Very entertaining episode filled with lots of laughs and lessons-learned for all entrepreneurs. Alex Rodriguez (aka A-Rod) was the guest Shark and provided some insight into his investing style and his business background.
The Best Deal of the episode award went to Makenzie from “delighted by”. She has developed a dessert hummus which the Sharks all agreed was delicious. She had sales of $1 million and had raised $400K from family and friends and Makenzie had put $20K of her own money into the business.
Shark Barbara gave some good advice to Makenzie. She had just hired an employee that turned out to be “not perfect”. Barbara told her that when hiring and delegating, “80% is good enough”. You can’t expect perfection and that’s okay.
Mark Cuban ended up investing $600K for 25% equity. He recognized that this deal was a little out of the ordinary, but he said, “The deals that have made me the most money are always the craziest”.
Best of the Rest……….Chris Gronkowski from IceShaker has developed an insulated stainless steel shake bottle. He brought out his brothers to help promote his product……one of his brothers happened to be the best tight end in the NFL…..Rob Gronkowski. From that point on it was all fun and games.
The Sharks all suggested he change the name of his product to “Gronk Shaker”. As Mark Cuban said, when you’re an entrepreneur you have to take seize on every advantage you can in order to differentiate yourself from the competition. Mark and A-Rod ended up getting a deal for $150K for 15% equity. With backing from movers and shakers (pun intended) in the NFL, MLB, and NBA, Chris and company should do very well.
17 year-old Ehan and his dad Vinyay from Solemender gave a great presentation but didn’t get a deal for their foot-soothing, massage therapy machine, but they did get some great advise from the Sharks. Ehan said he wouldn’t go to college if the business showed promise in the next year. The Sharks encouraged him to go to college and “learn, learn, learn”. He can run his business from his dorm room or hire someone to help him, but he needs the education to help him succeed in the long run.
Robbie from BenjiLock has developed a prototype of an electronic lock that can work with the traditional key or thru fingerprint recognition. Even though Robbie had zero sales, he had just had his patent granted and that created value for the Sharks.
Robbie had put $87K of his own money into the business and he was feeling the stress. He broke down several times while pitching his product. Four of the Sharks made offers and Robbie took his time making a decision.
He then shocked the world (or at least me and the Sharks) when he took the offer made by Mr. Wonderful for $200K for 15% equity. Mr. W. had differentiated his offer by saying he would use a licensing strategy and get big companies to license Robbie’s technology.
Robbie confounded the Sharks, but I think he was hoping Mr. Wonderful could help produce an immediate financial return vs. growing the company slowly over time. If you’re in financial trouble, this is not a surprising decision. Since Robbie had lost his job, invested $87K of his own money, and had three young kids, he might have been feeling the heat.
OVERALL RATING OF THIS EPISODE…………….A-