What Happned After Shark Tank- Is Revolights Out Of Business?

Is Revolights out of business

By now, you’ve probably heard that Revolights, the innovative bike light startup, has shut down. They are no longer in business, as they have publicly declared. They were once a leader in bicycle innovation, but their path has ended.

Do you recall when Revolights first appeared on the scene? With 360-degree visibility, their ground-breaking lighting design changed the game. It promised a change in bike safety. Many cyclists and tech enthusiasts who were drawn in by this novel method of bicycle illumination are saddened by the news.

But today is where we are. Revolights no longer have any lights. They had to close their doors despite their initial success and devoted base of supporters around the world. This is a shock, given how adored their products were by avid bikers and casual riders. How did that go? What caused this unlucky set of events? Let’s examine the specifics and some causes for Revolights’ sudden exit from the business world.

What are Revolights?

Up to 70% of nighttime accidents involving cars and riders involve a lack of side visibility. Revolights were developed to address this problem. The Revolight front portion is white, while its back leg is red. The maker creates a wheel with kits and lights for standard wheels.

They rose to become the top two bicycle manufacturers by relying on their two utility patents. In 12 months, they have made $600,000 from online sales. The total set costs $229, with the front set costing $139. Producing the $229 light package costs $100.

Kent Frankovich was invited to Season 5 of Shark Tank. This happened after applying for funding to cut expenses and make connections to help expand the firm.

How does it work?

To reduce nighttime cycling accidents and improve bicycle visibility, Revolights was created in 2011. It uses a battery-operated LED lighting system and is attached to the bicycle’s wheels. The front wheel houses the headlights, while the back wheel houses the brake lights. There was a lot of consumer interest when this product first became available.

Revolights’ goals and products

The company’s founder, Kent Frankovich, had the idea for Revolights while riding his bicycle in the dark. That inspired him to go on a mission to reduce bicycle accidents caused by poor nighttime visibility. Based on this goal, he and his team created a prototype and used Kickstarter to begin their business.

This product’s LED lighting system attaches to the spokes of the wheel. These lights maintain their fixed position via magnets. The power unit is mounted in the bicycle wheel hub, and the batteries may be recharged using a detachable USB charger.

Kickstarter Funding for Revolights

In 2011, the initial Kickstarter effort was successful and raised close to $215,000. They launched a second Kickstarter campaign in 2013 and collected $94,000 in financing.

They acquired their patents, funded tooling, and manufactured. They improved their design using the funds from the initial round of funding.

The device from Revolight was initially only suited to 27-inch wheel rims. Additionally, they began offering wheels with built-in lighting systems. Even ideas were created to build this up to various sizes and create an integrated self-charging battery system.

Within a year of starting to market their unique product primarily online, Revolight had achieved success. Kent, the founder of Revolights, made an application to be on Shark Tank for the reasons listed below:

  • To expand more
  • Lower the cost of production
  • Make essential, valuable connections.

Revolights on Shark Tank

On the television program Shark Tank, Revolights first requested an investment of $150,000 with a 10% stake from the sharks. Some sharks thought they had undervalued the business since they were impressed with the product.

After getting proposals from each of them and giving it some thought, Kent decided to work with Robert Herjavec to complete the transaction. Robert proposed a $300,000 investment for a 10% return.

In 2014, Kent secured an extra $1,000,000 in funding from “Angel” investors due to this successful Shark Tank deal. After Shark Tank and the financing from “Angel” investors, the value of RevoLights rocketed.

The Post-Shark Tank Revolights

Following Shark Tank, Revolight experienced sharp growth and rapid global expansion. It includes South Africa, Singapore, and Brazil. Additionally, they began selling on a variety of channels, including

1. Amazon

2. Its webpage

3. Conventional stores

4. REI, the American sports and outdoor goods business

5. Specialty bike shops

Revolights also introduced new product lines with items like

  • Coolidge Revolights
  • Revolights Eclipse

Why did Revolights go out of business?

The closure of Revolights was in January 2019. Increased crowdfunding has been a significant reason for Revolights’ closure. Startups that receive this tremendous cash, along with their optimism, have the potential to soar into success overnight.

While it helps startups achieve their goals, it can also serve as a wake-up call. Specifically, it is how unprepared the startup is for increased public interest in their product. They needed more resources and infrastructure to be able to handle it.

Revolights experienced that because demand far outstripped what its founder had anticipated.

They suddenly and swiftly obtained funding in large numbers. After that, Revolights received a large volume of orders that they could not fill. Despite having plenty of money and demands, Revolights could not launch its products at the required size.

They worsened things by accepting this deluge of orders without first striking suitable production deals or completing the necessary legal processes.

Revolights appeared to have become a fantastic overnight success story from the outside. But sadly, the founders had not yet built the company from the bottom up to begin fulfilling these orders.

They informed their loyal clients and Kickstarter funders in a formal email before closing down for good. They told them by email of their decision to close and explained how a shortage of resources led to this choice.

Conclusion

Kent Franovich, the creator of Revolights, has an undetermined net worth as of 2023. In March 2014, Revolights appeared on a Shark Tank America episode. The company’s net worth is still being determined, though, as it has stopped operating since 2019. According to our online study, Revolights closed its doors in 2019, and its goods are no longer on the market.

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