ENTREPRENEURS: Nicole Townend
PITCH: Teddy Needs a Bath
ASKING FOR: $50k for a 10% stake
BEST PART OF THE PITCH: Nicole's product is the first washer and dryer bag for stuffed animals. The pillow case-like design allows you to throw stuffed animals inside, zip it up and toss it in the washer and then dryer. When done, you have a fresh, fluffy, germ-free animal. Nicole wrote a children's book to accompany her product and she's trying to build awareness to all the germs that get attached to stuffed animals. In six months, she's had $12,000 in sales. Nicole has fun-smelling dryer sheets with scents like cotton candy. Some major retail chains have shown interest in her product.
DO THE SHARKS BITE? Lori believes there are already bags out there like the one Nicole has created. She feels there's a need for something like this, but doesn't know how big it is. She's out. Robert can't see Nicole growing a market out of this product. He's out. Daymond thinks it's a little early for him to invest. Kevin offers $50k for 50% of the business, but he also wants 10% of sales paid to him until he recoups his money. Then it drops to 5% in perpetuity. Mark offers Nicole $100k for 40% of the company. This has Kevin dropping his equity to 30% and also drops his royalty percentage.