that attaches to various surfaces, such as metal, glass, and plastic, using suction technology. Users can hang their belongings on the Yono Clip’s carabiner, keeping them off the ground and away from germs and dirt.
The device works on both vertical and horizontal surfaces and is particularly relevant in the age of COVID-19, providing a practical solution for various scenarios, including gyms, restaurants, airports, and more.
The founders are seeking investment to transition from 3D printing to molded designs, reducing production costs.
How It Went
The company’s position before Shark Tank
Yono Clip is a fairly new company, only two months old at the time of the pitch. They had sales of $14,500 within those two months, with $10,000 coming from a Kickstarter campaign and $4,000 from their website and gym sales. The Yono Clips are currently 3-D printed in the founders’ garage, limiting their production capacity to around 10-15 units per week.
They were seeking $150,000 for 15% equity to help move from 3-D printing to molded designs, which would reduce production costs. They have not yet entered into partnerships or secured wholesalers. Their funding primarily came from Kickstarter and their website sales. The founders were actively involved in the day-to-day production of Yono Clips.
The Negotiations:
Initially, all sharks expressed concerns about the product’s competitiveness in a crowded market and questioned its immediate appeal to consumers. Each shark, except for Daymond John, eventually went out. Daymond John was interested in the founders and their commitment but was hesitant about the valuation and the amount of work required to scale the business.
He offered $150,000 for 30%, which the founders accepted after some consideration. Barbara Corcoran also offered her support and suggested she would help them find injection molders for better pricing but did not invest. Ultimately, Daymond John became their partner in exchange for 30% equity, offering his expertise and resources to help them grow their business.
