Everyone knows that Friday night means Shark Tank school is back in session! We love hearing from fans that they consider Shark Tank their own personal business school, with lessons ranging from valuing your business to negotiating investment offers. Tonight’s entrepreneurs certainly taught Shark Tank fans a few different lessons. In case you were absent from the latest learning session with the Sharks, here’s how it all shook out.
First into the Shark Tank is Max Gunawan, looking for a $250,000 investment in exchange for 8% equity in his company, Lumio. Lumio is a revolutionary book-like LED light that runs on an 8-hour battery. Simultaneously modern and timeless, Lumio quickly captures the attention of the Sharks. Lumios can easily be moved around the house, and Max explains that the outdoor market is also huge. So far, Lumio has done $1 million in sales in it’s first year, which began with a $580,000 launch on Kickstarter. Each Lumio costs about $65 to produce in China, and is sold for $190/unit, but Max is hoping to bring manufacturing costs down to $50. Max says he plans to build the Lumio brand, rather than going straight to major lighting distributors, though he is interested in possibly working with Design Within Reach. Max is also working on a new idea, a miniature Lumio that would also recharge electronic devices. Robert is first to make an offer, and he’s in at $250,000 for 10%. Kevin swoops in next, offering $250,000 in exchange for a $7/unit royalty until he recoups double his investment ($500,000), at which point the royalty goes away but he maintains 4% equity. Mark comes in next with a $500,000 investment in exchange for 16% equity, reasoning that he can help Max build inventory for when Shark Tank airs. Lori comes in next at $250,000 for 12% equity with a $250,000 line of credit, followed by Daymond who offers $750,000 for 20% equity and a $10 million line of credit. With five offers on the table, it’s anyone’s game… until Robert modifies his offer to $250,000 for 10% equity. With an offer close to his original ask on the table, Max accepts Robert’s deal!
Last season, Barbara and Lori combined forces to make a deal with Hold Your Haunches Shapewear, while the male Sharks stood by and mocked the company’s proposition. In the year before entering the Shark Tank, Hold Your Haunches did $165,000 in sales, and in the 6 months after Shark Tank they had already reached $1.5 million in sales and received the Georgia Grown award at the Georgia National Fair. Congrats ladies!
Next into the Shark Tank are Justin Lee and Neil Joglekar, founders of NapWell, looking for a $100,000 investment in exchange for 10% equity in their company. The duo are a medical engineer and a medical physicist, who claim to have invented a mask to “naptimize” a quick snooze session. NapWell uses lights to mimic a sunrise to wake wearers gradually and prevent post-nap headaches. NapWell began thanks to a successful crowd-funding campaign on Kickstarter, where customers raised more than $50,000. Still, the Sharks aren’t convinced that NapWell is revolutionizing anything. Lori thinks the problem isn’t with waking up, it’s with going to sleep. And the other Sharks think it’s just too early for an investment. This is no dream come true for NapWell, and the guys leave the Shark Tank without an offer.
Next into the Shark Tank is Kristina Guerrero, looking for a $100,000 investment in exchange for 20% equity in her company, TurboPups. While on an extended ski trip with her trusty pup, Kristina realized during a snack break that there wasn’t a snack food for furry sidekicks. Kristina set to work making TurboPups out of 100% human grade ingredients, in order to be safe for sensitive goody stomachs. Each TurboPup bar is 250 calories, a complete meal for a pet, not just a treat. Kristina had about $4,000 of sales in her first year, and $7,000 in her second. She has been successful in marketing TurboPup to outdoors stores, rather than entering the crowded and competitive pet store market. The Sharks seem to like Kristina and her dog, Odin, but they’re on the fence about whether or not TurboPup is investable yet. Daymond takes the plunge with an offer of $100,000 for 40%, which Kristina unsuccessfully counters at 30%. With a little coaching from the other Sharks, Kristina counters again at 35% and the deal is done!
Last into the Shark Tank is Joe Chay, the man behind Bello Verde custom clothing for men. Joe asks the Sharks for a $360,000 investment in exchange for 6% equity. A man who is clearly passionate about men’s suiting, Joe left Astor & Black menswear company to start Bello Verde, which creates the ultimate luxury suiting experience for its customers. With endorsements from UFC World Champion Urijah Faber and actor Dean Cain, Joe isn’t kidding about catering to a high-caliber clientele. After starting Bello Verde, Joe bought Astor & Black for $405,000, acquiring the company along with its $1 million in inventory and web system worth $750,000. Joe has a variety of revenue stream plans, but the Sharks are confused by all of Joe’s business ventures, not to mention the two different brands. But fashion mogul Daymond claims to have an offer so sweet it’ll give Joe a cavity: he’s in at $360,000 for 33%. But when Joe counters back at 7%, it’s clear the two aren’t going to find common ground. Joe offers a bottom line of 8%, but Daymond isn’t going a penny below 25%. Unfortunately this negotiation isn’t tailored for success, because Joe leaves the Shark Tank without a deal.
With did you think of this latest episode Shark Tank fans?