Shark Tank Season 16 aired its latest episode 6 on ABC on November 22, where Todd Graves featured as the guest shark for the second time. This time on the show, Graves locked in two strategic deals with Pepper Pong by Tom Filippini and Kaans Design by Kenny and Ashley Green.
The shark was genuinely impressed by the innovative and competitive spirit demonstrated by the founders of Pepper Pong. Recognizing their potential, he decided to leverage his expertise and investments to help them succeed. However, Pepper Pong did not make a stellar impression on the sharks right away, primarily due to their financial figures, which raised concerns.
The founders disclosed that the production cost of the product, along with a customer acquisition charge ranging between $21 and $22, brought their total costs to approximately $81 to $82. In stark contrast, the retail market price for their product was set at $99.99. This pricing situation led the sharks to question the viability of the venture, as they could not foresee a significant profit margin.
Todd Graves invested solo in Pepper Pong and Kaans Design in Shark Tank season 16
Despite many challenges, Todd Graves, the founder of the fast-food chain Raisin' Cane's, took a leap of faith and opted to invest in the Pepper Pong product in Shark Tank. He believed that with his experience in transforming social media marketing strategies, he could turn the product's fortunes around. Ultimately, Todd struck a deal worth $150,000 in exchange for a 17.5% equity stake in the company, showing his confidence in the founders' vision.
In addition to his interest in Pepper Pong, Todd was also drawn to another venture: Kaans Design. The founder of Kaans Design aimed to create a family-friendly brand based on screen printing technology. However, the company faced significant hurdles, including a high customer return rate and cash flow constraints, which led the founders to seek both investment and guidance from potential partners.
As they presented their pitch, other sharks decided to bow out of the discussions due to the low profit margins associated with the product or a lack of enthusiasm for the fashion industry. Nonetheless, both Daymond John and Todd Graves expressed interest in Kaans Design.
Daymond chose to provide mentorship and guidance to the founders without entering into a financial deal, believing that his experience could be invaluable to them.
In a more hands-on approach, Todd Graves stepped forward with a proposal: he offered the founders a loan of $75,000 in return for a 10% equity stake in their venture, aiming to help them navigate their financial challenges while becoming a part of their journey.
The founders, Jeeny and Ashley were overwhelmed by Todd's offer and trust and mentioned that "they could not have asked for a better shark". As of now, Todd Graves has made investments in 4 ventures in Shark Tank which amounts to nearly $700,000. He invested in Rigstrips and Topsail Steamer during episode 2 of the show.
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Shark Tank Season 16 Episode 7 will air on December 13, 2024, on ABC at 8 pm ET/PT.
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