Why Did Shark Tank Fail To Invest On Metric Mate? Season 14, Episode 11

Why Did Shark Tank Fail To Invest On Metric Mate? Season 14, Episode 11

Metric Mate, despite having an innovative smart fitness device, did not secure a deal on Shark Tank for several reasons

Metric Mate’s pitch faced challenges due to high equity demands, concerns about the financial model, and the product’s early stage of development.

Metric Mate made its appearance on Shark Tank Season 14, Episode 11, with founders Braxton Davis, M.T. Strickland, and Ecleamus Ricks seeking $100,000 for 5% equity.

The entrepreneurs introduced their innovative smart fitness product designed to track workout performance and provide real-time data through a mobile app.

Mark Cuban praised the product as a promising consumer idea but decided not to invest, citing it wasn’t the right fit for him. Lori Greiner felt the product required simplification and chose not to invest. Barbara Corcoran and Tony Xu both believed it was too early for their investment and opted out.

Kevin O’Leary, who had previously invested in “PRX Performance” on Shark Tank Season 7, proposed using PRx to manufacture Metric Mate. He offered $100,000 for 25% equity. The founders felt this offer was too high and countered with $100,000 plus a $150,000 line of credit for 12.5% equity. Kevin rejected this counteroffer, sticking to his original proposal of $100,000 for 25% equity.

The founders then revised their offer to $200,000 for 20% equity, including the benefit of PRx Performance. Kevin O’Leary maintained his initial offer of $100,000 for 25% equity.

In the end, Metric Mate did not secure a deal on Shark Tank. Kevin O’Leary’s offer of $100,000 for 25% equity was declined, as the founders felt that the equity stake was too substantial for all three partners.

While they did not secure a deal on the show, they have continued to progress and grow their business post-appearance.

Reasons Why Shark Tank Failed To Invest In Metric Mate

1. High Equity Demands:
   • Kevin O’Leary’s Offer: Kevin O’Leary proposed $100,000 for 25% equity, which the founders found too high. Their counteroffer of $100,000 plus a $150,000 line of credit for 12.5% equity was rejected, and their later proposal of $200,000 for 20% equity was also turned down. The Sharks, particularly O’Leary, wanted a larger stake in the company than the founders were willing to give up.
2. Financial Model Concerns:
   • Production Costs and Pricing: The landed cost of the device was about $100 per unit, with a planned retail price of $200. While this indicated a decent margin, the Sharks were concerned about the sustainability and profitability of the business model. The need for significant upfront investment to scale production and go direct to consumers was a red flag.
3. Product Stage and Market Readiness:
   • Early Stage of Development: Several Sharks, including Barbara Corcoran and Tony Xu, felt the product was too early in its development stage for their investment. The device was still in the pre-order phase, and there were concerns about market traction and the readiness of the product for widespread consumer adoption.
4. Market Competition and Differentiation:
   • Product Differentiation: Although the product was described as innovative, the Sharks may have had reservations about how it stood out in a competitive fitness technology market. With many existing fitness trackers and smart equipment, convincing the Sharks of its unique value and market potential was challenging.

Post-Shark Tank Developments:

• Product and Brand Growth: Despite not securing a deal, Metric Mate has continued to grow. The product received a boost in visibility from the Shark Tank appearance, leading to increased website traffic and interest.
• Partnerships and Valuation: The company has secured investment and partnerships, including with Techstars and Cox Enterprises. As of the latest update, Metric Mate is valued at $2 million and continues to be active in the market.