'Shark Tank' Recap: The DriveSuit and Ice Chips Candy, Episode 408
This week on Shark Tank four pitches are delivered; The DriveSuit, PC Classes Online, Revestor, and Ice Chips Candy. Each week the sharks (Mark Cuban, Kevin O'Leary, Barbara Corcoran, Daymond John, and Robert Herjavec) are offered an opportunity to either invest their own money into a new business or infuse money into an existing company to expand it.
The first product up for grabs is the DriveSuit presented by Drew Beaumier. The DriveSuit is a wearable recreational device, like a human transformer. He is asking for $150k for a 20% stake in his company. These devices can reach speeds of up to 10 mph. Drew has not begun selling the DriveSuit yet because he's waiting on the final patent. He has won five contests and made $25k. Kevin suggests selling the patent to toy manufacturers and he could get 57% royalty. Barbara is concerned about the liability issues and she bows out. Mark offers $150k and will work with Drew to create a business, but he wants 40% of the company. Kevin offers $150k and wants 30% equity contingent on a toy company deal. Drew needs to make a decision and he decides to take a chance with Kevin.
Next up in the Shark Tank is David Cox. He presents his business pitch, PC Classes Online. He wants $150k for 15% equity in his company. Bruce Vilanch, an Emmy-winning actor, is his demo student. David says he is targeting the 50 and over PC user. Kevin calls David a bozo because he doesn't understand the difference between bundles and add-ons. David says he has sold about $35k to date. He uses free teaches for his intro class. Then the teachers try to offer the add-on, one-on-one classes, and PC Classes Online keeps 30% of the revenue. None of the sharks bite and David is on his own. They all feel that the business plan is 30 years too late. Revestor may be the next big real estate search engine, at least that's what Bill Lyons thinks. He is asking for the sharks to invest $250k in his business for a 10% stake in the company. He equates his business to online stock trading or online car sales. They have partnered with two companies to make assumptions for future value. They are in ten cities so far but he is unable to provide revenue. He provides MLS and the foreclosure/auction listings. The cost for the service is $99/month. The sharks drop out one by one. No deal for Bill today. They don't see a value in the company.