Entrepreneur Max Gunawan lit up ABC's Shark Tank on Friday by attracting competing offers from all five sharks for his lighting company, Lumio.
Launched in 2013 following a Kickstarter campaign that raised nearly $580,000, Lumio makes a flexible, portable lamp that folds into a compact book. During the company's first year of business, Lumio generated $1 million of revenue without any advertising or marketing, and was on track to reach more than $2 million in its second year.
While every shark expressed interest in the product, which sells online and at the Museum of Modern Art in New York and San Francisco, Mark Cuban was the first shark to ask Gunawan about his vision for the company.
"There has to be something that follows this," Cuban said. "What's next?"
Gunawan's next idea--still in the development phase--is a miniature version of the product that folds into a portable lamp the size of a pocket book.
"I want this to live in your bag," Gunawan said about the miniature version, adding that the product would also be able to charge mobile devices.
Gunawan came to the tank seeking $250,000 for 8 percent of his business, and wound up starting a feeding frenzy from the sharks, attracting five different offers.
First came Robert Herjavec, who offered $250,000 for 10 percent of the company. Kevin O'Leary offered the same amount for just 4 percent of the company, contingent upon him receiving a $7 royalty until doubling his money.
Lori Greiner agreed to invest $250,000 for 12 percent, throwing in a $250,000 line of credit, while Mark Cuban offered $500,000 for 16 percent. Daymond John made the largest offer--$750,000 for 20 percent--but before Gunawan could make a decision, Robert Herjavec sweetened his deal.
"I don't think you should give up that much equity," he said. "I’ll change from $250,000 for 10 percent to $350,000 for 10 percent."
With that, Gunawan accepted Herjavec's deal, leaving four very disappointed sharks.
"He's exactly who I wanted to partner with, and I got a great deal," Gunawan said.