Shark Tank season two recap: All the highs and lows – StartupSmart
One week ago, viewers of Channel Ten’s Shark Tank were treated to a jam-packed episode where every entrepreneur walked out of the tank with a deal.
Sadly, that was the last episode of the shows’ second season, and with no set date for season three viewers could be waiting a while.
Season two of the reality show for entrepreneurs saw a new shark enter the tank, with Dr Glen Richards, the vet behind the Greencross and Petbarn empires replacing real estate chief John McGrath. Richards joined returning sharks Naomi Simson, the founding director of RedBalloon, Boost Juice’s Janine Allis, tech investor Steve Baxter, and Andrew Banks, co-founder of recruiting giant Morgan and Banks.
If the season-end statistics from Channel Ten are anything to go by, Allis is an investment powerhouse: she made 11 deals during season two, worth a whopping total investment of $2.3 million. That’s $600,000 more than any other shark.
Richards was next in line, with 13 deals made for a total investment of $1.6 million, followed by Baxter, with 13 deals worth $1.3 million. Simson made 10 deals to the tune of $1.1 million, while Banks also made 10 deals, worth a total investment of approximately $851,000.
Despite topping the list, Allis’ offer-to-deal conversion percentage was lower than some of the other sharks at 64%, slotting in third behind Baxter at 72% and Richards at 76%.
Each sharks’ investment total also includes beer, which is a reference to entrepreneur Fred Keizer who asked for a case of beer in return for his road-safety sign invention. He walked out of the tank with five cases.
We’ve laid out the done deals and the dead deals of this season of Shark Tank.
The done deals
The first successful deal for the season was with three sharks – Allis, Baxter and Banks – who combined their forces to invest in custom sportswear business, On The Go Custom Sportswear. With an offer of $600,000 for a combined 35% stake in his business, founder Mick Spencer walked out a happy man.
In the same episode, a full house of sharks invested in Linton Harris’ Sharknado production, going for a combined investment of $475,000 for a 50% equity stake.
Later in May, Her Fashion Box and its founder Kath Purkis scored a $200,000 investment deal from Allis and Banks in exchange for 20% of her business.
In the same episode, car sharing service Car Next Door coaxed Baxter into a deal, offering the shark an additional $100,000 worth of equity for 30 hours of mentoring over three years. Despite saying he would have given the business his time anyway, Baxter offered a $300,000 investment for 4% stake in the business.
Another shark duo, this time Baxter and Banks, teamed up to invest $100,000 for a joint 30% equity stake in outdoor adventure and team-building company The Adventure Group. Founder Michael Donaldson said he “had the advantage of watching season one to anticipate the questions,” and was very happy with the investment.
2Shu is a shoe which can be converted between thongs and closed-toe shoes, pitched to the sharks as ‘the most Aussie invention ever.” Allis decided to back ideas man Matthew Gillet to the tune of $150,000 for 25% of his business, which also secured Allis equity in any of Gillet’s future ideas, a unique outcome in the tank.
Beer delivery company Friday Beers secured the first deal of June with Baxter, locking in $25,000 from the shark for 10% equity. All the sharks were impressed with the Friday Beers team, with Allis saying “these guys were having a ball with their business”.
Bernie Sharrad’s CapHat, a hat that provides sun protection for users’ ears and necks, scored an investment with Baxter and Banks. The sharks offered two $60,000 loans to Sharrad, with the option of securing a 15% equity stake in the business in the future.
Briella Brown’s fashion business Your Closet enticed a deal from the two female sharks: 30% split equity for an $80,000 investment. Brown told SmartCompany her experience in the tank was “priceless” despite her initial nerves.
App-hardware hybrid AUUG motion synth, which transforms a smartphone into a movement-controlled musical instrument, secured a deal with Banks, giving him a 10% stake for a $50,000 investment. In that same episode,a catering company called YouChews locked in a $125,000 investment from Steve Baxter for a 12.5% equity stake.
Towards the pointy end of the season, Naomi Simson divined a $100,000 investment for 20% equity in NewAgeStore.com, a website that generates horoscopes and star signs for users. With Simson’s support, company founder Jen Laurence said she was contemplating “spiritual world domination”.
