Shark Tank USA Season 16 Episode 05

Shark Tank USA is back with the highly awaited Episode 05 of Season 16. The episode brought a fresh wave of innovative startups, all eager to pitch their game-changing ideas. The episode was packed with excitement as entrepreneurs showcased their groundbreaking concepts and hoped to secure investment and support from the Sharks. As always, the Sharks were ready to dive deep into the business models, questioning profits, scalability and potential for growth.  The Sharks had tough decisions to make about which ventures were worthy of their partnership with their sharp insights and high expectations. Let’s dive into the highlights of this episode and see which entrepreneurs walked away with the deals of their dreams.

The panel of Sharks for Shark Tank USA Season 16 Episode 05 includes:

Mark Cuban:  Owner of Dallas Mavericks and the author of How to Win at the Sport of Business 

Lori Greiner: Known for the QVC show Clever & Unique Creations 

Kevin O'Leary: Founder of O'Leary Ventures

Rashaun Williams: Atlanta Falcons limited partner and Venture Capitalist

Barbara Corcoran: An investor, syndicated columnist, television personality and Founder of The Corcoran Group.

Contestant No. 01 of Shark Tank USA Season 16 Episode 05: ChompShop

Shark Tank USA Season 16 Episode 05 kicked off with a fantastic, innovative and fun pitch of Kausi and Max, Founders of ChompShop.

What does ChompShop Foods do?

ChompShop offers a safe and innovative way for kids to explore creativity and STEM skills through cardboard crafting. ChompSaw is their signature product. It works like a high-speed hole punch which allows kids to cut cardboard easily without the risk of injury. The company’s product line includes various accessories designed for safety and fun, such as a cardboard hole punch, circle cutter, angle guide and fence. All the products of ChopShop are aimed at helping young makers build 3D projects and bring their ideas to life.

What did Sharks say?

 The Sharks were impressed by the founders' innovative idea.

Shark Kevin said the founders hadn't yet delivered a product or received any reviews. He offered $250k for 20% reflecting uncertainty in future of the startup.

Shark Rashaun said the founders are great but felt it was too early for him to invest.

Shark Barbara was impressed by the solid attitude of the founders and believed in founders vision, so she offered $250k for 20%.

Shark Mark said the founders have risks in manufacturing but believed in the founders as they are product designers. He further added that the product has a great profit margin but future sales are uncertain, so he offered $250k for 15%.

Later Shark Lori joined the offer with Mark and together they made a deal with the founders.

Contestant No. 02 of Shark Tank USA Season 16 Episode 05: Chalkless

The next pitch in line for Shark Tank USA Season 16 Episode 05 was presented by Greg and James, Founder of Chalkless.

 What does Chalkless do?

Chalkless sells grip enhancer powder that helps athletes improve their hold in various sports. Chalkless unique granular formula absorbs oils and repels moisture and creates a thin, transparent layer on the skin or equipment that increases grip. Chalkless is used by athletes in sports like basketball, football, tennis, golf and CrossFit. It can be applied to hands or equipment like racket handles and gymnastic grips. It offers long-lasting grip which goes on clean and dry and washes off easily with soap and water. It is mess-free and leaves less residue and provides a better, more durable grip unlike traditional chalk.

What did Sharks say?

 Shark Mark dropped the deal as the founders refused to share the product’s unit cost, he was annoyed as the founders shared the profit margin but didn’t clearly disclosed the product's initial cost.

Shark Rashaun said he liked the product but felt it wasn't the right fit for his investment.

Shark Barbara & Lori opted out as they weren't passionate about the product and didn't see it aligning with their investment interests.

Shark Kevin said the valuation of the startup is unrealistic but he offered $400K for 4% equity and a $2.50 royalty per unit until he recouped $4 million in revenue. After that, the royalty would drop to $0.25 per unit for perpetuity.

Later, Shark Rashaun joined Kevin's offer as he figured he could work with royalty & leverage his connections with athletes who could use and recommend the product.

The founders accepted the offer and teamed up with Sharks Kevin and Rashaun.

Contestant No. 03 of Shark Tank USA Season 16 Episode 05: Creators Camp

The next pitch in line for Shark Tank USA Season 16 Episode 05 was presented by Kai, Cazden and Jacky, Founders of an interesting startup named Creators Camp

What does Creators Camp do?

Creator Camp is company that hosts summer camps for kids with fun subjects like "Hollywood Filmmakers," "LEGO and Clay Animators," "Minecraft Modders and Coders," and more. They are on a mission to reorient children's relationships with technology from one of consumption to one of creation by teaching kids media arts with their summer programs.

What did Sharks say?

 Shark Mark said that his foundation runs a national AI boot camp for kids and investing in this startup would create a conflict of interest.

Shark Lori said she didn't see it as the right investment for her.

Shark Kevin said $350K investment is too much for him to invest in such startup, he would have considered it if the investment offer had been lower.

Shark Rashaun said he typically invests in businesses with fast growth potential so that he can cover all the losses. He figured the Startup would take a long time to scale, so he opted out.

Shark Barbara suggested that the startup could generate more revenue by turning it into a franchise.  They can train the people to run franchises and it would solve more problems for parents in the USA. She offered $350k for 25% but later narrowed it down to 20%.

The founder negotiated the deal for 15% but ultimately settled for 18% and joined hands with Shark Barbara.

Contestant No. 05 of Shark Tank USA Season 16 Episode 05: Y'all Sweet Tea

The next and final pitch in line for Shark Tank USA Season 16 Episode 05 was presented by two BFFs named Darien Craig and Brandin Echols, Founder and Y’all Sweet Tea.

What does Y'all Sweet Tea do?

Y'all Sweet Tea sells an authentic Southern sweet tea at home. Their custom tea blend comes with a family recipe on the bag which allows people to adjust the sweetness to their taste. The company also offers flavoured teas like half tea and half lemonade in flavours such as strawberry, watermelon, peach, lemon and raspberry. Their product is available in both caffeinated and decaffeinated options. Y'all Sweet Tea comes in gallon and half-gallon bags, with 10 and 15 tea bags per bag, respectively. The brand aims to bring the Southern sweet tea experience to everyone.

What did Sharks say?

All the Sharks praised the founders for their strong social media marketing and business strategy.

Sharks Rashaun offered $500k for 10%.

Sharks Kevin was impressed by the social media marketing game of the founders. He joined Shark Rashaun offer but for 20% stakes for a $500K investment.

Sharks Lori offered to join Shark Rashaun offer, she added that she has experience in groceries products and she could make it big.

Sharks Kevin revised the offer to match with Shark Lori and Rashaun for 15%. The founders negotiated for $250k for 15%.

The founders countered for $750K for 15% to that Shark Rashaun said the founders have three options: his offer alone, the combined offer with Kevin, or the combined offer with Lori.

The founders chose the offer from Rashaun and Lori for $5ook for 15% and cracked the deal.

Conclusion - Shark Tank USA Season 16

Shark Tank USA Season 16 Episode 05 featured some exciting pitches. Each entrepreneur passionately presented their startups and negotiated for the best future for their businesses. The Sharks didn’t hold back and questioned the Founders on every decision and pointed out their mistakes while offering valuable advice for growth. In the end, all four startups successfully secured deals and also gained some great feedback and insights for the future. It’s clear that the journey isn’t over and we’re eager to see what happens next in Episode 06 of Season 16.