Every week I evaluate the performance of the four entrepreneurs appearing on the Shark Tank TV show. The best contestants receive Sharky Awards and the rest get Shark Chum.
Platinum Sharky Award…..Phil from Uni Key
I don’t think I’ve ever seen a Shark Tank contestant get offers from all five Sharks…..until this episode. Phil’s company developed ”access control technology” that allows people to replace their house keys with an app on their mobile phone.. Really cool stuff!
Phil’s presentation was thought-provoking. The Sharks bought into his concept immediately. He came across as a bright, “make it happen” kind of guy. The offers came fast and furious. Phil said he was trying to get Black & Decker to buy into his proof of concept project, and the Sharks viewed this as a critical step in growing his business.
Having dealt with Black & Decker in a previous life, I can tell you that based on my experience, they can be difficult to deal with. They do not always subscribe to a win-win outcome (they win, you don’t), there can be lots of political hurdles to overcome, they can be slow to act, they change managers frequently, and they don’t like vendors using their name as a customer (Note: this behavior is not uncommon among large companies). These are not show stoppers, but will be challenging for Phil and company.
Mark Cuban and Mr. Wonderful, Kevin O’Leary, offered $500K for 40%. Phil offered 2 seats on his Board of Directors to close the deal. At the segment’s end, Kevin whispered to Phil not to negotiate with B&D without him……maybe Mr. Wonderful’s take-no-prisonors approach will win the day.
Gold Sharky Award…….Gary from REMYXX
Gary showed great passion and composure during his presentation. His company sells sneakers that are completely recyclable.
Gary made a few tactical errors. First, he didn’t ask for enough money to get to the next level (only asked for $50K). Second, he had too many SKU’s (Stock Keeping Units) to become profitable in the short-term. He probably should have come in with 6 instead of 20 and expanded his product line after getting an investment.
Despite these errors, Gary got an offer from Daymond but had to give up 80% equity to get $50K. He accepted the offer and felt Daymond was the right partner for him.
Shark Chum….Ryan from Cougar Limited has a girl friend who is 10 years older than he is who inspired for his “energy drink for women”. He claimed his concoction makes Cougars look younger. Shark Barbara said it tasted like chalk. His girl friend was hot. His business was not.
Frank and Dabray from Nitroforce were selling an excercise machine that looked useful, but was too expensive ($1300) and had too many moving parts. They valued their company at $2.5 million despite only selling 26 units. The Sharks ate them up in record time. No deal…….back to the gym.