In the wake of their captivating pitch on Shark Tank, Bo Haaber and Rasmus Barfred, the minds behind The Magic 5 custom-made swim goggles, navigated the turbulent waters of entrepreneurship with newfound vigor. Seeking a $ 500,000 investment for a 2.5% stake, their innovative approach captured the attention of the Sharks, leading to strategic alliances and financial backing.
This article delves into the post-Shark Tank journey of The Magic 5, exploring the twists and turns, partnerships forged, and milestones achieved as they transform from a promising pitch into a force to be reckoned with in the competitive swim gear industry.
What Is The Magic 5:
At the heart of The Magic 5 lies its groundbreaking technology, setting it apart from conventional swim goggles. Users simply download the accompanying app, akin to taking a selfie, which initiates a facial scan. This scan serves as the blueprint for crafting individually fitted goggles, a concept they proudly proclaim as “One size shall fit only one”. This innovation not only promises unparalleled comfort but also addresses the nagging issues of leakage and discomfort [1].
Design
The glass of The Magic 5 goggles is equipped with a top-of-the-line anti-fog coating, offering crystal-clear vision even in the most challenging conditions. For outdoor enthusiasts, the mirrored option adds a layer of protection and style. The curved design of the glass enhances hydrodynamics, minimizing drag and maximizing performance.
The Magic 5 goggles are meticulously crafted using UV-protected, anti-fog, and smooth materials, ensuring a comfortable fit tailored to the facial dimensions of each wearer. These goggles boast a leakproof design, eliminating the risk of water entering the goggles during use. With excellent peripheral vision, Magic 5 goggles address common challenges swimmers encounter in the pool.
The Price Point
Recognized by FINA, the International Swimming Federation, these goggles exhibit significant potential for future adoption in prestigious events such as the Olympics. The endorsement by FINA underscores the high-quality design and performance of Magic 5 goggles, positioning them as a competitive choice for elite swimmers on the international stage.
Pros:
- Customization: The Magic 5’s facial scanning technology ensures a personalized fit, addressing common issues like leakage and discomfort;
- Quick Turnaround: The five-day turnaround from facial scan to shipping highlights the company’s commitment to efficiency and customer satisfaction;
- Innovative Design: The goggles’ design, from the curved glass for hydrodynamics to the stabilizing temples and nose bridge, showcases a thoughtful approach to enhancing the swimming experience;
- Anti-Fog Coating: The high-quality anti-fog coating on the glass ensures clear vision, even in challenging conditions;
- Money-Back Guarantee: The company’s confidence in its product is reflected in the money-back guarantee offered to customers;
Cons:
- Limited Information on Nicholas Granet: The absence of Nicholas Granet, a pro swimmer for the Danish National Team, during the Shark Tank presentation raises questions about his role and involvement in the business;
- App Dependency: The reliance on an app for the facial scan might be a hurdle for potential customers who are not tech-savvy or those with privacy concerns;
- Competitive Market: The swim gear industry is competitive, and The Magic 5 will need to differentiate itself to secure a lasting market presence [4];
Who May Benefit From Using:
- Recreational Swimmers: Casual swimmers who enjoy water activities for leisure can benefit from the customized fit, reducing discomfort and ensuring a more enjoyable experience;
- Professional Swimmers: Competitive swimmers, including those participating in triathlons, can appreciate the enhanced performance and stability provided by The Magic 5 goggles;
- Those with Sensitivity: Individuals who are particularly sensitive to ill-fitting goggles or experience discomfort with standard sizes can find relief with The Magic 5’s personalized design;
- Frequent Goggle Users: Swimmers who spend extended periods in the water, whether for training or recreation, will appreciate the comfort and stability that these goggles offer;
- Technology Enthusiasts: Individuals who are comfortable using smartphone apps and appreciate the integration of technology into their activities will find The Magic 5’s scanning and customization process appealing;
- Those Seeking Innovation: Consumers who actively seek innovative solutions to common problems, such as uncomfortable swim goggles, may be drawn to the unique technology behind The Magic 5;
- Open Water Swimmers: Those who engage in open water swimming, where environmental conditions can be challenging, can benefit from the anti-fog coating and mirrored option for added protection and visibility [5];
