Adam McBride and Don Halpern want to lock up a deal for Loctote, an ultra secure backpack/tote that is impervious to slashing and can be locked up to prevent theft. He’ll pitch his product in Shark Tank episode 820. Halpern got the inspiration to invent LocTote while vacationing in St. Croix with his family. While he was swimming, he observed someone stealing his wallet. He immediately started looking for a bag he could lock to a stationary object that could hold all his essential items without fear of theft. When he couldn’t find anything that suited him, he decided to invent it.
The bags are made with slash resistant fabric used in body armor. There’s RIFD blocking technology to prevent credit card skimming. The straps are steel woven to prevent cutting and the whole bag locks to just about anything. It’s waterproof too! Despite the tough features, the bags are still soft and stylish looking. As it says on the website, everything about the product is over engineered.
Halpern got the business off the ground with a wildly successful Kickstarter campaign that raised $855,094. In a second IndieGoGo campaign, they raised another $617,347 for a total of $1,472,441. They make the bags in New Albany, Ohio. The original bag costs $179, but they have other models in the works. He likely needs cash to grow his inventory and some help getting out to mass retailers. Will a Shark bag this investment?
LocTote Shark Tank Recap
Don and Adam enter seeking $150,000 for 5% of their business. They tell their story and hand out samples. With each sample, they hand out box cutters and encourage the Sharks to try to cut the bags open. They can’t. When Don tells the Sharks the price – $179 – they’re shocked. The material, a proprietary fabric, is expensive. It costs $75 to make each bag.
They used their Kickstarter money to take production overseas since their US manufacturer couldn’t scale. When the Sharks hear how much they raised on the two platforms, they can’t believe it. They’re further amazed that they have $1.4 million in sales. After asking the guys about their backgrounds, the Sharks start going out.
Daymond is first, stating he doesn’t see the application. Mark doesn’t understand how they will sell it, he’s out. Robert doesn’t see the market, he’s out. Lori isn’t sure about the bag slashing issue and she doesn’t like the price point, she’s out. Kevin offers $150,000 for 10% plus a $10 per bag royalty until he recoups $450,000. The guys counter with $150,000 for 10% with the $10 per bag royalty until he recoups $150,000. At this point, Robert jumps in and says he’ll do that deal.
LocTote Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. The deal with Robert never closed. In the aftermath of the original air date, they sold out of inventory. As of July, 2022, the company is still in business and has sold over $6 million worth of their bags. They never got into any big retailers, but they still sell direct off their website and on Amazon. As of November, 2023, the company is still in business with annual revenue of around $1 million.
Posts About LocTote on Shark Tank Blog
LocTote Company Information
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