The rainy season in Vietnam often brings fears of flooding for many vehicle owners. Heavy rains, high tides, and storms can cause severe water damage to cars, leading to costly repairs and a significant decrease in the vehicle’s value.
Covo, a startup specializing in car flood protection, aims to revolutionize how people protect their valuable assets. Covo offers an innovative solution to this perennial problem.
From Idea to Innovation: Covo’s “Floatation Bag” for Cars
Ha Phuoc Thanh, co-founder and CEO of Covo, conceived the idea while living in the US. He witnessed his friends’ helplessness as their expensive cars were inundated during floods. This sparked the inspiration to create a proactive solution.
“We wanted to offer a product that not only shields cars from floodwaters but also enables them to float with the rising water level,” shared Thanh.
The Covo flood protection cover is designed as a “floatation bag” that envelops the entire vehicle. As the water level rises, the cover forms a buoyant barrier, preventing the car from being submerged. Remarkably, the startup’s tests demonstrated that the cover could support a Mitsubishi Triton weighing 1.8 tons.
The founder emphasized: “We use lightweight, durable materials, and we are in the process of patenting our design to ensure exclusivity.” At the time of their pitch on Shark Tank Vietnam Season 4 in 2021, the price ranged from VND 4.2 million to VND 5.3 million, depending on the vehicle size. Despite having only sold 9 units at that point, the product’s market potential caught the investors’ attention.
During the Shark Tank appearance, Ha Phuoc Thanh sought VND 1 billion for a 10% stake in the company. Although the revenue was insignificant, the unique concept sparked intense negotiations among the “sharks.”
Shark Do Lien made the first offer of VND 1 billion for a 45% stake, highlighting her strengths in insurance distribution. Shark Nguyen Xuan Phu recognized the product’s commercialization potential and proposed VND 1 billion for a 25% stake.
Shark Nguyen Thanh Viet, impressed by the innovation, offered words of encouragement: “I admire your creativity in coming up with ideas that even we sharks might not have thought of. In 5-10 years, you could be sitting here as a shark yourself.”
Shark Pham Thanh Hung suggested VND 1 billion for a 10% stake and requested a royalty fee of VND 500,000 per product for the first 10,000 units sold.
The most remarkable offer came from Shark Nguyen Hoa Binh: VND 1 billion with 0% equity in exchange for a royalty fee of VND 500,000 per product until a profit of VND 5 billion was achieved, after which the fee would be reduced to VND 250,000. “I am willing to be your lifelong capital partner,” he asserted.
After careful consideration, Ha Phuoc Thanh sealed the deal with Shark Hung and invited Shark Lien to join forces, aiming to expand the business model of combining insurance with proactive car protection solutions.
Post-Shark Tank Challenges and Opportunities
Three years after the investment, there has been no official update on the amount of capital injected by the Sharks. However, Covo continues to expand its operations. In October 2022, the startup announced its official dealerships in Japan and Australia, targeting markets prone to natural disasters.
Following Typhoon No. 3 in early September 2024, Covo’s fan page notified customers of an overwhelming surge in orders. Nevertheless, the road ahead remains challenging. With a price range of VND 4-5 million, many average customers hesitate to invest in the cover, opting instead for traditional insurance. Additionally, the reliance on insurance as a passive protection measure makes the concept of proactive asset protection relatively novel.
Covo has not only introduced a flood protection cover but has also pioneered a new approach to safeguarding assets. From its inception in the US, the startup is now taking its first steps towards establishing a niche market in Vietnam and expanding globally.
If successful, Covo could become an integral part of a personal asset protection ecosystem, where insurance and technology work hand in hand to mitigate risks associated with increasingly complex natural disasters.
“Turning Lead into Gold: The Power of Innovative Business Models”
“There are countless startups with brilliant ideas, exceptional capabilities, and passionate founders. However, if their creations are inefficient and ineffective, they will struggle to secure funding and succeed in the competitive business landscape.”
“Staying Local: Shark Phi Vân’s 3 Essential Lessons for Franchise Success”
In the latest episode of Shark Tank, Shark Nguyen Phi Van, a franchise expert, shared her insights on three key factors that contribute to the success of Vietnamese startups in the franchise business model. With her wealth of experience, Shark Van dived into the strategies that aspiring entrepreneurs can implement to make their mark in this exciting industry.
The Birth of a New Investment Powerhouse: VinGroup Launches a $150 Million Venture Fund, Led by the Renowned Investment Strategist
This technology fund is proudly backed by billionaire Pham Nhat Vuong and the Vingroup conglomerate.
“A Daring Venture: The Audacious Quest for a Luxurious Fish Sauce”
“The enigmatic French uncle is poised to unveil the rationale behind seeking a substantial investment of half a million dollars for a 12.5% stake in his burgeoning enterprise. With an air of confidence, he readies himself to address the curious onlookers, armed with a persuasive narrative that promises to elucidate the strategic vision behind this audacious financial maneuver.”
The Power of Persuasion: Unveiling the Art of Captivating Investors
—
Miss Thao Nhi Le, also known as the founder of the niche perfume brand Nimai, left the 5 Sharks in awe during her pitch. Nimai, a brand with a unique and rare offering, is set to launch in Vietnam soon. The fragrances are crafted in France, with a limited-edition range, each with its own distinctive scent.
