Season 5 | Episode 503 | EP503
In Season 5, Episode 3 of Shark Tank, Erick Jansen & Nathan Jones approached the Sharks seeking an investment of $200,000 in exchange for 15% equity in My Freeloader. The company is based in Austin, Texas.
My Freeloader is a product which has been mainly designed for those who go out for long walks with their children from time to time. The My Freeloader child carrier starts out as a daypack. This allows various supplies to be carried around on those long days out. There is a small seat attached to the daypack. Upon the child becoming tired this seat can be pulled down and the child secured into place. Children up to the age of eight and weighing less than 80 pounds should be able to be seated comfortably on My Freeloader.
Erick Jansen & Nathan Jones informed the Sharks that there had already been a considerable amount of success with their My Freeloader product. They had managed to ship units to 12 different countries. This shows that the product has true global appeal. These sales were the result of a successful Indiegogo campaign earlier in the year where they exceeded their goal. The funding received from Indiegogo allowed them to fulfil their first manufacturing run however they now wished to begin their second larger run. This is why they are talking to the Sharks today.
One aspect of the pitch that the Sharks were not happy about was the lack of preparation that had gone into it. It was clear from the outset that neither business partner are true businessmen. They were unable to answer the most basic of questions and they did not have sales figures handy. Shortly after the show it transpired that Shark Tank producers had ‘forced’ them onto the show knowing that the pitch was not 100% ready. Of course; the lack of knowledge really did irritate the Sharks and few offers were received as a result. My Freeloader also has competition from other companies that market the product as a baby carrier, baby hiking backpack, toddler backpack carrier and baby holders.
Robert Herjavec: $200,000 in exchange for 33% equity in the company.
Erick Jansen & Nathan Jones accepted an offer from Robert Herjavec of $200,000 in exchange for 33% equity in their company. They gave away slightly more of their company than they originally hoped to do so however they received the cash that they required to take production of the My Freeloader to the next level. The pair pulled out of the offer shortly after the show believing that that they had given away far too much equity and the belief that Robert Herjavec would be able to bring very little to the table.
Robert Herjavec tends to only invest in well executed businesses that have paying customers. If you want to capture Robert’s attention quickly, have a good story, be humble, know your numbers and understand good timing.