(C-Note: Per the disclaimer at the top of
the show, the following are actual negotiations between entrepreneurs
and investor "Sharks". The Sharks are investing their own money at their
discretion. No offer is being made to, or solicited from, the viewing
audience. Please enjoy the show.)
One is a real estate magnate in New York
City. One sold his IT firm at the height of the dot-com bubble for $100
million. One turned a software company into a $3.7 billion transaction.
One is an infomercial pioneer worth billions. One founded a successful
clothing line that continues to rake in money every day.
They're not your ordinary average
businessmen. They are sharks. And this... is Shark Tank.
Based on the Japanese format "Money
Tigers" and perhaps well-known by its British sister "Dragons' Den", the
show will feature small business owners venture into the tank and make
their case for a cash offering for their ideas in exchange for a stake
in said ideas. If the Sharks hear an offer that they like, they'll fight
it out against each other for the best deal. In the end, if the sharks
make an offer, and the owner likes it, they'll strike a deal... but if
the owners pull out... or if all of the sharks pull out... they leave
with nothing. And in the great economic crisis since the Great
Depression, the Sharks are all that stand between your dream... and its
First into the Tank...
OWNER: Tod Wilson and Mr. Pieman;
PRODUCT: Mr. Tod's Pie Factory
ASKING: $460,000 for 10%
There's a demand for comfort food in
these hard times. They sell over 3000 pies daily, each one of them
handmade with love. But in the beginning, he made some bad business
deals which set him back a hot cent. He's on his third bank loan, so
that's no longer an option for him. Last year, he sold as a brand
wholesale $850,000 in pies. The problem is that he can't keep up with
demand. His sweet potato pie represents 94% of the wholesale and over
half of his total business. His business started too big too soon, and
seven years later, he has a successful wholesale business.
And McDonald's has been calling for
Robert likes the story, but he's out.
He's afraid that he's going to make the same mistake, cutting corners
and expanding too big. Kevin O. would want majority stake and would
"whack the stuffed pie guy, he's an expense." He would also limit to one
flavor, sweet potato pie. His sales would halve, but he would make a lot
more money. He's out. Kevin H. also thinks that Tod has overstated the
value of his business ($460K gets you 10%... that would mean that the
business is worth $4.6M), so he's out. Barbara asks Daymond to help her
out. She wants to go in for half for twice the equity, $230K for 20%.
Daymond... would need 50% of the company. He also wants to see orders
ACCEPTED: $460,000 for 50%
OWNER: Darrin Johnson
PRODUCT: Ionic Ear
ASKING: $1 million for 15%
The project: Bluetooth implants... into
your ear... via surgery.
And the Sharks are SOOOOOO out. Barbara:
"This is the weirdest damn thing I've ever heard."
OWNER: Kevin Flannery; Cary, NC
PRODUCT: WiSpots, "the future of waiting patiently"
ASKING: $1.2 million for 10%
He has funded his business through
mortgages on his home and has been forced to put it up because he can't
keep up with his payments. It's important to him to keep his family
safe. WiSpots is a patient interaction center that allows patients to
take one of five interactive tablets, check in, take surveys, surf the
web, and play games all for free. It also provides a revenue for the
doctor, coming from media buyers, pharmaceutical companies, and ad
buyers. The cost to install one of these babies: $9000, footed by the
Robert wonders if there could possibly be
another magical device that would allow end-users to check their e-mails
anywhere they would like to... Wow. He's some kind of sorcerer or
something. Kevin O thinks of his money as "soldiers". He send them out,
takes prisoners, and they come back with more. Flannery's army gets sent
out, and every soldier dies. He's out. Kevin H is not going to risk his
money just to look at ads. He's out. Barbara's also out when she says
that quitting takes more courage. Daymond is also out. Robert is
conflicted. He says that he has to save his money so he won't have to
put his family at risk. That said... he's out.
OWNER: Tiffany Krumins; Auburn, GA
PRODUCT: Emmy the Elephant
ASKING: $50,000 for 15%
She's a nanny with an idea brought about
by taking care of kids and now having one of her own. She worked with a
child who had Down Syndrome, and taking his medicine would turn him from
angel to devil in a matter of seconds. Enter Emmy, who dispenses the
medicine with a loving "open wide" and "good job!" She's done a patent
search, but currently has no patent. She wants to use the money to get a
patent and a working prototype.
Kevin O wonders how he can make money on
this. He can't see himself making money on something so little... He's
out. Robert thinks that she could've made the same pitch to a big
company and make the sale. Daymond says that it's a great idea, but it's
not a business. He's out. Kevin H. agrees. Barbara loves the idea and
Tiffany, but it's "too rich". She wants 55% for the money. That sort of
idea makes sense. Will Tiffany make the sale? The expertise is more than
the money to her so... she takes it.
ACCEPTED: $50,000 for 55%.
Finally into the Tank this evening is...
OWNER: Omar Solimon & Nick Friedman
PRODUCT: College Foxes Packing Boxes (a spinoff venture of their
already-successful "College Hunks Hauling Junk")
ASKING: $250,000 for 25%
Inc. has named Omar and Nick among the
top entrepreneurs under 30. Entrepreneur Magazine has named College
Hunks Hauling Junk a top 30 franchise. So the question remains... why
are they here? They netted $500,000 last year from the hunks, then
another $3 million.
Kevin O will not give money unless he's
already getting money for the Hunks. He wants 51% for $250K for the
whole package. It's the only offer that makes sense. The guys, though,
think differently as they regroup and come back with a new offer for the
$1 million for 10%.
To which Kevin O says.... "WHAT?! You
will never ever get to this side of the table doing a deal like that.
You know why you're wearing [pink] ties? You're pigs." They're being
greedy. He's out with these words: "Never insult money." Daymond says
that he feels uneasy with the girls and men in trenchcoats. He's out.
Kevin H. is valuing the business as it exists today, while they're
valuing the business in the future. He's out... and so is Barbara. That
leaves Robert. He has a problem with quarter-million on a risk. SO... he
makes an offer... He'll give the money for 50/50, but he wants 10% of
the Hunks has well. The other Sharks approve of the deal. Omar &
Nick.... pass on the offer.
"Bad mistake. I think we're all out."
One night and the sharks have pounced
over only two out of the five deals presented. They're all business,
literally. Back next week for more chum.
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