Spoiler Alert: Deals and Results Ahead
ABC is bringing back Shark Tank with a new batch of entrepreneurs pitching their ideas to investors live in the studio.
The first company out of the gate on this episode was Slumberpod. Honestly, after the child crying on stage during the pitch, I didn’t see the panel wanting to pick up the product. After the business owners disclosed their markup value to the product, it seemed to spark the attention of Barbara. Mr. Perfect also offered a deal to the investors.
Mark Cuban’s perspective aligned with my point of view on the development of the company in comparison to investing in a new product.
Slumberpod ended up with a deal with Barbara Corcoran. After eleven seasons of this show, I’m wondering how hands on the investors are with their companies.
This episode appeared to be product heavy. I am going to continue to note the amount of services being pitched in comparison to products. As a business owner of a Web development service, I could see myself having to create a product to markup if wanting to make a splash on Shark Tank. That being said, I did see a local competitor running an advertisement during one of the commercial breaks.
Fortress Clothing is a set of products that I might want to invest in depending on their sales and growth. My assumption with global warming is that warmer clothing will have less demand, and that could result in a downward trend in that product line.
The pitch idea behind Fortress Clothing was original and interesting, but the primary markets and their business plan lacked structure. I do appreciate the entrepreneur behind Fortress and his ability to pivot to new companies during his career.
Mr. Perfect brought up how he would get his money back on his investment. If I were one of the investors, I would also be skeptical about my return on investment. That being said, I would have serious doubts on Slumberpod, but two investors went after that product.
In response to Fortress Clothing investor Robert Herjavec provided this interesting quote.
“I just want you to be successful in one category.” – Robert Herjavec
A Web outlet called The Hustle provided some interesting insight on investments on Shark Tank.
- 56% of contestants successfully make a deal
- Women are underrepresented on the show and secure smaller deals
- The average deal amount is $286k; the average equity given up is 27%
- Food (20%) and fashion (19%) are the most popular pitch industries
- Mark Cuban is the most prolific deal-maker (151 deals in 10 seasons)
Zuum shoes felt more like of a possible lawsuit in comparison to a company with a solid return on investment.
The business owners of Zuum noted they did not have complete rights to the product, and multiple sharks appeared to tune out at that moment. They lacked sales tactics to properly persuade the investors. Overall, they just missed the mark for myself.
The business owner behind this product was on a roll for several years, but appeared to come up short with recent sales. I deeply appreciate that his product has had years of sales on a large-scale. It boggles my mind why investors want to get behind brand new products with no marketing, and turn their noses up at a product with years of sales.
I would also be concerned with FlexScreen’s recent figures for sales.
Barbara brought up an excellent point about having to buy new screens for a beach house that is located near a coast. I love her point of view on FlexScreen, and her ability to find a market with demand behind the product. Barbara is a genius.
Lori, Kevin and Barbara all offered deals, but the business owner went with Lori Greiner in the end. The business owner had almost lost all deals if it wasn’t for Barbara’s turn in the pitch.
Overall, I enjoyed the show and writing a review in real-time. 2020 is looking bright for all entrepreneurs willing to take chances and invest their time wisely.