Season 5 | Episode 506 | EP506
In Season 5, Episode 7 of Shark Tank, Tim Barklage & Kevin Tibbs approached the Sharks seeking an investment of $400,000 in exchange for 7% equity in ‘Better Life’. The company is currently based in St. Louis, Missouri.
Better Life cleaner is a brand of organic cleaning products. These are 100% natural cleaning products with ingredients that have been derived from plants. These organic cleaning products have been designed for those who wish to do ‘their bit’ for the environment while at the same time being perfect for parents who do not wish to expose their children to toxic chemicals after they have cleaned their home. The duo demonstrated that their product was more effective at killing bacteria than leading commercial counterparts.
The company had managed to achieve $2,000,000 in sales in just 12 months. Better Life has a small amount of debt but nothing significant. This straight away indicated that the product had the potential to be successful in the market. The duo noted that the majority of these sales came through Crate and Barrel, Amazon, their own website, and Whole Foods. They indicated that their products would be very difficult to reverse engineer and thus it would be unlikely that a competitor would enter the market any time soon.
Better Life was searching for investment from the Sharks as a form of ‘strategic partnership’. They wanted to have people on board who would be able to take their product to the next level in the marketplace.
Lori Greiner: $400,000 in exchange for 17% equity in the company. She pledged to ensure their product was featured in Bed Bath and Beyond as well as on QVC.
Kevin O’Leary: $400,000 as a loan. This would need to be repaid within 3 years at 10% interest. He also required a 5% stake in the company.
John Paul DeJoria offers $400,000 in exchange for 20% providing Lori is in on the deal too.
Daymond John: $500,000 in exchange for 20% equity in the company.
Lori Greiner and John Paul DeJoria: $400,000 for 17% equity.
Mark Cuban: $800,000 for 20% equity. He wishes to partner with Lori but she refuses.
Kevin O’Leary: $400,000 for 17% equity. This would then be reduced to 7% upon the $400,000 being repaid.
Lori Greiner: Matches Kevin’s offer.
Daymond John and John Paul DeJoria: $500,000 for 20% equity in the company.
The duo decided to accept Lori Greiner’s offer of 17% equity in Better Life which would drop to 7% upon the initial $400,000 investment being repaid.
Lori Greiner has helped launch over 400 products with a 90% success rate on new items launched. Lori looks for products that solve a problem, can be sold at a reasonable price and are appealing to the mass market.