ENTREPRENEUR: Rebecca Rescate & Chris Hindley
PITCH: Hoodie Pillow
ASKING FOR: $90k for an 15% stake
BEST PART OF THE PITCH: Rebecca has been in the tank before. She sealed a deal with Kevin Harrington in Season 2 for her cat toilet-training system called CityKitty. She's broke a million bucks in sales with that product and is headed for $5 million. Her new venture is with a partner to pitch a product puts a hood onto a pillowcase. Daymond plops down on a couch to test the product. The other sharks think he looks ridiculous, but Rebecca argues he looks relaxed. They've sold 3,000 units in eight weeks. Chris invented the product and Rebecca owns 30% of the company. This makes her a mini-shark. They have a utility and design patent on the product. They also have a portable travel hoodie that you can use on planes. The sharks perk up when they see this product.
DO THE SHARKS BITE? Kevin offers $90k for a 33% stake but nobody can take a draw from the business until later. All three of them will take an equal draw when the time arrives. Chris offers Kevin 25% of the business for $100k, but Mr. Wonderful sticks with his original offer. Daymond also wants a third of the company for the $90k. He wants a decision in 10 seconds. Rebecca wants to hear from the other sharks, so Daymond is out. Barbara wants him to come back in on a deal with her for a 40% stake and a 10-cent royalty. Daymond is back in, but again wants an answer right away.
THE RESULT: Chris says he will do the deal with Daymond and Barbara if they'd accept 30% equity. This has the two sharks offering 35%, but Rebecca wants $90k for 20%. This has Barbara going out because they won't meet her halfway. Robert realizes he doesn't want to miss out on Rebecca again, so he's willing to give her what she asks. Chris can go for that. They have a deal!