ENTREPRENEUR: Jeff Stafford & Dusty Holloway
PITCH: Shell Bobbers
ASKING FOR: $80k for a 20% stake
BEST PART OF THE PITCH: The guys created a fishing bobber after seeing a shotgun shell floating in the water during a hunting trip. They are combining two multi-million dollar industries in hunting and fishing. They said outdoor stores were very interested in the prototype. They've only have less than a thousand dollars in sales.
DO THE SHARKS BITE? Kevin offers $80k for 50% of the company. He also gets 50 cents for every unit sold until he gets his money back. Then the royalty goes down to 10 cents in perpetuity. Robert thinks the guys have a cool product, but doesn't believe they have a real company. He's out. Daymond follows his lead. Lori shows interest in possible extensions of the product, but is hesitant to make an offer. Mark believes that the guys are right to not accept Kevin's offer. He'll give them $80k for 33% of the company.
THE RESULT: Mark wants a yes or no answer right away. Lori hasn't even declared if she's out yet. That doesn't matter. Jeff and Dusty make the deal with Mark. Daymond thinks his fellow shark just made a horrible deal. Mark begs to differ. He believes the other sharks simply don't have vision.
ENTREPRENEUR: Tracey Noonan & Danielle Desroches
PITCH: Wicked Good Cupcakes
ASKING FOR: $75k for a 20% stake
BEST PART OF THE PITCH: Tracey and Danielle are a mother/daughter cupcake-making duo from Boston. They took cake decorating classes together and came up with the idea of shipping their cupcakes all over the country in jars. The sharks love the cupcakes. The ladies have sold $73k in the jars in addition the sales they make from their store. They are slated to have $360k in sales for the year.
DO THE SHARKS BITE? Robert isn't big dessert guy. He also has concerns about the retail issue and the jar aspect of the product. He's out. Daymond loves the product, so he's afraid that he'd eat all the inventory. He's out. Lori also loves the cupcakes, but she doesn't like the fact that the product doesn't have a long shelf life. She's out. This isn't really Mark's area of expertise, so he's out. Kevin will give the ladies the $75k. He doesn't want any equity. Instead, he wants a dollar for every jar until he gets his money back. Then it'll drop to 50 cents in perpetuity.
THE RESULT: The ladies make a counter offer. They offer him 40 cents per jar in perpetuity. Kevin wants 45 cents. The other sharks are amazed when the ladies take the deal. Mr. Wonderful is very pleased. Hopefully the three of them will have sweet success.
LEARN MORE: Visit http://www.wickedgoodcupcakes.com
ENTREPRENEUR: Aaron Lemieux
PITCH: Tremont Electric
ASKING FOR: $2 million and a 22% stake
BEST PART OF THE PITCH: Aaron says the problem with all of the electronic devices we use these days is that the battery runs out when we need it most. He's come up with a way to harvest the energy that's all around us. He has a device that turns your human walking motion into the power you need for your devices. Aaron has sold about 1,300 units. He hopes to use the concept by capturing the power of waves in the ocean.
DO THE SHARKS BITE? Mark goes out immediately because he thought Aaron pitched his ideas in the wrong order. Lori thinks Aaron is a brilliant guy. She hopes he can make his dream come true, but she can't help him. Robert can't make the connection between the product he's pitching and his grand plan to use waves for energy. He's out. Daymond follows his lead. Kevin thinks the technology is very interesting, but he doesn't want to invest $2 million to go to work for Aaron. He's out, too.
LEARN MORE: Visit http://www.nPowerPEG.com
ENTREPRENEUR: Nate Holzapfel
PITCH: The Mission Belt
ASKING FOR: $50k for an 20% stake
BEST PART OF THE PITCH: Nate set out on a mission to reinvent the belt. For starters, his product has no holes. Instead, the belt has a unique ratchet system with a release button underneath. It's like a giant zip-tie. The Mission Belt provides a perfect fit every time. He's been in business for three months and has made $39k. Nate says that everyone that he pitches his belt to ends up buying it. He just needs help with contacts to get in front of the major players.
DO THE SHARKS BITE? Lori loves Nate and she also loves the product. The problem for her is that the belt needs to be demonstrated in order to show its appeal. That's hard to do. She's out. Kevin also likes the product, but he's not up for the challenge of getting it into the stores. He's out. Robert is, too. Only two sharks are left.
THE RESULT: Daymond says that just one design of a belt is not a business, but he's impressed by Nate's initiative. He offers $50k for 40% of the company and he wants Nate to head up the sales team. Mark advises him to take the offer before going out. Nate asks Daymond to go down to 30%, but he'll only drop to 37.5%. Nate takes the deal. He has a new partner in the belt business
LEARN MORE: Visit http://www.missionbelt.com