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

Recap of Shark Tank Season 5, Episode 24

In day two of the unprecedented two-day Shark Tank extravaganza, the Sharks are heating up… and the negotiations are too. This latest episode of Shark Tank featured a little bit of everything, from water-generated power pots to trackless mall trains. Think you’ve seen it all? Think again! In case you missed all of the action in the Shark Tank, here’s a recap of everything that happened:
First into the Shark Tank was Taylor Robinson, representing his self-titled company, Taylor Robinson Music. The company claims to revolutionize the way people find and hire private music instructors through the use of an online portal. Taylor asked the Sharks for a $100,000 investment in exchange for 10% equity in his company. Essentially Taylor Robinson Music allows students to search for and hire private instructors, and TRM gets a small commission from every lesson booked. He’s made $2.5 million in the past 5-6 years, including $450,000 last year along. To date, however, profits have been tough based on two major costs that are impacting margins: customer acquisition and operations. Ultimately, Taylor is looking to use a Shark’s investment to finish developing his enterprise system and to automate processes that currently have to be handled manually. He also hopes to be able to allow instructors to set their own rates, which they can’t currently do due to software limitations. Unfortunately the software Sharks are having a hard time getting behind Taylor’s business, because they believe his current business model just isn’t set up for success, and that his approach is confusing. Taylor isn’t able to find harmony with the Sharks, and he leaves the tank without a deal.
Next into the Shark Tank are Dave Toledo and Paul Slusser, co-founders of the PowerPot. Dave and Paul asked the Sharks for a $250,000 investment in exchange for 10% equity in their thermal electric power generator. At its most basic level, the PowerPot is a tool that allows users to turn heated water in electricity, perfect for campers and backpackers. The PowerPot got its start as a Kickstarter campaign where they were able to raise $126,000 in 30 days, pre-selling 100,000 units. Now, the PowerPot is in more than 100 stores and sold $300,000 last year, and is projecting $2 million this year. Some of the Sharks are concerned that Dave and Paul are pricing themselves out of the tank with such a high valuation, but Mark’s makes an offer of $250,000 for 20% because he believes these guys are smart. Dave and Paul counter Cuban at 12% for $250,000 plus an additional 3% in advisory options and a sat on their board with the other investors in the company. Without a second thought, the deal is done!
Back in season one, Ava the Elephant was one of the first deals ever made in the Shark Tank. Tiffany Krumins entered the tank in the midst of a battle with thyroid cancer. Not only was she able to secure a deal with Barbara, she was also able to defeat cancer and remains cancer-free to this day. Barbara helped Ava the Elephant secure a connection with HealthPons and hit over $6 million in POs. Congrats Tiffany and Barbara!
Next into the Shark Tank is a return to the novelty of yesteryear with the Fun Time Express. Stan Krozel and Kevin Ullery entered the Shark Tank seeking a $125,000 investment in exchange for 20% equity in their company. The Fun Time Express is a trackless train system that allows riders of all ages to take lap around the mall or wherever the train is placed (parks, sports arenas, or even private parties). To date, the Fun Time Express has five operational trains, with #’s 6 and 7 in progress. Each train costs about $37,000 to buy, and at $3/ride, the trains pay for themselves within approximately 6-8 months. The company has grown rapidly, increasing from about 31,000 tickets sold in 2011 to a projection of 300,000 tickets by the end of 2013. While the Sharks seem to like Stan and Kevin, they don’t seem convinced of the profitability or scaleability of the company. Still, Lori’s in for half of the ask, but she needs another Shark to join her. Kevin jumps into Lori’s offer, and they make a joint offer of $125,000 for 20%. With their exact ask on the table, Stan and Kevin have no problem making up their minds: the deal is done!
Last into the tank is firefighter Matt Scarpuzzi, looking for a $150,000 investment in exchange for 10% equity in his company, Quickstop Fire Sprinkler Tools. Quickstop’s mission is simple: empower firefighters, apartment dwellers and apartment building managers with a tool that will quickly stop overhead sprinkler systems from causing water damage in apartment units. Matt has sold nearly $18,000 in products in just six weeks to fire departments, homeowners associations, hospitals and more. Each tool costs $25 to make and he’s currently selling them for $89.95 apiece, a price that the Sharks collectively agree to be too low. But Matt’s no one-trick pony, he introduces the Sharks to his other inventions: an at-home pipe leak stopper and an extendable handle for shutting off hard-to-reach sprinklers. Matt hopes that he can use a Shark’s investment to buy more parts to fulfill inventory for orders he already has pending. Lori’s first to make and offer and she’s in at $75,000 for 18%, but needs another Shark to join and offer; Kevin obliges, but he wants 25% for himself and gets Lori to bump her equity to the same, resulting in a joint offer of $150,000 for 50% equity. Seeing Matt hesitate gives Lori second thoughts, and asks Kevin if he’ll drop the equity to 40% combined. Kevin’s standing strong, though, which leaves a tough decision for Matt. Unfortunately the equity is just too much, and Matt declines the offers, leaving the tank without a deal.
What did you think of the negotiations in the Shark Tank tonight, fans? Leave us a comment and let us know!

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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