The Shark Tank Season 4 Finale was an unprecedented double header of episodes. In what’s been an amazing season to date, how did the second last group of entrepreneurs stack up? Here’s how they fared in the Shark Tank:
Jay Jones seeks $100,000 for 25% investment in Jones Scones
First into the shark tank is Jay Jones, owner of Jones Scones out of Denver, Colorado. Jay asked the Sharks for a $100,000 investment in exchange for 25% equity in his company. For the past 10 years, Jay has been making authentic English scones that are sold in six Whole Foods locations in the Rocky Mountain region. While Jay was stilling over $100,000 a year in 2009, his sales have since dropped to about $5,000 a month. He blames himself for trying to grow operations with a new manufacturer, which meant he was no longer able to oversee operations as closely as he had in years past. While the Sharks seem to like the product, they all have concerns about the company’s lack of growth, and Jay’s misplaced priorities. With that, all of the Sharks are out.
LugLess Owner, Brian Altomare, pursues a $100,000 deal with the Sharks
Next into the tank is Brian Altomare, owner and founder of LugLess, a company that seeks to help travels make it to their destination, without the baggage of their, well, baggage. Brian is seeking $100,000 for 10% of his company. Lugless is a luggage shipping service that transports a travelers luggage from their home to their desination hotel and back, without the hassle of dealing with luggage at the airport. Users can sign up for the service online and will receive their luggage tag next-day. For travels with less time, there are drop-off locations or a courier can pick up luggage for them. While Brian has had over $215,000 in sales in 2012 (through October), the Sharks have a hard time seeing how LugLess will compete against, say, FedEx. Brian tries to explain that the convenience and pricing ($39 for a carryon, $59 for standard size, and $99 for oversize) make him a better option, but the Sharks have a hard time following his logic. The Sharks think scaling the business will only shrink his margins, and that his competition is too stiff for this to be a good investment. All of the Sharks are out.
Geek Chic requests a $100,000 investment for 10% of his unique furniture company
Third into the tank is Robert Gifford, founder of Geek Chic, asking the Sharks for a $100,000 investment in exchange for 5% of his inventive furniture company. Robert says that Geek Chic was inspired by a “rare moment of marital insight” where he realized that his wife deserves better than to deal with his hobby-related items cluttering up their house. Enter Geek Chic: a company that’s like Transformers for furniture. Tables can open up to reveal game playing areas, and users can customize the table with attachments and pull-out desks. Although last year’s sales were $2 million, Robert was still left $100,000 in the red. The company now has 19 products with hopes of expansion and plans to use the Sharks’ capital to increase distribution and efficiency. While Kevin advises Robert to stay as happy as a rare white fruit fly (…it was a high school science class reference), Daymond wants a piece of the action. He offers Robert $200,000 for 25%, but Robert isn’t having it. Instead, he counters back at $500,000 for 15%, an even higher valuation than his original ask. Just as Robert is reconsidering, Robert Herjavec knocks at the door with his own offer: $300,000 for 25%. Daymond refuses to play ball, and Robert tells Daymond that he didn’t know if it was the right deal for him anyway. With that, Robert takes Herjavec’s offer and the deal between the Roberts is made!
Shark Tank Success!!
Earlier this season, Aaron Krause made a deal with Lori Grenier for his sponge company, Scrub Daddy. Since making the deal, Lori got Scrub Daddy into Bed Bath & Beyond stores nationwide, and he became a millionaire in weeks. In the 6 months before Shark Tank, he had done about $110,000 in sales. In the 15 weeks post-show, he’s now topped $2 million, including selling 500,000 Scrub Daddies on QVC alone. Lori says it’s one of her investments to date. Congrats guys!
The stella valle jewelry company wins big with a $150,000 offer for 35%
Next into the tank are Paige Dellavalle and Ashley Jung, two women whose time in the military inspired their jewelry company, stella valle. The women are seeking a $150,000 investment in exchange for 25% equity in their company. After Paige served as an Army officer in Afghanistan for 15 months, she and Ashley started up the company with jewelry designs that reflect their style and background. The line has been sold in trunk shows at department stores like Bloomingdales and Henry Bendel, and the company has about $75,000 in sales to date. The pieces range in price from $50-$375, however they girls are able to produce them for as little as $3 (for a $96 retail piece), up to $49 for a $375 piece. In order to grow brand recognition, the girls hope to use the Sharks’ investment to replicate their trunk shows cross-country, before just seeking shelf space. In an effort to convince Daymond, Ashley tells attempts to tug on his patriotic heartstrings: “while you were making money, she was getting shot at.” Daymond isn’t buying it, but Lori and Mark are seeing dollar signs. On a joint offer of $150,000 for 35%, no negotiation is needed and the deal is done!