The Sharks are BACK and rearing to go as they kick off Season Six of Shark Tank with a bang. With $40 million in deals under their belts, they are more bloodthirsty than ever. Let’s hope the entrepreneurs have perfected their pitched and have favorable financials to share. In case you missed the action in the tank, here’s your recap of the Shark Tank Season Six premiere!
First into the tank are Stephanie and Brett Parker from Fort Worth, Texas, hoping they can sell the Sharks on their snuggle-worthy company, Sleeping Baby. The Parkers asked the Sharks for a $200,000 investment in exchange for 10% equity in their baby swaddling company. Sleeping Baby’s hero product is the Zipadee-Zip, a product similar to a swaddle, but that allows babies a bit more movement as they get older. To date, the Parkers have sold 25,000 units, a little more than $1 million worth, at a price point of $34.95-$39.95. Perhaps most impressively, their total investment in the company to date is $700, which includes their website and fabric to get up and running. Now, the Parkers have such a flourishing fan base that they use their online community to vote on new fabric prints, practically guaranteeing the success of new product launches. Lori is first to make an offer at $200,000 for 25%, because she believes the business will require a bit more of her time to help build the brand. Kevin asks if they plan to go into retail (currently, all sales are through their website). While Brett says he isn’t sure, Kevin still sees opportunity in the Parkers, so he makes an offer of $200,000 for 20%. Daymond follows suit and matches Kevin’s offer. Intrigued by Damond’s manufacturing capabilities, the Parkers ask him if he’ll help on that front. They also counter him at 15% equity. Daymond is willing to help with the manufacturing, however he isn’t going to budge on the equity. And with Daymond at 15% equity, the deal is done!
Next into the Shark Tank is Michael Elliot, founder of Hammer and Nails Salon for Men, seeking a $200,000 investment in exchange for a 20% stake in his company. Michael calls his company “man cave nirvana” and hopes to give men a safe and manly space to get manicures, pedicures and massages. He’s generated $150,000 in the first seven months and is projecting $250,000 in his first year of business. While the Sharks like Michael, and Daymond in particular is impressed with Michael’s hip-hop background, they’re concerned with his plans to turn Hammer and Nails into a franchising opportunity so early in the game. With too many concerns about Michael’s business plan, all of the Sharks are out.
Third into the Shark Tank are college students George Shuey and Kyle Byrd, representing their company, Amber. The guys asked the Sharks for a $200,000 investment in exchange for 20% equity in their portable phone charging stations. Amber is a free charging station that bars can buy and install, which allows up to seven users to charge their devices, which are secured behind a sliding wall that is activated through fingerprint recognition. The Sharks heard their favorite word, “pre-revenue,” and all bets were off. They express concerns about the technology, and especially that the idea already exists in various forms. Kevin doesn’t mince words, though, when he calls the idea one of the worst he’s ever seen. None of the Sharks are interested in investing, and they’re all out.
Last into the Shark Tank were David Heath and Randy Goldberd, founders of Bombas, seeking an investment of $200,000 for 5% equity in their comfort and performance sock company. David and Randy designed their do-gooding company to donate a pair of socks to a homeless shelter for every pair that is purchased. On top of the donation aspect, Bombas socks are designed to be superior to standard athletic socks in nearly every way. In just a year of business, they’ve reached $450,000 in sales, a number that definitely piques the interest of the Sharks. Still, some of the Sharks are concerned that socks are not a standalone company, and that the margins will never be high enough to make it a sound investment. Still, resident apparel mogul Daymond is interested, and he asks the guys to offer him a new valuation. When they come back at $200,000 for 10%, Daymond isn’t biting just yet, and he comes back at $200,000 for 20%. The men counter again at $200,000 for 15% with a line of credit. But Daymond has already offered to finance the goods orders, which means he’s not going below 17.5%. The men hope for some breathing room to call their CFO but Daymond isn’t easing up, and so they accept and the deal is made!