- Two entrepreneurs from Chicago, Illinois, bring a live guard llama into the Tank; two entrepreneurs from Irvine, California, deliver a safer take on the bicycle by innovating the brake system; a trio from Seattle, Washington, have an app that helps shoppers and diners earn free parking in exchange for their business; and business partners from Santa Clarita, California, hope to convince the Sharks to take a shot with their free photo-printing service.
- Sharks attending are Mark, Barbara, Kevin, Lori, and Chris Sacca
"Guard Llama" is a portable remote device created by Joseph Parisi and Nick Nevarez. They are seeking a deal of $100,000 for 5% equity. The device activates a personal emergency service when the remote is double-clicked, sending the user's profile and GPS location to an emergency dispatch system. This system then initiates a phone call to the customer for a disarm pin. If the pin is entered incorrectly or not entered at all, the dispatch system forwards the profile and GPS information to the police. The device requires Bluetooth connectivity with a phone and has a range of 150 feet. With 2,000 users, it is sold for $10 per month or $100 per year, both online and in person. The target market for the product is Realtor who frequently interact with strangers. Mark and Lori are not interested due to potential liability concerns, while Chris believes the product lacks proprietary features and ability to scale. Kevin offers $100,000 for $5 per unit until $120,000 is paid back, along with 5% equity. Eventually, the entrepreneurs strike a deal with Barbara, who provides $100,000 as a loan for 20% equity and a $2 per unit royalty until $100,000 is paid back. After negotiation, they settle at 18% equity with Barbara.
"Flag" is a free photo printing service founded by Savannah Cowley and Samuel Agboola. They are seeking an investment of $375,000 for 5% equity. The unique aspect of their service is that it prints ads on the back of the photos. The entrepreneurs can create custom shapes for prints. Within three months, they generated $150,000 in ad sales and have raised $1.6 million in previous funding rounds, with a valuation of $5 million. They send out 80,000 to 100,000 prints each month, outsourcing the production. The ads are sold for $1 per print, with a production cost of 20 cents. However, the Sharks have various concerns. Kevin believes that larger companies like Shutterfly could easily offer a similar service to their existing customer base. Lori is not interested due to the concept of free printing. Mark sees it as primarily an ad business that hasn't been proven yet. Chris considers it to be outdated technology in a saturated market. Ultimately, all Sharks decline to invest in Flag.
"Validated" is an app developed by Ian Lyman, Tov Arneson, and Alex Wilhelm. They are seeking $250,000 for 8% equity. The app allows users to earn credit toward covering transportation costs when shopping at physical stores. Merchants set their own offers and provide credits for every purchase, allowing customers to accumulate credits within the app and use them to purchase various services. The app currently has 50 merchants and receives 25 validations per day. However, the Sharks have reservations about the complexity of the business model and the number of integration points with merchants and vendors. Chris finds it too convoluted, while Mark points out that the entrepreneurs effectively act as the "bank" for the points. Barbara sees no need for the app, and Kevin simply dislikes the idea. Lori is unsure about the market. As a result, no Shark invests in Validated.
"Guardian Bikes" is a company founded by Brian Riley and Kyle Jansen. They are seeking an investment of $500,000 for 10% equity. The company specializes in children's bicycles with an improved braking system called SureStop. They have patented this braking technology and designed their own bikes. Currently, they have licensed the technology on 40,000 bikes in the US. The license deals have brought in $200,000 in sales at $5 per bike. They have also sold $95,000 worth of their own bikes and project reaching $350,000 in sales within the first year. The entrepreneurs face resistance from manufacturers who believe that featuring the SureStop system on some bikes would make others appear unsafe. Mark and Kevin advise that manufacturing bikes is capital-intensive, while Barbara identifies a need for a skilled salesperson on the team. Eventually, Kevin offers $500,000 for 20% equity but forbids the entrepreneurs from producing any bikes. The founders, however, intend to use their bikes as a "trojan horse" to secure more license deals. Kevin is offended by being ignored and withdraws his offer. Chris finds the venture too capital-intensive, Lori notes the lack of interest from bike manufacturers, and Mark offers $500,000 for 15% equity with three contingencies: proving the patent, meeting sales targets within 6 to 12 months, and hiring a PR person. The entrepreneurs accept Mark's offer.
In an update on Bubba's Boneless Ribs from Episode 511, Al and Brittany Baker experienced tremendous growth after securing a deal with Daymond. Their sales increased from $154,000 before appearing on the show to $16 million in the three years following the episode. They even received a large order of 1 million pounds of boneless ribs from a US-based quick-service restaurant chain, which plans to introduce an "Al Bubba" burger on its menu.
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