Tag Archives: Shark Tank

Pick The Right Investor    

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(I didn’t have permission to tape the video. It has been deleted by YouTube. I probably would have been able to record it if it wasn’t over 10 minutes. Sorry!) 

Many DigiDame readers have children, grandchildren, or both, who one day will be raising money for a business they want to start. I think I have enough experience to say they shouldn’t take money from folks who are not passionate about them and the project they are working on.

Most entrepreneurs will take money from anyone they can get it from. I have been involved with those deals. Many times they don’t work out well because the minute something goes wrong, the investor pulls.

I encourage you to watch the segment of Shark Tank I taped off the air. You want an investor like Barbara Corcoran for the Fidget pitch in the video. She will not let this inventor fail.  She won’t run away when the big challenges present themselves.  I’m not saying that Barbara is always the right investor. I’m saying that she is  just as enthusiastic about the Fidget as the inventor.  

My last advice is that if you don’t find a passionate investor, you need to find several deep pockets so that you have plenty to replace the ones you lose.  Investing is a fickle business.

Sharing Videos

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The first video has been circulating around  Facebook. A site called sun-gazing.com is urging everyone to share this video just in case “you find yourself in a situation where your hands are duct taped together. The following video will show you a quick and easy technique to escape.”

The next video shows Shark Tank Robert Herjavec in his first appearance on Dancing With The Stars. Money Dances.

Time flies. I remember Rumer Willis as the young daughter of Bruce Willis and Demi Moore. Tonight she beat everyone out on Dancing With The Stars.

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PhoneSoap Charger

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The PhoneSoap was one of my favorite products on Shark Tank. The inventors of PhoneSoap describe their product as a charger that “encases a phone and uses a UV light to kill any bacteria on the device.”

I am a clean freak, but to have to admit that my cell phone is probably just as dirty as the next guy, maybe more so because I use it so much. The inventors, two cousins, Wesley LaPorte and Daniel Barnes, told the Sharks that the average cellphone is 18 times dirtier than a public toilet.

They wanted a $300,000 investment in return for 7.5 percent of their company. Shark Lori Greiner gave them $300,000 in exchange for 10 percent of equity stake in the PhoneSoap company.

The PhoneSoap was created to focus on cell phones, but the inventors said anything you put inside will be safely sanitized. PhoneSoap only takes four minutes to sanitize a phone.

Amazon cells the Phonesoap for $69.00.

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I Finally Have A Voice

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The one thing I love to do, but I’m absolutely the worst at, is singing. I’m completely out-of-tune and sound like a frog. I was so bad in junior high school, Mr. Santos, the teacher in charge of the Glee Club, didn’t even trust me to lip sync. I was completely thrown out and asked not to return.

I held my head down in shame. My father was a terrific singer. He could have easily been in the music business. He would sing in our car during long drives and belt out a few songs while listening to the radio at home. I thought everyone sang like that until it was my turn. Family and friends used to fold in their ears. People don’t do that anymore. They just tell me to shut up.

I think my life just took a happier turn tonight when I watched Singtrix, the next generation in karaoke machines, being presented on the TV show Shark Tank. Even though the two owners of Singtrix, failed to raise any money, the product still has tremendous appeal to all hams like me.

Singtrix features hundreds of professional vocal effects, live backup harmonies, and natural pitch-correction. If I hit the on-mic effect button, my voice automatically is transformed into a 4-part vocal harmony super group. That is super awesome.

At $349.99, The Singtrix Studio allows me to sing along with YouTube or my existing music library. The Singtrix karaoke app is also a source for karaoke music. I can’t wait to get Singtrix, stand in front of a mirror, and become the star I always thought I was.

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The Most Innovative Kayak You’ve Ever Seen

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I have only kayaked once. I really liked it even though Eliot did all the work. It’s a great way to get close to nature, just you and a body of water. Many of my friends in Miami kayak all the time, but they admit it’s always a schlep to tow their boats to the bay.

