|
|
GSNN
Primes |
|
Previous Episodes August 9 August 16 August 23 August 30 September 6 September 13 September 29 |
||||||||||||||||||
|
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
|
||||||||||||||||||
|
Copyright Statement Powered by 1&1 Internet |
|
Episode 8 Five well-stacked sharks are the only thing separating four budding entrepreneurs from their dreams. The first... OWNER: Sean Conway & DJ Stephan;
Tucson, AZ Sean was diagnosed with ADHD. He and DJ have created Notehall to help overachievers make money and underachievers get caught up in their classes, but they need the money and backing of the Sharks to take it worldwide. They pilot launched at Kansas and Arizona, and are hoping to take it nationwide. They offer a 100% money back guarantee if customers are not satisfied. Actual transaction price is around $5. Note takers make 40% on commission. There are other players in the space, but they don't have the lifeblood. Kevin H is out, it's too much of a startup. Daymond's out as well. It's not his forte. Robert & O'Leary think that $900,000 is a little much in terms of value. Sean says that they'll make $24 million in four years AND he's willing to bet half his company on it. O'Leary will give the money for 51%. Barbara undercuts him by 50%. O'Leary decides to entertain a counter.... 15% with an insurance clause: $1 million in 24 months or he'll give over the rest of his company. Kevin counters back with 35%. Barbara undercuts with 25%. Robert counters with $115,000 for 35%. Kevin will do the same deal he did. So will experience or value win out in this deal? We'll find out in a moment, but Barbara decides that she wants in... and in two years, they can buy her out if they wanted. To counter, Robert and Kevin do the same deal with added experience. ACCEPTED: Barbara's offer of $90,000 for 25% with a two-year buyout clause Not only is she happy to beat the experienced Sharks at their own game, she actually prompts Kevin to walk out of the tank... to talk to the guys. "I don't know who the Shark is here... I think it's you. That NEVER happens to me." REVISIT: Coverplay After going into the Shark Tank and leaving with $350,000, the two inventors of this product took their sales to conventions all over the US. Soon, Coverplay will be available at Babies "R" Us AND they're closing a deal with one of the largest hotel chains in the nation. OWNER: Lisa Lloyd; Tucson, AZ She lives in a very full house. Her house is in danger of foreclosure, and her entire family is in desperate need of this deal to go down. She could lose her home if this deal doesn't close. So what's a Treasure Chest Pet? They're organizers that look like stuffies. She's selling them in 200 stores right now. Over the last year, she's sold $100,000 of the stuff. She's not gone to any of the box retailers because she's undercapitalized. She's got 1100 pieces that are already sold. O'Leary says that if he invested in this market again, he'd wake up with nightmares. He's out. Harrington says that the age and seasonality of the product are two strikes. Barbara would invest only $50,000... but for 50%. Daymond offers all the manufacturing and distribution, but he needs 60%. He invites Barbara into said deal. Robert thinks that this is crap.... and offers the money for no equity. All this is is a standard loan rate. Daymond is offering the "whole back office". This would be the best way to go... IF she only needed the money. ACCEPTED: Daymond & Barbara's offer of $150,000 for 60% OWNER: Edwin Heaven Throx is the cure for the missing sock, basically, socks sold in threes. His sales: $38,000 for the year, predicting 80,000 units in 2010. But the reality is that he's got no shares in this markets, and you can't patent a package of three socks. Put that together, and all of the Sharks go out. OWNER: Danon Beres; Huntington Beach,
CA Danon and his family design belts and belt buckles. The company has sold inventory to many celebrities and many stores. With the right investments, Washed Up Hollywood could be huge. The target markets: young males and females. They're in Nordstrom and in a chain in Canada. The retail price points are from $55 to $99. He wanted to make a product that will appeal to the price points of young people. And he's a CEO designer. That's a rare breed. The question: is his company worth $2 million? Robert doesn't like the value. He would value at $600,000 to $700,000. He's got a real business... but he's a pig. Daymond? "That price is outrageous!" He also doesn't believe that he sold that many units. Daymond calls him a liar. Kevin calls him a pig. So he's a lying pig. But apparently a talented lying pig, so what's a shark to do? In the end, Danon believes that the money will take him to the level he wants to go. Robert can't give him $500,000 for anything. He and Kevin H are out due to the valuation. Barbara falls out as well, leaving O'Leary and Daymond. "You wasted your own time, but worse... you wasted my time." That leaves only Daymond. He worked so hard to get here, but he destroyed the opportunity with that one number. And with that, all the Sharks are out. And all the Sharks are left with are buckles... from a dead man. To see this episode in its entirety, go to www.abc.com/primetime/sharktank. |
|