It’s Christmas time over at the Shark Tank, and the Sharks are looking for nice little entrepreneurs to give their money to. However, some naughty hopefuls might find themselves walking away with only coal, or maybe not even that.
Shark Tank starring Mark Cuban and Lori Greiner airs on ABC Fridays at 9 pm ET.
Shawn Genebacher went in asking for $125,000 for a 20 percent stake in his company, Lite Netics. Lite Netics are magnetic Christmas light strands, which aim to take the headache out of putting up Christmas lights. It looked easy enough, but did the Sharks bite?
Lori Greiner brought up an interesting question, which helped exclude the houses with aluminum. The price point posed a problem, since his lights would cost $70 compared to a regular strand, which is $20. Kevin O’Leary wondered why Shawn hasn’t licensed the product instead, and made an offer for 50 percent equity, an offer also contingent on a licensing deal. Shawn asks for other offers, but the other Sharks started dropping out. Daymond John offered the same deal but dropped the equity to 40 percent. Shawn countered Daymond with 30 percent but it was a no go. Mr. Wonderful also wouldn’t budge, so Shawn walked away without a deal and became dead to both Kevin and Daymond.
One Life Products
Morri Chowaiki wanted $50,000 for 15 percent. His company supposedly solves the problem for interfaith families during the holidays by using a Hannukah tree topper. He was a very energetic and had the Sharks laughing. His sales, however, were no joke to the Sharks. It is impressive that Morri has been in stores like Bed, Bath and Beyond and it is admirable that he wants to join faiths together. But Kevin was right; the tree topper is a seasonal product, and people usually buy stuff like that once or until it burns out. After the other Sharks dropped out, Daymond contemplated making an offer and decided to take a gamble with an offer of $50,000 for 35 percent equity. That’s more than double what Morri wanted, and he began to question Daymond’s offer, which is never a good thing to do. Luckily common sense won out, and Morri took the deal.
Marine Rob pitched his energy drink last season, and now his business has really increased after making a deal with Kevin and Robert Herjavec. His sales have grown to over half a million and he now has a deal with Walgreens. But the coolest part is that he was able to get a jet to help market his product.
Rachel and Melissa are a hairdresser and model that tried to gain $45,000 for 15 percent of their hair extension business, Cashmere Hair. Kevin wondered how they know that it’s human hair, and the ladies responded that they have it all tested. Robert asked how they planned to get their name out, and the company said they focused on making their presence online. Mark Cuban thought it was a great business but felt they didn’t need an investor and dropped out. Daymond agreed and also left the deal. Lori was the last Shark standing but she just felt that they weren’t going to stand out in their niche, which sent the emotional pair home without a deal.
Evan and Nick are the owners of Tipsy Elves, which aims to revolutionize the Christmas sweater market. They asked for $100,000 in exchange for a five percent stake. The designs were cute, and quite creative (especially the reindeer sweater dress) but will it fall into the usual traps of seasonal products?
Kevin called the sweaters hideous, but was still impressed with their sales. Mark wondered why they wanted to get into this type of market, especially with guys like Daymond out there as competition, and thought they should focus on the online market. Of course, it all boiled down to the valuation, which some Sharks felt was too high, while others didn’t feel it was an issue. Those concerns had the Sharks dropping out, that is until Mr. Wonderful made his usual royalty based offer. The duo was interested but they held out for more offers. Luckily they got another from Robert, who offered the cash, but in exchange for 10 percent equity. Daymond was left, and once again, he wasn’t sure which way he wanted to go. He still had inventory with another ugly sweater company, which added to his concern. In the end, he dropped out, leaving Robert and Kevin to fight it out. The guys decided on Robert, and left Kevin in the dust.
What do you think? Would you have invested in any of these companies?