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

Summary

In this captivating episode of 'Shark Tank,' Melissa Carbone pitches her horror-themed entertainment company, 1031 Productions, seeking $2 million for a 10% stake. She highlights the success of the Los Angeles Haunted Hayride, generating $1.8 million in 17 nights, and introduces the Great Horror Campout. Despite skepticism from the sharks regarding her $20 million valuation and future expansion risks, Melissa's passion and expertise shine through. After negotiation, she secures a deal with Mark Cuban for $2 million in exchange for 20%, marking a significant step for her company's growth.

Takeaways

• 😀 Melissa Carbone, from 10 31 Productions, pitches her horror-themed entertainment company on *Shark Tank*, seeking $2 million for 10% equity.
• 🎃 The flagship attraction is the Los Angeles Haunted Hayride, which is designed to provide a terrifying experience through pitch-black woods.
• 💰 The company generated approximately $1.8 million in revenue during its 17-night run in October, selling out every night with a maximum capacity of 1,800 attendees.
• 🔄 Carbone plans to expand with new attractions, including the Great Horror Campout, an overnight immersive horror camping experience.
• 📈 The pitch includes projections for growth, with a new New York Haunted Hayride planned and expansion to 10 cities on the West Coast.
• 📊 Carbone highlights a profit of about $600,000 after expenses from the Los Angeles Haunted Hayride, with future potential for increased revenue.
• 🎤 Carbone's background in marketing at Clear Channel adds credibility to her ability to effectively promote the attractions.
• 🤔 Investors express skepticism about the $20 million valuation, believing it to be overly optimistic given projected revenues and risks involved.
• 🚀 Mark Cuban initially offers $2 million for 40% equity, but they negotiate to a final deal of $2 million for 20% equity.
• 💡 The pitch illustrates the challenges of balancing ambition with realistic assessments to attract investor interest in high-risk entertainment ventures.

Q & A

What is the main focus of 10 31 Productions?

10 31 Productions is an entertainment company that specializes in creating, owning, and producing live attractions in the horror genre.

How much is Melissa Carbone seeking from the Sharks and for what percentage of her company?

Melissa is seeking $2 million in exchange for 10% of her company.

What is the most popular attraction offered by 10 31 Productions?

The most popular attraction is the Los Angeles Haunted Hayride, which provides an immersive horror experience in a pitch-black wooded area.

How much revenue does the Los Angeles Haunted Hayride generate during its operational period?

The attraction generates about $1.8 million over the 17 nights it operates in October.

What are the production costs associated with the Los Angeles Haunted Hayride?

The production cost for the Los Angeles Haunted Hayride is approximately $1.2 million.

What new attraction is Melissa planning to launch, and what is its concept?

Melissa is planning to launch the Great Horror Campout, which is an overnight immersive camping experience themed around horror, allowing participants to engage in various scary activities.

What marketing strategies does 10 31 Productions employ?

The company spends about $300,000 on marketing, utilizing radio advertising and leveraging Melissa's background in marketing to maximize their promotional efforts.

How many unique individuals attend the Los Angeles Haunted Hayride each year?

The attraction attracts approximately 50,000 attendees each year, and they have been increasing their maximum capacity to accommodate more visitors.

What were the Sharks' main concerns regarding the valuation of the company?

The Sharks expressed skepticism about the $20 million valuation, questioning the sustainability of revenue projections and the high-risk nature of launching new attractions.

What deal did Melissa ultimately secure with the Sharks?

Melissa countered an offer of $2 million for 40% equity with an offer of $2 million for 20%, and they agreed on that deal.