- Triathletes: Participants in triathlons, where seamless transitions between swimming, biking, and running are crucial, can appreciate the stability and comfort provided by these customized goggles;
- Health-Conscious Individuals: People who view swimming as part of their fitness or wellness routine may be attracted to the idea of personalized swim gear that enhances their overall experience;
- Those Seeking Hydrodynamic Advantages: Fitness swimmers looking to optimize their swimming performance through hydrodynamic design can benefit from the curved glass feature;
- Bundle Purchasers: Individuals looking to save on multiple pairs of goggles, such as families or groups of friends, can take advantage of the bundle options offered by The Magic 5;
- Money-Back Guarantee Seekers: Customers who value the assurance of a money-back guarantee may be more inclined to try The Magic 5, knowing they have the option of a refund if the product does not meet their expectations;
- International Swimmers: The Magic 5’s accessibility to a global market, demonstrated by its successful Kickstarter campaign and international shipping, makes it an option for swimmers around the world seeking a personalized fit;
About Founders Of The Magic 5
The company kickstarted its journey with a successful crowdfunding campaign on Kickstarter, amassing an impressive $ 100,589 in November 2017. Backers enthusiastically scanned their faces, and by February 2018, The Magic 5 was shipping from its state-of-the-art production facility in Charlotte, North Carolina. The swift turnaround time of five days from scan to shipping showcases their commitment to efficiency and customer satisfaction.
The Pitch Of The Magic 5 At Shark Tank
In Shark Tank episode 1303, Bo Haaber and his nephew, Rasmus Barfred, plunge into the tank seeking a partner to propel their custom-made swim goggles venture, The Magic 5, to new heights. Their objective is clear: secure funding for expanding their manufacturing capacity.
The ask is bold: $ 500,000 for a 2.5% equity stake, valuing their company at $ 20 million [7]. The duo presents the genesis of their idea, born out of frustration with standard goggles and a vision to ensure that every swimmer has access to goggles that fit perfectly.
The Sharks, inspecting non-customized samples, are taken aback by the revelation that the swim goggle market is a whopping $ 2.2 billion. A surprise to some Sharks, this figure captures attention. Bo and Rasmus highlight their substantial growth, boasting 40,000 subscribers and $ 3 million in revenue since 2018, with a remarkable threefold yearly growth rate.
The rationality of the idea strikes a chord with Robert, who appreciates the personal connection to the problem. Bo’s confession that the concept dawned on him during a vacation without his goggles resonates with the Sharks. When questioned about their pricing strategy, Bo reveals a deliberate choice to position themselves in the middle of the premium goggles price range.
Financials are presented with transparency. The Magic 5 goggles cost $ 14 to produce, retailing at $ 55, with a customer acquisition cost of $ 24. The company has successfully raised $ 1.5 million, valuing the business at $ 9 million. The sales trajectory is outlined: $ 180,000 in 2018, $ 370,000 in 2019, $ 1.2 million in 2020, and $ 1.5 million in the summer of 2021.
The decision to migrate to the U.S., capitalize on the larger swimming market, and source components from China while customizing in Charlotte adds strategic depth to their business model. A patent on their fitting algorithm and collaboration with an advanced robotics company operating on their software showcase their commitment to innovation.
The Sharks respond with offers and negotiations. Mark Cuban, clarifying their identity as a robotics company, extends a $ 500,000 offer for 7.5% equity. Kevin O’Leary and Nirav Tolia propose $ 500,000 for 5% equity and a $ 3 royalty per unit sold, capping at $ 1.5 million. Robert Herjavec, drawing from 18 years of observing his daughter swim, matches the offer for 5% equity.
Lori Greiner enters the scene, suggesting collaboration with Mark or Robert, emphasizing her sales expertise complementing their technical prowess. A strategic move unfolds as Robert teams up with Lori, adjusting Kevin and Nirav’s equity to 4%. Further negotiations resulted in an agreement with Lori and Robert for 6% equity, with Robert retaining 5% in Lori’s absence. Kevin and Nirav’s stake decreases to 3%.
In a final twist, Robert reaffirms his commitment to the deal, offering $ 1 million for 6.5% equity [8]. The agreement is sealed, marking a successful venture into the tank for The Magic 5, now equipped with not just an investment but a strategic partnership poised for future growth.
