- The Sharks try out a new recreational sport, and listen to a pitch concerning missing socks.
- In the Shark Tank episode, several entrepreneurs presented their businesses seeking investment from the Sharks including Mark, Daymond, Kevin, Lori and Robert
First up was John Anthony Radosta with "Advanced Sports Technology," a league and licensing group for bubble soccer. John offered a 10% stake in his business for $160,000. With 40 affiliates, Advanced Sports Technology organized leagues and provided equipment for bubble soccer, which had gained popularity in the UK and Australia. $430,000 in sales this yr, with Free Cash Flow margin of 23%. Projected sales of $683,000 next year. John is being cute with his numbers. Each bubble costs $150. The leagues get a package for between $4,000 and $16,000, and the leagues are investing in a business. Ongoing revenue is from lead generation and equipment warranty. Additionally, John had a private events business where the main attraction was the bubble. The leagues were competitive, and actual soccer games were played with each league in the US consisting of 8-12 teams. However, the Sharks had concerns about the revenue model and ability to scale of the business, and one by one, Kevin, Lori, Robert, Daymond, and Mark decided to pass on the opportunity.
Next, Cameron MacMullen and Junea Rocha pitched their gluten-free Brazilian cheese bread business called "Brazi Bites." They sought a $200,000 investment for a 10% stake in their company. Brazi Bites were made from tapioca flour, making them a gluten-free option with 120 calories per serving. The product required baking in an oven rather than microwaving. The business had achieved significant success, with sales of $600,000 the previous year and $1 million projected for the current year. Daymond saw an opportunity to pair Brazi Bites with Al Bubba Ribs and suggested adding an overnight shipping side to the business. Daymond offers $200,000 for 25%. Kevin offers $200,000 for 20%. Lori offers $200,000 for 25% and wants to pair with Bantam Bagels. Kevin drops to 15%. Debt of $200,000. They have a co-packer who owns 50% of the company. Kevin drops his ask to 12.5%. The duo counter Lori for 15%. Lori counters for 20%. Daymond downs to 20%. Lori goes to 18%. The duo counters Lori for 15% again. Lori sticks to 16.5%. Kevin and Daymond are out and the duo takes Lori's offer.
Alexander and Johnathan Torrey presented their business, "Umano," which featured clothing adorned with art created by children. The proceeds from the sales of their products were used to provide backpacks filled with school supplies. They were seeking a $150,000 investment for a 15% stake in their company. Umano's clothing retailed for $48 and was available in Bloomingdales and online. With a 48% margin on wholesale, the business had sales of $106,000 the previous year and $250,000 projected for the current year. Kevin raised concerns about the use of child labor and the potential for generating excessive profits, but the Torrey brothers assured that they would increase their charitable giving as the brand grew. Robert and Kevin decided to pass, Lori offers $150,000 for 25%. Daymond offers $150,000 for 33.3%. Mark offers $150,000 for 20%, and is open to joining with Lori or Daymond. Lori joins Mark, $150,000 for 20%. The brothers go with Mark and Lori.
Finally, Glen and Tracy Burress presented their product called "Socktabs," which was a connector designed to keep socks together during washing and drying to prevent loss. They were seeking a $50,000 investment for a 20% stake in their business. Socktabs were sold in packs of 24, with production costs of $1.25 and a wholesale price of $5. The business had generated $20,000 in sales in six months, with 40% of sales coming from online channels. However, Lori, Robert, Daymond, Mark, and Kevin all decided not to invest due to various reasons. As the couple was about to leave the Tank, Daymond made a last-minute offer of $50,000 for a 30% stake, contingent on getting approval from the team behind the sock company Bombas. Tracy accepted the offer, and the deal was made.
In an update from a previous episode, Neal Hoffman, the creator of "Mensch on a Bench," a Hanukkah toy company, had experienced success after securing a deal with Lori and Robert. Mensch on a Bench had made it into BBB and was available in 1,000 stores. Sales of $1 million in 10 months post tank. The plush toy's face had been made friendlier to attract a wider audience. Neal now had plans to create a female Hanukkah hero, expanding his product line and continuing to grow his business.
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