Kevin Williams and Glenn Archer from Alexandria, Virginia and creators of Brush Hero, went into the Shark Tank last night on ABC.
Each week on Shark Tank, which is based on the Canadian series Dragon’s Den, budding entrepreneurs are given the chance to pitch their emerging companies in front multi-millionaire and billionaire investors.
In their pitch last night, the duo stated that Brush Hero is a water-powered, spinning detail brush powered by water (“the simplicity of a garden hose”) that cleans tires, outdoor furniture and even airplanes! According to the duo, the basic version of the self-cleaning brush costs $34.99, and aims to make cleaning more simple.
The duo went into the tank seeking a $500,000 investment for a 10% stake in Brush Hero. This meant the duo valued the company at $5 Million dollars.
The sharks were impressed by their sales – $3 Million dollars in the last year, with the majority being sold online – as well as their COGS (cost of goods sold) which is about $6.50. With a profit of $300K-$400K on the sales of Brush Hero, immediately, shark Keven O’Leary chastised the duo over their valuation. Mr. Williams countered that the valuation took into account their projections for the next year which is $10 Million dollars. O’Leary shot back saying that in the private equity world, their valuation would be about $1.7 Million – meaning the duo would need to give up 33% of their company based upon the money they were asking for.
The duo stated their brush was the only one on the market that spins with that amount of torque. Regardless, neither shark Robert Herjavec or Mark Cuban were interested in helping the entrepreneurs while shark Kevin O’Leary went out over the valuation as the duo were unwilling to part with 33% of their company.
While Mr. O’Leary had issues with Brush Hero’s valuation, shark Daymond John and Lori Grenier were interested – interested enough that each proposed a deal to the entrepreneurs. Mr. John proposed giving the duo $500K for a 25% equity stake – valuing the company at $2 Million dollars. Ms. Grenier made the same offer while proposing the brush would do well on her signature platform QVC. The duo countered at $500K for 20% which both sharks declined.
The duo then stepped out of the tank to discuss the offers, which longtime fans know can be bad news for the entrepreneur.
While out of the tank, Mr. Herjavec noted there were similar products on the market. Because of this, shark Daymond John went out and shark Lori Grenier changed her offer to be half ($250K) a loan and the other half $250K for a 25% equity.
The duo ultimately walked away without accepting her offer.
ICYMI, you can stream the episode here and watch the Brush Hero pitch.
Here’s a look at some of the uses for Brush Hero. Would you use Brush Hero? Sound off in the comments below!