PowerPot before Shark Tank:
PowerPot is a revolutionary invention by two friends turned entrepreneurs David Toledo and Caleb Light who hail from Salt Lake City in Utah. PowerPot is a brand new multi-purpose thermo-electric generator which allows you to charge almost any device through its built-in USB port. That means you can charge your smart phone, camera and GPS device to name but a few. The PowerPot is unique in that it will use just about any source of heat available to it at all to boil water. This makes the PowerPot an ideal companion for going camping or for taking on outdoor trips. Not only will you have a device to boil some water but you can charge your smart devices or cameras via the USB port.
To get PowerPot onto the market the duo used a Kick-starter campaign and pre-sold one thousand units of the product. However, they needed more help, some business expertise and the right relationships to get the PowerPot out on the US market. It was then that David and Caleb decided it would be best to enter the shark tank. It seems like the duo have come up with a great idea that generates energy. However, will the sharks take bait and invest in the PowerPot?
PowerPot in the Shark Tank:
David and Caleb begin their pitch by introducing themselves and stating that they are looking for a $250,000 investment from the sharks in return for a ten per cent equity share in their company Power Practical, creators of the PowerPot. They go on to explain that PowerPot is the first of hopefully a range of potential products that Power Practical has launched. Caleb opens by using quite a simple example stating that everybody knows how to boil a pot of water and charge a cell phone. He goes on the explain that PowerPot brings these two very simple concepts together into one. David explains that the PowerPot is their first product. It takes fire and water and makes energy with no moving parts, an impressive feat it seems. This means that you have portable on demand power at any time of the day or night no matter where you are as long as you have a heat source and some water. David adds that the product is very easy to use also, another bonus of the product so Caleb says he will demonstrate exactly how it works.
The sharks are clearly amazed at how quickly power is generated from the PowerPot. Once the water has been added and exposed to the heat source, it is almost instantaneous. Caleb goes on to say that the PowerPot is a mini cooking vessel that creates energy like a miniature renewable power plant, no doubt a very innovative product for the sharks to sink their teeth into.
Mark and Daymond both agree that the idea and the product is ‘very cool’. Caleb then brings forward the PowerPot so that sharks can take a closer look at the packaging and the product. Kevin starts the questioning asking why water needs to put into it for energy to be produced. David explain that the PowerPot is a thermo-electric generator which means it takes the temperature difference from the bottom of the pot and the water inside the pot and turns it into electricity. However, as the temperature difference increases it becomes less effective. Robert asks Caleb how long would the PowerPot be able to sustain powering a device. Caleb explains that the PowerPot has an output of five watts meaning that the majority of the USB devices that we use every day would charge just as quickly as if they were plugged in regularly at home.
Kevin asks about a patent on the product to which David replies that it is still pending. Kevin seems unimpressed with the size of the PowerPot and asks what the plan of action is in terms of upgrading the size of the product. Caleb explains that for someone who would spend a lot of time outdoors or camping, the pot size is standard enough for what one may need it for but there are larger products available.
Daymond and Robert are keen to know where the product has been sold and Caleb goes on to inform the sharks that they part took in Kick-starter looking to raise $50,000 in thirty days but actually raised an impressive $126,000. Daymond asks what the duo want to do with the money if one of the sharks were to invest. Caleb states they are looking to do three main things with the money. The duo wants to sell more product, they need assistance getting sales relationship with some bigger stores and finally they want to expand the product line beyond just the PowerPot.
When Caleb claims the projection for next year’s sales is approximately two million dollars, the sharks are both surprised and amused at what they think is a ludicrous projection.
Kevin tells a story of his own camping days as a teenager and said he had nothing but bad experiences so therefore a product like this is not for him, He declares himself out.
Daymond agrees with Kevin and claims that unfortunately he does not see the market for the PowerPot. He feels that the business is too small for him to invest in and therefore declares himself out.
Lori acknowledges that the product is in an early phase of its development and she is unsure just how big the product is capable of becoming. For this reason she declares herself out.
Robert sets himself apart from the three sharks that have declared themselves out and claims that he loves the outdoors. He really admires the design and thinks it is the perfect size to accompany any camping materials you may need. However, he thinks the valuation of the product is crazy and for that reason alone he declares himself out.
This leaves one shark that can help Caleb and David get PowerPot to where they want it to be. But will Mark Cuban bite?
Mark asks the duo where they see the company in three years and what sort of markets are out there for them. David explains this product can be used in third world countries to generate power in a simple way. David also goes on to explain that they have a number of PowerPots in use in Uganda and the Power Practical team are keeping track of the usage of the products. Mark seems confused as he associates the product with charging a cell phone, not a very common device in Uganda. David goes on to tell the sharks that the larger fires they light in Uganda is used as the heat source and generates enough power to supply light to some of the houses.
Mark really likes what PowerPot is doing but he is still unsure. Mark finally concedes that he is willing to make an offer of the $250,000 the duo wanted but for a twenty per cent equity share in the company. Caleb is unsure and feels that the equity share is too much to ask. His response is not appreciated by the rest of the other sharks and they feel that Caleb and David do not realize just how valuable it is to have a shark on board. Mark stays silent throughout until Caleb comes back with a counter offer. $250,000 for a twelve per cent equity share of the company as well as an additional 3% in advisory options and a seat on the company’s board. Mark considers and the other sharks wait in anticipation before Mark agrees they have a deal. Caleb and David leave the shark tank very happy with the successful deal.
PowerPot update after Shark Tank:
Since David and Caleb did the deal with Mark Cuban on Shark Tank, PowerPot has been launched onto the US market. The relationships Mark has with big brands and distributors has meant that the PowerPot is now being distributed to almost every retail outdoor and camping venue in the United States. PowerPot is also available to buy for a reduced rate on Amazon.com at a pretty nice discount by clicking on this link here. Further to that, PowerPot is being made more readily available to third world countries just like in Uganda. It is helping the people of those countries charge electronics, boil water and power lights in some houses.
Overall it seems PowerPot has been one of the more successful products to come out of the Shark Tank. There is no doubt the future seems bright for Caleb, David and PowerPot.