With this season of Shark Tank entering its last leg, the good ideas (and Shark’s one-liners) show no signs of slowing. In case you missed the latest round of action in the tank, here’s how it all went down:
Fishing Ammo gets Cuban to bite for $80,000
First into the Shark Tank were entrepreneurial hunters/fishermen, Jeff Stafford and Dusty Holloway, pitching the Sharks their shotgun shell fishing bobbers, Fishing Ammo. Jeff and Dusty asked the Sharks for an $80,000 investment in exchange for 20% of their company. Fishing Ammo got its start when the two were hunting one afternoon, and they realized that an ejected shotgun shell floated perfect. A business was born. Now, the men can manufacture a 3-pack of novelty shotgun shells for less than $1, which they then sell at retail for $8.99. While so far the men have only sold about 440 units, the Sharks still seem interested in a deal with Fishing Ammo. First to make an offer was Daymond, who’s in $8,000 for 20%, though it doesn’t seem as though he’s actually serious about the offer. Kevin then pounces with his standard royalty-laden offer: he’s in $80,000 for 50% with a $0.50/unit royalty until his money is recouped, and then a $0.10/unit royalty in perpetuity. The men aren’t ready to give up that kind of equity, so Mark strikes with his offer at just the right moment: he’s in at $80,000 for 33% and without hesitation, Jeff and Dusty accept! When the other Sharks razz Cuban about making a bad deal, he retorts to Daymond, “you spent more than that last night on cocktails.”
Shark Tank Success Story: Dance It Out
Earlier this season, Shark Tank fans met Billy Blanks Jr., who signed a deal with Daymond for his “Dance it Out” workout method. Since his first appearance on the tank, Billy has signed a deal with bodybuilding.com and is projecting to hit the $1M mark in the next 12 months. Congrats Daymond and Billy!
Wicked Good cupcake company requests $75,000 for jarred cupcakes
Next into the Shark Tank were mother/daughter duo, Tracey Noonan and Danielle Desroches, pitching their Boston-bred cupcake company, Wicked Good Cupcakes. Tracey and Danielle asked the Sharks for a $75,000 investment in exchange for 25% of their booming cupcake business. Wicked Good began as a standard cupcake storefront, and has since evolved with the addition of their shippable cupcakes-in-a-jar. They sold $73,000 worth of jarred cupcakes in 2012, and project $360,000 in total sales (storefront and online) by the end of 2013. The Sharks seem to be loving their cupcakes-in-a-jar, and Kevin makes his offer: he’s in $75,000 for no royalty, but he wants a $1/jar royalty until his investment is recouped, and a $0.50/jar royalty in perpetuity. After a short pow-wow, Wicked Good counters with a $0.40/jar royalty in perpetuity, and Kevin counters back at $0.45. With a big smile and a “come to momma,” from Wicked Good cupcakes, the deal is made!
Aaron LeMieux seeks $2 million to power his nPower PEG device company
Third into the tank was Aaron LeMieux, a Cleveland man who entered the Shark Tank asking for a $2M investment in exchange for 22% of his alternative power company, nPower PEG. The Sharks are blown away by such a huge ask, but Aaron quickly explains what makes his company so special. nPower PEG is a device that can be carried around in a backpack or briefcase. The device converts kinetic energy (motion) into energy that can be used to recharge personal electronics. Aaron’s technology also comes with patents that cover his kinetic energy harvesting. Sensing that there is a bigger goal here, the Sharks pry into what Aaron’s long-term plan. Aaron then reveals that his long-term goal is to use the money from his Power PEG’s to fund his bigger project: generating power from “wave farms” using the same technology in the portable PEG. Ultimately, he’d like the license the technology to an alternative energy company. While the Sharks like Aaron’s vision, Kevin is quick to point out the flaws in a potential partnership when he says, “You want me to pay you $2 million so I can work for you?” While Aaron quips that it “sounds like America” to him, Kevin is less than convinced. With that, the Sharks are out and Aaron leaves the tank without a deal.
The Mission Belt Company lands $50,000 with hustle and salesmanship
Last into the Shark Tank is Nathan Holzapfel, pitching the Sharks his innovative accessory idea: Mission Belt Company. Nathan asked the Sharks for a $50,000 investment in exchange for 20% equity in his company. Unlike regular belts, Mission Belts don’t have holes, and instead rely on a ratcheting technology to keep pants in place. Nathan describes it as a “giant zip-tie for your pants.” At this point, Nathan says his biggest hurdle is distribution: he’s a great salesman, however he’s lacking the rolodex of names and contacts that the Sharks could possibly provide him. As always, the Sharks are curious about the company’s financials, and Nathan’s got the numbers to back it up. Mission Belts has sold $39,000 of product in just three months. The belts cost about $5.50-$6 to manufacture in the US, they wholesale at $15 and are sold retail for about $35. But even more impressive than the startup numbers, Nathan’s impressive sales skills and constant hustle is proof enough to the Sharks that this may be a great business to invest in. Daymond’s fashion background makes him a clear frontrunner for the deal, and he presents his offer: $50,000 for 40%. Nathan counters at 30%, and Daymond counters back at 37.5%. With no more wiggle room and Daymond’s great rolodex on the table, the deal is made!