What makes a great Shark Tank presentation? I base my ratings on the following criteria. A great presentation must be entertaining and informative. Consideration is also given to the marketability of the product or service, the Business Model, track record of the entrepreneur, financial results, knowledge of “the numbers”, vision, presentation style, defensible company valuation, and potential market size. Also, ability to “think on your feet” and negotiate under pressure is considered.
Number 10
Brian and Kyle from Guardian Bikes. They have developed an improved braking system for bicycles that will dramatically reduce the number of injuries by preventing the rider from being thrown over the handlebars when braking. This Surestop Technology can be licensed to bicycle manufacturers and costs them an additional four dollars per bike……..a very small price to pay for increased safety and product differentiation.
The challenge is selling the concept to the large bike manufacturers. This has proven to be a difficult, time-consuming task for Brian and Kyle. They decided to manufacture their own line of premium bikes with the Surestop Technology built-in as a way to show the marketplace that there would be a large demand for their technology.
It became obvious during their presentation that despite their engineering brilliance, they need a partner (or an employee) that can help improve their sales and marketing efforts. Mark Cuban even told them, “Your Marketing sucks!”
Mr. Wonderful wanted the deal if Brian and Kyle agreed not to manufacture bikes and concentrate on licensing their technology. They would not agree.
Mark Cuban made an offer contingent on them getting a PR pro on-board and generating increased sales in the next 6 months. The offer of $500K for 15% equity was accepted. I think this could become a really, really big deal at some point.
Brian and Kyle-Guardian Bikes
Number 9
Rick from Under the Weather. Rick has invented a small, portable “tent” that protects spectators at outdoor events from the wind, rain, snow, and sun. He had Sharks Daymond and Lori participate in a great demo to show how it works. It was fun and showed the benefit of using his product.
Rick defined the potential marketplace with one simple statistic…..there are 70 million soccer parents in the U.S. alone! If you’ve ever been to a kids soccer game in November you can appreciate the value of this product. Naturally there are many other potential uses. I couldn’t help but picture a spectator at the (British) Open sitting in one.
Rick sold his first business in 2012 and used the proceeds to launch Under the Weather. Investors love to invest in serial entrepreneurs as it reduces their risk. Rick sells each “tent” for $99 and had sales of $2 million last year, mostly from online sales.
He ended up making a deal with Mark Cuban for $600K for 15% equity. Part of Mark’s deal was an option to buy an additional $600K of equity within the next 12 months. If the business grows like I think it will, the option will surely be exercised.
Rick from Under the Weather
Number 8
Chris and Eric from RinseKit generated lots of interest in their Pressurized Portable Shower product. It’s ideal for cleaning off things (and people) when no conventional shower is available. Sales are projected to be $2.1 million this year and $5 million next year. If it wasn’t for their debt level coming into the tank ($550K), and their mediocre presentation, I would have given them a Sharky Award, but they did get the Best Deal of the Episode when Daymond offered $250K for 7 1/2% equity plus his own sales commissions on everything he sells. Full disclosure…..Shark Lori had offered a similar hybrid deal and Daymond “stole” her deal structure and got the deal.
This deal was brilliant! Chris and Eric came into the tank asking for $250K for 5% equity and they didn’t want to take on additional debt. Now 5% equity isn’t enough to get any Shark excited, but add in a commission of 5-10%, and the $250K can get paid back quickly and still leave Daymond with a nice equity stake with increasing value. This was a true win-win.
Chris and Eric from RinseKit
Number 7
Billy and Randy from Thompson Tee. They make undershirts that block perspiration. As one of the Sharks put it, they make “armpit diapers”. The product is patented.
Approximately 35% of the adult population suffer from hyperhidrosis or excessive sweating. That’s a large addressable market and Billy and Randy are making a dent in that market…..they have shown steady growth over the last few years and currently have sales of over $2 million. Investors love to see steady predictable growth.
These two made a great team…..one has suffered from hyperhidrosis and the other had lots of experience in the clothing industry. They had asked for $700K to bring manufacturing in-house to save a couple of bucks per tee-shirt. The Sharks questioned their strategy and urged them to continue to focus on sales and marketing rather than deal with the management challenges of manufacturing and distribution. But Shark Robert remained very interested in the two of them and said he would help them grow but wouldn’t dictate strategy. Robert offered $700K for 25% and they gladly accepted his offer.
Billy and Randy from Thompson Tee
Number 6
Niki and Matt from FFTOB. They have formed a company that has very low material costs (old Turnout Coats from various Fire Departments), that has very low marketing costs (extensive use of social media), and they have excellent profit margins (over 50%). Their business leverages Niki’s love of sewing (she’s been sewing since she was 13). It enables coats that would have gone into landfills to be recycled, and they give a share of their profits to charity. WOW!
During the presentation, Niki made a couple of profound statements. When asked about a questionable decision made some time ago, she responded, “I didn’t know what I didn’t know back then”. Being an entrepreneur requires constant (daily) learning, and it’s critical to know what you don’t know, so you can get help in those areas and avoid making big mistakes.
The other statement was that “Banks only lend money to people that don’t need it”. So true! It’s important to build a track record with banks. Start by borrowing a small amount (even if you don’t need it) and pay it back early to build a relationship with a banker. They only like sure things!
Niki and Matt were faced with a tough decision. Shark Lori offered them $250K for 50% equity and Shark Robert offered to buy the whole company for $500K. At this point, selling the whole company would be like selling your first born. There’s too much emotional attachment and too much growth potential to cash out now. Lori will be a great partner.
