Shark Tank episode aired March 18, 2016

This was the strongest group of entrepreneurs appearing in a Shark Tank episode in a long time. I had a hard time deciding who should win the Sharky Award for entrepreneurial excellence, but the tie-breaker was the company with the greatest sales in the last 12 months.

Shark Tank

Sharky Award- Wondercide

Stephanie and Laura from Wondercide……These two knew their business (killing insects) and had an easily understood value proposition (their product is natural and has no chemicals). They have over $3 million in annual sales and have 70% margins.

Stephanie and Laura gave a very good presentation and even had test results from an independent source to prove how effective their product is. The product even kills bedbugs within two minutes.  The only weakness in their pitch was putting too much emphasis on their desire to go retail vs. building their already robust online sales.

Mr. Wonderful made a ridiculous offer that required Wondercide to payback $1.5 million for a $500K loan AND give up 3% equity. Shark Lori made a more reasonable offer calling for a royalty of 50 cents a unit until she got her $500K back. Lori will get a 3% equity stake in Wondercide. They will be great partners.

Brian and Steve from Vengo were a close second to Wondercide. They gave an excellent presentation but their business model was complex (and revolutionary). Their “smart vending machines” were so much different from today’s vending machines that it raised many questions. The fact that they are cashless, play videos, take up little wall space,  and can aggregate customer data was a little mind-boggling.

What was even more mind-boggling was their valuation of $16 million with only $1 million in annual sales, but I loved the way they defended their valuation……”we’ve already raised $3.4 million, partnered with the largest vending machine company, partnered with a large food company, developed the technology over 3 years using our aerospace engineers, built a network of over 150 machines, and disrupted a market segment with over $7 billion in annual sales”. They were very convincing, and got Lori and Mr. W. to give them a $2 million loan for 3% equity.

Ozzy and Mike from Beer Blizzard were hysterical. I laughed out loud at least five times during their presentation. Being from Pittsburgh, they immediately connected with Mark Cuban who ended up making a deal for $1ooK for 25% equity for their product/company that keeps cans of beer cold for 21 minutes. This was a great demonstration of how to use humor effectively in a presentation.

Karen from The Good Promise gave a nice presentation but none of the Sharks liked the taste of her veggie-infused products (pasta, juices, etc.). Even though she had already secured an agreement with Walmart, the Sharks passed on this opportunity.

 

OVERALL RATING FOR THIS EPISODE…… A+

 

 

 

Advertisements

About Shark Tank Ratings

Author of "Unlocking Your Entrpreneurial Potential: Marketing, Money, and Management Strategies for the Self-Funded Entrepreneur"
This entry was posted in Daymond John, Entrepreneur, Kevin O'Leary, Lori Greiner, Mark Cuban, Mr. Wonderful, Robert Herjavec, Shark Tank, Sharky Award, Tim McEneny and tagged , , , , , , , , , . Bookmark the permalink.

I would like your feedback. Please comment below.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s