Revolights before Shark Tank
Revolights is an LED light that attaches to the wheel of a bike for better visibility during the night. It was founded by Kent Frankovich after he experienced the hassle of riding in the dark himself one night on his way back from grad school. Kent’s mission was to lower the bicycle accidents caused at night by making cyclists more visible. With this idea and his team, Kent built a prototype and started his company through a Kickstarter campaign.
With his background, proactivity, and a great product, Kent was able to successfully obtain over $200,000 from Kickstarter in 2011. With this capital, Kent began selling his product primarily online and became very successful in less than a year. Needing capital to lower costs and seeking connections help grow his company, Kent applied to be on Shark Tank and was invited for Season 5.
Revolights on Shark Tank
Kent entered the Tank seeking $150,000 in exchange for 10% of his company. Kent gave a description of common lights seen on a bike in the front and back, but how 90% of night-time bike accidents are caused by inadequate side visibility that these lights lack. Kent presented his solution in Revolights which mount to a bike’s wheel so one can see the light from all angles. Kent presented Revolights through a video of how the product looks when riding at night. Daymond came up to try the product on a bike while Kent gave his story of how he came up with the idea when riding back one night from Stanford University. Impressed, all the Sharks came up to get a closer look at the LED lights while Kent gave more descriptions about the product.
Kevin wondered if the lights could be stolen, but Kent mentioned Revolights are solid rings so when one locks up their bike, they also lock up the rings. After mentioning he had patents, Kevin wondered if Kent was interested in licensing which Kent was considering after proving there was a market. Lori was interested in the numbers and Kent mentioned they grossed $600,000 in the ten months they’ve been in business, all of which was online. The individual sets sell for $139 while the full set sells for $229. Kent mentioned they were not profitable because he was putting the money back in the business. Lori was also wondering if there was any competition, but Kent mentioned there wasn’t anything as visible as Revolights. Daymond was impressed and knew there would be more offers coming, so he started with an offer of $300,000 for 30%. Kent was immediately hesitant about the equity ask, but Daymond told him to take a moment and consider it. Kevin also made an offer $150,000 for a 7% royalty which would drop to 1% when his money is paid back. Kent, however, immediately declined Kevin’s offer because he wanted an equity investment.
Robert was very astonished with Kent’s background and product so he offered him $300,000 for 10%, double the valuation he came in asking for! Daymond and Lori were astonished by the offer and Daymond knew he couldn’t get into a bidding war and went out. Kent thanked Robert for his offer, but wanted to hear other offers. Mark jumped in and agreed with Robert that Kent’s valuation was too low. Mark thought the valuation made no sense because of Kent’s background and sales. He then accused Kent of “screwing with the Sharks” as he felt Kent was insulting them with a deal that would never close. Kent immediately defended his valuation, stating that he valued the Sharks connections, but Mark interrupted by replying “you’re so full of crap!” Mark wondered why Kent didn’t put up even a small smile when Robert offered him a valuation double of what he asked and went out.
Kent mentioned capital being an issue for his company because no one has taken a salary and he saw Shark Tank as an opportunity to partner with someone to grow his company with their connections, not to come in and get publicity. Mark, however, felt that Kent should have immediately accepted Robert’s offer with that logic. Robert tried to defend Kent by saying he wasn’t getting the vibe as Kent being someone who wouldn’t close a deal. Mark and Daymond, however, wondered why Robert was letting Kent hear other offers after his generous offer. Kent, after hearing all the concerns and insults, decided to take Robert’s offer. As Kent left, Kevin confirmed that Mark accused Kent of only coming on for exposure which Mark agreed to. Robert, however, said he has faith in the people who come on the show.
Revolights after Shark Tank
Despite Mark’s opinion, the deal between Robert and Kent actually closed after the show with Robert making a twitter post right after the airing. The Shark Tank effect also help Kent raise an additional $1,000,000 aired from numerous groups such as the Sierra Angels. With these numerous investment groups in the company along with Robert’s investment, Revolights valuation has likely skyrocketed to what Mark thought the company would really be worth, if not more.
Revolights has grown drastically in the past couple years with the company expanding to multiple parts of the world such as Brazil, Singapore, and South Africa. As expected with this growth, Revolights is now available in numerous stores throughout the U.S. Revolights has also expanded its product line with a new products such as Revolights Eclipse and Revolights Coolidge. Kent is using an Indiegogo campaign to help jump Revolights Eclipse as well. There is no doubt that Revolights will continue to grow with the passion of Kent and the support from his team and investors.
This episode was one of the few cases where Mark got upset at the entrepreneur as he and Lori normally look for the positives in the business rather than focusing on any concerns. There was indeed logic behind Mark’s argument because, as we would see in later seasons, some entrepreneurs would come on the show just for the connections rather than actually needing capital and would not take the effort to find funding for their company beforehand even if they’re capable to do so. Kent, however, came in both for the connections and capital and expressed this genuinely which one must do when facing any criticism from the Sharks. It is usually better to wait to hear all the offers before making a decision even if it is an offer that is better than what one is looking for as it likely indicates more Sharks are interested and the chances of the deal being rescinded is low. However, one should come to the show with specific goals such as what Shark they want and the lowest valuation they will go and if they’re able to achieve their goal from the get-go, it is likely better to take it rather than waiting.
Where can I buy Revolights in 2016?
If you are interested in getting yourself some Revolights for the best price available click this link to apply all the available Amazon.com discounts. That said if you don’t feel like spending quite as much we’ve found a great alternative that’s about a quarter of the price here.
What are the reviews?
The product has fantastic reviews on websites such as Amazon, with most impressed with how the product really solves a problem. The only concern some have is the installation process, however, satisfised with everything else about the product as Revolights has no 1 or 2 star reviews. The company also has numerous followers on its social media outlets, indicating they are very active with their marketing and customers.