The winner of this week’s Sharky Award for entrepreneurial excellence is C. C. Conrad from Boobypack.
I love Boobypack’s tag line…..”A fanny pack for your rack”. That pretty much says it all. C.C. has created a sports bra with pockets for money, credit cards, etc. She raised $32K on Kickstarter.com. She was inspired by her Dad to start a business. He has since passed away and left C.C. some money to go to grad school. He was an entrepreneur, so she didn’t think he would have minded if she used the money to fund her own start-up.
Shark Barbara swooped in at the last minute to steal the deal from Shark Robert. She got the deal for $80K for 25% equity. C.C. accepted her offer immediately as Barbara was the partner she was hoping for. Considering the fact that the rest of the Sharks thought she was “too early” for their investment , she made out very well.
Best of the Rest…..Jesse from Lumi was dynamic and would have won the Sharky if she would have had a little more flexibility in her valuation. She had developed a great DIY business selling photo printing kits and dye that will do $2.5 million in sales next year. Her valuation of $5 million was a little too rich for the Sharks. At a multiple of 2 times last year’s sales, her valuation would have been half of that. You’ve got to be willing to give something to get an offer from any investor. I give Jesse credit, however, she turned down a couple of loan offers from the Sharks that would have required her to payback the loan AND give away some equity.
Mark from the Gold Rush Nugget Bucket had created a gold mining toy for kids. Mark was a very likeable guy who had invested $192K of his own money to build his company. He ended up getting a deal from Shark Robert for $60K for 25% equity. At a retail price of $99.95, I think they will have to do some significant cost reduction to make this deal work.
Liz and Ben from Sseko Designs make interchangeable sandals in Uganda which they sell for $65 per pair. The have used part of the proceeds to send women to college in Uganda. So far 47 have gone to college thanks to their efforts. They valued their company at almost 3 times sales even though they aren’t profitable, and won’t be for at least two years. No deal here.