PITCH: Nuts 'N More
ASKING FOR: $250k for a 20% stake
BEST PART OF THE PITCH:The guys claim to have created a peanut butter unlike any other. Their product is high in fiber, there's no sugar added and it contains lots of protein. Nutritional stores are buying up their product by the minute. The sharks like the taste of the product. The guys have $100,000 in sales and they've been approached by a major distributor. The cost of the peanut butter is rather high, but they hope to bring it down once they cut costs on the manufacturing end.
DO THE SHARKS BITE? Robert says the evaluation of the company is too high because they don't actually have the big orders yet. Daymond agrees they are working on assumptions of sales, so he's out. Barbara likes the branding and packaging of the product, but she thinks it's a shame they evaluated the company so high. She's out. Kevin says he needs 264% of the company to invest. Since that's mathematically impossible, he's out. Robert offers $250k for 50%. Mark offers $250k for a 35% stake with $75k up front and $175 for future purchase orders. Both Mark and Robert talk of teaming up.
UPDATE: Surfset Fitness
Mike Hartwick and Sarah Ponn's company is all about surf-inspired exercise equipment and group fitness classes. They have created the world's first total body surf trainer that's designed to mimic the instability of a surfboard on water. They made a deal with Mark which sent them all over the country certifying Surfset trainers. Mark helped them set up a deal with Crunch Gym to roll out Surfset classes at their many locations. They are on track to hit $5 million in one year. Surf's up!
ENTREPRENEURS: Romy Taormina
ASKING FOR: $250k for a 10% stake
BEST PART OF THE PITCH: Romy says PsiBands are the stylish way to quell queasiness. They are acupressure wristbands that relieve nausea. Romy's product comes in fun colors, they are waterproof and they have an adjustable orb that used for the acupressure. She says there are medical studies that prove her product works. She's had a million dollars in sales over the last year, but had only 11 percent net profit. She also has $600k in debt because of deferred salaries from the past. In other words, she wants to get paid for all the work she's already done.
DO THE SHARKS BITE? Barbara says it's hard for an investor to watch someone write a check to themselves because they believe they are owed money for work they did in the past. She's out. Mark is upset because Romy doesn't have any real research and development to support her claims that this truly does help people. He's out. Robert has no problem with the pursuit of profit until someone tells him it helps people with cancer as Romy claims her product does. He's out. Daymond doesn't trust Romy, so he's out. Kevin will give her $250k for 40% of the company. Romy is set on sticking to her original offer though. Kevin says she's dead to him. In other words, he's out.
LEARN MORE: Visit http://www.psibands.com
ENTREPRENEUR: Nick Gonzales & Kevin Mack
PITCH: Neo Innovations
ASKING FOR: $80k and a 20% stake
BEST PART OF THE PITCH: Nick and Kevin have come up with a new solution to an otherwise permanent problem. They have a device called Black Magic IPL which uses light energy to break up the dark pigments of tattooing. It breaks things up without breaking the surface of the skin. It's affordable tattoo removal for less than the cost of a laser treatment. Their device is actually for personal use. It's safe because it does not pierce the skin. The guys sell about 30-40 units a month.
DO THE SHARKS BITE? Barbara has a hard time believing this product is safe. She's out. Mark says he gets sued for the craziest stuff. He's too much of a target to invest in a product like this. He's out. Robert also worries about getting sued. He's out. Kevin actually likes the business, but also worries about the liability. He's out. Daymond has the same concerns as all the other sharks. He's worried about the dangers of the product and the dangers of getting sued. He's out.
LEARN MORE: Visit http://www.neomaglight.com
ENTREPRENEURS: Jessica Haynes
PITCH: Jeska Shoe Company
ASKING FOR: $70k for an 30% stake
BEST PART OF THE PITCH: Jessica has created a product that allows women to change the look of their shoes as easily and as often as they change their minds. Her shoe can change from a stiletto to a wedge with a simple push and snap. With hidden magnetic components and a built-in mechanism for interchanging heels, the product can be continually updated and changed. She's still in the prototype phase. Jessica gets choked up when she reveals that her parents helped her with money to fund this venture.
DO THE SHARKS BITE? Kevin says shoe companies are not looking to reduce the number of shoes they sell. Robert wonders if the reason that other products like this out there is because women like changing shoes. Kevin doesn't believe Jessica has a plan, so he's out. Mark doesn't know much about this world, so he's out. Barbara thinks the people who can afford to buy her shoes can probably afford more than one pair. She's out. Robert can't see this business being a success, but he believes Jessica will be a success in perhaps another venture. He's out. That leaves Daymond.
THE RESULT: Daymond believes Jessica has a lot of courage. He's willing to gamble on her with an offer he admits stinks. Daymond offers $70k for 70% of the company because he feels that he has to work for her. He's basically investing in her. Jessica believes that even though she's giving up a lot of her company, it's worth it to have a partner like Daymond. They have a deal.
LEARN MORE: Visit http://www.jeskashoecompany.com