ENTREPRENEUR: Lena Phoenix & Steven Sashen
PITCH: Xero Shoes
ASKING FOR: $400k for an 8% stake
BEST PART OF THE PITCH: Xero Shoes is described as "Original Barefootware." It's a high-tech shoe that is biomechanically identical to being barefoot while containing an added layer of protection. Robert is the only shark who is a runner, so he tries out the product. He thinks the shoes feel great. They've sold over $650,000 in shoes over the past two and a half years. They are on track for $1.2 million in sales for the year.
DO THE SHARKS BITE? Daymond believes a competitor will come along soon and do what Lena and Steven have done, which is basically put some string on a piece of rubber. He's out. Kevin thinks the business is a crapshoot, but he's willing to give them $400k for 50% of the company. Barbara isn't crazy about the product. She's out. Robert can't get on board with the evaluation of the company. He's out. Mark is out, but he says Lena and Steven should take Kevin's deal before the bubble on their business bursts.
THE RESULT: The only offer Lena and Steven have on the table is from Kevin for 50% of their company. They are not willing to give up that much equity at this time, so they decline the offer. Mr. Wonderful says they are dead to him. That just makes Lena and Steven want to prove to that he made the wrong decision.
WANT TO KNOW MORE: Visit http://www.XeroShoes.com
New to ABC.com?