Generating millions of USD in revenue from selling educational toys for children aged 0-5 on Amazon and Etsy, the startup Kalotoys, founded by Le Trung Anh and Dong Duc Thanh, appeared on Shark Tank seeking strategic investors with a 10-15 year vision to realize their ambition of becoming a beloved Vietnamese brand globally. This led to 3 Sharks issuing Golden Tickets in a fiercely competitive deal.
Presenting compelling financial metrics, identifying a competitive strategy against industry giants, and showcasing the founders' confidence and determination, startup Kalotoys sparked a "major battle" between Shark Minh Beta and Shark Binh to secure the deal.
The fundraising deal entered a critical phase as the Sharks continuously increased the value of the Golden Ticket: from 150 million, 200 million, 210 million VND, the amount gradually escalated to 1 billion, 2 billion, 3 billion, 4.5 billion, 4.8 billion, and finally stopped at Shark Binh's figure of 5 billion VND. Faced with the Sharks' determination, Duc Thanh emphasized that "every dong from the Sharks is precious," but because the founding team desired a further future and a longer-term vision, they decided to decline Shark Binh's Golden Ticket to have the opportunity for further negotiation with Shark Minh.
While Shark Binh offered to invest 1 million USD for 15% equity, Shark Minh Beta proposed investing 1 million USD for 12% equity and indicated he could assist the startup with content and his readily available network of contacts in the US. The Chairman of Beta Group also committed to helping the startup raise at least an additional 3 million USD in investment capital if the startup achieves a revenue of 220 billion VND in 2024.
Shark Thai offered to invest 1 million USD for 10%, disbursed in installments depending on achieved milestones. Additionally, he would transfer the entire R&D, QC, and production process to help the startup optimize production costs and factory operations management.
With the goal of expanding in the US market in the near future, the two founders of Kalotoys analyzed that the startup needed Shark Minh Beta's US connections and Shark Binh's e-commerce experience.
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Therefore, the startup proposed that both Sharks co-invest with an amount of 1 million USD for 10% equity, and quickly received nods of agreement from the two "Sharks." Shark Minh Beta also reiterated his commitment to help raise 3 million USD for the next round if Kalotoys achieves a revenue of 220 billion VND in 2024.
Kalotoys' fundraising deal concluded with the partnership of Shark Minh Beta and Shark Binh on their journey to expand into the US market, aiming to turn the start-up into a globally beloved brand.