Very entertaining episode this week. Two of the entrepreneurs were funded by the Sharks and two were eaten alive. This week the two Sharky Awards for Entrepreneurial excellence go to:
Platinum Sharky Award…..Raven Thomas, The Painted Pretzel
Raven got the deal she asked for…..$100K for 25% of her chocolate pretzel company. She had $75K in annual Revenues and had booked an additional $140K which couldn’t be delivered by her due to lack of resources.
But Raven almost blew it. She was very fortunate that she was given a second chance by the Sharks. When she was asked, “Why should we invest (in you)”, she said the Sharks should invest in her because she had two children, needed the money, and she liked making pretzels. This was a very weak answer. When asked the same question again several minutes later, she disclosed that she had just been given an order for $2 million from Sam’s Club! This is what investors want to hear. Like it or not, the entrepreneur’s personal life is irrelevant to them.
Mark the Shark saw dollar signs and made her the offer she asked for. Mark said he could sell these pretzels at Mav’s games and at Landmark Theatres…..both of which he owns.
Gold Sharky Award……Rick Hopper, Reade Rest
Rick had personally made over 100,000 of his magnetic eyeglass holders. He had actually invented this handy item, but found out later that there was a patent on a similar product. He made the best deal since the NY Knicks called up Jeremy Lin. He bought the patent for $5,000. Without it, he would not have gotten a $150K investment from Shark Lori for 65% of his company. Lori will put this product on TV and leverage her QVC connections. Rick will make out just fine with 35% of something very big vs. 100% of something very small.
Shark Chum……Jared Joyce from Five-Minute Furniture had a compelling demonstration of his easy-to-assemble furniture. But he tried to act like Donald Trump and he just couldn’t pull it off. The Sharks hated him! Shark Robert told him straight out that he didn’t trust him and Shark Daymond called him “Slick Willie”. Jared is very smart, but not a likeable fellow. He also hadn’t returned any money to his previous investors during his seven year history. He had a chance to return (to his previous investors) the $250K the Sharks offered him, but he turned it down. As Shark Kevin pointed out, seven years is an eternity for the typical investor…..he/she needs a return well within this time frame.
Ryan Naylor from Esso Watches was abused by the Sharks. Mark loudly denounced his positive ion watch as a “joke and a scam” and continued to chant this over and over during Ryan’s presentation. Once again, loveable Shark O’Leary played the nice guy and complimented Ryan because he could “take a beating ….”. For a minute I thought Mr. Wonderful was going to deliver a bad Timex joke by adding….”and keeps on ticking”, but he spared us.