Shark Tank continues trucking right along, with this latest episode featuring everything from ribbon sandals to solar printing kits. The Sharks are just as vicious as ever, and tonight was no exception. Want to know what happened in the latest episode of Shark Tank? Read on to find out.
First into the Shark Tank were Ben and Liz Bohannon, the couple behind Sseko Designs shoes. The Bohannons asked the Sharks for $300,000 in exchange for 10% equity in their company. Sseko Designs produces boho chic sandals that can be tied in hundreds of different ways. But more impressive than the shoes themselves is the story behind the company. Liz was inspired to create Sseko Designs after a working at a youth development organization in Uganda. There, she met many women with backgrounds of extreme poverty. These women were graduating from high school and testing well enough to enter college, but they simple couldn’t afford to pay for school. The company began when Liz taught three women how to make sandals, and employed them for 9 months. Now, Liz and Ben have helped 47 women through the employment with Sseko, and 100% of those women have gone on to university. But what about financials? The company has made $3 million to date. They were profitable from 2009-2012, but did a debt round of investments for $250,000 in 2012, and operated at a $90,000 loss in 2013. In 2014, the couple is aiming to hit $1.9 million in sales, but will lose money to add additional employees to their sales force. While the Sharks like the company’s backstory, they’re struggling with the valuation based on a 2.7 multiple of revenue, not profit. Barbara even compares them to Grace & Lace, one of the most successful apparel/accessory companies in Shark Tank history, but Barbara says they’re lacking the profit numbers to truly compete. The Sharks also foresee issues with scalability, and for those reasons, all of the Sharks are out and the Bohannons leave the Shark Tank without a deal.
Last season Shark Tank fans met the guys behind The Paint Brush Cover. After making a deal with Lori, The Paint Brush Cover went from $35,000 in sales to $1.5 million, have hired 18 employees to work out of their own warehouse, and even introduced a roller cover. Congrats team!
Next into the Shark Tank is Mark Peterson, representing his company Gold Rush Nugget Bucket. Mark is hoping to strike it rich to the tune of a $60,000 investment in exchange for 15% equity in his company. Gold Rush Nugget Bucket is a gold panning kit that concentrates the gold in the bucket using a proprietary filtering system. Mark claims the bucket works so well, he’s even found gold in san he’s purchased from Home Depot. In 17 months, Mark has hit $290,000 in sales for the bucks he sells for $99.95 at a 70% profit margin. He invested about $192,000 in the company himself, most of which went to the molds used to manufacture the buckets. The Sharks are interested, and Kevin is first to make an offer of $60,000 for 50%, followed shortly by an offer from Robert of $60,000 for 25%. The deal is done with Robert!
Next up is C.C. Conrad and her company, BoobyPack, a fanny pack for your rack. C.C. asked the Sharks for an $80,000 investment in exchange for 20% equity in her company. BoobyPack is essentially a sports bra fanny pack that allows wearers to easily store the essentials in a zippered compartment built into the side of the tops. The BoobyPacks cost $7.17 to make and they’re sold online for about $55 each. The company began as a Kickstarter project, which doubled its fundraising goal of $15,000 to make $32,000 in just 30 days. From there, BoobyPack sold $10,000 on its first day of sales, and it’s been on the upswing ever since, now sitting at about $167,000 in sales. C.C. says that although the bulk of their sales are online, she’s don’t minimal SEO work but does plan to begin introducing a Google Ad Words campaign. Looking to Mr. Wonderful, C.C. thinks BoobyPack would be ripe for a licensing play, but needs a Shark’s help to make that happen. Robert makes an offer of $80,000 for 30%, and Kevin amends his original offer to $80,000 for a $10/unit royalty and 5% equity after he recoups $320,000. C.C. counters Robert at 25%, and when he won’t budge from 30%, Barbara pulls a famous Mark Cuban swoop and takes the deal at 25%. Deal!
Last into the Shark Tank is Jesse Genet, the woman behind Lumi Solar Powered Printing, seeking $250,000 for 5% equity in her company. Lumi is an app that turns an image into a negative that users can print out and then use a sunlight activated dye to permanently dye the fabric in the sun. Jesse originally acquired the company for $50,000 using money from an angel investor, and now she’s looking for a Shark to take Lumi to the next level. Lumi had $1 million in sales in the last 12 months, but has profited only $40,000 that Jesse re-invested back into the company. The kits cost $6.49 to manufacture, and Jesse sells them for $39.99. She’s projecting $2.5 million in sales in 2015, thanks to a track record of doubling sales every year. Lori says she likes Jesse, but not the valuation, so Kevin is first to make an offer of $250,000 for 50%. Or, he’s lend her $250,000 at an 8.5% interest rate for 36 months, along with 12% equity in the company. Lori joins Kevin’s deal, and following a counter by Jesse, Lori and Kevin amend their offer to a $250,000 loan with 8.5% interest and 5% equity. Jesse isn’t interested, because she reasons that she could get that same loan elsewhere, and she doesn’t want to give up 5% for a loan. Robert makes a straight equity offer of $250,000 for 15%, but Jesse isn’t willing to part with that much equity, so she leaves the Shark Tank without a deal.
What did you think about tonight’s episode fans? Let us know in the comments!