Aaron Powell, founder of Bunch Bikes, appeared on Shark Tank Season 12 to pitch his electric cargo bike company. After landing a deal with Barbara Corcoran, you might be looking for a Bunch Bikes update. Here’s what we know about the electric cargo bike company after Shark Tank.
Shark Tank Bunch Bikes Update
Entrepreneur: Aaron Powell
Business: Electric cargo bike
Ask: $250,000 for 10% equity
Result: $100,000 and $150,000 as a loan for 15% equity
Shark: Barbara Corcoran
Bunch Bikes appeared on Shark Tank Season 12 Episode 18 and shared its electric cargo bike company with the sharks. The bikes can fit up to four kids in the basket and is propelled via an electric motor so that anyone can ride. Aaron shared that he came up with the idea for his company after a family trip to Malmö, Sweden, where he first saw a cargo bike.
Since 2017, Bunch Bikes has done $2.7 million in sales and during the Shark Tank pitch, Aaron shared that the company is on track to do over $2 million in sales in the next 12 months. However, Aaron has run into some logistical issues along the way, as it costs around $450 to ship a fully assembled bike. Further, the bikes can range in price from $4,000-$6,000, which is quite expensive.
However, this didn’t dissuade Barbara Corcoran, who offered Aaron $250,000 for 40% equity in the company. After some negotiations, Aaron and Barbara agreed on a deal of $100,000 and $150,000 as a loan for 15% equity.
In terms of a Bunch Bikes update, the company is currently in the process of launching a new product called Bunch Connect. This is a two-wheeled electric cargo bike that connects to a bicycle.
Further, Aaron revealed that after airing on the Shark Tank, Robert Herjavec approached him and Barbara and offered to split the deal with her, even though he didn’t appear on the episode. It turns out that Robert was already a Bunch Bikes customer, and wanted to be a partial owner as well. If you’d like to read more of the story, you can do so on the Bunch Bikes blog.
In the last bit of news for our Bunch Bikes update, since airing on Shark Tank the company has done $1.8 million in sales and is working with Lucca and Livvy Beverages who has agreed to purchase $2 million worth of bikes over the next three years.
For more Episode 18 company updates, be sure to check the links below.