This episode marks the beginning of Season 6 of Shark Tank. The winner of tonite’s Sharky Award for entrepreneurial excellence is……..
Stephanie & Brett from Sleepingbaby……This husband and wife team has developed a line of baby’s womb-like PJ’s called “Zipity Zip”. As the company name implies, this product helps babies sleep better. The benefits (to the parents) are obvious!
The couple had generated sales of approximately $1 million…..all online. These two have created a product that can help millions of parents solve a real problem.
As Mark Cuban pointed out, these two are living the American dream. They started the company with just $700…..$500 for a website and $200 for some fabric. They ended up getting three offers and took one from Daymond John at a $1 million valuation (he invested $2ooK for a 20% stake).
The Best of the Rest……David and Randy from Bombas have re-engineered athletic socks. I had mixed feelings about these two. On one hand, they have created what appears to be an excellent product by improving 7 attributes of traditional athletic socks. They have good margins (54%) and still manage to give away one pair to the needy for every pair they sell. All good stuff.
On the other hand they admitted that after 9 months their sales had “plateaued”. No investor wants to hear that word. It calls into question their real growth potential, their Marketing savvy, and the credibility of their Sales forecasts. Also, their plan to spend the Shark’s money hiring more people was not well received. There’s a ton of competition in this crowded field, and they basically have just one product. Going retail will be challenging.
Despite the pros and cons, they managed to get a deal from Daymond. I suspect he plans on selling the company or licensing the product to Nike or one of the bigger competitors.
I have tremendous respect for Michael from Hammer & Nails based on his accomplishments in film writing and publishing, but I can’t see a nail salon for men becoming a success. That said, I wouldn’t bet against him, but I can’t see investing in him either. The Sharks felt the same way.
Bill and Kyle from Amber had just paid their campus parking tickets and graduated from James Madison University. I’d give them an “A” for effort, but an “Incomplete” on what might have been their Senior year project. Their multi-station phone charger was unproven and was based on unreliable finger print scanning technology. Their business model was flawed and their costs were out of line. These two need some real world experience before wasting any more time or money. Onward and upward, guys!