ENTREPRENEUR: Rachel Mann & Mackenzie Burdick
ASKING FOR: $80k for a 51% stake
BEST PART OF THE PITCH: Sisters Rachel and Mackenzie are San Francisco-based jewelry and accessory designers. Litter was started when they made a series of successful headpieces. They expanded their jewelry to other parts of the body. Their designs have been worn by celebrities and featured in fashion magazines. They had $78,000 in sales last year. This year they are on track for $150,000. The average piece goes for $100 and cost about $2.00 to make. They just got picked up by Urban Outfitters to design an exclusive collection.
DO THE SHARKS BITE? Kevin doesn't know what to do with these two. He likes the product and the ladies, but doesn't want to work for them. Robert also doesn't want to work too hard, so he's out. Daymond says he'll give the ladies $80k for 70% of the company, but they will also get an annual salary. He'll go back down to 51% if the ladies want to run the company. Daymond will back out if they entertain other offers. Mark offers to partner with Daymond. He'll handle the website side of the business while Daymond deals with manufacturing and retail. Kevin offers them the deal they are seeking.
THE RESULT: Daymond gives them a 24-second time clock to give an answer. Barbara wants the ladies to tell him to take a walk so she can make an offer. Too late. Rachel and Mackenzie decide to partner with Daymond and Mark.
WANT TO KNOW MORE: Visit http://www.littersf.com