It was family night on tonite’s Shark Tank episode! With the exception of one entrepreneur, all contestants were part of a family business….father and son, mother and son, and two brothers appeared on tonite’s show.
Even the update segment featured a family business which had previously received an investment from Lori. ScreenMend’s sales went from $4K to over $900K after their appearance on Shark Tank. They are moving out of their garage into a new facility to keep up with the increased demand for their product. Great job!
Tonite’s Sharky Award goes to Ben & Eric from Reviver Clothing Swipes.
These two brothers have a patent pending product that allows the user to remove offensive smells from their clothing (and even their hair!) by wiping the disposable cloth over the surface. They had sold over $500K of them (half to Petco) in a 10 month period, and they forecasted sales of $4 million next year.
Their father had invested $2 million in the business, and this became the focus of the Sharks’ concerns. Shark Barbara said “she didn’t invest in rich kids’ businesses”, and she preferred investing only in companies and owners who were “dirt poor”.
I myself was dirt poor when I started my first business, so I know where Barbara was coming from. Because funds are so limited (Barbara started her real estate empire with just $1,000), you have to move quickly, do everything yourself, avoid fatal mistakes, hustle your ass off, and “will it to happen”. Failure is not an option….you may never get another chance like this again.
The other Sharks were not as concerned about the two coming from a wealthy family because they had accomplished so much in a relatively short time. I was surprised that the Sharks didn’t drill into how they had used the money and what percent equity (if any) the father owned. I would have also have liked to know about the three “co-inventors” and what their deal is.
Shark Lori ended up getting the deal for a $150K investment for 15% equity. The Queen of QVC was happy to get the deal and the business will be very successful with her as a partner.
The Best of the Rest…..Steve from Table Jacks had invented a product to stop restaurant tables from wobbling. He has done a nice job, but the addressable market size is just too small for the Sharks.
Noah and Brian (his Dad) from Paper Box Pilots ended up getting an investment from Mr. Wonderful who has experience selling into the toy industry. Noah, the 13-year-old CEO, selected Kevin over Barbara and Robert because of his strategic value in the toy business. I think this was a good choice.
Kimberly (Mom) and Korry (Son) from Fun Cakes had only $150K in annual Sales after being in business seven years. Worse, they only paid themselves a total of $17K per year. The Sharks were clearly not turned on by their product (faux wedding cakes), their hustle, or their knowledge of the numbers.