Do you always be in constant fear of your belongings getting stolen while you are away enjoying your vacations?
Do you always worry about your credit cards getting stolen from your hotel rooms?
Loctote is here to free you from all these worries and help you enjoy your vacations fearlessly with bags that will safeguard your belongings while you are away enjoying.
Loctote at a Glance:
| Idea | An ultra-secure and anti-theft backpack |
| Founders | Adam McBride and Dol Halpern |
| Asked For | $150,000 for 5% |
| Accepted Deal | $150,000 for 10% + $10 royalty per bag |
| Sharks | Robert Herjavec |
| Business status | In Business |
| Episode No. | Season 8, Episode 22 |
| Buy on Amazon | Buy Now! |
Index:
What is Loctote?
Loctote is a backpack or a tote as the name suggests which has theft security. The bag can resist slashing and can be locked to safeguard your belongings.
It is designed from a heavy-duty slash-resistant fabric that prevents theft and is also used to make body armor.
Loctote aims at providing tough bags to protect your precious belongings which look stylish at the same time. It can prevent almost any mishappening with its durability and features like an RFID reader for credit cards and being waterproof.
Founder Story:
Dol Halpern was inspired to invent Loctote while he was on vacation in St. Croix with his family. He observed that someone was trying to steal his belongings while he was swimming.
He instantly sought a bag that would keep all his belongings safe without fear of theft and was unable to find it, inventing Loctote in the process.
Don Halpern, the mind behind Loctote was diagnosed with Leiomyosarcoma (a type of cancer) in 2016. This was also the time when he decided to back down from Shark Tank due to his health conditions yet he never lost hope.
He had his first surgery in late July and then a second one on August 22nd but still pitched his company on September 22nd.
Did Loctote get a deal on Shark Tank?
The founders of Loctote entered the tank with an ask of $150,000 for 5% equity, valuing the company at $3 million. They pitch their product and also hand out samples to be tested.
They provide a box cutter along with the samples to showcase the product’s durability. The product is sold at $179 and costs around $75.
Though the retail price for the product was on the steeper side of the value scale yet the sharks were amazed to know that they had already clocked $1.4 million in sales.
Seemingly interested in the concept and impressed by the sales Kevin decide to offer $150,000 for 10% equity + $10 royalty on each bag until he recoups $450,000.
After fiddling around with the valuation, the founders countered Kevin with an ask of $150,000 for 10% + $10 royalty for every bag until they repay $150,000.
This was when Robert decided to jump in and offered to take up the deal they want. Though shocked yet the founders sealed the deal with Robert.
What happened to Loctote after Shark Tank?
Before coming to Shark Tank, Loctote founders ran two successful crowdfunding programs raising $855,000 on Kickstarter and $615,000 on Indiegogo which proved the viability as well as the higher price point of the product.
They also successfully sold bags worth $1.4 million with a limited number of suppliers.
After the Shark Tank episode went on-air, Robert’s contract went awry shortly after since the founders ran out of stock, such was the demand for the product.
Despite not being carried by any major retailers, Loctote continues doing major progress in its sales growth selling $6 million worth of bags by only selling through Amazon and their own website.
Product Details:
- A bag meant to safeguard your belongings with its anti-theft features.
- It can resist slashing and can be locked on will.
- It is designed to be 5 times stronger than Kevlar and uses heavy-duty fabric.
- It comes with brass locks and an RFID-blocking liner for credit cards.
- The straps are steel woven and the bag is waterproof.
- The company created a lighter and more affordable version called Flak Sack SPORT at the expense of less slash resistance.
What is the Net Worth of Loctote?
Loctote entered the tank with a valuation ask of $3 million and secured a deal that valued the company at around $1.5 million.
After the episode, the company has been climbing the charts, now selling $6 million worth of bags as of November 2021.
As of 2023, Loctote clocks revenue of $1 million. The company has a net worth of around $12 million as of 2022.
Who are the main competitors of Loctote?
The main competitors of Loctote are XD Design, RiutBag, and Pacsafe.
Is Loctote still in business?
Yes, Loctote is still in business with annual sales of around $6 million and annual revenue of $1 million.
Even though the company still does not have any major retail tie-ups yet it has a good amount of organic traffic from both Amazon and its own website.
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FAQs:
What is Loctote?
Loctote is a backpack or a tote as the name suggests which has theft security. The bag can resist slashing and can be locked to safeguard your belongings.
What's the net worth of Loctote?
Loctote entered the tank with a valuation ask of $3 million and secured a deal that valued the company at around $1.5 million.