ASKING FOR: $200k for a 10% stake
BEST PART OF THE PITCH: Derek is a proud Hoosier from Indiana University who saw a need for a coat check business in his college town. He developed a technology that matches a person's face to their belongings. You type in your name onto a computer screen, swipe your credit card and the person checking the coat can now see whose face goes with which coat. Derek wants to sell the franchise so that others can use his technology to open a CoatChex at many locations.
DO THE SHARKS BITE? Mark believes that Derek's plan to sell franchises to area developers who are then supposed to sell to franchisees is a horrible one. In fact, he screams the word "horrible" over and over once this info is verified. Daymond believes that Derek is a thief because he's valuing his company at $2 million. Derek seems to be sinking in the tank until he lets the sharks know about the patent he has that service other areas like valets, dry cleaners, baggage holding businesses, etc. Daymond believes there are other similar products out there, so he bails. Kevin hates seasonal businesses, so he's out. Barbara follows his lead. Only two sharks remain.
THE RESULT: Robert and Mark both like the product even though they aren't crazy about the business plan. Robert wants to hear another offer. Derek goes up to 15% equity, but that's not enough. Robert's out. Mark offers $200,000 for 33% equity. Derek makes a quick call to his business partner, who advises him to pass on the offer. He counters with a 20% offer, but Mark can't go for that. Derek checks out of the tank without a partner.
Last season, Stephan Aarstol, the maker of Tower Paddle Boards, made a deal with Mark Cuban for 30% of his company. Since then, the company has gone from 100,000 in lifetime sales to 800,000 in just a few months. The company is on pace to do $1.5 million in sales through their website alone. Stephan feels his experience in the tank has truly jump-started his career and this is just the beginning.
PITCH: Bev Buckle
ASKING FOR: $50k for a 10% stake
BEST PART OF THE PITCH: The sharks go crazy when Jay flips open his belt buckle to show that it's the only buckle out there that can actually hold your beverage while at a sporting event or in a bar. He can design the faceplate to have any brand, logo or color. Jay screams, "Ba-Bam!" It's the Bev Buckle! He has sold over 4,000 units at festivals and events all over the country, but that was over four years. Jay has a patent and two envelopes. The first envelope contains a list of retailers that want the product. The second one holds a list of major raceways that want the buckle sold trackside. Jay admits that he had a recent order that was 26% defective from the manufacturer.
DO THE SHARKS BITE? Daymond says Jay's lists are worthless because nobody on them has written him a check. He's out. The math doesn't add up for Mark, so he's out. Robert believes that investing in this product will take up a lot of his time, so he wants 75%. Kevin offers Jay the $50,000 with no equity. Instead, he wants a 12% royalty on every buckle sold. Barbara will jump in for 51% of the company.
ASKING FOR: $100k for a 10% stake
BEST PART OF THE PITCH: Todd is a licensed massage therapist who believes it makes more sense to give rubdown with one's feet. He has a handrail system that lets him stand on pressure points that allows him to apply more pounds per square inch. Barbara volunteers for a massage that leaves her feeling great. Todd has 30 certified body walkers at his disposal that he's accumulated over seven years.
DO THE SHARKS BITE? Mark wants to know where Todd's passion lies since he's a triathlete who trains a lot. He wants to invest in someone whose sole focus is the company. He doesn't see that in Todd. He's out. Barbara loved the massage, but she doesn't see this as unique in any way. She's out. Daymond and Robert follow her lead. Kevin doesn't see anything proprietary with this model. He also doesn't see any way he can make money from this. Todd is a dead man walking to him. Todd's Bodywalking pitch just doesn't rub the sharks the right way.
PITCH: Buggy Beds
ASKING FOR: $125k for a 7% stake
BEST PART OF THE PITCH: There's been a lot of bad press about all the bedbugs out there lately. They are causing a global epidemic. One female bedbug can lay up to 500 eggs. That's why these ladies created a bedbug glue trap to serve as an early warning system to let you know if you have a problem. The product is tested and proven. It's not toxic in any way. They have $150,000 in sales over six months and have a deal with Home Depot and Burlington Coat Factory. They have already turned down a $5 million offer for trademarks and patents in the past.
DO THE SHARKS BITE? Kevin asks the ladies to step outside because he knows all the sharks will want a piece of this deal. Mark, however, is not tipping his hand on whether or not he's interested during a private chat. Kevin invites the ladies back into the tank to offer them $250k for 25% of the company. He invites the other sharks to join him. Daymond will go in with him. Mark still has nothing to say. Barbara offers $150k for 15% while preaching girl power, but pulls her offer when they don't respond right away.
THE RESULT: Mark finally speaks up to say that he thinks they should work with all the sharks. Robert agrees. They even convince Barbara to come back in. For the first time in the history of the tank, all five sharks are teaming up. The ladies take the deal on the condition that Mark teaches Veronica the Cha Cha Cha. This negotiation has officially been put to bed.