KaZam Net Worth
Mary Beth Lugo made an appearance on the popular TV show Shark Tank, where she pitched her company, Kazam, and requested $300,000 in exchange for a 20% stake in the business. This translated to a $1.5 million valuation of the company at the time of the show.
After pitching her business, Mary Beth received an offer from Mark Cuban and Barbara Corcoran for $300,000 in exchange for a 32% stake in the company, valuing Kazam at $937,500. Mary Beth accepted the offer and the three of them exchanged handshakes.
Since her appearance on Shark Tank, Kazam has experienced significant growth, resulting in a higher current valuation than what Mary Beth accepted on the show. The company has expanded its product line and secured partnerships with major retailers, leading to a higher valuation.
As of August 2021, the company’s yearly revenue is $5 million. Mary Beth’s appearance on Shark Tank and the investment from Mark and Barbara has played a crucial role in the company’s growth and success.
What is KaZam and Who is the Founder of KaZam?
KaZam is a company that specializes in producing balancing bikes for children who are learning to ride without training wheels.
These bikes are designed to allow kids to glide on the bike by placing their feet on a footrest instead of pedalling. This method helps children to develop their balance and control, rather than relying on training wheels for support.
The KaZAM bikes are ideal for children between the ages of 3 and 6 who have not yet learned to ride a bike. Unlike traditional bikes, which rely on training wheels for support, these bikes have a footrest that allows children to get used to gliding on two wheels before moving on to a traditional pedal bike.
Mary Beth Lugo is the founder of KaZam and a role model for many. She took an idea and turned it into a successful business that meets a real need. The concept of using a balancing bike to teach children how to ride has been around for a while and was developed in Europe.
Mary Beth Lugo’s inspiration for KaZam came when her younger son, at the age of three, was able to ride a two-wheeled bike without ever using training wheels, thanks to the balancing bike approach.
With the realization that there could be a significant demand for this type of product in the US, Mary Beth Lugo and her husband launched Kazam bikes. These bikes have received multiple awards and have been featured on The Today Show and in Parenting magazine, proving their popularity and effectiveness.
KaZam Shark Tank Pitch
Mary Beth Lugo presented KaZam on Shark Tank Season 4, Episode 24 with two young children riding regular-looking bikes.
She asked for a $300,000 investment in exchange for a 20% stake in the company, which valued KaZam at $1.5 million. Mary Beth showcased the bikes’ unique design, which allows children to learn how to balance on two wheels without pedals.
During the pitch, the sharks asked about the bike’s cost and sales figures. Mary Beth revealed that the cost of making each bike was $28.25, with a wholesale price of $45 and a retail price of $99.95.
The bikes were targeted at children aged 2-5, and the company had generated $1.4 million in sales over the last three years. Mary Beth also disclosed that they expected to make $1.5 million in sales in 2013.
After some back-and-forth, Mark Cuban offered Mary Beth $300,000 for 40% of the company if Barbara Corcoran would join him. Mary Beth agreed, and the three of them shook hands.
Two years after the show aired, KaZam introduced a new product called Ride-On, a balancing bike for children as young as 12 months old.
They also expanded their product line to include the Shortboard with cubed Shark Wheels. Mark Cuban and Barbara Corcoran helped propel KaZam’s sales, with revenues surpassing $1.5 million within a few months of Cuban’s investment.
KaZam received accolades from publications such as Sky Magazine, the Oppenheim Toy Portfolio, and the Mr. Dad Seal of Approval. The company’s sales also increased when their bikes were placed in Dicks Sporting Goods stores and Toys R Us.
As of August 2021, KaZam’s annual revenue is $5 million, and Mary Beth Lugo is still working with her Shark Tank partners to continue growing her business.
What is the Net Worth of KaZam?
Mary Beth appeared on Shark Tank requesting $300,000 in exchange for a 20% stake in Kazam. This translates to a $1.5 million valuation.
She accepted an offer from Mark and Barbara of $300,000 for a 32% stake thus a 937,500 valuation.
The current valuation is higher compared to what she accepted on the Show since the Company has grown.
Who are the Competitors of KaZam?
Top Competitors of KaZAM includes; Schwinn Bikes, Strider Sports International, EVELO Inc., Faraday Bicycles Inc., Superpedestrian Inc., Ninebot Inc., Pedego Electric Bikes company and Currie Technologies Inc.
KaZam Shark Tank Episode Summary
|Shark Tank Episode||Shark Tank Season 5 Episode 21|
|Founder & Entrepreneur||Mary Beth|
|Amount Asked For||$300,000 for a 20% stake in her business|
|Deal: Accepted Offer||$300,000 for 32% equity of the company.|
|The Shark Investor||Sharks Mark Cuban and Barbara Corcoran|
|Business Net Worth||$1.5 million valuation|
|Business Status||The business is still in operations|
What is KaZam?
KaZam is a company which produces children’s balance bikes.
Who founded KaZam?
Mary Beth Lugo is the Founder of KaZam.
Where is KaZam headquarters?
The Company is headquartered in West Fairfield, New Jersey, United States
Where can they buy KaZam products?
They can buy the products from their official site: www.kazambikes.com
How much was she seeking in the Shark Tank?
Mary Beth Lugo was seeking $300,000 in exchange for a 20% stake in KaZam.
Did she get the deal from the Sharks?
She get the deal from Sharks Mark Cuban and Barbara Corcoran.
How much was the deal?
The deal was $300,000 for 32% stake thus a 937,500 valuation.
What happened to Kazam after Shark Tank?
Within a few months of Mark Cuban’s investment in Kazam Bikes, revenues surpassed $1.5 million. The bikes were soon featured in publications such as Sky Magazine, as well as receiving distinction from the Oppenheim Toy Portfolio and the Mr. Dad Seal of Approval.
How much does it cost to purchase?
She makes them for $28.25 and sells them wholesale for $45. They sell direct to the public for $99.95.
What age are recommendable for KaZam bikes?
She recommend the bikes for 2-5 years old. KaZam has introduced Ride-On, a small balancing bike designed for children as young as 12 months old, after appearing on Shark Tank.
What is their warranty policy?
All KaZAM products are warranted for one year from the date of purchase.
This Warranty is only valid for the original retail purchaser, who must provide evidence of purchase to substantiate any claim.
This guarantee cannot be transferred to another person.
Where are Kazam motorcycles manufactured?
Take their youngster along for the journey! The Kazam iBert kid bike seat is front mounted, allowing their child to enjoy the ride just as much as they do! Furthermore, it is manufactured in the United States of America.
What is their returns policy?
If consumers are dissatisfied with their purchase, they may swap or return it within 30 days of purchase.
Returned products are subject to a 10% restocking fee as well as return shipping expenses.
If they are found to be at fault, no restocking or return shipping fees will be withheld.
Items must be returned in unused condition with no signs of wear. Items returned must also be in their original packaging.
What is net worth of Mary Beth Lugo?
Mary Beth Lugo net worth is $950,000 as of 2022.
How can they contact KaZam?
They can contact KaZam through its official site www.kazambikes.com. They can also email them at [email protected]