In this episode of ABC's Shark Tank, four new businesses Camp No Counselors, Extreme Vehicle Protection, Gladiator Lacrosse and VPCABS compete to see if they can strike a deal with sharks Mark Cuban, Lori Greiner, Kevin O'Leary, Daymond John and Robert Herjavec.
Greiner, John, Cuban, O'Leary and Herjavec are looking for the perfect investment from one of these four new companies. They will hear pitches from each company and decide whether they want to pull out of the deal or battle it out for the best deal.
About Camp No Counselors
If you ever wondered what camp would be like for grown ups, you're not alone. In fact, Adam Tichauer was so intrigued with the idea he created Camp No Counselors. Camp No Counselors works like a traditional camp however, this is strictly for adults. So, while your kids are at camp, so are you. Will the sharks see a need for a camp for adults?
"I needed to recharge, get out of the city, off my phone and just have a fun weekend. I knew that only an outlandish idea would get enough support from my whole group of friends to actually happen - so I rented out a summer camp. What started as a small weekend getaway with my closest friends, quickly became a 90-person event as the word spread," - Camp No Counselors
The ask: $300,000 for 7.5% equity.
How it went down: The pitch was pretty interesting as Tichauer asks them to take a trip back to their days of camp. The business is very self-explanatory and it actually looks like a lot of fun. He also makes it very appealing to the sharks. Greiner thinks it is very interesting and finds out that the company works with summer camps in the off season.
It cost $478 for an all inclusive weekend. Their only overhead is marketing and rental and the average age is 30-years-old. O'Leary says he learned that a business like this sucks and he likes a mint on his pillow. The totals sales were $160,000 and this year they have gross $730,000 and is on track for well over $800,000.
O'Leary says he hates camping and he would never go there so he pulls out of the deal. Cuban says it's not ringing true and Herjavec realizes that Cuban is right. The sharks don't feel like they are necessary. John thinks Tichauer is trying to gold dig. John is not interested in the business and he pulls out of the deal.
Greiner says it is very clever but the evaluation is out of whack and pulls out. Herjavec thinks it is a great idea but doesn't see how his money will add value and pulls out. Cuban thinks it's a brilliant idea but there isn't enough up side. Cuban says he would make a deal for 25% but Tichauer would only do that if all the sharks get on board. Cuban says it sounds fishy and pulls out of the deal. Tichauer goes home without a deal.
About Extreme Vehicle Protection
Kenny Lerner and Matthew Harris believe in their product Extreme Vehicle Protection. If you've ever wanted to zip your car up and forget about the possible dangers that could come to them, that is exactly what Extreme Vehicle Protection is. With all of the car covers on the market, will the sharks want to invest in this product?
"The EVP is the first product of its kind offering storage and vehicle flood damage prevention. With protection from 24 to 36 inches of rising tide and floodwaters, it is designed to keep your car, powersport vehicle, and outdoor furniture safe when the weather threatens your valuable property. Designed for ease of use and can be quickly set up in under 10 minutes with 2 people. Simply choose your vehicle size from our ordering page and start protecting your vehicle today." - Extreme Vehicle Protection
The ask: $50,000 for 20% equity.
How it went down: The ask is pretty low and the pitch is very straight forward but lacks in excitement. They ask Herjavec for a hand in driving the car into the bag. After he drives it in, they zip up the bag and that's it. The bags cost between $250 and $300.
John says he likes that as a car cover as a whole. Herjavec says he bought a product like this years ago. The difference with this product is it takes less time to get the vehicle in and safe. They guys make a great case by using Hurrican Sandy as an example. Cuban doesn't see it as a business that will scale into the 10s of millions and pulls out.
Herjavec doesn't think it is going to work and pulls out of the deal. Greiner is not a car enthusiast and this isn't her market so she pulls out of the deal. O'Leary likes it and says he will give them the $50,000 but wants a $30 royalty on each bag forever. The guys want credibility on their side and John wants to split the business in three.
