Nice group of entrepreneurs tonite. Three impressed me enough to win Sharky Awards for entrepreneurial excellence. They are:
Platinum Sharky Award…..Anton, Ardy, and Roberto with Oru Kayak gave an excellent presentation of their collapsible kayak. The kayak design was ingenious and it took less than 5 minutes to assemble (picture a kayak unfolding like an origami paper). It was half the weight of a regular kayak and could be carried like a suitcase. I could picture New Yorker’s taking it on the subway to the Hudson or East River.
They had sold $1.4 million this year with a forecast of $4 million for next year. They knew their numbers inside and out (cost to manufacture was $505 not $500), and came in with a defensible valuation. They ended up getting a deal from Robert who was the PERFECT investor for them given his love of design, technology, and sense of adventure. His $500K investment for 25% equity pegged the valuation at $2 million or 1.5X the last twelve months revenue. ……. a very fair deal.
Gold Sharky Award……Jayla from Bon Affair had created a wine drink with half the calories that eliminated hangovers. It was actually something like a wine spritzer. Her passion and knowledge of the category was obvious. The Sharks were concerned she would have a tough time “selling the category and selling her product” to potential customers.
She had previously raised $700K at a $2.6 million valuation. The fact that she came in asking for $15oK for 35% equity was a red flag that Jayla was making “her last stand” with the business. She had learned from her mistakes, but was about to run out of money. Mark Cuban gave her what she asked for because he looked at this as a good risk/reward scenario for himself. The business will either grow quickly and become a big hit or die quickly. Mark will only be out $150K if it fails.
Silver Sharky Award……Shannon and Florian from Cinnaholic made great tasting cinnamon rolls that contained no dairy or eggs. They also had half the calories of their competitor’s products. They got a deal from Robert Herjavec (his second of the night) with the intent of expanding the business online and not thru brick and mortar stores. He should thank Mr. Wonderful for giving him this idea. It is similar to the way Mr. Wonderful’s Wicked Good Cupcakes grew so quickly. Fortunately, they turned down Kevin’s “royalty in perpetuity” offer.
Shark Chum Award……Mark from Hargitt was a treasure hunter who had obtained the rights to recover a sunken ship in Alaska. Although he was credible and the Sharks took him seriously, he harvested no treasures tonite. Shark Robert gave him a great idea…..why not sell the rights to a larger company. Mark said he had never thought of that.
Update…..Congrats to Cousins Maine Lobster. They are forecasting $3.5 million in sales this year. Shark Barbara has given them the marketing expertise and support needed for them to succeed.