After a brief holiday break, the Sharks are back and they’re hungrier than ever. This season of Shark Tank continues to surprise with some of the highest stakes offers we’ve ever seen. In case you missed the excitement during the latest episode of Shark Tank, here’s how it all went down:
First into the Shark Tank were Arum, Dawoon and Soo Kang, the three sisters behind one of the newest online dating websites, Coffee Meets Bagel. The Kangs asked the Sharks for a $500,000 investment in exchange for 5% equity in their company. The Kangs, who graduated from Stanford, Harvard, and Parsons, designed Coffee Meets Bagel as a women-friendly online dating alternative, where women can avoid getting hit on my creepy guys. With Coffee Meets Bagel, a match has to be mutual before either person can message the other. The Kangs mention having “several hundred thousand” users, but won’t specify further than between 100,000 and 500,000, an avoid ant answer that irritates the Sharks. Still, Coffee Meets Bagel’s growth, from $87,000 last year to projecting $1 million this year, is enough to keep the Sharks interested. That is, until they learn that the Kangs each take a $100,000 salary from the company, and that the business won’t even break even until they reach $10 million in annual sales. While Mark went out when the Kangs refused to disclose their user base, he does make an interesting offer: would the Kangs take $30 million for the entire company. The answer is no, because they think their profit potential is much higher than that. With no offers on the table, there isn’t a happily ever after for this bagel romance. No deal.
Earlier on Shark Tank, fans met Hamboards, the family behind handcrafted longboard skateboards. Robert jumped on this deal at $300,000 for 30% equity, and the Hamboard crew report that it’s been a wild ride since they first made a deal in the Shark Tank. Pre-Shark Tank the company had done $225,000 in sales, and one year later they’ve now exceeded $1 million in sales. Righteous!
Next into the Shark Tank is Julie Kalimian, founder and owner of SkinnyShirt. Julie asked the Sharks for a $100,000 investment in exchange for 20% equity in her business. SkinnyShirts was designed to sold the problem of trying to layer a thin sweater or dress over a bulky buttondown top. By combining a sleek smoothing camisole with the top of a button-down shirt, Julie offers an alternative SkinnyShirt that looks as sleek on its own as it does paired under a layered piece. Julie has done $500,000 of sales in three years, but when the Sharks did a little deeper, they learn that Julie’s path has been riddled with poor partnerships and manufacturing issues. Still, she’s hoping a Shark will give her the investment so she can place an order with a new manufacturer, as well as solidify distribution contacts. The Sharks still feel that Julie has a cash management issue, and that she will require too much teaching to make the business a success. Unfortunately there’s no perfect partner for the SkinnyShirt, and Julie leaves the tank without an offer.
Third into the Shark Tank is Zander Adell, the man behind a company that seeks to revolutionize the way that people receive their packages. Zander is in the Shark Tank seeking a $250,000 investment in exchange for 10% equity in his company, Doorman Package Delivery. The concept is simple: for $3.99/package or for $19.99/month, users can sign up to have their packages shipped to a warehouse facility in their city. Then, they can schedule to have the packages dropped off at a convenient time when they will be home. In just a few months, Doorman already has 300 customers and has shipped more than 4,000 packages, and Zander plans to expand his business into Chicago next. The Sharks love the idea, especially Lori who says her housing accommodations are always dependent on package concierge services, just like what Doorman offers. Zander knows he can quickly scale the company to accommodate more subscribers, as his current fleet of just three drivers can already handle about 80 deliveries per night. Robert, Lori and Barbara are first to make an offer, and they’re in at $250,000 for 20%. Zander hesitates, and then counters at 12%, which Robert accepts on his own. Lori counters back at 15%, and Barbara holds firm at 20%, which Zander says he’ll only accept if more cast is involved. Without any movement from Lori or Barbara to match Robert’s offer, Zander takes Robert’s offer and the deal is done at 12%!
Last into the Shark Tank is a couple who claims they’ve revolutionized the way people eat one of America’s favorite breakfast foods: the bagel. Nick and Elyse Oleksak are looking for a $275,000 investment in exchange for 11% equity in their cream cheese stuffed bagel company, Bantam Bagels. With an offering that includes more than 18 different varieties, Bantam Bagel has climbed to the list of the top three best bagels in NYC in less than a year. The Oleksaks have done $200,000 in sales since Bantam’s inception. Each bagel costs $0.30 to make, and is sold for $1.50 apiece. The Sharks are pretty shocked at the steep price, but the Oleksaks say that customers have no trouble with Bantam’s pricing. They even appeared on QVC and sold out in five minutes, but the company was only making $2.00/unit based on the wholesale price they offered to QVC. The Sharks seem to like the couple, but they feel that Nick’s cushy Wall Street job means the couple isn’t desperate enough to make the business a success. Still, resident foodie Shark Barbara offers them $275,000 in exchange for 51%, reasoning that her journey to hell and back with Daisy Cakes makes her a valuable partner. If Bantam takes the deal, she wants them to drop QVC and change their branding. Kevin is next with an offer of $275,000 for 50%, under the condition that Nick quits his job, they buy an existing commercial kitchen, and go direct to consumer, like his previously confectionary success, Wicked Good Cupcakes. Lori is next to make an offer of $275,000 for 30%; she also wants to change the name and branding, and she’d like the company to go the food truck route. The Oleksaks say they can’t take Barbara’s offer, and she challenges them to make her a counter offer. When the counter at 25%, Barbara says she’s willing to drop to 33%, but Lori has already accepted their counter if they agree to take her 25% offer right now. They do and the deal is done with Lori!