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Shark Tank season 4, episode 4 marked Lori’s first round back in the tank as a full-time Shark this season, and the previews let fans know they were in for a great episode. With Barbara out and Lori in, there was definitely a different dynamic in the tank, and Lori was more than prepared to duke it out with the male Sharks. If you missed out on the latest episode, here’s what happened in the tank:
First into the Shark Tank was Back 9 Dips, founded by husband and wife duo David and Nique Mealy. They asked the Sharks for a $150,000 investment in their company, in exchange for a 15% share in the company. The Mealys learned that by far, the top two snacks consumed on Super Bowl Sunday are chicken wing and chips and dip, which inspired them to combine the two into Bubba’s Chicken Dip. After trying a bite of the dip, Daymond refers to it as a “chicken slurpee,” which causes the Sharks to completely dissolve into a fit of giggles. The Mealys explained that Back 9 BBQ begans as a catering company, but they quickly became known for their dips and are approaching $400,000 in sales in 2 years. The dips retail for $7.99-$8.99/lb and cost $2.52/lb to make. Despite liking the product all the Sharks bowed out… except Lori, who changes her mind shortly after bowing out. Upon hearing of the Mealys’ hopes that this business will provide for their family after David lost his job, Lori and Robert want to give them a chance. With a $150,000 offer for 25% stake in the company, the deal is done!
Season 3 Shark Tank fans probably remember one of the season’s favorites, Fleetwood Hicks and his loveable lounging pooch Deville. After making a deal with Barbara for his custom bike-building company Villy Customs, Fleetwood could not be happier. In the 24 hours after the show aired, his site had over 85,000 visitors. His sales went from $215,000/year to over $100,000 in just 5 weeks, with many more big things to come. Fleetwood also sat down with ITST a few weeks ago to talk about life post-Shark Tank. Congrats Villy Customs!
Marvin Phillip, founder and owner of Lifter Hamper, was second into the Shark Tank, asking the Sharks for a $85,000 investment in exchange for 12% of his company. After leaving the NFL due to a back injury, Marvin found simple household chores, like doing the laundry, were much more difficult. The Lifter Hamper makes doing the laundry easier because the stretchy hamper raises as clothing is removed, meaning no need to lean all the way into the hamper to retrieve the clothes at the bottom. Unfortunately for Marvin, though, the Sharks have an issue with the lack of patent and sales thus far. While they like the deal, they agree that the Lifter Hamper isn’t investable… yet. All the Sharks are out.
Perhaps one of the most energetic and theatrical presentations Shark Tank has ever seen, next into the tank were BagBowl founders and brothers, Brian and Kevin Fleming. The brothers asked the Sharks for a $40,000 investment in exchange for 33% equity in their company. BagBowl is a simple concept: it’s a plastic circular open-ended tube (similar to drink insulators you put around disposable coffee cups) that allows any plastic bag to be propped open into a bowl. Ideally, the Fleming brothers would like to look at liscensing the BagBowl out to bagged CPG companies, however the Sharks aren’t so convinced. Mark calls the men “wantrepreneurs,” prompting one of the brothers to plead “Cubes, c’mon.” Less than impressed by his newfound nickname, “Cubes” drops out. Robert is still interested and he offers $40,000 for 45%. Lori, not to be outdone, offers the men $40,000 for 33% and after a moment of hesitation, they accept.
Last into the tank is one of the largest askings in the history of Shark Tank, Henry Penix seeking a $2,000,000 investment for a 10% stake in his company, Zomm. Zomm is an electronic device that serves a number of purposes: it enables users to retrieve missing objects, quickly realize when they’ve left their phone behind, and store emergency contacts. As usual, the Sharks were curious about Henry’s numbers, and he did not disappoint. Zomm did $750,000 in sales in 2010, $5M in 2011, and on track to do $7.2M in 2012, resulting in a net profit of $2M. Henry has personally invested $4M and has another investor (in $5M) who owns 17% of the company. Yet with such high margins and sales, the Sharks are smelling a rat with this one. They want to know where over $9M in profit and investments went, and Henry isn’t giving them answers easily. Losing faith in Henry’s company and business savviness, all the Sharks are out.
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