Create a bike that teaches kids how to ride without training wheels in a safe, enjoyable, and confidence-building manner. pitch: To teach their kids how to ride a bike, most parents choose pedaled bikes with training wheels. While training wheels may seem to be the easiest approach, they do not teach kids balance or proper bicycle steering. A bike with training wheels may even be dangerous since it can tip over if a child turns a corner too quickly or rides on uneven ground. In addition, by not teaching balance, when the training wheels come off a child has yet to learn the most important part of riding a bike. 

KaZAM bikes offer a quick, safe, and enjoyable alternative. They are peddle-less bikes that kids propel with their feet on the ground (like a skateboard, but they use both feet). When they build up enough momentum to coast, they pull their feet off the ground and rest them on a patented foot platform. The advantage is that the bike teaches balance and steering. When a child lifts his feet off the ground and places them on the foot platform, he must maintain proper balance and center of gravity, similar to riding a traditional bike. KaZAM bikes teach coordination and balance and prepare kids to ride peddled bikes safely. The KaZAM bike was created by friends John Lugo and Michael Wagner after Lugo watched his three-year-old try out a wooden European model several years ago. 

They are designed for three- to six-year-olds, which is the age most kids are when they learn to ride a bike. While there are other balance bikes on the market, the KaZAM is the only one with the patented foot rest designed to teach perfect balance. Other balance bikes have foot pegs or require kids to drag their feet on the ground. The KaZAM bike has several nice design features. The seat releases quickly, so it can be easily adjusted as a child grows. The handlebars adjust forward and backward as well as up and down. This feature allows a smaller child to better reach the handlebars from a seated position. 

The bike has a classy look and is available in several colors. The smooth tire tread and steel spokes give the bike a smooth and fast ride. On May 9, 2013, Mary Beth Lugo (co-creator John Lugo’s wife) pitched KaZAM on Shark tank (Season 4, Episode 424). The entertaining episode ended with deals from sharks Mark Cuban and Barbara Corcoran. KaZAM is now branded as a Mark Cuban company. KaZAM bikes are sold online and in a growing number of bike shops and stores. The company has received a number of recognitions and awards, including the national Parent Center Seal of Approval and The Oppenheim Toy Portfolio gold Seal Award.

1. Based on the material covered in this chapter, what questions would you ask the firm’s founders before making your funding decision? What answers would satisfy you?

2. If you had to make your decision on just the information provided in the pitch and on the company’s website, would you fund this company? Why or why not?

Answer rating: 100% (QA)

1With the thought as a financial speculator that issues of the organization is sett... View the full answer