Pipcorn Lands Deal on Shark Tank Season 6 Episode 9
Shark Tank Season 6, Episode 9 started with John Smith seeking $100,000 investment in exchange for a 10% stake in his company Storm Stoppers. Company makes easy-to-install custom sized window covers that protect windows in case of storms. A Storm Stopper kit goes for about $2,500 for a full house, compared to about $500 for the amount of plywood used to seal an entire house. Though, as John demonstrates, Storm Stoppers protect windows much better than plywood does. To date, John has done about $5.5 million in sales, including about $200,000 in the last 12 months, as compared to $1.2 million in ’05-’06. While John defends his low sales claiming that his sales are closely tied to the economy and weather, the Sharks aren’t buying it. Because of low sales all Sharks are out and no deal is done.
Second entrepreneurs that night are Jen and Jeff Martin, presenting Pipcorn. Jen and Jeff - brother and sister came in asking for a $200,000 investment in exchange for 10% equity in their miniature sized popcorn company. Pipcorn is GMO and gluten free vegan organic popcorn that comes in flavors like sea salt, rosemary, truffle and white cheddar. Last year, the Martins did $200,000 in sales in their 40 stores, including 18 Whole Foods stores. Currently they sell bags of Pipcorn for $4.99, and each bag costs approximately $1.88 to manufacture, a cost they’re working to bring down to $0.92 by working with a co-packer. Pipcorn is projecting $440,000 in sales this year, and while the Sharks love Jen and Jeff and the product, they’re still struggling with the valuation. First to make an offer is Robert, who’s in $200,000 for 20%, which the Martins count at $200,000 for 10%, their original ask. Barbara says she agrees with Robert’s valuation, but she believes in the duo and is willing to offer $200,000 for 10%, under the contingency that she gets 10% of any distribution the Martins take out. Robert then amends his offer to $200,000 for 10%, reasoning that the Pipcorn is going to make it big and kill it (his words). The Martins ask Barbara if she’ll match Robert’s offer, but she’s not budging. Recognizing Barbara’s expertise in this niche Jen and Jeff accept the offer.
Third presenters that night are Judy and Bobby Edwards - mom and son. They asked the Sharks for $350,000 in return for 5% equity in their company, Squatty Potty. The Edwards explain that toilets force users to sit in a position not conductive doing their business, and that their squatting installation helps users get into a position that allows for smoother sailing. Still, the Sharks call their $7 million valuation “a lot of doo doo.” The Edwards can back up their valuation with sales, though, including $1 million in year one, $2.7 million in year two, and $2 million in the first half of year three. They’re projecting $7 million this year, which will result in earnings of $1-1.5 million. The Edwardses are hoping that a Shark’s investment will help them increase production immediately, in order to “make a crapload of money.” Kevin is first to make an offer of $350,000 in exchange for 10% equity. Judy and Bobby counter back at $700,000 for 10%, reasoning that “on the back end it’s gonna be worth so much more.” Lori makes the next offer of $450,000 for 10%, which Bobby counters at $500,000 for 10%. None of the other Sharks are interested, so it’s decision time and the Edwards decide to go with Lori’s offer— deal!
Fourth and last entrepreneur that night was Chef Heidi Lovig, asking for a $125,000 investment in exchange for 20% equity in her company, Heidi Ho Organics. Heidi makes an organic plant-based cheese that is completely dairy-free and made from nuts, seeds, veggies, herbs and spices. She was inspired to make the cheeses after reaching nearly 300lbs by the time she graduated from high school, and realizing that she needed to make healthier swaps in her eating habits. If the Sharks’ reaction is any indication, the cheese is a delicious substitute for real cheese. Heidi’s sales are $140,000 in the last 12 months, and $245,000 in sales overall. Lori is first to make an offer of $125,000 for 30%. Kevin, resident Shark Tank cheese connoisseur says he can’t do the deal or else he might lose his membership in his fancy French cheese club. While Heidi wants to look to see if any of the other Sharks will make her an offer, Lori says it’s a risky move to look elsewhere with Lori’s offer already on the table. With no other options Heidi accepts Lori's offer.