Aspiring Entrepreneurs:Watch Shark Tank the Reality Show even before you start your venture
Explosive and Investor perspective questions test your business model . Be Ready to get chewed!
Rethink is the world's first ever proactive solution to stop cyberbullying BEFORE the damage is done.
The app was developed by a teenager Trisha Prabhu after hearing about the death of a11 year old girl who has been by cyberbullied for over 18 months.
The app gives a warning when you type an offensive message.
She had won several accolades before she sought $100 K funding from Sharks in exchange of 20% equity.
The trigger that got her investment was interest of companies in using the App as a part of their services. Companies can market it as Child Friendly Product.
She got $100 K investment for 20% equity jointly from Mark Cuban and Lori Greiner
1. She conducted a survey with 1500 teens for their reaction when they get a warning message. She got an encouraging response from 93% saying that they will not send the message.
2. She is open to commercialize it by selling to internet / mobile companies
3. The Courage and conviction to meet and present a case before sharks
How Sharks add critical inputs to the Business Model
Blendtique Wine Company is an innovative new concept whereby
the everyday consumer can create and design a personalized wine blend from the
comfort of home!
Billy Dim sought $ 250 K investment in exchange of equity stake of 10% in his company Blentique
e- Custom crafted wines. This is by using special toolkit.
Sales in years $ 200k
Selling price of the kit: $ 99 Cost: $ 35
Custom Blended Wine for a Case of 12 bottles : $300
Two Sharks point out following weakness in the business Model
No Clear pitch
Lack of focus(Selling Kits, or Conducting Educational / Demo Sessions or Selling Wine)
Price of Wine Overpriced (12-013$/ bottle)
Selling Price High- Should be in the region of 45$
Lori Grenier offers 250K for 20%. Billy wants her to come to 15%
Finally lori offers $ 205K as loan with 8% interest and 10% equity which was accepted
Elizabeth Granados a young mother has
developed the above product. She used Mom’s group Facebook page to pre-book
orders for $114K in 3 months’ time.
Target customers: Stylish Moms
Cost- $ 16.39 Selling price -$139
Seeks $ 80000 for 15% equity
Result: Does not get any offer
Learnings✌Å Too Early for Investment-No Product Delivered as of dateÅ Not a must have product – No product PullÅ Damien Observed that 95% of US market cannot afford the price
Å Niche Product not Mass market
Tim Talley Visionary Entrepreneur pitches 25 % equity for an investment S 200 K.
Concludes the pitch with an impressive statement
If the Shoe fits you invest
Ambition to scale up the business
Clear Articulation why he needs a partner from Shark Tank team
Kevin Offers 50 % equity for $ 200 K investment as he is unsure of valuation.
Tim Makes a counter offer of 35%. Before Kevin reacts , Mark Cuban expresses his willingness for 35% for an investment of $ 200 K Tim accepts .
Rumi Spice offers “the world’s finest saffron,” which adds a burst of flavor to any dish. Rumi Spice also partners with Afghan farmers “to bring top-quality, sustainably farmed saffron to customers around the world,” according to their website. Employing and empowering more than 300 women, they not only strengthen the country’s economy, but also reinvest back into the infrastructure. “We are laying a foundation for peace, one saffron flower at a time.” Prices range from $5.99 for saffron gems to $169 for a saffron bulk.
They have done $400,000 in sales so far and are projected to do more than $750,000 this year. They want to ultimately turn it into a brand.
The Co-Founders-Three war veterans seek $250K for 5% equity in their venture-Rumi Spice. They import Afghan Saffron and sell it in USA.They have a decent margin.
Their proposal gets severely criticised by Damien and Kevin. as expensive and limited market.
Country Risk was also identified
However Mark Cuban offers to invest but at 15% equity. He supports social cause as the venture benefits Afghan Farmers and is convinced that it will attract more customers.
The plan is to launch and sell other saffron products, like saffron butter and saffron tea to expand the market size
Tara Brown an Ophthalmologist had invested 100K in her above Project
Pain Point: As a working mom it was taking too much time to style her hair every day
Enrolled in Fashion School to acquire domain knowledge
Investment Required: $ 75 K for 30% equity
Lori Greiner offered for 20% but settled for 25% equity
Learnings for Aspiring Entrepreneurs
1. Pitching Skills
2. Spotting Opportunities
3. Proof of Concept established before seeking investment
4. Energy Level and determination
5. Quick Decision Making
Learning: Valuation Reality
Sunscreener a viewer used while applying sunscreen to show where you missed a spot. The device employs the use of a UV camera that monitors reflected UV rays. Skin coated with sunscreen will appear dark on the screen, while the skin that isn’t with show up light.
Product Proof of Concept Established.
Crowdfunding of $93000
1200 Units Sold
All sharks were not convinced about the product utility.
Investment: $ 800K for 10% Equity
Accepted ; $ 800 K for 33% from Kevin
Ease the Hassle of packing and travelling with Luggage
Seeks 5000 K for 40% equity
Sharks Sharp Comments
Mark Cuban-Solving Wrong problem
Lori Greiner-This is not your business
Holes in the Model
1.Sharks doubt whether anybody will ware used clothes
2.Travellers still have to carry their personal items
DO NOT GET INVESTMENT
Convenience for Customer
The Lapel Project offers customized lapel and accessories
designs; and according to the episode description, “turn a suit jacket into a
Sebastian Garcia and Raul Bernal of
The Lapel Project, seek $150,000 for 20 percent equity.
Mark Cuban is the first and only one to make an offer at $150,000 for 30 percent
Guardian Bike- Sure Stop Break
2.Solves a Critical problem of Children having accidents
Seeking $ 500K for 10% stake
Supplying Break kit to OEM(B2B) and also manufacturing their own brand
Kevin the Mr. Wonderful: Business Model Sucks.
Willing to invest only if entrepreneurs agree to sell Break kit to OEM
Mark Cuban: Marketing Sucks- No plan for digital Marketing
Offers $500K for 20% subject to their demonstrating sales in next 6 months. Accepts their business model of both B2C & B2B
Learning # 2- Listen for sound advice especially when there is no offer
1. What is the weakness in the business ?
2. How to move forward
Learning # 1-Elevator Pitch
Learning how to pitch to attract investment