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GSNN
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Previous Episodes August 9 August 16 August 23 August 30 |
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You have the dream. They have the money. But do you have what it takes to swim with five of the business world's elite sharks? Recaps by Chico Alexander, GSNN
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Episode 5 Another week, another five entrepreneurs, looking to the Sharks to make their dream come true. OWNER: Cactus Jack & Kelly Barringer;
Iowa Cactus Jack has lived 65 years... no job... just creating stuff to bring to market. He made fishing lures, arm wrestling machines, and cleaning products. He's made millions and lost millions. He's taken his risks and he doesn't want to go bankrupt again. Jack's idea... it's like an ab machine for push-ups. He's patented all of his creations, It'll come out $89 to $129, but nothing's really special about this. Kevin O says you have to have skin in the game. Jack has all the upside, and Kevin has all the risks. He's out. Robert says it doesn't add up, due to the fact that he supposedly has millions of them. Kevin H is wrestling with this deals. He can give up $90,000, but he's going to have to convince another Shark to join him. Barbara joins up, but with a caveat... Barbara wants Cactus Jack to lose 30 pounds on this machine. Wait... Daymond wants in. He's interested in the company. He'll give up the money, but he wants half of everything. The difference: he doesn't have to lose anything.... End result... "Cactus Jack, he's your man, if he can't do it... no one can!" ACCEPTED: Kevin H & Barbara's offer of $180,000 for 50% AND he has to lose 30 lbs. OWNER: Irina Blok Face-Blok is a collection of fashionable surgical masks.. We have a beard, a pig, and a skull. Barbara passes. Irina says that the American Pediatric Board thinks that it's genius. It's been on Fox News, Sydney Morning Herald, and it's given her close to a million hits on her site. Probably because of swine flu. Daymond can't make this happen on the street, because it's not normally done in the US. Kevin H says that it's a novelty item. Robert tells her not to quit her day job. It's not an investable object, so Kevin O rounds it out. OWNER: Jeff Cohen; Stevenson Ranch, CA Jeff's been a diabetic for 15 years, and he finds it impossible to find a snack food that tastes good and won't spike his sugar. He and his family have come up with a snack that can be enjoyed by anyone. His slogan: "Energy bars for athletes, diabetics & YOU!" The Sharks like the bars. Their success has been from Whole Foods in the Southern California markets. Robert likes the approach. Step three... roll it out nationally. That requires cash. He had a personal bankruptcy because of his own business. Kevin O says that his business is not worth $700,000. It's worth at most $200,000. Kevin H says that it's a "me-too" business. Everyone else is doing it, so he sees no reason why he should. Daymond.... didn't like the taste, so he's out. Barbara doesn't think she'll see a return on her investment. Kevin O says that no bank is going to loan him any money, and he'll have to ask for more and more. "To me, you're radioactive. I'm out." Only because he hasn't been able to focus on his primary right now, Whole Foods, Robert decides that he's out. OWNER: Rikki Farrar As a funeral concierge service, they write the eulogy, officiate the service, and handle post-funeral gathering details. They offer... "celebration of life party planning." So far, they made $11,000 last year. She got the idea from her mother, who passed on last year. Kevin O says there is never a better time to sell than when the family is dealing with grief. Her sales are so low are because a) she has no funeral homes, and b) no exposure. She gets business from her therapy dog at hospice. Robert says, in no uncertain terms, that she's taking advantage of her grief. He doesn't want to be in business with her because she's slick. Barbara says that it's a bit too creepy. If her mother was alive, she wouldn't be in business. Daymond says that the bottom line is money. He doesn't see money or profit. He's out. Kevin H looks at it like an ambulance chasing business. Kevin O likes death, but he doesn't see her making any money in it. So for that reason... and that reason ONLY... he's out Time for the big deal of the night. OWNER: Rodolfo & Alexis Saccoman;
Brazil by way of San Francisco One is a therapist, and one is an online marketer. They started their business to help people. Their father wanted them to learn English so that they could eventually find their way to the US and to the American Dream. They are offering an online-therapy tool, subscription based. Last year, they made $4000 off of 1120 members who signed up for a free trial, and ten percent of those folks became paying customers. The first part of the product is a blog essentially. The second is a progress analysis. It allows the user to track progress of anything. Barbara likes the two, but she doesn't like the business idea. So she's out. Kevin H also bows out. The brothers are connected with insurance companies like Aetna. Better scenario sees that insurance pay for that. Kevin O offers $80,000 for 50%. The company has no value unless the Aetna deal goes through, says Robert. Daymond wants in on this. Robert also wants in on this... for 51%. Along with the money, they also need guidance. The brothers decide to take a moment (trying to be realistic with 49%), and while they do that, Kevin asks Robert... "What do we need Daymond for?" Brothers come back with a counter, $80,000 for 49%. Daymond decides to break off and form a separate deal... $120,000 for 50/50. Robert says that only he and Kevin O have had the internet savvy for hundreds of millions. Bottom line... The brothers need expertise more than money. Robert thinks that the offer is pretty simple... ACCEPTED: Robert & Kevin O's offer of $80,000 for 51%. Fate intervened, and the American Dream is now a reality. Five more will try their hand next time. To see this episode in its entirety, go to www.abc.com/primetime/sharktank. |
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