Dig World Shark Tank Final Deal – SE16EP13

Going down memory lane, do you remember how fascinating it was to see the massive machines digging up at the construction sites? Not gonna lie, we all wanted to sit, dig, and experience how it felt. Well, they say the kid inside us should never die.

And, to make sure we experience for at least once how it felt to dig up with excavators, Dig World is here. yes it is.

Key Points

• Jacob Robinson, Co-Founder of Dig World came in the Shark Tank for $200K and offered 10% in his company, with a valuation of $2M.
• While all the sharks backed out, Robert gave an offer and secured the deal.
• Dig World is a family-themed construction park – One where you can relive the best childhood memories with your kids. To know more about it, refer to our product review of Dig World.

The Mind-Boggling Concept

Let’s admit it, we were never going to drive an excavator, just because who in the sane mind would let us operate one, right? With heavy construction going on at the sites, it’s neither a genius nor an implementable idea.

But, what about our kids? They would love to experience it, like us, when we were kids. But, the world wasn’t so advanced at that time and now, it’s possible because Dig World is exactly offering the same experience.

The idea behind this company is that it’s a family theme park, but a construction one where you may find all the heavy machinery you find at the construction sites.

The catch?

Jacob buys these machines, upgrades, or makes changes to them for safe use, even by kids who are 32 or more inches in height. Yes, that is the only criteria for you or your kids to enter this fantastic, and full-of-fun construction-based family theme park.

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Dig World vs. Extreme Sandbox

Not long ago, Mark Cuban invested in Extreme Sandbox, does that ring a bell? Well, most sharks thought that this company worked on a similar concept. But, Jacob knew that sharks would raise this question and he came prepared.

Jacob states that both are different as Extreme Sandbox is more towards adults with big equipment and machinery – you smash a car that sort of an experience.

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Digging Up the Numbers

Coming to the sharks’ favorite part, where most of them make up their mind to offer a deal or not. Starting with the price of admittance, it only costs $24.99 per person to enjoy the all heavy-duty machines. And, as I told you above, you need to be at least 32 inches or more to enjoy such rides.

Jacob stated that the whole experience may be around two hours long. But, if anyone wants to stay for a longer time, they are always welcome to do so.

Jacob also mentioned that his plan is to go for franchising, and that is why he appeared before the sharks. Till now, he operated at a single location, and from that, his company has generated a little over $1.5M in just two and a half years.

Last year, Dig World sales were closed around $1.2M and this year, they are well on their way to cross the $1.5M mark. And, not to mention that they would do around 25% EBITDA at $350K.

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The Franchising Model, Net Worth, and Confusion Around It

It’s important to discuss the franchising model in detail because Jacob wasn’t offering 10% in his company, but rather in the franchising model he came up with. Well, no one saw that coming, especially not the audience.

Anyway, the franchising fee cost $100K and after franchising, Jacob would take 5% in royalty and 2% in marketing, making it to a grand total of 7%.

Not just this, to buy land, and machinery, and make it suitable for the family theme park, Jacob estimated that it would cost around $2.5M. While this figure shocked the sharks, Jacob also mentioned that around 28 people were lined up to acquire his company’s franchise.

What Did the Sharks Decide?

Well, the sharks did not like at all that they would be getting a fair share of his franchising model, and not the actual company itself. While sharks came up with different reasons, deep down I know that this franchising model was the bone of contention.

Anyway, Daymond was the first one to cancel himself out of the deal as they thought that getting good locations for franchising would be a much bigger challenge than it actually seemed. And citing this reason, he opted out of the deal.

Next up was Lori and Kevin, as both of them stated that investing in a construction-based theme park wasn’t their cup of tea.

Then came Robert who thought differently than other sharks. He simply stated that he would also want a 10% share in his corporate business, the Dig World, while he would also want the 10% of the franchising model.

In the end, Mark gave Jacob a reality check and told him with a straight face that you’re early. You only have a single location and hence, not suitable to invest.

As Jacob did not have much room to negotiate or counter, he silently took Robert’s deal.

Dig World Current and Estimated Revenue

Continuing my tradition, you know I make a sound evaluation of the company’s net worth and financials. So, let’s see how on earth this company will perform in the next several years.

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