Great replay of some bidding that went on for a bed bug company in our space though not pitched as a natural product. Bed Bug Glue traps by @buggybeds looks like a pretty awesome solution, big congrats on the investment!
As usual, the most action packed segment was saved for last, and Veronica Perlongo and Maria Curcio did not disappoint with the Bed Bugs product called Buggy Bedz. They were asking for $125,000 for 7% equity (~1.8 MM Valuation). They had demonstrated very strong sales in a short time period, $150,000 in 6 months, with a profit of $100,000 on those sales. Most likely a Gross Profit, but it wasn’t specified. They had established sales and orders from companies such as The Home Depot and The Burlington Coat Factory. Buggy Bedz, ths product, had all of the Sharks excited, as the product was protected via patents and trademarking and had demonstrated sales and High Profit Margins. The lesson in this segment is to use Negotiating Leverage. Veronica Perlongo and Maria Curcio had a clear understanding that ALL of the Sharks were interested and as such HAD negotiating leverage. Did they get a chance to use it? No, they didn’t. As Kevin O’Leary was successful in getting collusive cooperation from the other Sharks. O’Leary offered $250,000 for for 25% equity ($1,000,000 Valuation). After a little bit of back and forth, Perlong & Curcio did not successfully counter offer to keep more equity in Buggy Bedz as they could have. Why could they have? Simple, ALL five Sharks were interested. Having Multiple Bidders means that YOU have the Negotiating Leverage. While, it doesn’t seem as they gave away as much equity as Rick Hopper did with hisReaderest, they did squander some negotiating currency. Lesson Learned: You always have Negotiating Leverage when you have Multiple Bidders. Also, with 5 separate investors doing Due Diligence, expect that the final deal for Buggy Bedz will be different from the one verbally agreed to on the set.