Tonight Oru Kayak presented a solution on Shark Tank. I couldn’t believe my eyes. Oru Kayak designs origami kayaks. They fold out of a compact case. The video above gives a great demonstration of what I am talking about. There is nothing like the Oru kayaks on the market.

The Oru Kayak is light and compact. It’s on display at the San Franscisco Museum of Modern Art. I want to buy one. The Oru website says “it’s stable enough for beginners and fast and sporty enough for expert kayakers. Oru Kayaks transform from a box to boat in just a few minutes.”

FEATURES
-Comfortable foam seat and fully-adjustable backrest
-Easy-to-close watertight seams
-2 rubber deck straps for extra gear
-Easy-to-adjust footrest
-Reinforced cockpit for easy entry
-Pair of bulkheads for extra rigidity
-Simple and intuitive strap and buckle closure system
-Fits standard spray skirts (size medium)

SPECIFICATIONS
LENGTH: 12′ [3.7 M]
WIDTH: 25″ [63 CM]
WEIGHT: 26 LBS [12 KG]
BOX LENGTH: 32″ [81 CM]
BOX WIDTH: 13″ [33 CM]
BOX HEIGHT: 29″ [73 CM]

The Oru Kayak retails at $1,195.00. Pricey but convenient. I’ll let you know if we get a pair.

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This Will Blow Your Mind

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You have to try this at home yourself. This is not magic. But it’s pretty darn close.

Everyone has been talking about the Cycloramic ever since its founder, Bruno François, appeared on Shark Tank last week. This is going to be one of the most amazing things you have ever seen. A new app is capable of turning a series of photos into a panoramic photo or video. And the phone can even do it by itself using the iPhone’s vibrate feature which has been specially calibrated by the app to spin the device smoothly around on its own steam. You can then view the photo or video on Cycloramic’s 3D viewer.

You have to watch the videos to better understand this amazing feat.

The Sharks loved the Cycloramic. Mark Cuban gave Cycloramic $500,000 at a $3 million valuation. François was only seeking $90,000.

After researching information about the app, I found out that the episode was filmed over the summer. At that time, Cycloramic had 660,000 downloads and cost $.99 on the App Store. Today, it has more than eight million downloads and costs $2.99, although it is currently offered on special at $1.99. François is also developing a rotating base to allow the app to work on non-iPhone devices.

About 100,000 new downloads took place within an hour of Cycloramic’s debut on Shark Tank. The power of television? No, the power of a great product.

Follow-up to Shark Tank Post

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Everyone thinks their ideas are the best. I get ideas pitched to me all the time. Some arrive on the back of a paper napkin and others are presented in full-blown written proposals.

I am a target of their dreams because they know I know the right people. “The right people” consists of angel investors, venture capitalists, bankers, CEOs, writers, industry analysts, and people who know people.

I try to explain to wannabes what it takes to get money, but very few really get it. They believe their ideas are so good that everyone should stop what they are doing and give them a round of applause.

It doesn’t work that way. There are a million good ideas only a handful of which are by people who know how to execute them. I do know that investors look for certain characteristics and accomplishments in a person before they part with a dime.

The Sharks were interested in the Breathometer because the guy behind the technology had already started and sold a successful company. He has also pre-sold thousands of units, is willing to work around the clock to make the business a success, and has an exit plan that will make money for everyone involved,

Let me give you some very important tips.

1) Don’t ever admit to money people that you need them to be the brains behind the operation. They are supposed to be investing in you and your ability to get things done.

2) Be ready to prove that your concept makes money. Real proof, not daydreams. Investors want concrete evidence that your business will be profitable and that they will get their initial investment back in record speed.

3) Investors like entrepreneurs who have skin in the game. You have a better chance of getting money if you have also invested in your idea. Show them that you are serious.

4) Be ready to live modestly. Investors do not want to see their money being used for sizable salaries. No one makes money until they do.

5) This cannot be a part-time venture for you. If this is not your ful-time job, forget it. You are not getting a dime. Your commitment means everything.

