What Happened To Games2U After Shark Tank?

Games2U is a national mobile entertainment company that delivers a variety of games, activities, and robots to your door.

These games include interactive Video Game Theaters and Ride Experiences, Hightech Laser Tag, Giant-sized, kid-driven robots, Lifesize Hamster Balls, and more.

Stuart and David Pikoff founded Games2U, a mobile video gaming franchise.

Shark Tank had a segment about Games2U in season 2, episode 206 on April 29, 2011, and season 4, episode 405, with a feature on game updates.

Founded in 2008, Games2U is a nationwide mobile entertainment company offering laser tag, giant U-Bots, life-size Hamster Balls, home video game theaters, and 4D rides.

Games2U specializes in birthday parties and provides mobile video game theaters, 4D experiences, giant hamster balls, and laser tag on trailers and trucks to your location.

Games2U offers a comprehensive party experience for both young and old.

What Is Games2U?

Games2U is a mobile entertainment company that provides a truck full of fun for your child’s birthday party, company event, or charity event. 

You can consider it a mobile arcade and cinema, complete with a video game truck and other activities.

Games2U Shark Tank Update

You can participate in everything from hampster ball racing to rock wall climbing to laser tag—not to mention the colossal waterslide. This company offers over 20 different games or activities for children and adults.

Company NameGames2U
EntrepreneurDavid Pikoff and Stuart Pikoff
ProductMobile Entertainment & Games Truck Services
Investment Asking For$500,000 For 10% equity in Games2U
Final DealNo Deal
SharkNo Shark
Episode Season 2 Episode 7
Business StatusIn Business
WebsiteVisit Website

Who Is The Founder Of Games2U?

Stuart and David Pikoff are the founders of Games2U. Stuart worked as a director in the real estate industry before graduating from the University of Arizona.

Currently, he serves as the CEO of Games2U. David graduated from St Edwards University.

He shares his brother’s same interest and background in real estate development. Further, he continues to serve as a director of the corporation.

The brothers developed the concept as they prepared a children’s birthday party, observing that the process of planning a party had not changed since they were young.

Traditionally, parents had clowns and magicians come to their children’s birthday parties and possibly even a petting zoo, but today’s children prefer video games and other outdoor activities.

Parents may find renting out a place with these activities too expensive, so they founded a firm that provides everything right in your garden.

The business began with a single truck, and the plan was always to expand through franchises.

They eventually expanded to 140 franchises in over 28 states and generated combined revenue of $3.5 million. After that, they turned to investors to raise additional funds.

Games2U Before Shark Tank

Everything is always evolving in the modern era. People born several decades ago will think about their childhood memories and be astonished at how things have changed for today’s children.

However, certain things have remained constant. Stuart and David Pikoff returned to their tradition of arranging a child’s birthday celebration and realized nothing had changed.

The traditional elements of birthday parties remain magicians, bounce houses, and petting zoos. When the brothers were children, party planning had little change.

A person who wanted to celebrate their birthday in a more “contemporary” or “special” manner would need to reserve a space at a venue.

The alternative was to host an event on your lawn, which is frequently more expensive and inconvenient. Hence, they set out to rectify the situation like any savvy business would.

Games2U is a provider of “mobile entertainment.” They provide a variety of items, all of which are specialty automobiles.

These cars are equipped with a variety of games and activities. Some have 4D movie theaters, while others include arcade areas.

They also have things that can be disassembled for other outdoor activities.

Games2U was designed to provide children (and their parents) with an opportunity to do something truly unique and special during their birthday party without breaking the bank by reserving party venue space.

Furthermore, Stuart and David knew that bouncy castles and amateur magicians were no longer entertaining children.

Games2U founder entered Shark Tank in search of someone who could help them completely transform the party and event scene.

How Was The Shark Tank Pitch Of Games2U?

David and Stuart appeared on Shark Tank requesting an investment of $500,000 in exchange for a 10% equity in Games2U.

When the Pikoff brothers appeared on Shark Tank, Games2U grossed $3.5 million yearly but earned $125,000.

