- Two men from Sausalito, California, pitch a technology to test mercury levels in a piece of fish; a former corporate executive from Houston, Texas, has a platform to help people pursue their passions and brings in World Cup soccer winner Kristine Lilly and extreme sports expert Travis Brewer to convince them; and a millennial from Pittsburgh, Pennsylvania, is looking to finance her fashion brand geared toward the social media generation.
- Sharks attending are Mark, Daymond, Barbara, Kevin, Lori, and Robert
In this episode, entrepreneur Meagan Bowman presents her business "Eco Flower," which offers artificial flowers made from recycled materials. She seeks a $400,000 investment for a 10% stake in her company. Despite having two manufacturing partners, both Barbara and Lori express their preference for real flowers. Nevertheless, Meagan has achieved sales of $2.8 million in just 18 months through direct-to-consumer (DTC) channels, with each flower selling for $60. During her journey, Meagan made some equity deals that reduced her ownership. She sold 25% of her company to an angel investor for a minimal price, leaving her with 75% ownership. Later, she sold an additional 50% for $30,000, resulting in her retaining only 25% of the business. Unfortunately, Robert exits the deal due to Meagan's diminished equity, and Barbara opts out because she prefers real flowers. Mark also steps away as the product doesn't align with his expertise. Lori passes on the opportunity, citing intense competition in the market. Finally, Kevin decides not to invest as he believes Meagan would be diluted to the point of having little ownership left. Despite these setbacks, Eco Flower's sales reach $4 million in the current year. Daymond comes forward with an offer of $400,000 for a 25% stake, but Meagan negotiates and they settle at a 20% equity deal.
Next up is Hilary Novelle Hahn, who presents "The Style Club," a women's fashion brand marketed through videos and social media. She seeks a $500,000 investment for a 20% stake in her company. The products retail for $60 and are primarily sold through traditional retail channels, with an exclusive partnership with Urban Outfitters. Hilary boasts collaborations with Influencers and celebrities who have a combined social media following of 50 million. Despite generating $400,000 in sales within 12 months, the majority of her sales come from a single product, the "babe cap," which accounts for $300,000 in revenue. Barbara decides not to invest due to concerns about the early stage of the business. Kevin opts out because of the exclusivity agreement with Urban Outfitters. Lori declines the opportunity as she believes Hilary is already doing well and wants her to focus on designing products. Robert exits the deal due to insufficient sales data. Daymond offers $500,000 for a 33.3% stake, while Mark proposes a $500,000 line of credit with 8% interest and 22% equity. Hilary ultimately chooses Mark's offer.
The third entrepreneur, Sean Wittenberg, and Bryan Boches, present "Safe Catch," a machine capable of testing the mercury content in tuna. They request a $600,000 investment for a 3% stake in their company. Traditional mercury testing costs $100 and takes a week to yield results, but their innovative product can seamlessly integrate into the seafood supply chain. Additionally, they have created a brand of tuna cans, with production costs of $1.20, wholesale prices of $2, and retail prices ranging from $3 to $4. Sean and Bryan invested $14 million in developing the technology as part of a previous company, which ultimately failed due to the tuna supply chain's inability to adapt. Bryan acquired the company for $1 million, but they now face $900,000 in debt. Despite generating $1.2 million in sales the previous year, the business is currently losing $70,000 per month, with a cumulative loss of $530,000. Kevin, Barbara, and Daymond decide not to invest due to concerns about valuation, previous losses, and market conditions. Mark and Lori also opt out of the deal for similar reasons.
Finally, entrepreneur Kash Shaikh pitches his app "#besomebody," designed to facilitate experiential learning by booking live experiences with mentors and experts in various activities. Kash seeks a $1 million investment for a 10% stake in his company. The online app connects users with top professionals in their respective fields, and Kash earns a 20% commission from each match. However, he is unsure about protecting the company against potential lawsuits resulting from injuries or deaths during these experiences. Despite generating only $2,000 in sales last month, Kash manages to secure a $200,000 investment. Mark decides not to invest, Barbara opts out due to Kash's abrasive demeanor, and Robert declines as he senses inconsistencies in Kash's pitch. Lori is impressed with Kash's progress and wants him to focus on product design, while Daymond exits the deal due to concerns about liability protection. Ultimately, Kevin decides not to invest and asks Kash to leave the tank.
In an update on a previous deal, Tracey Noonan and Danielle Desroches from Wicked Good Cupcakes (Episode 422) have experienced significant growth, selling 1 million cupcakes in three years, with cumulative sales reaching $10 million. They now operate in a new 21,000-square-foot facility, have 32 locations, and aim to expand through franchising.
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