Shark Tank on a Thursday night? You asked for it and ABC delivered! In unprecedented Shark Tank fashion, the Sharks were in the tank for TWO nights in a row, feistier than ever. In case you were living under a rock (or just didn’t hear about the Shark Tank double-header), here’s what went down in the latest episode of Shark Tank.
First into the Shark Tank was Scott Adams, with a modern twist on a years-old idea that he hopes will get the Sharks to jump up and wave their arms in the air. And if they don’t, Scott’s got it covered with his clan of mechanized cut-out sharks he brought along to accompany him in the tank. Scott asked the Sharks for a $225,000 investment in exchange for 15% equity in his company, Velocity Signs. Velocity Signs is Scott’s answer to the problem of paying someone to stand outside of storefronts wearing sandwich boards of holding signs. Instead, he proposes using mechanized waving signs both because they produce a greater ROI (15%, to be exact), and because they lower labor costs overall, once the initial investment is made. Scott’s sold 125 units in about 12 months, for a total of about $257,000 in sales. Boasting a little name (Little Caesars) as his biggest client, Scott is confident that he’ll sell 1,200 units in the next 12 months. He conservatively forecasts $2.5 million in sales next year. Lori’s first to make an offer of $225,000 for 30%, and she accepts Kevin’s offer to come in on her deal. What happens next, well, who even knows what happened next?! All you need to know is that a slurry of deals arose from Sharks who didn’t initially show interest (Mark, Robert), and Lori somehow ended up on the losing end of the equation. Even though her offer was the one that started it all, Lori leaves empty handed as Scott takes a deal with Robert, Mark, and Kevin. Looks like the male Sharks win this round.
Next into the Shark Tank was the most pretentiously named nut you’ve ever met: Lord Nut Levington. Owner Sanjiv Patel entered the tank seeking a $500,000 investment in exchange for 30% equity in his nut company. Before you say he’s nuts (har har), let Sanjiv tell you about his $300,000 in sales in the last 12 months. Unfortunately, he won’t be making any money on that. Although he already has distribution in popular grocery stores like Wegman’s, he has invested $1.1 million in the company to date, and has yet to turn a profit. The Sharks seem to like the product, but as Kevin so aptly puts it, “I won’t follow you on this path to hell. I won’t do it, I’m out.” Failing to see a differentiator between Lord Nut Levington and other major players in the nut market, all of the Sharks are out.
Third into the Shark Tank is a product that would make feet smile, if they could. Pat Yates, owner of Happy Feet, asked the Sharks for a $375,000 investment in exchange for 15% equity in his novelty slipper company. In the last three years, Pat has hit $6.5 million in sales between internet and wholesale orders of his playful slippers. Each pair costs roughly $5.50 to make, and they’re sold for between $24.99-$29.99. The colorful slippers really caught fire after Pat secured a sponsorship deal with everyone’s favorite reality star, Jersey Shore’s Snookie. At the mention of Snookie’s 12% royalty, the notoriously royalty-loving Mr. Wonderful is looking hungry. He offers $375,000 for a $3/pair royalty until his investment is recouped, in addition to a 5% what he’s calling “wet my beak equity,” and the royalty will drop to $1.50/unit after his investment is recouped. Lori smells a deal and she jumps in on Kevin’s offer, upping the equity to 6%. While Pat appreciates the offer, it’s clear he’s after bigger Sharks… one named Mark Cuban in particular. Mark’s not interested, so Pat counters Kevin and Lori at 20% straight equity, because he doesn’t like the royalty structure. Kevin counters back at 30%, just in time for Robert to make a last minute offer at 30%. Pat says he just can’t go above 25%, a counter-offer that Robert quickly accepts. Deal!
Last season Shark Tank fans met the convertible bean bag/bed company Cordaroys. After a deal with Lori at $200,000 for 58%, Cordaroys is doing great. The company hit $3 million in sales less than 8 months after the show, including a QVC debut where they did $25,000/minute in sales, overselling their inventory by 50%. Congrats!
Last into the Shark Tank was a fashion solution for women looking for comfort and fashion, combined together in a slimming package. Erin Bickley and Jenny Greer entered the tank seeking $75,000 in exchange for 20% equity in their clothing line, Hold Your Haunches. Erin and Jenny developed Hold Your Haunches to combine leggings with shapewear to create the perfect sleek silhouette. While both Lori and Barbara are clearly impressed by the product, Kevin’s stuck on the “false advertising” that the leggings encourage. He says he’d litigate if he met a woman wearing them because of the “false advertising.” The women have sold $280,000 of leggings since Noevember 2010, includingg $165,000 in the last 12 months. The Shark Ladies are ready to pounce, and they make a joint offer of $75,000 for 40%, with a $100,000 line of credit to fulfill purchase orders. Despite Mark’s threat to throw a wrench in things, the women win out. Score one for Lori and Barbara, the deal is done!
What did you think of tonight’s Shark Tank, fans? Let’s hear it!