Some swimming goggles leak and are uncomfortable to wear because they are designed to fit one size fits all, even though everyone’s face is different. Magic 5 offers a solution to this problem with its custom 3D printed goggles. Founders Bo Haaber and Rasmus Barfred marketed the product on Shark Tank and struck a deal with Robert Herjavec. Magic 5 is valued at $15 million as of 2024.
About the Founder
Bo Haaber is originally from Denmark and currently lives in North Carolina, USA. He graduated in Engineering from the Technical University of Denmark and has worked for IBM, EG Citizen Solutions and NrgX.
His nephew earned an MBA from Copenhagen Business School, after which he worked for several companies in Denmark, including Haldor Topsoe, Bilia, Berlingske Media and BTMX.
He moved to New York City with his wife. Only Bo and Rasmus are present at Tank, but they also have a third partner, Niklas Hedegaard, who is the head of paid marketing.
Founding of Magic 5
Bo and Rasmus both love to participate in triathlons. During one of Bo’s races, he forgot to bring his goggles and bought several pairs, but none of them fit his face. This gave him the idea to create a solution for everyone.
He recruited his nephew and Nicholas Granet to help run the company. They developed an app that uses artificial intelligence to scan customers’ faces. Based on that data, they 3D print a unique pair of Google Glasses for you to choose from!
Magic 5 was founded in 2018 after a Kickstarter campaign that raised over $100,000. Within three years, they had $3 million in sales and raised $1.5 million in funding at a $9 million valuation.
Shark Tank Appearance
Bo and Rasmus moved to the United States, targeting a larger market. By 2021, their sacrifices had paid off, but they wanted to expand further. They appeared on Season 13 of Shark Tank, seeking a 2.5% payout of $500,000
The Sharks loved the product and were excited about the AI facial scanning technology. They quickly realized they were more than just a company selling swimming goggles. Bo did a great job explaining how the technology worked and answered questions with confidence.
Soon, a bidding war broke out among all the Sharks players who wanted to invest. Cuban made the first offer, but he wanted too much equity. Kevin and Nirav teamed up, but they wanted a franchise deal.
Lori wanted in, but Robert and Mark didn’t need her. There were so many offers that it was confusing. Finally, Robert Herjavec got tired of being turned down and agreed to invest $1 million for a 6.5% stake. Robert beat Cuban to the deal, which is rare.
After Shark Tank
According to Swimming World, after the cameras stopped rolling, Cuban approached Robert and asked him to split the deal. The two agreed to invest $500,000 each, for 3.25% each. This was the first time Robert had been offered a deal in front of Cuban and then agreed to share later.
After the show aired, Magic 5 saw a surge in new orders and media coverage. You can order a pair of custom goggles on Amazon and TheMagic5.com. The company has increased prices, with some goggles now costing over $100!
Its website shows that its products have an average rating of 4.89 stars from more than 2,500 reviews. Online reviews are mostly positive, with 220triathlon.com rating it 4.7 out of 5, but some users have expressed concerns about fogging.
The founders hope to launch new customized products such as gas masks and diving masks. Magic 5 has annual revenue of about $5 million and a valuation of $15 million. According to LinkedIn data, the company has about 15-20 employees, some of whom are part-time or interns.
Categories: Shark Tank
Source: dut.edu.vn
