Kevin O’Leary shows who’s boss with a bold move after ‘Shark Tank’ contestants make him wait
It seems like the 'Shark Tank' investor Kevin O'Leary is a tough cookie, and sometimes, the contestants have a hard time negotiating an offer with him. During an episode of 'Shark Tank' Season 10, Jen Chin and Ben Baltes pitched ToyBox, a compact, app-controlled 3D printer made especially for kids, in front of the esteemed Sharks Mark Cuban, Lori Greiner, Daymond John, Jamie Siminoff, and O'Leary. In the episode, Chin and Baltes were seeking $150,000 in exchange for 5% of their company. Ultimately, O'Leary offered a deal to Chin and Ben, but things took a turn when they made him wait.
During their pitch, Chin said, "When I was a kid, I used to build cities out of mud in my backyard. Kids have always had a ton of potential and a huge appetite to create, but often lack the opportunity to build their vision." Soon after, Baltes chimed in, "So we've come up with a more powerful way for kids to build and design the toys they want. Introducing ToyBox, the first of its kind 3D printer and creativity platform built entirely with kids in mind, and with the ToyBox app, you can instantly start printing with absolutely no prior training."
Then, Chin shed light on the working of the kid-friendly printer and explained, "Find the toy you want and press print. ToyBox will instantly beam down your toy and start printing, and if you're feeling more creative, you're in luck. Welcome to the Creator space of the app, where kids can design and print their own toys. So whether you're drawing simple things or designing your own Block Buddies, ToyBox can fuel your creative needs."
When asked about the sales of their printer-friendly company, Baltes shared, "Right now, we're focusing just on internet sales, primarily sales on our website. We just started selling in September, and we've done over $300,000 in sales since then, and all we do is advertise on Facebook." Shortly afterward, Baltes revealed that the manufacturing cost of one printer was $150, and they sold it for $299.
Eventually, O'Leary made an offer of $150,000 for 10% equity. Before Chin and Baltes could respond to O'Leary's offer, Guest Shark Jamie Siminoff entered the chat and said, "Let me make it easier for you, I love the mission, I have a 9-year-old son, I would love the idea that he would play with this, but I think at $299 I just don't see it yet. Hope you succeed with it, though. I ruin it for you guys, but I'm out as an investor."
According to Market Realist, O'Leary shared, “I want you to know something. If she drops out, that gives me a lot more incentive to get friskier…because you are starting to lose Sharks here. I made you an offer.” Then, Baltes quipped, "I would love to hear your offer, Lori." Meanwhile, Greiner wasn't interested in investing her money in ToyBox. Then, Mr. Wonderful increased his equity to 15% to which the entrepreneurs countered with 12%. Following that, O'Leary asked, “You think the difference is 3%? You either believe that 15% is worth it or not. I bring a lot to the table.” At last, both parties agreed on a 13% stake and 2% in advisory shares.