When James Ambler took his business Paparazzi Proposals to “Shark Tank,” he asked for a $250,000 investment for 20% equity. He told the sharks how his business works, how much money he’s made in sales over the past two years (around $100,000), and how much he thought the company was worth (over a million dollars). Kevin O’Leary did not think the company was really worth that much and stepped back from the deal — for now. Sharks Mark Cuban and Barbara Corcoran (who does not believe in saving money) also dropped out.
Lori Greiner — who was an inventor herself before “Shark Tank” — was interested, but also thought his valuation for the company was too high. She countered Ambler’s initial offer by offering the same investment, but for 50% equity. Ambler did not want to give 50% of Paparazzi Proposals away, so O’Leary stepped back in to join forces with Greiner and provide a new deal: $50,000 investment, a $200,000 loan (as needed), and 33% equity.
Shark Robert Herjavec offered his own deal, but pulled it when Ambler wanted Herjavec and Greiner to join forces. Ambler asked Greiner and O’Leary to drop the equity to 30%. They accepted the change and Ambler walked away with a deal. The deal was never finalized, but that was not the end for Paparazzi Proposals.
Post source: The List
