ENTREPRENEUR: Michael and Babz Barnett
PITCH: Romp N' Roll, a chain of children's play and learning centers
ASKING FOR: $300k for 10% stake in his business.
BEST PART OF THE PITCH: They have 10 Romp N' Roll locations from Pennsylvania to Puerto Rico. They've already done $4 million in revenue over the past five years. There are classes for gym, art and music all under one roof. Their tagline: "Nurture the genius. Unleash the goofball."
DO THE SHARKS BITE? Kevin O., Kevin H. and Daymond are pretty much out right away. Barbara had a bad experience at Gymboree, so she's out, too. Michael and Babz would like to respond to the issues that all the fleeing sharks have with their company. This bugs Robert. He's still in and yet they seem to be focusing their energy on those who are out. Nevertheless, he offers to give them the $300k for 51% of the business.
RESULT: As the Barnetts discuss the offer in private, Kevin O. offers to go 50-50 with Robert. When Michael and Babz return, they make it clear that they do not want to give up control of their company, so they counter with an offer of 20% equity. But Robert and Kevin just can't Romp N' Roll without control. They are out.
WANT TO KNOW MORE: Visit www.rompnroll.com .
ENTREPRENEUR: Marix Stone & Dr. Nancy Tanchel
PITCH: Hells Bells Helmets, designer helmets that are safer and stronger than the competition
ASKING FOR: $500k for 20% stake in the business.
BEST PART OF THE PITCH: They own a utility patent to place 3D designs on motorcycle helmets as well as any other kind of sporting helmet. They are on track to bring in $300k in sales for the motorcycle helmet alone. Kevin O. tries on one of the helmets bearing a fiery 3D skull design. Ever seen a shark ride a hog?
DO THE SHARKS BITE? The Kevins feel that the potential is great, but they can't bring themselves to cut a check for a half million bucks. It's not Barbara's cup of tea, so she's out. Daymond offers to go 50-50 on the deal with a plan to license the product to a bunch of companies. Robert was going to offer $500k for 70% equity, but knows that Daymond's offer is better. So he's out.
THE RESULT: Marix and Nancy know that Daymond has a great history with branding and sales. They take the deal and hope to wear these helmets while cruising down the road to riches.
WANT TO KNOW MORE: Visit www.HellsBellsCustoms.com .
ENTREPRENEUR: Dorene Humason, President of The Chef in Black, Inc.
PITCH: Jaden Chinese Salad Dressing and Seasoning mix.
ASKING FOR: $50k for a 10% stake in her company.
BEST PART OF THE PITCH: The dressing is a tasty blend of all natural spices and seasonings. Dorene has the product in 1,300 grocery stores. Barbara is impressed at how well Dorene answered all of the questions the sharks hurled at her.
DO THE SHARKS BITE? The male sharks all smell fear in a food investment and get a mixed message as far as branding the Jaden name or the Chef in Black company. They are all out. Barbara says she'll give Dorene the $50k for 40% of the business. She also wants Dorene to acknowledge that she has confused branding. She must pick one and be committed to selling only the dry salad dressing for the time being.
RESULT: Dorene has invented $300k in the company and the recipe is very unique. She asks Barbara to come down to 35%. After a few tense moments (and a few more bites of salad by Kevin O.), Barbara says, "Dorene, we've got a deal."
WANT TO KNOW MORE: Visit http://www.chefinblack.com .
ENTREPRENEURS: Andy Sperry
PITCH: Ink Flip, ink cartridges for printers
ASKING FOR: $150k for a 20% stake
THE BEST PART OF THEIR PITCH: Andy provides Ink Flip customers with spare or backup cartridges for their computer printers in individually packaged boxes. The next time the ink runs run dry, customers take the full cartridge out of the box, pop the empty one back in, and mail it off in the prepaid, preaddressed box to go into the outgoing mail. Ink Flip then sends back a refilled cartridge.
DO THE SHARKS BITE? Robert says, "Your business model is predicated on getting customers, but you don't know the cost of getting those customers." Because he doesn't have that info, Kevin O. is out. Kevin H. and Daymond also bail fearing the risk involved. Robert and Barbara don't want to offer up their money to test the market. They are out as well. In the end, the sharks feel that Andy can still get what he wants, but the journey may take a little longer than he'd hoped.
WANT TO KNOW MORE: Visit http://www.inkflip.com .