Second chances are rare on Shark Tank.
That's what founder Jason Woods learned after he re-entered the Tank on Sunday's episode of ABC's business reality show. Woods pitched for a second time his electric jet bodyboard Kymera, which the Sharks tore apart in 2013--Daymond John called it the worst pitch he ever heard and Mark Cuban gave Woods some advice while rejecting him.
"You're not an entrepreneur, you're a want-trepreneur," Cuban said in 2013. "Find somebody else to run the business but it's not going to be me."
Woods did exactly that. Adam Majewski reached out to Woods as his first Shark Tank episode aired, expressing an interest in the product and a vision to build the business. Woods hired him as the project manager, and six years later, brought him into the Tank. Woods and Majewski were seeking $250,000 for 5 percent equity, and a shot at redemption.
Woods explained that the Pleasanthill, California-based business was more mature than when he first pitched the Sharks. For starters, the product is fully developed and ready to ship instead of the "garage prototype" the Sharks first saw, Majewski said. Kymera also raised $625,000 through several rounds of funding and Majewski said a large luxury boat maker, which he didn't name, wants to stock the product in 225 of its dealerships. Additionally, Kymera booked $900,000 worth of preorders in the past 12 months and expects to close the year at $2 million in sales. Despite these accolades, the company needed capital to build up its inventory.
However, the company's margins--at the time the segment was taped--weren't strong: it cost Kymera about $1,800 to make a $3,500 personal body board, the duo explained. Kevin O'Leary offered $250,000 for a 5 percent stake, and a $500 royalty per unit until $750,000 was recouped. John also tendered an offer: $250,000 for a 10 percent stake. But it was Robert Herjavec who surprised everyone, offering Woods $500,000 for 10 percent equity, rationalizing that it takes more money to compete in the watersports industry.
"I love second chances. That's one of the things that makes this country great," Herjavec said as he offered his deal. "Everyone deserves a second chance."
Woods was visibly shocked but accepted Herjavec's offer without negotiating. "If you're willing to give everything that you've got to what you believe in, you can make it happen," Woods said after leaving the Tank. "It may take a long time, but it's totally worth it."