PITCH: Baby Loves Disco
ASKING FOR: $150k for a 10% stake
BEST PART OF THE PITCH:Heather and Andy tour the country in a custom-fitted disco van throwing incredible parties. The reason their parties are so much fun is because of their clientele. They cater to families so the kiddies can join in on the dancing. They are party promoters for kids. They average about 350 people per party. They've grossed $2 million in the last five years.
DO THE SHARKS BITE? Mark believes Heather and Andy polluted their pitch when they started talking about sponsorships and other stuff. He's out. Daymond is also confused as to what their plan is going forward. He's out. Kevin doesn't understand how he could possibly make money with these two. He's out. Lori is also confused by the business model. She's out. Robert also can't buy into the business concept. Baby Loves Disco is dead to the sharks.
ENTREPRENEURS: Ryan "Cowboy" Ehmann
PITCH: Lose 12 Inches with Any 12 Workouts
ASKING FOR: $120k for a 25% stake
BEST PART OF THE PITCH: Ryan was a rodeo rider on the pro circuit. He suffered from chronic lower back pain. He got certified as a personal trainer to learn more about his body. He developed a workout that shredded his body fat down to 4.3% and returned to the rodeo circuit to win a championship. Ryan created a software program that calculates your heart rate for a training program to work more efficiently. He developed a machine called "Rodeo Abs" that gives you a full body workout. The machine made a million bucks in sales overseas.
DO THE SHARKS BITE? Kevin believes there's someone out there who is the right investor for Ryan, but it's not him. He's out. Mark believes Ryan is probably a great trainer, but he can't figure out who this guy is. He's out. Robert thinks Ryan's energy is infectious, but he can't get in business with him. He's out. Lori believes there's something potentially great here, but she's afraid of the claims Ryan is making. She sees too many challenges here, so she can't be his cowgirl. That leaves Daymond.
THE RESULT: Daymond likes Cowboy Ryan more than the product. That's why he's prepared to give him the $120k for 25%. YEEE-HA! Cowboy Ryan screams with delight as gives Daymond a big hug. He promises to make him proud. Daymond knows he will do just that.
UPDATE: The Painted Pretzel
In Season 3, Raven Thomas sealed a deal with Mark for her candy company. Her sales have gone from $75k in sales to almost $350k. She's been able to hire a small team to keep up with orders. Her pretzels are now sold in Landmark Theaters thanks to Mark. Raven can finally enjoy financial security for her family.
ENTREPRENEUR: David Artuso & Mike Kane
ASKING FOR: $160k and a 20% stake
BEST PART OF THE PITCH: David and Mike created a brand of accessories to include a safety net of accidental coverage for your mobile device. If a CellHelmet case fails to protect your device, the guys will repair or replace it for 50 bucks. They've sold 1,300 cases in four months with about $60k in revenue.
DO THE SHARKS BITE? Kevin believes the guys have a horrible idea. He's out with extreme prejudice. Robert isn't a big fan of the "case" business. He believes David and Mike are trying to make money off people who are afraid their phone is going to break. He doesn't buy into the strategy. He's out. Lori and Daymond follow his lead. Mark understands the business plan, but worries that other people with more money will come in and crush them. He's out.
ENTREPRENEURS: Byron Young
ASKING FOR: $200k for an 20% stake
BEST PART OF THE PITCH: Byron feels he has come up with the most versatile and comfortable beanbag-like chair in the world. The chair actually unzips to become a bed. Lori tries it out and finds it to be very comfortable. Byron has a utility patent that he's enforced twice against much larger companies. They did $1.4 million in sales in their most recent year. Byron wants to use his money for marketing and wants a strategic partner.
DO THE SHARKS BITE? Daymond can't really give Byron the assistance he needs, so he's out. Mark likes what Byron is doing, but doesn't like the fact that a lot of the business depends on impulse buying. He's out. Kevin doesn't believe that the company is worth what Byron says it is. He's out. Robert will give $100k for 40% if Lori will partner with him. But Lori doesn't want a partner for this. She offers $200k for 60% of the company.
THE RESULT: Robert goes out when he realizes Lori won't partner with him. Byron would like to maintain control of the company. He wants $200k for 40%. Lori thinks she'll have to do too much work. She offers to reduce her equity to 58%. Byron says he came into the tank to make a deal. He trusts Lori to make his product a household name. Hopefully they'll both be sitting pretty in the chair biz.