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Brad Ruffkess appears on Episode 1 of “Shark Tank” Season 10 seeking a $1 million investment for 5% equity of BoxLock. Not only did the airing mark the long-running ABC series’ 200th episode, but it also saw the return of Ring founder Jamie Siminoff as a guest shark, the first time a former “Shark Tank” contestant has returned on the other side of the tank. Will Siminoff’s initial “Shark Tank” experience of being thrown out for a similar concept earn Ruffkess any sympathy points?
Ruffkess explains that the product is still in the manufacturing stage, although it has sold 800 units through pre-sales. Once it hits retail, it’ll price out at $129 and will cost $65 per unit to produce. The team has invested roughly $500,000 into the venture so far. Ruffkess also informs the sharks that his team is working with different carriers such as USPS and FedEx on training programs for drivers.
Predictably, the sharks bring the conversation back around to the massive $20 million valuation. Ruffkess only explains that the product solves a significant problem, but fails to answer as to why the company itself is worth investing such a vast sum. The majority of the sharks exit, feeling that the proposition is too risky. Lori Greiner makes a unique offer to give the $1 million as a loan at an 8% interest rate. Additionally, she wants a royalty rate of Ruffkess’ choice until she recoups $1.5 million, as well as 2.5% equity within the company. Ruffkess attempts to bring Siminoff back in on Greiner’s insistence, but Siminoff refuses. Greiner goes out, leaving Ruffkess without a deal.
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