SHARK TANK - EPISODE 202
ENTERPRENEUR: Nikki Pope
PITCH: Toygaroo, a sort of Netflix for toys
ASKING FOR: $100k for a 10% stake
BEST PART OF THE PITCH: Nikki says her company is like Netflix for toys. She has a website listing over 300 types of toys. Parents can order toys for their kids. Once they are done playing with them, they can send the toys back to Toygaroo for a new batch. Nikki says they sanitize the toys upon return and shrink wrap them before shipping again. No one else is doing this. There's a monthly membership fee that starts at $35 per month. Nikki did a soft launch with 500 customers.
DO THE SHARKS BITE? Robert and Kevin O'Leary want to know what it'll cost in inventory to make the business grow. $64,000 will cover a year of toys. Daymond is out when he learns that Nikki only owns 10 percent of the company while her husband owns 50. Kevin O. is interested even though he doesn't believe this is a million dollar business just yet. It's unlike him to take a leap of faith. He offers the 100k for 35%. Robert and Mark Cuban say they'll give $100k each for 40%. Barbara can't compete, so she's out.
THE RESULT: Nikki has two solid offers on the table. She likes the fact that Kevin has experience with the toy companies. He asks Nikki if she'll partner with him if he matches Robert and Mark's deal. She nods and the deal is done. But wait! There's more! Kevin likes what Mark brings to the table, so he wants him to partner for half the cash. Mark agrees. This leaves Robert feeling like a toy no one wants to play with anymore.