Duzter Hockey Shark Tank Final Deal – SE16EP14

I never liked or played hockey. And even if I wanted to play, my mother would never let me play this sport. The reason? It is a dangerous sport with sharp blades on your feet, and surely, you don’t to be hit by a hockey puck, right?

Quick Review

1. E Martin. A, seek $200K for 10% shares of their company, Duzter Hockey.

• Father-son duo was on a mission to make a dangerous sport safer with a great product. To know more about it, click here.
• Mark secured the deal for a much lesser valuation of the startup.

The Problem Statement

As I said above, hockey is one of the most dangerous sports in the world. Do you know why? Because a player has to move around the ice and navigate his way to the goalpost by skating on literal knives.

Drama and speed, intensity, and occasional fights, there is everything a youngster brimming with energy could ever ask for. But, it is the safety that the current hockey equipment does not make the sport too much attractive.

The Problem Duzter is Solving

Here comes Duzter, the world’s most innovative brand that is specifically designing hockey equipment to make the sport safer. From shirts to pants, you can find multiple compression-based layers, with cut-resistant fabric.

This way, the blades beneath the shoes do not pose as much risk as they do without the special equipment.

Specifically, for shirts, there is an armored compression, which adds additional protection around the neck and the arms. Moreover, pants offer protection around ankles and things.

And, this is all done without sacrificing the speed, mobility, and comfort of the player.

Net Worth, Financials, and Valuation

Back to last year in October, a hockey player had died on the hockey field. He was badly injured and couldn’t bear the injuries and died on the hockey field.

On this, Martin. E mentioned that their stock was sold in less than 2 days after the incident. Plus, they have three patents for their product, so, they are far away from being copied.

Now, coming to sales, Duzter has had $326K in sales in less than two years since its opening. Moreover, they are selling directly to pro shops and to customers as well.

Moreover, they have a huge profit margin, one of the highest that I have seen till now in the history of Shark Tank. The cost to make the youth shirt is $26 and they sell it to customers and sports retailers for $85. Wow!

Sharks Remarks

Well, the sharks weren’t so satisfied with the numbers as Martin. A and Martin. E told so less about the financials. Based on this, Kevin asked how they were planning to acquire customers, and they said that there are 6 teams currently testing their product.

Moreover, their product was also featured in the NHL playoffs, and soon, they would meet the NHL and AHL equipment managers to use their products.

Upon this, Kevin said that Nike got crushed in the hockey business, and it’s almost impossible for new brands to sell their products in hockey. So, he opted not to invest in the business.

Next up was Daymond who said that this business was super technical, and he wouldn’t be able to help them from the manufacturing side nor did he have the passion to invest in this business.

Then came Rashaun, who simply said that he had no idea about the industry and that as much as he wanted to invest, he wouldn’t.

Lori was next and she said that she agreed with Kevin and advised them to license the product.

Mark was the only shark left and he asked them what they wanted from a shark. To which they said that they wanted someone to mentor them.

In the end, Mark said that he would give them the amount of 20%, and there was no way he would negotiate on this number. Hence, the deal was secured.

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My Assumptions:

You may have seen the scarcity of financial data I had above. I don’t really enjoy such pitches where there is so little to play around. Anyway, I have done a financial analysis of this startup as well, with all the data that I had.

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