‘Shark Tank’ Episode 3: Robert & Daymond Battle Over Baby Sock Company (RECAP)
Spoiler Alert
On Episode 3 of Shark Tank Season 11, four hopeful companies — Eterneva, Baobab, Aira, and Squid Socks — pitched their businesses to Mark Cuban, Kevin O’Leary, Lori Greiner, and Daymond John with the hopes of landing a deal.
Read on for all of the highlights including who gets a deal with one of the sharks!
Eterneva
Adelle Archer and Garrett Ozar were first up in the tank tonight, asking for $600k in exchange for 5% of their company, Eterneva. Eterneva offers a unique solution to remembering passed loved ones by turning their ashes into diamonds.
“Our diamonds give you something positive to look forward to,” Garrett said.
The company is on track to hit $2.7 million this year, which was music to the sharks’ ears — until it was also revealed that they raised $1.2 million from outside investors at a $10 million valuation.
“You already have so much at your disposal. I just don’t see it,” Daymond said, before going out. Lori mirrored Daymond’s sentiment by adding that it “just doesn’t feel right” before also removing herself from a potential deal.
Though Mark was also skeptical about the other investors that they’re already working with, he decided to throw a deal into the mix: $600k for 15%. The entrepreneurs came back and asked for 6%, to which Mark denied.
Robert chimed in, saying he’d be willing to do $600k for 10%, while Mr. Wonderful threw in a deal as well, $600k for 12%.
Their counter offer was to Mark and Robert together: $1 million for a 10% stake, but Robert wasn’t impressed. “I don’t think you’re here to get a deal. I’m out,” he said.
Ultimately, they agreed to do a deal with Mark which resulted in $600k for 9%.
Baobab
Brandon Davenport and Marcellus Alexander III were next up in the tank, asking for $150k for a 10% stake in their fashion business, Baobab. Together, they created a stain-resistant polo shirt that won’t shrink or fade.
Though the product was certainly impressive, the sales? Not so much. In the last year, they’ve only earned $85k in gross revenue. On top of that, the stain-resistant material in the polos isn’t proprietary, giving the sharks less of a reason to want to invest.
Ultimately, Baobab walked away without a deal.
Aira
Aira is the world’s first free-position wireless charging surface. Entrepreneurs Eric Goodchild and Jake Slatnick entered the tank looking for $500k for a 7% stake in the company.
“Put Aira anywhere you put your phone and never run out of power again,” they said.
View this post on Instagram
Are you shocked by the ease of this wireless charging solution?! ⚡️ #SharkTank
Robert offered $500k for 10%, while Lori and Kevin were interested in $500k as a loan at a 9% interest for 15% stake.
“This is not the time to get a loan,” Robert said, reiterating his deal and how he’d be a hands-on partner in the business.
Lori and Kevin retracted the loan and said they’d be interested in $500k for 15%.
The entrepreneurs countered and asked for Lori, Kevin, and Robert to join forces for $500k for 15%, to which they agreed.
“It was two really hard choices but at the end of the day, we turned it into one really great choice,” the business owners said.
Squid Socks
Gabe and Jessica Miller pitched their business, Squid Socks, which is a redesigned baby sock that clings to a foot, making it nearly impossible to fall off.
“Squid Socks help parents and caregivers make the daily sock battle a thing of the past,” Gabe said.
Asking for $125k for a 20% stake in their business, the entrepreneurs revealed that they only have $40k in sales. But their sales have been stunted due to significant production issues, not due to customer’s lack of interest.
Robert offered $125k for 40% but Daymond, who has a clothing background and also currently works with another sock company, Bombas, offered $125k for 33%. The entrepreneurs asked if they would join together but Daymond said he “needs Robert like he needs a hemorrhoid.” Yikes! Robert then revised his offer to $250k for 40% OR $125k for 30%, in an attempt to sweeten the deal.
Ultimately, the entrepreneurs chose Daymond, who has strategic licensing plans for the business.
“We took Daymond because he is the ideal fit. It seemed like a no-brainer,” Jessica said.
Shark Tank, Sundays, 9/8c, ABC
