Potash and Blanchet sought a $1.4 million funding for five% of the corporate, bringing the overall valuation for Trunkster to $28 million. Hoping to enhance on the tried-and-true design of recent baggage, the duo got down to disrupt the trade.
At first look, it appeared like they might have been onto one thing. With improvements like a zipperless roll-top door, USB charging ports, and what the duo described because the world’s first self-contained deal with scale, it seemed just like the invention did ship a lot of what typical baggage could not.
Nonetheless, points began to come up when the sharks dug deeper and inquired concerning the firm’s $28 million valuation. Shockingly, Potash and Blanchet admitted that they hadn’t shipped a single unit, and a lot of the firm’s worth had been derived from presales by way of a Kickstarter marketing campaign, together with highly-aggressive income projections for the longer term.
Whereas the sharks scoffed on the valuation at first, the duo was capable of finally get an funding from Mark Cuban and Lori Greiner with caveats. Greiner and Cuban accepted a 5% stake in Trunkster for the $1.4 million, however with a built-in 24-month assure that the buyers would see that cash again or their fairness would double. The deal additionally included royalties on models offered to cut back threat. Whereas the phase ends with everybody shaking palms, there’s extra to the story than the episode would point out.