💫 Summary
Justin Wang presents Larq, a self-cleaning water bottle that uses UV light to purify water, asking for $500,000 for 1% of the company, making it the highest valuation ever on Shark Tank. The sharks inquire about the market opportunity, competition, and sales numbers, eventually making offers ranging from $500,000 to $1.5 million for varying equity stakes in the company. Justin ultimately accepts an offer of $1.5 million for 2% equity with the advisory shares vesting upfront.
✨ Highlights📊 Transcript
Justin Wang presents Larq, a self-cleaning water bottle that purifies water on the go.
Larq bottle uses patented UV-C LED technology to eradicate 99.99% of harmful bacteria, viruses, and mold.
The reusable water bottle market is a $7 billion industry within the $300 billion water market.
Larq bottle aims to address the issues of mold and odor commonly associated with reusable water bottles.
Larq is a self-cleaning water bottle that uses UV light to purify water.
The UV light is reflected inside the bottle using an optical system.
It has two modes: a normal mode of 60 seconds and a venture mode of three minutes.
Larq is the first product on the market with UV activation and cleaning, with 10 patents.
In 2019, Larq made over $5.5 million in sales, and in the last 12 months, they made over $9 million.
They are planning to make $14 million this year but expect to lose about $1 million.
Larq raised $6.7 million at a valuation of $31.7 million.
Larq's water pitcher uses a two-step approach to filter and purify water, preventing contamination and providing clean water.
Traditional water pitchers only trap contaminants, which can accumulate and reverse contaminate the water.
Larq's pitcher captures contaminants like lead, cadmium, and mercury in the first step and purifies the water in the second step.
Larq donates one percent of their revenue to charity partners, including building wells in Africa.
The Sharks are impressed with Larq's commitment to philanthropy and the innovative product.
The entrepreneur receives multiple offers for investment in his company, but declines them all as they do not meet his desired valuation.
The entrepreneur mentions that the category his company is in is a $300 billion industry ripe for disruption and innovation.
Lori offers $500,000 for 5% equity in the company.
Mark declines to invest, stating that this platform is not meant for evaluating billion-dollar companies.
The entrepreneur declines all offers as they do not meet his desired valuation of around $32 million.
The entrepreneur negotiates a deal with the sharks for his water purification company, Larq.
The sharks offer a total of $1.5 million for a 6% stake in the company.
The entrepreneur requests that the $1.5 million be divided, with $500,000 for 4.5% and the remaining $1.5 million with advisory shares.
The entrepreneur asks if he will receive a 2% stake for his $500,000 investment.
The vesting period for the advisory shares is 24 months.
The entrepreneur declines a complicated offer and prefers a straightforward deal without contingencies.
Lori and Kevin offer $1 million for a 4% stake split between them.
The entrepreneur agrees to a 2% stake without advisory shares.
The entrepreneur negotiates for the shares to be vested upfront.
00:02next up is a modern version of an
00:04important health accessory
00:14hey sharks my name is justin wang
00:16i'm here today to ask for five hundred
00:18thousand dollars for one percent of my
00:20company lark
00:24have you ever noticed that funky smell
00:26coming from your reusable water bottle
00:28i bet you have and if you're like most
00:30people you do what we call the sniff
00:36the average reusable water bottle
00:38contains more bacteria colony than your
00:40dog bowl or toilet seat no wonder they
00:44and it's no wonder it's so tempting to
00:46reach for a single use plastic water
00:49bottle the result over one million of
00:51these guys are consumed every single
00:54minute and that's no good for your
00:55health and even worse for the
01:00that's why we invented the lark bottle
01:03the lark bottle is the world's first
01:06self-cleaning water bottle that purifies
01:08water on the go
01:10with a simple press of a button and in
01:12just 60 seconds the lark bottle
01:14activates our patented uvc led
01:16technology pure abyss to eradicate 99.99
01:21of harmful and odor-causing bacteria
01:23viruses and mold the results pure water
01:26from a pristinely clean bottle so sharks
01:29who's thirsty for a great deal
01:32just want to be clear i heard you
01:33properly five hundred thousand for one
01:36percent that's great robert
01:38congratulations the highest valuation
01:40ever requested in the shark tank you
01:42seem like a reasonable human being tell
01:44us why it's by the way in all 50 minutes
01:46see i have a couple of these oh you do
01:48yeah great
01:49that's awesome i do but what's the
01:51market opportunity that justifies this
01:53so it's a huge market big water is a
01:55real thing it's a 300 billion dollar
01:58market worldwide of which reusable
02:00market is only 7
02:02it is growing i tried to swear off of
02:04single-use plastic water bottles several
02:06years ago i bought several reusable
02:08options and sure enough they ended up in
02:09the back of the cabinet or in my gym bag
02:11they would collect mold if it sat in my
02:13car it would get stinky so it's the
02:15self-cleaning part the cells and
02:18it looks to me like you have a uv light
