Walking away with a “Shark Tank” funding offer isn’t any simple process — particularly when the investors “hate” your thought.
Jonathan Dusing, co-founder and CEO of Snow in Seconds, appears to have cracked the code. On Friday’s episode of the ABC present, he pitched his firm, which goals to “convey the magic of snow indoors,” he stated. It makes use of a chemical known as sodium polyacrylate, which expands greater than 10 occasions in measurement when launched to water, to create “faux snow.”
Dusing has run the small enterprise for the final 15 years, whereas additionally working a bigger sports activities tech firm known as Fanmaker, he stated. Snow in Seconds is accessible on Amazon and the company’s website — however most of its gross sales are in bulk for film units and huge occasions, Dusing famous.
“In 15 years, out of our one-stall storage, with my kids and I packing and delivery each single bag, we now have bought $2 million,” he stated. “Last 12 months, we bought about a quarter million, $241,000, [and profited] $40,000.”
Snow in Seconds packaging on ABC’s “Shark Tank.”
Disney/Christopher Willard
Dusing sought $50,000 in trade for a 10% fairness stake in his firm, saying the cash — and his investor’s mentorship — would go towards shoring up his retail distribution. The firm’s income and revenue figures had been respectable, a number of investors stated. But Lori Greiner, Kevin O’Leary and Mark Cuban nonetheless all withdrew instantly.
“It is so seasonal and so particular,” stated Greiner. “It’s simply not broad sufficient for me.”
O’Leary’s rejection was extra grim: “Sometimes a deal is available in that I really, really hate and this is prime of the record for this season.” He additionally disliked Snow in Seconds’ seasonal nature, and known as its gross sales figures “irrelevant” on account of its small buyer base and sluggish income development over 15 years.
“I hate the truth that it distracts you from a actual enterprise,” O’Leary stated. “This deal sucks.”
Barbara Corcoran expressed some considerations too, however determined to make an offer anyway: $50,000 for one-third of the corporate.
“$40,000 in income does not get anyone excited. A 15-year-old enterprise is at all times suspicious. Low income constantly, 12 months after 12 months, and also you’re busy,” she stated. “But I feel the enterprise has nice upside potential.”
Daymond John, the final investor remaining, declined to offer a deal after listening to how “wholesome” Corcoran’s was. Dusing tried to speak Corcoran right down to 25%, however she would not budge.
Ultimately, Dusing accepted her offer, a lot to O’Leary’s dismay.
“Jon, the truth that you got a deal is a Christmas miracle,” O’Leary stated.
Disclosure: CNBC owns the unique off-network cable rights to “Shark Tank.”
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