Forgot your password?

Shark Tank Review: Episode 2 of Season 1

By Edited Nov 15, 2013 1 0

In the second episode of the first season of Shark Tank five business ideas were presented. Out of the five businesses presented two were able to secure an investment from investors, otherwise known as the "Sharks".

The businesses featured in this episode are: 

  • Crooked Jaw Clothing

  • LifeBelt

  • A Perfect Pear

  • Sticky Note Holder

  • Classroom Jams

The investors or the "Sharks" featured in this episode are: 

  • Robert Herjavec

  • Kevin O'Leary

  • Barbara Corcoran

  • Daymond John

  • Kevin Harrington

Shark Tank Episode 2 Of Season 1
Credit: ABC.com Shark Tank

Crooked Jaw Clothing Line

Craig French from New York has created a clothing line that targets the mixed martial arts community called Crooked Jaw. He is seeking a $200,000 investment in exchange for 20% of the company.

French presents a couple of designs to the investors and explains how the name "Crooked Jaw" came about. He says that after scoring the winning goal in a lacrosse game in high school he broke his jaw during the celebration. At this point most of the investors like his story and they like his designs but they want to know what Daymond John thinks. John is considered the "clothing guy" since he has created billion dollar brand such as FUBU.

After further investigation, it is discovered that French featured his designs in a clothing trade show but he did not receive any orders. This fact in the eyes of John is very bad or in his words horrific. Since all of the investors pretty much defer to John when it comes to clothing it is not looking good for French.

Other key things about Crooked Jaw are:

  • They have sold about 1500 units of apparel.

  • They are in 10 local stores in Long Island, NY.

  • They have had only $5000 in sales to date.

Robert and Kevin Haggerty are immediately out. Barbara is actually interested in investing but she will only invest if Daymond is on board.

Daymond feels like the business does not have any legs. He says that they have no hard paper sales from any major retailer and that they have no talent attached to the brand. Without these two things John has decided not to invest in the company which immediately prompts Barbara to bow out as well. Kevin O'Leary, who actually like the clothing, cannot bring himself to invest in the company. 


Robert Allison from Las Vegas, Nevada invented a device called the LifeBelt which prevent a person from starting their car without putting on their seatbelt. He got the idea to create this product after one of his loved ones lost a sister in a car crash. He is asking for a $500,000 for a 10% equity stake in the company.

Some key things that are important about his company are: 

  • He a has a patent on the device.

  • He has no sales.

  • He has received interest in major car manufacturers about his product.

Realizing that Allison has a valuable patent the investors are wondering why he is not licensing the technology to all the major car manufacturers. Robert Herjevec makes a point that licensing the product is the most lucrative play.

Kevin Haggerty thinks that the product could be sold in the car sales after-market where car dealers can basically up sell their customers when they purchase a vehicle. Nevertheless, he agrees with the other investors that licensing would probably be more lucrative.

Before making any type of offer Kevin O'Leary contends that, because Allison is not making any money on the product, that the only thing of value is the patent. Allison agrees with O'Leary's assessment.

Barbara is immediately out because she does not feel like Allison can sell the product. Haggerty is out because he feels like the company is overvalued. John is out because he believes that without a licensing deal then he will have to invest a lot more money in the business.

With that O'Leary makes an offer of $500,000 for 100% of the patent. Herjevec immediately ups the ante with an offer of $1 million for 100% of the patent. Surprisingly, Allison calmly rejects both offers.

When asked by O'Leary, "Is there any price that you would sell?" Allison responds by saying that he wants LifeBelt to become a nationally recognized brand. Herjevec responds by saying that you want to build a business and I want to take the path of least resistance. Ultimately, Allison vision was to build a business and not license his technology.

The Sharks are stunned that Allison turned down $1 million. It is also obvious that O'Leary is sick about not closing the deal. He knows that this product could possibly bring in some serious money.

A Perfect Pear

Susan Knapp of Napa Valley, California turned her hobby of making cinnamon pear jelly into a gourmet food company called A Perfect Pear. She is seeking a $500,000 for a 15% percent ownership stake in her company. She needs the money to fill existing orders.

Key things that you should know about Knapp's business is: 

  • The product is carried in about 650 stores.

  • She has $700,000 in sales.

  • She only makes $15,000 in net profit.

Although they are a little concerned with her profit margins, after trying out the jelly all of the investors seem interested, with the exception of Barbara, and waste no time making offers.

Kevin O'Leary makes an offer of $500,000 for a 70% stake in the company in which Knapp immediately rejects. Daymond makes an offer of $500,000 for 51% of the company. Kevin Haggerty, who is joined by Robert Herjevec, makes an offer of $500,000 for 50% of the company.

