The Shark Tank - Page 12 - Business, Finances and Investing Forum

Really loving Cuban more and more, calling that patent BS was awesome, what a douchebag lawyer. He clearly just wanted to get on TV and wasn't entertaining any offer seriously. He's got Woz on his speeddial and needs 500k from the sharks?

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03-03-2012 , 11:50 AM

#277

Jusbe

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Join Date: Feb 2005 Posts: 1,158

When he came up and presented the product I actually facepalmed, I mean, who the **** wears something like that. Oh well, 12M in sales so obv I was wrong. Still don't understand it. If he wasn't serious about closing a deal, why did he came with the licencing/IP proposition? That was just confusing and made him look toolish. He could've easily acted in more elegant manner and presented the actual retail business w/ the IP assets included, and just turned down any offers if he just wanted publicity.

I still somehow rooted for him but he blew it in the end. And I do agree w/ Cuban, BS like that kills way more than it protects.

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03-03-2012 , 11:53 AM

#278

Conz

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i didnt think he had a bad product at all. i just wouldnt rock a vest like that.

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03-03-2012 , 12:59 PM

#279

Jzo19

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i wouldnt rock the vest , but i would rock a hoodie that was capable of carrying my mp3 player/phone /earphones so i can run .

i thought the I.P. would have been a slam dunk for the valuation he was giving (especially) for daymond ..he did come off dickish and with a sense of entitlement which i thought made it kind of obv he was there just for the publicity

mark cuban was right about the b.s patent law and wireless headphones but it doesnt mean this guy isnt going to make millions upon millions...

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03-03-2012 , 02:21 PM

#280

rothko

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that kiss was disturbing.

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03-03-2012 , 02:26 PM

#281

OppositeAttract

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The tech clothing guy was so epic. It was awesome how he completely trolled them even to the point that Robert seemed livid.
To be fair the offers they threw out to him for his combined business of the retail and ip were extremely low and it did not seem that the shark would ever reach a serviceable number especially at his evaluation. (30 million)

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03-03-2012 , 02:35 PM

#282

lozen

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Originally Posted by OppositeAttract

But reality was he had no intentions of selling them anything. He just wanted to exposure. If he has that kind of sales he could fund anything he wants and why isnt the co founder of Apple investing in him.

Cuban is right run some wires through a sleeve and get a patent insane

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03-03-2012 , 02:51 PM

#283

OppositeAttract

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I thought he was investing in him (the woz) as he disclosed him to be a business partner before leaving the board room. Robert was blatantly playing games with him and knew that the offer he gave was as he put "not serious". Usually the sharks opperate on a position were the people are in need of money to survive/ work or even fill orders to keep the company alive. This situation was different the seller had leverage in the deal. This case was different and the seller in fact could set the terms as the money was not as much a pressing concern as his business was thriving.

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03-03-2012 , 02:55 PM

#284

ngrund

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Originally Posted by Jzo19

I have one-the company that sells them is scotevest

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03-03-2012 , 03:07 PM

#285

Conz

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does TEC advertise in Cardplayer? could have sworn i saw a very similar product being advertised towards poker players. Phil Laak was a spokesman i believe.

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03-03-2012 , 03:23 PM

#286

Party

adept

Join Date: Jul 2006 Posts: 1,075

loved seeing an entrepreneur with actual leverage talking to the sharks. made for a way more interesting show than the garbage inventions that mostly make it on there.

i don't see why it was so unreasonable to segment the business into licensing and retail clothing and ask for financing for only one side of it.

obviously he doesn't need shark 'expertise' to make a good retail business when he already has done so... but he does need them to help make big licensing deals happen.

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03-03-2012 , 03:29 PM

#287

Jzo19

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Originally Posted by Conz

does TEC advertise in Cardplayer? could have sworn i saw a very similar product being advertised towards poker players. Phil Laak was a spokesman i believe.

"the ultimate poker hoodie" ..might have to order one

http://www.scottevest.com/v3_store/s...r-hoodie.shtml

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03-03-2012 , 04:15 PM

#288

Conz

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there ya go. so it was the same guy. yea, that hoodie is pretty sick

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03-03-2012 , 05:17 PM

#289

TomCollins

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Originally Posted by OppositeAttract

I think they said woz was an adviser but didn't say if he was an investor.

