If you’ve ever had your phone die on the go, you know the importance of having a backup charger. CO.ALITION, a company founded by Jeff Popp and Casey Lorenzen, sought to provide charging and more in a device you already use. Their packs feature WiFi hard drives for larger files, as well as charging without a removable charger. What will the sharks think of these backpacks on
Shark Tank CO.ALITION Update
- Entrepreneurs: Jeff Popp and Casey Lorenzen
- Business: Smart backpacks with WiFi hard drives and charging capabilities
- Ask: $200,000 for 20% equity
- Result: No deal
- Shark: None
Jeff and Casey, creators of the CO.ALITION brand, brought their smart backpacks to the tank, demonstrating how they could be used. The packs were plugged right into the wall, so there was no need to remove a charger to recharge the battery. The wireless hard drive helped hold your bigger files, like a ‘personal cloud’ you carried with you. They wanted $200,000 for 20% equity.
Their first backpack company, MHM, apparently had $1.4 million in sales at the time. They decided to start a secondary company for their smart backpacks instead of adding a new product line to their successful company, which confused the sharks.
These smart bags aren’t patented in any way, and Kevin O’Leary is critical of the lack of proprietary materials. In the 7 months prior to filming, they sold 500 bags, with 50% to 70% profit margins, amounting to about $100,000.
Unfortunately, the sharks weren’t impressed. Daymond John said that any of them could make these bags and outfit them with the same pieces. Mark Cuban thought they should include these bags as part of their other successful company. Kevin O’Leary agreed and asked if they would take an offer to combine the companies. They offered $300,000 for 30% of the total resulting company.
However, this couldn’t save them. Lori Greiner didn’t like the price point, and Kevin is stuck on the lack of proprietary features. Both go out, but Daymond considers giving them an offer for a moment. He ultimately decided to go out, leaving Jeff and Casey without a deal. Find out where the company is now in our CO.ALITION update.
Unfortunately, it’s ultimately bad news for these entrepreneurs. Our research revealed that the bags did great for a while. They were featured in REI outdoor stores and were selling well despite the increased price. However, both MHM and CO.ALITION shut down in 2017 for unspecified reasons.
This will be our final CO.ALITION update.
Curious about how the other products from Season 7 Episode 15 are doing? Check out our other company updates for the products from this episode here.
Make sure to stop by our Season 7 Products Page before you go to find out more on products and companies.