From self-filtering water bottles and full body shark suits, the latest Shark Tank episode featured some great ideas as well as some great one-liners. Here’s how it all panned out:
Liddup alight with $100,000 investment for LED cooler company
First into the Shark Tank were two spirited entrepreneurs seeking a $100,000 investment in exchange for 10% of the unique cooler company. Taylor Gwiazdon and Jayson Sangberg represent Liddup, a company that specializes in coolers with built in LED-lights. Jayson was inspired to create Liddup after he accidentally grabbed a pop instead of a beer from his cooler, because it was too dark for him to tell the difference. Some men would just switch to bottled beer, but Jayson saw an opportunity for a new idea. While the Sharks seem to enjoy the guys’ story, they’re concerned about the $1 million valuation. Jayson and Taylor are hardly rattled, they just admit that they “had to start somewhere.” Robert seems to like the idea, and he’s first to put in an offer: $100,000 for 25%, including his ties to a friend– a 20-year veteran of the cooler business. Kevin makes an offer next, going his usual route of royalties over equity: Kevin’s in $100,000 for 33% of all royalties. The men don’t seem to like the idea of giving up so much equity, so they take Kevin’s offer! They leave the tank just in time for Mark to quip: “Kevin, you just got liddup by Liddup!”
Farm-fresh Echo Valley Meats seek a $300,000 investment
Second into the tank is a farmer from Peoria, Illinois, Dave Alwan. Dave enters the tank seeking a $300,000 investment in exchange for 20% of his farm-fresh meat company, Echo Valley Meats. After a feeding frenzy– err, taste test– the Sharks all seem impressed by the quality of Dave’s meats. Enticed, they start digging into the company’s financials. Dave explains that he sold $1.25 million last year between retail, catering, and mail order… however he only netted a $20,000 profit after paying himself. While his products are 42% cheaper than his industry competitors, the Sharks are concerned by Dave’s lack of knowledge when it comes to customer acquisition costs. Still, Dave tries to convince the Sharks by explaining that he wants to put their investment towards better marketing on a national level. The Sharks don’t like the idea of letting Dave experiment on marketing efforts with their money, so they all bow out.
RootSuit owner, Colin Grussing, seeks $100,000 for 15% of bodysuit company
Next into the tank is Colin Grussing, founder of the full bodysuit costume company, RootSuit. Colin asked the Sharks for a $100,000 investment in exchange for 15% equity in his company. Colin started RootSuit in 2008, and he’s experienced pretty impressive success in the past few years. Last year Colin sold 10,000 units, mainly through e-commerce, which totaled about $140,000 in profit. While Kevin says he doesn’t see the potential, Daymond is convinced otherwise: he’s in at $100,000 for 50% with the contingency that Colin has to get RootSuit into retail channels. Colin says that he’s love a deal with both Daymond and Mark, but Daymond doesn’t want Mark in on his deal. Daymond’s offer is rescinded when Colin doesn’t make a decision, and his last hope, Mark, takes himself out of the running, telling Colin that he doesn’t seem to need a partner. Without a deal, Colin (and his crew of RootSuit clad friends) leave the tank.
Shark Tank Success Story: The Coop
Earlier this season, Shark Tank fans met Juliet and Lucinda, two moms from Los Angeles who started The Coop, a fun place for children (and their parents) to hang out. After making a deal with Barbara, The Coop is now well on its way to $1 million in sales, and soon expanding in Miami, DC, and more locations in LA. In addition to The Coop, the women have launches Coop Parties To-Go (from a party truck), as well as Coop Crates that are packed and shipped. Congrats ladies!
Gobie H20 feels the squeeze for a $300,000 investment
Last into the Shark Tank is Rusty Allen, representing his self-filtering water bottle company, Gobie H20. Rusty asks the Sharks for a $300,000 investment in exchange for 10% equity in his company. Rusty explains that Gobie is the best of its kind, as the built-in filters can eliminate 99.9% of contaminants. While the Sharks are quickly impressed with the unique design (one side of the bottle is hard, and the other side can be pressed to make drinking and holding the bottle easier), they’re less than impressed with Rusty’s presentation, which seems to be jumping all over the place and avoiding simple questions. When asked about his financials, Rusty explains that the bottles cost $10 to make and retail for $30. He has $285,000 in revenue in 17 months, and that’s with sales of only one color bottle (he’s now expanding the options to include other colors). While the Sharks tell Rusty that he’d do better to focus on the bottle’s streamlined design, he continually returns to the same selling point: 99.9% of contaminants eliminated through filtration. Still, the company’s lack of debt and Rusty’s determination make the investment appealing for Daymond, who offers $300,000 for 40%, with the contingency that they get Gobie H20 into a big-box retailer. Rusty counters at 20%, but Daymond isn’t budging. Rusty asks the other Sharks if they’d like to come back in, but they’re staying out. Finally, after much back and forth, Rusty takes Daymond’s deal! After Rusty leaves the tank, Kevin explains to Daymond how he would’ve handled negotiations differently: “I was waiting for you to get out so I could get into the royalty game with him and squeeze his head like a teenage pimple.” Uh, thanks Mr. Wonderful.