This is the final episode of Season 6 of Shark Tank. Tonite’s Sharky Award winner for entrepreneurial excellence is……..
Chris from Spikeball had all the elements for a great pitch. First, he and two Spikeball teams gave an exciting demonstration of this “new” sport. The “new” is in quotes because Chris had recently purchased the rights to this 1989 game which had little success in toy stores. He re-launched the game as a sport, and has organized over 100 Spikeball tournaments around the country.
The margins are great (about 70%) and Chris’s sales are forecasted to be $3.2 million this year. He’s already done a great job marketing the product and the sport. He negotiated well with Shark Daymond and got a deal for $500K for 20% of his company. This will be a great partnership.
The Best of the Rest……Sometimes a potential investor just doesn’t “get it”. I found myself in that category for the remainder of this episode.
First, there was David and Zack from Shark Wheel. These two had literally re-invented the wheel and had developed a wobbly looking wheel which they feel is “superior” to the wheel we’ve known and loved for more than a few years. Somehow they got three of the Sharks to invest in their company. At best this struck me as a fad, and I can’t see a lot of Mom’s putting their babies in carriages relying on these wheels.
Next up was Adriana, a very personable and perky young lady who had a concept (not even a business) which required people to pay $9 to go into a café where they eat and drink surrounded by cats. Sorry, I just don’t get it.
The final entrepreneur was pretty cool and very knowledgeable in the toy industry. Joe from Sway Motorsports had created a 3-wheel electric motor scooter that had generated $350K in pre-sales orders”. Although the design of his scooter was unique, I think there is already a lot of competition in this space. Joe was strapping on his helmet and was getting ready to ride into the sunset when Mark Cuban asked him for a more realistic deal, and they ended up making a deal for $300K for 20% equity.
Beyond the Tank…..In this Shark Tank Update series, we hear about the progress (or lack thereof) of previous deals. Sometimes I go back to my archives to see what I had to say about the entrepreneurs right after they appeared on the show.
Mix Bikini had received an investment from Shark Barbara in 2012. Here was my analysis right after the show aired……
“Watching Frank & Adam, from Mix Bikini was like watching a slow motion train wreck. They couldn’t even agree on their opening investment offer! One said $50K for 5% and the other said $50K for 10%. They didn’t have a Business Model, they said things like, “We’re open to suggestions” when asked about licensing potential. Their presentation was weak. Despite all of their goofs, they somehow landed an investment from Barbara. This partnership will be challenging”.
PS…..After spending over $50K on a party to celebrate their Shark Tank appearance, the website crashed and the business never got off the ground. It was effectively out of business in 10 days!
See you sometime in the fall when season 7 of Shark Tank begins. I will be publishing my Best and Worst of Season 6 very soon.