Boost Oxygen sells oxygen cylinders that contain 95% pure oxygen. Many people think it is a scam because, after all, oxygen is everywhere. In reality, clean air is hard to come by at recreational events. Kevin O’Leary realizes this and strikes a deal with founders Mike Grice and Rob Neuner. As of 2024, Boost Oxygen has a market cap of $15 million.
About the Founder
Mike Grice and Rob Neuner are from Milford, Connecticut. Grice studied business administration at the University of Colorado Denver. He also served in the U.S. Marine Corps.
Mike attended the American Public University system and earned a Master’s degree in Military Science. He later attended the University of Southern California Marshall School of Business to pursue an MBA. Rob Neuner is a businessman at heart, but much of his early career was in Europe, importing beer throughout the continent.
Founding of Boost Oxygen
Neuner frequently traveled to the Czech Republic for work and used supplemental oxygen when he had jet lag. When he discovered there were no suppliers of bottled oxygen in the United States, he saw a new opportunity.
So he left his beer importing business and headed to the United States, where he teamed up with Mike Grice to launch Boost Oxygen in 2007. Like all supplemental oxygen products, it was not FDA-approved.
However, it does have benefits and no side effects. It has an oxygen content of 95%, which is a big difference from the 25% in the open air. Before seeking help from angel investors, the company had sales of $6.4 million and profits of $1.5 million.
Shark Tank Appearance
When Mike and Rob appeared on Shark Tank in 2019, their company was already successful but they still wanted to scale, so they pitched their business on Season 11, seeking $1 million in funding in exchange for 5% equity.
The product is unique, but it’s the volume that’s drawing the attention of the sharks. However, some of them worry that the learning curve for educating potential customers about the benefits of bottled oxygen is too high.
Kevin O’Leary, Mr. Fantastic, was the only one willing to take the risk. He offered to loan $1 million at 9% interest in exchange for 7.5% equity. O’Leary countered with a $1 million loan, 7.5% interest, and 6.25% equity. They accepted the deal, and the rest is history!
After Shark Tank
Since appearing on Shark Tank, the company’s sales have skyrocketed to new highs. The product is currently available at national retailers such as Albertsons, CVS and Walmart. In addition, the product is available through thousands of independent retailers across the country.
Boost Oxygen is reportedly selling like hot cakes in high-altitude areas like Colorado. They started offering different flavors of oxygen, which became a big hit in malls. The brand has also become a favorite of many fitness enthusiasts and triathletes. Even football teams are their customers, stocking up on the sidelines to help players recover after long runs.
Since Shark Tank, Boost Oxygen has generated over $15 million in sales and is currently considered the leading non-medical oxygen supplier in the U.S. According to SharkTankRecap.com, Boost Oxygen is projecting sales of $50 million in 2023 and is currently valued at $15 million.
It will be interesting to see if this product can maintain strong sales or if the hype fades. One thing is for sure, the other Sharks are missing out on a huge winner!
Categories: Shark Tank
Source: dut.edu.vn
