Shark Tank : Week 15 Review
In the week 15 episode of ABC’s Shark Tank, 4 businesses were pitched to the sharks, this time the sharks were Mark Cuban, Daymond John, Lori Greiner, Kevin O’ Leary and Robert Herjavec.
the businesses pitched were:
Shefit:
The couple Bob and Sara Moylan pitched: Shefit. Shefit is a sports bra with a zipper from the front allowing fast and easy wearing, it also allow multiple adjustments from the top and the sides -with 2 patents on these-.
The couple see this as creating a new category of women-wear …
Why they need the money question: To fund the inventory and enhancing their website.
Strong points:
– Multiple adjustments -protected by patents- allow retailers to decrease the number of SKUs they need to keep, with only 7 sizes they can cover all the needs of the clients.
– Another strong point i see, is the energy Sara Moylan has, she is definitely the best sales person her company could have.
Weak points:
– This only one product, there’s no possibility to up-sell.
– They both have jobs. But Sara is going full time is leaving her job to work full time in 90 days.
Sharks Responses:
Robert Herjavec : For him, he don’t see this as creating a new category of women-wear so he pulls out.
Lori Greiner : For her, the crossing part of the bras concerns her as she think, some problems might arise in the future.
Daymond John : Jumped on this opportunity but demanded an immediate response, he offered 1/3 rd or 33.33% for the $250,000, the couple accepted.
Shark Tank Effect:
The Shefit bra, would with no doubt benefit from the Shark Tank effect, as many women would find it the ideal solution for their sports activity, add to that the online availability, the price of just under 60$ would make it accessible to many.
– Another strong point i see, is the energy Sara Moylan has, she is definitely the best sales person her company could have.
Weak points:
– This only one product, there’s no possibility to up-sell.
– They both have jobs. But Sara is going full time is leaving her job to work full time in 90 days.
Sharks Responses:
Robert Herjavec : For him, he don’t see this as creating a new category of women-wear so he pulls out.
Lori Greiner : For her, the crossing part of the bras concerns her as she think, some problems might arise in the future.
Daymond John : Jumped on this opportunity but demanded an immediate response, he offered 1/3 rd or 33.33% for the $250,000, the couple accepted.
Shark Tank Effect:
The Shefit bra, would with no doubt benefit from the Shark Tank effect, as many women would find it the ideal solution for their sports activity, add to that the online availability, the price of just under 60$ would make it accessible to many.
CO.Alition:
Casey Lorenzen and Jeff Popp pitched CO.Alition. CO.Alition is a line of backpacks with a recharging system for mobile devices, as well as a small data storage wireless cloud that allow you to store your phone images and videos directly in the backpack and thus freeing the phone and giving you the possibility to do more photos and videos.
They asked for $200k for 20% equity.
The bags cost between $180-$600 and their total revenue is $100,000, but they have an existing company MHM and they have been in the backpack industry since 6 years, and that have made $1.2 million in sales.
They asked for $200k for 20% equity.
The bags cost between $180-$600 and their total revenue is $100,000, but they have an existing company MHM and they have been in the backpack industry since 6 years, and that have made $1.2 million in sales.
Why they need the money question: They are looking for a strategic partner.
Strong points:
– Experience: these guys have been running a profitable backpack company for 6 years.
– Elegant products.
Weak points:
– No patents: can be copied , anyone can ask a private label-er to produce the same product and sell it.
– The bags are a little expensive.
Sharks Responses:
Mark Cuban & Robert Herjavec : Both pull out on the basis that they do not understand why the guys want to offer this product outside the scope of their company.
Kevin O’ Leary: Pushes them to put a better offer on the table, hinting to combine both companies in one offer, they accept and offer a 30% equity for $300k, then in a later stage he pulls out.
Lori Greiner : Finds the bags too expensive.
Daymond John : He says that the brand is not there yet for him to invest.
They Got no deal from the Sharks
Shark Tank Effect:
The bag, would with no doubt benefit from the Shark Tank effect, as this is a niche commodity that is interesting to some people, not the average Joe, but a lot of tech people would buy it without a doubt.
There’s a negative Shark tank effect here, the clones could soon popup, any company or individual who makes money on cloning products would find this as an interesting opportunity.
– Elegant products.
Weak points:
– No patents: can be copied , anyone can ask a private label-er to produce the same product and sell it.
– The bags are a little expensive.
Sharks Responses:
Mark Cuban & Robert Herjavec : Both pull out on the basis that they do not understand why the guys want to offer this product outside the scope of their company.
Kevin O’ Leary: Pushes them to put a better offer on the table, hinting to combine both companies in one offer, they accept and offer a 30% equity for $300k, then in a later stage he pulls out.
Lori Greiner : Finds the bags too expensive.
Daymond John : He says that the brand is not there yet for him to invest.
They Got no deal from the Sharks
Shark Tank Effect:
The bag, would with no doubt benefit from the Shark Tank effect, as this is a niche commodity that is interesting to some people, not the average Joe, but a lot of tech people would buy it without a doubt.
There’s a negative Shark tank effect here, the clones could soon popup, any company or individual who makes money on cloning products would find this as an interesting opportunity.
