RokBlok
RokBlock is a product created by a company called Pink Donut from San Francisco, CA, that brings the ability to play vinyl records where ever you might go.
The product is a small box that can be set atop of a record lying on a flat surface. The underside of this block had a needle and wheels. When activated, the box will drive along the grooves of the record like a slot car and amplify the sound like a Bluetooth speaker. Though it actually does contain its own speaker, it can also wireless transmit the music to another speaker via Bluetooth.
The RokBlok is capable of playing SP and LP records but not 78s.
The case of the RokBlok itself is made out of wood.
The entrepreneur sees the RokBlok as an entry for those interested in vinyl into the scene as it bring with it the convenience of a normal portable speaker.
The RokBlok retails for $99 per unit and costs $23 to manufacture. Pink Donut launched a kickstarter and, when it successfully concluded, had raised $350,000. The entrepreneur subsequently pre-sold an additional $60,000.
In terms of prior investment, the company has no outside investment and was started with $2,000 of the entrepreneur's own money. The entrepreneur, an audio engineer who taught himself electrical engineering from videos on YouTube, slept in the manufacturers office for two months to reduce costs while developing the product. Prior to starting the company, he had worked for nine years at Apple and then at Pandora.
This deal aired on Episode 9.13.
Making A Deal
Though it was unclear as to whether it was the company Pink Donut or the product RokBlok that was up for investment, Robert jumped in with both feet and bought the whole kit and caboodle for $500,000. Technically, this represented a bite of $1,500,000 from the value the entrepreneur had placed on the business when going into the tank. However, the deal also included a 2-year "six-figure" employment contract and a $5 per unit royalty.
In addition, a buyout means that the money is pure profit for the entrepreneur himself. Once Robert acquired the business, all sales, marketing, manufacturing, and stock issues became his responsibility and the entrepreneur became an employee with a sizable personal bonus and ongoing royalties.