Erica Pope, creator of Fort Magic was a stay-at-home mom for fifteen years. The product is one of the most extensive kits on the market with sturdy materials for children to build any number of items. She presented Fort Magic in Season 5 of Shark Tank and got an offer from Robert, but passed on the deal.
Fort Magic is priced at $200 as of airing of the show but is now currently available on Amazon at $114.99. Hopefully, Erica got her cost to build down, as it is $40 per kit when selling at $199 and margin a profit of $100 per package.
Company: Fort Magic
Season 5 Episode 529
Entrepreneur: Erica Pope
Ask: $75,000 for 15% equity
Fort Magic lets your child create any number of configurations with their 354 piece kit. You add the fabric to the frame and let the imagination run wild. Kids love building with the sturdy structure pieces that come in a great box to place the materials when not in use.
Fort Magic launched 18 months before Shark Tank Episode
Her company launched 18 Months previous to appearing on Shark Tank with $150,000 in sales. She said that Amazon is her primary sales channel. Fort Magic won the Dr. Toys Best Classic Toy Award in 2014.
Fort magic is rather large at 26inches by 10 inches by 10 inches and comes with a storage bag. Her kit is patent pending as of the Shark Tank Episode recording.
Erica invested $50,000, and her mother put $200,000 in the deal. They now have another investor putting in an additional $200,000 for 1/3 of the business.
Sharks:
Here is what happens with the Sharks on Fort Magic:
Barbara thinks that Erica is all over the place, she loves her enthusiasm but asks her what her top three priorities are when she goes to work the next day. Erica is unable to answer, and Barbara does not feel she is hyper-focused, so she is out.
Mark Cuban thinks Erica is going 200MPH and for that reason, he doesn't know what direction she is going so he is out.
Kevin O'Leary feels that most families cannot afford to pay $200 for a children's today and needs to be $100 or less. He is out.
Lori thinks Fort Magic is too expensive and should include the fabric for the different things you can build with the toy, so she is out.
Robert Herjavec thinks she will sell a ton of Fort Magic when her episode airs through Shark Tank, and he decides to make an offer, but he believes he is going to have considerable work keeping her focused with his team. His proposal is for $75,000 for 50% of the company. She asks Robert what he will do for the 50% and the other Sharks chime in saying that is the smartest question/statement she made. He came back saying distribution and management.
Erica feels Roberts deal is too much equity countering at 25%. Robert stays, and she declines his offer, but says, Okay, thank you and goodbye.
Fort Magic is currently available on Amazon here.
Do you want to know the latest on what is happening in the world of the Sharks, the people, and the companies that appear on Shark Tank? Sign up and when there's breaking news you will know first!