Plot

A new batch of entrepreneurs pitch to the Sharks for investment dollars.

The panel of Sharks consists of Mark Cuban, Daymond John, Kevin O'Leary, Barbara Corcoran, and Robert Herjavec. Mark Cuban, who started as a paper boy, has become a media mogul and is the owner of the Dallas Mavericks basketball team.

First entrepreneur, Jonathan Boos, presents his product called "Wurkin Stiffs" magnetic collar-stays. He seeks $85,000 in exchange for a 10% stake in his business. The product has generated $500,000 in retail sales and is expected to reach $1.8 million in the next 12 months. Jonathan is not in need of money but is looking for a strategic investor. Mark and Barbara decide to opt out as they cannot provide the assistance Jonathan requires. Kevin O'Leary offers $100,000 for 30% equity and a 14% royalty. Jonathan is interested in Daymond's involvement but feels ignored, leading to an argument. As a result, Daymond decides to leave the deal due to Jonathan's dismissive behavior. Robert Herjavec makes an offer of $100,000 for 30% without any royalty, to which Jonathan counteroffers $200,000 for 30%. O'Leary proposes $100,000 for 20% with a 14% royalty, while Herjavec offers $100,000 for 25%. Barbara re-enters the negotiation with an offer of $100,000 for 20% and requests Daymond's forgiveness. However, Daymond demands 40% equity. O'Leary makes a final offer of $100,000 for 15% with a 14% royalty. Jonathan decides to go with Barbara and Daymond, rejecting Daymond's previous counteroffer.

In an update on a previous episode, Classroom Jams (Episode 102), Kevin O'Leary brings the founder to Houghton Mifflin, the largest education company globally. They make a presentation to the entire board, which agrees to an extended market pilot followed by a national roll-out.

The next entrepreneurs, Megan Reilly and Sarah Nuse, pitch their franchise business called "Tippi Toes," a children's exercise program. They request $30,000 for a 5% stake. Tippi Toes aims to combat childhood obesity and has sold seven franchises so far. Each franchise costs $30,000 to join, primarily attracting stay-at-home moms. The business generated $268,000 in revenue and $29,000 in profits over the past 12 months. A minimum monthly royalty fee of $1,000 applies. Kevin O'Leary is impressed and praises the two women as real "sharks." Daymond, however, opts out, feeling that he cannot contribute any unique strategies to help the entrepreneurs. Megan and Sarah express their desire to launch DVDs and seek a shark's assistance. Robert Herjavec advises against rushing ahead and decides to opt out. O'Leary offers $50,000 for 51% equity but excludes the DVD aspect. Barbara counters with an offer of $60,000 for 20%. The entrepreneurs then counter Mark Cuban's involvement at $100,000 for 30%, which Mark accepts.

Entrepreneur Shawn Davis presents his business, "CBS Foods," which specializes in shrimp-based burgers. He seeks $200,000 for a 25% stake. The company has made sales of $30,000, with a production cost of $0.87 per burger and a selling price of $1.63. The profit margin for all CBS Foods products is approximately 63%. Although Shawn has secured commitments from two supermarkets, no orders have been placed yet, potentially worth $87,200. Mark, due to his lack of experience in the food business, decides to opt out. Barbara, who dislikes shrimp, also opts out. Kevin believes that the profit margins should be higher to account for refrigeration costs as volumes increase and raw material prices rise, leading him to opt out as well. Robert is not fond of the valuation and decides to opt out, along with Daymond.

James Martin pitches his product called "Copa-Di-Vino," a proprietary container for single servings of wine. He seeks $600,000 for a 20% stake. James owns a winery that produces 2,500 cases of wine per year. He has three business models: licensing to another bottler, bottling for another wine producer, and selling his own wine using the proprietary packaging system. Currently, the sales come from his own wine. Over the past five months, Copa-Di-Vino has generated $500,000 in sales and received $800,000 in orders. The packaging is patented. Kevin is skeptical about the wine's quality, considering it more suited for the mass market rather than the premium segment. He suggests selling the patent to other wine companies and not being involved in the packaging business. Daymond feels it is too early for him to invest and opts out. The Sharks, including Mark and Robert, propose separating the patent from the wine business and offering only the patent. When James hesitates, both Robert and Barbara decide to opt out. Kevin offers $600,000 for 51% ownership of the patent, but James is reluctant. Mark decides to opt out, and James expresses his desire for $3 million for 51% of the patent. Kevin decides to opt out as well.

Note: The creator of Copa-Di-Vino would return to the tank in the future (Episode 311) to pitch his product again.