Investment Pitch for Spikeball

Presenter: Chris from Chicago

Investment Proposal

• Seeking: $500,000 for 10% equity

Product Overview: Spikeball

• Poised to be the next great American sport.
• Easy to learn, hard to master.
• Can be a casual backyard game or competitive sport.
• Ultra-portable: includes a ball, net, and backpack.

Demonstration

• Features: Teams play by hitting the ball off the net to the opposing team.
• Scoring: First team to reach 21 points wins.

Historical Context

• Rediscovered from 1989 by Chris and his friends.
• Product was off the market for 15-20 years.

Company Details

• Governing body: USA Spikeball organizing 100 tournaments/year.
• Selling memberships: "Baller" membership through USA Spikeball.

Financial Information

• Price: $59.99 plus shipping.
• Sold in: Some toy stores, focusing on sporting goods stores.
• Sales: 29,000 units this year; cost $14/unit.
• Previous year sales: $1.4 million.
• Expected sales: $3.2 - $3.5 million.
• Retail growing but eating into net profits, with $170-180K net profit last year.
• Owner’s salary: $175K.

Retail Expansion

• Dick’s Sporting Goods is a significant retailer.
• Initial test: 100 stores, expanded to 250 stores.
• Cost to produce: aims to reduce from $14 to $10/unit.

Investment Use

• Working capital for large retail orders.
• Biggest retailer: Dick’s Sporting Goods, 10,000 unit order.

Shark Feedback

• Discussions on growth projections and challenges with valuation.
• Concerns over valuation compared to net profits.
• Offers to provide loans and equity in varying terms.
• Negotiations on equity percentage, concern over retaining sufficient company control.

Conclusion

• Chris secured $500K for 20% equity with a focus on expanding production and meeting retail demand.

Investment Pitch for OneSole Shoe by Dominique McLean

Investment Proposal

• Seeking: $500,000 for 20% equity

Product Overview: OneSole Shoe

• Interchangeable shoe tops, variety of styles.
• Patented with thousands of tops to choose from.

Product Features

• Retail price: $70-85 for base shoe and a solid top.
• Tops range: $12-30.
• Sales benefits: Cost-saving on luggage for travel by carrying fewer shoes.

Company Details

• Patents: 2 utility, 2 design patents, with more pending.
• Sales: Over $20 million in the past four years.
• 2000 stores in over 30 countries.
• QVC partnership with six appearances.

Financials

• Last year sales: $3.5 million. Previous year: $6 million.
• Manufacturing in Palm Beach, Florida, and molds in Italy.
• Cost to make: $18 for a 3-top package, sold to stores for $35, resold at $85-95.
• Recent orders include: 10,000 pairs in Japan, interest growing internationally.
• Net income from previous sales: $1 million.
• Valuation concern: 2.5 million.

Investment Use

• Fulfill upcoming large international orders, expand manufacturing.
• Real estate investment tying up capital.

Shark Feedback

• Different offers received: Loan structures, partnerships, outright sales.
• Final deal: Accepted offer of $500,000 for 35% with Damon, focus on production.

Investment Pitch for Titan Weighted Compression Gear by Patrick Whaley

Investment Proposal

• Seeking: $500,000 for 5% equity

Product Overview: Titan

• Weighted compression gear with gel inserts.
• Benefits: Increased strength, improved recovery, can be heated or cooled.

Product Features

• Aimed at improving athletic performance.
• Sales peaked at nearly $1 million a month recently.
• Main customers: Military, Crossfit enthusiasts.
• Retail price: $250 for a 3-part system.

Company Details

• Background: Mechanical engineer from Georgia Tech, specialized in biomechanics.
• Online and retailer sales, recently secured a large medical distributor.
• Proven sales growth, expected to reach 10 million this year.
• Venture capitalist experience: Burned $1 million in six months under different management.
• Ownership: Patrick and his father now own 100%.

Financials

• Previous year sales: $600K.
• Net profit margin: 30%.
• Use of funds for inventory, fulfilling significant purchase orders.

Valuation Concerns

• Sharks questioned the high 10 million valuation based on projected sales.
• Offers from sharks for higher equity percentages.

Conclusion

• Final deal: Accepted $500K for 20% equity with Damon, emphasis on scaling production and meeting sales demand.