Nexersys Shark Tank Pitch
Nexersys combines the benefits of a personal trainer with the fun of todays online games. The system provides a detailed analysis after you are finished. Mark Cuban gets up and tries the Nexersys system.
The company has a huge valuation, and has $4.2 million in sales over eighteen months. They have a commercial and a personal model. The commercial has about 70% of the sales, and cost to make is just under $2,000 and sells for $7,000.
The home unit sells for $2995, and they do TV Commercials, spending about a million dollars and produced a million and a half. They have $7.5 million of shareholder debt. Terry owns 35% of the company.
Nexersys Episode Data
- Company: Nexersys
- Entrepreneur: Terry Jones
- Ask: $2,000,000 for 10% equity
- Episode Season 5 Episode 516
- Companies in this episode:
- First Aired: 01/31/2014
What do the Shark Tank Investors say about Nexersys?
- Mark Cuban – says they are going to force him into bankruptcy and anything that you have is going to be gone. Mark doesn't understand how he has $7.5 million in development on this device. He is out.
- Daymond John – thinks he is in a fight with Mike Tyson coming into the third round and he is about ready to knock you out. He is out.
- Kevin O'Leary – said he would wait for the debt to come due, and then own the company. He asks Terry if he thinks that a savvy guy would want that debt eliminated before the investment. Kevin sees him as an employee of the company in the future. Kevin is out.
- Lori Greiner – thinks he will figure out how to get out of the debt, but she does not want to be on it with the debt. She is out.
- Steve Tisch – Great product, too much debt. He is out.
Nexersys after Shark Tank
Nexersys addresses the Sharks on their website, they listened. Their sales increased by 450%. The company is profitable and are now generating over 50% of profits from software and royalties. Over half their debt converted into stock, allowing them to service the remaining debt from profits.