Presentation by Jeff Stroop

Introduction

• Jeff Stroop, owner of Highcon LLC
• Seeking $500,000 for 40% equity in his business

Problem Statement

• Jeff's experience as a fireman for 15 years
• Need for faster water supply to fire scenes to save homes and lives

Solution: Highcon

• Innovation: World's fastest way to connect/disconnect from a hydrant
• Demonstration with two professional firemen:
  • Damon connects Highcon to a standard hose
  • Kevin connects a standard hose the traditional way
• Time Comparison:
  • Highcon connects in less than 3 seconds
  • Standard connections can take 30 seconds or more
  • Highcon disconnects in 1 second

Market Opportunity

• Over 33,000 fire departments in the U.S.
• Significant potential for profit in this market
• Jeff has visited 11 departments for potential sales:
  • 4 departments ready to give purchase orders
  • Others are preparing paperwork

Pricing

• Smaller Highcon unit: $215
• Larger unit (for steamer valve): $385
• Average sale: 35 units per department (~$7,000 total)

Challenges and Considerations

• Budget constraints in the fire department sector due to cuts
• Need to convince departments to mandate the product for life-saving reasons
• Discussion on distributing through other companies

Investment Offers and Negotiations

• Various offers discussed:
  • Mark Cuban: $1.25 million for 100% ownership with a three-year employment agreement at $100k/year
  • Other offers include a $500,000 for a percentage and a royalty agreement

Conclusion of Negotiations

• Jeff accepts Mark Cuban's offer (1.25 million for 100% of the company + royalties)
• Decision seen as strategic for future growth and support in the industry

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Rugged Races Presentation by Brad Scudder and Rob Dickens

Introduction

• Seeking $1 million for 10% equity
• Operate popular 5K obstacle course race series called Rugged Maniac

Event Description

• Features 25 obstacles over three miles
• Accessible to a wide audience
• Balance between physical challenge and fun atmosphere

Financial Overview

• Projected 2023 revenue: $4.2 million, with $1 million profit
• Projected revenue for next year: $6.5 million, with $2.2 million profit

Competitive Landscape

• Competing with brands like Tough Mudder and Warrior Dash
• Emphasizes unique selling points and customer experience

Expansion Plans

• Plans for expanding to new locations and events

Offers and Counteroffers

• Mark Cuban offers $1.5 million for 25% equity, discussion about their dual business model
• Final agreed offer is $1.75 million for 25% of the company after negotiations

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1031 Productions Presentation by Melissa Carbone

Introduction

• Seeking $2 million for 10% equity
• Produces live attractions in the horror genre, including Los Angeles Haunted Hayride

Business Model

• Seasonal attraction with high demand
• Plans to expand to additional locations and attractions

Financial Overview

• Current revenue from the Haunted Hayride: $1.8 million in 17 days
• Costs: $1.2 million to produce, leaving $600,000 cash
• Projection for next year: 3.6 million in revenue if sold out

Valuation Controversy

• Disagreement over the $20 million valuation based on current and projected revenues
• Sharks express concerns over risk and feasibility

Offers and Counteroffers

• Mark Cuban offers $2 million for 40% equity
• Melissa counters for $2 million for 20% equity, which is accepted

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Key Takeaways

• Each entrepreneur presented unique business models with varying levels of risk and potential rewards.
• Negotiation strategies varied widely based on industry experience and perceived value of businesses.
• The importance of addressing market needs and consumer demand was a consistent theme in the discussions.