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."
Researchers at the University of Arkansas have been awarded $1.5 million from the National Cancer Institute at the National Institutes of Health to develop new molecules and biopharmaceuticals that improve a patient's immune response against tumors.
InvoTek, a research and development firm from Alma, has received a $175,000 federal grant for development of the "Quad Rider," a gear and braking device that helps people with disabilities safely operate a handcycle.
The Vault is an internal incubator for student entrepreneurs set inside what once was the underground vault of the former Federal Reserve Bank at Third and Louisiana streets in downtown Little Rock. The building now serves students in grades 9-12 as eStem High School.
The R&D 100 is a prestigious list of the world's top 100 tech-based product innovations included each year in R&D Magazine. The R&D 100 is known as the "Oscars of Innovation" and past award winners have included the flashcube, ATM, fax machine and HDTV.