Season 5 | Episode 502 | EP502
In Season 5, Episode 2 of Shark Tank, Amber Lee Forrester approached the Sharks seeking an investment of $150,000 in exchange for 33% equity in ‘Kane and Couture’. The company is based in New York.
Kane and Couture is a pet ‘lifestyle brand’. They primarily deal with the manufacture and distribution of pet accessories such as dog collars, pet clothing, dog bow ties and other designer dog clothes. The main aim of the brand is to distribute pet products which are slightly more fashionable than the norm. All accessories have been designed with ‘urban chic’ in mind and are supposedly perfect for those who wish for their pet to be an extension of their own fashion style. Amber has received $90,000 in sales in her first year. Her main sales channels are through a small spot in Macy’s as well as distribution to a small amount of pet stores in the United States. She makes the claim that she has a number of orders in for the holiday season already. She also states that she has pending orders from some top retailers in the United States but no hard orders as of yet. She anticipates making $1.8 million in sales over the holiday season. Upon hearing the level of sales Amber has achieved many Sharks pull out of the running. This is not down to the lack of sales. It is down to the fact that they do not believe that Amber is able to achieve the huge jump in sales to $1.8 million in such a short period of time. They believed that at this stage the business valuation is nowhere near what Amber is claiming.
Daymond John and Lori Greiner partnered up to offer $75,000 each in exchange for 40% equity in the business. This would be in addition to purchase order financing for the first set of orders placed through Kane and Couture. This should hopefully allow the company to expand at a rapid rate. The offer of $150,000 was dependent on the company achieving $300,000 in sales.
Amber Lee Forrester left the Shark Tank with an investment of $150,000 from Daymond John and Lori Greiner. This was in exchange for 40% of the company. She would only receive the investment upon the company achieving $300,000 in sales. Amber believed that she would be able to achieve these sales by the end of the year.
Daymond John prefers to invest in people; not companies. In order to secure an investment with Daymond you’ll need to communicate value as to how it will enrich lives, leverage portfolios or bring in money. Avoid self-fulfillment statements if you want him to take the bait.
Lori Greiner has helped launch over 400 products with a 90% success rate on new items launched. Lori looks for products that solve a problem, can be sold at a reasonable price and are appealing to the mass market.