‘Shark Tank’ entrepreneur turns pitch into a live horror show — and terrifies the panel into a $2M deal
Melissa Carbone, the founder of Ten Thirty One Productions, appeared on 'Shark Tank' with one goal: to bring immersive horror experiences to life. She surprised the Sharks by bringing on stage a few horrific-looking creatures, as if straight out of a William Friedkin film. The company offered live horror entertainment to customers who love a good scare. During the pitch, she told the panel that her most popular show was the 'Los Angeles Haunted Hayride,' and in a 17-day seasonal business, the company made $1.8 million in sales alone in October 2013, which impressed the Sharks. While she made a bold ask for $2 million for 10% equity in her company, she also ensured that the numbers added up.
When the investors asked for the breakdown, Carbone revealed that it cost the company $1.2 million to produce a haunted hay ride in LA, totalling a gross margin of $60,000. She explained that she is looking for a Shark investment so that she can expand beyond LA and launch new hayrides in other locations, such as New York. Kevin O'Leary was the first to go and told Carbone, "I am trying to make the leap now," and questioned the valuation of the company. Though the Carbone defendant herself said that she had high hopes for the company and is aiming for $3.6 million profit in 2014, Mr. Wonderful remained unconvinced and opted out.
Robert Herjavec also pointed out, "For the projections that you have for next year, everything has to work out perfectly all the time." Suspecting the idea to be too good to be true, he also bowed out. Lori Greiner also dropped out, stating that at that point it was difficult for her to see getting the $2 million back. This left Mark Cuban and Daymond John still in the game. Carbone persisted, "The risk is not as great as you would probably think; we will launch these attractions no matter what." Hearing this, John made her an offer: $2 million for 40% equity, leaving Carbone and the other Sharks stunned.
But the entrepreneur wasn't willing to give in that easily. She asked if she could counter. When John said, "Yes," she revised the offer and asked for $2 million in exchange for 20% equity. At the same time, Cuban jumped in and said, "I would take that offer." Carbone sealed the deal with Cuban, and fortunately for her, there was no turning back. Later, in an Interview with NBC News, Carbone shared the passion behind her business, "People love to be scared, but in a safe environment."
She added, "To be scared when you can actually be hurt or when there is real danger, that's obviously not fun. But that adrenaline of being scared in a safe environment--people will consume that all day long." However, all the years of hard work came tumbling down when an event-goer was injured during one of the company's events, followed by a long-running lawsuit, as reported by Shark Tank Recap. Eventually, the company was overtaken by Thirteenth Floor Entertainment, the world’s largest haunted house company.