When you think of transportation, you generally think of buses, cars, and trains. Skates, as a mode of transportation, doesn’t seem like a viable option, now, does it? Well, Acton Skates’ founder Peter Treadway seems to think otherwise.
Peter brought his company, Acton Skates, which sells personal electric skates as a mode of easy and independent transportation for the people. He asked for $1 million for 3.5% of the company.
Given the uniqueness of the brand and the quirky element of the product, people are quite curious to know how the business is doing. We shall look further into it.
Shark Tank Acton Update
- Entrepreneur – Peter Treadway
- Business – Electric skates for transportation
- Ask – $1 million for 3.5%
- Result – No deal
- Sharks – None
Given that Acton is an electrical skates company, it made sense for the founder to introduce the company with a demonstration. That’s exactly what Peter did and brought Robert Herjavec on the stage to try out the skates for himself.
During the demonstration, Peter explained that the skates come with a range of 10 miles and they rely on the motion of the user’s feet to guide the direction. During the demonstration, Robert tried out the skates and concluded that operating them wasn’t as easy as it looked.
Breaking down the product variant and availability, Peter clarified that they currently offer three different types of options. They have skates that support smaller ranges and cost around $499 while the ones with longer ranges are priced at $699.
When talking about the finances, Peter clarified that the products cost 40% of the retail price to manufacture, leaving them with a profit margin of 60%.
Furthermore, Peter also confirmed that the company had crossed $2 million in revenue already and they have also raised investments in two rounds. The first one raised $2 million and the second round raised $2.5 million.
After listening to everything, Robert decided to back out because he didn’t believe in the fact that Peter needed further investment. This was followed by Ashton Kutcher, who found the idea unique but thought the price point of the skates was too steep.
Following that, Lori Greiner and Mark Cuban decided to back down because they were not quite sure about the numbers that Peter was giving them. Lori even thought that Peter wasn’t too explorative with the pitch and wasn’t interested in a deal.
Kevin was the only shark that offered Peter a deal. He offered the asking amount of $1 million for 15% equity. To that, Peter asked if he would settle for 6%. Kevin didn’t budge and Peter had to leave the show with no deal.
Despite not being able to secure a deal, Acton didn’t stop there. The company is now renamed Acton Global and has shifted its product categories. Instead of electric skates, the company now sells electric bikes and scooters.
Besides that, they also sell electric skateboards, which is a popular purchase among the students. The business is thriving and they make roughly around $6 million in revenue.