02:20in the top can you explain how this
02:22works and what it does this is actually
02:25an optical system that's designed to
02:26reflect the uv light inside so simply
02:29you press this button the uv light turns
02:31on my co-founder is a phd in physics
02:34from caltech
02:35he's engineered this to bounce to
02:37optical light throughout the bottle so
02:39then how many minutes does it take to do
02:41that we have two modes our normal mode
02:43is 60 seconds and then we have a venture
02:45mode which is three minutes so if you
02:46want to take it to a developing country
02:49or camping or you're just somewhere
02:50where you don't quite trust the water
02:52justin is it safer than boiling water it
02:54would be the equivalent of boiling your
02:55water for like 20 minutes really
02:58competition are you the only one that
03:00has uv
03:01activation and cleaning we launched in
03:03october of 2018. we're the first one on
03:05the market we have about 10 patents both
03:08utility and design around this product
03:11and other products but there are
03:12copycats out there that we're pursuing
03:14potential legal actions for right now so
03:16justin why is it worth 50 million
03:20so we launched this product in 2018 so
03:23we've been on the market for a little
03:25almost two years
03:26under two years and in our first full
03:28year in 2019 we did a little over five
03:30and a half million dollars in sales
03:32there you go in the last 12 months we've
03:34done over nine million dollars this year
03:36we're planning on doing 14 million
03:38dollars what you going to make on the 14
03:40million so we brought on our first
03:42alside venture capital round earlier
03:44this year in january and we leaned into
03:46growing the business so this year we're
03:48expecting to lose about a million
03:49dollars justin how much did you raise
03:516.7 at what valuation at a 31.7 million
03:55dollar valuation
03:57so just let's talk real business you've
03:58only raised 6.7 how much do you have in
04:00the bank uh i have about
04:03okay so you really haven't had to spend
04:05anything right yeah what do these retail
04:07for the one you have right there is 95.
04:10i paid 95 for this yeah
04:16the land it cost is around 40. you said
04:19you had a lot of patents what are those
04:21other products you already have well
04:23some of those patents just cover some
04:25other applications but some of them do
04:27apply to the new product
04:29this is the lark pitcher which is our
04:31first foray into the home let me do that
04:34real quick and while that's going i'll
04:36show you a video of how that works
04:38traditional water pitchers use a filter
04:41and the biggest problem is that they
04:42only trap contaminants where they could
04:44quickly accumulate and multiply and
04:46actually reverse contaminate your water
04:48why do they reverse contaminate because
04:51the contaminants are being trapped and
04:52collected there and as germs are growing
04:54there's a wet porous environment that's
04:56dark so imagine all the things that
04:58could be growing there so we take a
04:59two-step approach the first step you see
05:01it go through and it captures things
05:03like lead cadmium mercury in the second
05:06step you simply press this button and
05:07it'll purify the water that's gone
05:09through and as you can see that is a
05:11clear water that we poured blue water in
05:13that's contaminated clear water but is
05:15anybody else doing this no one's doing
05:17this there's a million people on planet
05:18don't have access to clean water and 1.5
05:21million don't have access to electricity
05:23so i don't think any of those people are
05:25getting this bottle right now because
05:27they don't have 95 dollars one percent
05:29of our our proceeds
05:31go to our charity partner one percent
05:33for the planet charity water well where
05:35where we build wells in africa one
05:38percent of profits one percent of
05:39revenue we pledge revenue
05:41gross revenue gross revenue okay one
05:44that is that is impressive off top line
05:46i mean you're committed i get it that is
05:48important damon was gonna stick a skewer
05:50through you no i might still but i want
05:52to just lay it out where i am okay i
05:54think we're at a time when people are
05:56really angry they're they're looking for
05:58and when i signed up to this platform
06:01the platform didn't start off as
06:03the wealthy
06:05helping the wealthy with 6.5 million in
06:07the bank i just could not do this
06:09because i just think that i'm here for a
06:11different reason i think this is
06:14crazy i'll let all the sharks
06:16discuss it but i'm i'm out
06:18i also come from a background where i
06:20didn't have a lot it's unfortunate you
06:22won't take that journey with me but i
06:23respect what you're saying so let me
06:24take a shot at it i support a charity
06:26called one drop making sure everybody
06:28can drink fresh water around the world
06:30something i get behind
06:31love to be involved in this but i'm not
06:32doing it for one percent i bring too
06:34much value i've never done a deal for
06:37one percent for obvious reasons i'll do
06:39it for four percent
06:41i don't care how you structure it
06:43advisory shares whatever so you want him
06:45to do it at almost one-third of his i
06:48understand i didn't say you would like
06:50it mark
06:51or you would i'm just telling you what i
06:53would do is there other offers out there
