Guard Llama Personal Safety Device Calls 911
DEAL
EPISODE SUMMARY
🕓 Air Date: April 14, 2017
Asking For:
$100,000 for 5%
Investor:
Barbara Corcoran
Deal:
$100,000 for 18%
PRODUCT SUMMARY
Guard Llama is a state-of-the-art personal security platform providing discreet and reliable security through a wireless Bluetooth remote. The device, resembling a llama, allows users to alert a 24-hour emergency dispatch center by double-tapping the button during an emergency, providing GPS location and personal profile information.
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Background Story
Guard Llama, headquartered in Chicago, Illinois, was founded by Nick Nevarez and Joe Parisi, entrepreneurs with a vision for revolutionizing personal security. The dynamic duo, driven by a shared commitment to ensuring the safety of individuals in emergency situations, embarked on this journey after identifying a critical gap in the existing security measures. Nick Nevarez and Joe Parisi bring a wealth of experience to the table, enhancing the credibility of Guard Llama. While their individual backgrounds span diverse industries, including technology and entrepreneurship, their shared passion for creating impactful solutions became the catalyst for the birth of Guard Llama.
The idea for Guard Llama was sparked by the founders’ realization that the traditional approach to emergency response, relying on 911 calls, was impractical in urgent situations. Motivated by the need for a faster and more efficient method to summon help, they drew inspiration from llamas, creatures known for their protective instincts. This inspiration led to the development of a wireless Bluetooth remote resembling a llama, serving as a discreet yet powerful personal security device.
Guard Llama’s inception was not just a business venture; it was a response to a societal need for swift and reliable security solutions. The founders, based in Chicago, chose to tackle this challenge head-on, leveraging their combined expertise to create a state-of-the-art personal security platform. Their commitment to innovation and a safer world has positioned Guard Llama as a frontrunner in the realm of personal security, with a product that seamlessly blends technology, practicality, and a touch of inspiration from the animal kingdom.
The Product
Guard Llama, a cutting-edge personal security platform, introduces a wireless Bluetooth remote that doubles as a discreet llama-shaped device. Priced at $10 per month or $100 for the year, this innovative solution is designed to provide quick and reliable security in everyday life.
The device works by allowing users to activate the Guard Llama system in emergencies with a simple double-tap on the button. This action triggers an immediate transmission of GPS location and personal profile information to a 24-hour emergency dispatch center. This streamlined process eliminates the need for time-consuming 911 calls, ensuring a swift response from law enforcement within 30 seconds.
Guard Llama’s benefits extend beyond traditional security measures. Its wireless Bluetooth functionality ensures ease of use within a 150-foot range of the user’s phone. Upon purchase, users receive instructions to set up their physical profile, crucial information for emergency responders. The product can be acquired through the company’s website, where users can conveniently buy and activate Guard Llama for themselves and their loved ones.
The unique features of Guard Llama, inspired by the protective nature of llamas, provide users with a reliable and discreet personal security solution. With a focus on quick response times and ease of use, Guard Llama is positioned as a technological beacon in the realm of personal safety, offering peace of mind in an unpredictable world.
How It Went
The company’s position before Shark Tank
Guard Llama has demonstrated robust performance since its launch, achieving $95,000 in sales, a testament to its growing market presence and acceptance. The company’s financial health is underpinned by strategic partnerships, innovative sales channels, and a focused approach to addressing the security needs of its target audience. One key factor contributing to Guard Llama’s success is its partnership with the National Association of Realtors. This collaboration has not only boosted sales but has also established the company as a reliable solution provider in high-risk situations faced by real estate professionals.
The strategic alignment with an industry-specific partner has fortified Guard Llama’s market position. While the company primarily utilizes classic online digital channels for customer acquisition, their in-person sales strategy, particularly in collaboration with the National Association of Realtors, has proven successful. This dual approach has allowed Guard Llama to reach a diverse customer base, enhancing its market reach. Guard Llama’s current funding sources are not explicitly mentioned in the provided transcript. However, the company’s financial health is reflected in its ability to secure partnerships and maintain a successful sales strategy.
The company’s profits and losses, along with available capital, are not explicitly disclosed, but the $95,000 in sales suggests a positive revenue stream. Guard Llama’s success in securing partnerships, developing effective sales channels, and generating sales indicate a well-organized and strategically positioned company. As Guard Llama continues to guard millions of lives, its current trajectory positions it as a prominent player in the personal security market with a solid foundation for future growth.
The Negotiations:
The negotiations for Guard Llama on Shark Tank were marked by a mix of skepticism, strategic offers, and a surprising twist. The sharks engaged in a lively discussion about the product’s viability, addressing concerns and probing into the company’s potential. Kevin O’Leary expressed reservations about potential liabilities and presented a unique royalty deal. He offered a $100,000 loan at a no-interest rate for 20%, with a $5 return for every sale until recouping $120,000, followed by the cessation of royalties. While unconventional, O’Leary’s offer aimed to mitigate potential risks and align incentives between the founders and the investor.
Barbara Corcoran, intrigued by the product’s potential, made a compelling offer. She proposed the same $100,000 loan at no-interest for 20%, with $2 per sale until recouping the investment. Additionally, she sought a 5% equity stake in the company. The founders, after a brief consideration, accepted Corcoran’s offer, securing her as a strategic partner.
Mark Cuban and Lori Greiner opted out of the deal due to reservations about the product, while Robert Herjavec raised concerns about the business model. Despite the diverse reactions, Guard Llama successfully secured an investment from Barbara Corcoran, who saw the potential in the product and its market positioning. The negotiation process highlighted the challenges and opportunities associated with bringing an innovative personal security solution to market, ultimately culminating in a deal that could propel Guard Llama to new heights in the industry.
