As Shark Tank nears the home stretch for season six, the heat is on as this season’s last few rounds of entrepreneurs enter the tank in hopes of inking a deal with a Shark. Tonight’s episode included some familiar faces and some interesting twists on existing products. In case you missed the action on the tank, here’s how it all went down.
First into the Shark Tank is a familiar face from season four, Dave Alwan from Echo Valley Meats. In Dave’s previous appearance in the Shark Tank, the Sharks didn’t make Dave any offers because they questioned his lacking business plan and knowledge of his business. Dave used the Sharks’ critique to fuel his passion for his company, and to gain a better handle on his business plan. Previously, Dave asked the Sharks for $300,000 in exchange for 20% of his company, but this time Dave is asking for $150,000 for 20% equity in his mail order meat division, which he recently separated from his larger business. To butter up the Sharks, Dave brings in an assortment of his meats and other products, and the Sharks are eating it up (literally). While they chow down, Dave explains that his mail order business, which was at about $190,000 in sales pre-Shark Tank has now broken $1.4 million in sales since the show. On that $1.4 million, Dave profited 18.3%, or about $260,000. He also explains that he now knows his customer acquisition cost (something he got dinged for not knowing last time) is $12, but it only costs him $1 to retain that customer. The Sharks are impressed with the improvement in Dave’s understanding of his business financials, as well as his ability to build inventory in down months based on customer purchasing patterns. Kevin is first to make an offer, under the condition that Dave begins selling Wicked Good Cupcakes through his mail order business. Kevin offers $150,000 for 20% of the whole business, both mail order and retail/catering. Robert comes in next with an offer of $300,000 for 25% of the whole business. Kevin then modifies his offer to match Robert’s valuation – $150,000 for 17.5% equity. But Mark, who is a big fan of the company personally, isn’t going to sit this one out. He offers $150,000 for 25% of the mail order business, and wants the option to buy 25% of the other business for the same price down the road. Mark puts the heat on Dave and asks for an answer right away, and Dave seals the deal with a handshake. Congrats guys!
Next into the Shark Tank is Brian Lim, representing his company Emazing Lights. Brian asks the Sharks for $650,000 in exchange for 5% equity in his lighted gloving company. Brian explains to the Sharks that gloving is a hot up and coming sport based on dancers who wear lighted gloves and perform with their hands. The Sharks are skeptical of Brian’s high valuation ($13 million to be exact), but Brian has grossed $13 million in 4 years, and it on track to hit $5.5 million in sales this year. Brian says he got his start burning CDs and selling them door to door, which is just the type of hustling that impresses Mark Cuban. Now, Emazing Lights owns 80% of the global gloving market, but Brian’s biggest pride is the emerging sport of gloving, which he himself pioneered. The Sharks are intrigued, and Kevin’s first to make an offer of a $650,000 loan in exchange for 3% equity, which Brian quickly declines, saying that he’s more interested in the partnership than the money. Daymond comes in next with an offer of $650,000 for 20% of the licensing that he can bring in, but no equity. Then, Robert and Lori offer $1 million for 8% straight equity, because they think they can do better than what Daymond’s offering. Mark then comes in for 5%, and combines forces with Daymond’s original terms. Robert and Lori drop their equity to 5% hoping for a deal, but Brian wants Mark and Robert so the deal is done!
Earlier this season Shark Tank fans met the brother/sister duo behind Pipcorn mini popcorn. After inking a $200,000 deal for 10% equity with resident foodie Shark Barbara, Pipcorn hit a snag with their $1.1 million in sales in the 3 months after Shark Tank left them struggling to fulfill back orders. With Barbara’s help, the siblings finally dug their way out of backorders after two months of hard work, and new distribution centers will hopefully help them stay ahead of orders in the future. Congrats team!
Third into the Shark Tank are Avin Samtani, Rob Peck and Jonathan Kanis, seeking a $75,000 investment in exchange for 12% equity in their company, Aqua Vault. Aqua Vault is a portable travel safe that allows beach and pool-goers to easily secure their valuables while they relax and have some fun in the sun. The Aqua Vault clamps onto any fixed object, and the guys plan on selling the vaults to hotels and resorts, who will then rent the vaults to their guests for a fee. So far, the company has his $87,000 in sales in six months, and is aiming to hit $100,000 by year end. Unfortunately, though, the Sharks are not impressed to hear that the guys were only able to sell 200 units out of their 800-unit deal with HSN, which could spell trouble for their chances of getting an offer. Robert, who was first to offer $75,000 for 25% pulls out after learning that sales have been a struggle, reasoning that he sees more problems than opportunities. The guys scramble to salvage their negotiation by telling the Sharks that they’re in talks with two additional water parks at the moment, and Daymond makes them an offer of $75,000 for 25% equity, but he wants an answer right away. Not wanting to look a gift horse in the mouth, the guys take Daymond’s offer!
Last into the Shark Tank is Catalina Girald, looking for a $500,000 investment in exchange for 5% equity in her premium lingerie company, Naja. Catalina aims to use Naja to empower women, both with beautifully crafted lingerie and by employing single mothers to sew her products, each containing a special message of empowerment onsite. Naja has $145,000 in sales in 5.5 months, and the Sharks are impressed with Catalina’s 72% margins. As they keep digging, they learn that Caralina previously raised money through an $850,000 investment round at a $5 million valuation. The Sharks are skeptical that the business is worth anywhere near that amount, but Catalina shoots back that it’s worth what people will pay for it. When asked how she differs from her competitors, Catalina says she has a completely different supply chain which allows her more flexibility and speed in her production, along with a strong brand, but the Sharks aren’t convinced. Kevin says he’d make her an offer, but would require 50% equity in the company, which is completely non-negotiable to Catalina. There’s no offer in sight for this one, and Catalina leaves the Shark Tank without a deal.
What did you think about this one, Shark Tank fans? Let us know in the comments!