At its airing, the Games2U had sold 140 franchises in 28 states. A single franchisee pays $100,000 upfront plus a 6% royalty.

He informed the guest host Jeff Foxworthy that he would give a detailed breakdown of what a typical event would cost a customer. This was to demonstrate that each event would differ.

David told them an average event would cost around $300 to $400. This would equal about an hour and a half of entertainment for the customer.

David informed them that it would vary from company to company and that every event was different.

A team-building event for a large group of people could cost more than a five-year-old’s birthday party.

Foxworthy wanted to know how much a big company event would cost. David stated that a larger event would cost between $1,000 and $3,000.

David said that an average corporate event would cost around a few thousand dollars, although this amount could vary again.

Kevin interrupted to ask the company what it was worth and told them there was no way a company could be worth $5 million unless it had really impressive sales.

Stuart told them that the company is valued at around $3 million and that their plans include opening more franchises.

Stuart told Kevin the company was making pretty good money. The franchisees would get a 6% monthly royalty on their sales.

Stuart said the company made a profit of around $3 million last year and was on track to make close to $5 million by the end of 2009. Because they knew that, their evaluation of Games2U seemed fair.

David told Daymond that he wanted to purchase a stake in the company; however, they also wanted to use the games. They would purchase a stake in the company, but they would also own all of the games.

Stuart informed Daymond that he agreed they would receive patents as part of the deal but said he thought all their franchise locations would be the secret to their success.

Robert inquired if games2u.com also sold products to franchisees. Stuart stated that the sales were made purely from their customers. Stuart stated that each game they sold was their own.

Robert and Kevin wanted to know how this franchise system worked, and David walked them through things that involved them.

Interested potential franchisees would have to pay around $150,000 to get a game-changing license. Once they obtained a license, they would obtain supplies and a storefront.

There are many franchise options available, so the franchisees are granted an individual opportunity, which includes owning their vehicles, and much officially-branded equipment.

David explained that once a franchisee purchased a license, they would get many parts for free. After the purchase of the license, everything was left to the franchisees.

Games2U will still get a 6% royalty on all their sales up to a maximum of $1,000. Franchisees could earn $500 a month but still have to pay the company $1,000.

Kevin seemed satisfied with this explanation and decided to return and talk about the company.

Kevin was curious as to whether Games2U was profitable. David said the company earned approximately $125,000 from selling just over $3 million in merchandise last year.

The company has a very low-profit margin. Kevin was very upset, and his estimated profit was over five million dollars.

David and David tried to explain that, while the company wasn’t making much money, they were planning to build an infrastructure that could support an enterprise five to ten times the size of its current business.

They were ready and willing to grow the company to a much larger scale. Robert did not care about the low-profit margins and worried about the gross profit margins.

David explained that the angel investors they hired were also involved in the company. So, how did all of this add up?

David has mentioned that some of the money that Games2U earned began as angel investors.

Robert and Kevin began to express their concerns, saying that the company was not making nearly enough money to cover the money it was being evaluated for.

David Pikoff explains to them in no uncertain terms how Games2U managed to become one of the fastest growing franchise companies in the world in the year before, even though the economy was in such a rough spot.

Daymond refused to pay the men, and he did not like the way the men had been asking. Usually, when companies enter the IPO process looking for a strategic partner, they already have their finances sorted out.

He felt like a shark had just bought shares in a company, only to start working for them immediately.

Robert was sympathetic to the Pikoff brothers and said he understood that the economy had been tough in recent years.

I think Robert agreed that the company was not worth anything near five million. He claimed that, in pure money terms, the company was not worth even half that amount.

Daymond was frustrated by Games2U’s extremely high expectations, so he decided to drop out of the deal.

Barbara, who remained quiet during most of the pitch, decided to leave because she felt like the R&D that would be necessary to create new products would be too expensive.

Foxworthy was puzzled by the paradox of a company that became a tough company while many families were struggling to pay even $400 for a child’s birthday party.

Stuart agreed with him, saying poor parents would be more inclined to cut their spending if it meant giving their kids a great birthday party.

