Founder and CEO of Stitch Fix, Katrina Lake, joined long-time Sharks, Mark Cuban, Lori Greiner, Kevin O’Leary, and Robert Herjavec in the Shark Tank to hear investment pitches from four growing businesses.

Bite Toothpaste Bits, BabyQuip, Coconut Girl, and Pair Eyewear all convened in the tank to showcase their business successes and seek advice for their struggles, all while trying to convince the Sharks to invest in their companies.

In a rare turn of events, although all of the businesses were extended partnership offers from the Sharks, only two of the businesses accepted the offers that the Sharks extended to them.

Key Takeaways from the Episode

  • Bite Toothpaste Bits: Declined offers from Mark Cuban and Kevin O’Leary, valuing long-term control over their business.
  • BabyQuip: Turned down Kevin O’Leary’s offer, citing differences in equity valuation.
  • Coconut Girl: Partnered with Mark Cuban for $180,000 in exchange for 20% equity.
  • Pair Eyewear: Accepted a joint offer from Lori Greiner and Katrina Lake for $400,000 and a royalty deal until repayment.
  • Latest Update: These businesses continue to grow, with Coconut Girl scaling its product reach and Pair Eyewear expanding its customization offerings.

Bite Toothpaste Bits Walks Away From Offers From Mark Cuban and Kevin O’Leary

Asher Hunt and Lindsay McCormick are entrepreneurs that are on a mission to shake up the oral hygiene industry.

Inspired to create change after learning that one billion plastic toothpaste tubes end up in landfills every year, Lindsay immersed herself in the market learning everything she could about dental care and chemistry to develop Bite Toothpaste Bits. Each bit contains enough toothpaste for one brushing and comes in a glass bottle that can either be recycled or refilled with a compostable refill pack.

The product is sold in different quantities and in a subscription model for convenience. To use the product, simply bite down on the toothpaste bit to activate it and then use a wet toothbrush to brush as you normally would.

Impressed by the product, but most of all by Lindsay and her efforts to research the market, manufacture the product and create a space for herself in such a huge industry, the Sharks are interested to learn more about her company.

Asher and Lindsay are seeking $325,000 for 5% equity in Bite Toothpaste Bits.

This valuation is based on the $1.3 million in sales they have seen in their first 10 months of business. The Sharks are very impressed by their sales, subscribers and current business model, but they are concerned about long term competition. Kevin O’Leary offered $325,000 for 20% as a reflection of the risk and work involved with the larger competitive landscape in the future. Mark Cuban offered them $325,000 for 15% citing the same reasons. Because the Sharks felt that there was a lot of work to do to make Bite Toothpaste Bits a true contender in this market space long term, neither were willing to move their equity values any lower.

Lindsay was not willing to part with that much equity in her company and declined their offers, leaving the Shark Tank without a deal.

BabyQuip Turns Down A Deal With Kevin O’Leary

Mother and son duo Joe and Fran Maier came to the Shark Tank to showcase their online marketplace for baby gear rentals, Baby Quip.

This company has a goal of making traveling with children easier. This online service allows families to rent accessories from local sources when they travel such as cribs, strollers, car seats, etc. The items are fully insured, clean, safe and delivered right to your doorstep from one of their 500 providers. Since the company’s inception in 2016, it have grossed $3.7 million in revenue. Although they have other financial investors, they want to partner with a Shark to gain exposure and continue to expand their business.

They are looking for a $500,000 investment for a 5% equity share in Baby Quip.

The Sharks are concerned about the continual cash infusion or need for an additional partnership with a larger company to be able to truly build their brand.

They do like that 90% of their marketplace providers are stay-at-home moms which helps them to provide for their families.

The “families supporting other families” dynamic is very impactful and the Sharks do see value in that message, however, only one Shark decides to make BabyQuip an offer. Kevin O’Leary offered Joe and Fran $500,000 for 20% of the company. Fran is not willing to go that high on the equity. Because they can not come to an agreement, BabyQuip declines Kevin’s offer and leaves the Shark Tank without a deal.

Mark Cuban Lands a Partnership Deal With Coconut Girl

Frankie Yamsuan came to the Shark Tank in hopes of finding a Shark willing to invest $180,000 for 18% equity in her company, Coconut Girl.

On her search to eat clean, Frankie developed Coconut Girl. Her dairy-free, gluten-free, ice cream sandwiches are made with all-natural ingredients like coconut milk, honey, dates and maple syrup. The Sharks immediately love the taste of the product, especially the almond butter cookie sandwich.

They also like that she is already selling through big-box retailers such as Whole Foods.

Coconut Girl is on track to sell $300,000 worth of product this year.

With a better copacker and a Shark on her side, Frankie can expand her reach and drive her costs down significantly. Because this fits so well with Mark Cuban’s lifestyle, he is very interested in investing in Coconut Girl. He extends an offer to Frankie but wants her to commit to his offer without hearing the other offers first.

Although other Sharks are interested, Mark Cuban and Frankie come to an agreement for a $180,000 investment in exchange for 20% equity.

Pair Eyewear Partners With Both Lori Greiner and Katrina Lake

Pair Eyewear cofounders, Nathan Kondamuri and Sophia Edelstein, what to help children change their perception of wearing glasses with their patent-pending customizable design.

Each frame is magnetized to allow kids to swap out the color or design of their glasses as often as they would like. The cost for the frames is $95 including the lenses and all applicable coatings (anti-glare and scratch). Each add on front design is $24.99 making it very affordable for kids to customize their look based on their moods, clothes or even the season.

Instead of dreading wearing their glasses, kids will be excited to pick their own patterns and colors daily.

Nathan and Sophia are looking for an investor willing to put $400,000 into their business in exchange for 10% equity in Pair Eyewear.

The Sharks are very interested and like that they have a thriving online market for their product. They are impressed by the market research that they have done which has allowed them to build a business that allows kids to have more control over their eyewear decisions. Although they are very impressed with Sophia and Nathan, the Sharks are concerned about the number of other investors and the competitive nature of the eyewear industry.

Lori Greiner and Katrina Lake decide to extend an offer to Pair Eyewear, but it takes into consideration the risk involved since they have taken a lot of money from investors with low sales volumes.

They agree to an investment of $400,000 for a 10% equity share and a $1.50 royalty per until their investment is repaid.

Wrapping Up

Which of these companies would you have invested in if you were a Shark? What do you think of Bite Toothpaste Bits and BabyQuip walking away from offers from the Sharks?

Would you have done the same thing if you were entrepreneurs in these companies? Start the conversation in the comments below!