If you want to snag a Shark in the Shark Tank, you can catch their attention with a robotic, life-like fishing lure.

Key Takeaways: Animated Lure on Shark Tank

  • Investment: Accepted Kevin O’Leary’s offer of $325,000 in exchange for a $3 per unit royalty until $1 million is paid, plus 10% equity.
  • Product: Rechargeable robotic fishing lure designed to mimic natural fish movements.
  • Sales and Fundraising: Impressive $247,000 in year-to-date sales despite the challenges of the pandemic.
  • Shark Interest: Kevin O’Leary recognized the product’s potential, though other Sharks saw it as a niche market.
  • Entrepreneurs: Sobhan Sanaee and Kanz Kayfan emphasized their focus on expanding into retail and big-box sporting goods stores.
  • Partnership: Kevin O’Leary saw potential for growth with a mix of royalty and equity sharing.

What is the Story Behind Animated Lure?

Mimicking the natural movement of fish, Animated Lure is a rechargeable fishing lure that can be used multiple times to try to land a big catch.

Offered in multiple sizes, the Animated Lure can hold a charge up to 2 hours. This robotic upgrade to traditional live bait allows fishermen to land a big catch without having to hassle with acquiring live bait for every trip.

While Sobhan Sanaee and Kanz Kayfan have found success through selling directly to consumers, they came to the Shark Tank hoping to hook a Shark that will help them to break into the retail scene to sell the Animated Lure in big-box sporting good stores.

They would also like to snag a partner that is willing to invest $325,000 in exchange for 10% equity in Animated Lure. The company has sold $247,000 year-to-date which the Sharks found to be an impressive number during a pandemic. The Sharks are also impressed that they own their own company in its entirety and have zero debt which makes them a much more attractive business partner.

Because this is a niche market, several Sharks drop out of the negotiation phase simply because they can not connect to the product or the market.

Although Kevin O’Leary is critical that he does not believe they are a company yet, that they are only a product, he does decide to extend them an offer. He serves up two offers to Sobhan and Kanz. One offer is a royalty offer with an equity share component and the other as a straight equity deal. Kevin first offers $325,000 in exchange for a $3 per unit royalty until $1,000,000 is paid, plus a 10% equity share.

His second offer is a $500,000 investment in exchange for 20% equity. Because they are not willing to give up that much equity in their company, Sanaee and Kanz accept Kevin’s first offer that is split between royalties and equity.

Wrapping Up

What do you think of this business? Would you purchase or invest in Animated Lure? Do you think that Kevin made a wise investment? If you were Sanaee and Kanz, which offer would you have accepted? Let us know in the comments below!

Latest Update: Where is Animated Lure Now?

Animated Lure has seen an increase in exposure and sales since appearing on Shark Tank.

Kevin O’Leary’s support has helped them streamline their production process and scale into retail outlets, with a focus on outdoor and sporting goods stores. The company is now exploring new product lines and expanding internationally.