- The Sharks bid over the asking price for one product; another pitch elicits a negative response; and two different entrepreneurs try to attract bids for a full-length mirror designed to build self-esteem and redefined drones.
- In this episode of Shark Tank, several entrepreneurs pitched their businesses to the Sharks: Mark, Daymond, Kevin, Lori, and Robert.
The first entrepreneurs, Jordan Barrocas and Daniel Fogelson, presented their product called "Three Jerks Jerky." They offered $100,000 for a 15% stake in their premium beef jerky company, which was made from filet Mignon. With sales of $350,000 in the past 12 months and a retail price of $12 (twice the price of generic jerky), they needed the investment to increase their inventory. The jerky could be stored for a year, and they planned to use a co-packer. Their goal was to get their product into national chains. While Kevin initially offered $100,000 for a 33.3% stake, Mark decided to opt out due to the competitive nature of the business. Robert and Daymond both offered $100,000 for a 20% stake, and Lori matched their offer. Kevin then increased his offer to $150,000 for a 33.3% stake. Daymond countered with $100,000 for a 17.5% stake, and a negotiation ensued, resulting in Kevin accepting a deal for $175,000 to $200,000 and a 33.3% stake. However, the entrepreneurs ultimately chose to go with Daymond's offer of $100,000 for a 15% stake, with the option to buy an additional 15% for $100,000, as well as the support of Robert and Lori.
The next entrepreneur, Belinda Jasmine, presented her product called "The Skinny Mirror." It was a mirror that reflected a slightly slimmer reflection to boost self-confidence. Belinda was seeking $200,000 for a 20% stake in her business. She had sold 350 units for $85,000, mainly to hotels and clothing stores. Belinda mentioned that big-box stores were interested in placing a $750,000 order, but they wanted her to remove her logo from the mirror. Believing that it would be unethical, she declined the offer. The consumer version of the mirror retailed for $160. Kevin expressed skepticism and called it a sham, leading him to opt out. Mark and Robert were concerned about the potential negative impact on the brand if customers realized the discrepancy between their appearance in-store and at home, leading them to also opt out. Daymond and Lori shared similar concerns and chose to opt out as well.
The third entrepreneurs, Rob Bouley and Lara Riley, presented their product called "Switch Witch." It was a children's book and doll set designed to encourage children to trade their Halloween candy for a gift. They were seeking $55,000 for a 25% stake in their business. The product retailed for $30, and they had sales of $15,700. The Sharks found the concept to be a bit forced and felt that it lacked viral potential. Kevin decided to opt out, and Robert, Lori, and Mark followed suit. Daymond explained that the business still seemed like a hobby, so he also opted out.
The final entrepreneurs, J.D. Claridge and Charles Manning, presented their business called "XCraft," which offered a personal use drone that could convert in-flight from hover mode to a fast forward-flight plane mode. They were seeking $500,000 for a 20% stake in their company. The drone could reach speeds of 60 mph and fly up to 10,000 feet. The cost to produce the drone was $400, and it retailed for $1,800. They had pre-sales of $173,000, with $143,000 coming from Kickstarter. They also had another product in development, which involved using the computational power of a smartphone attached to a shell with rotors to create a drone. This product retails for $300. They planned to license this product. They needed the investment to fund inventory and complete the development of the phone drone. Kevin offered $750,000 for a 25% stake, and Daymond and Lori both matched that offer. Seeing a potential bidding war, the entrepreneurs proposed a syndicate deal with all the Sharks at a $10 million valuation. Daymond opted out, stating that the fair value was $6 million. Kevin expressed a desire for at least a 5% stake, so the entrepreneurs offered a 25% stake for $1.5 million to all the Sharks. Ultimately, all the Sharks accepted this offer. Mark accepted after asking why the entrepreneurs didn't take venture capital money, to which they replied that the Sharks' hands-on approach was more appealing to them.
An update was provided on a previous deal made with Elyse and Nick Oleksak, who partnered with Lori for their stuffed bagels company, "Bantam Bagels" (featured in Episode 611). Since appearing on the show, their sales had increased significantly, going from $200,000 pre-tank to $2.1 million post-tank in just eight months. They had also re-branded their product and closed a deal with Starbucks, which resulted in their bagels being sold in 400 stores. Additionally, they had secured a deal with Delta Airlines to have their bagels featured on the first-class menu in the near future.
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