Toybox is a company that wants to help promote children's creativity with a 3D printer and software so that kids can design and build their own toys.
Toybox is not just a printer and software, it is also a "platform" that can be used with the printer and software so that kids can find the toys they want (and presumably modify them to their own tastes). The printer is $299 retail ($150 cost per unit) and comes with 750 toys already with between seven and ten added every week. One toy figure, like with most 3D printers takes about four hours to complete.
The entrepreneurs see their advantage, though, in having the easiest to use design software on the market. They see it being primarily targeted at children between six and nine years old.
Since September, Toybox has earned $300,000 in sales with advertising on Facebook.
The entrepreneurs behind Toybox built most of the company thus far on $80,000 that they self-financed because they are developers and engineers themselves. They have also raised another $290,000 in capital.
This deal aired on Episode 10.15.
Making A Deal
Mark exits the deal right away because he doesn't believe that any kid has a four hour attention span. Daymond sees a nightmare for product liability and also drops out. Guest shark Jamie Siminoff also drops out after stating that $299 is to high of a price point. Lori thinks that the age group being targeted by the company is too young and that the company should focus on the next group up but still drops out.
Kevin has initially offered the entrepreneurs a deal for $150,000 in exchange for 10% equity, seeing the problem that company is trying to solve as being a parent investing in their child's imagination. But with all the sharks having dropped out besides him, he revises his offer up for $150,000 at 15%. The entrepreneurs attempt to counter with 12% but Mr. Wonderful says no. When they come back at 13% straight equity and 2% in advisory shares Kevin accepts and the founders leave the tank with a $1,846,154 bite taken out of their valuation.