Robert respectfully disagreed with this approach. Jeff decided to leave the contest because he felt he would have to work long to get his money back.

Kevin stated that how they evaluated the company and asked investors to pay it was insulting.

Robert said that games2u would be unable to make any money if they did not make products themselves. Kevin agreed. He dropped out.

Kevin decided to make them an offer. He stated that he would pay them fifty thousand dollars plus interest.

Kevin offered the company $500,000 for them to retain 51% of it. The offer was very appealing. They cited their very high customer satisfaction rates and excellent sales numbers.

Stuart and David decided to have a conversation about what they found in the game. The couple, having left the meeting, mentioned that while they would love to have

Kevin assisted them in building their company, but they did not want to give him a majority stake in it. Kevin offered them $50,000 for 25 % of the company, which he refused.

They returned to the office and came up with a counter offer of $500,000 to receive 25% of the company. Kevin decided to decline. He felt as if his money just wasn’t there for him.

The brothers walked out of the fund without investing any money. But then, what happened? What happened after that? This is what the Pikoff brothers have been doing since 2016.

Likewise, O’Leary was not interested in that level of control and left. However, he did take a trip to the Ubot.

Stuart disagreed, suggesting that poorer families might be more willing to sacrifice spending elsewhere for a wonderful birthday celebration for their child. Robert disagreed politely.

Jeff opted to withdraw since he thought he would have to invest excessive time effectively recouping his investment.

Kevin stated that he felt utterly insulted by the appraisal and request. Robert stated that it would likely not earn additional revenue until Games2U expanded its product line. He withdrew. 

Kevin, on the other hand, decided to make them an offer. He offered them $500,000 in exchange for a 51% stake in the company.

The brothers immediately rejected the offer because of their excellent sales and customer satisfaction.

Stuart and David discussed the out-of-the-tank proposal. Kevin’s help establishing the company was wanted, but he was not given majority ownership.

They countered an offer of $500,000 for 25% of the company. Kevin almost immediately rejected this offer, claiming it wasn’t the right opportunity for him. The brothers left the tank without investing.

Final Deal: No deal between Games2U and Sharks.

What Happened To Games2U After Shark Tank?

Games2U has over 150 franchise locations in the United States, a master franchise location in Canada, and franchise locations in seven Middle Eastern nations since appearing on Shark Tank.

Games2U, located in Austin, Texas, is looking into franchising opportunities in Australia, South Africa, and Europe. Entrepreneur Magazine ranked them 24th on its Franchise 500 list in 2012.

Games2U has been lauded for its robust franchising organization, enabling the company to continue growing for years.

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The company’s website includes information about franchising and party booking.

Games2U parties are a ton of fun, according to friends and relatives who have hosted or attended them.

Games2U has more than 140 franchise locations and generates $9 million in annual revenue as of 2022.

Games2U Shark Tank Update

Stuart and David are still doing an excellent job growing their business from the ground up, even though they couldn’t secure a contract in the tank.

They remain the world’s largest source of mobile entertainment today, and their franchisee program continues to be massively successful.

Games2U Shark Tank Update

It’s no surprise that they have also spent considerable time designing some interesting new toys, including bumper balls (a variation of soccer where players stand inside an inflated hamster ball) and a candy hand cannon.

The company caters to various events, from birthday parties to business events and fundraisers.

They might not have landed the deal they wanted and might not have had the mentoring of a shark to assist them, but it still looks like these two still have a bright future ahead of them.

Games2U generates an annual income of $9 million as of 2022.

Is Games2U Still In Business?

Games2U continues to operate, with a headquarters in Austin, Texas, and an active website.

Games2U leads the market in this business strategy despite offering various games and activities.

The franchise system, which currently numbers approximately +-150, is at the heart of the economic concept.

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Games2U Owners in Canada, Central America, and the Middle East actively promote franchise opportunities in the United States and internationally.

Games2U also offers a start-up support package, including obtaining a vehicle, equipment, branding, and marketing.

What Is the Net Worth of Games2U?

The valuation of Games2U was $5 million when it appeared on Shark Tank. The net worth of Games2U is $9 million as of 2022.

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