Story of Vibe Gaming- Shark Tank Bangladesh -Entrepreneur
Story of Vibe Gaming
Shan from V Limited walked into the investment room, seeking
a 30 lakh Taka investment in exchange for 10% equity in his company. He
introduced his business, which focuses on providing gaming products and
experiences, primarily through YouTube influencers, streamers, and gamers
themselves. Shan emphasized that his business was still in its early stages but
had shown promising growth. He mentioned that the products were sourced from
China and that the margin on the goods was quite slim, standing at only 10%.
Marketing Strategy
Shan explained his business's marketing strategy, which
largely relies on influencers and direct partnerships with gamers. He
highlighted that, rather than just relying on traditional advertising, they had
built a brand presence by working closely with YouTubers and streamers who
influence the gaming community. He stressed that this direct approach had
allowed his company to introduce seven new gaming brands to Bangladesh in just
two years.
Product Overview and Expansion Plan
When asked about the future of the company, Shan revealed
that he planned to use the 30 lakh Taka investment to expand further. He wanted
to use part of the funds to acquire a new brand and open two additional
experience centers, which would help increase brand visibility. Shan believed
this would help grow his business and solidify his copany’s presence in the
market.
Key Product Sales and Projections
The company’s best-selling product was a specific gaming
keyboard, which had been incredibly popular in the market. Shan explained that
70% of the business was focused on keyboards, with the remaining 30% coming
from other products. His company had already sold 2500 keyboards in the
previous month, which demonstrated the strong demand for their products.
However, he acknowledged the challenge of entering the gaming hardware
manufacturing business without sufficient market confidence and production
resources.
The Offer
One of the sharks, interested in the business, proposed a
deal. This investor offered the full 30 lakh Taka investment, but with a
stipulation: Shan would need to start producing his own line of gaming
keyboards under his brand, and the investor would take 30% equity in the
company. This offer came with a clear understanding that the market was ready
for such a move, but it would require careful planning and the necessary
production capacity.
Loan Offer and Partnership
Another shark, seeing the potential in the business, made a
different kind of offer. This investor suggested providing the 30 lakh Taka as
a loan, with a 10% interest rate to be paid over a specified period.
Additionally, the company would need to pay a royalty for each keyboard sold to
cover the loan repayment. This deal would also come with a 10% equity stake in
the company, which allowed the investor to benefit from both the repayment of
the loan and the company’s growth.
Competing Offers
The tension in the room grew as the investors started to
discuss their individual offers more aggressively. One investor raised the
stakes, offering to contribute 15 lakh Taka for 5% equity, while another
proposed 20 lakh Taka for a larger share of the company. The offers were varied
and quickly became complicated as each investor expressed their interest in
different aspects of the business, from hardware manufacturing to growth in
Bangladesh.
Final Decision and Negotiation
With time ticking away, Shan faced the tough task of
deciding between the different investors. One investor, however, seemed to be
more invested in the company’s future and willing to push the deal forward.
This offer included a combination of investment and equity with the opportunity
to negotiate the terms later. Ultimately, Shan had to make a quick decision,
weighing the trade-offs between immediate equity loss and potential future
growth.
Story of Vibe Gaming- Shark Tank Bangladesh -Entrepreneur/age/net worth/startup/Vibe Gaming story/Shark Tank Bangladesh/
Securing the Deal
Shan was able to bring his partners into the conversation to
discuss the terms, but time was running out. After much deliberation, he
eventually agreed to a final deal that included both cash investment and equity
sharing. This meant that Shan had to give up more of the company than he
initially anticipated, but he saw it as a necessary step to expand and scale
his business.
New Beginnings
With the deal finalized, Shan was excited about the future
of his business. The support from investors provided him with the financial
backing he needed to launch his own line of gaming products and expand his
brand presence in Bangladesh. He felt reassured by the investors’ commitment
and was confident that this partnership would take his company to the next
level, despite the challenges of operating in such a competitive market.
A timeline of Shan's pitch and journey with Vibe Gaming
Limited:
Company Background: Shan from V Limited seeks a 30 lakh Taka
investment for 10% equity, focusing on gaming products and experiences,
primarily through influencers and streamers.
Marketing Strategy: Shan emphasizes the company’s strategy
of partnering with YouTubers and streamers instead of traditional advertising,
which led to introducing seven new gaming brands to Bangladesh in two years.
Product Overview: The company's best-selling product is a
gaming keyboard, contributing to 70% of sales, with 2500 units sold in the
previous month. However, Shan highlights challenges with entering gaming
hardware manufacturing due to market confidence and production resources.
Future Plans: Shan plans to use the investment to acquire a
new brand and open two experience centers to increase visibility and grow the
business.
Investor Offers:
Investor 1: Offers 30 lakh Taka for 30% equity, with the
condition that Shan start producing his own gaming keyboards under his brand.
Investor 2: Offers 30 lakh Taka as a loan with 10% interest,
plus a royalty for each keyboard sold, in exchange for 10% equity.
Investor 3: Offers 15 lakh Taka for 5% equity.
Investor 4: Proposes 20 lakh Taka for a larger share of the
company.
Negotiations: Shan weighs various offers and considers the
impact of giving up equity versus future growth potential. He consults with his
partners and explores negotiation options.
Final Decision: Shan agrees to a deal that combines investment and equity sharing. He sacrifices more equity than planned, but sees it as crucial for scaling his business.
New Beginnings: The final deal secures the necessary
resources for Shan to launch his own gaming product line and expand his brand
presence in the competitive market. He feels confident in the partnership’s
potential for future success.