A few years ago, it was pretty easy to get money. Today, it is very difficult. Be ready to fight the fight.

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Shark Tank’s Cheesy Indulgence

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Mark Cuban

When someone with deep pockets makes a mistake, it is called “an experiment.” When someone starting out or just an average Joe makes a mistake, it is considered a major blunder. Hence, the reason for my post.

Mark Cuban, one of the six rotating investors on ABC TV’s Shark Tank, admitted in an interview on Reddit that allowing a T-Mobile product placement followed by a T-Mobile commercial, right in the middle of the show last season, was in poor taste. He actually used the word “cheesy.”

We are loyal fans of the show so we will give it another shot this season, but if we start to see blatant product endorsements on the show, we are going to immediately tune out. Watching real estate mogul Barbara Corcoran talk about her ability to use her T-Mobile phone to access information about one of the on-air startups was insulting to the viewers. We all knew Shark Tank was getting paid to have Barbara say that.

Cuban’s actual excuse on Reddit was, “It was beyond cheesy. None of the sharks liked it, but we learned from it and it will be different in the future.” So what does that mean? They won’t endorse products on the air as a form of advertising, or they will do a better job camouflaging it?

Reddit is a collection of entries on a website submitted by registered users. It looks like a bulletin board system. The entries are organized into areas of interest called “reddits.” The word Reddit comes from “I read it.” Users vote on stories, thumbs up or down. The result determines the positioning of the content on the site.

Cuban was featured on Reddit’s AMA (Ask Me Anything) thread. Users posed questions and he answered them quickly and candidly.

Reddit also asked Cuban how many of the deals on Shark Tank get modified or cancelled after the cameras stop rolling? Also, had any of the Sharks ever decided to make a deal with someone after the cameras stopped?

I think you are going to find Cuban’s answer very interesting. “We get the chance to do due diligence after the show. As a result, you uncover things that were not brought up in the show, so it’s not unusual for a deal to fall through in the DD phase. I have had things like people who never paid their taxes, people who lied on the show, people who thought that spending money on their personal credit cards should be considered a business expense, you name it.”

Cuban continued, “There is so much pressure on the entrepreneur during the show that sometimes they say what they think we want to hear rather than the truth. The DD helps us separate the two.”

“How many of the deals have you had to break off in the DD phase?”

“Probably about 25 per cent of them!”

How to Psych Out the Money People

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I get so frustrated every week when I watch the small business owners ask the Sharks for money. For those of you who don’t know anything about Shark Tank, it is a weekly ABC reality TV show where entrepreneurs pitch wealthy business executives for investment money. Many of the products are tech oriented, or have some sort of a tech component. The series is produced by Mark Burnett (Survivor) and the panel consists of Robert Herjavec, Kevin O’Leary, Barbara Corcoran , Daymond John, Mark Cuban, and Lori Greiner.

A lot of people question whether a TV reality series is real. I think if you watch enough TV, and you employ your common sense, you can filter fact from fiction. After you have watched several weeks of this show, you start to understand what the Sharks want to hear about and how to get their money. Yet, week after week, I watch the small business people make the same mistakes. I have witnessed this in real life too. There is no secret what angel investors, investment groups, venture capitalists, and other money people want. They want to know at the end of the day that their investments are paying off.

Don’t give them your hardship stories, your challenges, your misfortunes, your woes, your struggles, and your yo-yo life. They do not want to hear it. Yes, they will be sympathetic, but at the end of the day, they will give you nothing.

Even in the real world, we help clients and would-be clients to raise money, and during their pitches they turn into whiney children who cry that the bullies are beating them up. There have been countless times when we rehearsed a pitch with a suitor only to go into a meeting and have them switch everything around. All of their insecurities and warts come flowing out all at once. I could tell by their body language that they weren’t going to get a thing other than a kick in the pants and a shove out the door.

