- Millennials from Detroit, Michigan, create a line of premium shirts for shorter men; two Los Angeles, California, photographers invent a high-end photo booth; a police officer and former Marine from Cumberland, Rhode Island, markets a no-drill, no-hole curtain rod brackets; and two men from Coconut Creek, Florida, invent a personal flotation device with multifunctional options.
- In the Tank, we saw a lineup of entrepreneurs seeking investment for their diverse range of businesses. Sharks attending are Mark, Daymond, Kevin, Lori, Robert
First up were Steven Mazur and Eric Huang, presenting "Ash and Anvil," a venture catering to the shorter demographic with its specialized shirts. They needed $100,000 for 12.5% equity and had already achieved $130,000 in sales within just nine months. The product sells for $79, with 55% margins. Kevin had questions about customer targeting, and Robert bowed out as it wasn't his fashion territory. Lori opted out due to the lack of offerings for women, while Daymond didn't feel excited about the market potential. In the end, Mark extended an offer of $150,000 for 25%, and Kevin proposed $100,000 for 15%. Ultimately, the entrepreneurs accepted Mark's offer.
Next in the Tank was "Mirmir," brought to us by Sean Spencer and Ryan Glenn. They sought $350,000 for 10% equity, presenting a portable photo booth with unique technology that enhances skin tones and produces professional-grade photos. The company had amassed $1.4 million in sales over three years. They had a base package for $2,750 and a high-end option for $3,650, primarily targeting weddings and events. Need more machines and marketing. 1 machine costs $32,000. They have invested $250,000 in the company already. In 4 markets currently, and can not meet demand for their product. Mark is very skeptical about the IP developed by the guys, as the filter and the smoothing software already exist. Mark is out as he does not see the RoI for an investor. Daymond is out as the tech market moves too fast. Lori is out as the guys are focusing more on events and this product may not sit well in a sports event setting. Kevin offers $350,000 as loan @18% interest, 5% equity. Robert wants 50% equity as he agrees with the events and corporate side of the business plans the guys have. Robert offers $700,000 for 20%, the guys accept.
Derrek Burr stepped into the Tank with "Kwik-Hang," a curtain rod bracket business. Seeking $80,000 for 20% equity, he presented a patented product that required no screws or nails, utilizing the micro space between windows and walls. Can hold rods between 0.25 inch and 1.00 inch. tooling for bigger sizes is expensive. Sales of $120,000 in 3 years. Last year sales are $42,000. Costs $3.15 sells for $11 per unit. Sales are mostly online. Derreck is a serving police officer. Kevin is worried who runs the business. Mark is out since Derrek is still figuring out how best to run the business. Lori is out as this is a licensing play and advises not to give up his day job. Daymond is out as Derrek needs to slowly grow, organically, while working a day job. Kevin is out as the business cant support an investor. Robert is out he likes Derrek's story, but wants him to find a new problem to apply himself to.
The final pitch featured Justin Rietema and Doug Schultz with their "Human Bobber," a multi-functional personal flotation device, which had gained Coast Guard approval. The vest sold for $90, with a production cost of $27.8. The ask is $120,000 for a 15% equity stake in the company. The vest is Coast guard approved. Sold $63,000 worth of product in the last 3 years. Patent and coast guard approval took a long time. Mark says the product wont sell without demo, so has to go online and not retail. While online is a much smaller market. Kevin offers $120,000 for 33.3%. Mark is out as it is just too much work to get the business in order. Lori is out as this is too early for her. Robert is out as this is a feature to an existing product, so he advises licensing. Daymond is out as this is not a retail product. Mark wants Kevin to give 10% of the company to him out of his 33.3% so Mark can help out with all the back office stuff, but Mark wont pay anything for it. Kevin asks the guys to pay additional 10% to Mark out of their share. Kevin + Mark offer $120,000 for 33.3% to Kevin and 10% to Mark, without any payment from Mark. The guys accept.
In an update on a previous entrepreneur, Cyndi Lee's business, Safegrabs, had flourished after securing a deal with Lori on a silicone-based kitchen grab mat. Sales had reached $2.4 million, with a significant boost from QVC where Lori sold $300,000 worth of the product in just 10 minutes. This success allowed Cyndi to move out of her parents' house.
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