The Magic 5 After The Shark Tank
In the aftermath of their compelling appearance on Shark Tank, The Magic 5 has embarked on a journey of expansion and innovation, propelled by strategic partnerships and visionary investments. The immediate aftermath of the show witnessed ambitious plans to extend their product line into gas masks, diving masks, face masks, and glasses, showcasing their commitment to leveraging their cutting-edge technology across diverse markets.
The entrepreneurial synergy was apparent as Mark Cuban and Robert Herjavec, two titans of the Shark Tank, joined forces. Post-show revelations unveiled that Mark approached Robert about a joint investment in The Magic 5. The deal saw each Shark investing $ 500,000 for a 3.25% stake in the business, underlining the potential they perceived in the company’s trajectory [9].
The strategic move paid off handsomely, with a staggering 1000% increase in web traffic reported after the update segment aired. The Kickstarter campaign, initiated one day before the scheduled update segment, garnered $ 45,000 in revenue within the first 24 hours, attesting to the enthusiastic response from their customer base.
The Magic 5 is not just a swim goggle company anymore; it has expanded its horizons with the introduction of the Oculus goggles. This innovative product not only represents a diversification of their offerings but also exemplifies their commitment to pushing the boundaries of custom-fit technology. Furthermore, their strategic partnership with Canyon Bicycles signifies a foray into customized bikes, showcasing their intent to revolutionize various industries with their personalized approach.
Mark Cuban and Robert Herjavec attested to the founders’ unwavering dedication. In the update segment, they emphasized how Bo Haaber and his team are not just entrepreneurs; they live and breathe their product and company.
This level of commitment, combined with the expertise and guidance provided by the Sharks, positions The Magic 5 for continued success in the competitive landscape of custom-fit gear. As they continue to innovate and expand, The Magic 5 stands as a testament to the transformative power of Shark Tank partnerships and the entrepreneurial spirit.
The Net Worth Of The Magic 5
The Magic 5 continues to ride the waves of success as of November 2023, with projections soaring to over $ 5 million in sales for the year. This impressive growth is a testament to the enduring appeal of their custom-fit swim goggles and the strategic moves made since their Shark Tank debut.
The production cost of The Magic 5 goggles is $ 14 per unit, with a retail selling price of $ 55. The customer acquisition cost stands at $ 24. Notably, the company has garnered $ 1.5 million in funding, achieving a valuation of $ 9 million [11]. The sales trajectory is as follows: $ 180,000 in 2018, $ 370,000 in 2019, $ 1.2 million in 2020, and an impressive $ 1.5 million for the current year (as of the summer of 2021).
The decision to relocate to the United States was strategic, driven by the larger swimming market. While some components are sourced from China, the crucial customization process takes place at the Charlotte facility. The company holds a patent for its unique fitting algorithm, a testament to the proprietary nature of its technology.
The assembly process is streamlined through collaboration with an advanced robotics company, leveraging cutting-edge robotics technology running on their proprietary software.
This combination of strategic market positioning, global supply chain integration, proprietary technology, and strategic partnerships underscores The Magic 5’s commitment to innovation and growth in the competitive swim gear industry.
Alternatives To The Magic 5:
1) Speedo Vanquisher 2.0:
- Features: Widely popular among swimmers, the Speedo Vanquisher 2.0 offers a comfortable fit, anti-fog coating, and a wide field of vision;
- Pros: Affordable, durable, and suitable for various face shapes;
- Cons: May not provide the same level of customization as The Magic 5;
2) TYR Socket Rocket 2.0:
- Features: Known for its low-profile design, the TYR Socket Rocket 2.0 provides a sleek fit with excellent peripheral vision;
- Pros: Durable, comfortable, and suitable for competitive swimmers;
- Cons: Limited customization compared to individually fitted goggles;
3) Aqua Sphere Seal 2.0:
- Features: Designed for open water swimming, the Aqua Sphere Seal 2.0 provides a watertight seal and 180-degree visibility;
- Pros: Comfortable, durable, and ideal for outdoor enthusiasts;
- Cons: May not offer the same level of customization as The Magic 5;
4) Arena Cobra Ultra Swipe Mirror Goggles:
- Features: Arena’s Cobra Ultra goggles feature a sleek design, anti-fog technology, and mirrored lenses for outdoor swimming;
- Pros: Stylish, durable, and suitable for competitive swimmers;
- Cons: Limited customization options compared to individually fitted goggles [12];
5) Barracuda Fenix Mirror Racing Goggles:
- Features: Barracuda’s Fenix Mirror Racing Goggles offer a hydrodynamic design, UV protection, and anti-fog coating;
- Pros: Lightweight, durable, and suitable for competitive swimming;
- Cons: Customization options may not be as extensive as The Magic 5;
FAQ:
- How much did they ask for on Shark Tank?
