No deals were struck on this episode of Shark Tank. There was one missed opportunity for the Sharks, however. This company is deserving of a Sharky Award.
Platinum Sharky Award…….Brooks, Tanner, and Taylor from Proof Eyeware
These three brothers have created some trendy wood grain sunglasses that are manufactured in the family’s wood products plant in Idaho. In the last 12 months they have sold $433K of their sunglasses and anticipate selling $850K in the next 12 months.
They gave a great presentation, had a command of the numbers, demonstrated great work ethic, and were offering 10% equity based on a reasonable valuation ($1.5 million). I also liked the fact that they had a background in the family business and had “sawdust in their veins” as they put it.
I think the brothers committed an error in the negotiating process, however. When they countered Shark Robert, they asked for more money for LESS equity. Even though the numbers supported their counter offer (a one million valuation or 1.2X next year’s sales), no investor wants to be asked for two concessions simultaneously. They should have asked for more money OR less equity but not both. I predict these guys will succeed without the Sharks, however.
Shark Chum Awards…..Brooke & Brittany from Addison’s Wonderland have created distinctive children’s bedding which sells online for up to $1,400. Their offering is clearly aimed at the “Top 1%” and has limited mass appeal. The Shark’s advice was to stay small, don’t rush it, and make it a highly profitable business. Good advice.
Steve from Muddy Water Camo were unable to lower their valuation based on previous 3rd party funding at a valuation of $2.5 million. They were seeking $150K for 5% of the business from the Sharks (a $3 million valuation). The Sharks were thinking their valuation should be less than a million based on limited sales history. No deal.
Megan & Aimee from Hip Chicks had some cool women’s jeans that sold for $187 each. Unfortunately, they had chosen one of the most competitive industries in which to compete. As Mr. Wonderful put it, “Your probability of success is zero.” As heavy-handed as he was, I believe he’s right.
CONGRATS TO TWO PAST SHARKY WINNERS!!!
Pat McCarthy from Liquid Money received a Sharky Award last year even though no deal was made. He was featured in a Shark Tank update and his sales have gone from $200K to $1 million since appearing on the show!
I was at the Lyric Theater in Stuart, Florida last night and noticed them selling Copa Di Vino’s wine by the glass. I bought a Chard…..very good James Martin! Things must be going very well for you (note: he never got a deal from the Sharks either).