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."
Nominations are being accepted for the list of the state's most influential young professionals, "The New Influentials: 20 in Their 20s."
The nascent Main Street creative corridor and Little Rock technology park are revealing signs of life, but Jay Chesshir, president of the Little Rock Regional Chamber of Commerce, believes the continued development of Little Rock's burgeoning tech-based startup ecosystem can help get it there.
A "who's who" of Arkansas business and innovation leaders joined Delta Regional Authority co-chair and Arkansas native Chris Masingill and U.S. Assistant Secretary of Commerce for Economic Development Jay Williams on Friday for a discussion on entrepreneurship and its role in economic development.
Jordan Carlisle's new gig with the Little Rock Regional Chamber of Commerce wasn't much of a stretch. After all, he already was working with the Arkansas Venture Center out of space donated by the Chamber, and the new duties mirror his agenda as a local startup champion.