Hot Tot Haircare and Game Face Company Land Great Deals
Founder Doug Marshall presented the Game Face Company. Doug’s business creates full-face masks for sports games, costumes, and more. Game Face makes full-face masks that, similar to temporary tattoos, easily apply to the face for one-time use and can be removed later. Doug was looking for a $450,000 investment in exchange for 25% stake in the company. All Sharks love margins but when Doug drops his requirement for a $100,000 salary few Sharks drop off. Cuban and Lori are the ones that see the potential in Doug’s business. Mark even offers to buy the entire company but eventually the deal is struck to where Mark and Lori offer $450,000 for 35%, $80,000/year salary for 3 years, and 10% royalty until the investment is recouped. The deal is done.
Second into Shark Tank are best friends Dan Grimm and Brant Myers. They presented their company Arkeg, and were asking for a $100,000 investment in exchange for a 33% stake in the company. The Arkeg was born from the duo’s love of arcade games and beer, and it combines the two into a unique arcade game that doubles as a kegerator. The Arkeg can be used for beer, wine, root beer, or a number of other beverages. While the Sharks were amused by the innovative concept, they just can’t get to the valuation. Dan and Brant walk away without a deal.
Third in to the Tank was Dan Rothwell with Dura-Tent, a tabletop tent that can cover food to prevent insects from getting in during picnics. Dan asked the Sharks for a $50,000 investment in exchange for 30% of his company. Although the Sharks like the concept, Dan quickly confuses sharks by confusing his sales figures. Dan walks out of the tank with no deal.
Last into the tank was Megan Gage, founder and owner of Hot Tot Haircare, asking for a $50,000 investment in exchange for 15% equity in her company. Hot Tot Haircare creates professional hair products free of harmful chemicals, designed for toddlers and children. In 15 months, Megan has about $20,000 in sales, but she’s also gotten $7,000 in purchase orders in just the last 12 days, which impresses the Sharks. Mark Cuban gets excited and makes an offer after he learns that Megan’s average margins are 142% wholesale, 284% retail. He offers $75,000 for 40% stake, and surprisingly to all other sharks, gets it accepted before others even make an offer.