I analyze each Shark Tank episode by focusing on the entrepreneurs/contestants and not the Sharks. I give Sharky Awards to the entrepreneurs that make the most compelling presentation to the Sharks….regardless of whether or not they get an investment from the Sharks.
I am giving tonite’s Platinum Sharky Award to two young ladies who did not get a deal, but did a great job presenting their business.
Platinum Sharky Award….Emily & Jessica from Susty Party were outstanding. They did a great job presenting their eco-friendly party products such as plates, cups, napkins, etc. They had about $500K in sales last year, $1.5 million this year, and were projecting $5 million next year.
They had graduated recently from Oberlin and Harvard and started their business in Brooklyn, NY. Their products were all made in America.
Despite being passionate (and feisty!), knowledgeable, and very smart, the Sharks passed on this opportunity because they thought the ladies had too much inventory and didn’t manage their cash well enough. Sometimes, as an investor, you need to invest in the potential of the entrepreneurs and recognize that they may have made a few mistakes due to inexperience. With some mentoring, these two will succeed! The Sharks missed an opportunity here.
Gold Sharky Award…….Ryan from HangEase was in third grade when he invented this collapsible clothing hanger. He is now 19 and a sophomore at SMU. He had sold over 400,000 of these hangers at Walmart, but put his invention aside as he finished elementary and high school. Sharks Mark and Lori invested $40K each in Ryan’s business. Nice job!
Shark Chum Awards……..Aaron from Angel Lift received a deal from Lori with three contingencies (a Shark Tank record!). In order to consummate the deal, he’ll need to prove he had sales of $3 million, provide proof of his patent, and provide proof of the product trial results. The Sharks did not trust him. I’d be surprised if this deal ever happens once due diligence takes place.
John from The Bouqs Company gave a nice presentation but couldn’t adequately differentiate himself from other flower retailers. The fact that he had previously raised $1.1 million and had pegged his current valuation at something north of $8 million didn’t help him. As Mark Cuban put it, “I don’t like to be dumb money”. With only $700K in sales, this deal was way too rich for the Sharks.