Season 5 | Episode 507 | EP507
In Season 5, Episode 7 of Shark Tank, Solomon Fallas approached the Sharks seeking an investment of $300,000 in exchange for 15% equity in ‘180 Cup’. The company is currently based in New York, NY.
The 180 Cup is a rather unique product. The product has been designed to be a combination of both a shot glass and a red party cup glass. The base of the mug has a shot glass incorporated into the base of it. This means that when somebody is ‘done’ drinking their beer they can just flip it over and fill up the shot glass. It is a simple product and there is a lack of competition in the market at the moment.
Solomon Fallas has managed to sell 5 million units over the past six months. This has led to sales totaling $385,000. At the time of the pitch the 180 Cup could be found in over 500 stores around the United States. Solomon also had a sales team working for him who would head to the various colleges in order to sell the product. These sales are commission based and the salesmen are recruited through social media.
The 180 Cup attracted an offer quickly with minimal questions about the party cup. The Sharks were VERY impressed with Solomon’s unique approach to marketing as well as the high amount of sales the company had generated in a very short period of time. They also believed that the college market was only the tip of the iceberg. They envisioned the 180 Cup being distributed to sports teams as well as beer companies.
Daymond John: Offers $300,000 in exchange for 20% equity in 180 Cup. He demands an answer immediately…something which Solomon Fallas is unable to provide him with. This causes Daymond to exit negotiations.
Daymond John enters back into the talks after the other Sharks pull out. He does not make an initial offer however, he asks Solomon to name his price. Solomon asks for $300,000 in exchange for 23% equity. Daymond requests 30%. They both settle on 25%.
Daymond John was the successful investor of the 180 Cup. He was able to secure an investment in the company for $300,000 in exchange for 25% equity in the company. This was higher than his initial offer.
Daymond John prefers to invest in people; not companies. In order to secure an investment with Daymond you’ll need to communicate value as to how it will enrich lives, leverage portfolios or bring in money. Avoid self-fulfillment statements if you want him to take the bait.