Tonight, business moguls Mark Cuban, Daymond John, Kevin O’Leary, Robert Herjavec and Lori Greiner were presented with a series of business pitches in ABC’s Shark Tank. Each pitch featured entrepreneurs who were hoping to start, grow or save their up-and-coming businesses. The entrepreneurs offer a certain percentage of their ventures for a given monetary amount. The sharks are able to negotiate the equity percentage, but must be willing to give the monetary amount that they were presented with, in order to strike a deal.
So here is a recap of tonight’s pitches:
The National Association of Bubble Soccer
Asking: $160,000 for 10%
The first pitch of the night is by John Anthony Radosta, who is hoping to share the latest craze in sports all over the world: Bubble Soccer. Bubble Soccer is a “sport” where players are encased in giant blown up bubbles and essentially play soccer while bouncing around.
The sharks were completely entertained by the demonstration and a few even give the game a shot. Afterwards, John explains that there are two markets: the players who just want to play once for the novelty and the players who are interested in joining the ever-growing league. Currently, his company has received over $355,000 in revenue and is on track to do $430,000 this year.
Unfortunately, the sharks have a hard time taking the pitch seriously. All of the sharks are unable to see how John is going to make a scalable business and are confused by his current business model. Thus, all 5 of the sharks drop out and John leaves without a deal.
Asking: $200,000 for 10%
Brazil-native Junea Rocha and her husband Cameron MacMullin created a business around the Brazilian delicacy, cheesy bread. Brazi Bites is cheese bread that is gluten free, which is stored in the freezer and baked in the oven before consumption.
Currently, the product is carried in over 700 grocery stores, including Whole Foods. They have been growing stably for the past 3 years, and are on track to earn $1 million this year.
Daymond is the first shark to show interest, as he explains his success with a boneless-ribs business he invested in through Shark Tank. He offers them $200,000 for 25%. Afterwards, Lori offers them $200,000 for 25% as well.
Kevin “has some fun” with the other sharks and offers them $200,000 for 15%.
Unfortunately, the owners reveal that they are currently $200,000 in debt and only own 50% of the company. Thus, Robert and Mark drop out of the deal.
Kevin decides to offer for 12.5%. Meanwhile, Lori decides to revise her offer to 20%, but is quickly matched by Daymond. Lori then proceeds to go to 18%. The owners try and get Lori to agree to 15%.
However, in the end they make a deal with Lori at $200,000 for 16.5%.
Asking: $150,000 for 15%
Umano is a clothing company created by brothers Jonathan and Alex Torrey. The business creates adult clothing that has children’s artwork on it. For every shirt purchased, Umano donates a backpack or school supplies to a child in-need. The brothers are hoping to connect their customer with “up and coming artists,” aka kids.
Currently, they partner with schools overseas and in Athens, Georgia. They were able to get their products into Bloomingdales based on the social efforts behind the brand. In the long run, the brothers want to expand into a lifestyle brand that includes leggings, dresses, etc.
Kevin expresses that he feels the company is based on child labor. However, Jonathan and Alex explain that their company is determined to focus on being a ethical social enterprise, even as they continue to expand. Kevin calls the company “embryonic” and drops out. Robert tells them they are in a tough business and drops out as well.
Lori is impressed by their “scrappiness” and offers them $150,000 for 25%. Based on his experience in the clothing industry, Daymond offers the entrepreneurs $150,000 for 33.3%. Mark tells them they need help with financing their inventory and with their online store. He ends up offering them $150,000 for 20%. Mark invites Lori into his deal.
In the end, Jonathan and Alex close a deal with Mark and Lori at $150,000 for 20%.
Asking: $50,000 for 20%
The last pitch of the night is from Glen and Tracie Burress of Sock Tabs. Sock Tabs is a business that is looking to be the solution to missing socks. The product clamps your socks together so they have no way of escaping or “being taken by the sock monster” when going through the washer and dryer.
After an amusing pitch that included sock puppets, Glen and Tracie hand out Sock Tabs to the sharks. They are little devices that are worn throughout the day so that they are ready for use when you throw your socks into the laundry hamper.
In 6 months, the entrepreneurs have sold a little over $20,000. Currently, 60% of their sales are through their online site, and the rest is from the limited stores that carry their product.
Unfortunately, Lori explains that she can think of several products that are direct competitors to the Sock Tab, therefore she drops out. Robert also drops out, as he doesn’t feel any connection with the product.
Daymond tells Glen and Tracie that he can’t invest in the company, as he is part of a sock company that makes money off of people losing socks.
Mark tells the entrepreneurs that he can’t match their enthusiasm about the product, so he also drops out of the deal. Shortly after, Kevin advises Glen and Tracey that they shouldn’t jeopardize their fulltime jobs and also drops out.
However, just as Glen and Tracie begin walking out of the tank, Daymond announces he is back in at $50,000 for 30%.
Thus, Sock Tabs walks out with a deal with Daymond John.
Unfortunately next week is a rerun of Shark Tank, but the show will be back with a new episode on December 4th.