Simson also decided that easy-to-use KISA phone was a good bet for investment, offering up a $100,000 loan and matched investment for 10% of the business. The phone’s co-founder Dmitry Levin credited Simson, telling SmartCompany working with her has been “incredible.”
In the penultimate episode of the season, Joanne Bowskill and Holly Boal swam with the sharks and left with a deal, coming away with a $150,000 investment from Richards for 20% equity in their kids’ cooking business.
Finally, Shark Tank’s final season two episode saw every entrepreneur walk away with a deal. First up was Lil’ Fairy Door, a children’s toy company, who divided the sharks but walked away with an offer from with Richards and Simson of $325,000 for 20% equity, and the option of a $325,000 loan.
Up next was self-contained vegetable and herb planter Vegepod, with founder Matt Harris agreeing to Simson’s deal of $75,000 for 10% of the company, along with a $150,000 loan. In her post-show blog, shark Janine Allis said that “the margins were actually quite good and [Harris] had a strong vision”.
Torque Safe, a business that manufactures and sells safety switches for dangerous hydraulic torque tools, secured the terrific shark trio of Baxter, Banks and Richards. The three split a $500,000 investment for 50% equity in the business.
The final deal done this season was one of the biggest, with Allis and Richards teaming together to tackle a $700,000 investment for 33% split equity. The investment was in OneWorld, a company that produces and designs furniture, and already records $10 million in revenue.
These were the deals that made it through the tight sieve of the sharks, but there were entrepreneurs that didn’t make it out of the tank with a deal. SmartCompany looked at a number of these over the course of the season.
“Not for me I’m afraid”: the deals that didn’t make it
Episode eight featured the Tank’s youngest ever entrepreneur, Isabella Dymalovski,who founded cosmetic and skincare product Luv Ur Self at the age of 13. Despite loving the product, the person, and the pitch, the sharks were concerned with Dymalovski’s ability to balance school and the business.
“If you were 18 years old and just finished grade 12, I would offer you an investment in a heartbeat, because you are very impressive,” said Baxter.
Banks promised to use his connections to get Dymalovski’s products in stores, which he succeeded in doing. Now, Luv Ur Self is in over 300 Priceline stores, with Dymalovski telling SmartCompany “the whole thing has been a challenge and an experience, and the key thing was to keep trying and persevere”.
In one of Shark Tank‘s more emotional episodes, the sharks passed on a deal with Carhood, a car rental service. The business sought an investment of $500,000 for an 11% stake in their business, but sharks were concerned with the numbers, as the business was projecting its revenue would increase to $12 million by 2018.
Founders Steve Johnson and Christian Schaefer were upset by the shark’s lack of interest, but the determined founders say they have gone from strength to strength since appearing on the show.
Finally, one deal that was made on the show was between Richards and Hit With Me founder Sam Begg, to the tune of $50,000 for 50% of the business. However, when we spoke to Begg eight months after the episode was filmed, he revealed the deal did not go through as he was uncomfortable with the equity structure.
“Glen’s offer was a vote of confidence for my business which was great,” Begg said. “I’ve had a number of meetings with Glen, he offers great mentoring and we have a great relationship.”
Shark Tank has opened up casting for the show’s third season, though there’s still no word on when or if it will run. Naomi Simson concluded the second season with a blog post, which outlines some of the things she looked for in pitches during season two.
“We have two resources: time and money. And when we add the right mix of both then the outcome for the business we make an offer to should be amplified,” Simson said.
“There are plenty of amazing businesses, but I always say ‘is this the best use of my time and money or is it better spent elsewhere and can I count on the founder to do what they say they are going to do?’.”
Here are the five things Simson looks for in pitches:
- What problem is the product/service solving?
- How many people have that problem?
- Where are those people with the problem and how are they accessed?
- What will it cost me (time and money)?
- What return will it deliver over what time frame?
That's a wrap! #SharkTankAU @Janineboost @sbxr @DrGlenRichards #AndrewBanks
See you next season! pic.twitter.com/bIB1R0V91w— Naomi Simson (@NaomiSimson) July 7, 2016
This article was first published on SmartCompany.
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