In the second last episode of Shark Tank Season 4, Barbara was back in the tank, ready to wheel and deal with the entrepreneurs. After last week’s episode, fans were left wondering if Mr. Wonderful had turned into a softy for good. In case you missed the latest episode, here’s what happened on Shark Tank:
Baby’s Badass Burgers miss their $250,000 mark
First into the Shark Tank were Erica Cohen and Lori Barbera, founders and owners of Baby’s Badass Burgers. The women asked the Sharks for a $250,000 investment in exchange for 30% equity in their successful food truck company. Baby’s Badass Burgers is a food truck that sells high quality gourmet burgers on the go, and they operate under the slogan “Come for the burgers, stay for the buns.” After doing $815,000 in sales in three years, the ladies are looking to use the Sharks’ investment to build the a storefront, for which they’ve already saved up some of their own money. Despite being impressed by both the burgers and the numbers, the Sharks have a hard time swallowing Erica and Lori’s transition fron successful food trucks to brick and mortar store. The Sharks just aren’t convinced the women are going in the right direction, and that they haven’t considered all of the aspects of storefront ownership. Although the women have successfully opened seven restaurants between the two of them, the Sharks remain unconvinced, and Erica and Lori leave without a deal.
“Track Days” feature film owners seek $5 million dollars of seed money
Second into the tank are Brian Pitt and James LaVitola, presenting a pitch for something never before seen in Shark Tank history: a movie. Brian and James asked the Sharks for a $5 million investment in exchange for 34% of their motorcycle racing feature film, “Track Days.” With such a unique proposition on the line, the Sharks are curious to know exactly what they’re getting into, and… the men don’t have much to show. They say that “by design” they don’t yet have a script, a cast, or any part of the movie to show. However, they’re looking for a Shark’s investment in order to get production rolling, and that the Shark who invests won’t actually spend a dime until the men can show proof of foreign and domestic sales. In their own words, they’re using the Shark money as bait to lure in funding from other sources. As tempting as that offer is, all of the Sharks are quickly out.
Mary Beth Lugo requests $300,000 for KaZam pedal-less training bikes
Next into the Shark Tank is Mary Beth Lugo, pitching her pedal-less training bike company, KaZAM Bikes. Mary Beth asks the Sharks for a $300,000 investment in exchange for 20% of her company. Essentially, KaZAM bikes are pedal-less bikes that teach young children how to balance on two wheels, so they can learn to ride a bike without using training wheels. Using a similar European concept as a springboard, Mary Beth has created and patented her own design in the US. Mary Beth reveals that the bikes are made for $38.35, sold wholesale for $45, and sold direct to consumer for $99.95. While the Sharks are a little concerned about cost and profit margins, Mary Beth’s sales are impressive: she sold $1.4 million in less than tree years, and is projecting $1.3 million in 2013 alone. With the support of good corporate financials, the Sharks are considering a deal, however they’re not convinced that Mary Beth is a cutthroat businesswoman who can take this company to the top. Mark gives Mary Beth a trial by fire: he’s in at $300,000 for 40%, but only if Mary Beth can convince Barbara to come in on his deal, and she only has a 24 second shot clock to do it. Putting it all on the line, Mary Beth gives Barbara an impassioned plea about her willingness to never settle until she’s the leader in her industry. Convinced, Barbara is in, but Mary Beth has come back saying that 40% equity is too much. She counters at 32%, and without a second thought, the deal is done with Mark and Barbara!
Shark Tank Success Story: The Spatty
Earlier this season, Shark Tank viewers met Cheryl, founder of The Spatty, a long thin spatula that can be used to scrape cosmetic products from the bottom of their container. Although Cheryl failed to secure a deal with a Shark, she has received orders for over 7,000 Spatties since her appearance on the show. With $32,000 in sales, Cheryl is now able to mass-produce Spatties, and with the help of Daymond, she’s now in the process of securing a licensing deal. Congrats Cheryl!