It’s no secret that single-use plastics are bad for the environment.
With 1,000,000 bottles of water consumed every minute globally, Justin Wang is on a mission to reinvent the way that consumers view reusable water bottles.
Over time, reusable bottles can develop an odor due to bacterial colonies forming in the water bottle itself. This leads to many consumers discontinuing the use of their reusable water bottles and moving back to single-use plastics.
To combat this problem, Justin has developed Larq, the world’s first self-cleaning and purifying water bottle.
Using patented, push-button technology Larq bottles use a specially developed UV purification process to eradicate 99.99% of harmful bacteria, viruses, and more.
Key Takeaways for the Time-Constrained Reader:
- Innovative Solution to a Global Problem: Larq addresses the environmental impact of single-use plastics by introducing a self-cleaning, purifying water bottle.
- Patented Technology: Utilizes UV purification to eliminate 99.99% of harmful bacteria and viruses, tackling the issue of odor and contamination in reusable bottles.
- Impressive Market Appeal: Achieved the highest valuation in Shark Tank history, highlighting significant consumer and investor interest.
- Strong Financial Health: Since its 2018 launch, Larq reports consistent sales growth, with expectations to exceed $14 million in sales for the year.
- Social Mission: Commits to donating 1% of revenue to global clean water initiatives, marrying business success with positive environmental impact.
- Shark Tank Success: Secured a $1,000,000 investment from Sharks Lori Greiner and Kevin O’Leary for 4% equity, showcasing strong business acumen and potential for growth.
Does this self-cleaning water bottle have you thirsty for a deal? #SharkTank
— Shark Tank (@ABCSharkTank) April 17, 2021
The Largest Valuation in the History of Shark Tank
With the highest valuation in Shark Tank history, Justin came to the Shark Tank seeking a $500,000 investment in exchange for 1% equity in Larq.
With a market size of $300,000,000,000 worldwide and a sales base that continues to exponentially grow, Justin believes his company’s valuation makes sense. Since launching in 2018, Larq continues to increase its sales year-over-year and is expected to close the year in excess of $14,000,000 in sales.
With $6,500,000 in the bank, the Sharks are very impressed by the financial health of the business as well as the social mission they have adopted in donating 1% of all of their revenue to partners that help people globally have access to clean water.
Three Sharks Are Interested in Investing in Larq
Kevin O’Leary offers to invest $500,000 in exchange for 4% equity, while Lori Greiner offers the same amount for a 5% equity share. Robert Herjavec also extended an offer to Larq, offering to invest $500,000 in exchange for 3% equity and an additional 2% in advisory shares.
Justin counters and asks each of the Sharks to invest $500,000 each for a total investment of $1,500,000.
In exchange for their investment, he would give them 4.5% equity to share with an additional 1% in advisory shares for a total valuation of $33,000,000. Because he feels that the deal is getting too complicated, Robert drops out of negotiations.
Lori and Kevin agree to partner with each other and work with Justin to agree to an investment of $1,000,000 in exchange for 4% equity to be shared between them.
The valuation of the CENTURY!!
— Daymond John (@TheSharkDaymond) April 17, 2021
Whenever an entrepreneur says 1%, you know their sales must be good! #SharkTank @ABCSharkTank #Larq
— Barbara Corcoran (@BarbaraCorcoran) April 17, 2021
Would you have invested in Larq if you were a Shark? Do you think that Justin made a wise decision in complicating the offer, causing Robert Herjavec to drop out? Start the conversation in the comments below!