This is an excerpt of a piece originally written for MarketWatch.com. Read the entire story here.
How to win a huge investment on the TV show “Shark Tank”?
Try pitching Mark Cuban a “PhoneDrone,” a flying robot that operates via your smartphone. It worked for xCraft’s Charles Manning and JD Claridge, creators of the X PlusOne drone and the PhoneDrone.
The two pitched their drone startup on season seven of ABC’s DIS, -2.22% “Shark Tank,” seeking $500,000 for 20% equity in their company, which would have valued it at $2.5 million. They walked away with $1.5 million for 25% equity in a unanimous investment involving every single “Shark Tank” judge in the episode: Mark Cuban, Daymond John, Kevin O’Leary, Lori Greiner and Robert Herjavec — a rare feat on the show. The “Shark Tank” investment values the company at $6 million.
XCraft creates both the X PlusOne, a hybrid, professional-grade drone that both hovers and can fly at speeds greater than 60 miles an hour, and the PhoneDrone, a device that gives your smartphone wings, allowing it to stream video through Periscope or download it straight to the phone.
Though XCraft founder JD Claridge says he sees long-term growth in the commercial drone market, it was the consumer-targeted PhoneDrone that really won over the sharks. Claridge talked with MarketWatch about his business and what it’s like to land a deal on “Shark Tank.”
MarketWatch: Why do you think your company won on “Shark Tank”?
Claridge: Drones are hot. A lot of investors are interested in them now.
Our strategy was to show we’re more than just a product. We’re a powerful team in the founding members. I’m the nerd on the aerospace side, the inventor. I brought on Charles Manning as the business development guy — he’s the business smarts, but his background is in software. We wanted to make sure the sharks understood that.
MarketWatch: Were you gunning for a particular shark?
Claridge: My partner and I had targeted Cuban. He was our first pick if we had a choice, just because of his connections with a lot of other companies in the tech space. Ironically he was one of the last ones to join in.