- A 16-year-old from Melbourne, FL has an eco-friendly way to say goodbye to plastic bottles; a former soap star villainess from Sherman Oaks, CA has a one-piece, sun-safe swimsuit; two men from Washington, DC pitch an app that creates exercise play lists for the everyday person; and a man from Corinth, TX promises to expose the hidden secrets lurking in mattresses.
- Sharks attending this episode are Mark, Barbara, Kevin, Lori and Robert
"Sworkit" is a personalized and Customizable workout app created by Ben Young and Greg Coleman. They secured a deal of $1.5 million for 8% equity. The app allows users to create their own workout content and integrates with Spotify. In the previous year, "Sworkit" generated $770,000 in revenue, with two-thirds coming from upgrades and one-third from advertising. Upgrades are priced at $5, while the monthly subscription fee is $10, providing access to equipment as well. The company has raised $2.1 million at a valuation of $11 million. They currently have 1.5 million active users and are seeking additional funding to double their engineering team and improve speed. Kevin offers a $1.5 million debt at a 7.5% interest rate for 2 years, along with 2.75% equity. Mark offers $1.5 million for a 10% stake in the company and an additional $1.5 million of unsold ad inventory. Lori decides not to invest, and Robert opts out after Mark presents a more favorable offer. Barbara is out due to the high asking price. Ultimately, the founders accept Mark's deal.
"Clean Sleep" is a mattress and bedding cleaning service pitched by Michael Ingle. He requests $1.5 million for a 15% equity stake. The service uses UV lights and super-heated dry steam to clean mattresses. Currently, the company operates with two trucks equipped with the cleaning machines. Customers contact them when they need service, and it takes approximately 15 minutes to clean one mattress. "Clean Sleep" has serviced 30 hotels to date, with the standard service priced at $90 per mattress. The first truck generated $180,000 in sales, and the company sold its first franchise for $435,000. A franchise truck is projected to make $70,000 in the first year. Michael's plan includes leasing the cleaning machines to hotels and hospitals and charging royalties. Barbara finds the pitch confusing, Robert believes Michael lacks focus, and Mark shares a similar sentiment. Lori is deterred by the lengthy and tedious sales process, while Kevin opts out due to too many unknowns.
"TUTUblue" is a brand of full-body swimsuits designed to prevent sun damage, presented by Sarah Buxton. She seeks $200,000 for a 25% equity share. The swimsuits are made from UPF 50 fabric, blocking 97% of the sun's rays. Although the business has been operating for only 1.5 months, it has generated $4,000 in sales. The swimsuits cost $47 to produce and retail for $220. Currently, the products are available in one store. Barbara deems it too early for investment, and Robert believes Sarah is trying to do too much by incorporating dermatology and water sports. Mark feels that Sarah doesn't listen well, and Lori also considers it too early. Kevin opts out due to valuation concerns.
"Nohbo" is a product developed by Benjamin Stern, a 16-year-old, and his grandmother, Lois Warren. They are seeking $100,000 for a 20% stake in their company. Nohbo is a concentrated shampoo and conditioner in the form of small balls, designed to reduce waste from plastic bottles. Benjamin made calls himself and secured a deal with Hilton hotels for testing. He also reached out to a large retailer for a test. With the help of a chemist, he produced the product. Nohbo's delivery system can be licensed to any major shampoo manufacturer. The production cost per unit is 6 cents. Mark advises Benjamin to focus more on the consumer market and less on hotels. Lori finds it too early for investment, while Kevin believes the patent is crucial. Robert offers $100,000 for a 20% stake, contingent on the patent being granted and licensing. Mark offers $100,000 for a 25% share and provides support in manufacturing, back-office operations, patenting, and sales. Barbara offers $100,000 for a 20% stake, contingent on selling the technology to Estee Lauder. Benjamin ultimately chooses Mark's offer.
Update on "SignalVault" (Episode 701): Chris Gilpin, the entrepreneur behind the credit card protector, experienced significant growth after appearing on the show. The product sold out on QVC in just 8 minutes. Sales increased from $300,000 before the episode to $2 million within four months. Currently, SignalVault has 12 employees and office space. The company introduced new packaging and successfully gained entry into the Better Business Bureau (BBB) and Staples. Robert's team assisted with search engine optimization (SEO).
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