Last into the tank is Trunkster, zipperless luggage, seeking $1.4 million for five percent equity.
Key Takeaways: Trunkster on Shark Tank
- Pitch: Seeking $1.4 million for 5% equity.
- Product: Zipperless luggage with a roll-up door and USB ports.
- Valuation: Pre-sold over $2 million worth of luggage.
- Investment: Final deal with Mark Cuban and Lori Greiner for $1.4 million for 5% equity and $1 royalty per unit until the investment is repaid.
- Latest Update: Mark Cuban and Lori Greiner did not lose money on Trunkster because the deal fell through during due diligence due to product quality issues and difficulties with the founders
Trunkster Company Overview
The Trunkster luggage allows easy access with a roll-up door and USB ports for easy charging. The cost starts at $325 and they have raised over $1.5 million. They have pre-sold over $2 million worth of luggage.
Lori Greiner finds it a clever product and they all acknowledge their gargantuan valuation. The sharks question whether they can be more flexible with their valuation, which they are willing to be.
Barbara Corcoran is the only shark to be open about not liking the luggage for its masculinity, weight, hard shell and lack of feedback. She goes out.
Why not license this technology to the big players in the luggage industry? #SharkTank.
— Novafan23 (@Novafan23) December 5, 2015
Robert Herjavec offers 30 percent for the risk involved, which O’Leary wants to partner on. Herjavec declines. O’Leary then offers 37 percent instead.
Greiner can see the growth and expansion of the product but worries about losing money. For that reason she offers the $1.4 million to fund purchase orders, in addition to 15 percent equity. Mark Cuban is willing to partner with Greiner.
They counter back a royalty of $1 per unit until the money is paid back with the original offer of $1.4 million for five percent.
This product could actually eliminate travel and packing issues. #SharkTank @trunkstercase
— In With The Sharks (@inwiththesharks) December 5, 2015
Final deal: Mark Cuban and Lori Greiner for $1.4 million for five percent with $1 royalty until the money is returned in full.
Latest Update: Did Mark and Lori Lose Money on Trunkster?
Mark Cuban and Lori Greiner did not lose money on Trunkster because their deal on “Shark Tank” ultimately fell through during the due diligence process.
After the episode aired, issues with the product’s quality, including problems with the built-in weighing scale and GPS, were discovered. Additionally, the founders were found to be difficult to work with.
As a result, Mark and Lori decided not to proceed with the investment .
Trunkster went out of business, failing to fulfill many customer orders and facing significant returns, which led to its downfall .