The Shark Tank Best Presentation Top 10 list includes those companies (and entrepreneurs) who not only gave great presentations while appearing on Shark Tank , but have great products that have gained traction in their marketplaces, have solid business models, and have the ability to scale their businesses quickly.
Number 10
Joe from Flexscreen had invented flexible window screens. Not only did this provide homeowners with a better view (much thinner frame), but they were easier to maintain, install, and remove.
Joe had great Revenue numbers……$400K in year one, $2 million in year two, $3.5 million in year three, and $5.1 million in year four. However, his gross margins were too thin for the Sharks……only 15 %.
Joe’s market was home builders and window manufacturers. They required every window to be custom-made and weren’t willing to pay a premium price for a premium product. Joe thought he should continue to grow his volume but not increase his margins or pricing. Sales growth for the sake of growth (without increasing profitability) is not attractive to investors unless there is a clear “path to (increased) profitability”.
Despite these facts, Joe got three offers. Shark Barbara had a great idea that was part of her offer. Let Joe continue his commercial business while starting a separate company that would concentrate on business-to-consumer sales. This would allow them to make more standard size screens and fewer custom screens. This would substantially increase margins and lead to greater profitability Barbara would take 50% equity in the retail/online business in return for an $800K investment ($400K for equity and a Line of Credit of $400K).
However, Lori made an offer for 10% equity of the entire business (both commercial and consumer sales). When Lori learned that Joe was more interested in Barbara’s offer, she quickly matched Barbara’s offer and got the deal. I have a good feeling about this deal.
Number 9
Alex from Genius Juice began his presentation with a very entertaining song and dance (see below). His competitive advantage in the healthy beverage category is there is a full coconut in every bottle. His product can best be described as a coconut smoothie. The Sharks loved the taste of Genius Juice.
Alex sells his product for $5-$6 per bottle. His cost is $1.87 per bottle. He’s in 1100 stores and has estimated sales of $1 million this year. Interestingly, he was one of the few entrepreneurs that knew his Break-Even point (sales of $2.5 million per year when his company becomes profitable). This is a number that helps determine how much funding is required prior to reaching the B/E point.
Industry guru and Guest Shark Rohan Oza thought it would take longer to get to that point than Alex did. He also was concerned about the refrigeration requirements and the associated expenses. “That scares me”, he said.
In the end, Mark Cuban and Shark Barbara went in on the deal together. Each put in $250K for $500K total for 25% equity. This should be a great partnership.
Number 8
Natalie and Max from Bala Bangles have created an updated version of the old ankle weights (circa 1965) and wrist weights that look like bangles. The advantage of the wrist weights is that you don’t have to carry any weights or dumbbells while exercising or walking.
With estimated sales of $2.2 million in the second year of operation, they drew several offers from the Sharks. They came into the tank looking for $400K for 10% equity and left with $900K for 30% equity! Mark Cuban and Maria Sharapova shared this deal 50-50.
Natalie and Max came into the tank valuing their company at $4 million and left with a company valuation of about $3 million which equates to 1.4X current year sales….a very reasonable multiple.
Number 7
Jason from Bad Birdie is a hustler, and I mean that in a good way. He has created a line of golf shirts that are designed to appeal to the “under 30” demographic. He sells them for $72 each. His sales are estimated to be $1.2 million this year, mostly all online.
Mr. Wonderful offered Jason $300K for 30% equity with the condition that he didn’t go into retail and remained online. Shark Robert offered $300K for 25% without that restriction. Jason countered with 20% but Robert refused to budge.
Then Jason pulled one of the most unique negotiating tactics ever seen on Shark Tank. He told Robert the deal was his if he was willing to try to make a 10 foot putt. If he made it, his equity would be 25%. If he missed it, his equity would be 20%.
Robert took the challenge, but missed the putt by less than an inch. Jason’s company valuation immediately went from $1.2 million to $1.5 million. Robert’s missed putt added $300K to the value of the company. Very clever, Jason!
Number 6
Nathan and Sophia from Pair Eyewear met at Stanford. They started Pair to make eye glasses for kids. Using their magnetic technology, kids can easily change the color and style of their glasses. Think of the old clip-ons minus the clip.
The base price for glasses is $95 and each add-on is $24. So far they’ve sold $100K in less than a year.
Mr. Wonderful was concerned about potential competition from an Italian company that has 80% market share of the eyewear market. Shark Lori and Guest Shark Katrina Lake (CEO of Stitch Fix) saw potential in Pair and made an offer of $400K for 10% equity. They also wanted a $2.00 royalty until they got their $400K back. Nathan and Sophia negotiated on the royalty and got it down to $1.50 and the deal was done. Good job!