My only criticism of FFTOB is the company name is too hard to remember…..I would have preferred something like Firefighters’ Turnout Bags. Also, the company will be a challenge to scale because of the high labor content required to make the bags.
Niki and Matt from FFTOB
Number 5
Philip and David from Fizzics walked away with a $2 million deal with Mark and Lori for 16.7% of their company. Fizzics allows consumers and bars to add flavors to beer. The Sharks all agreed their product greatly enhanced the taste of beer.
Their $12.5 valuation was reasonable at about 1.3X this year’s forecasted sales. These two Jersey boys were in the process of raising $2 million at a $10 million pre-money valuation. They had a commitment from a lead investor (this is a HUGE factor…..one of the first questions from any serious potential investor is “Do you have a lead investor. If so, who is it?”. Other investors will then come on-board knowing they aren’t the first to take a risk on you).
Shark Barbara then stunned everyone when she said to Philip and David, “I am wildly enthusiastic about your product but I’m not wildly enthusiastic about you. I feel like you’re too slick and have an answer for everything”. Barbara normally has a great gut feel about most entrepreneurs, and she relies heavily on it when deciding whether to invest in an entrepreneur. Barbara’s gut feel shouldn’t be ignored, but it didn’t stop three of the five remaining Sharks from circling.
Fizzics ended up getting $2 million from Mark and Lori. These four will make a strong team, assuming Barbara’s gut feel was wrong.
Philip and David from Fizzics
Number 4
The most impressive entrepreneur/contestant on this episode was Tara from The Sleep Styler. Shark Lori absolutely loved her hair styling product which can be worn to bed to minimize hair prep time in the morning. Lori made a preemptive offer and made it clear she wanted a fast response. Tara negotiated a bit (just the right amount) and ended up getting $75K for 25% of her business.
Tara’s time management skills are amazing. She’s a practicing ophthalmologist, a mom, a wife, and she started her new business about a year ago. I forgot to mention that with all of this going on, she somehow found the time to go to hair styling school. She will really be able to use Lori’s help and QVC connections to get her business to the next level.
Tara from The Sleep Styler
Number 3
The second Sharky Award goes to Nathan and Jim from Elephant Pants. These two young men from Brooklyn put on quite a show. After walking into the tank with an elephant wearing pants, they confessed that it wasn’t a good representation of their company. They then ran behind a wall and changed into very baggy, colorful pants and tops and danced to “You Can’t Touch This” by M.C. Hammer. The Sharks were hysterical.
But don’t be confused by the showmanship. These guys are the real deal. They have sold over $7 million of their products in just two years! Their unit cost averages $6 with a selling price of $24…..great margins. They sell only online and advertise on Facebook and Instagram.
Another bidding war broke out and Shark Daymond got the deal by investing $500K for 17.5% equity (2.5% of that will be Advisory Shares which vest over time). Daymond had to admit when they danced to Hammer, they had him. Daymond and the guys danced one more time to celebrate their deal.
Nathan and Jim from Elephant Pants
Number 2
Jae Kim from Chi’ Lantro has a fleet of food trucks and three restaurants serving his Korean Barbecue. Despite having college expenses and a failing business, Jae Kim had managed to save $30K to start Chi’ Lantro. This speaks volumes about him and and his determination. Self-funding is THE best way to fund a start-up, but it requires you to cut back on personal expenses and live below your means…..something many people aren’t willing to do. Mark Cuban said Jae had achieved the “American Dream” by starting his own business with his own savings.
His business had sales of $4.7 million this year and will have sales of $6 million next year.Shark Barbara had invested in Tom + Chee (they won my Sharky Award for Best Presentation of Season 5) and has helped them grow from $1 million in sales to $51 million! Since this is a similar business and her experience and knowledge is transferable, Barbara invested $600K for 20% equity……..a great deal for her and Jae Kim.
Jae Kim from Chi’Lantro
Number 1……..The Best Presentation of Season 8 and winner of The Sharky Award for entrepreneurial excellence……
Guari from Toymail. Her plush toys allow young children to send and receive voice mails from family members . She gave a flawless presentation, answered all of the Sharks’ questions with ease, and remained very calm thru a solid negotiation.
Guari gained instant credibility with the Sharks when she talked about the first product she created when attending MIT graduate school. She had sold $10 million of them out of her dorm room! Investors love successful serial entrepreneurs and she was no exception. She also impressed the Sharks when she said her early investors included Verizon and Amazon. Once again, investors are impressed when seed and early stage investments come from big-name sources.
Guari can add two more big names to her list of investors…..Lori Greiner and Chris Sacca teamed up to invest $600K for a 5% stake in Toymail. They will make a great team!
- Guari from Toymail
(Note: To use a horse racing analogy, this was a photo finish for 1st place between Chi’Lantro and Toymail. Both entrepreneurs did an outstanding job!!!
Chi’Lantro will be very successful, and represents slightly less investment risk than Toymail. Toymail is part of the toy industry and part of the technology industry. As such, it is a high risk/high reward business which will either make it big or stall in a hurry.
However, based on the criteria I am using to select the best presentation (see the top of this page), I have to give the Sharky to Guari from Toymail. She gave a flawless presentation!)
Best Presentation of Season 8-Guari from Toymail
The Best (and Worst) of Shark Tank 