An inside look at life post-Shark Tank.
What happens after a company closes a deal with Mark Cuban? SNVC alum LuminAID shares their story.
While it may be implicit that getting the opportunity to pitch a business on the Emmy award-winning television show, Shark Tank, is an essentially good omen for a budding company, the question still remains in the minds of many eager entrepreneurs… what is it really like?
Besides the cash infusion and equity agreement decided upon during the duration of the aired television segment, what are the other benefits or results that come from closing a deal with a “Shark”? What happens when the cameras turn off and real life with a business-mogul like Mark Cuban begins?
The Polsky Center recently got the opportunity to ask some of these questions and more from the uniquely popular Shark Tank alumni company, LuminAID. Also an alumni of the John Edwardson, ’72, Social New Venture Challenge, LuminAID appeared for the first time on Shark Tank in 2015 and received investment offers from all five “Sharks” before accepting a deal with Mark Cuban.
LuminAID cofounder Andrea Sreshta provides some insight on post-Shark Tank life in her conversation with the Polsky Center below:
Polsky Center: What was it like to appear on Shark Tank for the second time? Assuming it was obviously a bit less high-stakes than the first time, what was the highlight of the experience for you?
Sreshta: Typically “Shark Tank update” segments focus on alumni-businesses providing the run-down on their new business developments and growth since having aired on Shark Tank. The segments usually include things like the opening of new facilities or the showcasing of a deal with a large retailer that came about as a result of being on the show. Our segment was a little different. Instead of taping inside of a store and talking about sales of our product, we were in Malawi, highlighting the important relief-aid work of one of our NGO partners and customers, ShelterBox. Though we were still able to discuss LuminAID’s growth as well, it was great to be able to share our first-hand experience of seeing people use our lights on-the-ground after a disaster and the hard work of our NGO customers in delivering key aid items in the wake of an emergency.
Polsky Center: What has been the biggest benefit of working with Mark Cuban? How has he most affected your business strategy and goals?
Sreshta: Mark has encouraged us to find new customers through new channels and in some cases, new product ideas. This past year we have really started thinking beyond being a one product company and considering what the future holds for us in terms of new products. Mark and his team have given us a good foundation and framework from which to think about the bigger picture.
Mark also has a team of people working with him to help his Shark Tank businesses. They operate similar to the operating arm of a PE/VC firm. Mark’s investments receive the benefit of services including additional business development, accounting, and other support services. His team has done a great deal to help us advance key business objectives and make connections.
Polsky Center: How has working with Cuban been different than the personality Shark Tank fans see on television?
Sreshta: We have to email Mark and his team an update with the “good, the bad, and the ugly” every week. He seems to read everything, which is not what you would expect from a busy billionaire. I have no idea how he does it.
For those that watch Shark Tank, I find most of Mark’s comments to be rational and constructive, even if he’s already forgone the investment. I find him to be the same way over email and otherwise. He’s usually very practical and constructive in his comments, which is consistent with what we see of him on the show.
Polsky Center: How has your experience with Shark Tank opened doors to you in any other ways?
Sreshta: Parallel networking has played a big role in helping us get to next steps, both before and after Shark Tank. Given that we sell into emergency prep and outdoor recreation, we’ve made it a point to network with companies that sell complementary goods like water purifiers and other rechargeable battery-operated items. The Shark Tank network as well as the network of other Mark Cuban companies has only amplified these connections for us — whether for networking purposes or even just getting simple questions answered more quickly.
Polsky Center: What’s next for LuminAID?
Sreshta: We are hard at work on both growing our customer base across all channels (online, retail, NGO, B2B-custom print) and on new higher-powered solar-charging lights for 2017. We’ve also grown our team this past year, both with new full-time hires and growing our internship program.
Many of our interns come from the University of Chicago, and the University’s network has been a great place for us to source talent.
