Tonite’s Sharky Award winner is:
Brad and Robert from Rugged Maniac……These two have developed two businesses. The business they were pitching involved physically challenging obstacle courses that covered 3 miles. They ran these events in 20 cities. The second business (which was not initially included in the offering) was a “running with the bulls” type of event.
Investors don’t like it when an entrepreneur has a second business that is not included in their investment. They want their interest and the entrepreneur’s interest to be closely aligned. And so the Sharks started making offers based on the two businesses bundled together. Mark Cuban ended up getting the deal when he offered $1.75 million for 25% of the combined company. Mark had pointed out that these guys have a bigger competitor that has “first mover” advantage in this space.
Generally speaking, there’s enough room in every market segment for 3 or 4 companies to succeed. These guys seem to be in that group.
The Best of the Rest…….. Trevor from Cerebral Success got a deal from Barbara. His pills were designed for College Student who needed to focus on their studies using his energy supplement. Barbara had some personal experience with her husband and a son who took Adderall in college and she had seen several cases where alternative supplements helped them. She did include a contingency in this deal that would protect her and Trevor from any liability claims.
Youth Division Winner…….Moziah from Mo’s Bows had sold 2,000 of his hand-made bow ties. He is a fashion savant who had his Mom and his 80 Year old Grandma working for him. He convinced Daymond to mentor him. Daymond will not invest his money, but will invest his time and expertise to bring Mo to the next level. He is truly the NBT…..the Next Big Thing. Mo is only 11 years old and already has a vision for the next 10 years. Good job young man!
Shark Chum Award……Jan and Eric from Crio had the shortest visit to the Tank (ever)…..and not by choice. 7 minutes of air time and they were gone. Their coffee-chocolate drink tasted awful and their valuation was unrealistically high ($10 million).
Update: Former Gold Sharky Winner Marz Sprays has increased their Revenues to over $4 million after their Shark Tank appearance last year. Lori has helped get their vitamin spray into Walmart and Walgreens. Congrats.