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Previous Episodes January 8 |
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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 2.2 Dreams... You have them. Five venture capitalists want to fund them. But you're going to have to prove to them that you are worth their time AND money. Time to reopen the Tank... OWNER: Nate Berkopec; New York City Nate's company wants to be ethically conscious and make the world a little bit better. His target audience: 18-to-24-year-olds who want to make the world a better place. He has the drive, but he doesn't have the capital. Will that change after tonight? Environmentally friendly clothing is bland and expensive. The Factionist wants to change that. His shirts have things like "Buy Fair Trade" and "Recycle" and "Volunteer" and "If You Don't, Who Will", and "My Religion Is To Do Good". He says that it's a movement. So far, he's sold $3000 just getting started. There's no business right now, only silk-screening graphics on organic shirts. And they're not even unique. And there's no real branding on the shirt. Robert says that there are millions of people who have all of what Nate has, but they have more of it. What Nate says they don't have is "authenticity". Kevin O. is the first one out. The other Kevin is out due to no track record on sales. Robert says he's got an incredible amount of passion... but he has to have real data, and $3000 in sales on silk-screening is "ludicrous". He and Barbara are out. That leaves Daymond, who knows a little bit about T-shirts. And he's afraid he's out. Call it a learning experience. You can have the drive and it can get you places, but it's all about the money, all of the time. OWNER: Anthony & Tina Calvert; San
Diego Anthony is a deputy sheriff for the county who got the idea when he was injured as part of SWAT. He and his wife have found that there's a huge demand for the product, but there's no capital. So what's the product? A face-down tanning/massage pillow with... pockets! He's sold short of 6000 units for the last two years... Each one is $29.95. They cost $7 to make. He's got catalog distribution. He's got orders that he can't fill. But back to the numbers. $250,000 for a third of the company. He made about $21,000 last year. There's a bit of a disconnect. The numbers are small for the resources. He believes that with the proper know how, this will take off. Robert puts in a reality check. All this is potential. He sums up the value of the company as... $100,000. It's a good product, but the Calverts are completely overvaluing it. So for that reason, Kevin O is out. Kevin H says that it's both regional and seasonal, in that it is more of a beach product. He's out. Daymond likes the product... and he can make the Calverts so damn rich on this. BUT he made a tactical error in the evaluation. He's out. Barbara's out for the same reason. That leaves Robert. He suggests a small loan for $50,000 or $100,000, but all of the Sharks are out. I'm no venture capitalist, but I can tell you ... anyone can see that this is a good product, but Anthony put a huge price tag on it, not taking into account any of the product that they moved. So if you're going to go into the Tank... make sure you undervalue the company, not overvalue it. REVISIT: Body Jac Kevin H. and Barbara made an offer to Cactus Jack for his sit-up machine, the Body Jac, with one contingency... that he TRY the machine out to lose 30. Some time later... he arrives in Barbara's office, which Kevin has equipped with a scale. He's at 275. He needs to be at 245, or the deal is off. The scale says... 243! That's a done deal, and it has Kiana Tom to go with it. OWNER: Kimberly & Matthew Foley;
Hawthorne, NJ Kids shop for the ones they love, and they learn about thinking of others. In short, it's Tiny Town for the tiny set. Wee Can Shop is a family business, owned by the two siblings. The locals love their idea. Every year, they've increased income 100%, with $13,000 coming in last year. Robert doesn't think it's enough to earn a living. At the start, they put in $120,000 from friends and family, small loans mostly. She can have all the passion and all the tears in the world, but the fact remains that they're not making a profit. Kevin O says that there's no merit in a second store until the first store makes money. "There's nothing more evil than a business that doesn't create a profit. And the only way to fight evil is with evil. You have to shut it down." He's out. And he's taking Barbara with him. Kevin H says his son would probably love the shop, but he's out. Daymond says that he's out, but they have a chance to begin again wisely. Robert says that there's no data to support this business... All of the Sharks are out. The data is perhaps telling her to change direction. Kevin O says that they've got to put a timeline on this. OWNER: Tim Stansbury & Erin Whalen;
Texas Tim & Erin are recreational cyclists. They got the idea for their product on the road when Erin got a flat tire. It's not just for cyclists, but for everyone. So what is it? It's a portable cleaning product... a wet-nap, if you will. They utilize a natural non-toxic citrus derivative. The ingredient: citrus oils. It can clean permanent marker, crayon, paint, and, oh yeah, grease. Unfortunately, there's no patent. They're a brand new company AND they have to put the formulas out there. They want to get into the public mindviews first. But the Sharks like the trademarked logo. That logo has translated into $7400 gross revenue. The bike shops they sell to reorder. Tim has a solid business background. Daymond's out. It's not a business for him, but he loves the presentation. O'Leary has a thing about lack of proprietary content. The only thing that's unique is the logo. He's out on that. Kevin H doesn't think it's unique enough in the market. He's out. Barbara doesn't think that she's gotten her hands dirty enough to be in. Robert... looks like he's about to throw up. In the end... ACCEPTED: The... HOLD ON. Barbara wants back in. 50/50 deal between Robert and her... So... ACCEPTED: Tim & Erin's offer of $40K for a 40% stake. And remember... don't be afraid to play dirty. We'll play some more next time. To see this episode in its entirety, go to www.abc.com/primetime/sharktank. |
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