Games2U Shark Tank Update

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

A segment about Games2U appeared on Shark Tank in season 2, episode 206 on April 29, 2011, and episode 4, episode 405, had an update segment.

Mostly known for mobile video game theaters, 4D rides, hamster balls, and laser tag in the form of a large trailer or truck for birthday parties, this organization specializes in providing mobile video games, 4D rides, hamster balls, and laser tag.

It’s like a portable arcade. Among the famous objects that this company is famous for is the large “Ubot” that can be entered and driven. You can play at Games2U, whatever your age is.

What Is Games2U?

Games2U’s mobile entertainment service provides a truck full of fun for your child’s birthday, corporate event, or charity fundraiser, complete with a truck full of games and smiling coaches. 

There is a mobile arcade, a movie theater, a video game truck, among other exciting things to do here.

Games2U After Shark Tank

Mobile entertainment company Games2U delivers games and activities to your doorstep, including 4D Ride Experiences, Laser Tag, and more.

It has everything from hamster ball racing to rock wall climbing to laser tag, and don’t forget the huge waterslide. 

Over two dozen types of games and activities are available through this organization, which caters to all ages.

Company NameGames2U
EntrepreneurDavid Pikoff and Stuart Pikoff
ProductOn-Site Games Trucks And Entertainment Services That Bring The Games To You
Investment Asking For$500,000 For 10% stake in Games2U
Final DealNo Deal
SharkNo Shark
Episode Season 2 Episode 7
Business StatusIn Business
WebsiteVisit Website

Who Is The Founder Of Games2U?

David and Stuart Pikoff founded Games2U in 2006. Stuart worked as a real estate director after graduating from Arizona State University.

He continues to serve as CEO of Games2U. David graduated from St. Edwards University with a degree in business administration. 

It appears that he shares his brother’s enthusiasm for the construction and development of the real estate. He also continues to serve as a director of the business.

The process of planning a birthday party for your child can be challenging and time-consuming, but it’s not something that has changed much over time.

Children used to have entertainers such as clowns, magicians, and petting zoos at their birthday parties, but now they are more likely to play video games and engage in other outdoor activities.

They decided to establish a company that would deliver these activities to parents’ homes to increase accessibility.

It was initially planned to offer the business as a franchise opportunity. Currently, 140 franchises are active across 28 states and generate $3.5 million in annual sales. Games2U then began looking for new investors to secure additional funding.

Games2U Before Shark Tank

The world in which we live is constantly evolving. Today’s children live in a dramatically different world from the childhoods of people born decades ago. However, some things haven’t changed.

David and Stuart Pikoff realized that nothing had changed when asked to organize a child’s birthday party. There were still magic shows, bounce houses, and petting zoos at children’s birthday parties.

The brothers realized that little had changed when party planning as they grew older. It would be necessary to rent space from a business to celebrate a “contemporary” birthday.

Parties on your lawn were often more time-consuming and expensive than holding them on your lawn. This prompted the entrepreneurs to take action.

Games2U calls it mobile entertainment. The company offers a wide range of fundamentally specialized vehicles. You can choose from various games and activities.

You can find 4D cinemas and video game arcades all over the country. Furthermore, they offer products that can be disassembled and used for various outdoor activities.

Games2U enables kids (and their parents) to have a memorable birthday party without breaking the bank by reserving a space at an establishment.

David and Stuart were also aware that bouncy castles and amateur magicians no longer wowed the bulk of children. 

They walked into the tank, hoping to find someone who could assist them in entirely altering the atmosphere of the party or event.

How Was The Shark Tank Pitch Of Games2U?

David and Stuart made a substantial request when they entered the tank. They could buy a 10% stake in their company for $50,000, which would make the value of their company approximately $5,000,000.

Jeff Foxworthy, a guest shark, began by asking how much an event costs on average. 

David says an hour and a half of entertainment costs an average of $300 to $400. However, he did say that this amount fluctuated and that each occurrence was unique. 

Foxworthy also asked about the exact price of a corporate event, which may be more expensive than a child’s birthday party.

According to David, a single event at a company costs about $3,000, but this might vary widely. Kevin insisted Games2U couldn’t be worth 5 million dollars unless they had an excellent sales record.

Their sales were remarkable, according to Stuart. He estimated that the company produced $3.5 million in revenue last year and was on course to make $5 million this year.

Their assessment seemed fairly balanced, given the information at their disposal. Daymond inquired about the specifics of the investment.

Do they intend to buy the patents for the products, or just a stake in the company?

Stuart believed that Games2U’s patents were the key to their success, in addition to their franchised locations. Stuart confirmed this to him.