Knapp who does not really like the idea of giving up controlling interest in her company haggles with Daymond, Robert, and Haggerty over the equity percentages. She counters the investors with an offer of 49% for $500,000 and she retains 51% controlling interest. The investors hold firm because they want to have some type of control over decisions that are made within the company.

 Ultimately, Knapp agrees to a deal with Robert and Kevin Haggerty for 50% for $500,000.

Sticky Note Holder

Mary Ellen Simonsen has created a product that allows you to organize and keep your sticky notes in place while working on your laptop computer. She is seeking an investment of $100,000 for a 20% stake in her company.

After demonstrating the product to the Sharks, Simonsen is met with harsh criticism from some of the Sharks about her product. Robert Herjevec says,"So essentially you have created a sticky pad for a sticky pad?" Kevin O'Leary grills her on the valuation of her company and tells her that no one needs this product.

She contends that people do need her product but her case is further weakened when she mentions that she does not have any sales. When asked about the retail pricing of the product, Simonsen suggests that she would sell the product for about $10. This puts some of the Sharks in a frenzy.

Kevin Haggerty, who seems to be somewhat interested in the product, asks her has she shown her product to any retailers who say that they would buy it. Her response is that she has not shown it to anyone because she wants to secure a patent for her product.

At this point Robert, Daymond, Kevin O'Leary, and Haggerty are out. Barbara mentions that she thinks that Simonsen has a good product but it is not something that is investable.   

Sticky Note Holder Presentation

Classroom Jams

Marc Furigay, a high school English teacher from Chicago, created a record label and publishing house that creates musically themed teaching materials. As a teacher he found that his students were having a hard time understanding Shakespeare. He mentions that the students often just tuned out when reading Shakespeare. One his students told him that the material does not relate to them. As a result, Marc created songs to peak his student's interest in Shakespeare which became a huge success in his class. He actually has created songs to all of the Shakespearian classics.

Marc is seeking an investment of $250,000 in exchange for a 10% equity stake in his company. After explaining his business and performing one of the songs on all the Sharks have taken the bait.

Key things that you should know about his business is:

  • He has no sales.

  • His market is public and private schools (great market).

  • His Shakespeare musical class sets sell for $499 a unit.

  • He plans to create class sets for other subjects.

After hearing the idea Kevin O'Leary actually tells Marc to leave the room so the investors can talk about an offer. Kevin does not want to get into a bidding war with the other Sharks. All of the Sharks agree to invest $250,000 for 100% of the company and Marc would receive a 5% royalty in perpetuity on all sales.

When they present this offer to Marc he is flattered that all of the Sharks want to invest in his company yet he is concerned about not having any equity in the company. Marc makes a counter offer includes the royalty but with an equal equity stake as all the Sharks. The investors, especially O'Leary, immediately reject the counter.

Surprisingly, Robert makes a deal of his own for the company and offers Mark $250,000 for 100% of the company with a chance to buy back equity in the company. This deal includes no royalty payments. Then he sweetens the deal by offering Marc $250,000 for 51% of the company and Marc would retain 49%. Robert's offer stuns the other Sharks because, after all, they were suppose to be working together. O'Leary would go on to say, "You just saw someone screw their partners."

Neverthless, Marc likes the idea of working with all five of the Sharks. After some back and forth on the royalty percentage, the investors and Marc finally agree on a deal. In the final offer the Sharks would invest $250,000 for 100% of the company which includes a 5% royalty in perpetuity and Marc will be able to buy back equity after the Sharks have recouped their original $250,000 investment.  

Wrap-Up Of Episode 2

Once again a very entertaining episode and I loved the interaction between the Sharks and the entrepreneurs especially with Marc from Classroom Jams.

Best Idea

LifeBelt - Although the Sharks and Robert could not agree on a deal I think that this idea has the greatest potential to become a multi-million business.

Worst Idea

Sticky Note Holder - It was an okay idea, but the fact of the matter is that the idea was not proven (proof of concept) and even if it was a company like 3M, the manufacturers of Post-It notes, would have put her out of business.

Best Quote

In response to Craig French reading the message that is on all his hangtags Kevin O'Leary says this in classic O'Leary style, "I'm money and I don't give a damn. I just want to have more money."

Watch the full episode in the video below.

Other Shark Tank Episode Reviews:

Shark Tank Review: Episode 1 of Season 1

Also here are other articles about Shark Tank:

Shark Tank Terminology Part 1

Shark Tank Terminology Part 2

5 Things That You Probably Didn't Know About The Shark Tank TV Show



Add a new comment - No HTML
You must be logged in and verified to post a comment. Please log in or sign up to comment.

Explore InfoBarrel

Auto Business & Money Entertainment Environment Health History Home & Garden InfoBarrel University Lifestyle Sports Technology Travel & Places
© Copyright 2008 - 2016 by Hinzie Media Inc. Terms of Service Privacy Policy XML Sitemap

Follow IB Entertainment