This week on Shark Tank four pitches were presented to the sharks; Kisstixx, The Smart Baker, Heat Helper, and TEC.
Every week the sharks (Mark Cuban, Kevin O’Leary, Damon John, Barbara Corcoran and Robert Herjavec) are offered an opportunity to either invest their own money into either new businesses or infuse more money into an existing company to grow it more.
Dallas Robinson and Mike Buonomo present Kisstixx to the sharks. They are asking for $200,000 for a 20% stake in the company. The product is a high quality lip balm designed for partners to kiss and share flavors. When the two lip balms are combined they create a new flavor. The entrepreneurs test the product out on Kevin and Barbara. They are told to kiss and tell. This is the most entertaining aspect of the presentation.
To date, Kisstixx has sold $80,000 in product. They have a PO for $540,000 with Walgreens but they need an investment to ramp up production. They also want to roll out gum and breath spray lines within the company. Mark Cuban bites and offers $200k but he wants 40% of the company. They make a deal!
Next up, The Smart Baker. Stephanie and Daniel Rensing ask for a $75,000 investment for a 25% stake in their company. They have created a quick reference apron for bakers to convert large recipes into a paired down version for 2 people. They also have created PVC stacks for cupcakes and parchment paper with tabs to assist removing cakes from pans. They have sold $34,000 in the last three months and hope to end the year with $100,000. Damon offers $75,000 but he wants a 40% stake in the company. Barbara also bites but asks for an extra 5% royalty, which will end after her initial investment is paid back. The kicker is Barbara has great connections in the baking world and will get them up and running in a few short months. The Rensing’s take Barbara’s offer. Smart choice!
Lyle Schuette is up next with his Heat Helper. He’s asking for $100,000 for a 50% stake in his company. He invented this product to help his wife after she hurt her back. She needed assistance getting the laundry into the dryer. This product not only raises the level of the dryer but also recycles warm air to heat a home. The product retails for $99 and will save over $100 in heating the first year. He has only sold 680 units through his website. None of the sharks bite but they did love Lyle’s upbeat personality.
Scott Jordan is last up with TEC. He is asking for $500,000 for a 15% stake in his company. He is only selling the licensing part of the business and not the outerwear. TEC stands for Technology Enabled Clothing. It is a patented technology allowing wires to be inserted seamlessly into jackets or vests. He has had $5.1 million in sales and plans on doing $12 million this year. Only Robert and Damon offer the $500,000 but they want 15% of the licensing and outerwear. Scott calls an advisory board member, Steve Wozniak, co-founder of Apple Computers. Scott comes back into the room and says no deal and then tells Robert and Damon they are out. Scott walks out of the building without any help. The sharks are not happy about this.
Next episode on Shark Tank we will see a rent-a-grandma business, organic skin care, body jewelry and a movable basketball training apparatus.
Shark Tank airs on ABC Friday’s at 8/7c