Icy Breeze:
David Yonce the co-founder of SolarWind, accompanied by Jason Shakleford and Andrew Jenkins pitched IcyBreeze. IcyBreeze is an innovative solution to tackle hot weather when camping, it’s basically a cooler that spits out cold air through a tube, this is done by cooling the air thanks to the ice present in the cooler and then using a fan, blowing the air through a tube. The cooler retails for is $349 -with a $199 production cost- only sold 1700 units have been sold so far, and they are in Sam’s Clubs stores. Dave Yonce have already invested $5 million from his own money, revenue wise the company have generated $125k last year, but are projecting 2.5 million for this year.
They asked for $50k for 5%.
They asked for $50k for 5%.
Why they need the money question: They are looking for a strategic partner. And David adds “it’s clear that in America there’s few people that have the best connections, that’s what we’re after”
Strong points:
– Experience: David Yonce is a serial Entrepreneur with several cash flow positive businesses.
– Growth: There’s a visible growth here, increasing from $125k last year, to projected 2.5 million is huge.
Weak points:
– No patents: It’s not clear if the product is patented, if not, cheaper knockoffs would pop-out easily.
– The cooler is very expensive: $349 is a huge premium on the standard less than $100 price tag.
Sharks Responses:
Mark Cuban: Pulled out, because he thinks that this is a passion project, Dave won’t have a lot of drive, as he is already an accomplished entrepreneur and he definitely does not need the money.
Daymond John : Was out, as he do not want to invest his time in this. A big factor would be that, Dave might know exactly what he needs and that would require a Shark to invest way more time than what allocate usually for a Shark Tank investment.
Robert Herjavec, Kevin O’ Leary and Lori Greiner : Thought the price was too high.They Got no deal from the Sharks
Shark Tank Effect:
The Cooler , would with no doubt benefit from the Shark Tank effect, even though it is expensive, as this is a niche product -a new segment actually- this cooler might be a must have for many outdoorsy people, the cooler being mainly sold online also contribute to success of this effect.
There’s a negative Shark tank effect here, the clones could soon popup,unless there’s patents.
– Growth: There’s a visible growth here, increasing from $125k last year, to projected 2.5 million is huge.
Weak points:
– No patents: It’s not clear if the product is patented, if not, cheaper knockoffs would pop-out easily.
– The cooler is very expensive: $349 is a huge premium on the standard less than $100 price tag.
Sharks Responses:
Mark Cuban: Pulled out, because he thinks that this is a passion project, Dave won’t have a lot of drive, as he is already an accomplished entrepreneur and he definitely does not need the money.
Daymond John : Was out, as he do not want to invest his time in this. A big factor would be that, Dave might know exactly what he needs and that would require a Shark to invest way more time than what allocate usually for a Shark Tank investment.
Robert Herjavec, Kevin O’ Leary and Lori Greiner : Thought the price was too high.They Got no deal from the Sharks
Shark Tank Effect:
The Cooler , would with no doubt benefit from the Shark Tank effect, even though it is expensive, as this is a niche product -a new segment actually- this cooler might be a must have for many outdoorsy people, the cooler being mainly sold online also contribute to success of this effect.
There’s a negative Shark tank effect here, the clones could soon popup,unless there’s patents.
2400 Expert:
This last one i am not a huge fan of, Shaan Patel pitched 2400 Expert. 2400 Expert is an SAT prep course designed to increase the SAT score, Patel got a perfect score after a lot of preparation and training and he’s teaching “tricks and strategies” that can help other students improve their score.
What bothers me a bit about 2400 Expert, is that their reviews are fake, out of the 23 great reviews they have on their website 19 were done in a period of few days in the month of August 2015, and that is a huge give away that reviews are fake, furthermore, of the older reviews without a star review system, the absolute majority are displaying the exact same text “2400 Expert Rocks“, which is a clear sign of review manipulation.
Based on the above information, “teaching tricks” and “fake reviews”, i can not judge whether the pitch presented by Patel is truthful or just another manipulation to take advantage of the Shark Tank to promote his business.
He asked for $250,000 for 10% equity.
Why they need the money question: The money will be used to open 12 new locations in big cities.
Strong points:
– Done it: Shaan Patel the face of the company scored a perfect score in his SAT.
Weak points:
– Nothing special: There’s nothing specific to this company that competitors don’t have.
– No time: Patel is doing double major in 2 universities, and he wants to be a doctor.
Sharks Responses:
Daymond John : Said he is in the online education space but he doesn’t see the scalability, thus he pulled out.
Weak points:
– Nothing special: There’s nothing specific to this company that competitors don’t have.
– No time: Patel is doing double major in 2 universities, and he wants to be a doctor.
Sharks Responses:
Daymond John : Said he is in the online education space but he doesn’t see the scalability, thus he pulled out.
Lori Greiner : Asked Shaan: what do you want to be, a doctor or an entrepreneur? she later pulled out.
Robert Herjavec: Said that Patel is playing at the business, and that he can’t play a business, he also pulled out.
Kevin O’ Leary : Said that Patel’s biggest problem is that he is not 100% committed.
Robert Herjavec: Said that Patel is playing at the business, and that he can’t play a business, he also pulled out.
Kevin O’ Leary : Said that Patel’s biggest problem is that he is not 100% committed.
Mark Cuban: Sees this as an acquihire opportunity, as he thinks that Patel might come up with other great ideas, he offered Patel $250k for 20%, Patel tries to counteroffer, but end up accepting the deal.
Photo source: https://www.flickr.com/photos/disneyabc/14175093191
