First into the tank were Steve and Roger from Jolly Roger Telephone Co. They are a “pre-revenue company” that’s created robot voices that are designed to discourage telemarketers and scammers.
They had two strikes against them……the Sharks hate investing in pre-revenue companies. They want to hear about the track record of a company and make sure they are gaining traction in their marketplace before investing. The second strike (from an investor’s standpoint) is that they both have full-time jobs in addition to starting their company. Investors perceive them as being able to easily walk away from the new company if things don’t go as planned. No deal here.
Second up were Jenn and Ben from Toybox Labs. Their company makes 3D printers that are designed specifically to help kids create new toys. At $299 per unit, the Sharks were thinking that this was too much for most families to spend on a present for a kid.
Jenn and Ben were former Microsoft employees and had over $300K in sales.
The Sharks were concerned about potential safety issues of the printer and the short attention span of youngsters. Mr. Wonderful was intrigued, however, and ended up making a deal for $150K for 13% equity plus 2% advisory shares.
Tanya from Goalsetter was impressive and gave a great presentation. Her online service enables people to give kids real money (as gifts) that is automatically deposited in a savings account. The purpose is to encourage kids to save rather than spend.
Tanya collects a transaction fee plus 1% of the money under management. She wanted the Sharks to invest $200K for 4% equity. Mr. Wonderful wanted 25% equity.
Despite the fact that they both had tremendous expertise in this type of business, they couldn’t get together. No Deal. (Guest Shark Jamie from Ring told her to prove Mr. W. wrong…..just like he did as a contestant on Shark Tank when he didn’t get a deal and later sold his company to Amazon for $1 BILLION).
Lucinda from Moink had created a business that can benefit owners of small farms. She had generated over $730K in online sales of boxes of meat and produce that she was selling for $159 per box. Although she had slim margins, Guest Shark Jamie made a deal for $400K for 20% equity. They will make an interesting partnership….one knows farming and the other knows technology and business.
OVERALL RATING OF THIS EPISODE………………………………B-