October 06, 2009 09:58 PM by Cindy Adams
On tonightâ€™s episode of Shark Tank, two men share and sell notes, a woman creates functional playthings, a man thinks he has the solution to the inevitable missing sock, and a clothing designer wants the Sharks to invest in his washed up creations. Also, two women who received help from a Shark several weeks ago reveal how their company has blossomed due to their appearance in the Shark Tank.
First to enter the Shark Tank were D.J. Stephan and Sean Conway with their company Notehall. They wanted $90k for 10% equity in their business. Their website allows students to buy and sell notes and study guides for college courses they’re taking. The company keeps 60%, while the student, whose notes are purchased, obtains 40%.
Kevin H. was out first, and Daymond followed. The Sharks wanted to know what type of revenue they thought they would be bringing in and Sean said theyâ€™d bet half the company that theyâ€™d make the Sharks $24 million revenue in 4 years. Wow! Confident much? Kevin O. offered them the $90k for 51% of the company. Barbara made the same offer for 50% of their business. D.J. and Sean made a counter offer saying theyâ€™d give one lucky Shark 15% equity in their company with a guaranteeâ€”if they donâ€™t hit $1 million in revenue over the next year, theyâ€™d give the investing Shark their portion of the company. No one bit at that, but Kevin O. came back with 35% equity for $90k, while Barbara dropped down to 25% equity. Robert jumped in and offered $115k for 35% of the company prompting Kevin O. to match his offer. Barbara then said with her offer, in 6 months, D.J. and Sean could buy her out by giving her back the money she invested, plus 20% interest.
Robert asked Kevin O. to join forces with him and do the deal at 25% with an investment of $90k. In the end, they chose to go with Barbara. Kevin O. shouted â€œYouâ€™re dead to meâ€ as D.J. and Sean walked out smiling.
Then Kevin O. chased them down the hall and congratulated them, although he made sure to tell them they made a big mistake going with Barbara. Nonetheless, they were happy with their decision. Good choice guys!
Next, Amy and Allison were updated, with their company Coverplay. They made a deal with Barbara several weeks ago and said their business is booming and soon their product, a playpen cover, will be sold at â€˜Babies â€˜Râ€™ Us.â€™ Wow, sounds like a success!
Next up was Lisa Lloyd with Treasure Chest Pets, and she wanted $150k for 20% equity in her company. She creates storage units for kids that look like stuffed animals. Sheâ€™s sold about $100k in the past year and the product is in several mall stores. Kevin O. said the business was not for him and was out first.
Barbara said she would be comfortable investing, but only $50k for 50% of the company. Daymond said he could help with all the manufacturing and distribution she needs, but needs 60% of the company for $150k. He also invited Barbara into the deal, who accepted his invitation. Robert jumped in and offered all the money for no equity and said he would work out a loan rate for Lisa. She thought she needed more than money and Daymondâ€™s expertise would be priceless, so she took Daymond and Barbaraâ€™s offer, which was a great decision.
Edwin Heaven (yes, that was his name) walked into the tank next with Throxâ€”or what he called the “cure for the missing sock.” He wanted $50k in exchange for 25% equity. His idea is to sell socks in threes so when one mysteriously disappears, another sock is available. All of the Sharks thought Edwin and the idea was a little strangeâ€”and they were rightâ€”so they all bowed out.
Next up was Danon Beres with his clothing line, Washed Up Hollywood. He asked for a whopping $500k for 25% of his company. His clothing line is sold in some stores, but the Sharks thought he overvalued his company immensely at about $2 million. Kevin O. called him a greedy pig. Nice!
Robert said he could give him less money, but not $500k. Daymond didnâ€™t believe he had sold as many units of his product as he claimed, in essence calling Danon a liar. Robert, Kevin H., and Barbara were out first. Kevin O. followed their lead.
Daymond said the Sharks were angry because he destroyed his opportunity asking for such a large amount of moneyâ€”and with that, he dropped out too. Cool clothes, but if he’d asked for a lesser amount, he would’ve gotten a sweet investment. Oh well.
Donâ€™t miss next weekâ€™s episode of Shark Tank when Kevin O. asks a big beautiful woman, â€œIs it possible that larger sized women donâ€™t care about fashion as much?â€ and the Sharks think Barbara is out of her mind for wanting to make a certain investmentâ€¦
Photo Courtesy: ABC Network