Lite-Netics Magnetic Christmas Lights Update | Shark Tank Season 5
Shawn Genenbacher has come up with a way to help reduce the stress of installing outdoor Christmas lights. His magnetic lights easily attach to metal siding and gutters. Will he earn a deal on
Shark Tank Lite-Netics Update
- Entrepreneurs: Shawn Genenbacher
- Business: Magnetic outdoor Christmas lights
- Ask: $125,000 in exchange for 20% equity
- Result: No deal
- Sharks: None
Shawn brought his magnetic Christmas lights to the tank. His company Lite-Netics, makes magnetic, Christmas lights for outdoor use, which makes for easy installation. He told the sharks that until recently, he had been focused on constructing a clientele of professional builders and commercial lighting installers.
With demand for his patented lights, he’s ready to move into retail. His company had been in business for 4 years prior to filming, and had made about $400,000 in sales. In the year prior to the show, the company did $118,000 in sales, netting $38,000.
Lori Greiner and Daymond John felt that part of the problem with Shawn’s pricey lights was that magnets were so stubbornly expensive. Shawn agreed, explaining that a standard 50-foot strand of lights at Home Depot cost $20-$25, while the same length of his lights would cost the consumer $70. In fact, Home Depot was trying to help Shawn find less expensive manufacturers so they could sell his product to their customers at a reasonable price.
Kevin O’Leary said he knew the two big players in holiday lighting, and offered to negotiate a deal with them on Shawn’s behalf, with an offer of $125,000 for 50% equity. His offer was contingent on securing a licensing deal.
Shawn asked if there were any other offers. Robert Herjavec argued that the price was too high for the average homeowner. Mark Cuban wasn’t interested in this market, and Lori Greiner had several issues with the product. Robert, Mark and Lori were out.
That left only Daymond to chime in, and he offered Shawn the exact same deal as Kevin, but reduced his share of the equity to 40%. Shawn countered Daymond’s offer, asking him to come down to 30% equity. When Daymond said no, Shawn declined both offers from the sharks, and he left the tank without a deal. What happened next for his company? Keep reading our Lite-Netics update to find out!
Research for our Lite-Netics update finds that the company is still stringing along. In August 2022, the company filed a patent suit against Nu Tsai Capital, LLC for copyright infringement. Products are available for purchase on the Lite-Netics website.
Would you like to learn about the other companies featured on Season 5 Episode 12? Follow the links below for our other company updates from the episode.
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