Notes from the Shark Tank Presentation

Cousins Maine Lobster

• Presenters: Jim Celikas & Sabin Lomac
• Background: Cousins from Portland, Maine currently living in Los Angeles.
• Product: Maine lobster rolls from a food truck.
• Investment Request: $55,000 for 5% equity.
• Key Points:
  • Maine lobster has a reputation for being the most tender and succulent.
  • Business is booming; need another truck to meet demand.
  • Lobsters are sourced and shipped fresh from Maine within 24 hours.
  • Two types of lobster rolls:
    • Signature Maine lobster roll (with mayonnaise)
    • Connecticut roll (with lemon)
  • Sales in the first two months are reported as $150,000 and $85,000.

Sharks' Concerns

• Valuation: Sharks question the $1.1 million valuation based on only having one truck and limited sales history.
• Supply Chain: Questions raised about the lobster supply chain and whether it can be easily replicated by others.
• Cost & Economics:
  • Selling price for lobster roll: $13
  • Cost of lobster roll: $5.85
  • Monthly truck overhead: $20,000

Negotiation Outcomes

• Offers from Sharks:
  • Mark Cuban: Out due to lack of confidence in the valuation.
  • Barbara Corcoran: Offers $55,000 for 17% equity.
  • Ultimately agreed on $55,000 for 15% equity with Barbara.

Everly Well Presentation

• Presenter: Julia Cheek
• Business: At-home lab testing company for health diagnostics.
• Investment Request: $1 million for 5% equity.
• Unique Selling Proposition: Convenience, simplicity, and understanding of results.
• Sales: $2.5 million in 9 months with projections of $55.5 million for the next year.
• Funding History: Raised $5 million at a $15 million valuation.
• Challenges: Not covered by insurance; competition in online health diagnostics.

Sharks' Feedback

• Concerns over high competition and ongoing funding needs.
• Offers include a line of credit from Lori Greiner.
• Final agreement reached for $1 million line of credit for 5% equity.

Scrub Daddy Presentation

• Presenter: Aaron Krauss
• Product: Scrub Daddy, a versatile kitchen scrubbing tool.
• Investment Request: $100,000 for 10% equity.
• Unique Features:
  • Changes texture based on water temperature (soft in hot, firm in cold).
  • Smile face design for better cleaning.
• Sales History: $100,000 in sales from QVC in just 4 months.
• Manufacturing Plans: Seeking investment to set up independent manufacturing.

Sharks' Reactions

• Concerns about the retail potential and competition in scrubbing tools.
• Offers from Sharks range from $100,000 for 30% to licensing deals.
• Final deal made for $100,000 for 20% equity.

Bombas Presentation

• Presenters: David and Randy
• Product: Athletic leisure socks with a social mission (one pair donated per purchase).
• Investment Request: $200,000 for 5% equity.
• Sales: $450,000 in sales in 9 months, projected $2.7 million next year.
• Key Features:
  • Comfort improvements based on customer feedback.
  • Price point of $9 per pair which includes donations.

Sharks' Concerns

• Skepticism about sustainable growth and profitability in the long run.
• Concerns over high valuation at $4 million.
• No deals made as the Sharks did not see potential.

BS Company Presentation

• Presenter: John
• Product: Online floral delivery service with a unique offering (fixed price, eco-friendly).
• Investment Request: $258,000 for 3% equity.
• Sales: $700,000 in the first year with plans to scale.
• Key Points:
  • Simplified pricing, no hidden fees, and a concierge service for clients.
  • Flowers shipped straight from sustainable farms.

Sharks' Feedback

• Concerns about the valuation and sustainability of the business model.
• No deals were made due to skepticism around the competitive edge and pricing strategy.

Summary

• The presentations highlighted various innovative products, each with unique challenges and market dynamics.
• Interaction with Sharks focused on the valuation, business models, and potential for scalability.