Highlights
- Mark Burginger pitches Qubits, seeking $90,000 for 51% equity, and secures a conditional deal with Daymond John, contingent on securing a toy manufacturing deal.
- Qubits offers a unique design, allowing children to build stronger and more flexible 3D structures compared to traditional building toys like Lego.
- Despite the deal with Daymond not materializing, Qubits succeeded by partnering with Discovery Toys, achieving $1 million in annual revenue by 2022.
Overview
| Category | Details |
|---|---|
| Name | Qubits |
| Founder | Mark Burginger |
| Industry | Toys / Construction Toys |
| Product | Flexible and customizable building toys for kids |
| Funding | Seeking $90,000 |
| Investment Ask | $90,000 |
| Equity Offered | 51% |
| Valuation | $176,471 |
Mark Burginger comes to Shark Tank episode 110 with his Qubits building toys. A former member of the USAF, and holding a degree in Architecture, Burginger created the toys to permit children to build outside the box, creating 3D structures that are stronger and more flexible than Legos or other building toys currently on the market.
Burginger previously created, grew, and sold a balloon company that reached 2 million in sales during its peak years, so he does come to the table with a proven track record. His Qbits toys are based on designs drawn from nature. The pieces snap together like other building toys, but the unique shape and flexibility allow for a much greater range of design over traditional blocks.
Will the Sharks bite? Burginger has been working out of his garage, and he’s concerned about his debt and ability to grow the business.
Qubits Shark Tank Recap
Burginger comes into the Shark Tank looking for a $90,000 investment, against a 51% investment. He briefly demonstrates his toys and explains the concept. Barbara Corcoran is immediately intrigued, and asks for a closer look. Robert Herjavec is a bit skeptical. The Sharks usually demand a larger share than entrepreneurs are willing to offer. Burginger’s offer of 51% seems exceedingly generous, and the Sharks smell something fishy. Herjavec questions the decision to offer the controlling share. Burginger explains that he wants to build a strong board of directors, and he wants the Sharks on board with his product.
Kevin O’Leary asks for numbers. He wants to know how much Burginger has been able to sell. The Sharks aren’t impressed with his $8,000 in sales. O’Leary forcefully advises that Burginger needs to pursue a deal with one of the Big Four toy companies. Without a toy company deal on the table, O’Leary sees no investment opportunity. He’s out. Herjavec tells Burginger that he’s “wasting his time” because the market is already dominated by construction toy giant, Lego. He’s the next Shark to decline to make an offer.
Kevin Harrington doesn’t believe that Burginger can compete with the big toy companies. He’s out. There are only two Sharks left. Barbara Corcoran drops out without further explanation. Daymond John is the last Shark, and Burginger’s final chance. John is impressed with Burginger’s bold move in offering 51%. He believes it’s possible the toy could become a strong brand. He offers a deal, $90,000 for the 51%, with a contingency: The deal depends upon reaching a deal with a major toy manufacturer.
Qubits Shark Tank Update
Despite John’s connections and support, Burginger was not able to reach a deal with any of the four toy manufacturers the pair contacted. The deal with John didn’t materialize, but the two remained in contact. John became a mentor to Burginger, who was able to strike a deal with Discovery Toys, a toy distributor with a home-party business model. The deal proved successful, and Discovery gave Burginger the platform he needed to bring Qubits into the public eye. Sales soared.
Today, Qubits remains a family business, with a healthy sales record. Even without a Shark Deal, Qubits became a success. As of July, 2022, the company is still in business. It moved its manufacturing to Hendersonville, NC and has annual revenue of $1 million.
Posts about Qubits on Shark Tank Blog
Qubits Toys Crowdfunding on IndieGoGo
Qubits Mark Burginger After The Shark Tank Show
Qubits Toys: Minnows in the Shark Tank
Qubits Company Information
Video
Speak Your Mind