This week’s episode of Shark Tank features wet paintbrush storage, a portable mat that fits into an ultra-compact pouch, home meal delivery, and whole-grain flapjack and waffle mix.
First into the tank is Cameron Smith and Joel Clark with their product, “Kodiak Cakes.” They’re asking for $500,000 in exchange for 10 percent equity in their company.
Kodiak Cakes is a flap-jack waffle mix made with 100% whole grains with no added fats or sugars. The guys pass out samples to the Sharks. They love the berry syrup. Mark Cuban wants to know their track record. Their product is already in Target stores nationwide. They’re projected to do $1 million in sales through Target this year, and total sales of around $5 million. They did $2.5 million in sales last year.
They came to the tank to get money to grow their business and start creating other products. Kevin O’Leary says there is nothing propriety about the product, and doesn’t like the $5 million valuation. Lori Greiner thinks the packaging is interesting because it has an outdoor camping-type look. Kevin and Mark bicker over what they believe stores are looking for in this product category. Kevin says, “I don’t do good deals, I do GREAT deals.” He tells Cameron and Joel their company is worth $2 million. He wants 50 percent of the business, but knows that they won’t do that deal, so he’s out.
Robert Herjavec offers $500,000 for 30 percent. Barbara Cochoran throws out a partial offer of $250,000 for 20 percent, but says they have to lure another Shark into the deal for the other half. Kevin jumps back in and says he’ll do the other half, but wants 25 percent, so that ups the offer to $500,000 for 50 percent with Barbara and Kevin.
Cameron and Joel believe their company is worth more, and they decline all offers. They leave the tank without a deal.
Update: Grace and Lace
Earlier this season, Melissa and Rick made a deal with Barbara with their fashion sock company
Five days after the show aired, they reach $1 million in sales. In 3 months, they have done almost $3 million in sales. They’ve gone from 6 employees, to 36.
Next into the tank is Christie Barany and Courtney Turtich with their company, “Monkey Mat.” They describe it is, “the only clean portable surface you can have anywhere you go.” Christie shares an anecdote about how the idea came about, saying the inspiration came from a six hour layover at the airport where her kids were crawling all over the dirty airport floors.
The mat comes in a small, cute pouch that can connect to any purse or bag. The mat itself has loop attachments where you can hook keys or toys to the blanket. They have sold $60,000 worth of Monkey Mats this year, their first year of inception. The mats cost $39.9, which makes the Sharks gasp at the high price.
The material that it’s made from makes it costly. It’s a water repellent nylon that is treated to remain soft. Kevin asks why would anyone pay for a piece of nylon on the floor. Mark loves the product, but hates the price. The Sharks believe it should be a $9.99 product so it can become a mass-market product. Lori is familiar with the fabric industry and she believes she can get the cost down. Barbara believes the mats are too small, and the colors aren’t “hip.”
Lori wants to see if Mark will go in on a deal with her. They offer $100,000 for 35 percent. The girls happily take the deal.
Up next is Harvard Business school graduates Nick Taranto and Josh Hix with their business, “Plated.” They are seeking $500,000 in exchange for just 4 percent equity. This makes the Sharks chuckle right off the bat. Their mission is to help Americans eat better. Plated delivers all the ingredients you want to make a meal and then they deliver the ingredients. Their argument is that you can order smaller portions as opposed to buying large portions at the grocery store. They are projecting $1 million a month for the rest of the year.
Robert loves to eat healthy, but says he wouldn’t order anything that he has to cook. Lori cooks a lot, but she thinks people who cook don’t mind going to the grocery store to pick out their ingredients. They see their biggest competition right now as takeout food. Mark said he wouldn’t be a customer, but that doesn’t mean he still wouldn’t invest. He offers $500,000 for 5.56 percent, but in addition to that, he wants advisory shares. Advisory shares are used to compensate advisors who bring strategic value to a company. The two accept Mark’s deal and leave the tank with an investment from a high-profile Shark.
The Paint Brush Cover
Last into the tank is three New Yorkers painters, John and Sal Depaola, and Anthony Caputo with their business, “The Paint Brush Cover.” They are seeking $50,000 for a 10 percent stake in their company.
They believe they have created the most revolutionary product for the painting industry. It’s a plastic cover that cover up a paint brush. It seals air tight and you can put a wet brush in the case and they claim the brush will never dry out. They have sold 17,000 units with gross sales of $35,000.
Kevin offers $50,000 for 10 percent royalty on all sales. Robert offers the $50,000 for 20 percent. The guys want to know that Kevin is investing in the company, so he changes his offer. He adds another $50,000 and wants 5 percent on top of what he already offered.
Lori jumps in and offers $100,000 for 20 percent and says if they take the deal right now, she’ll give them another $100,000. Barbara wants to make an offer, but Lori tells the guys that her offer will expire if they listen to Barbara’s offer. The guys decide to take Lori’s deal.
Tune in to ABC next Friday at 9|8c for an all-new Shark Tank.