ENTREPRENEUR: Jeff Stroope
PITCH: HyConn LLC.
ASKING FOR: $500k for a 40% stake
BEST PART OF THE PITCH: Jeff is a firefighter who was looking for a way to save time in getting water to a fire scene. HyConn is the world's fastest way to connect and disconnect from a fire hydrant. At a fire scene, every second counts. There are over 33,000 fire companies across the United States. Jeff believes they could make millions with this product. More importantly, they could save lives.
DO THE SHARKS BITE? Robert wonders if the fire departments will be willing to work the cost of this product into their budgets. They sell for either $215 or $385 depending on the size. Daymond is out because he's concerned that distributors want Jeff to take on the financial responsibility. Barbara is out because she doesn't think municipalities will cough up the money for the short time-saving device. Then Jeff pulls out a device that uses the same patented design that can be used for garden hoses. Suddenly, the Sharks perk up.
THE RESULT: Mark offers Jeff $1.25 million for his company plus a three-year employment deal to run the show at a $100,000 annual salary. Kevin O. wants the garden hose piece only for $500k and he'll give Jeff a 3% royalty. Jeff would want 7% royalty from Mark. Kevin O. goes up to 5%. This back-and-forth has Robert bailing out. And the end of the negotiation, Jeff makes a deal with Mark. They're both fired up to make some bucks.