We’ve been looking forward to watching Shark Tank all week to cheer on the fine folks at iLumi Solutions. Last night we turned the lights down, put our feet up, and watched Corey Egan and Swapnil Bora pitch their Bluetooth light bulbs to the sharks.
“The most surprising thing was the rapid fire questions we had to work through,” says Egan. “It was difficult to stay on your toes and react and adjust to questions from all different directions.”
Egan and Bora laid out their terms for a $350,000 investment for a 15 percent stake in their company, and immediately they grabbed the attention of Mark, Robert, and Kevin. Standing right at the doorstep to manufacturing, the investment would get the iLumi product into the customers’ hands.
Robert Herjavec fired off an offer of $350,000, but he pushed the stakes on the equity side and asked for a 35 percent stake in the company. Not a second after he was finished Mark Cuban rolled in and countered with a $350,000 investment but for a 25 percent stake in the company.
Egan and Bora were intrigued, but they didn’t act quickly enough on the Cuban 24 second shot clock and he pulled the offer. You could see the devastation in their eyes, but the iLumi duo didn’t back down and they kept pushing.
That’s when Kevin O’Leary came in and dropped a bomb on the entire room: the $350,000 investment for no equity. Rather, Kevin wanted 15 percent royalty on all licensing deals. Needless to say this sparked a massive feeding frenzy in the shark tank. That’s when Herjavec backed out and Cuban re-entered the game with his initial offer.
It was obvious that, while generous, Egan and Bora weren’t too interested in O’Leary’s offer so they went back to Cuban. They asked to meet in the middle at 20 percent equity, but Cuban wouldn’t back down from his 25 percent initial offering. This time the duo didn’t hesitate and they accepted.
iLumi officially walked away from Shark Tank last night with an accepted $350,000 investment from Mark Cuban for a 25 percent equity in the company.
“We went through what could be considered a painful process because we knew that if we made it to this moment we would get tons of exposure,” says Egan. “It was a very surreal experience to be in the show and have these conversations.”