Why All 5 'Shark Tank' Investors Were Fighting For Max Gunawan

With any given pitch, the "Shark Tank" investors are looking for a personality they trust, a product they can add value to, and an opportunity to make a ton of money. In rare instances, all five Sharks see each of these requirements fulfilled, as they did with Max Gunawan, the San Francisco-based founder and inventor of Lumio.

In the latest episode of the TV show's sixth season, Gunawan entered the tank seeking $250,000 for 8% of his company, which produces a sleek book that unfolds into a rechargeable, adjustable fanned lamp. The ends are magnetic, which means they can be linked to each other or attached to metal fixtures.

The investors all found the product delightful, interesting, and useful, but they appeared most impressed with Gunawan's dedication and hustle.

He left a career in architecture to develop Lumio in 2013, raising an initial round of funding on Kickstarter. He sought only $60,000 on the crowdfunding site but made almost $580,000 by the time the campaign ended. By the end of 2013, he brought in $1 million in sales without any traditional marketing campaign.

Gunawan said his projected sales for 2014 ranged from $2 million to $2.5 million, thanks to distribution deals in art museums across the US and retailers in Tokyo. A healthy 15% of revenue was profit.

But, Gunawan said, demand surpassed supply, and he wanted the capital and strategic partner to scale his business.

Each Lumio book retails for $190 at a cost of $80 to produce. To lower production costs, Gunawan told the Sharks, he traveled to the Chinese factory constructing his products and lived there for four months to help optimize the process. He was able to lower the cost to $65 per book and was looking to further reduce it to $50.

"I don't think we've ever had anybody come out here and say, 'I got a factory in China, and I went and lived there for four months'!" investor Robert Herjavec said.

"And I know what that's like, and that was not easy!" investor Lori Greiner adds.

Herjavec kicked off a round of offers in which all five Sharks — Herjavec plus Mark Cuban, Daymond John, Kevin O'Leary, and Greiner — all explained to Gunawan why their background and expertise would be the key to Lumio's continued success. (businessinsider.com)