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.
"Money was never a big motivation for me, except as a way to keep score. The real excitement is playing the game."
-Donald Trump
CHECK OUT THE SHARK FINS SECTION FOR ARTICLES AND INTERVIEWS. ALSO CHECK OUT THE SHARK TEETH SECTION FOR HELPFUL TOOLS OF THE TRADE.
THE GUPPY: Joe Moore
THE COMPANY: First Defense Nasal Screens
WEBSITE: filteryourlife.com
SYNOPSIS: A unique solution to protect against germs and allergens
SEEKING: $500,000 for a 10% stake
PRODUCT/SERVICE: A self-adhesive peel and stick nasal screen
WHAT'S THE SKINNY?: First defense nasal screens are the first and only, lightweight non-asserted, almost non visible nasal screens ever invented and clinically proven to reduce the inhalation of allergens, pollens, pollutions, moles, viruses and more. He has a contract with a Saudi Arabian distributer who guarantee's to order 1.5 Million sets. Guaranteeing $8 Million over next 6 years. He has a patent pending in United States, Canada, and Europe for 3 years. He needs the investment to make the order and keep producing it. He already has about $1 Million invested in it from himself, friends and family.
BUSINESS MODEL/HOW DOES IT MAKE MONEY?: He has an order for $8 MILLION over the next 6 years. 1.7 Million units sold. Need we say more?
STATS: At first glance the waters appear very still and calm when this guppy swims into the tank, but who would ever expect what appears to be a band-aid with holes in it for your nostrils to turn these turbulent waters into an all out shark-feast fit for a king. Barabara is the first shark out due to the cost of educating people about the product. Kevin smells money in the water and is the first to take a nibble with an offer of $500K for a 20% stake + a 15% Royalty on every unit sold until he recoups his $500K. Mark wants to work together on Kevin's offer and decides to join him and split it. Daymond also smells cash money floating in the tank and jumps in with an offer of $800K for a 30% stake with + 10% royalty. No sooner than that offer leaves Daymond's lips Kevin offers to buy the whole company for $1 Million as the waters begin to shake. But this guppy also has an appetite like a shark and Joe politely turns down the million dollars. Daymond comes back and offers $1 Millon for a 30% stake + 10% Royalty until he recoups his million. Robert wants to also buy the company and immediately jumps in with an offer of $2 Million + 10% Royalty (to Joe) for a 100% stake. Joe turns down the $2 Million dollars. Robert counters with $4 Million!!! The biggest offer in Shark Tank history! But this is not your average guppy! Joe counters and ask Robert to raise his offer to $5 Million + a 15% Royalty. Robert refuses to give him the extra million dollars and drops out. That order for $8 Million over the next 6 years has made a ferocious appetite for the Bullshark, because at this point, Kevin asks Joe to leave the room and excuse them for a moment to bring his competitor Daymond into the deal, instead of letting it go any further and get out of control. When Joe returns Daymond has joined Mark and Kevin by raising the offer to $750K with a 30% stake + a 10% Royalty in perpetuity. Joe counters and ask them to raise the offer to $1.2 Million but the Sharks advise him that they will not loose their equity if the company needs more money and that he doesn't really need any more cash. Joe decides to get some season tickets to the Dallas Maverick's games thrown in for good measure before he agree's to do the deal. Mark agree's and Joe walks away with the investment.
CAME IN SEEKING: $500K for a 10% stake
WALKED WITH: $750K for a 30% stake + a 10% Royalty
GRADE: (Guppy): A
GRADE: (Sharks): A
COMMENTARY: This one kind of crept up on me. Who would of ever thought a guppy would walk into the tank and have the balls to turn DOWN $4 Million Dollars in cash!?! But this was not your average guppy. He obviously researched his product, knew his market and realized there were BIGGER fish to fry in the long haul (no pun intended). He managed to get more money than he asked for and still own 70% of his company. Great job Joe! You are better than me my friend, ..... because I'm not sure I would have had the cahunas to turn down a quick $4 Milli! LOL. You've just earned your teeth. You're about to be a SHARK!
"Money was never a big motivation for me, except as a way to keep score. The real excitement is playing the game."
-Donald Trump
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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