August 16, 2009 10:04 PM by Cindy Adams
Tonight in the Shark Tank, five entrepreneurs presented their ideas to the anxious Sharks ready to take a bite out of their business for an investment. The products and ideas entering the Shark Tank this episode included a hip clothing line, a lifesaving device, a delectable gourmet line that surprisingly pleased the palates of the hungry Sharks, a woman who confessed she’s a little crazy, and an academic with an artistic flair.
Craig French is first to enter the Shark Tank. He created a clothing line called Crooked Jaw after breaking his jaw playing lacrosse. Craig wanted a $200k investment for 20% of his company. His clothing line was awesome, but had nothing distinguishable from others out there targeting fans of extreme sports. The fact that he attended a trade show and received no orders did not help. Daymond who created the Fubu line was not impressed and the other Sharks looked to him since he was the clothing entrepreneur.
Kevin H. dropped out first; Robert was next; Daymond decided the line had no value, and bailed; Barbara followed his lead; and finally, Kevin O dropped out. Kevin O. liked the product though, and wanted to buy a piece of clothing. Craig wouldn’t take his money and said it was a gift.
Robert Allison was next to take his chances with the Sharks. His product was Lifebelt, a device that doesn’t allow a car to start without the driver having his or her seatbelt on. Robert wanted $500k for a 10% stake in the company. The device would cost about $229 to install in a car, so the sharks wanted to know why he didn’t just make a deal with an auto manufacturer. Robert believed that would take too long and he wanted the product to be an independent company.
Barbara decided she was out. On the valuation basis of his business, Kevin H. next to jump ship. Daymond said until a car company licensed the product, it was of no value to him, and was out. Then, out of nowhere, Kevin O. offered Robert $500k for the patent and with no tiesÃƒÂ¢Ã¢Â¬”Robert tried to block the offer by offering $1 million for the patent and one phone call. Wow! Robert should have taken it, but stubbornly turned down both offers. Foolish!
Susan Knapp was the next entrepreneur to present her product to the Sharks. She created A Perfect Pear and was asking for $500k for in exchange for 15% of the business. She created cinnamon pear jelly and transformed it into a line of gourmet food products. The Sharks tried the product and fell in love with the flavor. It looked delicious!
Kevin O. offered Susan $500k for 70% of the company. Daymond also wanted in and offered $500k for 51%. Then, Kevin H. offered the full amount for 50% and Robert jumped in on that deal. Susan had to think about it and asked if anyone would go for 49%. Of course, the Sharks said no. Susan finally decided it would be beneficial to go with two with both Robert and Kevin H. Good idea Susan!
Mary Ellen Simonsen presented her product next, and asked for $100k investment for 20% equity in the company. Her product was Sticky Note Holder, which was basically an arm for sticky note pads for a laptop. She has sold none so far, but claimed to have done surveys and was sure it would sell for about $10. She kept rambling on about how many laptops would be sold, and the Sharks had enough of her. When they called her crazy, she basically agreed.
Daymond and Kevin H. were out first, but Barbara liked Mary Ellen, however, she didn’t think the product would sell, so she was out. The rest deemed themselves out as well, and Mary Ellen got nothing for her business.
Mark Furigay entered the room with Classroom Jams, an educational record label and publishing house. He wanted $250K for a 10% stake in his company. As a teacher he needed a way to teach students and relate to them at the same time. He sang a contemporary song about Shakespeare’s Juliet for his class and they loved it. He also sang for the judges and his song was great! Mark is a truly talented artist. The product would include 30 CDs and a teacher’s guide for different subjects.
The Sharks discussed going in the deal together, offering $250k for 100% of the company and Mark would be given royalties of 5% for life. Mark countered wanting to be the sixth partner. Then suddenly, Robert stepped out of the first deal and offered Mark the $250k for 100% of the company, with an option to buy back 49% after a profit was seenÃƒÂ¢Ã¢Â¬”but not opportunity for royalties for Mark. The other Sharks balked at his offer, prompting Robert to sweeten the deal and said instead of waiting for profit, he would give Mark 49% up front. This would still leave Mark without royalties. After pondering the offers before him, Mark decided to go with the first deal and the Sharks agreed to let him use his royalties to buy into the equity in time to become a partner with the Sharks. Wow! Sweet Deal!
Don’t miss next week’s episode when the Sharks attack all new entrepreneurs who believe their ideas and products are worthy of an investment,
Photo Courtesy: ABC Network