ENTREPRENEUR: J. Jones
PITCH: Jones Scones
ASKING FOR: $100k for a 25% stake
BEST PART OF THE PITCH: J. is an American entrepreneur who has created scones that are just like the kind you'd find in England. He puts his law career on hold to bake these tasty treats. He gives the sharks some scones. He's selling $5,000 in scones per month. He's in six Denver-area Whole Foods stores. At one point, he was selling $113,000 in scones per month. He made the mistake of hiring a bad manufacturer.
DO THE SHARKS BITE? Daymond likes J., but he doesn't like the business. He's out. Mark and Robert believe that J. can't control his own destiny. He's looking for answers from people other than himself. Lori believes that if J. is asking for money after 10 years in business, then something is wrong. She's not sure what it is, but she knows she doesn't want to invest. Robert doesn't have time to part of the team J. seeks. He's out. Kevin knows that there's nothing proprietary here. He can't make money with this product. J. thanks the sharks for their time. He exits the tank without even hearing Mark's decision. That's okay. He's out, too.
LEARN MORE: Visit http://www.jonesscones.com
ENTREPRENEUR: Brian Altomare
ASKING FOR: $100k for a 10% stake
BEST PART OF THE PITCH: Brian has come up with away to avoid all the hassles that the airlines and TSA has added to lugging luggage. He has a door-to-door luggage shipping service that picks up your luggage from your home and sends it to wherever you're going ahead of time. He's sold $215,000 gross in 10 months and has netted $70,000. Brian charges between $39 and $99 to ship a bag based on its size.
DO THE SHARKS BITE? Robert doesn't see this business as anything more than a premium service. He's out. Kevin says the business model reminds him of what goes on in the cellular phone market. He would push for an airline deal if he became part of this company. That's not what Brian is doing, so he's out. Daymond follows his lead. Lori feels like Brian is up against too big of a fish in FedEx. She's out. Mark thinks Brian will get crushed by the bigger competitors out there, too. He's out. Brian packs his bags and lugs them out of the tank without a deal.
LEARN MORE: Visit http://www.lugless.com
ENTREPRENEUR: Robert Gifford
PITCH: Geek Chic
ASKING FOR: $100k for a 5% stake
BEST PART OF THE PITCH: Robert is a self-proclaimed geek. He started designing furniture that is more than meets the eye. The dinner table he has in the tank can be transformed into a game-playing table and desk. There also ways to attach bins, counter holders and even wine glass holders. Robert did $2 million in sales in a year, but they were in the red by $100,000.
DO THE SHARKS BITE? Lori thinks Robert is great and loves his enthusiasm. She just doesn't know how he'll get the competitive edge on the high-end companies. She's out. Even with all the functionality of the product, Mark only sees a table in front of him and nothing more. He's just not that into furniture. He's out. Robert buys into the design, but he doesn't buy into the furniture company. He's out. Kevin thinks Robert is in a really crappy business. He's out. Daymond doesn't know if he can hang with the geek aspect, but he likes the product and how Robert is running the company. Daymond offers $200k for 25% of the company. Robert counters with $500k for a 15% stake. Now Daymond is finding a flaw in Robert's character.
THE RESULT: Daymond stays firm on his offer, but Robert thinks that his equity stake is too high. Robert the shark then offers $300k for 25%. Robert the entrepreneur thinks Robert the shark is a better partner when it comes to the geeky ways of his business. He accepts his offer over Daymond's. Sometimes being a geek can be quite sweet.
LEARN MORE: Visit http://www.geekchichq.com
ENTREPRENEUR: Paige Dellavalle & Ashley Jung
PITCH: Stella Valle
ASKING FOR: $150k for a 25% stake
BEST PART OF THE PITCH: Paige and Ashley are former West Point cadets and Army officers who strip out of their camouflage fatigues to reveal beautiful eveningwear underneath. They started a jewelry line that reflects their innate sense of style blending masculine and feminine characteristics. They need money to grow their bland on a global level. They have $75,000 in sales since they started. Their product is being tested in places like Bloomingdale's. They need money to take the idea of doing trunk shows at many different stores. Their profit margin is very good.
DO THE SHARKS BITE?Kevin believes the evaluation of the company is too high. He's out. Robert believes one of the hardest things to build is a brand. He's out. Daymond loves the story the ladies have behind them. He's afraid if he keeps listening to them they'll convince him to invest. That's how captivating the ladies are. But at the end of the day, he just doesn't like the jewelry. He's out. Lori believes there's something interesting here. She is impressed to hear that some proceeds go to the Wounded Warrior program. She wants to do something with these two ladies.
THE RESULT: Lori asks Mark to go in with him. They go back and forth for a bit before settling on an offer of $150k for 35% of the company. The ladies don't want any more talking. They accept the offer immediately.
LEARN MORE: Visit http://www.stellavalle.com/