ENTREPRENEUR: D.J. Stephan & Sean Conway
PITCH: Notehall, a Web site that allows college students to buy and sell class notes and study guides.
ASKING FOR: $90k for a 10% stake.
BEST PART OF THE PITCH: They launched at the University of Arizona and within eight months, their site was being used by 40% of the students. The note-taker/poster gets a 40% commission per transaction and Notehall takes the rest. They want to use the money to expand in other colleges.
THE SHARKS BITE WHEN: Kevin H. and Daymond are out right away. Kevin O. offers them the $90k for 51%. Barbara offers the same amount of money for 50%. D.J. and Stephan offer 15% and will give up their portion of the company if they don't hit a million dollars in revenue in 24 months. Kevin O. wants 35% and Barbara wants 25%. Robert then offers $115k for 35% which steers Kevin O. to offer the same. Barbara doesn't change her money offer, but does say they can buy her out in six months if they don't like it. Robert and Kevin O. then join forces to match Barbara's offer.
RESULT: The guys opt to partner up with Barbara feeling she was authentic with them from the get-go. This doesn't sit well with Kevin O. It seems this shark can swim on land because Kevin O. leaves the tank and follows the guys out to the lobby. He still can't believe what happened, but offers his congratulations to D.J. and Sean on their business.
WANT TO KNOW MORE: Visit www.NoteHall.com.
UPDATE: A short time ago, Barbara and Daymond struck a deal with Lisa Lloyd for her product called Treasure Chest Pets. It's a line of organizers that look like stuffed animals. But they have secret compartments for storage. Daymond has made deals with "buybuy Baby" stores and Bed, Bath and Beyond online to push the product with top retailers. Lisa says that she was in danger of losing her home a year ago. But since she made a deal with the sharks, that danger has disappeared.
ENTREPRENEUR: Lisa Lloyd, Tucson, AZ
PITCH: Treasure Chest Pets, organizers that look like stuffed animals for children.
ASKING FOR: $150k for a 20% stake.
BEST PART OF THE PITCH: The stuffed animals are full of secret compartments and the heads are magnetically attached so they can be removed as a pillow. Lisa is in about 200 stores and has made about $100,000 in sales in a year. She has 1,100 pieces of inventory that has already been sold and a stack of additional orders. She just needs the next infusion of cash to continue to grow.
THE SHARKS BITE WHEN: Kevin O. doesn't want to take on the distributional jigsaw puzzle involved and Kevin H. views this as a niche product. Both are out. Barbara offers Lisa 50k. Daymond wants 60% of the company and invites Barbara to join him for the $150 she asked for originally. Robert chimes in with an offers $150k for no equity. It'll be a loan.
RESULT: Lisa realizes that Robert's offer would be the best course of action if she "only" needed money. But in the end, she decides to partner with Daymond and Barbara. Robert admits he couldn't help her in the way the others could. He just wanted Lisa to be sure.
WANT TO KNOW MORE: Visit www.MyTCpets.com.
ENTREPRENEUR: Edwin Heaven
PITCH: Throx, the cure for the missing sock!
ASKING FOR: $50k for a 25% stake.
BEST PART OF THE PITCH: Edwin asks, "What do you do when you lose a sock?" Edwin's answer: Always have a spare on hand (or on foot). He sells three socks at a time, so that when you lose one, you still have a pair. He says, "Throx beats the competition by a foot." He has sold 8,500 units (that's 25,500 socks, right?) this year and predicts he'll sell 80,000 units (that's 240,000 socks, right?) next year..
DO THE SHARKS BITE?Maybe they can't relate because sharks have fins, not feet. Kevin O. thinks the bigger sock companies would crush him since you can't patent the concept. The others feel it's a novelty item and too small of an idea for them to make any money as an investor. They are all out but still encourage Edwin to keep doing what he's doing by himself, as he does have a foothold in the market.
WANT TO KNOW MORE: Visit www.throx.com.
ENTREPRENEUR: Danon Beres, Huntington Beach, CA.
PITCH: Washed Up Hollywood, fashion accessories, most notably its unique hardware buckles and belts.
ASKING FOR: $500k for a 25% stake
BEST PART OF THE PITCH: Danon comes from a family that has a huge background in the fashion industry. In addition to being the CEO, Danon is also the designer. His belts have appeared in magazines worldwide and have sold in over 300 stores in twelve countries. He made 435,000 sales in one year with a $50,000 net profit.
DO THE SHARKS BITE? The sharks are interested in his business, but they think he valued his company too high. Danon thinks it is worth $2 million. Robert estimates the value at no more than $700 thousand. The numbers just don't add up for any of the sharks and they are all out.
WANT TO KNOW MORE: Visit www.WashedUpHollywood.com.