August 31, 2009 12:12 AM by Cindy Adams
Tonight in the vicious Shark Tank, five brave entrepreneurs enter, but only two businesses are successful of winning the favor of the Sharks. A gift card maven, a kind soul, a man whoâ€™s jacked up on caffeine, a man who hates graffiti, and two women who want to protect babies enter the Shark Tank toÂ offer equity in their businesses for an investment that could change their lives for the better.
First into the Shark Tank was Kwame Kuadey with his company, Gift Card Rescue. He wanted $150k for 30% of his business. The company buys unused gift cards at about 70% of their face value, and then sells them online for a profit. Pretty cool idea! Last year, Kwame made about $55k.
Daymond and Barbara were not interested, and out first. Kevin H. didnâ€™t want take the risk and was out next. Kevin O. offered Kwame $150k for 50% of the business. Kwame countered with a 40% stake in the company, but Kevin O. stood fast in his offer. Robert liked Kwame and proposed partnering with Kevin O. for 50% of the business and $200k. Kwame agreed it was a good deal and accepted their offer. Nice!
Next to present to the Sharks was Gina Catroneo, the founder of Souls Calling Inc. She wanted $150k for a 25% stake of the company. She survived a violent attack which prompted her to start her business. She wanted to affect people with positive products. She a pretty, uplifting umbrella with positive sayings, bracelets, and sandals that leave positive messages in the sand. Unfortunately, her numbers were so small, the Sharks saw her business as a losing venture.
Dan Claffey was up next with Coffee Brand Gifts, asking for $300k for 40% equity in his company. His business provides gifts that accompany coffee products, such as teddy bears that say â€œcoffeeâ€ or â€œjava,â€ games, etc. Unfortunately, Dan had no orders so all of the Sharks bowed out of the deal.
Next up was Paul Watts, who founded Graffiti Removal Service, and wanted $350k for a 15% stake in his company. The business removes graffiti from walls, signs, buildings, etc. His removal product is non-toxic and non-damaging, but, unfortunately for him, he didnâ€™t invent the product. He invented the system, but the Sharks didnâ€™t care. Barbara couldnâ€™t understand how it would work, so she was out. Kevin H. and Daymond bowed out next, but Robert and Kevin O. partnered again and said they would give Paul $350k for 75% of his business. In effect, theyâ€™d be Paulâ€™s boss! Of course, Paul said no, to which Kevin O. appeared surprised! What? Kevin O. went on one of his usual rants telling Paul, â€œYouâ€™re dead to me!â€ What a jerk.
Amy Feldman and Allison Costa tag-teamed the Sharks, asking for $350k for a 15% stake in their company Coverplay. They created a sanitary cover that is used to cover a childâ€™s play pen to protect them from bacteria and illness.
Kevin H. said he couldnâ€™t afford television time for a product targeted at children ages 0 to 2, so he was out. Barbara offered $350k for 40% of the company, which she emphasized was non-negotiable. She also stipulated that the money could only be used for the development of the product and not for salaries, vacations, or promotions. Then Daymond said he would give them the money, and would fund future orders for the life of the company, but wanted 65% equity in the company. They walked into the hall to privately discuss the offers, and when they came back, they had concerns about giving up control of the company.
Robert offered pair up with Daymond and upped the dollar amount to $400k. Amy and Allison were still disturbed by giving up such a huge interest in their company, and Robert increased the offer to $500k. The women asked if Barbara would come down for part of the patent on the product, to which the Sharks became outraged, stating they thought the patent was part of the deal all along. Daymond, Barbara, and Robert all retracted their offers. The women agreed to put the patent into the deal, which prompted Kevin O., Daymond, and Robert to collaborate and offer $350k for 51%. Barbara jumped back into the negotiations with her original conditions. Finally, Amy and Allison decided to go with Barbara for $350k at 40% interest in the company.
Donâ€™t miss next weekâ€™s episode when Kevin O. tells an entrepreneur, â€œThereâ€™s never a better time to up sell, then when a family is stricken with grief,â€ Robert asks another small business owner, â€œYou wait for people to die?â€ and Barbara orders one entrepreneur to lose 30 lbs. or she wonâ€™t investâ€¦
Photo Courtesy: ABC Network