Shark Tank episode aired January 27, 2017

There were four very good presentations this week. All contestants had sub-million dollar (sales) companies, but had lots of growth potential……and that’s what investors like.

Rose and Laura from Chirps were classmates at Harvard. They were motivated to create a high protein snack that consumed minimal water to manufacture. They created Chirps chips which are gluten free and contain crickets as one of their main ingredients (70 crickets per bag)! Rose and Laura gave a very polished and professional pitch  (they had won over $200K in various pitch contests prior to the show). They ended up getting a deal with Mark Cuban for $100K for 15% equity.

Jackson from Vibes created clear ear plugs that can’t be seen once inserted in the ear. This patent pending product filters sound waves in such a way that you hear the music’s true sound, but at a lower volume. To prove his point, he had the Sharks insert the ear plugs and had a Brass Marching Band come on stage playing music at over 100 decibels. The Sharks agreed the product worked, but thought there is currently too much competition, and not a large enough potential market to interest a potential investor. No deal.

Bryan and Amelia from Popup Play had built software that allows kids to design and  build “play scenery” and custom toys online. They charged $99 plus $10 for shipping. The Sharks thought this was a bit high and may have been responsible for slow consumer sales. In fact, Bryan and Amelia had annual sales of $330K, but $300K of that came from one large customer. It’s a red flag to investors when a large percentage of sales come from one customer. They would rather see 100 customers generate $500K in sales than one customer generating $500K in sales. In the event one customer leaves, having more customers ensures lower risk for both the entrepreneur and the investor.  Despite the risk of having over 90% of sales coming from one customer, Shark Chris Sacca made an offer of $250K with the same terms as their previous investors. The upside is that this technology can be used for other, entirely different purposes (architecture, building, etc.). Also, I think Chris could envision this software as a part of the Minecraft game.

John and Pete from Getaway have built 10 tiny houses two hours outside of New York City. The idea here is that people want to totally disconnect from their jobs and become hermits for a week or so. With a cost to build a tiny house of $30K, this will be a tough business to scale.  John and Pete also came into the tank with an extremely high company valuation ($7 million). Shark Kevin made a  debt offer, but it was rejected. No deal.

  OVERALL RATING OF THIS EPISODE………….B

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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 Chris Sacca, Entrepreneur, Kevin O'Leary, Lori Greiner, Mark Cuban, Mr. Wonderful, patents, Shark Tank, Sharky Award, Tim McEneny and tagged , , , , . Bookmark the permalink.

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