Join Shark Tank Australia shark Sabri Suby for a weekly roundup of each week’s king or queen of the tank, the pitches that were eaten alive, and an exclusive behind-the-scenes look at the fishiest tank dynamics.
As sharks, we’re always on the hunt for red flags — whether it’s insane valuations, low online conversions, or complex supply chains. So, who swam to victory and who got thrown to the sharks this week?
First in the tank was Sebastian Langton with his van design business, Vanable, which had achieved $2.7 million in sales and has an expected $4 million in revenue for next year.
It sounded promising on paper, but when we looked closer, the waters became murky. Stock flow issues and a sky-high facility expense of $280,000 annually led to a far longer grilling session than you see in the final episode.
Despite the red flags, Davie and I could still see a diamond in the rough. Davie made an offer of a $300,000 loan for a 20% stake. I decided to take a different approach. I countered with $300,000 for a 5% royalty of the topline revenue and a 20% stake, which would later reduce to 15% once the investment was repaid.
But then Seb refused to counter. He gave us absolutely nothing. After realising he wasn’t there to play ball, Internet Daddy said sayonara. You don’t enter shark-infested waters without expecting some level of scrutiny on your valuation, giving me a sneaking suspicion that publicity was the real name of the game.
At just 23, Madison Stefanis came into the tank looking for $300,000 for 10% equity of her reusable film camera business, 35mm Co. With a killer 40,000 units sold and $3.6 million in lifetime revenue in just over 1.5 years, she had an impressive pitch and was clearly an absolute business weapon.
While I offered $300,000 for a 30% stake, Robert and Jane won her over with a joint offer of $300,000 for 17.5% of the business. Madi is the real deal — she is willing to roll up her sleeves and understands what it takes to build a successful brand. If she keeps grinding away at her ROAS (return on ad spend) and building up those retail partnerships, she’ll have an 8-figure business if she keeps executing in no time.
Nevada Smith came into the tank seeking $28,000 for 40% equity of his earphone business, Nevabuds. Despite having 130,000 followers on Facebook, the page wasn’t translating into substantial sales, and Neva Buds was struggling. It’s a stark reminder that even if you do have a decent amount of followers, without the right strategy and expertise in place, you won’t earn a razoo.
Navada wasn’t praying to the internet gods; he had given up on them completely. Not everyone can navigate the complex world of online marketing, and for myself, Robert, Davie, and Jane, it was a risk we simply weren’t willing to take. In the end, Catriona made a deal at $28,000 for a 49% stake in the business. I’ll be watching in the wings to see how that one plays out.
Burleigh Wagon, a rideable beach wagon business, was seeking a whopping $450,000 investment for 10% equity of the business. The product solved a real problem, and with three young kids myself, I could see the appeal.
If I’m sending out the money soldiers I expect them to come back with more, and I just couldn’t see that happening with Burleigh Wagon. Shipping costs were sky-high, and their manufacturing was spread across 14 different factories!
While this sounds like a supply chain nightmare. Davie’s expertise makes him perfectly placed to help Burleigh Wagon wheel its way towards more streamlined operations.
Read more about Shark Tank Australia here.
Sabri is the founder of Australian digital marketing agency King Kong, and author of international bestseller Sell Like Crazy.
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