Robert wanted to know if franchise sales were included. Stuart replied that franchise sales were not included. The franchise idea was explained to Robert and Kevin by David since they were interested in learning more.

A potential franchisee needs about $150,000 to obtain a license. Their vehicle would be adorned with a lot of official gear.

Everything after that was in the hands of the franchisee. Games2U retained a 6% monthly royalty with a minimum of $1,000. Franchisees must pay the firm $1,000 even if they only make $500 per month.

Kevin shifted the subject back to the company’s mission as soon as he heard this explanation. He inquired about the profitability of Games2U.

David reports that sales were little more than $3 million in the prior year. Kevin seemed irritated by the $5 million valuations and the poor profit margins at this point.

The brothers insisted that the company was building a foundation that could support a corporation ten times its size, even though they weren’t making much money yet.

They were all eager to grow when the time came. Robert was more worried about profitability margins than he was about the company’s net profit.

What’s the total here? A portion of the company’s early profits came from a group of angel investors, David explained.

Kevin and Robert started expressing their displeasure, claiming that its appraisal was flawed.

David Pikoff told them that the company had grown rapidly despite the previous year’s poor economy.

When Daymond heard their request, he expressed his displeasure. Typically, organizations seeking a strategic partner already have their finances in order before entering a tank.

It seemed to him that Games2U had bought into a firm and then promptly hired someone to work for them. That the economy had been difficult in recent years was something Robert could sympathize with, he said.

However, he did say that the enterprise was only worth about $5 million in purely monetary terms. A frustrated Daymond chose to withdraw from consideration after the company’s greedy appraisal.

Barbara, who had been relatively quiet throughout the pitch, announced her resignation in the middle of it due to her belief that developing new products would incur a prohibitive expense.

The contradiction of a company that grew in a challenging industry despite the reality that many families couldn’t afford even $400 to have a kid’s birthday party puzzled Jeff Foxworthy, even though he wasn’t quitting.

Stuart thought it would be more cost-effective for poorer families to cut out other expenses to provide their children with a wonderful birthday celebration. Robert politely disagreed.

Jeff opted out of the program because it would take him a long time to recoup his investment. 

Kevin expressed his displeasure with the assessment and the request, calling them “totally offensive.”

Robert believes that Games2U will never make any more money unless they expand their product line. He quit. Meanwhile, Kevin made an offer to them.

He offered them $500,000 in cash in exchange for 51% of the company. They rejected the offer, citing their high customer satisfaction and sales rates as reasons for their rejection.

The two took a moment to consider the offer that had just been made. They said they couldn’t give Kevin majority ownership of the company when they returned, despite their desire to work with him.

They returned with a counteroffer for Kevin, which was $500,000 for 25% of the company. Kevin declined the offer almost immediately, saying it didn’t interest him. 

Despite their best efforts, they could not take anything from the tank. How did things turn out after that? A lot has happened in 2016 concerning the Pikoff brothers.

What Happened To Games2U After Shark Tank?

More than 150 Games2U franchises in the United States, a Canadian master franchise, and seven additional Middle Eastern territories since their Shark Tank appearance.

The company’s headquarters are in Austin, Texas, but it also offers franchises in Australia, South Africa, and Europe, according to Entrepreneur Magazine’s 2012 Franchise 500 ranking.

Games2U’s strong franchise structure has led many to hail them as a company that will thrive for years to come. The company’s website contains information about franchising and party rentals.

The friends and family who have hosted and attended Games2U parties say it is a lot of fun.

The company has over 140 franchisees and $9 million in income annually as of January 2022.

Games2U Shark Tank Update

David and Stuart are still building their business from the ground up even though they couldn’t get a deal in the tank. 

They are still the world’s leading mobile entertainment provider, and their franchisee program is extremely successful.

Games2U After Shark Tank

As planned, this company has also developed bumper balls (a soccer game in which players stand inside of inflatable hamster balls) and a candy hand cannon.

The venue caters to several events, including birthdays, business meetings, and fundraisers.

Even though they didn’t get the deal they wanted and didn’t have the supervision of a shark to guide them along the way, there is still hope for these two.

Is Games2U Still In Business?

This company is still in operation, with an active website and a physical location in Austin, Texas. The company’s games and activities have evolved constantly, but they remain the leader in this business model.

Around 150 franchisees are operating under the business model at the moment. While exploring other markets, they actively promote franchise opportunities in the United States and abroad, with owners in Canada, Central America, and the Middle East.

The company also provides a start-up package consisting of a car, equipment, branding, and marketing assistance to help new companies get off the ground.