Krystal Persaud is a millennial. As a millennial, she stands in solidarity with others just like her that care very deeply about finding alternative energy sources and reducing our reliance on fossil fuels. By using her professional expertise in electronic product design, Krystal has committed herself to bringing solar options to residents even when they do not have access financially and logistically to large roof-top solar panels. Her company, Grouphug, has two main options for affordable solar panels: smaller in-home panels and larger solar panel designs that can be used in businesses as both a statement piece and energy source.
Grouphug creates solar panels that are aesthetically pleasing and functional. They simply are hung in any window with sunlight access. The solar energy will then charge the internal battery which later can be transferred by the USB port to charge and power handheld electronic devices such as phones and tablets. Grouphug brings solar capabilities to residents that previously could not access this type of energy such as apartments and businesses in urban settings. For businesses, Grouphug’s specialty designs can allow multiple users to charge devices while they wait, creating a value add and a social and environmental responsibility component to any business.
Anyone ready to harness solar cellular power? ☀️#SharkTank
— Shark Tank (@ABCSharkTank) March 21, 2020
After launching Grouphug on Kickstarter in June of 2019, Krystal has received $80,000 in sales so far but has not yet begun to fill orders. She is looking for a Shark that is willing to invest $150,000 for 10% of Grouphug. Although she has off-shore manufacturing established because of her contacts from her previous job, she needs an investment partner that can help her scale and drive her costs down and her margins up so that she can make her solar panels affordable.
Most of the Sharks decline to make offers because they feel that she is in the tank too early and are afraid that they will not get their return on investment. Mark Cuban, however, sees value in the B2B side of Grouphug. He can see large companies sponsoring solar panel charging stations. Mark offers to make an investment of $150,000 in exchange for a 25% equity share. He is not willing to negotiate. Grouphug accepts Mark Cuban’s offer.
What do you think of Grouphug’s product? Would you purchase these solar panels and use them in your home or office to offset the electricity needed for charging devices? Do you think that Krystal made a wise decision in giving up so much equity in her company? Start the conversation in the comments below!