Shark Tank: Bunch Bikes Accepts $250,000 From Barbara Corcoran

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After vacationing in Sweden, AaronPowell returned home to the US on a hunt for the innovative bike design that his family enjoyed renting on his trip. Unable to find anything comparable in the US, Aaron decided to work with an international company to become an exclusive distributor of their bike design in the US. Bunch Bikes are electric-assist bicycles that feature a cargo container on the front of the bike. These can be used for easy seating of up to 4 children where they can look out the front of the bike. It can also be used for easily transporting groceries and other goods.

Hoping to partner with a Shark that can help him make Bunch Bikes more affordable and available to the masses, Aaron came to the Shark Tank seeking $250,000 in exchange for 10% equity. Initially, the Sharks voiced concern as Aaron has not developed a product but rather is a distributor of a product that is already preexisting. They fear there is nothing that would stop someone else from deciding to also distribute their product in the US. Although they like the product, they are concerned about others playing in his space, especially if they can get the costs down to a more affordable price point. Aaron puts the Sharks at ease letting them know that he is the only exclusive US distributor so any bikes with this design would need to come through him.

Although apprehensive about the distribution and competition side of the business, the sharks were impressed with the projection of $2.2 million in sales that Aaron was on track to land by the end of the year. The majority of the Sharks felt that although they would like to be a customer, they didn’t want to be an investor in Bunch Bikes. Barbara Corcoran admitted to her fellow Sharks and Aaron that she felt only “lukewarm” about the business, however, she did decide to offer to invest $250,000 in exchange for 40% equity. Unwilling to give up that much equity in the company, Aaron countered by asking for a $100,000 investment with a $150,000 loan in exchange for 15% equity. Barbara agreed to his counteroffer and they officially partnered together to grow Bunch Bikes.

If you were a Shark, would you have invested in Bunch Bikes? Do you think that Aaron made a wise decision to adjust his deal with Barbara to save the equity in his company? Start the conversation in the comments below!


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