"I'll make 10x on my dough" - Shark Tank's Kevin O'Leary offers a royalty deal to Lectec 

Shark Tank Season 16 Episode 11 featured a pitch from entrepreneurs of Lectec. Entering on a skateboard and with some kids, Lectac demonstrated how learning could be fun for the kids.

Jared Ebersole and Luke St. Amand pitched their company on Shark Tank which makes buildable electric skateboards proving itself to be a fun DIY project for the younger generation.

Luke claims that it turns "STEM learning into a hands-on exciting adventure." These kits come with all the parts and tools required for assembling the skateboard. With all these parts, Jared claims, kids will be able to grasp the idea of "so many science concepts."

Starting with his doubts, Kevin wanted to clarify who are the main target audience for Lectec. Jared says that they have been directed to education. Lori points out that the brand could also take up the consumer route directly.

However, the entrepreneurs clarify that their first step in the business which they opened only 10 months ago, was to prove that this product is an educational experience for the kids.

During the negotiations on Shark Tank, the team had a deal from Robert Herjavec and Kevin O'Leary. The latter, however, was offering a royalty deal of 10 dollars on each product until he made a million out of it. Justifying his choice, Kevin says,

"Just to make it interesting, I'm willing to cap the royalty at a million bucks. It just goes away after I get a million. I make 10x on my dough."

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Shark Tank entrepreneur Jared and Luke pitch Lectec

Jared and Luke started Lectec only a few months ago as they mentioned on Shark Tank, but their story goes back to when the former was just 15 years old. It was when he had seen a video of an electric skateboard online and loved it.

But the product was way too expensive, at $1600, for him to buy. This prompted him to make one for himself with the parts readily available.

However, he did not think that his idea could also turn into a business model. Soon, people were impressed by his creation and started asking him for the products. Jared revealed that he had done over a million dollars in sales with it.

When he had graduated and presented an electric skateboard to his nephew, the kid's first instinct was to ask his uncle "how it worked." This gave Luke an idea that maybe other kids would also want to learn more about the same.

Coming on Shark Tank, the two entrepreneurs are seeking $100,000 for 10% of their company. Offering the same amount at 25%, investor Robert Herjavec starts the negotiations. Kevin also takes an interest and says,

"I love a lot of things you're doing. And you guys are kind of geeky, nerd dudes and I think that could come across very well on social."

Kevin matched the amount they were seeking but added a royalty deal on top of that. Robert chimed in and said,

"It's the kiss of death. That's the kind of kiss he's kissing."

Jared negotiates with Robert for 15% because what he's offering is the value where the entrepreneur himself puts the money in and thus, it would not be feasible for him. Shark Tank investor Robert settles for 17.5% and they accept the offer.

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Episodes of Shark Tank Season 16 drop weekly on ABC at 8 PM Eastern Time on Fridays. Later, they can be streamed via Hulu.