The best sales records or profit margins may be considered essential on "Shark Tank" to bag investments but that isn't always the case. In some exceptional cases, sharks have made it clear that all you need is a good idea and a strong pitch. That’s exactly what happened in an earlier episode of the show when celebrity investor Barbara Corcoran, impressed by nascent entrepreneurs Krissy Pruske and Rachel Lincoln, offered them a fine deal for a product that was not even in production at that point.
What impressed Corcoran was a simple yet fantastic idea called the “Space Traveler,” which is a children’s car seat prototype that almost resembled a tent that could be used to separate two kids from fighting inside the car. The contraption also boasted various pockets that could be used for storing snacks, beverages, toys, and more. Come to think of it, there was nothing of the sort in the market at the time.
The only reason why none of the other sharks offered a deal was its non-existent portfolio. The product was a prototype. It had not been in the market so it is difficult to ascertain what kind of demand it would generate. To be fair, the safer option for an investor would be to back out in this scenario. However, as the old saying goes, fortune favors the brave and Corcoran was following exactly that.
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Pruske and Lincoln had asked for a $100,000 investment in exchange for a 33.3% stake in their company. Corcoran agreed to those terms under the condition that she would receive a $2 per unit royalty until the initial investment was repaid. As expected, the entrepreneurs agreed and it made for a heartwarming on-screen moment. For the celebrity investor, this was not the first time she put her trust in an unproven product.
“We had two crazy guys, brothers, on last year,” she said as per CNBC. “They pitched a stupid product that I didn’t even get. It was a Comfy, a sweatshirt-slash-blanket with a hoodie, and I didn’t get the product, but I liked the guys. And nobody wanted to invest. There were no proven sales. And The Comfy today, with my help, is doing $150 million in sales.”
Lincoln and Pruske also displayed extraordinary courage and faith in their ability to deliver an effective pitch. Not everyone would be willing to pitch a prototype on the big stage. However, they had their reasons for doing so. They revealed their past experiences with investors that did not go well. Pruske even said that an invention of theirs had been stolen and put in major stores. “We learned our lesson,” Lincoln expressed.
Such moments when small businesses with great ideas get funds and support are what make "Shark Tank" the massive success that it is. However, getting to where Pruske and Lincoln reached, certainly was no ordinary feat.
