Tonite was the 100th episode of Shark Tank. After the show, the Sharks toasted their success and the success of the show. Although it is very difficult for entrepreneurs to get on the show (some 30,000 applied this year), it is a great platform for learning what it takes to succeed as an entrepreneur.
I loved Shark Daymond John’s quote during the after-party……”Being an entrepreneur is the ultimate equalizer”. It provides an opportunity for everyone to become wealthy and have a fulfilling professional and personal life.
On tonight’s episode, three of the four entrepreneur/contestants received funding from the Sharks. One of them stood out and won this week’s Sharky Award winner for entrepreneurial excellence………
Jen and Jeff from Pipcorn…….This brother/sister team from Brooklyn, NY have created a healthy, gluten-free alternative to popcorn. The Sharks loved the taste of their mini-popcorn and loved Jen and Jeff. Barbara, who typically invests based on her gut feel about an entrepreneur, was so excited about this duo that she agreed to invest $200K at a $2 million valuation. This was an extremely rich offer considering their forecasted sales for the next 12 months was $440K. The offer represented a valuation of 4.55 times annual sales……a significant premium.
Best of the Rest…….Bobby and Judy from Squatty Potty ended up getting an investment from Lori Greiner. I never knew two-thirds of the world squats when they poop. Apparently people in the U.S. are missing out on a great thing. Bobby and his mom Judy have created a toilet that is configured in such a way that it forces you to squat. Bobby said that this is better for you and “People shouldn’t be sitting when they poop”. A large part of their success was attributable to Dr. Oz (an on-air recommendation) and Howard Stern (paid advertising).
Shark Barbara said something that resonated with me. She said there was something about Bobby that made her feel uncomfortable. She didn’t trust him, and I felt the same way……. just a gut feel. I wish Lori luck with this one.
Heidi from Heidi Ho has created a cheese-like product with no dairy ingredients. The Sharks loved the taste of this plant-based product. Heidi got an investment from Lori of $125K for 30% equity.
Shark Chum……..John from Storm Stoppers, The Plywood Alternative, had developed a great product that helps people protect their homes for storms, but he lacked the sales skills necessary to make his start-up successful. He also had a huge decline in sales (about 80%) from last year. Investors hate investing in companies with decreasing sales. Having a great product simply isn’t enough.