Charlotte startup TheMagic5 recently returned to the "Shark Tank" series — this time to share how its $1 million deal secured on the show last year has transformed the company.
Co-founders Rasmus Barfred and Bo Haaber made their TV debut on the show when it aired on Oct. 31, 2021. The duo pitched to the five "Shark Tank" investors and walked away with much more than they anticipated.
Haaber and Barfred originally asked the sharks for $500,000 for a 2.5% stake. All five of the investors made bids. The founders accepted an offer from Robert Herjavec for $1 million and 6.5% equity in TheMagic5. After the show, a second shark, Mark Cuban, couldn't let the deal pass and offered to split Herjavec's investment, with each contributing $500,000 for a 3.25% stake in the company. "Both of them can contribute with different things to our business besides just the capital we raised from them," Barfred told CBJ in a recent interview.
One year later, and the startup has made the most out of its "Shark Tank" deal.
TheMagic5, a high-tech custom swim goggle company, saw its daily website traffic jump from 30 to 30,000 visitors after airing on the show.
The company's revenue jumped to $45,000 within 24 hours of the TV appearance, said Haaber and Barfred on the "Shark Tank" follow-up segment that aired Oct. 21. The company has sold more than 85,000 goggles and made more than $4.1 million in sales since the initial appearance.
Now, TheMagic5 is looking to offer more than just swimming goggles. The company has leveraged its technology to create custom-fit virtual reality oculus headsets and launched a Kickstarter campaign to fund the new product, which is still in the development phase. Customers can purchase a pair of VR headsets, and they will be delivered at a later date next year.
"The way that we came up with this product is we started to use the virtual reality headsets to have some of our meetings," Barfred said. "But Bo, myself and our third co-founder, Niklas (Hedegaard), were like after 30 minutes of wearing that headset, it's too uncomfortable. So, we tuned our technology and enabled it in a way where we can custom produce these to fit your face."
The founders have also been focusing on the core of their business — technology — to expand their offerings. This approach and exposure from the show has led the startup to a partnership with Canyon Bicycles, a German manufacturer of various bike types including road, mountain, triathlon, hybrid and e-bikes.
"They (Canyon) have reached out to us and we have been working with them for the better part of this year," Barfred said. "We use our approach to product development and technology to work with their product team and make their products better."
TheMagic5's customizing technology will be used to provide better control and a more comfortable ride experience on Canyon's bikes.
During the follow-up segment, the founders said in addition to the funding, Cuban has provided strategic guidance to help grow their business. Herjavec showed them how to gain new customers, especially online. After the deal, the company began working with Kasia Wasick, the world's second-fastest female 50-meter freestyle swimmer, according to TheMagic5 website.
Haaber said although the startup has several professional swimmers that utilize the goggles, the majority of its customers purchase the product for recreational swimming. "It really speaks to everyone, and most of our customers are just swimming two times a week or once a week," he said. "Just because it's such a fantastic sport, and it's super healthy."
