You Should Be Nervous When 'Shark Tank' Investors Are This Excited About A Deal
Sweet Ballz, a packaged food startup by Dallas-based
The entrepreneurs initially asked for $250,000 in exchange for 10% of their company, which would value the company at $2.5 million. The Sweet Ballz business is selling packaged cake balls that come in packs of four in flavors like red velvet, chocolate, and cookies and cream. It capitalizes on the trend of the cake pop, but the balls come without the stick and a 45-day shelf life.
"Which one of you is ready to make some sweet, sweet dough with our Sweet Ballz?" McDonald asked.
Screenshot from ABC's "Shark Tank"
If the Sharks weren't already hooked, their eyes grew even wider when the business owners said they'd done $700,000 in sales in the past 90 days and had profits of $95,000.
"Things are going great for you," said investor Robert Herjavec. "Why are you here?"
That question alone should have tipped the business owners off that they had something of obvious value to the Sharks. Egger said the investment would go a long way towards growing the business and its distribution points.
Then the feeding frenzy began. Barbara Corcoran offered $250,000 for a 40% stake, and Kevin O'Leary undercut it with the same offer but for a 30% stake. Lori Greiner jumped in with an offer for a 36% stake, saying it comes with her QVC network.
Screenshot from ABC's "Shark Tank"
It was a strong move on the Sharks' part - one parents use often. Give someone only two options, and you ensure they'll end up choosing something you've sanctioned.
In this case, the business owners chose Cuban and Corcoran, an investment that values their company at $1 million. When the business owners walked away pumping their fists and celebrating, they seemed to have forgotten that they were initially seeking a valuation of $2.5 million.
They have a hot business, and it will surely get hotter with a large cash infusion and powerful
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