- A modern-day slip business; a scrubbing tool; dog-friendly frozen yogurt.
- In this episode of Shark Tank, several entrepreneurs presented their innovative products to the Sharks - Mark, Daymond, Kevin, Lori, and Robert - seeking investment to grow their businesses.
First up was Aaron Krause with his product "Scrub Daddy," an innovative dish scrubbing tool. He asked for $100,000 in exchange for 10% equity in his company. "Scrub Daddy" had already gained traction with sales of $100,000 in just four months, thanks to its presence in five supermarkets and a website. Costs $1, wholesales for $2.8. The product had been featured on QVC three times and was patented. Aaron sought the investment to establish his manufacturing facility. Robert and Mark opted out, with Robert not seeing the retail vision and Mark not interested in the cleaning business. Kevin made an offer of $100,000 for 50%, which Aaron rejected. Lori offered the same amount but for 30%. Kevin tried a different approach by offering $100,000 for 0% equity, but with 25 cents per unit until he recouped $100,000, and then 7.5 cents perpetuity. Daymond offered $175,000 for 25%, while Lori proposed $200,000 for 25%. In the end, Aaron countered Lori's offer to 20%, and she accepted.
Next was Matt and Meg Meyer with "The Bear & The Rat," a dog-friendly frozen yogurt product. They were seeking $125,000 for a 20% stake in their business. Despite having regional distribution and generating $30,000 in sales in the previous year, the Sharks were unimpressed with the company's valuation. Daymond, Kevin, Robert, and Mark all declined to invest, with the latter being the last to opt out.
Then came David Martschinske and Daniel Wood with their electric self-balancing unicycle, "SBU." They asked for $300,000 in exchange for a 10% stake in their business. The product offered a top speed of 15 mph and a 10-mile range on a single charge, and it took users about 20 minutes to learn how to use it. Retails were priced at $1,800, with production costs at $350. The first 100 units were already sold, and projected sales were 1,000 units with $1 million in profits. Despite their success, Lori and Daymond decided not to invest, with Lori lacking passion for the product and Daymond citing the lack of profitability for similar products like Segway. Mark was concerned about potential quality issues and chose not to invest as well. However, Robert and Kevin saw potential and offered $300,000 for a 33% stake, which David and Daniel accepted.
Lastly, Shelton Wilder presented "Shemie," modernized slips, and sought $60,000 for a 20% stake in her company. As a personal stylist, she had a verbal agreement to carry her product in Nordstrom and had received soft orders, but there were no actual sales yet. Kevin was skeptical of the valuation and declined to invest. Shelton had prior experience running a company with her best friend, where they generated $150,000 in sales in 18 months before shutting it down due to her friend's father's death. The Sharks were doubtful of this story. Shelton revealed that she had struggled with alcoholism and had been sober for eight months, which led to her restarting her business. She had experienced personal bankruptcy as well. Despite Shelton's efforts, Lori, Robert, Mark, and Daymond all decided not to invest, citing various reasons, including concerns about competition and the early stage of the business.
As an update, Mark and Hanna Lim's product, "Lollacup," an innovative Sippy cup, had seen significant growth since the episode they appeared in (Episode 312). Sales had increased from $40,000 before Shark Tank to $300,000 post Shark Tank. They were now operating in a dedicated facility, capable of producing 3,000 to 5,000 cups per day.
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