You do not need to be a high school graduate– or an adult– to win over financiers on ABC’s “Shark Tank.”
Take it from Nathaniel Wellen, a 15- year-old business owner who appeared on Friday’s episode of the program. The Los Angeles- based high schooler produced The Duo, an umbrella with a 2nd extendable deal with created for 2 individuals of various heights to stand underneath it easily.
Wellen created the concept at age 8, and partnered with his daddy the list below year to establish and develop the umbrella, and acquire an energy patent for it, he stated. He asked the program’s financier judges for $100,000 in exchange for 10% of his business, which was pre-revenue and just had models at the time of recording.
“That’s a good size for a little compact umbrella,” Lori Greiner stated while evaluating a model. “You’re a great example for kids out there who want to be entrepreneurs,” Mark Cuban included.
The Duo featured a catch: Wellen currently had another partner, weather condition devices brand name ShedRain “They own 49% of the company,” he stated. “They’re going to assist us [with] models, production, circulation … They’re going to get us in shops like Target, Walmart, Kroger and Costco.”
The judges were amazed that Wellen got his collaboration by cold-calling the business and creating a relationship with the CEO. But Shed Rain was currently doing what any financier might do, they stated– with Cuban keeping in mind that Wellen may not wish to take any offer the judges provided.
“If you dilute your equity at all, even 10%, you’re under 50%. And that’s an issue going into what you’re doing,” Cuban stated. “Given the circumstances, you want to stay over 50%. for those reasons, I’m out, Nathaniel — but congratulations on what you’ve done.”
Greiner, Barbara Corcoran and Kevin O’Leary likewise decreased to make deals. O’Leary particularly pointed out Wellen’s age as an issue.
“I’m very impressed with your presentation, but I have a basic rule: I have to be able to call my CEOs 24 hours a day,” O’Leary stated. “I don’t like the fact that you’re in school. What’s your teacher going to say when I call your cell and you’re in class? They’re not going to let you answer, and that really pisses me off.”
That included RobertHerjavec “I love deals where there’s a potential exit already built in,” he stated. “You create this product, you partner with them and it takes off … There’s no way they’re not going to buy you out.”
Herjavec provided $100,000 for 20% of the business. Wellen requested for 15%, and Herjavec countered with 18%. “You’ve got a deal, Robert,” Wellen stated.
On his escape, Wellen provided some guidance for other kid business owners: “Just keep moving. Keep going. Reach for your objectives and perhaps you [too] will negotiate with Robert.”
Disclosure: CNBC owns the special off-network cable television rights to “Shark Tank.”
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