Investors Hear Out The Chalkless Pitch On Shark Tank Season 16
Highlights
- Chalkless is a powder-like compound perfect for enhancing the grip of athletes across sports.
- Greg Pope and James Pidhurney seek $400K for 4% equity in the company.
- The Chalkless entrepreneurs face criticism when they refuse to reveal the costs of their products.
Overview
| Category | Details |
| Name | Chalkless |
| Founder | Greg Pope and James Pidhurney |
| Industry | Sports |
| Product | Grip Enhancer |
| Funding | Self-funded |
| Investment Ask | $400K |
| Equity Offered | 4% |
| Valuation | $10 million |
Greg Pope and James Pidhurney appear on Shark Tank Season 16 Episode 5, pitching for Chalkless. The product is a grip enhancer used to absorb oil on the skin and shoes for athletes, military, and everyday uses. Once applied, it absorbs the oil and removes slip from the grip.
Greg and James also add that their product is a revolutionary material that could alter performance outcomes in any sport. The duo starts by listing three things that athletes need to perform at their peak: focus, training, and grip. But athletes often take ‘grip’ for granted.
Chalkess is a powder-like compound made from a unique but well-tested, non-toxic, and environmentally friendly material. It generates less mess and works even underwater. Additionally, the entrepreneurs claim it is the most significant innovation in grip technology in 70 years.
Chalkless: What Happened On Shark Tank Season 16
Greg and James make their way to the Shark Tank investors seeking $400K for 4% equity. After they explain about the product, they call upon Rashuan Williams for a trial of Chalkless. He is amazed that even after sprinkling it on his palms, he does not feel anything at all.
Lori Greiner thinks it is like chalk but more permanent than it. The entrepreneurs stop her and say that it is nothing like chalk, which is why the name ‘Chalkless.’ The main difference is that they offer a subtractive material that tries to remove something.
Kevin O’Leary wants to know about the sales. The entrepreneurs reveal that this year’s sales have been $740K so far, which impresses the Sharks.
James claims that there is no other thing that focuses on grip, which allows them an opportunity to have a huge marketplace. Mark Cuban disagrees with this.
Their biggest market includes sports like golf, racket sports, and fitness. Chalkless’s price varies based on the product size, ranging from $35.99 to $24.99. However, the investors are annoyed when they refuse to reveal the cost of making the product on Shark Tank.
On facing criticism, the Chalkless founders say that their margins are 67%.
Did Chalkless Get A Deal?
A furious Mark Cuban walks out of the deal because they stated their blended margins but were unwilling to reveal their costs. Lori wants to know if there is anything proprietary about Chalkless. The entrepreneurs say that they do have two patents and two more pending.
She then inquires about their backgrounds. James is a corrosion engineer, whereas Greg is a chemical engineer.
Barbara Corcoran is curious about how they got their customers in the first place. The entrepreneurs reply, ‘That’s our biggest problem.’ They have come on Shark Tank so that people get to know about Chalkless.
Guest Shark Rashuan Williams steps out of the deal as he feels he is ‘not a good fit’ for the product. Barbara and Lori, too, step back from investing for similar reasons.
Stating that the $10 million is too high, Kevin O’Leary proposes a royalty deal at $400K for a 4% equity along with a royalty of $2.50 per unit till he recoups $4 million in revenue. The royalty amount will then drop to 25 cents in perpetuity.
Following this, Kevin will get his social media team to lower Chalkless’ customer acquisition costs and increase its return on assets.
Lori thinks it is not a bad offer, and the entrepreneurs agree. Kevin adds, ‘It’s why they call me Mr. Wonderful.’
While Greg and James discuss the deal, Mark feels they will not take it. Barbara thinks they will. Rashuan asks Kevin if he could join him in the deal to ‘take the bases down.’ He is willing to take $100K or $200K of it. Kevin is okay with him doing the deal for $200K, but he will not change the terms.
When the entrepreneurs complete their discussion, Kevin informs them that Rashuan will join him in the deal. Rashuan adds that he can get 20 to 30 athletes to promote Chalkless.
The entrepreneurs take Kevin and Rashuan’s deal of $400K for a 4% equity along with a royalty of $2.50 per unit till he recoups $4 million in revenue, which then drops to 25 cents in perpetuity.
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