Brad Baker, the founder and creator of VPCabs appeared on Shark Tank in 2016, presenting his thought of digital pinball machines. The sharks performed on the machines, Mark Cuban particularly having fun with himself. Initially, Baker was asking for $250,000 for 10% fairness in his firm, bringing the valuation for VPCabs to $2.5 million. Baker defined that in only a 12 months and a half, the corporate bought round 200 models for $750,000 in income and bought every machine for $3,000 to $9,500. Later, nevertheless, Baker would clarify his web revenue in 2014 was solely $12,000.
The sharks had been initially unconvinced of the concept. Particularly, Robert Herjavec and Lori Greiner believed that younger folks — VPCab’s audience — wouldn’t be excited about pinball with all of the high-quality online game choices out there in the marketplace. Considerations over a scarcity of proprietary software program pressured out Mark Cuban, as he feared a scarcity of aggressive benefit, and as much as 15% software program licensing charges made the margins for the corporate run too slim.
Nonetheless, entrepreneur Daymond John got here to the rescue, seeing a chance to combine together with his current tech agency, and supplied $250,000 for 30% of the corporate. Baker countered at 20%, and ultimately, the 2 would decide on the preliminary asking value of $250,000 with a compromise for 25% fairness in VPCabs.