Season 5 | Episode 508 | EP508
In Season 5, Episode 8 of Shark Tank, Abe Geary approached the Sharks seeking an investment of $200,000 in exchange for 20% equity in Pet Paint. The company is currently based in Los Angeles, California.
Pet Paint is the perfect costume for dogs. The idea was that people were able to paint their pets with a washable paint. It is a completely safe product and washes off in seconds. The range is huge with dozens of different colors available. This was in addition to a number of different stencils which owners could use to put unique images on their animals. The range, particularly in the stencil arena, was expanding at a rapid rate.
Pet Paint was still in its early stages when it was pitched to the Shark Tank. It had made just $5,000 worth of sales in 2012 however the company was growing at a rather rapid rate. This intrigued the Sharks. They believed that there was a lot to be made from this particular product due to the high demand of dog costumes and pet accessories. They noted that many households in the United States own a dog. They also noted that the market for pet accessories was worth millions each year and that Pet Paint could quite easily make a name for itself in the marketplace with the right marketing team behind it. However they also believed that at this stage of business the offer was probably going to be far too risky for them and thus many Sharks quickly pulled away from the investment discussion. This left just one Shark left to make an investment offer.
Abe Geary decided to turn down the investment of $200,000 equity in the company. Abe believed that his business was worth far more than what Barbara Corcoran was willing to value it at. It is very rare for a business owner to walk away from the Shark Tank after receiving an offer. Abe believed that Pet Paint did not need an investor at this type of value. This was demonstrated by the fact that sales went up considerably after the airing on Shark Tank and sales had yet to dwindle since that point. This was clearly an investment which the Sharks should have made.
Abe Geary turned down Barbara Corcoran's offer of $200,000 in exchange for 60% equity in the company.