Virtusphere
Virtusphere is a tech company from Binghamton, NY, that makes a "virtual reality locomotion simulator" to work with virtual reality systems. The Virtusphere device is a giant ball that the user can walk on top of that rotates as the user walks.[1]
Because the Virtusphere is a ball that rolls, the user has unlimited movement in any direction. One of the sharks tries it out and reports that it takes time to get used to.
Each Virtusphere device costs $14,000 to manufacture and is sold "retail" for $35,000. Obviously, this is too expensive for homes so Virtusphere is pitching it to the military and to virtual reality arcades. The military has apparently bought one of these for $50,000 which should really be looked into because that sounds like a misappropriation of government funds.
As a business, selling to the military is the easiest path to profitability for Virtusphere (probably because they can charge $15,000 over the standard cost). Virtusphere is not currently profitable but will be when thirty devices have been sold. Virtusphere is asking for $1,500,000 from the sharks in order to have the funds to build demonstration units.
$1,500,000 is quite a chunk of change for an entrepreneur to ask for, especially in Season One where the average ask was not quite $250,000 and was the second smallest average ask season other than Season Two. Additionally, when combined with the equity on offer, the valuation of the company was sky high. As such, the sharks declined to invest.
Notes
- ↑ If this sounds familiar, it's because Shark Tank also featured a virtual reality company named Virtuix in season five. The major difference between the two is that Virtuix uses slippery shoes on polished plastic and straps that hold the user in place so there are no moving parts.