Bo Haaber and Rasmus Barfred sought $ 500,000 for a 2.5% equity stake in The Magic 5 during their Shark Tank appearance.
- Is The Magic 5 still in operation?
Yes, as of the latest information available, The Magic 5 is still in operation and has expanded its offerings since its debut on Shark Tank.
- Where is The Magic 5 located?
The Magic 5 is located in the United States, having migrated to capitalize on the larger swimming market.
- What is The Magic 5’s revenue model?
The Magic 5’s revenue model is based on the sale of its custom-made swim goggles, with prices ranging from $ 55 to $ 65, depending on the style.
- Is The Magic 5 harmful to the eyes?
No, The Magic 5 goggles are designed with UV-protected, anti-fog, and smooth materials, prioritizing user comfort and safety.
- Where can you get The Magic 5?
The Magic 5 goggles are available for purchase on their official website, and customers can also explore bundle options for added savings.
- What material is The Magic 5 composed of?
The Magic 5 goggles are made from UV-protected, anti-fog, and smooth materials to ensure a comfortable and durable product.
- What is the return policy at The Magic 5?
Details of The Magic 5’s return policy can be found on their official website. Generally, they offer a money-back guarantee with their products.
- Can you obtain The Magic 5 in a different color?
Yes, The Magic 5 goggles come in multiple color options, allowing customers to choose the style that suits their preferences.
- How can you make a payment for The Magic 5?
Payments for The Magic 5 can be made through their official website, and they likely accept various payment methods, such as credit cards.
- How long do Magic 5 goggles last?
The durability of Magic 5 goggles can vary based on usage, but with proper care, they are designed to be long-lasting.
- How do you clean Magic 5 goggles?
Cleaning instructions for Magic 5 goggles are typically provided with the product, and users are advised to follow the recommended care guidelines.
- How do you scan with Magic 5?
The scanning process with Magic 5 involves using their dedicated app, where users can scan their face to generate a customized fit for the goggles.
- Do Magic 5 goggles fog up?
No, Magic 5 goggles are equipped with a high-quality anti-fog coating on the glass, ensuring clear vision even in challenging conditions.
- What really happens when you win on Shark Tank?
When entrepreneurs secure a deal on Shark Tank, it typically involves an investment from one or more Sharks in exchange for equity in the business. The deal is then formalized after the show, and the Sharks become strategic partners in the venture.
Useful Video: All Five Sharks Fight For Deal With TheMagic5
References:
- https://www.sportskeeda.com/pop-culture/themagic5-update-what-happened-mark-cuban-robert-herjavec-invested-business-shark-tank
- https://sharktankrecap.com/shark-tank-the-magic-5-custom-goggles-update-season-13/
- https://www.sharktankblog.com/business/the-magic-5/
- https://www.sharktanksuccess.com/the-magic-5-shark-tank-review/
- https://thecinemaholic.com/the-magic-5-shark-tank-update-where-is-the-magic-5-now-2/
- https://techiegamers.com/the-magic-5-net-worth/
- https://startupreneurship.com/what-happened-to-themagic5-after-shark-tank/
- https://www.swimmingworldmagazine.com/news/themagic5-founders-land-multi-million-deal-on-shark-tank-with-innovative-goggles-technology/
- https://meaww.com/the-magic-5-shark-tank-goggle-company-roped-in-another-shark-589218
- https://themagic5.com/pages/how-it-works
- https://insidergrowth.com/the-magic-5-net-worth/
- https://www.logicalposition.com/case-studies/themagic5