Rasmus and Bo had been triathletes and struggled to get a good-fitting pair of swimming goggles while on vacation. That is when they decided to create a brand that would provide people with customized goggles that would fit on their faces and prevent discomfort and leaking.
What Do They Make?
TheMagic5 has curated their special swimming goggles to aid those people who are uncomfortable with their ill-fitting goggles. TheMagic5 has a mission to provide its customers with specific swimming goggles according to the shape of their faces.
Their app-based fitting technology allows them to create goggles that fit perfectly on your face and ensure that there are no leaks or marks on the face after use.
What Makes Them Unique?
Traditional swimming goggles are one-size-fits-all, which doesn’t make any sense when goggles are supposed to prevent leaks and provide ease and comfort.
They have created the world’s first custom-fitted swimming goggles. It only takes about 10-13 seconds to scan your face, and the app-based scanning helps the company generate well-fitting and comfortable goggles customized to your face’s shape and then deliver them directly to your doorstep.
Are They Still an Active Company?
The company is doing a great job promoting its products and garnering followers on Instagram, Facebook, and Pinterest. They have an active and running website as well.
How Did the Shark Tank Pitch Go?
Bo Haaber and Rasmus Barfred appeared on Shark Tank, seeking $500K for 2.5% equity of their company.
They take pride in the fact that some of the best swimmers and athletes were already using their customized TheMagic5 goggles, but they wanted to reach out to all the swimmers out there to get themselves a pair of these comfortable and well-fitting goggles.
Rasmus asked the Shark to try out the two goggles placed before them, saying that they won’t fit at the moment since they hadn’t scanned their face.
He asked them to check the quality of the pad of the goggles, and their secret sauce was their gasket, which was different from any other goggles they must have tried.
Lori exclaimed that the goggles were very dark, and Rasmus told her that their goggles range from clear and super light to totally dark, which is intended for outdoor swimming. The goggles were designed in such a way that the swimmer could get a great peripheral view.
Kevin asked how big the goggles market was, and Rasmus responded that it was $2.2 billion in the USA and Europe.
Since they were asking for such a high valuation, the Sharks were hoping they had already sold many of their goggles. Bo agreed with him and said that they had 40,000 customers right now, and their lifetime revenue was $3 million. They started in 2018, and the company has been growing every year since then.
Kevin wanted to know why they wouldn’t sell their goggles at an even higher price, and Bo explained that they didn’t want to charge people as much as other high-end expensive goggles do. He didn’t want customers to back down because their pieces were very high. Their customer acquisition cost was $24.
Mark was skeptical about their high valuation on the show and asked them to reveal the amount of money they had raised. Bo responded that they had raised $1.5 million at a $9 million valuation.
Their sales revenue was $180,000 in 2018 when they first launched their product. Then it was $370,000 in 2019 and $1.2 million in the year after that. So far that year, they were at $1.5 million dollar revenue.
Rasmus and Bo chose to move to the USA from Denmark since the market and the number of swimmers in the USA is relatively higher. Some of their parts were imported from China, and all of the customization processes were done in Charlotte, North Carolina.
Mark asked them to explain whether they were using third-party robotics technology for their customization process. After Bo explained that they were making the robotic technology themselves, Mark commented that it was a robotics company making goggles.
Mark was eager to give them an offer after he saw Kevin whispering to Nirav. He found the TheMagic5 idea to be pretty incredible and offered them $500K for 7.5% equity. He said he didn’t want them to negotiate with others because he wouldn’t wait that long.
Kevin asked them to hear the offer he and Nirav had to offer, and Mark jumped in and said that he was already an investor in a robotics company, a machine company, and an AI company, and of course, he was involved in the sports industry. Kevin insisted that they were not here to give up that much equity, and Mark said that he would listen to a counteroffer in that case.
Kevin again asked them to listen to an offer that, according to Nirav, would provide them with both the sales and the technology. The two Sharks offered $500K and will charge them $3 a unit until they could recoup $1.5 million, and then the royalty goes away, and equity comes down to just 5%.
Robert was also interested in making an offer. He would give the $500K for 5% equity with no royalty.
Nirav was still convincing them to take their offer, and in the meanwhile, Lori also jumped in the tank and said that she would either join Mark or Robert, who would provide the tech end to the company so that she could contribute to the sales and advertisement of the goggles.
Robert agreed to partner with Lori, and Kevin brought down his equity offer from 5% to 4% and then 3%. Mark again asked them to consider countering his offer, and Robert offered them $1 million for 6.5% equity.
After a brief discussion among themselves, they gladly accepted Robert’s offer.
Our Review of TheMagic5
The robotic technology that the company has engaged in the creation of these goggles is a breakout in the field of swimming goggles, and people would love to get rid of those one size fits all goggles once and for all.
Pros of TheMagic5
- Well-fitting goggles customized according to your face’s shape
- The goggles are comfortable and don’t cause leaking.
Cons of TheMagic5
- It takes some time for the app to scan your face, send data to the developers, and custom-make your goggles to deliver to your doorstep.
Who Is TheMagic5 For?
Custom-fit goggles that are desirable for swimmers from beginners to professional levels.
Are There Any Alternatives?
Until now, no other brands in the market provide this technology that TheMagic5 has to offer.
Our Final Thoughts:
The deal with Robert would provide a great tech end to the company, and the fact that he was so eager to work with them, will ensure that Robert brings the most value to the company’s fate.