Plot

An entrepreneur from Santa Monica, California, introduces an-electric car-sharing service; a monthly membership that makes it easy to book and attend family activities, from an entrepreneur in Chicago, Illinois; a Cambridge, Massachusetts, entrepreneur invents a product that can turn any regular bicycle into an electric bike in under one minute; and a digital baby journal that captures memories through text message, from an entrepreneur in Auburndale, Massachusetts.

In the Tank, several entrepreneurs presented their business ideas. Sharks attending are Mark, Barbara, Kevin, Lori, Chris Sacca

The first pitch was by the team behind "WaiveCar," an all-electric car-sharing service with advertising signage. They sought $500,000 for a 2% equity stake. WaiveCar allows users to share electric cars for free for up to 2 hours, generating revenue through customized ads. Ads can be customized by time, GPS location or any other factor. The company was launched 5 months ago. Car sharing costs $6/hr after the first 2 hrs. Customers can return the car to Santa Monica at any public meter. Car cost $1000/per month to operate. Break even revenues for the business is $1500/car/month and everything over that is profit. They have 4300 users at present. Raised $1.3 million. Mark is out as the ad spend is crazy fragmented and margins are very low. Lori is out as Uber can do this easily. Have 2 advertisers so far. Chris calls them an integrator. Chris says that the guys are conducting an expensive experiment for Uber and they can just afford to wait it out till it works or fails. Chris also points that Uber is worth $63 Billion as it doesn't own any assets. Chris is out as there is nothing proprietary. Kevin offers $500,000 as a loan @12% for 36 months, 4% equity + unsold ad space on cars for free. Barbara offers $500,000 for 10%. The guys raised first seed round at $8 million. Guys counter Barbara for 5%, but she sticks to her ask. Guys haggle with Kevin and shake at $500,000 as loan @12% interest for 36 months, 2% equity and 80% discount on any unsold ad inventory.

Next, Desiree Vargas Wrigley presented "Pearachute," a kid-activity subscription service, and requested $500,000 for a 6% equity stake. Pearachute offered subscription plans, with a 5-pack at $79 and unlimited access for $99. Previously launched the first crowdfunding sites, raised $6 million, and generated $5 million in revenues. Still owns equity in that, but is not involved in managing it. $50,000 revenues in the new business till date and $20,000 in just the last 4 weeks. 600 subscribers at present and that too only in Chicago. Have a lite mobile version for the vendors, who can update their inventory real time on the portal, which is offered to Desiree's customers. Kevin is out as Desiree doesn't have a clear plan to expand in other cities and win in this space. Desiree counts her failure at the previous company (other platforms grew bigger even when she was first) as her strength and says she learned on other people's money. Barbara is out as Desiree quit when the going got tough. Lori is out as it is too early. Chris is out as Desiree is building a 2 sided marketplace and it will be tough to equate the 2. Mark offers $500,000 for 20%. Desiree haggles, Mark counters for 15%. She accepts.

The third pitch came from "GeoOrbital," which presented an electric bike wheel that can convert standard bikes into electric bikes. Dakota Decker and Michael Burtov sought $500,000 for a 5% equity stake. 0-20 mph in 10 secs. 500 W power. Raised $1.26 million on kick-starter and $200,000 on top sold online. Retails for $950. Chris wants to know whether the guys are focusing on converting the old bikes to electric or making new electric bikes. The guys are focused on the wheels and the whole bike. Chris is out as he sees the future as new electric bikes. Mark is out as the bike market is crowded and distribution is hard. The guys want to go after bike fleets as well. Kevin is out as the price is too high. Barbara & Lori are out similarly.

Lastly, Jeff McNeil presented "Qeepsake," a text message service that tracks baby milestones and creates baby books. He requested $350,000 for a 10% equity stake. You can record memories, photos etc and when ready, it will print the memories into a baby book. The book is an ancillary business at the moment not a big revenue generator. Plans go from $40-99 per year. Qeepsake had 40,000 users with a 16% conversion rate to paid users, generating $255,000 in revenues over four months. Jeff is taking a salary. Barbara likes the story, but cant help in this space and is out. Kevin has the Mr Wonderful platform which has wedded couples who will all have kids at some point. Kevin offers $350,000 for 20%. Mark is out as there are no barriers to entry. Lori is out similarly. Jeff counters Kevin for 12%. Chris offers $350,000 for 20%. Jeff counters 14%. Kevin is out. Chris sticks, Jeff needs equity for future rounds and is out.

In an update on "Hatch Baby" from a previous episode, Dave Weiss and Ann Crady-Weiss shared that they had redesigned their smart baby weighing scale based on Chris Sacca's feedback. The product was relaunched at a $99 price point and had since generated $1 million in sales.