With this season of Shark Tank 2/3 of the way complete, the energy is high, and the stakes are higher. From nut butter to anti-nausea wristbands, the latest episode of Shark Tank featured some memorable entrepreneurs and some great Shark one-liners. Missed the latest action in the tank? Here’s what happened:
Nuts ‘N More seeks $250,000 for high-protein peanut butter company
First into the Shark Tank were Peter Ferriera, Dennis Iannotti, and Neil Cameron, founders of the sugar-free fortified nut butter company, Nuts ‘N More. The men asked the Sharks for a $250,000 investment in exchange for 20% equity in their company. Nuts ‘N More was created by fitness and nutrition experts who wanted a delicious way to add more protein, omegas and fibers into their diets. And thus far, the business has done well with $100,000 in sales in just five months. So far, so good. However, the Sharks are less impressed by the nut butters’ hefty price tags: $10.99-$12.99 per jar, which cost $2.90-4.00 to manufacture. The men know they have an expensive product, but they justify the price point due to the high protein content and say their product is more comparable to protein powder than to standard peanut butter. While Barbara likes the idea, she says she’d need 80% of the company to justify the $250,000 investment. Her less-than-exciting valuation leaves the door open for Mark to put in his own offer: he’s in at $250,000 for 35% under the contingency that the men get $75,000 up-front and then the balance of his investment when they need to fund future purchase orders. Robert puts in his offer next: $250,000 for 50%. The men, understandably, like Mark’s offer more, and they counter at 30% for Mark’s tiered approach. Robert’s willing to join Mark’s offer, but only if the deal happens at 35%. Without a second thought, Nuts ‘N More takes the deal at 35% with Mark and Robert!
Shark Tank Success Story: SurfSet Fitness
Earlier this season, Shark Tank fans met the couple behind SurfSet Fitness, a new fitness trend based on a workout on the water: surfing. Since making a deal with Mark Cuban, SurfSet Fitness has been traveling the country in their tour bus and inking a deal with Crunch Gym to roll out SurfSet classes in major locations. Pre-Shark Tank sales were around $190,000, but in the 2 months since the show they’ve done $500,000. Congrats!
Accupressure wristband company, PsiBands requests $250,000 investment
Next into the Shark Tank was self-proclaimed mompreneur, Romy Taormina, representing her company, PsiBands. Romy asked the Sharks for a $250,000 investment in exchange for 10% equity in her company. PsiBands were inspired by Romy’s frequent and debilitating nausea, especially during her pregnancy. PsiBands are acupressure wristbands that are functional and waterproof, and designed to place pressure on a nerve in order to relieve feelings of nausea. In 12 months, Romy has already sold almost $1 million of product in more than 6,000 retail locations. But with the little deeper digging, the Sharks saw the not-so-bright side of Romy’s finances. The company achieves an 11% net profit, but Romy is also taking a $100,000 salary. Furthermore, Romy includes years of not taking a salary in her $600,000 of debt that the company currently has. Regardless, Kevin places an offer of $250,000 for 40%, which Romy is quick to dismiss. Kevin bows out in his standard fashion (“You’re dead to me”) and Romy leaves without a deal.
Neo Mag Light tattoo remover requests $80,000
Third into the Shark Tank was certainly one of the most unique products ever featured in Shark Tank: Neo Mag Light, an at-home tattoo remover. Founders/owners Nick Gonzales and Kevin Mack asked the Sharks for an $80,000 investment in exchange for 20% stake in their company, NEO Innovations. Based on their explanation, the science behind the Neo Mag Light seems simple: the intense pulse light device uses a 50 watt bulb to target dark tattoo pigments and break them up without breaking the skin. Daymond was quick to interject, “I’m black. Will I explode if I put that on me?” Nick and Kevin laugh and explain that no, the device is actually very simple to use and adjustable based on skin tone and the tattoo in question. So far NEO Innovations sells about 1-2 units a day and is on track to sell 1,200 units this year. While the intense light pulse process is FDA-approved, this particular device is not, which leaves the Sharks with a lot of questions and concerns about liability. With no way to calm the Shark’s legal fears, NEO Innovations walks away without a deal.