These are just a few things investors want to hear about:

1. You work the business 24/7. You don’t have another job. Your entire focus is on the project.

2. You’ve already had some proven indicator that the public wants what you’re selling. The sales have to be significant and recent. If they see a gap in orders, you are history.

3. When you ask for money, don’t be a pig. Investors hate that. They will turn you down immediately.

4. If you are offering a percentage of your business in return for the money, don’t evaluate your company too high. Better to be conservative.

5. Be prepared that most investors want a significant percentage of your business for the money. They all have their calculators out. If you offer them a small percentage and ask for big money, they will tell you to leave the room immediately.

6. Only mommy and daddy will not want anything in return for the money you’re requesting. Grow up. Your idea is not genius, and it’s going to take a lot of work to make it happen.

7. You’d better be able to describe what your business is in two or three sentences. If you go around in circles, you’re a goner.

8. Know your competition like the freckles on your face. If you can’t explain why you are better and why you can beat them out, you are discounted immediately.

9. Be passionate about your business. Investors want to know that you live to be in business — not the other way around.

10. Do not indicate that you have been working the business you are pitching for years. Anything over two years smells like dead fish. You need to present exciting, new material.

There are probably a few other points to consider, but I want to point out that if you are not confident in what you are doing, you will not be getting any money. In the November 23rd issue of Entertainment Weekly, there is a two-page spread on Shark Tank. You might learn something from the article, but the heart and soul of your pitch for money is written in this blog post. If you don’t understand what you have to do, call me. I have watched the best of the best and the worst of the worst. I can give you powerful pointers.

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Looking For The Next Steve Jobs

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Will.i.am

Simon Cowell

Steve Jobs

It was only a matter of time. I am surprised it took this long. I even thought of it myself, but I don’t have millions of dollars to make it happen. It takes the likes of Simon Cowell and Will.i.am to back this sort of a thing. Looking for The Next Steve Jobs is like Looking for Mr. Goodbar. Does he really exist?

The duo of Simon and Will.i.am are working on a project called the ”X Factor for Tech.” The details are very sketchy at this point but basically it will be the same kind of format that has proven to be successful for singers and dancers: teams of producers screen the entries, the on-screen TV judges select the ones they want to present on stage, the audience then decides on the finalists and then the grand prize winner.

The big question for ”X Factor for Tech” is their particular format. Will there be a final winner for each show that gets a sum of money for a startup, or will it take a year to get to the grand finale? How serious are they in finding the next Steve Jobs? Personally, I think that is just a euphemism for finding inventors who are game changers like Jack Dorsey of Twitter and Four Square, Mark Zuckerberg of Facebook, Steve Case of AOL, and Jeff Bezos of Amazon.

Unlike the entertainment business, there is just a limited number of geniuses. Most of the time when you hear a new and interesting concept, it first sounds like a winner. Then as time goes by, the concept starts developing warts that the money people don’t want to address and the inventor doesn’t know how to cure on his or her own.

If you ever watch Shark Tank, a TV show format with a similar objective as what I think “X Factor for Tech” will be about, you start to understand why the Sharks only give money to those who can stand on their own. They can’t be nursemaids to the idea people. Too many inventors/creators need money but they also need guidance. They know nothing about marketing, accounting, legal requirements, hiring, firing, meeting deadlines, or even sales. The minute the Sharks find out that the person standing before them is an empty suit, he or she gets turned down.

The same thing will happen on “X Factor for Tech.” Simon and Will.i.am are not about to give money for an idea that will go no place fast, so it is going to be interesting to see how they cultivate the inventor. The same thing holds true with American Idol, The X Factor and all of the other entertainment shows. Half of the grand winners cut a record or two but you never hear from them again.

That is show business. This is the tech business. The ultimate Steve Jobs didn’t just appear one day. He was created after decades of trying to make things happen and then deciding that he had enough substance to lead. Very few on earth ever feel like that other than the impostors. There are tons of them. It is going to be interesting to see if these two music moguls will be able to spot that.