Shark Tank: Animated Lure Accepts $325,000 From Kevin O’Leary

If you want to snag a Shark in the Shark Tank, you can catch their attention with a robotic, life-like fishing lure. Mimicking the natural movement of fish, Animated Lure is a rechargeable fishing lure that can be used multiple times to try to land a big catch. Offered in multiple sizes, the Animated Lure can hold a charge up to 2 hours. This robotic upgrade to traditional live bait allows fishermen to land a big catch without having to hassle with acquiring live bait for every trip.

While Sobhan Sanaee and Kanz Kayfan have found success through selling directly to consumers, they came to the Shark Tank hoping to hook a Shark that will help them to break into the retail scene to sell the Animated Lure in big-box sporting good stores. They would also like to snag a partner that is willing to invest $325,000 in exchange for 10% equity in Animated Lure. The company has sold $247,000 year-to-date which the Sharks found to be an impressive number during a pandemic. The Sharks are also impressed that they own their own company in its entirety and have zero debt which makes them a much more attractive business partner.

Because this is a niche market, several Sharks drop out of the negotiation phase simply because they can not connect to the product or the market. Although Kevin O’Leary is critical that he does not believe they are a company yet, that they are only a product, he does decide to extend them an offer. He serves up two offers to Sobhan and Kanz. One offer is a royalty offer with an equity share component and the other as a straight equity deal. Kevin first offers $325,000 in exchange for a $3 per unit royalty until $1,000,000 is paid, plus a 10% equity share. His second offer is a $500,000 investment in exchange for 20% equity. Because they are not willing to give up that much equity in their company, Sanaee and Kanz accept Kevin’s first offer that is split between royalties and equity.

Did we hear the word royalty?! #SharkTank @kevinolearytv pic.twitter.com/k5QohSupjY

— Shark Tank (@ABCSharkTank) October 31, 2020

See Also :

It’s not every day a shark gets lured back in after going out, but Animated Lure was too good – I had to bite! #sharktank pic.twitter.com/TIiiAyavzU

— Kevin O'Leary aka Mr. Wonderful (@kevinolearytv) October 31, 2020

Nothing fishy about this pitch! In fact, I think this it's a great idea. @AnimatedLure #SharkTank @ABCSharkTank

— Barbara Corcoran (@BarbaraCorcoran) October 31, 2020

What do you think of this business? Would you purchase or invest in Animated Lure? Do you think that Kevin made a wise investment? If you were Sanaee and Kanz, which offer would you have accepted? Let us know in the comments below!