for 1% of my company, LARQ. [ Laughter ] Have you ever noticed
that funky smell coming from your
reusable water bottle? I bet you have.
Oh, man. And if you're
like most people, you do what we call
the sniff test. [ Sniffs ]
Whoo-whee. The average
reusable water bottle contains more bacteria colony than your dog bowl
or toilet seat. No wonder they stink. And it's no wonder
it's so tempting to reach for a single-use
plastic water bottle. The result —
over one million of these guys are consumed
every single minute. And that's no good
for your health and even worse
for the environment. That's why we invented
the LARQ Bottle. The LARQ Bottle is the world's
first self-cleaning water bottle that purifies water on the go. With a simple press of a button
and in just 60 seconds, the LARQ Bottle activates our patented UV-C LED
technology, PureVis, to eradicate 99.99% of harmful and odor-causing
bacteria, viruses, and mold.
The result — pure water
from a pristinely clean bottle. So, Sharks, who's thirsty
for a great deal? [ Chuckles ] Just want to be clear
I heard you properly. $500,000 for 1%? That's correct, Robert.
O'Leary: Congratulations. Highest valuation ever requested
in the Shark Tank. You seem like
a reasonable human being. Tell us why
it's $50 million. By the way, in all transparency,
I have a couple of these. Oh, you do? Great.
Yeah. You do?
That is awesome.
I do. But what's the market
opportunity that justifies this? So it's a huge market.
Big water's a real thing. It's a $300 billion market
worldwide, of which reusable market
is only 7%, and it's growing. I tried to swear off of
single-use plastic water bottles several years ago. I bought several
reusable options, and sure enough, they ended up
in the back of the cabinet or in my gym bag. They would collect mold. If it sat in my car,
it would get stinky.
Ugh. So it's the self-cleaning part
that's worth — It's the self-cleaning
It looks to me like
you have a UV light in the top. Can you explain how this works
and what it does? This is actually
an optical system that's designed to reflect
the UV light inside. So simply you press this button.
The UV light turns on. My co-founder is a PhD
in physics from Caltech. He's engineered this
to bounce the optical light throughout the bottle. So then how many minutes
does it take to do that? We have two modes.
Our normal mode is 60 seconds. And then we have adventure mode,
which is three minutes — so if you want to take it to
a developing country or camping or you're just somewhere where
you don't quite trust the water. Justin, is it safer
than boiling water? It would be the equivalent
of boiling water for like 20 minutes.
Competition. Are you the only one that has
UV activation and cleaning? We launched
in October of 2018. We were the first one
on the market. We have about 10 patents,
both utility and design, around this product
and other products.
Wow, that's a lot. But there are
copycats out there that we're pursuing potential
legal actions for right now. So, Justin,
why is it worth $50 million? So we launched this product
in 2018, so we've been on the market
for a little under two years.
Almost two years, huh? Under two years, and in
our first full year in 2019, we did a little over
$5.5 million in sales. There you go.
In the last 12 months, we've done
over $9 million. This year, we're planning
on doing $14 million. How much are you gonna make
on the $14 million? So we brought on our first
outside venture capital round earlier this year
in January, and we leaned into
growing the business. So this year, we're expecting
to lose about $1 million. Herjavec: Justin,
how much did you raise? $6.7 million.
At what valuation? At a $31.7 million
valuation. Cuban: So, Justin,
let's talk real business. You've only raised
$6.7 million. How much do you have
in the bank? I have about $6.5 million. Okay, so you really haven't
had to spend anything, right? Good for you.
Yeah. What do these retail for? The one you have right there
is $95. I paid $95 for this?