Highlights
- Chris Stoikos and Jason Neubauer sought $500,000 for 10% equity in Coolbox, their innovative toolbox with advanced features.
- They secured an offer from Lori Greiner for $500,000 as a loan at 5% interest plus 15% equity.
- Despite the initial deal with Lori, it ultimately fell through, and the company shut down in 2018.
Overview
| Category | Details |
|---|---|
| Name | Coolbox |
| Founders | Chris Stoikos, Jason Neubauer |
| Industry | Tools and Equipment |
| Product | Smart toolbox with advanced features |
| Funding | Secured an offer from Lori Greiner, which ultimately fell through |
| Investment Ask | $500,000 |
| Equity Offered | 10% |
| Valuation | $5 million (at the time of Shark Tank pitch) |
Chris Stoikos and Jason Neubauer bring their successfully funded IndieGoGo product, the Coolbox, to the Tank in Shark Tank episode 728. They raised over $370,000 from the crowdfunding platform in March 2015. In the campaign, they claim tools have changed in the 21st century, so why not change the toolbox?
The Coolbox isn’t your daddy’s toolbox. Sure, it holds tools (and lots of them), but it does so much more. It has a 20 volt re-chargeable battery to re-charge phones and even run power tools. There are Bluetooth speakers that turn the toolbox into a boombox. There are also USB ports, LED lighting, a built-in extension cord, device stands, a clock, dual sided whiteboard, dual carrying handles and wheels. There’s even a stand for tablets on the top of the box.
The entrepreneurs have years of construction experience and they got tired of lugging around multiple devices to job-sites, so they invented Coolbox. The product has rave reviews from a variety of media outlets and boasts over 800 backers. As of the date of the Shark Tank appearance, they are weeks away from shipping their first production run.
Chris and Jason likely want a Shark’s help with manufacturing and for cash to make more products. Will a Shark think this is a cool investment?
Coolbox Shark Tank Recap
Jason and Chris approach the Sharks looking for an investment of $500,000 in return for 10% of the company. They present the Coolbox as a “smart toolbox,” asking why, when everyone has smartphones, why people wouldn’t want a smart toolbox. They quickly go through the features of the Coolbox. The Sharks are impressed.
Robert Herjavec gets right down to business, asking about the cost of the Coolbox. Currently, it costs the partners $110 to make the units. They’ve presold units for $190, with $390,000 in pre-sales, and hope to sell them in retail locations for $249.
Robert points out that the numbers are based on pre-sales, without any retail locations to back up their claims and valuation. The pair responds that they have an 8,000 unit order from Lowes, and have entertained interest for licensing from companies like Black and Decker. They have invested $50,000 of their own money so far, and are looking for an investment to take the Coolbox to the next level.
Daymond John is interested, but his offer hinges on licensing. He’s willing to give them $500,000 in return for 25%. The pair want to entertain other offers.
Robert Herjavec doesn’t believe that the average blue-collar worker will spend the $249 on a toolbox. He’s out.
Kevin O’Leary addresses the risks involved with getting into big box stores. He feels the Coolbox is just too risky. He’s out.
Mark Cuban agrees with the other Sharks about the valuation. He’s concerned that the pair are overextended with the obligations they’re facing compared to the assets they have available. He doesn’t feel their idea is proprietary or “protectable.” He’s out.
Only Lori Greiner and Daymond John remain. Daymond has an offer on the table, and Jason and Chris must weigh the risk that, as Kevin O’Leary points out, that if Lori goes out, Daymond may adjust his offer, looking for more value for his money.
Lori finally speaks up, repeating many of the other Sharks’ concerns. She makes an offer. She’s willing to offer them $500,000, in return for 30%, without the licensing contingency.
After hearing Lori’s offer, Daymond rescinds his offer, leaving Lori the only Shark standing.
Chris and Jason counteroffer, asking Lori if she’ll do the $500,000 in return for 20%. She shifts slightly, changing her offer to a loan at 5%, in addition to 15% equity.
They accept the offer, and leave the Tank with a deal.
Coolbox Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. Once an episode has aired, we monitor the progress of the businesses featured, whether they receive funding or not and report on their progress.
After Shark Tank, the deal with Lori fell through. They designed a smaller Coolbox at a lower price point, and intended to ship the first run of units in February 2017. They were poised to license Coolbox to a major manufacturer, but when that didn’t work out, they shut down in 2018.
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