Last night Mark Cuban showed why he is so successful in business. He was the only Shark interested in investing in PowerPot, the clear winner of this weeks’ Sharky Award.
Platinum Sharky Award Winner…..David and Caleb from PowerPot
These two impressive young engineers had already raised $126K on KickStarter (Crowd Funding platform) before entering the Shark Tank. They have annual sales exceeding $300K and they have 15 employees.
Their product allows the user to cook food or boil water in a pot (picture a camping site) while charging their various electronic devices from the excess energy generated. At first it seemed like a gimmicky product for a small market and the Sharks dropped out….except for Mark Cuban.
As he continued to ask questions, he discovered PowerPot is being used in Africa to help citizens generate enough power to light their homes! All of a sudden this looked like a much larger opportunity and Mark made an offer of $250K for 20% equity. David and Caleb negotiated and ended up with a much more favorable offer by using Advisory Options and giving up less equity. Well played guys!
The other three entrepreneurs came in a distant second and can only be considered for tonite’s Shark Chum Awards. They are:
Taylor from Taylor Robinson Music Lessons gave a nice presentation, but the software he used to connect musicians with customers was flawed….it couldn’t handle different hourly rates for various instructors. Customer acquisition costs of $33 per customer seriously hurt the profitability potential of this business.
Stan and Kevin from Funtime Express had a nice little business……giving kids rides on their train thru shopping malls. Somehow they “engineered” a deal with Lori and Mr. Wonderful despite the fact that he must have moaned “You’re too small for me” about 25 times.
Matt from Quickstop Fire Sprinkler has a terrific product that helps minimize the water damage generated by industrial fire sprinklers. The issue here is that the tool(s) Matt has invented are relatively complex and will require lots of end-user education. This combined with a relatively small market size “cooled” the Sharks’ interest. Matt did get an offer requiring him to give up 50% equity to Mr. Wonderful and Lori. Given the work required, I think he should have accepted their offer. He’ll need lots of Marketing help to make this work.