Shark Tank Deal For HyConn Deep-Sixed - Innovate Arkansas
Shark Tank Deal For HyConn Deep-Sixed
By Arkansas Business Staff, 7/4/2011 12:00:00 AMRemember the Cabot firefighter who hit it big last month on the ABC reality series "Shark Tank"?
Let's just say things didn't end as they appeared on television. Because of that, a Bentonville company may reap the benefits.
Jeff Stroope is the firefighter whose innovation - the HyConn fire hydrant and garden hose connector - was the subject of a spirited bidding war among potential investors, won by Dallas Mavericks owner Mark Cuban, during one of the show's episodes.
At its conclusion, which was filmed in November, Stroope sold Cuban the entire company for $1.25 million, a three-year contract at $100,000 per year "to run the show," and 7.5 percent of all ongoing royalties.
Turns out Cuban wasn't as interested in manufacturing the product as licensing it to another company and collecting royalties. That led to Stroope's rejection of his offer.
Enter 101 Ventures, a business incubation company in Bentonville, which now has an equity position in Stroope's business.
Matt Fifer, who heads up the company along with Jeff Clapper and Mike Cockrell, said several orders have been placed for the fire hydrant connector, with as many as 30 distributors from across the country contacting the firm to help.
"But the biggest momentum is with the garden hose connector," Fifer said.
"We're in advanced talks with a couple of companies that do have worldwide distribution capabilities."
The 2,300-SF space in the Enterprise Center at the UA tech park will enable Picasolar, an Innovate Arkansas client firm, to reduce the time it takes to produce its patent-pending product, a hydrogen super emitter that improves solar cell efficiency and reduces the amount of silver needed in the manufacture of solar panels.
At an awards ceremony recognizing the state's top exporters, Arkansas small business owners and an official with the U.S. Export-Import Bank called for the bank charter's renewal.
The University of Arkansas for Medical Sciences BioVentures was launched more than a decade ago to combine research at UAMS with entrepreneurship, technology licensing and economic development. BioVentures has since spun off 22 companies using technologies developed at the campus.
The “Navigating the New Media” workshop will be held from 8:30 a.m.-1:30 p.m. June 26 at the Heifer International Village in Little Rock. The cost to attend is $50 for students, $75 for IABC members and $100 for nonmembers, the group said in a news release.