“Shark Tank” returned last night on ABC to hear pitches from four new teams of inventors looking to hit it big with their new products and ideas. Of course with every new product comes a big risk and sometimes it comes down to whether that risk is worth a larger reward. Here’s how the night went down!
This week’s sharks: Barbara Corcoran, Daymond John, Kevin O’Leary, Mark Cuban and Robert Herjavec
Inventor: Peter Ferreira, Dennis Iannotti & Neil Cameron
Product: Nuts ‘N More
Offer: $250,000 for 20 percent stake
The first investors in this week were the trio of Peter Ferreira, Dennis Iannotti and Neil Cameron with their product “Nuts ‘N More.” Essentially this was fortified peanut butter in four flavors that was very popular with the body builder sector. While a few of the sharks got a laugh out of it, they stopped chuckling when the guys told them they had made $100,000 in sales during their first 5 months. The problem was (as usual) a very high evaluation. The three wanted $250,000 for a 20 percent equity stake, which made their business valued at $1.25 million. After the number chased away Barbara, Daymond and Kevin, it was down to Mark and Robert who both decided to team up.
The two sharks liked the product and offered to give the guys the $250,000 with the condition of fronting them between $50,000 and $75,000 now to fill a major purchase order and then the remaining $175,000 would come where and when they needed it for future orders. While Cuban asked for 35 percent equity, Herjavec was planning on going higher and asking for 50%, knowing the trio would probably balk and counter, but do so at a higher percentage. The move worked as the inventors eventually agreed a at 15 percent higher stake then they originally wanted, but was able to get two sharks and their value included in the deal.
Customer vs. Investor
End Result: Deal with Mark Cuban and Robert Herjavec for $250,000 with a 35 percent equity on the contingent they get $75,000 to start and the remaining $175,000 to fill future orders when they come in.
Inventors: Romy Taormina
Product: Psi Bands
Offer: $250,000 for 10 percent stake
Next into the tank was Romy Taormina who was selling a way to “quell the queasy” with Psi Bands. Taormina was asking for $250,000 for a 10 percent stake, but all she ended up doing was making the sharks sick with her presentation. The product was a wrist band designed to mimic acupuncture and help relieve nausea for people who had morning sickness, motion sickness or battling the side effect of chemotherapy.
While it was a FDA cleared medical device with clinical studies backing its power, that wasn’t enough to convince the sharks it actually worked. Still though that wasn’t the biggest problem with her presentation as the company’s NRC (Nausea Relief Chief) told the sharks the company was profitable and had sold $1 million worth of units in the last 12 months. Yet what she didn’t mention was the $600,000 in debt that the company had, which the majority of which was coming from deferred salaries to HERSELF. With that information now in the fold, all of the sharks began dropping, except for Kevin who offered her the $250,000 but for a 40 percent stake which Taormina wouldn’t entertain.
End Result: No deal
Inventors: Nick Gonzales & Kevin Mack
Product: Neo Innovations
Offer: $80,000 for 20 percent stake
Nick Gonazles and Kevin Mack were the next inventors to talk with the sharks and while their product was intriguing they ran into a bigger overall problem. Gonzales and Mack created Neo Innovations which sold a black magic IPL tattoo removal system. IPL (intense pulse light) has been around for a while, but this integration of it is different as its purpose is strictly to remove tattoos, but the problem still remains in the fact you are basically zapping your skin with electricity.
While the pair claimed it was safe and you would only feel mild discomfort, the sharks were freaked out by the prospect of somebody screwing up the instructions and suing them over it. Gonzales and Mack have FDA backing, but needed between $20,000 and $100,000 to make it official which is what they would do with the money. However when it’s just the two of them involved it’s one thing, but if you throw in an investor with a lot of money at their disposal everyone becomes a target for scam artists and so all five sharks pulled out.
End Result: No Deal
Inventors: Jessica Haynes
Product: Jeska Shoe Company
Offer: $70,000 for 30 percent stake
Last into the tank was Jessica Haynes with an idea for a shoe that could be changed “as often as women change their minds.” Haynes created a shoe that had interchangeable heels and magnet support to add on new accessories, but it was still in the prototype phase.
However despite the lack of a firm patent, no sales and a possible looming battle with shoe companies who profit off of repeat customers, Haynes had a strong personal backstory which spoke to Daymond John. John, who is known for his apparel companies, felt a connection with Haynes and felt both came from a similar place.
Haynes used $63,000 in her college fund to start the business, after earning scholarships and not needing the money education. She then got the support of her parents who took out a second mortgage on their homes on their homes to help her keep her business running. Daymond got a similar boost from his family and felt it was right to pay his success forward; at a price. While he made Haynes a deal he even admitted it stunk on the surface, it still was the best offer she would get now or in the foreseeable future.
John offered her the money for a 70 percent stake, but told her he’d help teach her the business and take on the majority of the hardship. Haynes recognized the value and accepted the offer.
End Result: Deal with Daymond John for $70,000 with a 70 percent equity stake.
“Shark Tank” airs Friday’s at 9 p.m. EST on ABC.