'Shark Tank': Guilt-Free Dessert Company Impresses the Sharks (RECAP)
Stitch Fix founder and CEO Katrina Lake joined Mark Cuban, Kevin O'Leary, Lori Greiner, and Robert Herjavec to meet the hopeful entrepreneurs behind the companies Coconut Girl, Baby Quip, Bite Toothpaste Bits, and Pair Eyewear. Who walked away with a deal of a lifetime tonight on Shark Tank? Read on to find out!
Bite Toothpaste Bits
Roughly one billion empty toothpaste tubes end up in our landfills every single year — and Asher Hunt and Lindsay McCormick's company offers a solution to that. Seeking $325,000 for 5%, the pair introduced the Sharks to Bite Toothpaste Bits, which are dried tablets used to clean teeth which come in reusable glass containers. The bits also come free of artificial flavors and preservatives, which are normally found in standard toothpaste.
And the numbers speak for themselves, as the company is on their way to earning $1.3 in sales.
Katrina was the first Shark to drop out, claiming that the space is too competitive and the product itself doesn't currently have fluoride, which is a necessity in toothpaste. Robert followed suit, saying he would "never" do a deal like this for only 5% equity. Lori, too, didn't want to get on board with the business and opted to go out.
Mr. Wonderful, on the other hand, threw out a deal of $325,000 for 20%, which is much more equity than the entrepreneurs originally wanted to sell. Mark also expressed interest and made an offer of $325,000 for 15%, but unfortunately, Asher and Lindsay weren't willing to give away even 15% of their business and walked away without a deal.
Joe and Fran Meyer entered the tank asking for $500,000 for a 5% stake in their company, Baby Quip, which aims to help traveling parents. Baby Quip is an online renting platform that connects traveling families to independent local providers that carry baby essentials including high chairs, car seats, and cribs. So instead of lugging around extra baggage while traveling, the items you need will be shipped to wherever you're staying.
Since 2016, the company has done $3.7 million in sales and are planning to use the money to continue to grow brand awareness.
Though Robert and Lori were both fans of the business concept, they couldn't get on board with becoming actual investors, and they both dropped out. Mark added that the investors have big challenges ahead in order to become cash positive so he also removed himself. Katrina said the business was "too risky" for her to invest, and she decided to go out as well.
But Kevin, once again, was willing to throw out an offer: $500,000 for 20% equity, to which they immediately countered at 10%. "But you're still a startup!" Kevin said. "I have to feel the love. I'm taking a risk."
Ultimately, Fran and Joe walked away from a deal with Kevin as they couldn't agree on a valuation.
Frankie Yamsuan was next up in the tank seeking $180,000 for 18% of her guilt-free frozen treat company, Coconut Girl. Coconut Girl offers ice cream sandwiches that are dairy-free, gluten-free, and naturally sweetened with organic coconut milk, honey, and maple syrup.
The Sharks were eager to try out the healthy dessert alternative — and Frankie didn't disappoint. "Oh my God, this is amazing," Robert said with a mouthful. And they were equally impressed with the sales. Currently, Coconut Girl is on track to do $300,000 in sales this year, selling in big box stores in California.
It didn't take long for Mark to express his interest with an offer of $180,000 for 25% stake. Only problem? He wasn't willing to let Frankie hear out the other deals — even though Lori and Kevin were both voicing that they were interested in the company as well. Mark temporarily dropped out when she said she wanted to be "respectful" of the other Sharks, but then sweetened the deal by dropping to 20% equity, to which Frankie happily accepted.
"They loved it and I'm excited to make this the next household brand. I wanted Mark Cuban to be my Shark, my partner, so this is really exciting," Frankie said.
Nathan Kondamuri and Sophia Edelstein were the final entrepreneurs in the tank who asked for $400,000 for 10% of their customizable eyewear product line for kids. Pair Eyewear allows kids to change the look of their glasses by snapping on interchangeable magnetic frames.
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💥 8 PM EST/PST on @sharktankabc 💥 Find out tonight if @sophiaedel and @nathankondamuri will accept a deal with a shark! The only way to find out is to tune in - we can't wait!! Let's wish them good luck! #SharkTank #community #swapthetop #kidglasses #startup #entrepreneurship #innovation #kidsfashion #business #DTC #investors #eyewear #opticals
The concept for the business came from Nathan and Sophia's real life experiences, as they often hated wearing the glasses they were forced to wear as kids due to the limited options available. And while the concept was appealing to the Sharks, the sales weren't as hot. In the last month alone, Pair only brought in $15,000 in sales, which Mark referred to as "horrible."
"I'm not sure I see this as a standalone company. Just my gut feeling," shared Robert, before dropping out. Kevin also went out, saying the sales were "underwhelming." Mark, too, wasn't interested in pursuing a deal with the duo.
However, Lori and Katrina decided to join forces and make an offer of $400,000 for 10% equity plus a $2 royalty for each pair of glasses until the $400,000 is repaid. But the entrepreneurs weren't interested in a royalty deal, as they plan to invest all of their money back into the company. Instead, they countered with $400,000 for 10% plus 2% in advisory shares.
"We want to work with you guys, we just know a royalty deal is so difficult," they said, before countering again with a $1 royalty. Lori and Katrina countered back with a $1.50 royalty, to which they happily accepted.
Shark Tank, Fridays, 8/7c, ABC