$46,275,000 invested by the Sharks to date

Recap of Shark Tank Season 5, Episode 21

Shark Tank is nearing the final episodes of Season Five, but the Sharks are still as thirsty for deals as ever. From some creepy crawly treats to an interestingly-title product to fight bedhead, there was certainly variety in the latest episode of Shark Tank. In case you missed the action, here’s what happened:
First into the Shark Tank was Chapul, a company that produces energy bars made from crickets. Founder Pat Crowley entered the Shark Tank seeking a $50,000 investment in exchange for 5% equity in his company. Pat produces the bars — which are met with mixed reviews by the Sharks — using a flour made from ground crickets, a formula he is the only producer licensed to make in the US. The bars cost approximately $1 each to produce, and they are sold for $2.99, mostly in natural food stores and in gyms. Pat is hoping he can use Chapul to introduce cricket-eating into the diet of Americans in the same way that the sushi industry used California Rolls to make their mark in American food trends. Mark and Robert are quick to realize that the money for Chapul is in selling the licensed insect flour to other companies, not just selling Chapul bars. After one of Mark’s favorite reverse negotiations, he gets Pat to offer him 15% equity in exchange for $50,000. Robert offers $50,000 for 20%, but Pat wants to keep his equity and the deal is done with Mark!
Earlier this season, Shark Tank fans met Fiber Fix, a home improvement product that allows users to make simple and durable repairs. After making a deal with Lori, Fiber Fix went from pre-Shark Tank sales of $300,000 to sales of $6 million in just three months! The day after their Shark Tank deal, Fiber Fix appeared on WVC and sold 45,000 rolls of product in only 10 minutes. After signing deals with Home Depot, Ace Hardware and True Value, Fiber Fix is well on their way to being one of Shark Tank’s greatest successes.

Next into the Shark Tank is Bryan White, looking to help millions of Americans protect themselves from a security threat they may not even know exists. Bryan asked the Sharks for a $275,000 investment in exchange for 30% equity in his company, ELockSys Garage Door Lock. ELockSys is a steel deadbolt that fits on any garage door and protects homeowners from potential garage break-ins. At a retail price of $249.95 apiece, Bryan has sold approximately 450 units to date, for a total sales of about $112,000, mostly to consumers who found him after experiencing a garage break-in. To date, Bryan has invested $250,000, not including the patent work. He’s looking for a Shark to help him get a foot in the of the big box stores, but the Sharks are worried that he’s an inventor and not a salesman. Still, Daymond makes a deal typical of Kevin when he offers Bryan $275,000 for 40%, contingent on a licensing deal with an existing garage door manufacturer. Robert is in for $275,000 for 75%, justifying the high equity on the basis that he “has a guy” in the industry. Bryan isn’t looking to give up that much of his company, so he counters Daymond back at 35% and Daymond accepts. Deal!
Third into the tank is Max Valverde with his bedhead-fighting company, Morninghead. Max asked the Sharks for a $25,000 investment in exchange for 20% equity in his company. Born from a need to quickly revive bedhead without having to drench your entire head, Max created Morninghead, which is essentially a towel-lined shower cap that can be wetted and then rubbed on the head for easy re-styling. The Sharks laugh at the product, until they learn that he has sold over 7,000 units in 42 countries at $7.99 a pop (units only cost $1.19 to produce). After $36,000 in sales in 18 months, Max is hoping that a Shark’s investment will help in bring costs down. Unfortunately Kevin calls the product “poo poo on a stick,” and the other Sharks seem to agree. Max leaves the tank without a deal.
Last into the Shark Tank are Chicago-native college students Kasey Gandham and Mike Shannon, looking for a $200,000 investment in exchange for 10% equity in their company, PackBack. Wanting to create a more cost-effective solution for textbook usage, Kasey and Mike developed PackBack, a company that allows students to rent textbooks on a per-use basis. Rather than renting books by the semester for $150-200 as their competitors are, PackBack lets students rent books for $5 or less a day. Thus far, the boys have secured a deal with one of the largest book publishers who publishes 25-30% of all textbooks. Within this agreement, the publishers receive 75% revenue, and PackBack gets the remaining 25%. While the Sharks are initially skeptical, based on the level of e-book competition, the boys assuage their concerns when they explain that competitors won’t want to adapt to this model, as it directly competes with their existing revenue stream from semester-long rentals. Mark makes another reverse-negotiation power play, and point-blank asks the guys for the most amount of equity they’re willing to give him. After a quick chat, Kasey and Mike offer Mark $17.5% in exchange for $200,000. Mark counters at $250,000 for 20%, and the boys quickly (too quickly) counter back at $200,000 for 20% before quickly realizing their faulty math. After some flustered backpedaling, the guys happily accept Mark’s offer and the deal is done at $250,000 for 20%!
What’d you think of tonight’s businesses Shark Tank fans? Let’s hear it in the comments section!

About Author

Carolyn is a 20-something marketing professional from Chicago, and she's been working with InTheSharkTank since August 2011. Some of her favorite past Shark Tank contestants are Litter SF, REMYXX, and Villy Customs. When she's not busy live-tweeting the show, Carolyn likes reading on her Kindle, exploring the city, and getting in touch with her inner Betty Crocker. Google+

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