Any aspiring entrepreneur definitely has their eyes tuned into Shark Tank every Friday at 9:00pm. This weeks episode was pretty good with a nice variety of entrepreneurs making their pitch to the Sharks.
The Shark Tank Entrepreneurs of Episode 6
The Oilerie was presented by a gentleman named Curt Campbell. His business was a franchise opportunity for selling fresh bottled oils and balsamic vinegars. The customers come into the store, taste the oils and if they like it, The Oilerie bottles it right in front of the customer – kind of cool idea.
Based on the pitch, my gut says that the Sharks will not invest. Initially I thought they may invest, however once he laid hte bomb down that the 3.1 million in sales was gross revenue from 8 franchises that sealed the deal for me. Curt expressed the fact that running his business was too stressful and Mr. Wonderful also thought the only reason he was succeeding was because solely on the fact he is in a location where there is no competition.
The Result on The Oilerie
- Mr. Wonderful (Kevin O’Leary) does not think the business was ready to jump into the franchise model yet – He’s OUT
- Robert Herjavec doesn’t know much about olive oil and can’t help him – He’s OUT
- Mark Cuban said he’s not the right kind of partner for his kind of business – He’s OUT
- Barbra thinks he’s hard working but thinks the franchise business is brutal and he’s not cut out for it – She’s OUT
The entrepreneur did not get a deal however all the Sharks thought he was a great entrepreneur with great passion.
HoneyFund was presented by a husband wife team and is a way for newlyweds to crowd-fund their honeymoons. The couples that use the site enter in their own PayPal information, but since the site does such a large volume of transactions, the couple has a deal with PayPal so they get a percentage of the transaction revenue that come from their site. The couple claims to have 30% market share of the honeymoon crowd funding sector. After a few sharks went out, they started dropping more and more bombs about different crowd sourcing niches they wanted to enter into – basically be the crowd funding hub for what looked like 8-10 different brands and niches – they also presented the fact that they would be launching in spanish.
I do not think any of the sharks will invest in the site. The couple asked for a 2 million valuation on clear cash revenue of 150K. Also, they seemed to lack some focus with the launch of the 10 different brands and I felt like they should have gone head first with trying to regain the 70% of the market share in the honeymoon space.
The Result of HoneyFund
- Mark Cuban does not see “scaling quickly” over 5 years as not quickly scaling. He sees the business as being on auto-pilot and the extension into the different crowd funding areas as bad news – He’s Out
- Robert thinks they have done a great job creating transnational value and should focus there instead of brand extensions. He offers 500K for 50%
- Kevin O’Leary offers 400K for zero revenue. He only wants to be paid back 1.2 million by taking 33% of revenue.
- Barbra offers 400K for 30% at which time Robert matches Barbra’s offer
HoneyFund counters Robert by asking him to drop down to 25% – Robert says no.
HoneyFund takes Kevin O’Leary’s deal!
EmergenSee is a security application / private security firm that would be a better and saver alternative to dialing 911. The two entrepreneurs are former police officers and realestate investors.
On the surface it looks like a really cool application, however it seems incomplete to me. Going furhter into the presentation we find out that the company has very little revenue, no technological expertise and has put in 3 million to the business while only having 68K left in the bank. The application is incomplete and they have no funds left to continue iteration and changing. The company also has no profit. I do not think the sharks will invest.
The Result of EmergenSee
- Mark thinks the owners need to know the technology inside and out – they don’t have a tech geek – He’s Out
- Barbra doesn’t see this as a business for her – She’s Out
- Kevin O’Leary sees an issue with the valuation, but he’s Out
- Lori does not think the business is being executed properly – She’s Out
- Robert says they started off with too much money and that hurt their business – He’s Out
EmergenSee did not get a deal
The second I saw the three partners from BeatBox Beverages, I told my wife that they’d get a deal because they looked fun and unique and I was right. BeatBox Beverages is a hip spin on wine in a box. They use an orange wine and which allows them to create different mixed-drink style wine flavors.
In just seeing the entrepreneurs walking into the shark tank, I thought they’d get a deal just because it seems like the sharks like to invest in people just as much as products.
The Result of BeatBox Beverages
Just as I predicted, BeatBox Beverages got several offers and the way it went down was pretty cool – Cuban offered them 600K for 33% – BeatBox countered back at $1 Million for 33% and Cuban all cool and collected says “ok” – DONE DEAL!