SHARK TANK - EPISODE 309
ENTREPRENEUR: Stephan Aarstol
PITCH: Tower Paddle Boards
ASKING FOR: $150k for a 10% stake
BEST PART OF THE PITCH: Stephan says that stand-up paddle boarding is the next wave of beach, lake and river entertainment. He stumbles a bit during the initial part of his presentation, but gathers himself together to let the sharks know that he's sold $100,000 worth of paddle boards in four months. He's selling a board valued at $1,200 for only $600. One hour of standup paddle boarding is the health equivalent of eight hours of surfing. He does direct sales through the Internet.
DO THE SHARKS BITE? Kevin wants to know why he doesn't create his own paddle board and do his own direct marketing on the Internet. He wants something proprietary about the product. Barbara has some harsh words for Stephan before heading out. Robert thinks he is valuing his company too high. He's out. Daymond goes out, too. Kevin offers Stephan $150k for a 50% stake and a 10% royalty for the products he creates. He's basically offering to become his banker.
THE RESULT: Stephan cannot accept Kevin's offer, so Mr. Wonderful is out. That leaves Mark to offer $150k for a 30% stake and the first right of refusal on future businesses. This has Kevin offering the same deal but at 25%. But at the end of the negotiation, Stephan opts to partner with Mark. His paddle board pitch got off to a bumpy start, but it was smooth sailing in the end.