- Entrepreneurs from Massachusetts rent tiny houses in the woods where people can unplug, recharge, and rebalance their lives; former Harvard University classmates hope the Sharks agree that snack chips made with cricket flour are the future; a concertgoer from Minnesota pitches earplugs that filter out damaging levels of sound; and a Texas couple creates a modern version of a favorite childhood toy.
- Sharks on the Show: Mark, Barbara, Kevin, Lori, and Chris Sacca.
The first pitch is for "Chirps," a brand of corn chips that are enhanced with cricket protein. The entrepreneurs, Laura D'Asaro and Rose Wang, are seeking $100,000 for a 7% stake in their company. They highlight the environmental benefits of using crickets as a protein source, mentioning that it takes 2000 gallons of water to produce a pound of beef compared to only 1 gallon for a pound of cricket. The chips sell for $2 and cost 48 cents to make, with a potential cost reduction to 40 cents. They have secured shelf space in 73 airport stores and achieved $200,000 in sales this year. Their projections for next year are $1.5 million, based on expansion into museums, zoos, aquariums, and theme parks. Kevin expresses concerns about the cost of acquiring retail shelf space, but Laura and Rose reveal that they have bootstrapped their business by winning $200,000 at pitch competitions. Mark offers $100,000 for 20% equity, leveraging his experience in the industry. Lori decides to pass, considering Mark's offer to be a good one. Laura and Rose negotiate with Mark and agree to a deal at 15% equity.
Next, Jackson Mann presents "Vibes," a set of high-fidelity earplugs designed for use at concerts. Jackson is seeking $100,000 for a 20% stake in his company. He explains that Vibes can lower decibels at concerts without compromising the quality of the music, reducing an average of 22 decibels. The earplugs cost $4 to produce and retail for $23. While they have generated $30,000 in sales within five months through online, concert, and some retail channels, Kevin raises concerns about competing products available at a lower price point. Jackson mentions that the product is patent pending. Chris and Barbara express worries about getting Vibes to the point of purchase. Mark suggests that it should be given away for free, but realizes the cost makes it unfeasible. Ultimately, Mark, Chris, and Barbara decide to pass. Lori believes it will be a challenging sell and opts out as well. Kevin offers $100,000 for 25% equity and proposes a $2 royalty per unit until $100,000 is recouped. However, Jackson rejects the offer and walks away.
The entrepreneurs behind "Popup Play," Amelia Cosgrove and Bryan Thomas, pitch their custom-designed play sets that children can create using a tablet. They are seeking $250,000 for a 6% stake in their software-based company. The play sets are priced at $99 with an additional $10 for shipping and handling. They have achieved $330,000 in sales within 11 months, with $300,000 coming from an exclusive deal with a large automotive company. They also mention 2,100 downloads and $15,000 in advertising expenses. Mark notes that the commercial business-to-business market has a longer and more expensive sales process. Kevin decides to pass due to the difficulties of the commercial market. Barbara feels the price is too high and opts out. Lori believes it's too early for her to invest. Amelia and Bryan have raised $325,000 at a $3 million valuation so far. They accept Chris's offer of $250,000 at a $3 million valuation as a convertible note with an 8% interest and a 36-month maturity.
The last pitch is for "Getaway," a rental service that offers camping sites with tiny houses. Pete Davis and Jon Staff are seeking $500,000 for a 5% stake in their company. The cabins are located two hours outside of the city and are rented out at $100 per night. They assure the Sharks that a site manager lives nearby to address any issues. The land costs them nothing, and each cabin costs $30,000 to build, with a payback period of 18 months. Currently, they have ten cabins with close to 100% occupancy. They have raised $1.2 million in seed money at a $7 million valuation and achieved $300,000 in revenues this year with a projected $2.1 million for the next year. Their long-term goal is to expand to 30 cities with 30 units per city, requiring $30 million in capital investment. Kevin suggests a 7-year payback period, but Pete and Jon argue for 10 years. Kevin offers a $500,000 loan at 11% interest for 3 years with a 2.5% equity stake. Barbara finds the valuation too high and decides not to invest. Mark believes Scalability will be challenging and opts out. Lori is not interested in the camping industry and passes as well. Chris expresses concern that Pete and Jon are not showing enough enthusiasm for Kevin's offer, indicating a lack of belief in their own equity. Chris decides to invest under the same terms as their prior investors. Kevin bows out. Pete and Jon counteroffer by offering Chris $500,000 at a $7 million valuation, but Chris declines, knowing that the other investors would not agree to that arrangement. Pete and Jon leave the tank without a deal.
During Barbara Corcoran's profile segment, she shares her inspiring journey to business success. Growing up in a two-bedroom flat in New Jersey with nine siblings, her father worked as a printing press foreman during the day and washed trucks at night. Barbara, who was dyslexic and labeled as the "dumb kid," pursued higher education and became a teacher but found it unsatisfactory. While Waitressing at a diner, she met her boyfriend, who eventually took a 51% stake in her real estate sales business. After two years, she had 14 agents and $500,000 in sales. However, her boyfriend unexpectedly announced that he was marrying her secretary, prompting Barbara to start afresh. She founded the Corcoran Group as a real estate broker in New York City, facing challenges as a female entrepreneur competing against the established old boys' club. By 2001, Barbara Corcoran became known as the queen of New York real estate.
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