Shark Tank Recap Episode 520
|Shark Tank Special from Gameface Tattoo Company|
As much as you learn about the business beforehand, it's impossible to know the valuation they will walk into the Shark Tank with, which could be a deal breaker before they even begin. It really is amazing how many contestants still do not factor in what it would mean to make a deal with the Sharks, along with an overall (guaranteed) higher valuation just because you can now say "My Company successfully completed a deal on the Shark Tank Show". For those that don't complete a deal, they still get an estimated $4- 5 million dollar's worth of free publicity for many years to come. I love it! A real life business reality show where everyone wins no matter what happens.
Moberi Smoothies - The first contestant in this new episode 517 was Ryan Carpenter, from Portland, Oregon. Ryan came into the Shark Tank seeking a $50k investment for 15% stake in this do it yourself bicycle powered smoothies business. With over $70,000 is sales last year, Moberi looks to be operating in the black, but the Sharks have a problem figuring out how to scale this business model to the numbers they are used to. The bike powered blender that makes the Moberi Smoothies cost $2000 each (now only $1700.00 for those interested in their own) which has the Sharks squirming until they all finally go out. No Deal.
Spy Escape and Evasion was up next when the former CIA Agent, Jason Hanson, came into the Shark Tank looking for a $100,000.00 investment in exchange for 15% of this unique business opportunity. If you read the pre-Shark Tank article for Spy Escape and Evasion, there was a little confusion exactly what Jason Hanson would be promoting on the show. Bottom line, Jason wants to start a Spy Escape and Evasion 2 day training course in Cedar City, Utah at a cost of $600 per student. Yes I caught myself yelling at the TV again, repeatedly saying Hanson needs to take this idea on the road and not limit this opportunity to those willing to travel to Utah. Finally Mark Cuban, almost says the same thing while I'm still taking to the TV, (I swear that guy reads my mind sometimes) when he mentions a one day Spy Escape and Evasion course that travels around the country. Even more surprising, Daymond John makes a $150,000.00 offer (50% more than Hanson was asking) for a 45% stake which Jason immediately accepts.
Game Face Tattoo Update - Doug Marshal first appeared on the Shark tank last year in season 4 when he made a deal with Mark Cuban and Lori Greiner for his temporary game face tattoo business. Prior to appearing on the Shark Tank, Marshal had combined sales of only $6700.00. Within 10 months after his appearance, sales have swollen to over $200,000.00, with next year's projections of $2 - $20 million.
DDP Yoga Diamond Dallas Page, and business partner Steve Yu, came into the Tank asking for $200,000.00 for a 5% equity stake in this new Yoga system. Has anyone ever made a deal with the Sharks for only a 5% stake? These Sharks are money hungry and usually prefer to take big bites, if at all. Diamond Dallas Page came in with a valuation of $4 million for his "It Ain't Your Mama's Yoga" which might seem a little high, but he backs it up with $2.6 million in sales in the very first year. Surprisingly, none of the Sharks seems interested even with these impressive numbers, (high valuation + small equity stake?) and proceed to go out.
Southern Culture Artisan Foods owner Erica Barrett, is the last to enter the Shark Tank seeking $100,000.00 for a 25% equity stake in her company. I'm a little confused what the name Southern Culture Foods has to do with pancakes, but apparently there is a connection. Either way, these Short Stacks Pancake and Waffle Mixes was at the top of my list to make a deal in episode 517. Having reported sales over $100k in the first year in business has Barrett's valuation in line to get a few Sharks to take a bite. Good Ole Kevin O'Leary makes one of his infamous proposals suggesting a royalty deal much like the Wicked Good Cupcakes accepted. Barbara Corcoran really seems to like the Short Stacks, but wants a much larger piece of the Southern Culture Artisan Foods Business. Barbara offers Erica $100,000.00 for a 40% stake in the company. The negotiating went round and round as Barrett stood firm not accepting an offer for 40% of her business. They did however reach an agreement for 38% for the $100,000.00, and Barbara's now in the pancake and waffle business.