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

Recap of Shark Tank Season 5, Episode 22

First into the Shark Tank was a well-branded twist on a balanced breakfast: Kodiak Cakes founders, Joel Clark and Cameron Smith, seeking a $500,000 investment in exchange for 10% equity in their company. Kodiak Cakes offers a line of whole grain pancake/flapjack mixes made with no added fats or sugars. In addition to the mix, they also manufacture a line of fruit syrups, which are met with rave reviews by the Sharks. Currently, Kodiak Cakes is in Target stores nationwide, and is on track to do $5 million in sales this year, doubling last year’s $2.5 million in sales. The product costs roughly $1.65 to produce, and it’s sold for an average of $3.02, about double the price of their competitors. When asked what the investment will be used for, the men explain that they’re planning to spend a big chunk of the $500,000 on slotting fees, essentially paying for the shelf space they’ll occupy in stores. They have hopes of eventually going public, but one Shark in particular, Kevin, isn’t convinced they’re worth the value that they’re currently placing on the company. He says that if he were to make an offer it’d be $500,000 to 50%, but that he won’t make that offer because he knows they won’t accept it. Robert’s not playing any games, though, and he makes a real offer of $500,000 for 35%. Barbara then puts up half an offer ($250,000 for 20%), asking another Shark to come in. Kevin (surprisingly) obliges, but the men just aren’t on board with the low valuations on the table. Cameron and Joel decline the offers and leave the Shark Tank without a deal.
Earlier this season, Shark Tank fans met Grace & Lace the wildly successful socks and apparel company who managed to snag a deal with Barbara. In just five days after their Shark Tank success, Grace & Lace hit the $1 million mark in sales, and now, just a few months later, they’re at $3 million in sales. The company has grown to keep up, too, and now boasts a staff of 36 employees. Congrats team!
Next into the Shark Tank were two moms, Courtney Turich and Christie Barany, founders of a product designed to keep kids from playing on dirty floors, even when out and about. Courtney and Christie asked the Sharks for $100,000 in exchange for 20% equity in their company, Monkey Mat. Monkey Mats are soft fabric floor liners that are easy to clean and carry for moms and kids on the go. Monkey Mats are made from soft, durable and water-resistant fabric with weighted corners so it stays put. As always, the Sharks quickly turn their attention to the numbers, and Monkey Mat’s are cause for concern for most of the Sharks. The company has about $60,000 in sales in their first year. The mats cost about $13.14 to produce in China, and they’re sold at $39.99 retail. The Sharks all agree that the product should be sold at a price point closer to $10, and Barbara especially seems to hate the current colors of the mats. Lori, however, sees a glimmer of hope in the self-proclaimed Monkey Mat Mamas, and she offers $100,000 for 35%. Hoping Lori is their fast-pass to success, the women accept her offer— DEAL!
Third into the Shark Tank are Josh Hix and Nick Taranto, hoping the Sharks are hungry to invest in their meal delivery company, Plated. The men entered the tank seeking a $500,000 investment in exchange for 4% equity in their company. Plated caters (hah!) to at-home cooks who simply don’t have the time to plan meals in advance and shop for groceries. Customers can sign up to receive pre-packaged ingredients and instructions to cook and assemble high-quality meals at home. To date the company boasts $350,000 in total sales, and, with major expansion on the horizon, they project $10 million in the next 12 months, resulting in $1 million a month in revenue by year end. Friends from Harvard Business School, Josh and Nick began plated by investing $50,000 of their own money, and they’ve since raised $3 million from additional investors. Lori is skeptical of their business model, and believes that people who are too busy to shop for ingredients are also too busy to cook for themselves at home. Mark, however, is interested and makes an offer of $500,000 at the same valuation earlier investors paid (roughly 5.5% equity) plus advisory shares. They ask Mark to  discuss privately, but he turns up the heat in the kitchen really quickly and presses the guys for an immediate answer. After a few knowing glances shared back and forth, John and Nick reach a decision and the deal is done!
Last into the Shark Tank are three painters from Staten Island looking for a $50,000 investment in exchange for 10% equity in their company. Painters by trade, John DePaola, Sal DePaola, and Anthony Caputo came up with The Paint Brush Cover to prevent one of their most commonly faced problems: dried out brushes. With an airtight seal, the individual covers will keep brushes wet for up to 3 months, meaning painters can seal and reopen and paint as they please. To date the men have sold about 17,000 units and have reached about $35,000 in sales. Each cover costs $0.41 to manufacture, and they sell for $2 wholesale and $3.99 retail. With a deal on the table from Bunnings, Australia’s largest DIY/hardware store, the men aren’t looking to give up much equity, but instead to recruit a Shark who can offer capital to fulfill the order and also strategic insight for how to grow the business. Kevin’s first to make an offer and he’s in for $50,000 plus a 10% royalty on all sales, but no equity. Robert comes in next at $50,000 for straight 20% equity. Sensing he can get more skin in the game, Kevin quickly adjusts his offer to $100,000 for a 10% royalty plus 5% equity in the company. Lori  blows both previous offers out of the water when she enters the negotiations: she’s in at $100,000 for 20% plus an additional $100,000 to pay for their first POs from Bunnings, but only if they say yes immediately. Barbara is trying to get in on the action, but Lori cuts her off, saying that her offer will expire if the men don’t provide their answer— and fast. Not wanting to let a great deal die on the table, the men are quick to agree and the deal is made with Lori!
Lots of heated negotiations in the Shark Tank tonight fans, what did you learn from this episode in the tank?

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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