The first episode of Season 5 of Shark Tank had some lively exchanges among the Sharks, but the entrepreneurs’ presentations were not particularly impressive. That said, one of the entrepreneurs stood head and shoulders above the rest and will win the first Sharky Award of Season 5.
Platinum Sharky Award………Cole and James from Sweet Ballz
These two captured the Sharks’ attention when they told them they had sold $700K of their sweet cake balls in the last 90 days. Actual sales impress potential investors more than any other statistic.
They both had prior experience in the food industry and did a nice job presenting. Each of the five Sharks was interested and made an offer. They came in looking for $250K for 10% equity and left with $250K for 20%…..nicely played.
Shark Chum…..Josh from Postcard on the Run did manage to get to get one offer from Robert. Josh accepted it, but he had no choice. He had previously raised $1.6 million from Silicon Valley investors but only had $185K left. At the current “burn rate”, he would have run out of money within 60 days. Robert’s $300K investment may keep him afloat for a few more months, but Josh needs a bigger player to buy the entire company to have this deal make sense.
Lynnae and Ali from Lynnae’s Gourmet Pickles did a nice job presenting their business to the Sharks but it is simply too early to seek outside investment. With Sales of $144K of Grandma’s sweet pickles, they aren’t big enough to get investors excited at this time. It is also a very small market……”specialty sweet pickles”.
Richard and Albert from Rolodoc are two doctors who wanted to create a twitter-like Social Network for doctors and their patients. They got off to a good start when they demo’d their product and showed a user profile of Mr. Wonderful (Shark Kevin O’Leary) with a medical condition of “not having a heart”. That was the highlight of their presentation. It then went downhill so quickly that Mark Cuban declared it “the worst presentation he had ever seen”. It was a made-for-TV moment, but they had trouble answering the basic question, “How are you going to get Doctors to use it?”.