SHARK TANK - EPISODE 202
ENTERPRENEUR: Nikki Pope
PITCH: Toygaroo, a sort of Netflix for toys
ASKING FOR: $100k for a 10% stake
BEST PART OF THE PITCH: Nikki says her company is like Netflix for toys. She has a website listing over 300 types of toys. Parents can order toys for their kids. Once they are done playing with them, they can send the toys back to Toygaroo for a new batch. Nikki says they sanitize the toys upon return and shrink wrap them before shipping again. No one else is doing this. There's a monthly membership fee that starts at $35 per month. Nikki did a soft launch with 500 customers.
DO THE SHARKS BITE? Robert and Kevin O'Leary want to know what it'll cost in inventory to make the business grow. $64,000 will cover a year of toys. Daymond is out when he learns that Nikki only owns 10 percent of the company while her husband owns 50. Kevin O. is interested even though he doesn't believe this is a million dollar business just yet. It's unlike him to take a leap of faith. He offers the 100k for 35%. Robert and Mark Cuban say they'll give $100k each for 40%. Barbara can't compete, so she's out.
THE RESULT: Nikki has two solid offers on the table. She likes the fact that Kevin has experience with the toy companies. He asks Nikki if she'll partner with him if he matches Robert and Mark's deal. She nods and the deal is done. But wait! There's more! Kevin likes what Mark brings to the table, so he wants him to partner for half the cash. Mark agrees. This leaves Robert feeling like a toy no one wants to play with anymore.
ENTERPRENEUR: Matty Sallin
PITCH: Wake N' Bacon
ASKING FOR: $40,000 for a 20% stake
BEST PART OF THE PITCH: Matty has built the world's first alarm clock that actually wakes you up with bacon. Things start cooking in the chamber as it heats up some precooked pieces of bacon that are ready to eat when the alarm goes off. Matty is looking to create a functional prototype so that he can pitch it to retail and manufacturing partners. His slogan is "rise and swine."
DO THE SHARKS BITE? The Sharks are a bit turned off by the fact that Matty doesn't have a projected sales number. Kevin O'Leary wonders if folks would ever want an oven camped next to their bed. He, Robert and Barbara are out. Even though Daymond really likes bacon, he's out. Mark is interested, but thinks Matty needs way more money. It's a whimsical idea, but he's out, too. Matty still thinks he has a sizzling idea and vows to continue to find a way to bring home the bacon on his own.
ENTERPRENEUR: Brian Spencer
PITCH: Vurtego Pogo Sticks
ASKING FOR: $500 for a 20% stake
BEST PART OF THE PITCH: Brian believes his product could be the next big thing in action sports. His dynamic pogo stick costs about $100 to make and retails for $330. The video Brian provides shows folks doing amazing things with his product. He wants to mass produce these things to knock his most successful competitor from the top spot.
DO THE SHARKS BITE? The Sharks believe this is something that could thrive as a specialty product. Barbara has safety concerns, so she's out. Mark says mass market isn't the way to go here. The second Brian does that; his product will lose some of its coolness. He's out. Robert, Kevin and Daymond follow his lead. With the advice the Sharks gave him, Brian vows to bounce back with his pogo stick venture.
ENTERPRENEUR: Joe Moore
PITCH: First Defense Nasal Screens
ASKING FOR: $500k for a 10% stake
BEST PART OF THE PITCH: Joe has a unique solution to protect against germs and allergens. His lightweight, non-inserted nasal screens have been clinically proven to reduce the inhalation of allergens, pollen, pollution and more. You just peel 'em and stick 'em on your nose. Mark says, "Are you kidding me?" Joe assures him that he's very serious. He's sold 1.7 million units at 60 cents wholesale. Joe has one big client from the United Arab Emirates that has given him an $8 million contract over the next six years. This is a worldwide product.
DO THE SHARKS BITE? The Sharks initially thought this guy was a joke. He's not. He needs money to fulfill the big order he has overseas. Barbara thinks the cost of educating people about the product would be too high. She's out. Kevin O'Leary offers to give Joe the $500k but wants a 15% royalty until he recoups his investment. He also wants 20% equity. Mark wants to team up with Kevin. Daymond offers $800k for a 30% stake and 10% royalty. Kevin offers a million bucks for the whole company. Joe is a cancer survivor who wants to stay with the company. Daymond offers a million bucks for a 30%
THE RESULT: Joe can't sell his entire business for $2 million, so Robert offers him $4 million. That's the largest sum offered in Shark Tank history. Joe asks for $5 million which forces Robert to say he's out. Kevin and Mark bring Daymond into their offer which has now changed. They will give up $750k for a 30% stake and a 10% perpetual royalty. Joe accepts the offer as long as Mark provides season tickets to Mavs games. At the end of the day, this deal was certainly nothing to sneeze at.