SIGNAL VAULT HOOKS TWO BIG FISH
Lori Greiner owns the mass retail market. She owns it through QVC and her contacts at huge outlets like Bed Bath Beyond, Home Depot and Target.
With one phone call, Lori’s promise to make Signal Vault a million dollar brand in one month is quite real.
Someday Kevin O’Leary will take this inventor and marketing power player seriously. Or maybe he does and he’s just showing off for the cameras.
After Kevin makes his play at $200K for a 20% stake or a million dollar valuation, Lori raises the stakes.
She counter offers her original offer of $200K for an 18% stake or $1.1 million valuation with $200K for an 15% stake.
That’s now a $1.3 million valuation.
It felt like she was bidding against herself, but she was trying to squeeze O’Leary out.
Kevin O’Leary doesn’t budge. She knows this. She wants the deal.
Chris does something completely unexpected. He doesn’t choose Lori or Kevin.
He reaches out to Robert Herjavec and does the gutsiest thing ever on ABC Shark Tank:
He reaches out to two investors, Lori Greiner and Robert Herjavec.
Lori says, “you need to sweeten the equity (give us more equity), what’s your counter?
Chris’s final offer is to ask for $250K from Lori Greiner and Robert Herjavec for a 25% stake in the business.
That gives the business a healthy $1 million valuation. Now Chris has covered two, huge, profitable market segments.
The Enterprise segment will be covered with Herjavec’s company and the consumer retail segment with Lori Greiner’s company.
Kevin O’Leary is whining in the corner saying “financial services is where this should be” but Chris is thrilled with the deal.
In essence, his second investor, Robert Herjavec only cost him an additional 5% of the business. That’s a sweet deal for nabbing a billionaire.
In the first 20 minutes Signal Vault was on QVC, they sold out.
Are you a believer yet?
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