Heart Pup Wins Sharks' Hearts and Gets the Deal
Shark Tank Season 6 episode 3 started with Ray Phillips and Alvin Uy, asking for a $260,000 investment in exchange for 10% equity in their company, SoapSox. Ray came up with SoapSox in hopes that he could make bathtime fund for kids by giving them a loofah-like animal that could easily transition into the tub. In just 6 months, SoapSox has reached $300,000 in sales and is poised for success with a Nordstrom rollout, and design and utility patents pending. The bathtime toys cost $3.66 to make, and they’re sold for $19.95, meaning the men are projecting $576,000 in sales by year and, and $2.4 million next year. While the Sharks love the product, they’re concerned about the high cost to manufacture and the product’s high price point. Still, Daymond is first to make an offer and he’s in at $260,000 for 33%, billing himself as the third equal partner in their three musketeers trio. Rick and Alvin counter Daymond at 15% for $350,000, but he’s not budging. Lori first says that there are too many unknowns with the patents not yet approved, but then asks the men if they’d consider being bought out by her and Robert for $1 million. The men are adamant that they are willing to do the work and don’t want to give up on their company. With no reconsideration they decline both offers and leave tank without a deal.
Second presenter that night was law student-turned-entrepreneur, Anastasia Heart, owner of Heart Pup. Anastasia entered the Shark Tank looking for a $25,000 investment in exchange for 10% equity in her handmade dog carrier company. Anastasia came up with Heart Pup while in law school, and she has since handmade 980 italian cashmere units which she sold for $138 apiece. The Sharks are loving her margins (units cost only $16 to produce), and her $135,000 in sales to date are nothing to sneeze at. Anastasia plans to put the Sharks’ investment into factory production so she can work on expanding her business. While they Sharks appreciate her success to date, her non-traditional business sense leaves the Sharks concerned about actually working with her. Kevin jokingly (or is he?) offers $25,000 for 50%, under the condition that “the dog bites it” because he hates rat dogs. Daymond finally makes an offer of $50,000 for 40% and Anastasia accepts his offer.
Next are two modern-day ninjas, Dustin Berk and Ken Haton, seeking $60,000 investment in exchange for 30% equity in their company, NinjaCards. NinjaCards are like darts, but with plastic-coated playing cards. A full NinjaCards kit comes with a pack of special cards, along with a special styrofoam-like board for playing all types of dart-style games. To date, they’ve sold… 100 units. They guys have struggled with getting into an exclusive licensing agreement that didn’t quite pan out, but now that they’ve bailed from the agreement, they’re hoping an investment from the Sharks will take NinjaCards to the next level. The Sharks are concerned that the guys just haven’t shown hustle in trying to find a distributor, leaving them with serious reservations about the guys’ ability to get things done. That’s when Sensai Wonderful (Kevin) steps in to say what all of the Sharks appear to be thinking: “take this company behind the dojo and throw a poison dart into it.” He has a way with words but it helps little and no deal is made.
Last into the Shark Tank are Tyler Freeman and Lei Yu, asking for a $150,000 investment in exchange for 5% equity in their wearable technology company, DrumPants. DrumPants are a wearable bluetooth enabled drum kit that allows wearers to play percussion beats by tapping their legs, stomach and chest. Then the Sharks heard that word they hate the most: pre-revenue. Tyler and Lei launched DrumPants with Kicktarter, and they’re now projecting that they’ll hit $220,000 in profit by year-end. The units will sell for approximately $99-229 apiece, and the duo has has provision patents on the technology, which Tyler says is the real sweet spot in this potential deal. Lori says DrumPants is too niche of a market, which seems to be a frequent concern of hers so far this season. Robert is interested, but wants to see DrumPants reach the next step in its journey. He makes an offer of $150,000 for 20%, hoping that getting in early will get him a piece of the technology as it continues to evolve. Tyler asks if there are any other offers, and Daymond offers up $250,000 for 25% of the company, but he wants to pursue this venture as a pure licensing play. In a risky move, Tyler and Lei leave the tank to discuss, and they privately express their concerns that Robert doesn’t understand the technology. They return to the tank and counter Robert at 15% for $150,000, but he’s not budging. Tech mogul Mark makes his opinions known when he says the duo is plagued by paralysis via analysis, and that they lack the decisiveness to advance their business. Feeling snubbed, Robert rescinds his offer and Tyler and Lei quickly try to win him back. But it’s clear Robert’s mind is made up and that they have no chance of changing it, despite their pleas. With no offers founders walk out of the tank.