‘Shark Tank’ founder makes judges fight — then convinces them to team up for $360K deal in intense moment
'Shark Tank' investors don't mind competing against each other to grab a deal in their kitty. During an episode of 'Shark Tank' Season 9, Tom Burden, a full-time mechanic from Celina, Ohio, presented his silicone mat company, Grypmat, in front of the esteemed Sharks Lori Greiner, Richard Branson, Mark Cuban, Daymond John, and Robert Herjavec. In the episode, Burden was seeking $200,000 in exchange for 10% of his company. Eventually, Burden managed to impress the panel with his remarkable pitch, and he ended up sealing a deal with Greiner, Cuban, and Branson for $360,000 for 30% equity.
During his pitch, Burden said, "Sharks, let me ask you a question. Have you ever been inspired by a really good idea when doing maintenance on a fighter jet's machine gun? Well, I have. I'm an F-16 weapons mechanic in the United States Air Force, and I encounter a problem time and time again when working on the top of the aircraft. I'm constantly trying to keep my tools close and my hardware organized. It seems like a simple enough task, but on the aircraft's slick surface, it is nearly impossible."
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Burden further added, "Would you believe me if I told you that in general aviation, to solve this problem, mechanics are using anything from rags, muffin trays, and my favorite, urinal cakes? Yes, hopefully clean urinal cakes, clearly these products just aren't cutting it to solve the problem. I introduce you to the Grypmat; it is a flexible, non-slip tool tray ensuring that your tools and hardware stay in place on any surface. We currently have three sizes: the small, medium, and large, all equipped with the ability to hold tools at up to a 70-degree angle."
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Soon after, Burden gave a demonstration by placing the Grypmat on an airplane nose. When Branson asked about the sales, Burden shared that his company had generated $400,000 in revenue in the first 10 months by selling 10,000 units with a profit margin between $150,000 and $200,000. Then, John made an offer of $200,000 for 20% equity. Shortly afterward, Branson offered $200,000 for 15% equity. Considering the competition, John revised his offer and reduced his equity to 15%. Herjavec also matched the same offer.
Then, Cuban jumped in and said, "Tom, here's what I see. The product sells itself; unlike most entrepreneurs, you have no fear of how it'll sell. What you're missing is infrastructure corporately; you don't have a sales guy. The more you have to deal with all that, the less time you have to do everything else. Well, let me tell you what our offer is. Lori and I together are going to offer $200,000 for 20%, but here's the other part: we'll take over everything. We'll have inventory systems and custom delivery systems for you, so whenever you need to ship it or take over the whole thing, we'll charge you our costs." Following that, Burden asked Cuban, Greiner, and Branson, "Would you do $360,000 for 30%?" In the end, all three Sharks agreed, and Burton walked away with a three-Shark deal.
