The following are actually REAL negotiations between entrepreneurs and investors (Guppies & Sharks). The sharks invest their own money at their discretion. The guppies get devoured into a belly of finance, or spit back into the ocean of hard knocks to fend for themselves. The entrepreneurs must convince the sharks to invest the FULL AMOUNT, or walk away with NOTHING.
THE GUPPY: Mellissa and Ben Fossey
THE COMPANY: Caddyswag
WEBSITE: caddyswag.com
SYNOPSIS: The par 6 is designed to fit inside the shoe pocket of any golf bag.
SEEKING: $60K for 20% stake
PRODUCT/SERVICE: The Par 6 is designed to keep six 12 ounce cans cold for 18 holes without ice, each cooler comes with a customized re-freezable gel pack guaranteed to keep the cans cold.
WHAT'S THE SKINNY?: They are averaging $15K in sales a year from word of mouth. They want to take the investment and order 10,000 units at $3 a piece and take the remainder and put it into an advertising campaign in targeted markets to turn the product over.
STATS: Daymond is out first. He's not a golfer. Kevin Harrington is out because he doesn't think the product has enough punch to get the phone ringing. Robert Herjavec thinks it's a trivial product and it won't sell and he's out. Barbara likes it but thinks it's a small business and she's out. Kevin O'Leary doesn't think he can make money with it and he's out. no one seems interested in the Par 6. The sharks won't nibble or bite. let alone munch. The Fossey's walk out with no investment.
CAME IN SEEKING: $60K for a 20% stake
WALKED WITH: Nothing
GRADE: (Guppy): D-
GRADE: (Sharks): Not Applicable
COMMENTARY: They took the coolers back from the sharks when they couldn't get the investment! LOL. I should give them a higher grade, I feel bad. Oh well, the hell.
"Success is going from failure to failure without a loss of enthusiasm."
- Winston Churchill
- Winston Churchill
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WHAT DO YOU THINK? COULD THEY HAVE GOTTEN THE SAME CAPITAL (OR HIGHER) WITH A LOWER STAKE? WHERE THE SHARKS FAIR IN THEIR NEGOTIATIONS? DID BOTH PARTIES COME OUT ON TOP? POST YOUR COMMENTS AND TEST YOUR NOODLE AT THINKING LIKE A BILLIONAIRE...........
Robert especially is out of touch concerning a 'regular joe' and an afternoon of golf. $6 a beer is not "a few bucks." Non drip slim line Caddyswag is very attractive useful affordable answer to high priced and/or hot drinks.
ReplyDeleteWake up Sharks, everybody doesn't have 5 people scurrying around to fulfill every whim and money to blow. Quit thinking like millionaire's, ALL the time, you insult multitudes.