Number 5
Joe and Rachel from Yellow Leaf Hammocks have achieved a perfect balance between their social mission-based objectives AND running a growing and profitable business. Their social mission is to reduce poverty levels in Southeast Asia. They manufacture their hammocks in a small village in Thailand.
Their sales this year will be $1.3 million and their profit will be $360K after paying themselves. Their landed cost is $44 and they sell the hammocks for $199. They came into the Tank asking for $400K for 7% equity.
They also have introduced a cool looking indoor/outdoor frame for the hammock that they sell for $2200. They just made a deal with Virgin Voyages to have one on every one of their ships and to sell them to interested passengers.
Add to all of this the fact that Joe and Rachel are very smart and likeable, and you could sense a big deal was about to happen. Guest Shark Daniel Lubetzky offered them $1 million for 33 1/3% equity. After briefly entertaining a couple of offers from Shark Lori, they negotiated with Daniel and got him to drop his equity requirement to 25%. They accepted the offer. This will be a great partnership.
Number 4
Marc and Mikael from Knife Aid were so “investable” the Sharks actually chased them down the hallway when they went to discuss multiple offers from the Sharks. Their knife sharpening business allows customers to mail their dull knives (or scissors) to them for quick processing and turn-around. The cost is $10 per knife.
Despite being in the proof of concept stage, with sales of $120K, the Sharks aggressively pursued a deal with Marc and Mikael. They eventually accepted an offer of $500K for 20% equity from Lori and Rohan Oza (in the hallway).
As Mark Cuban put it, “I never thought I’d see the Sharks grovelling to get a deal”.
Number 3
Amber from Circadian Optics has created lights that improve health in regions that have long overcast winters. She immigrated from Malaysia to Minnesota and cried when telling her personal story.
With an average sale of $58 and 70% margins, she got the Sharks attention. When they learned she had sales of $5.6 million and was very profitable, she received multiple offers. Mark Cuban and Lori Greiner teamed up and offered $800K for 20% equity. Amber accepted. It was a nice clean deal.
Number 2
Jake and Eric from Aira.
They came into the tank asking for $500K for 7% equity in their company that has developed a wireless charging product. They did a masterful job presenting their product and company.
Jake and Eric make a great team. Jake’s presentation skills are excellent and he’s very strong in the areas of Sales and Marketing. Eric is one of the world’s leading experts in charging technologies and is a devotee of the famous inventor Nicola Tesla.
Jake laid out their go-to market plan and told the Sharks about their first order of 33,000 units. They are using a licensing model and will be receiving between $4 and $10 per unit from their customers who can resell or repackage the chargers as they see fit.
Jake and Eric got a deal from three Sharks who will put up $500K for 15% equity. That’s a much lower company valuation than Jake and Eric wanted, but they got three Sharks (Lori, Robert, and Mr. Wonderful) that will help them scale the company.
Number 1…(the winner of The Sharky Award for Best Presentation of Season 11)
Syed and Sara from Blueland have created products that help save space in the kitchen and reduce the number of plastic containers that are used for household cleaning. The premise is that most cleaning products are made up of 90% water. Their products allow customers to use tap water and a pill that is supplied by Blueland to “make their own” non-toxic natural cleaning products.
Syed and Sara had previously raised $3 million at a company valuation of $13.5 million. Syed was a Chemistry major at Pitt, and Sara was a Harvard graduate in economics. They made a great team and were well on their way to owning a successful company.
The Sharks were very interested and multiple offers were made. In the end, Mr. Wonderful prevailed. He offered $270K for 3% equity plus a royalty of 50 cents per unit until he gets his money back. Actually, it was Sara that suggested reducing his equity requirement from 5% to 3% by taking a 50 cents royalty. Mr. Wonderful quipped, “There’s a woman who really understands me”.
Mr. W loves royalty deals, and he usually insists on getting royalties until he gets 2X or 3X his money back. In some cases he insists on getting royalties in perpetuity. Sara was smart to limit the royalties to 1X. Good job Sara!
Season 11
Jim from Luma Soda is a good guy who was “all in”. He had spent $1.75 million of his own money to start the business, but only had $30K left in the bank. He too had an inventory problem with $600K of his honey-based, low sugar soda on-hand. Jim was very forthright and open about the mistakes he had made with the business. Shark Barbara was impressed with Jim and said she would make an offer if Rohan Oza would go in, but he felt this opportunity was not investable. No deal here.
The Best (and Worst) of Shark Tank 