Animated Lure Before Shark Tank
Fishing is not only an economic activity. It is also a very popular pastime activity and people all around the world get into their boats and enjoy a few hours in a lake, ocean, or even at a river bank. A good catch is more than a day’s dinner.
Sobhan Sanaee was the son of immigrants to the United States. He worked as a project manager in a manufacturing plant. In his spare time, he went fishing with his father and it was an activity they really enjoyed. At some point, while they were fishing, Sobhan saw that they had a problem.
Traditional lures took a long time to set up and the possibility of snagging another lure in the water was high. In addition to this, traditional lures such as worms are bulky and messy. The risk of them soiling the boat is just too high. Sabhan Sanaee had been raised to not just spot problems but also find solutions and he was determined to find a solution to his problems.
He partnered with Kanz Kayfan to create the Animated Lure. The Animated Lure was a robotic lure that looked like a fish. It would be hooked onto the fishing reel like regular bait and dipped into the water. The Animated Lure’s electric motor would then make it swim attracting bigger fish to come to take a bite. The lure had a rechargeable battery and came in a variety of sizes.
Sobhan and Kanz created a business with the same name, Animated Lure, and they wanted to expand it but didn’t know how they could do it. They thought that a shark’s help would go a long way and that’s why they went to the Shark Tank. They were featured on the 3rd episode of season 12.
Animated Lure on Shark Tank
When the Animated Lure founders, Sobhan Sanaee and Kanz Kayfan went to the Shark Tank, they sought 325,000 for 10% of their business. This gave Animated Lure a valuation of 3,250,000. They started their pitch by showing the sharks the problems that people experienced with regular bait. They then showed the sharks the benefits they could reap from using the Animated Lure over other baits.
Lori then asked Daymond if the Animated Lure was different from anything that he had used to fish with. Daymond said that he had never seen it and so he asked Sobhan and Kanz how often it rusted and how many times he had to rebuy the unit. Sobhan said that it could be used about 40 times and that was if it was being used to catch fish and such.
Kevin then asked how long the Animated Lure could hold a charge. Sobhan said that the mini’s batteries could last for about 45 minutes. The classics were another category of the lure and they could charge for about one and a half hours. The saltwater was the third brand that they had and it had a battery life of two hours.
Robert then asked them what made them fish experts. He also wanted to know why he should believe them. Sobhan said that he was a project manager at a manufacturing facility. Kanz was a professional counselor and he worked for a community. Kanz worked in a community mental health facility in Collin County.
Robert said that their experience made sense. Sobhan then said that it was something he saw growing up because he and his father used to go fishing. However, when his father got older, he was diagnosed with a lung disease. Sobhan’s father concluded that his disease was just part of human nature. However, it was also around that time that they saw the problems that there were with the traditional fishing methods.
Sobhan’s parents told him that he should not just be identifying problems but also trying their best to be part of the solution. These words meant a lot to him because they came from his parents, the individuals who sacrificed everything to ensure that their children could contribute to the betterment of society. His parents had migrated from another country to the United States so that their children could have a better future and they had wanted their children to also take control of their own destinies.
Lori then asked Sobhan where he had come from. Kanz and Sobhan both said that they had come from Iran. Mark Cuban then asked them what the cost of the lure was as well as its sales price. He also wanted to know what its total sales were.
Kanz said that the landing price for the mini was $8. The landing price for the classic was $10 and the saltwater lure had a landing price of $16. The mini had a retail price of $29.95. The classic had a retail price of $32.95 and the saltwater had a retail price of $79.95. Lori commended them for their huge sales margins.
Kevin asked them if all the sales were direct-to-customer or through retail. Kanz said that most of their sales were through their website. However, they also sold through a few retailers in the United States. They also had a distributor in Canada who had gotten them shelf space in about 40 stores. Kevin then asked them if they were in any of the major big-box retailers.
Sobhan said that the sharks could help them get into the big box retailers. Their calls were not being picked up but they were certain that the sharks could help them with that. Kevin then inquired about their sales and he said that given that they had valued their company at $3,250,000 they should have a good amount.
Kanz said that since 2020, they made sales of $247,000. We’re projecting that for the next year, they should have sales of $500,000. Kanz expected to make $625,000 in sales in that year. Mark Cuban then asked them if they were profitable that year. Kanz said that Sobhan and he were working full time and for that reason, they did not have any debt. They had put their own money into the business.
The sharks asked them how much of their own money they had put in and Kanz said about $125,000 which was what got them started. Kanz then said that they had not taken a penny out of their own company. They had invested every cent that they had earned back into the company. Daymond asked them if they owned the company and he was told that they did own it equally.
Kevin said that he didn’t think that the Animated Lure should be sold as fishing bait. Instead, they should be placed in an aquarium. Robert agreed with him and Mark Cuban said that restaurants would be ideal targets. Mark Cuban then left and he said that it was because he was just not a fisherman and he did not have any feelings for it.
Lori then left. She said that she was not a fisherman and she just didn’t know anything about fishing. She also thought that it was a little early for her. Kevin said that the duo was not really a company, they were only a product. Kevin then offered $325,000 but he wanted a royalty of $3 per unit sold until $1,000,000 is paid and 10% of the company.
Robert then left and he said that he didn’t think the business was for him. Daymond said that he liked the product but it would take too long for him to recoup his investment and so his was out. Kanz then asked Kevin if he would pay $500,000 for 10% of the business. Kevin refused the offer.
Kanz and Sobhan then asked Kevin if he was willing to give $325,000 for a royalty of $1.50 per unit sold until $500,000 was paid. He would also get 10% of the company. Kevin declined the offer and then left. He then said his initial offer of $325,000 with a royalty of $3 per unit sold until $1,000,000 is paid and 10% of the business.
Kanz and Sobhan accepted the offer. Kanz and Sobhan said that Animated Lure had just started as a small business, and for them, achieving the American dream was just wonderful.
Animated Lure Now in 2023 – The After Shark Tank Update
Animated Lure got a deal from Kevin and business has improved for them. They are still selling on their website and they have increased their line of products. The classic, mini, and saltwater lures are still there but they now also have the premium classic, premium mini, and premium saltwater. They are now also selling polo shirts.
The Animated Lure is also now available on Amazon. It has been rated 3 out of 5 stars. On Facebook, it has garnered over 6,800 followers. On Instagram, it has over 5,000 followers. It also has over 2,900 followers on Twitter. Other companies have sprouted that do the same thing but Animated Lure is still competitive.
Animated Lure is located in Plano Texas. It is no longer having retail problems and is now stocked in major retailers. This indicates that it is in a better position than it was when the founders went into the Shark Tank and there is only room for it to grow bigger, not smaller.