- A woman from Las Vegas, NV gets the Sharks to think about investing in her back pain product; a brother and sister team from Carmel, CA, have a cool way to reduce inflammation in the body; a mechanical engineer from Emeryville, CA, hopes to lock in a deal with his high-tech bike lock; and a woman from Goodyear, AZ shares her passion for her gourmet tea shots.
- Sharks attending are Mark, Barbara, Kevin, Lori and Robert
"BetterBack" is a back supporter designed to improve posture and relieve back pain. Katherine Krug secured a deal of $750,000 for a 7.5% stake in the company. The product had a modest goal of $12,500 on Kickstarter but ended up reaching 100 times that amount. They have successfully manufactured 30,000 units of BetterBack, with each unit costing $8.05 to produce and retailing for $49. The company projects $4.5 million in online sales for the next year and has plans to expand sales by entering the Amazon marketplace. However, Barbara is no longer interested in investing due to concerns about valuation, and Mark is out because he feels the business lacks the necessary elements to be considered a legitimate venture. Robert offers $750,000 for a 20% stake, valuing the business at $3-5 million. Kevin also offers $750,000 for a 25% stake, while Lori proposes the same deal but for a 20% stake. Additionally, Kevin offers a $750,000 loan at a 7.5% interest rate for 24 months with 5% equity, and Lori makes a similar loan offer with a 36-month term and 8% equity. Ultimately, Katherine accepts Lori's offer.
"Glacé Cryotherapy" is a franchise that features a whole-body Cryotherapy device. Skyler and Brittney Scarlett, siblings and founders of Glacé Cryotherapy, secure a deal of $100,000 for a 15% stake in their business. The Cryotherapy device provides a 3-minute spa-like experience by circulating air at a temperature 250 degrees below freezing around the body. In just 11 months, they have achieved $140,000 in sales with $115,000 in gross profits. Their main operating expense is the cost of gas, while the spa space rental amounts to $3,200 per month. Each Cryotherapy machine costs $55,000, and a single 3-minute session is priced at $65. Kevin opts out due to the lack of proprietary elements, and Mark is concerned about ability to scale. Robert decides not to invest as the plan is to open only one additional store rather than aiming for national domination. Lori also declines as she doesn't find the business investment worthy. However, Barbara, with her expertise in franchise driven businesses, offers $100,000 for a 30% stake, and the Scarlett siblings accept her offer.
"Linka" is a smart bicycle lock and alarm system created by Mohamed Mohamed. He seeks a $250,000 investment for a 10% stake in his business. With approximately 1 million bikes stolen in the US each year, Linka aims to provide enhanced security. The alarm is activated when someone tries to run away with the bike, deterring potential thieves. The product costs $45 to produce and retails for $139. During the Kickstarter campaign, Linka raised $26,000 and achieved $130,000 in pre-sales. After the campaign, they generated $40,000 in sales. Barbara doesn't see a practical application and opts out. Robert believes a regular chain is a better deterrent, so he also declines. Kevin is out due to valuation concerns, and Lori requests a louder alarm, leading her to pass on the opportunity. Mark is not convinced of the product's cleverness and market potential, so he decides not to invest.
"Teaspressa" offers concentrated tea shots made in a similar fashion to espresso. Allison DeVane, the founder, is seeking a $50,000 investment for a 10% stake in her business. Teaspressa operates both a physical store and sells its products through retail channels. In the first five months, they achieved $26,000 in sales. The product is sold for $12, and a patent is pending for Teaspressa's unique brewing process. Allison also owns machines that convert her tea into "tea-spressos." However, during the presentation, Allison fails to effectively communicate the connection between her storefront, retail business, and the machines. She requires $50,000 to improve her website and complete the development of the machines. Barbara is not impressed with Allison's communication skills and decides not to invest. Kevin also opts out because he struggles to understand Allison's business. Overwhelmed, Allison starts crying. Mark decides it is too early for him to invest, and Robert believes Allison lacks focus in her business. Lastly, Lori decides not to invest due to the early stage of the business.
Update on "PiperWai" (Episode 711): Jess Edelstein and Sarah Ribner made a deal with Barbara for their all-natural deodorant. After appearing on the show, their sales skyrocketed from $110,000 to $1.3 million within just three weeks. They faced a back-order period of three to four weeks due to the increased demand and secured a second co-packer to meet the production needs.
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