First into the tank are Curtis McGill and Scott Houdashell of the Eggmazing Egg Decorator, seeking $350,000 for seven percent equity.
Eggmazing Egg Decorator is a mess-free solution for coloring eggs. According to their website, the invention “utilizes a patent pending design that provides a new and creative way to decorate Easter eggs with the simple touch of a colorful marker.” Kids simply place an egg into the spinning machine and decorate it by placing the marker on the edge of the egg—resulting in a festive, colorful design. The product costs $29.99.
Kevin O’Leary thinks it’s a bit too seasonal and questions how they would make any money. Surprisingly, they sold 10,000 units in 23 days for a total sales of $150,000. They have more than a million dollars in purchase orders. They also have a sister product: the Treemendous Ornament Decorator for Christmas.
O’Leary likes the Easter egg decorator, but doesn’t like the ornaments or the high cost. He decides, however, to offer $50,000 for 33 percent, in addition to $300,000 as a loan at 13 percent interest. He then changes it to 11 percent. Barbara Corcoran doesn’t like their Christmas idea either but offers $350,000 for 15 percent—half in cash and half as a line of credit at the lowest market interest rate. O’Leary then updates his offer to $300,000 as a loan at seven percent interest, in addition to $50,000 for 20 percent.
Lori Greiner then jumps in with an offer of $100,000 for 12.5 percent, with the remainder as a line of credit at seven percent interest. The duo says they don’t want to go above 10 percent equity. Robert Herjavec goes out because he doesn’t view it as a whole company.
Corcoran updates her offer to $350,000 at the lowest interest rate with a credit line at 10 percent, while Greiner also updates her offer to $350,000 for 10 percent equity with a $2 royalty until the interest is recouped. In addition, she will give $1 to any charity of their choosing. Mark Cuban also goes out.
Herjavec encourages them to take Corcoran’s offer due to Greiner’s royalty. The duo ultimately accepts Greiner’s offer.
Each week on “Shark Tank,” budding entrepreneurs have the opportunity to pitch their emerging businesses to multi-millionaire and billionaire investors, known as sharks: Mark Cuban, owner of the Dallas Mavericks; Daymond John, fashion mogul and founder of FUBU; Kevin O’Leary, self-proclaimed Mr. Wonderful and founder of O’Leary Financial Group; Barbara Corcoran, real estate maven; Lori Greiner, queen of QVC; and Robert Herjavec, technology guru and founder/CEO of the Herjavec Group.
Philanthropist and Virgin Group founder Richard Branson, Spanx founder Sara Blakely, Skinnygirl Cocktails founder and Real Housewife Bethenny Frankel, Vitamin Water founder Rohan Oza and former MLB player Alex “A-Rod” Rodriguez are also slated to appear as guest sharks this season.
“Shark Tank,” which is based on “Dragons’ Den,” is produced by Mark Burnett and first debuted in 2009. To date, the sharks have invested more than $100 million in various companies after engaging in numerous bidding wars and shark fights. A new episode airs each Sunday at 9 p.m. on ABC.
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Author: Erica Abbott