Brad Baker, founder and creator of VCabs appeared on Shark Tank in 2016, presenting his idea for a pinball machine. Fish was playing on the machine, Mark Cuban especially enjoying it. Initially, Baker was asking $250,000 for 10% equity in his company, bringing the value of VCabs to $2.5 million. Baker explained that in a year and a half, the company sold about 200 units for $750,000 and sold each machine for $3,000 to $9,500. Later, however, Baker would report his profit in 2014 was only $12,000.
At first the fish were not satisfied with the idea. Specifically, Robert Herjavec and Lori Greiner believe that young people – the target audience for VPCab – may not be interested in pinball and the high-quality game options available on the market. Concerns about the lack of commercial software drove Mark Cuban out, as he feared a lack of competitive advantage, and up to 15% licensing fees made the company less profitable.
However, entrepreneur Daymond John came to the rescue, seeing an opportunity to merge with his existing technology company, and offered $250,000 for 30% of the company. Baker accounted for 20%, and in the end, the two settled on an initial asking price of $250,000 with a 25% stake in VCabs.