Lindsey Laurain came into the Shark Tank seeking a $1 million investment for 5% of her company wearing a shirt and no pants (technically a dress).
Her company was EZPZ and the product she was pitching was the Happy Mat which is a silicone rubber place mat for kids.
The price on the mat was $24.99. Wholesale is $12.50 and her cost is roughly $6.25.
With a valuation of $20m, the Sharks were ready to get right into her sales numbers.
Before Lindsey got into sales, she prefaced that she wanted to do 5x that valuation. That’s as good a preview as any as to how crazy the rest of the presentation was.
When she announced their gross sales were $1.25m this year, Mr. Wonderful exclaimed what we were all thinking:
To justify the lack of sales vs. valuation, she started saying Australia a bunch of times, mentioned pending patents, and kept alluding to purchase orders/getting into stores.
The insanity continued when she revealed she only netted 14%. Also, she based her valuation on her projections over the next five years.
She added that she thought they would make $10m in sales in the next year. Kevin cleverly turned this around on her a few moments later.
Kevin made her an offer of 5% for $1,000,000 with the catch that if she didn’t hit her $10m marker – like she was projecting – then he got 20% of the company.
The only problem is Kevin’s offer gave her ridiculous valuation too much weight. He should have upped the ante. Either way, he made her a “put your money where your mouth is” and she ultimately choked on her own words.
Barbara actually gave her her valuation (crazy) with $250,000 payments staggered over 4 years.
She turned both offers down. She said:
“I’m sorry. Culturally I’m trying to build a company that is the right fit for everybody so I’m thinking maybe this isn’t the right fit so I will pass.”
Horrible presentation. Between her crazy valuation, empty reasoning, constant yups, and ridiculous facial expressions, Lindsey did EZPZ a great disservice.
And this is despite having a great concept. The product looked awesome and like it would really solve problems.
[easyazon_infoblock align=”center” identifier=”B00PL1KV70″ locale=”US” tag=”bgr00-20″]
I think it was overpriced by at least $5 but if those patents clear, she could really have something.
She’s going to get a lot of free advertising from her Shark Tank appearance but the problem is the focus will always be on her presentation.
The delusional valuation, unwillingness to put her money where her mouth is, and ultimate cop-out answer for rejecting Barbara and Kevin casts a negative charge on the company.
She would have done really well to partner with one of the two Sharks. They actually caved to her insane valuation and would have helped her a great deal. Getting Kevin to help with the legal side alone would have been a tremendous plus.
I can’t tell if she went on the show just for the free advertising. If she did, it might work against her.
Two people already left 1 star reviews on Amazon saying they wouldn’t buy the product based on her appearance.
Click here to see one of the comments.