Shark Tank has officially surpassed the halfway point in the season, but who knows if the Sharks are cooling down or just heating up? Time (and tonight’s entrepreneurs) will tell. With businesses ranging from almond water to phone sanitizers, the Sharks certainly have plenty of variety in the Shark Tank. In case you missed the latest action, here’s how is all went down.
First into the Shark Tank are husband and wife David and Deborah Meniane, owners of Victoria’s Kitchen. David and Deborah asked the Sharks for $200,000 in exchange for 20% equity in their company. Victoria’s Kitchen specializes in making all natural, vega, soy-free, GMO-free, gluten-free almond water, which was inspired by the family drink in Europe (the Menianes are from France). Victoria’s Kitchen sells primarily to specialty stores and grocers, and is sold in 800 stores nationwide, though the Menaines say Whole Foods isn’t their target because of the sugar content in their products. The drinks cost $0.60 to make and are sold for $1.10, and the company sold $280,000 last year. While the Sharks like the organic ginger lemonade they sample, they don’t like the Menaine’s lack of direction. The company’s sales took a big hit after they took one of their flavors off the market, and so the Sharks are concerned the Menaines aren’t focused enough on the right path for the company. Mark sums up all of the Sharks feelings when he says that they’re “starting to come across as desperate.” There’s isn’t a sweet deal for this one, all of the Sharks are out.
Next into the Shark Tank is a new spin on a familiar product. Jen Wright-Laracy and Ned Kensing entered the Shark Tank seeking $300,000 in exchange for 10% equity in their company, GreenBox. GreenBox is a 100% recyclable pizza box that rips apart into four individual plates, and also folds up into a smaller storage box for pizza leftovers. Jen says the company has sold more than 10 million boxes direct, and many more than that through licensing deals, to the tune of $1.7 million in sales last year. The Sharks’ main concern is that the box won’t help pizza shops sell more pizzas. But, Mr. Wonderful makes an offer of $300,000 for 10%, contingent on a licensing deal and that he gets his $300,000 back on that first deal. Robert and Lori also make an offer contingent on a large pizza company coming in, and their offer is $300,000 for 30%. Wanting to keep as much equity as possible, Jen and Ned say yes to Mr. Wonderful!
Last season Shark Tank fans met GrooveBook app, the photo app that allows customers to easily print their best smartphone photos. Since making a deal on Shark Tank, GrooveBook’s subscriber base has grown 15x and GrooveBook has now been acquired by Shutterfly for $14.5 million, making it the largest purchase in Shark Tank history. Congrats!
Next into the Shark Tank is Aaron McDaniel, looking for a $50,000 investment in exchange for 5% equity in his crowd-funded real estate company. Tycoon Real Estate allows users to buy into group-owned property investments, which include both commercial and residential options. Once a group of investors meets the investment goal, the company takes 1.25% of the amount raised, and the investors split the profit of the property, respective to the amount they own. No strangers to the real estate industry, the Sharks are instantly skeptical of Aaron’s business concept. As they ask more questions, they learn that Tycoon has only done 2 deals to date, one of which was only for ownership of part of a house in San Francisco. Overall, the Sharks think its risky for investors who have no visibility to the lead investor on the deal, making it an unwise investment. Still, Kevin throws a hail mary by offering $50,000 for 50%, contingent on Aaron rebranding the company with Kevin’s name. Aaron won’t budge higher than 10%, so there’s no deal in sight for this one.
Last into the Shark Tank are Wesley Laporte and Dan Barnes, seeking a $300,000 investment in exchange for 7.5% equity in their phone sanitizing company. Wesley and Dan created PhoneSoap after learning that phones contain 18x the amount of bacteria as a toilet, and that 1 in 6 phones is contaminated with fecal matter. PhoneSoap uses UV light to kill 99.99% of the bacteria on a phone in five minutes. The products cost $20 to make and are sold for $59.95, and the company has sold $537,000 in 5 months, mostly online and in Staples. The Sharks seem to like the product, but they’re concerned that consumers don’t see dirty phones as an issue. Wesley and Dan disagree and say there’s a huge market in hospitals and schools due to frequent tablet use. Mark wants to know the lowest cost they can get the product, and whether or not they can get it to clean devices in less than a minute. If so, Mark things there’s a huge market for health services providers, as a step that visitors must complete when checking into health facilities like hospitals and nursing homes. Kevin’s first to make an offer of $300,000 for $6/unit royalty until his investment is receipted, then $3/unit until he’s paid out $1.2 million and then he’s gone. The guys counter that they’re looking for an equity investor because of the market interest that has already been demonstrated. So Kevin is out, and Mark swoops in with an offer of $300,000 for 20%, contingent on a unit that cleans in 30 seconds and costs $12 to manufacture, because he wants to go the commercial route. Barbara calls Mark an idiot, but Mark retorts that he’s an idiot who’s made a lot of money. Lori then offers $300,000 for 15%, and she wants to put it on QVC and in all retail. While Mark argues that Lori doesn’t have a sales force, Lori defends herself with a history of almost $40 million in sales of her Shark Tank products. Lori then drops her equity to 10% and the offer is too good to pass up— it’s a deal!
What’d you think of the businesses in the Shark Tank tonight, fans? Let us know in the comments!