LightFilm (also known as Light Film Decals) a company started by George Podd and Rolf Schwartz came to Shark Tank looking for $100k for 5% of the company. The product is a peel & stick lightup decal or power decal for car windows. The product has a wire but they’re working on a solar charged decal which would be wireless. According to Podd and Schwarts, the key reason for the product is brand affinity – sports teams. The idea is to bring stickers & decals to a new level per the founders.
Sales for the company are zero and George has invested $750,000 into the company which went into R&D, patents, due diligence and the legality (street legal). It costs $10 per unit and the next gen product is said to cost $5. They expect to sell the solar powered product for $10 wholesale and retail for $19.99.
They have a technology but no marketing. Robert Herjavec asks how is this a big business. And they’ll need a lot of cash to strike license deals which gave all the sharks pause and concern.
Kevin Harrington opted out because he didn’t think the money they needed was sufficient. Kevin O’Leary didn’t feel even a million would solve the distribution problem and so also opted out. Robert Herjavec agreed that no amount of money will bring it to market and so also said out. Barbara Corcoran didn’t like the product and so also opted out.
Daymond John was only interested shark in the company only if the 2nd phase product works (wireless solar based product) and wants 75% of the company for $100k and that he’d give unlimited financing. Daymond John said they’d never have to look for another investor. He said he could give them a few licenses day one that he owns like Coogi which he expects could get them to $2 million in sales. Kevin O’Leary said Daymond was a vampire.
George countered with $750,000 countered for 51% of the company to recoup their investment.
Robert and Daymond collaborated on the offer. They would get $100,000 for 70% of the company. They’d get $.75 on every dollar of profitability until they recoup $750,000 of investment.
Again, George and Rolf countered for $200,000 but ultimately accepted the $100,000 offer. Herjavec realized that the company was on its last legs and so went in for the proverbial kill. Not sure if that is how angel investors and venture capital firms normally behave?