Some great entrepreneurial stories tonite. Sharky Awards were given to two entrepreneurs for excellent performances…..two received Shark Chum “awards”.
Platinum Sharky Award…..David and Nique Mealey from Back 9 Dips
As you may know, I love Husband and Wife entrepreneurial teams…..and these two were no exception. David had been layed off from his job and Nique was expecting their second child in two weeks. Their backs were against the wall and they were fighting for survival. Their blended chicken dip had generated $400K in sales and they had invested $150K of their own money to start the business. They were fully committed!
Their focus, determination, and passion were on display for the Sharks to see. Daymond was emotionally touched but didn’t see this as a good investment for him.
Sharks Robert and Lori ended up partnering on an investment of $150K. Robert summed it up nicely when he said….”Everyone needs a chance”.
Gold Sharky…..The Fleming Brothers from Bag Bowl
These two were the “wild and crazy entrepreneurs” of Season 4. They gave a fun and memorable presentation, but I couldn’t help but think they were trying to put one over on all of us with their little plastic gizmo that “turned a bag into a bowl”.
They were glib and funny…..and having a great time. They crossed the line once when they called Mark Cuban, “Cubes”, but somehow their schtick worked. When Daymond stated that they had no sales, no orders, and no patent, they categorized Bag Bowl as a “pre-revenue start-up”. It is extremely important to note that there is a language investors speak and entrepreneurs need to learn this before pitching their ideas. What sounds better, “We have no sales or orders”, or “We are a pre-revenue start-up”? Entrepreneurs need to learn the language of investing before presenting.
Shark Chum……Marvin Philip from Lifter Hamper had a nice product but no sales. He was sent packing by the Sharks. It was clearly too early for him to seek a third-party investment. Shark Robert summarized by saying, “You need to knock on some doors yourself and get some real orders”.
Henry Penix from Zomm had over $5 million in sales of his “cell phone locator” but couldn’t explain why he was running out of money. The Sharks drilled in and found out he had over $2 million in unsold inventory due to poor forecasting. As the Inventory guru Ollie Wight once said, “Sales Forecasts fall into two categories….lousy and lucky”. This one was not lucky.
It is also important to note this would have been a “down round” for Henry. A previous investor put up $5 million at a $30 million valuation. This would have been a $20 million valuation. This was another red flag for the Sharks.