Shark Tank Season 16 Episode 5 resulted in investments totaling $1.3 million across four deals, reaching an 80% success rate for pitching companies. The panel in this episode included Mark Cuban, Lori Greiner, Kevin O'Leary, Barbara Corcoran, and guest Shark Rashaun Williams.
Mark Cuban and Lori Greiner partnered to invest $50,000 in ChompShop for 75% equity. Kevin O'Leary and guest Shark Rashaun Williams backed Chalkless with $400,000 for 4% plus royalties. Barbara Corcoran invested $350,000 for 18% in Creator Camp, while Lori Greiner and Rashaun Williams combined again to offer Y'all Sweet Tea $500,000 for 15%.
Kevin O'Leary introduced a complex royalty structure of $2.50 per unit until $4 million, dropping to 25 cents afterward for Chalkless. Barbara Corcoran's Creator Camp deal included future franchise development plans. Mark Cuban and Lori Greiner's ChompShop investment represented the highest equity stake of the episode at 75%.
Four companies secure funding in Shark Tank Season 16 Episode 5
Creator Camp
Digital content creation educators Christopher Cazden Morrison, Kai Forman, and Jacky Chao brought Creator Camp to Shark Tank Season 16 Episode 5, targeting children aged 6-13. Their initial request stood at $350,000 for 5% equity. Barbara Corcoran showed immediate interest in their business structure and growth potential. Through detailed negotiations, Barbara's equity requirement shifted from 25% to 18%, while maintaining the $350,000 investment amount.
Creator Camp's business model includes standard program fees of $2,000, offering early registration discounts at $1,399. The founders shared specific expansion targets, aiming to establish 250 locations by 2030. Their current operations focus on teaching digital content creation skills through structured programs.
The curriculum spans various content creation aspects, including filmmaking, coding, and animation. Barbara's involvement aims to transform the current model into a franchising system, leveraging her previous experience in building franchise businesses. The team demonstrated strong market understanding through their targeted age group selection and comprehensive program structure.
ChompShop
Max Liechty and Kausi Raman, graduates of the University of Pennsylvania's Integrated Product Design program, presented ChompShop with a $250,000 request for 5% equity. Their kid-friendly cardboard cutting tool attracted Mark Cuban and Lori Greiner's attention. The final agreement settled at $50,000 for 75% ownership.
After the Shark Tank Season 16 Episode 5 aired, Lori promoted the product through her Instagram platform, highlighting its safety features and creative applications. The tool allows children to create designs from recycled cardboard materials. Both Sharks recognized the product's potential in the children's crafting market.
Chalkless Athletes
Greg Pope and James Pidhurney introduced Chalkless, reporting $740,000 in current year sales. Their presentation requested $400,000 for 4% equity. The sports grip enhancement product ranges from $24.99 for an 8 gm bottle to $459.99 for dispenser bundles.
The founders maintained strategic control over cost information while confirming a 67% blended margin. Kevin O'Leary and Rashaun Williams structured a deal matching the requested $400,000 for 4%, adding a tiered royalty arrangement. The agreement includes a $2.50 per-unit royalty until reaching $4 million, reducing to 25 cents afterward.
Y'all Sweet Tea
Alabama-based entrepreneurs Darien Craig and Brandon Echols presented Y'all Sweet Tea's financial achievements, including $4 million in annual sales with 20% profit margins. Their marketing strategy included a partnership with Facebook cooking personality Brenda Gantt, who brings 4 million followers.
The founders aimed to expand their tea product line, which includes ready-to-make drinks, cookware, ground coffee, and spices. Lori Greiner and Shark Tank Season 16 Episode 5 guest shark, Rashaun Williams, offered $500,000 for 15% equity. Despite the founders' attempt to secure $750,000, they accepted the initial offer, gaining both financial backing and strategic partnership opportunities.
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Shark Tank Season 16 Episode 6 will air on November 22, 2024.
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