SBU Net Worth 2022 – What Happened After Shark Tank
Entrepreneurs Daniel Wood and David Martschinske entered the Shark Tank asking for $300 000 in return for 10% of their business, Focus Designs, which produced the Self-Balancing Unicycle.
Pitching their self-balancing, hands-free, battery-powered unicycle, the pair secured an investment but for 33% equity from two Sharks.
Which Sharks chose to ride the unicycle and how the companies net worth hit zero.
SBU QUICK FACTS
Name |
SBU (Self-Balancing Unicycle) |
Company Net Worth: |
Out of business |
Pitch: |
Self-balancing, motorised unicycle |
Entrepreneur: |
Daniel Wood and David Martschinske |
Asked For: |
$300 000 for 10% |
Deal: |
$300 000 for 33% |
Shark: |
Kevin O’Leary and Robert Herjavec |
Monthly income: |
Out of business |
What is SBU?
An SBU is a self-balancing unicycle. It is the first commercially available personal transporter of its kind.
Although unicycles existed long before the SBU, the SBU is unique in that it assists the rider in balancing the vehicle.
The SBU is an electric device that is battery-powered and has the ability travel approximately 2 hours on a full charge. Its maximum speed is 15 miles per hour.
The SBU has built-in sensors, gyros, accelerometers and a hub-mounted motor that allows the rider to maintain balance whether accelerating or decelerating.
Who are Daniel Wood and David Martschinske?
Daniel Wood is the designer and inventor of the self-balancing unicycle, dubbed the SBU.
Woods built a prototype of the SBU from spare bicycle parts in his garage while still working at US Digital in Vancouver, Washington. When he was laid off, he formed his own company, Focus Designs, where he was the CEO.
David Martschinske joined Focus Designs as the COO, to help market the SBU.
What happened during the pitch?
Think unicycle; think clown! Woods and Martschinske entered the Shark Tank on their SBUs which they rode in circles in front of the Sharks, to much laughter.
They began their presentation in earnest, explaining what the SBU was and why it was unique. They went on to pitch for $300 000 for 10% of their company.
Woods launched into a technical description of the components of the SBU that allowed the vehicle to self-balance and be intuitive to the rider’s movements.
The only Shark that did not look disengaged was Mark Cuban.
After a further demonstration, Woods invited the Sharks to try the SBU. Robert Herjavec got a quick training session and succeeded in learning the rudiments.
Kevin O’Leary also wanted a go! O’Leary concluded that the experience was cool and he wanted to know the cost because he wanted one! Woods told him $1 800…or free if he gave them a deal!
Woods explained that their overseas factory had produced 100 units in the previous week, which had sold out.
The investment
Lori Greiner told the pair that although she loved their personalities, she didn’t feel passionate about the SBU and she declared out.
Daymond John told the entrepreneurs that he wasn’t prepared to take the risk and opted out.
Mark Cuban didn’t like the idea of overseas manufacturers controlling the quality of production. He liked the SBU, but went out.
When Herjavec looked poised to go out, Woods informed him that the technology that he had designed was patented. John asked how much had been generated in licensing fees. Woods informed him $25 000 in fees in the last three months.
Herjavec was impressed. He did not agree with the valuation of the business, therefore he offered $300 000 in exchange for 33% equity. Woods and Martschinske looked disappointed at the implied valuation of their business.
O’Leary then stepped in and said he would be happy to partner with Herjavec on the deal.
The pair accepted the deal and hands were shook.
Conclusion
After Shark Tank, Woods and Martschinske withdrew from the deal and the investment fell through.
Also, after the show, two new versions of the SBU were added to the product line. The transporter was featured on Mythbusters and Tosh.0.
The SBU was available on Amazon and directly from Focus Designs. However, currently it is listed as unavailable and discontinued.
