Shark Tank Rareform Accepts Deal with Kevin O’leary for $300,000

Rareform

Last into the tank are Alec and Aric Avedissian of Rareform, seeking $300,000 for 10 percent equity.

Rareform repurposes billboard vinyl into stylish bags and backpacks. Because billboard vinyl is durable, waterproof, lightweight and eco-friendly, according to their website, it makes for the perfect material to create one-of-a-kind designs. According to their website, they are “currently repurposing 20,000 lbs a month into one-of-a-kind products,” which include surf bags, iPhone cases, wallets, totes and more. Products range from $28 for phone cases to $112 for a duffle bag. They also offer custom orders.

The sharks like the idea but they find communicating the actual message challenging. Mark Cuban thinks it will be difficult to tell the story behind the products and their billboard vinyl material. They have done $1.1 million in sales in three years, but took a loss last year.

Barbara Corcoran goes out, followed by Cuban for scalability issues. Lori Greiner loves the eco-friendly aspect of the company but sees the uniqueness of each product challenging given that one design could not be duplicated exactly. She goes out, as does Robert Herjavec.

Kevin O’Leary decides to offer $300,000 as debt at eight percent interest over 36 months for 10 percent equity. They counter 15 percent as straight equity, but O’Leary would ask for 40 percent if the deal only offered an equity stake. Ultimately, they accept his original offer.

Each week on “Shark Tank,” budding entrepreneurs have the opportunity to pitch their emerging business to six multi-millionaire and billionaire investors, known as sharks: Mark Cuban, owner of the Dallas Mavericks; Daymond John, fashion mogul and founder of FUBU; Kevin O’Leary, self-proclaimed Mr. Wonderful and founder of O’Leary Financial Group; Barbara Corcoran, real estate maven; Lori Greiner, queen of QVC; and Robert Herjavec, technology guru and founder/CEO of the Herjavec Group. Venture capitalist Chris Sacca is also slated to appear as a guest shark this season.

“Shark Tank,” which is based on “Dragons’ Den,” is produced by Mark Burnett and first debuted in 2009. To date, the sharks have invested more than $87 million in various companies after engaging in numerous bidding wars and shark fights. A new episode airs each Friday at 9 p.m. on ABC.

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Source: Business 2 Community