Nubrella Shark Tank Update
Hands Free Umbrella First Seen In Season 1, Episode , 1/29/2010
|Nubrella Umbrella Seen on the|
Shark Tank Show
The Nubrella was such a unique idea it had no problems getting accepted in the first season of the Shark Tank Show. The owner and inventor Alan Kaufman came into the Shark Tank looking for a $200k investment in exchange for a 25% equity stake in the Umbrella Business.
Alan claims the umbrella will never collapse due to strong winds and will keep you much drier, as a result, all while keeping your hands free for other tasks. The Umbrella currently sells for only $29 and costs Kaufman around $14 to make. Several hundred have already been purchased online with raving reviews from his customers.
Alan has already sunk over $900k of his own money getting this product manufactured and brought to market but needs the Sharks expertise to bring the sales up to the next level. This is Kevin Harrington's specialty and seems very interested in investing in this product.
He starts the negotiations off by offering $200k, but he wants controlling interest of 65% of the Numbrella Business. Ouch, this brings the valuation of the company from $800k all the way down to $300k, which doesn't come close to how much Alan has personally invested in the company. He needs their expertise to bring the Numbrella to the next level, but at what cost?
Daymond John also knowing a thing or two about marketing and distributing a new product, wants in on Harrington's offer and sweetens the deal for only 60% of the business. The percentage is still too high for Kaufman to consider, but he does come back with a 50-50 split if he can get both Sharks to invest in his invention.
The Difference of 1% and Controlling Interest for ANY BusinessThe Sharks Daymond and Kevin Harrington love this idea, but they need that one more percent to close this deal. Between the two investors, the Numbrella will take a lot of personal time making it into a success which they both agree, they need a combined controlling interest to make this into a major success story. The two Sharks drop the offer down to 51% of the Umbrella Business for the $200,000.00 Kaufman originally asking. Alan agrees to these term's, and a deal was made during his Shark Tank appearance.
Numbrella Shark Tank Update:Shortly after the deal was completed on the Shark Tank, Daymond John set up a meeting with Sharper Image to get this revolutionary product in their line up. Kaufman admits Sharper Image would be a great fit for this product and has been trying for over 2 years just to get his foot in the front door.
With a single phone call from Daymond John, the meeting was scheduled and Alan finally got the chance showing off the hands-free NuBrella. Needless to say, sharper Image loved the concept and agreed to carry the product during the meeting.
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