Shark Tank: Mark Cuban And Daymond John Make An EMazing Deal For $650k

March 13, 2015

Brian Lin is on Shark Tank in search of an funding in Emazing Lights. They’re specially designed gloves with lights on the fingertips, used for striking on a dance efficiency at nighttime — at golf equipment and other darkish venues.

Lin is asking for an investment of $ 650k and providing a 5% fairness in his firm.

He says that ‘gloving’ is already moving from a subculture to popular culture, and that he expects it to continue to grow. considering the fact that he started, he says, he’s grossed over $ thirteen million, and he expects to have some other $ 5.5 million in gross sales this 12 months. however, it’s not just the gloves — he’s split some of the earnings into some other line referred to as IHeartRaves, which markets other goods to ‘pageant-goers’ and has netted any other $ 1.4 million, and is predicted to make another $ 2.5 million this 12 months.

The merchandise vary from $ 20-a hundred and twenty, with the upper-end products providing more programming options, and income vary from $ 10-17 per unit.

Kevin O’Leary was once first in with a proposal, pronouncing that the doubtless transient nature of the product — which might simplest be a fad — involved him, so he’d supply a loan fairly than an investment. He’d loan the $ 650k, for a three% stake.

Lin declined without hesitation, announcing he wasn’t searching for a loan — and Kevin familiar, saying that if so he used to be out.

Daymond John had a concern — why this type of small offer? Sharks don’t get out of bed excited to get 5%. Lin asked what p.c the sharks would want to get involved.

Daymond said he’d make a suggestion — he’d make investments the asked $ 650k, for 20% no longer of the entire firm, however of the licensing deals that resulted from the agreement.

Robert Herjavec and Lori Greiner had a proposal to make collectively. They’d supply $ 1 million, for 8% fairness.

Mark Cuban had a proposal too, and he felt he had an offer that will make a care for him an actual steal: he’d provide the $ 650k funding, but he’d also get Lin in for a halftime exhibit with the Dallas Mavericks, and let him show the product there. He then introduced Daymond into it: they’d do the deal collectively, Daymond would still do the licensing as urged, and would take 20% of licensing returns, as he’d supplied.

The sharks started out to squabble over their relative values, and Herjavec interjected to guarantee that, he, too, might get Lin into arenas to indicate his product.

He announced that he and Lori were modifying their offer: $ 1 million, for handiest a 5% stake.

Cuban jumped in to argue his case once more: “You said it wasn’t about the money. It was about the experience, and the steering, and the toughen.”

After what must’ve been a difficult think about, Brian made his resolution. He thanked Lori and Robert for his or her supply, and took the deal with Mark and Daymond.

final Deal: Mark Cuban and Daymond John invested $ 650k together in Emazing Lights for a 5% stake for Mark, and 20% of licensing values for Daymond.

photo: Emazing Lights

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