Each season of the Shark Tank TV show, I analyze the performance of the entrepreneurs (contestants) and give Sharky Awards to the best entrepreneurs. The weakest entrepreneurs win the Shark Chum “Award”.
This week’s episode was not one of the better Shark Tank episodes. Hopefully next week’s show will return to Shark Tank standards.
Platinum Sharky Award……Maria and Veronica from Buggy Beds
These two did a good job presenting their product (an early detection device for bed bugs) and describing the interest shown by various customers. One of the factoids they mentioned was that they previously turned down $5 million from a potential acquirer. It was not clear why they were looking for a small fraction of that from the Sharks.
None-the-less, they got the Sharks whipped into a feeding frenzy and they all went in on a $250K offer for 25% of the company ($50K each). This was a Shark Tank first…..each Shark participated in the same investment.
Gold Sharky Award…..Jay from Bev Buckle
Jay had sold about 4,000 of his beverage carrying belt buckle and generated $340K in Revenue.
He turned down Robert Herjavec’s offer of $50K for 75% of the company (way too much equity to give up). Mr. Wonderful offered $5oK for zero equity but a 12% royalty on every unit sold….this sounds good, but any royalty over 6% is too much to give up at a time when you want to generate (and keep) cash.
Jay eventually accepted Barbara’s offer for 51%. Good move.
Shark Chum…. Derek from CoatChex had generated no revenue with his business. Mark Cuban described his idea as a “horrible, horrible, horrible idea”. Despite this rant, Derek somehow got a $200K offer from Mark and proceeded to turn it down after talking to his college professor/business partner on the phone. I give that decision a grade of F.
Todd from the Body Walking Institute didn’t convince the Sharks he was passionate about his business. Turns out he is more passionate about his triathlon career. He received no offers but did manage to give Barbara Corcoran a great massage during his pitch.