He didn't even want to negotiate, though. He just wanted to be a dick, get on TV, get people talking about him, and drive business to what he has. Guy is a scumbag and more reason why lawyers tend to be the scum of the Earth.

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03-03-2012 , 07:00 PM

#290

Heinz007

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Join Date: Sep 2009 Posts: 56

Quote:

Originally Posted by Jusbe

That was just confusing and made him look toolish. He could've easily acted in more elegant manner and presented the actual retail business w/ the IP assets included, and just turned down any offers if he just wanted publicity.

It would have been a bad idea to present the profitable retail business because ABC allegedly gets a 2% royalty regardless of whether you complete a deal or not.

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03-03-2012 , 07:46 PM

#291

shredhead84

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Join Date: May 2010 Posts: 587

I don't think there is ever much reason to sell to the sharks. If you come on to the show then you'll get a huge boost in popularity/sales and interest in buying your business. It's basically free advertising, and the sharks always get sweetheart deals at like 5 p/e it's absurd. Sometimes it makes sense, most of the time the entrepreneurs would be better off not selling to the sharks. I would dare to say that on average the value of the companies after shark tank should be worth 30-50% more

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03-03-2012 , 07:52 PM

#292

HyperionMark

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Join Date: Jul 2005 Posts: 1,017

He didn't seem like that bad of a guy and only started acting like a jerk when Cuban upset him with his patent troll stance and then Robert gave him a ridiculously low ball offer. He had leverage and a chip on his shoulder after those things and that made him look worse than he probably was/is. He probably shouldn't have left the way he did though because it's obvious the show is willing to promote you even if you didn't get a deal and left on good terms.

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03-03-2012 , 09:03 PM

#293

TomCollins

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Originally Posted by shredhead84

When you need financing and have orders you can't fulfill, or need the connections, it's a great deal. If you have $600K order from Walgreens, but don't have the capital to get it done, it's a great idea. When your only other alternative to get the connections needed to hook you up with the right people is to hire a super expensive consultant (that you don't have money for), the sharks are the right approach.

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03-03-2012 , 09:38 PM

#294

LT22

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Originally Posted by TomCollins

+1, the sharks' main value is their connections and/or immediate capital

sure, you will get other offers, but having somebody like Lori Greiner insta get you on QVC is huuuge

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03-03-2012 , 10:03 PM

#295

TomCollins

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Originally Posted by LT22

+1, the sharks' main value is their connections and/or immediate capital

sure, you will get other offers, but having somebody like Lori Greiner insta get you on QVC is huuuge

I'm amazed QVC has that much business, but it seems like it really makes some stuff.

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03-03-2012 , 11:25 PM

#296

yoshi_yoshi

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Join Date: Dec 2004 Posts: 265

Is it that all the businesses that come on the show need to pay a 2% royalty regardless to ABC? I wonder if the TEC guy wanted to shield his real company from having to pay that.

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03-04-2012 , 03:52 AM

#297

GEAUX UL

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Quote:

Originally Posted by yoshi_yoshi

Is it that all the businesses that come on the show need to pay a 2% royalty regardless to ABC? I wonder if the TEC guy wanted to shield his real company from having to pay that.

Ah, that makes perfect sense. Smart.

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03-04-2012 , 03:56 AM

#298

GEAUX UL

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Join Date: Dec 2009 Posts: 2,178

Can anyone explain to me why the TEC guy needs the sharks to work out royalty deals?
It seems like a really good lawyer or consultant would be much cheaper.

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03-04-2012 , 06:10 AM

#299

ESKiMO-SiCKNE5S

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Join Date: Aug 2005 Posts: 29,325

that kisstixx thing was amazing. just saying.

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03-04-2012 , 09:43 AM

#300

TomCollins

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Originally Posted by GEAUX UL

Can anyone explain to me why the TEC guy needs the sharks to work out royalty deals?
It seems like a really good lawyer or consultant would be much cheaper.

Yeah, seems like if he got them, the value goes up considerably. So his $3M valuation might go up to $10M or something, and they'd have gotten paid about $1.5M. No idea what the going rate is.

But maybe the value is a lot less (no sharks would come close to it), so maybe it is worth $3M after the sharks take it, which puts it closer to $500k, which seems more reasonable (but possibly high).

Add in the exposure on the show which has tremendous value, maybe it's not such a bad idea, especially when he walks from the sharks.

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