- A couple from Portland, OR offer the Sharks an investment opportunity in their line of customized sandals which are manufactured in Uganda; a dad from Eugene, Oregon offers a special gold-mining bucket which was inspired by his daughter's playtime panning for gold; a woman from San Francisco, CA is looking for a "breast friend" to invest in her sports bra that she claims is "a fanny pack for your rack"; and a woman from Los Angeles, CA with a do-it-yourself kit to develop photos with sunlight and transfer images to products fights it out in the Tank. Will the Sharks bite?
- Sharks attending this episode are: Mark, Barbara, Kevin, Lori and Robert
"Sseko Designs" is a company that specializes in handcrafted sandals with interchangeable accents. The founders, Ben and Liz Bohannon, entered the tank seeking an investment of $300,000 in exchange for a 10% stake in their business. The unique aspect of Sseko Designs is that their manufacturing is done in Uganda, providing employment opportunities for women to earn money for their college education. The sandals retail for $65, and the company has achieved $3 million in sales to date. However, they experienced a loss of $90,000 in the current year due to their expansion of sales capacity. Despite this, they project sales of $1.9 million for the following year, but anticipate another loss. The founders, Ben and Liz, each take a salary of $45,000. Barbara decides to opt out of the deal because the couple's focus is not primarily on generating profits. Mark doesn't see the drive and passion necessary for growth and decides to pass as well. Kevin bases his decision on valuation and opts out, while Robert is concerned that the couple is investing ahead of their sales and chooses to pass. Lori, on the other hand, is not fond of the product and also decides to opt out.
"Gold Rush Nugget Bucket" is a product designed to make gold panning easier, consisting of a bucket and screen system. Mark Peterson, the entrepreneur behind the product, seeks a $60,000 investment in exchange for a 15% stake in his business. Within a span of 17 months, the company generated $290,000 in sales, exclusively through online channels. The Gold Rush Nugget Bucket is priced at $100, with a significant profit margin of 70%. Mark has invested $192,000 into the business, including $150,000 for molds and holds two patents. However, Mark decides to pass on the deal as he considers the business to be more of a hobby. Barbara also opts out, stating that the product is suitable for a one-time gift only. Lori does not see the potential for scaling up the business and decides not to invest. Kevin initially finds the concept ludicrous but eventually offers $60,000 for a 50% stake. Robert, however, is impressed by Peterson and counters with an offer of $60,000 for a 25% stake. In the end, Peterson chooses to accept Robert's offer.
"BoobyPack" is a sports bra designed with built-in pockets for holding valuables. The entrepreneur, C.C. Conrad, is seeking an $80,000 investment in exchange for a 20% stake in her business. The bra comes in various sizes and costs $7.17 to produce, while it retails for $55. During its Kickstarter campaign, BoobyPack exceeded its $15,000 goal and raised $32,000. Over the past 12 months, the company achieved sales of $167,000, primarily through online commerce channels. C.C. utilizes search engine optimization (SEO) for marketing and invests $80 in her website. The majority of their marketing efforts are focused on Facebook. Mark decides not to invest, considering the product to be just that-a product. C.C. expresses interest in licensing the bra. Kevin makes an offer of $80,000 for $10 per unit in perpetuity, but Barbara decides not to invest, believing that C.C. doesn't require any assistance. Lori, considering it too early, also decides not to invest. Robert offers $80,000 for a 30% stake, while Kevin revises his offer to $80,000 for $10 per unit until $320,000 is paid back, plus 5% equity. C.C. counters Robert's offer, reducing it to 25%, and Robert ultimately agrees. However, Barbara unexpectedly swoops in and takes the deal.
"Lumi" is a do-it-yourself process for printing photos onto clothing. The entrepreneur behind this business is Jesse Genet, who is seeking a $250,000 investment in exchange for a 5% stake in the company. Lumi holds a patent for its innovative process and acquired an angel investment of $180,000 for a 10.5% stake to buy out the original inventor's formula and inventory. Over the past 12 months, Lumi achieved sales of $1 million, with profits amounting to $40,000. The company enjoys a high profit margin of 91% for online sales and 78% for wholesale. They project revenues of $2.5 million for the next year. However, Mark does not share Jesse's enthusiasm for the DIY kit and decides not to invest. Barbara believes the business has too many moving parts and opts out as well. Kevin offers Jesse a $250,000 loan at 8.5% interest for three years, in addition to a 12.5% equity stake. Lori, interested in Kevin's offer, suggests modifying the equity ask to 5% instead of 12.5%. Robert counters Kevin's offer with his own proposal of $250,000 for a 15% stake. Jesse stands firm and counters Robert's offer with $250,000 for a 5% stake and an additional $100,000 as a line of credit for two years. Robert decides to pass, and Jesse declines Lori's offer of a $250,000 loan at 8.5% interest for 7% equity. In the end, Lori also decides not to invest.
Update on "The Paint Brush Cover" (Episode 522): John, Sal DePaola, and Anthony Caputo made a deal with Lori. The product has since expanded its presence to 2,000 Home Depot stores and achieved significant growth. They introduced new packaging and expanded their retail reach to 14,000 stores nationwide. Sales increased from $35,000 before appearing on the show to $1.5 million in the nine months following their appearance. With 18 employees and a large warehouse, the company has diversified its product line.
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