Daymond John takes risky ‘Shark Tank’ deal after 10-year-old shows Richard Branson how to code in wild twist
When founders step onto the ‘Shark Tank’ stage, they usually rely on hard numbers (sales, margins, market reach) to convince the sharks to invest. But every once in a while, a pitch captures attention for something bigger than profit. That was the case when entrepreneur Sharmi Albrechtsen introduced her company, SmartGurlz. It’s a startup with a mission to change how young girls interact with technology. Albrechtsen walked into the tank seeking $200,000 for a 5% stake in her company, a bold valuation that placed SmartGurlz at $4 million. But her product wasn’t just another toy line.
It was a new way of inspiring girls to dive into fields like coding, engineering, and robotics. At the heart of the brand are dolls that can be controlled through an app called SugarCoded. By giving simple commands, users can program the dolls to move, turn, and even dance. It was a toy that doubled as a learning tool, designed to make coding accessible and fun for children. To bring her pitch to life, Albrechtsen invited two young girls, aged 9 and 10, to showcase the dolls in action. With ease, the kids used the app to guide their dolls through a synchronized routine, leaving the sharks visibly impressed.
Guest shark Richard Branson was so intrigued that he joined them on stage, learning firsthand how coding translated into play. The business already had momentum. Despite being on the market for less than six months, SmartGurlz had generated $250,000 in revenue. Albrechtsen said that she also held a provisional patent and believed the technology could be licensed beyond toys, expanding into broader educational tools. On paper, it looked like a promising venture, but the high valuation raised eyebrows. The sharks weighed in; Robert Herjavec and Lori Greiner, both familiar with the pitfalls of the toy industry, were quick to step aside.
They acknowledged the product’s charm but warned that the toy business was fiercely competitive and brutal. Mark Cuban echoed the concern, criticizing its reliance on retail distribution and noting the challenges of scaling in such a crowded market. Even Branson, who had enjoyed the demonstration, admitted that this was not an area where he could add much value. That left only one shark willing to make a move: Daymond John. John was drawn not only to the mission of encouraging young girls in STEM but also to the potential of licensing the technology behind the dolls. He offered $200,000, but for a hefty 30% equity stake, as per Market Realist.
For Albrechtsen, the decision was tough. Giving away nearly a third of her company was far beyond the 5% she initially envisioned. Still, without competing offers on the table, she entered negotiations. After some back-and-forth, John agreed to lower his ask to 25%, sealing the deal at $200,000 for a quarter of the company, according to Shark Tank Recap. The outcome may not have been exactly what Albrechtsen hoped for when she entered the tank, but she walked away with more than just funding. By partnering with John, she gained a seasoned mentor with expertise in branding and licensing. These skills could help SmartGurlz expand far beyond retail shelves.