John changes his deal and says when he gets $200,000 then the royalty will end. John is making a better case and the guys have something to think about. The guys go with John and score themselves a deal.
About Gladiator Lacrosse
At just 15-years-old Rachel Zietz has created a better way to train for a pretty intense sport with Gladiator Lacrosse. Gladiator Lacrosse is a rebounder that helps sharpern your lacrosse skills. This product could be a hit but is there enough of a market out there for the sharks to make a deal with Zietz?
"At Gladiator Lacrosse we know what you need to take your game to the next level because we were founded by a youth lacrosse player who has been where you are." - Gladiator Lacrosse
The ask: $100,000 for 15% equity.
How it went down: The pitch is strong for such a young business owner. Her focus is on the quality of the equipment and the fact that she has experience with these products should appeal to the sharks. She provides a demonstration for the sharks and John elects to try it out.
Zietz started the business when she was 12-years-old and she got help from her parents who are entrepreneurs. Zietz has already paid her loans back and has done $300,000 in sales. She sells her products online, specialty stores and tournaments. Zietz is trusted in the community and puts her name behind it.
The market is over 100 million. Zietz hopes to dominate the entire market and expand. The rebounder costs $249.95 and the goal costs $149.95. Zietz has a college student working for her while she works on her education. Zietz wants to increase her retail distribution and create a sales team. She also wants to increase her product line.
O'Leary says the challenge is Zietz is still in school. He believes that it is a credible product and is really torn but he has to pull out of the deal. Cuban says she deserves a lot of credit but because he doesn't know lacrosse he pulls out. Herjavec doesn't think she needs the money and pulls out. John thinks she should continue to reinvest and pulls out of the deal. Zietz is very professional and poised.
Greiner is humbled by Zietz because she is doing everything right. Greiner pulls out but says she is super proud of Zietz. The sharks tell her congratulations and happy birthday and Zietz goes home without a deal.
Have you ever heard of virtual pinball? Well, Brad Baker is responsible for a new virtual pinball machine called VPcabs. VPcabs features a classic arcade game that has been transformed to meet the needs of today's technological world. Can the sharks support a concept like this one or will Baker be out of a deal?
"VPcabs, Inc. is a fully funded, debt free, American owned and operated company. We have a dedicated manufacturing facility in Cincinnati Ohio, USA and this is what we do full time. Unlike any other cabinet on the market, we stand alone in quality of construction and only use first class materials to construct each cabinet we ship" - VPCabs
The ask: $200,000 fo 10% equity.
How it went down: The pitch finds Baker explaining why pinball has gone digital. Baker does stumble during his pitch but he saves himself and pulls through. All of the sharks rush up to try the game and they all love the game. Baker tells the shark the backstory of how the machines were designed.
He says people were asking him to build the machines. He struggled in the home theater business and almost lost his house. The money he made off of the machines saved his house. The total sales is $750,000. The machines cost $3,000-$9,500 and they sell at trade shows. Baker is making a gross profit of $70,000.
The sharks don't like the cost of the software licensing fee and Baker has not paid himself. Herjavec says he owns 10 pinball machines but Baker's feels better. He doesn't believe that kids aren't interested are in it but Baker differs. Greiner says it is a clever idea but kids have little devices with thousands of games. She doesn't see the business scaling huge and she pulls out.
O'Leary says the business is worth $2 million and it is a break even business. He says it is not investable and pulls out. Herjavec pulls out of the deal. Cuban says he is trying to find a reason to say yes, however, he sees a platform for gaming that is more tactical that joysticks. Cuban says Baker is not changing the game. He pulls out of the deal. John says he may be able to bring value.
He wants to know if Baker can hit the doors he needs instead of making the product. John says he will offer $200,000 for 30% equity. Baker counters with 20% and John counters with 25%. Baker thinks hard but ends up making the deal with John.