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: Brian Spencer
THE COMPANY: Vurtego
WEBSITE: vurtego.com
SYNOPSIS: Vurtego pogo stick is the next evolution in action sports
SEEKING: $500K for a 20% stake.
PRODUCT/SERVICE: Vurtego is a niche market pogo stick re-invented to jump at depth-defying heights and performing amazing stunts.
BUSINESS MODEL/HOW DOES IT MAKE MONEY?: Sold about 7,000, it retails for $330 and costs about $100 to make it. Brian wants to go mass market.
STATS: Hurry-hurry, step right up! Guppies hopping up out of the water on pogo sticks flipping in mid-air like dolphins turning the tank into Sea World! Hard to believe that a good product such as this was passed up. Barbara is the first shark to back out partially because the product isn't mother approved. Robert thinks $300 is cheap for a specialty product. Vurtego wants to go mass market, but the sharks seem to all collectively think he should increase the price 100% up to $600, which was Kevin's suggestion, and gain control of his niche market. The sharks don't think that Brian really needs them but gave him some great advice about his marketing strategy. Mark is out, Kevin is out, and so is Daymond and Robert. Like dominoes they all drop. Brian walks away with no investment.
CAME IN SEEKING: $500K for a 20% stake.
WALKED WITH: Some great advice.
GRADE: (Guppy): C -
GRADE: (Sharks): Not Applicable
COMMENTARY: Although Brian didn't walk away with the investment he had hoped for, he walked away with some great advice on how to market his product efficiently. He failed to secure hid investment but he was pretty prepared and seemed to know his product and competitor well enough to survive.
“Very seldom does anyone create an idea or anything else absolutely new. Nearly everything known to civilization is but a combination of something that is old.” - Napolean Hill
CHECK OUT THE SHARK FINS SECTION FOR ARTICLES AND INTERVIEWS. ALSO CHECK OUT THE SHARK TEETH SECTION FOR HELPFUL TOOLS OF THE TRADE.
CHECK OUT THE SHARK FINS SECTION FOR ARTICLES AND INTERVIEWS. ALSO CHECK OUT THE SHARK TEETH SECTION FOR HELPFUL TOOLS OF THE TRADE.
WHAT DO YOU THINK? COULD HE 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...........
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