Shark Tank Deal: Moki Doorstep Accepts $3 Million From Daymond John
Skitterphoto / Pixabay
Husband and wife Zach and Alyssa Brown came to the Shark Tank seeking $150,000 for 5% of their business, Moki Doorstep. Their patent-pending vehicle rooftop assistance device allows drivers and passengers to have easy rooftop access to their vehicles for activities like snow removal or securing cargo. The Moki Doorstep is made from aircraft grade aluminum and secures quickly and easily to the door latch, which is capable of holding 2500 pounds of vertical force and 2000 pounds of horizontal force without failure. The firefighter and nurse duo recognized a need in the market and designed the Moki Doorstep by using practical knowledge they had gained professionally about the weight-bearing components of a vehicle during emergency situations.
— Shark Tank (@ABCSharkTank) January 7, 2019
Although the Sharks love the product, the potential for licensing agreements and distribution deals that are already on the table for Moki Doorstep, they do have some concerns and reservations about investing in it. They feel that the product price is too high for the market which may lead to a market infiltration of low-cost competitors. They are also concerned about their ability to deliver the product to consumers as The Browns have generated approximately $110,000 in sales from their Kickstarter campaign which has left them back-ordered and unable to fulfill existing orders. The Sharks are also concerned about a royalty agreement of $1 per unit for 18 more years with an uncle who helped them launch their product.
— Kevin O’Leary (@kevinolearytv) January 7, 2019
— Novafan23 (@Novafan23) January 7, 2019
Initially, Daymond offered $450,000 for a 20% share in their company. Daymond’s offer was a significant jump in monetary and equity investment compared to their initial ask in the Shark Tank. While discussing this offer, The Browns mention that they would consider selling the entire company rather than give up that big of a share of equity. Daymond considers this and the valuation of the company and decided to make an offer of $3 million for the purchase of the entire company. He would also continue to pay royalties to Zach’s uncle for the remainder of their agreement. They accept his offer and sell the company, Moki Doorstep, in it’s entirety to Daymond John.
— Daymond John (@TheSharkDaymond) January 7, 2019
I’ve never seen a Shark buy a whole dang company before! Go head, Daymond! <a target="_blank" …read more
Read more here:: B2CMarketingInsider