The first entrepreneurs into the Shark Tank this week were presenting their business Inboard Technologies. They were looking for $750k in exchange for 4% in their business. That’s right! We are looking at a valuation of 18.75 MILLION DOLLARS.
Anyway, they have developed an electric skateboard targeted toward urban commuters. It boasts better tech than any other product on the market sporting in-wheel motors, an internal battery, and headlights. It also travels at 20mph and has a range between 7 & 10 miles.
As for the business’ numbers, they retail for $1399 with a margin of around 65%. They have also been able to raise $2.7Mill at a $10Mill valuation in their last round. On top of that, they have seen $5.6Mill in pre-orders.
As the Sharks started to share their thoughts, it was obvious that the room was divided. Primarily, the divide was represented by Mark & Robert’s opposition to Chris Sacca’s position. Both Mark and Robert could not see the market for such a product. They felt it was too much of a niche, most of which would probably rather stick to their current choice of skateboards than pay the price for this new tech. All the while, Chris maintained that there are plenty of people looking for a more efficient and reliable way to commute within an urban market.
Personally, it’s hard for me to speak to either position. I live in a suburb of the small city of Myrtle Beach, SC. No one in this market would even give this product a passing glance. At the same time, I can definitely see its appeal. I have visited several large cities and been shocked at the struggle to get around and commute to your desired destination. If I lived and had an office in New York City, I would buy this product in a heartbeat. Taxis are annoying. Uber charges add up. Biking almost certainly voids any personal hygiene routine you took part in that morning. This is a new product that really answers the call for a better mode of transportation within certain markets.
That is the keyword though: Certain Markets.
Are those markets big enough? I won’t pretend to know what kind of realistic statistics could make up their customer base. It’s all well and good to quote the stats reflecting the number of people who commute by foot, bus, bike, or longboard. The problem is that many of those people are perfectly satisfied with those methods of transportation for whatever reason. Obviously one their major targets could be those already using bikes or longboards. These people already see the value of personal vehicular transportation, even though it is manual rather than motorized. These are the potential customers closest to their product who could possibly be sold on a “better wheel” for lack of a better (and less “punny”) term.
Anyway, after some majorly insane back and forth that I barely kept up with during the episode, they settled on a deal with Lori and Kevin for a $750k loan with 9% interest over 36 months in exchange for 4% equity.
As much as I am uncertain of a product like this, I am extremely optimistic about these guys! It’s definitely a cool product. Though they do have competition, they are doing what makes many inventions great! They are improving on what has already been done. Not everyone has to come up with something entirely new. Sometimes you just have to come up with something new to add to something that already exists in order to make it better. They have obviously accomplished that. Whether the market will adopt their innovation remains to be seen, but I am definitely rooting for them. And if they ever wanted to send me a board to test out, I would not complain in the least!