Highlights
- Mike Szymczak and Jason Lucash seek $150,000 for 15% equity.
- The entrepreneurs pitched customizable, eco-friendly portable speakers and headphones.
- They hope that a Shark deal will help boost their company into successful manufacturing and distribution.
Overview
| Category | Details |
|---|---|
| Company Name | OrigAudio |
| Founders | Mike Szymczak and Jason Lucash |
| Industry | Audio Technology, Consumer Electronics |
| Product | Customizable, eco-friendly portable speakers and headphones |
| Funding | $150,000 + licensing deal |
| Investment Ask | $150,000 |
| Equity Offered | 15% |
| Valuation | $1 million |
Episode 207 brings Mike Szymczak and Jason Lucash to the Shark Tank with their product, OrigAudio. Inspired by a Chinese take-out box, OrigAudio aims to bring together green technology and great music. The pair hope to entice the Sharks with a new concept in audio technology- customizable, earth-friendly portable speakers and headphones. The pair has been working out of Szymczak’s house, and hope that a Shark deal will help boost their company into successful manufacturing and distribution.
In business for one year, the company has $750,000 in sales, a number sure to impress the Sharks. Will they get a deal, or will the OrigAudio line strike a sour note in the Shark Tank?
OrigAudio Shark Tank Recap
Lucash and Szymczak are seeking $150,000 for 15% of the company. They begin their presentation by discussing the challenges of traveling for music lovers. Speakers are bulky and not very portable. They claim to be revolutionizing the portable audio market.
They demonstrate their product, The Rocket, a transducer that turns any item into a speaker. It can be stuck to a cup or trashcan, turning it instantly into a speaker. Next, they demonstrate foldable speakers. The Sharks want to know about numbers. Szymczak breaks down the sales, explaining that the product has been selling through over 500 retail stores and online.
The Sharks are impressed, but then they learn that the product is licensed through a company in China, and that the actual profit on the $750,000 has been $150,000. Neither of the men has taken a salary. Robert Herjavec doesn’t believe that it “counts” as profit if they haven’t taken money for themselves.
Did OrigAudio Get A Deal?
Although the Sharks are impressed with the product, Kevin O’Leary feels that it’s a very competitive market, and the relationship the pair has with the company that issued the license just isn’t strong enough to invest in. He’s out.
Barbara Corcoran is impressed but wants to know how they sell product without demonstrating it. At this point, the pair reveals that the OrigAudio has been on QVC, news that impresses the Sharks. Mark Cuban wants to know what percentage the pair will accept. He’s determined to push the other Sharks out of the game. In response, the other Sharks make their own offers.
Daymond offers $300,000 for 100% of the company. Barbara offers $150,000 for 25%. Robert Herjavec sweetens the deal to $150,000 for 15%. The Sharks are in a feeding frenzy. Cuban, challenged by the other Sharks, is out.
The pair retire for a moment to discuss the offers on the table. When they come back, they accept Herjavec’s offer, to the consternation of the other Sharks.
OrigAudio Shark Tank Update
“This isn’t the Rose Garden,” remarks Cuban. “Sometimes you’ve got to take the bite, and sometimes you’re the chum.” This time, the entrepreneurs got a big bite of success in the Shark Tank. The pair left the stage with a deal that would launch OrigAudio into the stratosphere. After their appearance on Shark Tank, OrigAudio appeared on numerous talk shows and in magazines. Today, the product is selling well, both in retail spaces and online. This is one deal that played a tune to sooth even the most savage Shark.
The company got an update segment in season 3, episode 310 where they boasted over $4 million in sales!
The update failed to mention that the deal with Herjavec never closed. Between taping and their air date, they doubled sales and couldn’t justify giving up 15% of the company.
In 2017, Mike and Jason were named Supplier Entrepreneurs of the Year by the Advertising Specialty Institute. In 2018, the company was acquired by Hub Promotional Group for an undisclosed amount. Lucash and Szymczak remained in their current Origaudio roles as president and chief operating officer, respectively. In addition, Lucash became senior vice president of marketing and product for HUB, while Szymczak assumed the added responsibility of vice president of business development for HUB. They both still hold those positions as of July, 2021. Hub Promotional Group rebranded to HPG in 2020 and has annual revenue of more than $190 million.
Posts about OrigAudio on Shark Tank Blog
Mark Cuban Ultimatum to Shark Tank Entrepreneur OrigAudio
OrigAudio Company Information
More products from this episode! Check out other businesses that participated alongside OrigAudio.
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