Jamie Siminoff from Ring joined the Shark Tank panel for the Premiere episode of Season 10.
The back story on Jamie…. he appeared on Shark Tank in 2014 with his product, Doorbot (later renamed Ring). He didn’t get a deal but went on to sell his company to Amazon for $1 Billion in 2018.
I gave Jamie a Sharky Award in 2014 for giving one of the best presentations that didn’t get a deal. Here was my original write-up on Jamie.
“I was very impressed by Jamie from Doorbot. His product could best be described as a video doorbell for smart phones. With a million dollars in sales over a recent 9 month period, his valuation of $7 million was a bit rich. I believe he will be very successful, but only Mr. Wonderful made an offer. He wanted a 10% royalty plus some equity. Jamie was smart enough to know that when you’re growing, you can’t afford to give up that much cash. He rejected the offer.”
Back to the Premiere of Season 10…………….
First into the tank was Brad from BoxLock, a smart padlock that protects home deliveries. Brad had invested over $500K in Research and Development to bring his product to market. It is designed to reduce the theft of packages delivered by UPS, FEDEX, etc. It’s a great concept and a slick looking product that can help solve a real problem.
One downside of this product is it requires people to buy the lock and a box. Together they can cost over $200. Secondly, it requires a massive effort to train and support the delivery companies on how to use the lock and have them change the way they do business today. The Sharks thought it would be very costly to educate the public and the delivery companies so they will actually use the product and a new process.
Shark Lori made an offer (a million dollar loan with an equity kicker) and wanted Guest Shark Jamie (from Ring) to go in on the deal with her but he refused, stating that although his product and Brad’s product had some similarities, Jamie had entered the tank with a sales run rate of $3 million per year and Brad had very little traction so the deal was simply too risky.
Next into the tank was 12 year-old Tripp from Le-Glue accompanied by his Dad and sister. He was a dynamic presenter whose product was a non-permanent glue that kids can safely use to temporarily hold lego’s and other building blocks togeher. He had sold $125K of his product since the initial product launch a couple of years ago.
The “kid-friendly” Mr. Wonderful ended up making a deal with Tripp calling for him to license the product to building block manufacturers to include with their offerings. Mr. Wonderful will fund the company with $80K and take a very healthy royalty (starting at 50% until he gets his money back and then going to 20%). I will certainly nominate Tripp for the Season 10 Sharky Award for the Best Presentation-Youth Division.
Emma and Miles from Final Straw were next into the tank. They gave a great visual presentation of the number of plastic straws that are used every second of every day. They dropped six thousand straws from the ceiling of the Shark Tank studio to make their point…..how plastic straws are bad for the environment.
Despite impressive credentials (Emma went to Harvard), raising $1.9 million on Kickstarter prior to their appearance on Shark Tank, and a very clever product design of their portable, collapsible, re-usable straw, they didn’t make a deal with the Sharks.
Mark Cuban cited too much competition as the reason he went out. The $20 price tag was also a factor. My opinion is that people wouldn’t want to carry the straw everywhere they went. I can’t imagine having to remember and carry a wallet, a phone, keys, (and a straw) everywhere I went.
Heidi and Cory from Bear Minimum were the final entrepreneurs on this episode. They invented a paper-based replacement for pots and pans when camping. The paper pots/pans (Bear Bowls) have a special coating that allows them to withstand up to 500 degrees Faranheit. The Bear Bowls are re-usable.
They told a heart breaking story of a business consultant/middleman who stole all of their money in 2008. Heidi broke down while telling the story. Crying can be a very risky thing to do during a business presentation. Some people may come to the conclusion that you’re weak and emotional, others may conclude that you can “take a punch and still get up off the mat and keep fighting”, Shark Jamie thought the latter and agreed to invest $100K for 25% equity.
OVERALL RATING OF THIS EPISODE……………………….B