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HyConnn LLC and was created by a firefighter and aims to revolutionize the way fire departments provide water to a fire scene. It was presented by founder Jeff Stroope who sought $500k for 40% equity. Per Stroope, HyConn is the quickest way to connect and disconnect from a fire hydrant. The speed vs. a standard hose is significant with a connection speed of 3 seconds and less than 1 second to disconnect which is 8 to 30 seconds faster than the typical process. There are 33,000 fire departments in the US.
He visited 11 departments and got 4 purchase orders. The products sell for $215 for smaller HyConn and $335 for the larger HyConn unit. Most fire departments would spend about $7000 according to Stroope. Robert Herjavec thought he needs to get municipalities to require this.
Kevin O’Leary said why not distribute through existing channels that distribute to fire houses. Stroope said he tried to sell the patent but they didn’t want it but were willing to distribute. Daymond John said that distributors weren’t willing to buy the patent so they don’t believe in the market.
Robert Herjavec thought why not use this at oil rigs or with household hoses. Jeff pulled a household focused Hyconn attachment out of his pocket at that point. Not sure what he was waiting for, but the Sharks ears perked up at this point.
Then Mark Cuban brought the heat and offered $1.25 million for the entire company and a 3 year employment contract for Stroope at the rate of $100,000 to run the show and a 3% royalty on top of that if certain milestones are hit.
Kevin O’Leary said it was nonsense and offered $500,000 for the garden hose piece and said he can keep the fire hose element. And he’ll get a 5% ongoing royalty.
Robert Herjavec opted out saying he can’t offer $1.25 million like Mark Cuban.
Cuban countered O’Leary’s offer with the same price and employment contract but upped the royalty rate to 7.5%. Jeff Stroope accepted Mark Cuban’s offer. Herjavec wondered why Cuban came in right at the high end of the range and Cuban said the company will be worth $50-$60 million at some point so $1 million vs. $1.25 didn’t make a difference. Nice to be a billionaire we guess.
Check out how we analyzed Shark Tank investment data for seasons 1 and 2. We also highlighted that Mark Cuban has written the largest checks in season 2 and that Daymond John has invested the most money and that Barbara Corcoran has invested the most. And we’ve also discussed whether Shark Tank TV is realistic to the real world.