ENTREPRENEUR: Liz & Dan Holtz
PITCH: Liz Lovely Cookies
ASKING FOR: $200k for a 10% stake
BEST PART OF THE PITCH: Liz is the amazing baker and Dan is the creative marketing guy who overcame great obstacles to create a brand of cookies that omits traditional ingredients to make them gluten-free and vegan. They present the sharks with a tasty cowgirl and a scrumptious cowboy cookie. The cowboy cookie is the one with nuts. They did just under a million dollars in sales last year.
DO THE SHARKS BITE? Kevin doesn't like the taste of the cookie. He's out. Three other sharks follow his lead. Mark, who is a gluten-free mogul, thinks the cookies are tasty, but knows the market is very competitive. He's not crazy about the evaluation of the company and wants Dan and Liz to make him an offer. He'll then reverse his 24-second clock gimmick by giving himself that amount of time to say yes or no. Liz and Dan offer him 20% equity.
THE RESULT Mark ponders the offer for a moment, but then politely declines. After the entrepreneurs leave the tank, Mark admits to the other sharks that he wanted 33%. Hopefully, Liz and Dan will find sweet success with their cookies outside the tank.
ENTREPRENEUR: Lee Dahlberg
PITCH: Rock Bands
ASKING FOR: $100k for a 20% stake
BEST PART OF THE PITCH: Lee has developed a product that puts stones with a healing element onto bands that you can wear on your wrist. Each rock band is hand-carved and comes in a cool rock star-style case. He's been able to get into four top retailers but took some hits due to the politics of dealing with the retail world. Special guest Robin Leach comes into the tank to rattle off a list of celebrities who wear rock bands. Lee has done $300k in sales over five years.
DO THE SHARKS BITE? Kevin wants to buy Rock Band from him for $100k for 100% of the company and give him a 7% royalty in perpetuity. He wants to license the brand name. Barbara wants to join in on Kevin's deal. Daymond wants to partner with Mark for 40% of the company. It's a feeding frenzy!
THE RESULT When all the negotiations are done, Lee opts to rock on with Daymond and Mark.
LEARN MORE: Visit www.LeatherRockBands.com
ENTREPRENEUR: Tereson Dupuy
ASKING FOR: $500k for a 15% stake
BEST PART OF THE PITCH: Tereson has created 100% reusable diaper product. It's easy to use and easy to wash at home. It's a pocket-style diaper that holds a microfiber pad. The lining keeps the diaper dry. She even has a creative way to dispose of any poo-poo. She's been doing this for 12 years and had $3.9 million in sales last year. She's sold $24 million with no advertising over the Internet. The bad news is that she only made $20,000 profit on that $3.9 million last year. She's had manufacturing issues where her former distributor stole her patented idea. Others are squatting on her business by breaching her patent.
DO THE SHARKS BITE? Kevin wants to sue all these people who have ripped her off. Mark doesn't want to be in the pooper-scooper business to clean up this mess, so he's out. Barbara doesn't trust Tereson's judgment, so she's out. Daymond also can't invest. Robert also doesn't want to invest in a business that isn't on an upswing. He's out. Kevin admires Tereson's tenacity, but he doesn't want to join her on this ride. He's out, too. Hopefully, Tereson will someday get revenge on all those people who poo-pooed on her business by stealing her idea.
ENTREPRENEUR: Mike Lane & Mark Franklin
PITCH: Posture Now
ASKING FOR: $100k for a 15% stake
BEST PART OF THE PITCH: Anna Trebunskaya and Jonathan Roberts of Dancing with the Stars fame sashay their way into the tank to help Mike and Mark demonstrate the benefits of proper posture. The guys have created a strap that keeps your posture perfect. Jonathan is even wearing it as he dances with his lovely wife, Anna. They've sold about $330,000 to date over the Internet. They have a patent pending and a lot of support from chiropractors and HR folks in big companies.
DO THE SHARKS BITE? Kevin offers $100k for 50% and he wants a 10% royalty. That offer is rejected immediately. Daymond believes these guys shouldn't be in the tank. Mike says he's not begging for something, he's offering something. Daymond goes out because he feels Mike ran his mouth too much. Barbara likes these guys, but she still goes out. Robert offers $100k for 40% but pulls it almost immediately because he feels like the guys are just working the room to find better offers. That leaves Mark.
THE RESULT: Mark offers $100k for a 30% and wants a $5 royalty on each sale only until he gets his money back. The guys take the deal and Mike quits his day job on national TV so he can work on this business fulltime. He also shares a celebratory dance with Anna as they exit the tank.
LEARN MORE: Visit http://www.posturenow.com