SHARK TANK - EPISODE 412
ENTERPRENEURS: Doug Marshall
PITCH: The Gameface Company
ASKING FOR: $450k for a 25% stake
BEST PART OF THE PITCH: Doug says his patented product has revolutionized the face-painting and costume mask industry. His product actually peels off as opposed to washing off. The mask is all water-based, so it's very safe for kids. Doug has been in business for five years with $102k in sales last year. He brought his kids in to show off his product, but they are asked to leave the tank once the sharks start questioning the evaluation of the company.
DO THE SHARKS BITE? Daymond goes out immediately once he learns that Doug wants $100k a year for his salary for the next three years. Robert follows his lead. Kevin offers to give Doug the $450k, but $300k of it will be a loan. He'll need a 25-cent royalty on every mask sold until the investment is paid off. Lori will give him $450k for a 40% stake, but she wants Mark to go in with her. Mark offers Doug a million bucks for the entire company which includes a salary of $80k a year for Doug for the next five years. Lori can still be his partner.
THE RESULT: Doug makes a counteroffer of $450k for a 35% stake including the annual $80k salary. Lori and Mark want a 10% royalty until they get their money back. Robert says it's time for Mark and Lori to put on their game face, as they all have a deal.