Another day, another five
entrepreneurs.... The first...
OWNER: Kwame Kuadey; Ellicott City, MD
PRODUCT: Gift Card Rescue
OFFER: $150K for a 30% stake
Comiung to America from Ghana was a big
opportunity for him. Recently, though, his position as a management
consultant was discontinued. He was devastated because of his new
business. What he's most worried about, though, is supporting his family
with this business. To that end, he turns to the Sharks for an
Each year, 10 percent of gift cards in
the US went unused, leaving $8 billion wasted. The solution: turn
unwanted gift cards into cash via Paypal accounts. They then turn around
and sell the gift cards on their website for a discount. They're on
track to sell $120,000 this year. So far, the profit margin is 25%,
So who capitalizes? Kevin O determines
that there are a few retailers that they will reject. Kwame calculates
that the business is worth $500,000 because of sales potential, a
partnership with Amazon.com, and just his gut instinct.
Daymond thinks that it's a good idea, but
it's not his idea, so he's out. Barbara, same time. Kevin H isn't ready
to take the risk either. Kevin O counters $150,000 for half due to it
being a start up. Kwame counters with $150,000 for 40%. Kevin O will not
change his offer. Robert will sweeten the deal with a partnership with
Kevin O... $200,000 for half.
ACCEPTED: Kevin O & Robert's offer of
OWNER: Gina Cotroneo; Dallas
PRODUCT: Soul's Calling
OFFER: $150K for a 25% stake
The company exists to remind people to be
happy, which is good, right? Her products promote happiness and positive
In 1997, she survived an attack in her
apartment. What this one person did to her affected millions with
negativity. She thought that she could do the same with a positive
message. She has an umbrella that says "Let your smile be sunshine" and
a bracelet that says "We are all connected." Her sales are $29,000
over the last two years. But she believes that this is part of a
personal mission, yet sees the business aspect of this.
Robert says that the numbers are small.
Kevin figures the company is worth $600,000... and that money has no
soul. One of these is true. Here's a hint. "Here's what your business is
worth: zero. That's because it doesn't make any money." He's out.
Daymond says that she has a calling, but not as a business so he and
Kevin H are both out. Barbara sees her more of a minister of good will.
She's out. Robert thinks that it is a serious business. But the business
is telling her something. She's not adapting, and therefore, all of the
Sharks are out.
OWNER: Dan Claffey
PRODUCT: Coffee Brand Gifts
OFFER: $300K for a 40% stake
He went to a trade show and came back
with an idea... coffee-themed gifts. Puzzles, books, patents for
teddy-bears that say "Cappuccino". But Dan has no orders. "I give you
$300,000. We make a lot of bears, a lot of games, tchotchke stuff. It
doesn't sell. Then I kill you." Oh, Kevin. Dan has a $400,000 stake into
But he has no mark, even with all of the
research behind him. He didn't want to send for orders and promise
delivery until he got the capital. That's called thievery. Rebuttal from
the balding Canadian in the middle. "What you just said was
And one by one, the Sharks don't bite.
The issue, no orders and no sales.
OWNER: Paul Watts; Sacramento
PRODUCT: Graffiti Removal Services
OFFER: $350K for a 15% stake
Graffiti is a huge issue. Paul used to
work for the city and used to see it. Now he's gone mobile trying to get
rid of tags all over his city. Paul wants to franchise his service, of
which there's a huge market for, all over the nation.
His products are non-toxic and
non-damaging. The business is the system, however. The products cannot
be gotten in the retail market without the GRS franchises. The
company-owned franchise net $75,000 last year. A startup: $60,000.
Kevin O does the math to the tune of over
$2 million... and he hasn't sold one franchise. Barbara is out when she
decides that bureaucratic red tape is not worth her time. Kevin H says
that his success is based on franchise fees. He doesn't think it's going
to work like that. He's out. Daymond says that he has nothing
proprietary. He's out. Robert will give him the money... but he wants
75%. Kevin O wants in on that action.
"Thank you, but no." WHAT?! Robert tries
to change his mind, while Kevin just says "You're dead to me, you're
dead to me, you're dead to me."
The deal's dead.
OWNER: Amy Feldman & Allison Costa
OFFER: $350K for a 15% stake
Play yards get dirty. A lot. As Amy and
Allison demonstrate. The solution: the first and only slip cover for
play yards. On one end, there's a retail market. On the other hand,
hospitality services can buy them AND use them as retail outlets. The
number: $200,000 so far, including orders from Marriott, Carnival,
Wyndham, et al.
They have distribution, sales, and a
patent, so why do they need the money? "No one knows we exist!" Breaking
down the $350K into employees and sales reps. Kevin H says that he can't
afford something that's too niche, so he's out. Barbara offers the money
only as seed money and only for 40%. Daymond offers the money from
manufacturing... for 65%.
Time for a huddle. The Sharks think that
it's a good patent and that Daymond knows the business. Amy & Allison
decide to negotiate for the patent instead. Robert... decides to team
with Daymond for $500,000 for 65%.
Then comes the bombshell... the patent is
not a part of the company. All of the Sharks retract their offers.
Wait. It gets better. Sixty percent is
owned by Allison, but a small fraction... owned by Allison's ex-husband.
She'll throw the patent into the package.
Kevin O then goes in with Daymond & Robert for 51% for $350,000.
Barbara's offer of the money for 40% still stands. She relates having a
majority partner leaving her high and dry.
In the end, though...
ACCEPTED: Barbara's offer of 40% for
And with that, we close up shop for
another week. Come back next week or you're dead to Kevin O'Leary.
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