First Defense Nasal Screen
DEAL
EPISODE SUMMARY
🕓 Air Date: March 25, 2011
Asking For:
$500,000 for 10%
Investor:
Mark Cuban, Kevin O'Leary, Daymond John (3)
Deal:
$750,000 for 30% equity with 10% royalty in perpetuity
PRODUCT SUMMARY
First Defense Nasal Screens are lightweight, non-inserted, almost non-visible nasal screens that reduce the inhalation of allergens, pollens, pollutants, pet danders, molds, viruses, and more by up to 99%.
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Background Story
Joe Moore, President and CEO of the First Defense Nasal Screen Corporation, spearheads a groundbreaking solution to combat airborne contaminants. Based on the west coast, the company is nestled in the heart of innovation in the United States. Joe, a former military serviceman, draws upon his diverse experiences to pioneer a product that addresses the ubiquitous issue of polluted air. His journey began after facing personal health challenges, which led him to delve into the realm of respiratory wellness. With a deep-seated commitment to enhancing public health, Joe embarked on a quest to develop a revolutionary solution.
Armed with his military background, Joe possesses a unique perspective on the importance of safeguarding individuals from environmental threats. Motivated by his own struggles and a desire to make a meaningful impact, he tirelessly pursued the creation of the First Defense Nasal Screens. Through meticulous research and development, Joe and his team engineered a game-changing product that offers unparalleled protection against allergens, pollutants, and pathogens.
The innovation lies in its lightweight, non-inserted design, setting it apart from conventional nasal filters. Drawing inspiration from his military training, Joe conceptualized a solution that prioritizes ease of use and effectiveness, ensuring maximum convenience for users. Driven by a passion for improving respiratory health and a dedication to innovation, Joe Moore and the First Defense Nasal Screen Corporation stand at the forefront of the battle against airborne contaminants, poised to revolutionize the way individuals protect themselves from harmful pollutants and allergens.
The Product
The First Defense Nasal Screens represent a groundbreaking solution to combat airborne contaminants effectively. Utilizing a lightweight and non-invasive design, these screens provide users with a discreet and hassle-free method of respiratory protection. The screens work by adhering to the nasal passages, forming a barrier that filters out allergens, pollutants, and pathogens as air is inhaled.
This innovative approach not only reduces the risk of respiratory issues but also enhances overall well-being by promoting cleaner air intake. Designed for universal application, the screens cater to a wide range of users seeking relief from allergies, respiratory conditions, or simply looking to safeguard their health in polluted environments. Their non-intrusive nature ensures comfort and convenience, allowing users to go about their daily activities without interference.
The product can be purchased directly from the First Defense Nasal Screen Corporation’s website or through authorized retailers. Pricing details may vary depending on the quantity purchased and any ongoing promotions. With its clinically proven efficacy and user-friendly design, the First Defense Nasal Screens offer a cost-effective and practical solution to the pervasive problem of contaminated air, empowering individuals to breathe easy and live healthier lives.
How It Went
The company’s position before Shark Tank
Prior to entering the Shark Tank, the First Defense Nasal Screen Corporation had positioned itself strategically in the market, poised for significant growth and success. With a game-changing product and a robust business strategy, the company had already secured a substantial order from a client in the United Arab Emirates, valued at $8 million over the next six years. This contract not only provided a strong financial foundation but also validated the product’s efficacy and market demand on a global scale. The company’s partners included distributors and clients in the Middle East, highlighting its ability to forge strong relationships and penetrate lucrative markets.
First Defense Nasal Screen Corporation catered to a diverse customer base, ranging from individuals seeking relief from allergies and respiratory issues to organizations concerned with air quality in their facilities. This broad appeal positioned the company for widespread adoption and market penetration. Funding for the company primarily came from the founder, Joe Moore, who had invested nearly $1 million into the product. Additionally, the company received support from friends and family, demonstrating confidence in the product’s potential and the founder’s vision.
With available capital from the Shark Tank deal and ongoing revenue from existing contracts, the company was well-positioned to scale its operations and capitalize on emerging opportunities in the respiratory wellness market. The company was likely structured as a closely-held corporation, with Joe Moore serving as the President and CEO. The team likely comprised professionals with expertise in product development, marketing, and distribution, working collaboratively to drive the company’s growth and success.
The Negotiations:
The negotiations in the Shark Tank for the First Defense Nasal Screen Corporation were intense and reflective of the product’s potential for success. Joe Moore initially sought $500,000 for 10% equity in the company. The Sharks were immediately intrigued by the product’s innovative design and significant market opportunity. However, questions arose regarding the company’s financials and distribution strategy. Multiple Sharks made offers, each aiming to secure a stake in the promising venture.
Mark Cuban, Kevin O’Leary and Daymond John joined forces, offering $750,000 for 30% equity and a 10% perpetual royalty. This offer represented a significant investment in the company’s future growth while allowing Joe Moore to retain majority ownership. Despite receiving a higher offer of $4 million from another Shark, Joe Moore chose to accept Daymond John, Mark Cuban and Kevin O’Leary’s offer. His decision was driven by a desire to maintain majority ownership and continue pursuing his vision for the company.
The negotiations showcased Joe Moore’s commitment to his product and his willingness to stand firm in his beliefs. Ultimately, the negotiation process highlighted the value of the First Defense Nasal Screen Corporation and its potential to revolutionize the respiratory wellness market. The deal provided the company with the resources and expertise needed to accelerate its growth and bring its innovative product to a wider audience.
