Five well-stacked sharks are the only thing separating four budding
entrepreneurs from their dreams.
OWNER: Sean Conway & DJ Stephan;
OFFER: $90K for a 10% stake
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
So will experience or value win out in
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
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."
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
PRODUCT: Treasure Chest Pets
OFFER: $150K for a 20% stake
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
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
OWNER: Edwin Heaven
OFFER: $50K for a 25% stake
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,
PRODUCT: Washed Up Hollywood
OFFER: $500K for a 25% stake
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
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.
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