"Couldn't love it more" — When Kevin and Robert went on a bidding war in Shark Tank

In Shark Tank season 14, Stephen Fazio and Austin Hillam pitched ZipString, a motorized device that spins a loop of string. The company sought $100,000 for 10% equity, presenting their gadget priced at $25 with a $6.35 manufacturing cost. Having sold 10,000 units and generating $277,000 in sales, the startup demonstrated market success through its $90,466 Kickstarter campaign.

After Lori Greiner passed due to early-stage concerns and Barbara Corcoran opting out, citing misalignment with her portfolio, the negotiation centered on Kevin O'Leary and Robert Herjavec.

"Alright guys, couldn't love it more, couldn't love it more seriously. The key for me is you got to keep going. You got to be the cool stringy floaty scientist geeky product. That's the investment I want to make, that's the ride I want to go," Robert said.

The entrepreneurs left the Shark Tank with Kevin and Robert’s combined offer in exchange for 20%.

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Robert Herjavec and Kevin O'Leary teamed up for ZipString deal on Shark Tank

The Shark Tank panelists engaged actively with the ZipString samples, examining the product's functionality and user experience. Robert Herjavec demonstrated visible excitement during the testing phase, while Barbara Corcoran and Kevin O'Leary focused on pricing strategy discussions.

The entrepreneurs explained their retail price of $25, eliciting mixed responses from the panel. The founders highlighted their successful Kickstarter campaign, which raised $90,466 in October 2021, proving early market interest.

The bidding started when Kevin O'Leary structured an offer of $100,000 for a perpetual $1 royalty per unit, with no equity. Other Shark Tank investors passed except Robert, who presented a competing offer of $100,000 for 20% equity.

Kevin immediately tried to undercut Robert, suggesting $100,000 for 15% equity. Robert also quickly adjusted his position.

"I'll do $100,000 for 10% exactly what you offer if you take the deal," Robert stated.

Then came the shift as Kevin suggested partnering with Robert instead of competing. The two Sharks collaborated to present a unified offer of $100,000 for 20% equity, proposing to split the ownership equally at 10% each. Austin and Stephen attempted to negotiate better terms, suggesting 15% total equity.

However, both Kevin and Robert maintained their position, emphasizing the value of having two Shark Tank investors as strategic partners. The founders carefully weighed their options, considering the potential benefits of dual Shark expertise against the higher equity stake. They finally accepted the joint offer from Kevin and Robert, finalizing the deal at $100,000 for 20% equity.

Mark Cuban voiced his perspective before the deal closed, expressing concerns about the product's long-term market sustainability. Barbara Corcoran opted out, stating the business didn't align with her investment portfolio. Lori Greiner also declined, explaining the product was too early in its lifecycle for her investment criteria.

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Product background

The ZipString concept originated when Austin Hillam saw a desktop version in his physics class. He then developed a smaller handheld model in Georgia Tech's lab facilities. The initial prototype won recognition in the 2021 Georgia Tech Printed Circuit Board Competition. The founders spent months refining the design in Hillam's basement workspace.

The product features a USB-rechargeable battery and allows users to start with small string loops before advancing to larger ones. Their design permits the string to move at 35 miles per hour while maintaining safety standards. The market response came through TikTok, where they got 20 million views on the first day itself.

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Post Tank performance

Shark Tank investor Robert Herjavec (Image via Getty)

As per Shark Tank Blog, post-show results validated the founders' decision. The company website attracted more than 100,000 visitors immediately after airing, with inventory selling out within minutes. By mid-2023, ZipString addressed the initial fulfillment challenges and expanded the product line with ZipString Luma, a glow-in-the-dark version.

The company reached a valuation of $1 million with annual revenue of $665,000, despite facing market competition from similar products, per Geeks Around Globe. The Georgia-based company, operating from Johns Creek, focused on managing customer expectations while scaling their operations to meet increasing demand.

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Shark Tank season 16 is airing on ABC network.