Shark Tank Presentation Notes

Presenter Introduction

• Name: Yuna
• Location: San Francisco
• Company: Simple Habit
• Seeking: $600,000 for 5% equity

Company Overview

• Simple Habit is a meditation app targeting busy lifestyles.
• 5-minute meditation sessions designed for various situations (e.g., "Monday blues").
• Thousands of meditations created by top teachers.
• Revenue sharing: 20% of net revenue goes to meditation teachers.

Business Performance

• Launched less than a year ago.
• Achieved: 500,000 users and $750,000 in annual recurring revenue (ARR).
• Growth rate: 50% quarter-over-quarter.
  • Last month's sales: $75,000; this month's projected sales: $90,000.
• Pricing:
  • Free to download; premium access for $1.99/month or $99.99/year.
  • Over 5,000 subscribers.

Competitive Landscape

• Identified competitors: other meditation apps, often with only one teacher.
• Differentiator: a marketplace for various teachers and styles.

Financial Insights

• Raised: $2.8 million at a $12 million valuation.
• Remaining cash: approximately $2.3 million.
• Expected to generate over $5 million next year but currently not profitable.

Investment Discussion

• Yuna emphasizes the value of the Shark's contributions.
• Discussion about valuation and use of funds:
  • Plans to scale user acquisition and partnerships with celebrities/influencers.
• Some Sharks express skepticism about the need for further funding given existing capital.
• Barbara and Mark express concerns about how funding is handled and the company's future cash needs.
• Offers made:
  • Richard and one other Shark offer $300,000 for 10%.
  • Yuna counters with a request for a higher valuation.

Emotional Responses

• Yuna shares personal background and motivation, highlighting the impact of the app on users' lives.
• Some Sharks label her approach as opportunistic, leading to heated exchanges.

Summary of Offers

• Ultimately, Yuna did not secure a deal.
• Sharks debate the fairness of her funding strategy amidst personal anecdotes and differing opinions on the app's value.
• Reflection on the potential impact of the app on users' lives despite business challenges.

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Snack Presentation Notes

Team Introduction

• Presenters: Allison and Steve
• Company: L air
• Seeking: $300,000 for 12% equity

Product Overview

• Product: Puffcorn snack, healthier alternative to traditional popcorn.
• Features:
  • 50 calories per cup, gluten-free, non-GMO, allergen-free.
  • Available in flavors: classic, white cheddar, pancake, and cinnamon bun.

Market Strategy

• Target market: all age groups, positioning as a guilt-free snack.
• Retail price: $3.99, cost of production: $0.88.
• Raised significant funding: $800,000 in 2019, followed by $3.5 million at a $23.5 million valuation.

Financial Performance

• Sales:
  • 2020: $100K
  • 2021: $25 million
  • 2022: over $5 million, but lost $190K.
• Projected sales for 2023: over $10 million.

Challenges and Opportunities

• Distribution challenges in a mature market; need for marketing to increase visibility.
• Sharks express concerns about future cash needs and scalability in the snack market.

Offers and Discussions

• Sharks discuss the risks and critiques regarding the valuation and potential scalability.
• No agreement reached during the pitch; Allison and Steve face skepticism about their ambitious growth plans.

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Non-Alcoholic Beverage Presentation Notes

Presenter Introduction

• Name: Melanie
• Company: Gia
• Seeking: $250,000 for 5% equity stake

Product Overview

• Product: Non-alcoholic beverage that mimics the flavor profile of alcoholic drinks.
• Flavor notes: Yuzu, rosemary, and citrus.
• Price: $38 for a bottle with 10-12 servings; cost of production: $65.

Market Performance

• Achieved $2.5 million in first calendar year, primarily through online sales.
• Projected sales for the following year: $4.5 million.

Investment Discussion

• Challenges in the non-alcoholic beverage market noted by Sharks.
• Offers made:
  • One Shark offers the full amount (250k for 5%) based on Melanie's current valuation.
  • Other Sharks express interest but push for higher equity stakes.

Closing Thoughts

• Melanie chooses not to accept the deal, feeling she cannot compromise her early investors' equity.
• Reflection on the importance of evaluating offers carefully and considering long-term implications for company ownership.