Top 3 Pitches That Were Offered $1M or More! | Shark Tank US | Shark Tank Global

Summary

In this episode of Shark Tank, Melissa Carbone from 1031 Productions seeks $2 million for a 10% stake in her horror-themed live attractions business, highlighting successful seasonal events like the Los Angeles Haunted Hayride. Despite impressive revenue, the sharks question her $20 million valuation. Yellow Leaf Hammocks, a socially conscious company, aims to alleviate stress with their high-quality, handmade hammocks, offering a unique, relaxing experience. They secure a $1 million investment for 33% equity after an initial ask of $400,000 for 7%. Lastly, Spark Charge introduces a portable EV charger to combat range anxiety, securing a $1 million deal for 15% equity after an initial 6% offer.

Takeaways

• 🎭 The entrepreneur, Melissa Carbone, seeks $2 million for 10% equity in her horror entertainment company, 1031 Productions.
• 👻 1031 Productions is known for the Los Angeles Haunted Hayride, a popular seasonal attraction, and the Great Horror Camp Out, a summer event.
• 💸 The company's valuation of $20 million is based on annual revenues, with the Haunted Hayride generating $1.8 million in 17 days.
• 📈 Melissa plans to expand with a New York Haunted Hayride and is in the 'launching new attractions' phase, which is capital-intensive.
• 🗣️ The Sharks express concern over the high valuation and the business's reliance on seasonal attractions, questioning the scalability and risk.
• 🤝 After negotiations, Melissa agrees to a deal for $2 million in exchange for 20% equity, highlighting the Sharks' interest in her business model.
• 🌴 Yellow Leaf Hammocks, presented by Rachel and Joe, offers a socially responsible hammock business that empowers rural women in Thailand.
• 🌟 They seek $400,000 for 7% equity and have a product line ranging from $49 to $299, with a flagship product, the Hammock Throne, priced higher.
• 🌐 Yellow Leaf has strategic partnerships, including a deal with Virgin Voyages, and is projected to double their business through such alliances.
• 📊 The company has shown profitability, with $110,000 net income on $860,000 in revenue the previous year, aiming for $1.3 million in sales the current year.
• 🔋 Spark Charge introduces a portable and modular EV charger to combat 'range anxiety', seeking $1 million for 6% equity in their innovative solution.

Q & A

What is the name of Melissa Carbone's company and what does it do?

Melissa Carbone's company is called 1031 Productions. It creates, owns, and produces live attractions in the horror space.

What is the most popular attraction produced by 1031 Productions?

The most popular attraction produced by 1031 Productions is the Los Angeles Haunted Hay Ride.

How much revenue does the Los Angeles Haunted Hay Ride generate in 17 days?

The Los Angeles Haunted Hay Ride generates approximately $1.8 million in 17 days.

What is the Great Horror Camp Out and how does it differ from the Haunted Hay Ride?

The Great Horror Camp Out is an overnight, completely immersive camping experience with a horror theme. It is different from the Haunted Hay Ride as it is designed to be a summer attraction and aims to make the company not just seasonal.

What is the cost structure of producing the Los Angeles Haunted Hay Ride?

It costs $1.2 million to produce the Los Angeles Haunted Hay Ride, leaving a free cash flow of $600,000 after the event.

How does 1031 Productions market their attractions?

1031 Productions spends about $300,000 on advertising, with a focus on radio marketing, given Melissa Carbone's background in running Clear Channel Los Angeles.

What is the valuation that Melissa Carbone is seeking for her company on Shark Tank?

Melissa Carbone is seeking a $20 million valuation for her company, seeking $2 million for a 10% stake.

What is the final deal that Melissa Carbone agrees to on Shark Tank?

Melissa Carbone agrees to a deal for $2 million for 20% of her company.

What is the name of the product Yellow Leaf Hammocks is introducing to the market?

Yellow Leaf Hammocks is introducing the Hammock Throne, an indoor-outdoor hammock chair.

What is unique about the Yellow Leaf Hammocks business model?

Yellow Leaf Hammocks operates as a social enterprise, working with moms in rural Thailand to create high-wage jobs and produce their products.

What is the sales forecast for Yellow Leaf Hammocks for the year they appeared on Shark Tank?

Yellow Leaf Hammocks is forecasting $1.3 million in sales for the year they appeared on Shark Tank.

What is the business model of Spark Charge and what problem does it solve?

Spark Charge offers a portable modular and ultra-fast EV charger to solve the problem of range anxiety for electric vehicle owners by bringing the charging station to the vehicle.

What are the three core features of the Spark Charge product?

The three core features of the Spark Charge product are modularity, portability, and speed, allowing it to provide 1 mile of charge every 60 seconds.

What is the cost structure for Spark Charge's product and how is it sold to customers?

The cost of goods for each module is roughly $2,500. It is sold with a $1,000 deposit and a $150 monthly fee.

What is the deal offered by the Sharks to the founders of Spark Charge?

The deal offered to the founders of Spark Charge is $1 million for 10% equity, with an additional 2% advisor equity and a board seat.