10/9/15, 9 pm (EST), ABC
This week continued the guest shark theme this season is touting. After the so-so guest in Ashton Kutcher, music manager Troy Carter joined the sharks this week.
The first company in the tank is Foot Cardigan, a subscription-based sock company. The concept is simple: for $9/month (other subscriptions are available), you receive a random pair of socks every month. The owners are looking for $250,000 for 10% investment. With subscription-based services for almost anything imaginable these days, this seems like an opportunity all the sharks would jump on. Lori doesn’t think they’ll change anything about the business model, so she goes out. Several offers come from the other sharks before they land a deal with Mark and Troy of $250,000 for 20%.
Up next is Wayne Johnson, with his app for valets, ValPark Mobile. He is seeking $300,000 for 20% of the company. The idea seems like one that would really take off: consumers can use the app at restaurants or clubs where valet is available. They are able to pay online with a secure profile. They can also notify the valet when their bill is paid so their car is ready when they walk out. While he’s currently located in the tri-state area of Washington D.C., Virginia and Maryland, he’s hoping to scale up, though he knows copy cats could come along with the ability to scale more quickly than him. Carter is worried about the scalability and goes out. Mark and Kevin go out for the same reasons. Lori’s concern is Wayne has a partner who is invest in 46% of the company, so she goes out. Daymond sees this as a potentially valuable service, but wants someone with technology and software experience go in with him. Mark and Troy both decline so Daymond doesn’t give an offer. Wayne walks away empty-handed. I’m really surprised how this deal went down. I figured the sharks could use their experience to help scale this product to other major cities, but they must know something I don’t.
Next in the tank is Two Guys Bow Tie, who make bow ties, lapels and fedoras using various types of wood. They are looking for $150,000 for 10%. Troy immediately doesn’t see it working for him and goes out. Kevin wants to include the business in his “Platform of Love” wedding service, and offers them $150,000 for 15%. They are interested, but want someone who’s familiar with this area. Daymond offers them $150,000 for 20%. Mark and Lori go out, knowing that Daymond is a good person to partner with. They would like to partner with Daymond and Troy for $150,000 and 30%. Daymond counters for 20% and 5% royalty. Kevin changes his offer to 10% for 7.5% royalty. Troy goes out. Daymond says $150,000 for 20% and 10% royalty until he’s paid back. They counter for 17.5%, and the deal is made.
Last up is Nerdwax, a beeswax balm that prevents glasses from slipping off your nose. They want $80,000 for 20%. They are looking to scale, and need a shark’s expertise to do so. They sell online only, and have had spikes when mentioned on popular websites. Lori and Daymond go out because they don’t see this as making money. Most of the sharks are concerned that they sell a tube too large, and don’t see return customers for 8 months, which is not a good strategy. The only shark to make an offer is Troy, offering $80,000 as a loan until $120,000 is paid back. The family doesn’t like this since they’re not in debt currently so walk away without a deal.
- Foot Cardigan could definitely grow with Daymond’s help. Subscription-based services are really big right now, so they’re getting on the bandwagon in a good time.
- ValPark Mobile could be the next big thing. Only time will tell if the sharks made a huge mistake in this investment.
- Two Guys Bow Tie probably would’ve been a good hit with Kevin’s “Platform of Love’, but Daymond’s expertise in this industry will likely be better in the long run.
- Nerdwax seemed to make the smart move in declining the offer. Even Mark and Daymond told them they would be making a mistake to take any offers. Hopefully they’re able to grow and succeed.
Yet another batch of pretty interesting products. Though only half got deals, I could see myself purchasing or using all four products. Good luck to all the companies.