To use a baseball analogy, the entrepreneurs appearing on tonite’s show didn’t hit any homeruns…….but they did have two solid singles. Jeff & Dusty from Shell Bobbers and Nate from The Mission Belt Company are the recipients of this week’s Sharky Award.
Platinum Sharky Award…….Jeff & Dusty from Shell Bobbers
These two did a solid job presenting their unique fishing bobber. They had previously run a very small “proof of concept” test and sold 440 units which (only) generated about $1000 in Sales Revenue. This wasn’t enough proof to interest the Sharks….except for Mark Cuban.
Mark was so impressed with these two he proclaimed, “You’re out there hustling and doing everything exactly right!” Mark is the type of investor who will sometimes invest in an entrepreneur he believes in, even if they don’t have a long track record of success. He put his money where is mouth is and invested $80K for a 33% equity stake.
Gold Sharky Award…..Nate from The Mission Belt Company
I thought Mark was going to do it again…..this young man was a clone of Mark when he was the same age. Nate sold his “belt with no holes” door to door, he had tremendous confidence in himself, he ate PB&J’s to conserve cash for the business, etc. He truly had great focus and passion.
But in the end, Nate took an offer from Daymond. Even Mark had to admit Daymond would be a better partner for Nate due to his retail and branding expertise and contacts. Nate even negotiated a slightly better deal by getting Daymond to lower his required equity stake from 40% to 37.5%.
Shark Chum Awards…….Tracey and Danielle from Wicked Good Cupcakes have a nice product that is shipped in mason jars. They took a deal from Mr. Wonderful that will cost them too much…..both in the short-term in the long-term. They agreed to initially pay a royalty of somewhere in the neighborhood of 15-20%. That will take too much cash away from them and their business……5-10% is more typical. Once Mr. W. gets his initial investment back, they then agreed to pay $.45 per cupcake in perpetuity. That’s a lot of cake!
Aaron from Tremont Electric is simply brilliant. His Personal Energy Generator concepts and his portfolio of clean energy ideas/patents is impressive. However, Aaron needs a business oriented partner in the worst way! Perhaps then he wouldn’t have made the mistake of asking the Sharks for a $2 million investment without having a strong track record.