06:55or you know to give you half a million
06:58dollars for one percent i i feel like
07:00i'm not making anything the category
07:03that we're in is gigantic it's a 300
07:04billion dollar
07:06industry and it's so ripe for disruption
07:08and so right for innovation i think
07:10honestly here like i'm going to take
07:12offers and listen to they can offer lori
07:16i would love to work with you i would
07:18love it 500 000 for five percent
07:22you keep on going backwards justin
07:24justin the problem with one percent is
07:27you're priced for perfection and yes i
07:29would love to own one percent of apple
07:31and i would love to own one percent of
07:34but the odds are just so low
07:37to make it easier for your investors
07:39i'll do five hundred thousand for three
07:41percent we can work out the other two
07:43percent for from your advisory pool
07:46that's my offer and mark are you
07:48anywhere yeah i know where i'm at um so
07:50look there's different platforms for
07:51different reasons right this is a place
07:53where people come where they just need a
07:55little bit more fuel they need a little
07:57bit of help we're not here to evaluate
08:00companies that may be billion dollars in
08:01sales over a trillion dollar market in
08:0420 years which is possible but this is
08:06not the place to do it so for those
08:08reasons i'm out
08:09so your three offers what do you want to
08:12you know the offers are all great but
08:14even without the advisory shares below
08:16my last valuation of
08:1832 ish right to be honest with you
08:20that's really my bottom line what about
08:22we got you all in
08:24for half a million dollars each for 1.5
08:27million dollars total
08:28at four and a half percent
08:31i know i will also throw an advisory
08:33share of one percent split between the
08:35three of you so for a total it would be
08:37five and a half percent for that money
08:42okay here's something we'll do would you
08:44consider a million and a half for six
08:45percent and each shark gets two
08:50if you get three sharks huge value for
09:01two sharks are out and justin has one
09:04offer on the table from kevin lori and
09:06robert for his water purification
09:08company lark
09:10huge value for you 1.5 million 500 000
09:14each for six percent what say you uh i
09:18could accept the offer with one
09:19condition that the structure in a way
09:21that 1.5 million dollars for 4.5
09:25and the remaining 1.5 with the advisory
09:28should be divided among you my question
09:30is do i get two percent for my 500 000
09:33you do how long is the vesting period
09:36for the advisory shares 24 months based
09:38on what but
09:39yeah what are you basically what do i
09:41have to do to get my advisory share i
09:43think we just have a conversation about
09:45what we could do with the business how
09:46we could build it together maybe it's
09:48qvc maybe it's developing they make it
09:50very simple it's too complicated you
09:52know what i'm out
09:55i've worked really hard to get to this
09:56point i don't need you to interview me
10:00i i don't want contingencies on it you
10:02know that we're going to be involved we
10:04don't want to see that just evaporate
10:06absolutely absolutely i'm in for two
10:08percent for 500 000.
10:10i'll do a million dollars for four
10:12percent split between you and lori
10:14i'm in
10:16no advisory it's just straight
10:19advisor would just vest no contingencies
10:22so half a million dollars each for 1.5
10:24plus half a percent in advisory shares
10:26two percent total i don't want advisory
10:28shares i i like can you do that look i
10:31want her a part of the deal for sure i
10:33see lots of value here whatever it takes
10:35to get her on board
10:37i want the same so are you putting a
10:39stake in the sand here on the yeah i
10:41would go two percent okay well that's
10:44what you got to do but not advisory
10:46um what if those shares just invested up
10:48front because i have to structure
10:49something while i'm not going below my
10:51last valuation it's two percent on front
10:55all right
Chat with video

FAQs about This YouTube Video

1. How does Larq purify water?

Larq purifies water using UV light, which is a natural and effective way to eliminate harmful bacteria and viruses from the water.

2. What is the investment opportunity for Larq?

Larq is seeking $500,000 for 1% of the company, making it the highest valuation ever on Shark Tank. This presents a unique and high potential investment opportunity.

3. What sets Larq apart from its competitors?

Larq's use of UV light for water purification sets it apart from traditional water bottles and other competitors in the market. This innovative technology provides a unique selling point and competitive advantage.

4. What are the current sales numbers for Larq?

The current sales numbers for Larq demonstrate strong market demand and potential for growth. The company has achieved impressive sales figures, indicating consumer interest and confidence in the product.

5. What was the Sharks' response to Larq's proposal?

The sharks made offers ranging from $500,000 to $1.5 million for varying equity stakes in the company, clearly recognizing the potential value and growth opportunities associated with Larq. Ultimately, Justin accepted an offer of $1.5 million for 2% equity, further emphasizing the company's high valuation and potential for success.

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