Last season Shark Tank fans witnessed the largest deal in show history when Mark Cuban offered $2 million for 20% equity in Ten Thirty One Productions, a company responsible for putting on haunted-houses. After Mark’s investment, the company has tripled it’s cast and crew, and even received a further investment from the nation’s largest entertainment company, Live Nation. With a new offering of The Great Horror Campout, a 12-hour interactive horror camping trip, Ten Thirty One Productions is projecting $3-4 million in revenue in the next year. Congrats team!
Last into the Shark Tank is H2W’s David Levich, Eric Liberman and Dan Gershon, representing their company Sun-Staches. The guys are seeking a $300,000 investment in exchange for 5% equity in their novelty sunglasses company. The sunglasses cater to a variety of characters from pirates to cats, and everything in between. Clearly the public loves Sun-Staches, as they did $5.7 million in sales last year, and are on track to hit $6.4 million this year, which will leave them with a $750,000 profit. Sadly, Kevin tells them that they’re not worth their $6 million valuation, and that he says even $2.5 million is generous. The guys are hoping a Shark can help them explore the licensing route with major sports teams and comic companies like DC and Marvel. In standard form, Mark asks them for their best offer for $300,000, and Kevin tells them the right answer is 20%. The guys counter back at 10%. Things are going downhill with Kevin and Mark, and then Daymond offers $300,000 for 25%, including manufacturing costs. The guys counter Daymond and ask if he’ll go in with Mark for $300,000 for 12.5%, but neither Shark is interested. They counter Daymond again at 15%, and Daymond is only willing to go to 20%. They counter again at 17% and tensions are high as Daymond declines. Resigning themselves to 20% equity, the deal is done!
There were some interesting characters and even more interesting negotiations this time in the tank. Let us know what you thought in the comments section!
