- A 14-year old entrepreneur from Spokane, WA, offers her product which gives pet owners a way to videochat with their animals and even deliver treats while away from home; a New York-based entrepreneur has a hometown t-shirt that has over 1 million in sales so far and attracted celebrities to wear it, and another New Yorker with proprietary software to manage your online and social reputation are spotlighted this week.
- During the episode, the Sharks on the show were Mark, Daymond, Kevin, Lori, and Robert.
The first entrepreneur to pitch was Mikaila and Theo Ulmer, the founders of "BeeSweet Lemonade." Their honey-sweetened lemonade with flax-seed was being sold in Whole Foods markets, and they were seeking a $60,000 investment for a 10% stake in the company. They had $25,000 in sales year-to-date and needed funds to expand their sales base. The product was priced at $3 and cost $1.5 to produce, with potential for costs to go below $1 at 2,700 units. Kevin declined to invest since Mikaila was not fully dedicated to the business, and Robert opted out due to the highly competitive nature of the lemonade industry. Mark didn't think it was Mikaila's best idea and also decided not to invest. Lastly, Lori passed because she didn't consider the product a hero. Daymond offered the requested amount of $60,000 for a 25% stake, contingent on partnering with distributors, and Mikaila accepted his offer.
Next up was Patrick Ambron, the founder of "BrandYourself," a software designed to improve search results for individuals and businesses. Patrick was seeking a $2 million investment for a 13.5% stake in the company. The software offered a free version and a premium version priced at $100 per year. They had 300,000 users and 5,000 subscribers, with 500 subscribers utilizing the high-end concierge service priced at $5,000 per year. Sales for the year were $2.2 million, a significant increase from $800,000 the previous year. Kevin opted out due to the valuation, and Daymond wasn't interested in the tech industry. The company had recently raised $3 million at a $15 million valuation. Mark passed because Patrick hadn't solved the issue of social media profiles for personal brands. Robert made an offer of $2 million for a 25% stake, but Patrick declined the offer.
The third pitch was by Brooke Martin and James Pelland, the creators of "iCPooch," a device that allowed two-way video chat between pets and their owners while also dispensing treats. They were seeking a $150,000 investment for a 20% stake in the company. The device was priced at $149, and they had sold 115 units, costing $60 to manufacture. They were about to ship to Bed Bath & Beyond and were selling on Amazon. The device required customers to install an iPad to enable the two-way communication. Mark opted out, considering the additional tablet requirement a deterrent for most people. Lori passed because she didn't see it as a mass-market product, Kevin didn't see the problem it was solving, and Daymond wanted market proof before investing.
The final pitch was from Ryan Shell, the founder of "The Home T," a clothing and accessories brand that focused on customers' home states or lands. He was seeking a $250,000 investment for a 5% stake in the company. They had sales of $1.1 million and profits of $540,000 for the year. The products were priced at $30 each, and their marketing was primarily driven by word of mouth. They had celebrities wearing their T-shirts and operated mostly online. Kevin passed, considering it a commodity. Daymond believed Ryan wasn't interested in making a deal, and Mark thought it was still a product and not a full-fledged company. Robert made an offer of $250,000 for a 35% stake, while Lori offered $250,000 for a 30% stake. Ryan countered around 10-15%, but both Robert and Lori decided to back out. Just before Ryan left the room, Daymond offered $250,000 for a 20% stake, but Ryan still declined the offer, affirming Daymond's earlier assumption.
In an update, it was revealed that Barbara invited some of her top investments, including Grace and Lace, Pipsnacks, Villy Customs, Ryan's Barkery, Daisy Cakes, Cerebral Success, and Cousin's Maine Lobster, on a weekend retreat to her house in Utah. The combined sales of these companies before appearing on the show was $2 million, but after their appearance, their sales skyrocketed to $24 million.
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