It’s a proven model and the market for it is huge, as the entrepreneurs explain.
When the numbers are all said and done, the sharks begin a vicious bidding war over investing in the custom goggle company. They cost $14 to make, but customer acquisition is $24.
When asked, they reveal that the goggles sell for $55 retail. Their lifetime revenue is $3 million, with $1.5 million coming in in the first half of 2021. However, Bo and Rasmus explain that since they opened in 2018, they have gained 40,000 customers, including some of the best athletes in the world. It’s rare that people come onto Shark Tank with a $20 million valuation, and rarer that they offer so little equity for so much money. The sharks are impressed with The Magic 5 as a company, but the valuation makes them laugh.
