First into the tank was Jonathan from Rounderbum. He’s sold over $1 million of his “bum enhancing” underpants. Using a set of adult twins, Jonathan gave a very effective side by side, before-and-after comparison of his product.
He received two offers from the Sharks. Shark Robert would have been the PERFECT partner for him, but he didn’t like the idea of giving up 20 percent equity. Shockingly, he opted for a partnership with Mr. Wonderful who offered $150K in debt financing in return for $2 per unit until he received 2X his money back ($300K). He would then get 5% equity.
Kevin and Glenn from Brush Hero have a great patented product that cleans almost anything outdoors with ease. With $3 million in annual sales, their valuation of $5 million seemed reasonable to me. They made a strategic mistake, however……they said they had no competition and there was nothing like their product on the market.
When they asked to leave the tank to discuss two offers they had on the table, Shark Robert told the Sharks that he knew of similar products used in car detailing. That “spooked” the Sharks and caused Daymond to go out and Lori to restructure her offer to the point it was no longer attractive to Kevin and Glenn. They passed. The moral to the story, be honest about the competition and don’t leave the tank before you close the deal!
Disha from Savy gave a very dull, uninspiring presentation about her shopping app. She’s only 20 years old and has a lot to learn about business. The Sharks all went out when she said she wasn’t going to take advantage of an engineering scholarship to the University of Michigan. Disha doesn’t know what she doesn’t know………a critical flaw for any entrepreneur.
Jennifer and Buddy from Guzzle Buddy have created a glass that be attached to a wine or beer bottle so you can drink straight out of the bottle. It seemed like a silly idea to me, but they managed to sell $1.4 million in 10 months. Daymond offered $400K for 25 percent and they quickly took it. This should be a great gag gift.
OVERALL RATING OF THIS EPISODE…………………..C+