Last Friday on Shark Tank, Corey Egan and Swapnil Bora pitched their company, Ilumi Solutions. Their product is intelligent LED light bulbs which can be controlled from a wireless device. They asked the Sharks for $350,000 for 15% equity in their company.
Cory and Swapnil stated to the Sharks that they are in the final stages of development. They created a light bulb that cost $90 but it lasts up to 20 years. This system allows you to control all the lights in and around your house from your phone.
Robert pried at them and soon discovered they are selling a system not just a bulb. They have 6 utility patents pending on the product. Robert sees room in the high end light bulb market. Kevin thinks this can easily fall into a licensing deal. The money they will be given gets the product into the costumer’s hand. Lori is concerned in regards to competition, and says that they can’t be competitive if they don’t get the IP.
In the end, Robert put a deal on the table for $350,000 for 35% equity in the company then ended up dropping out as he realized the market is not as large as he thought. Mark offered $350,000 for a 25% stake in the company. Cory and Swapnil immediately took that deal.
Once a company finds the right investors anything is possible. If you or anyone you know has an invention idea or small company and need help, please contact us at New Product Consulting.