Highlights
- Tom Callahan pitched Cab 20, a band he manages, on Shark Tank, seeking financial support and industry connections.
- Faced concerns about the music industry’s risks and the exclusion of publishing royalties from the deal.
- Left without a deal despite interest from Kevin O’Leary and Robert Herjavec.
Overview
| Category | Details |
|---|---|
| Name | Cab 20 |
| Manager | Tom Callahan |
| Industry | Music |
| Product | Indie rock band |
| Funding | Self-funded pre-Shark Tank |
| Investment Ask | $200,000 |
| Equity Offered | 20% of all future royalty streams |
| Valuation | $1,000,000 |
In episode 315, Tom Callahan brings a brand-new sound to the Shark Tank with a band he manages, Cab 20. He hopes to bring the young musicians to meet the right people, using the Sharks for not only their financial support, but connections and marketing expertise. Callahan has been managing promotions and marketing for a variety of bands for “over 25 years.” He believes that Cab 20 can bypass the mega-marketing machine that is today’s music industry, and become an indie hit, with the support of the Sharks. Will the Shark Tank investors be swayed by the music, or will they swim to the beat of a different drum?
Cab 20 Shark Tank Recap
Callahan comes into the Shark Tank seeking a $200,000 investment in return for 20% of all future royalty streams. He believes that Cab 20 has “that ‘it’ that sets them apart from other sounds on the radio.
Mark Cuban wants to know what’s involved in the offer, if the offer is a “360 deal.” Callahan explains that the offer includes a percentage of all the revenue from the band’s activities, but he wants to exclude publishing. That’s a tough blow for the Sharks. Publishing provides royalties from any future songs the band members might write, whether they perform the music themselves, or license it out to other artists. Without including publishing royalties in the deal, Callahan is on shaky ground with the Sharks.
Who’s In?
Mark Cuban likes the band’s sound, but says “The music business is the worst business on the planet. It scares the hell out of me. For that reason, I’m out.”
Daymond John has previously invested in a music deal, and it nearly ended up costing him a large amount. He’s out.
Barbara Corcoran likes the band. She remarks that the lead singer “looks like a virgin,” saying that “the girls will be all over him,” calls the drummer a “John Lennon look-alike,” and praises the composition of the band, saying “It feels real to me.” She’s less impressed with Callahan. She tells him “You don’t feel to me like a guy who can break down doors and hustle.” She’s out.
Kevin O’Leary makes an offer of $200,000, but he wants 50% of all the potential income. With no other offers on the table, Callahan counters, requesting another $100,000 for 40%. Robert Herjavec offers to partner with O’Leary, but at the original deal of $200,000 for 50%.
Callahan wants a break to talk to the band. He comes back with a reduced offer: $250,000 for 50%. Neither Shark is willing to budge. Callahan refuses to negotiate, and the Cab 20 band leaves the Shark Tank with no deal.
Cab 20 Shark Tank Update
In spite of the exposure provided by Shark Tank, and subsequently releasing 3 albums, it seems as if Cab 20 has fizzled. Their social media hasn’t been updated since August of 2014, and the band’s website no longer exists. While a Shark deal might have launched them into success, it’s impossible to know if they would’ve been a rising star, or a complete dud. The Sharks are leery of uncertainty, and musicians are one of the most risky investments to make. If the “Shark Tank effect” wasn’t enough to launch this band, the chances are that all the money in the world couldn’t have made them successful.
Despite the dissolution of Cab 20, front man Bert Hoover continues to make music. On his Facebook Page, Hooveriii, he showcases his music. It just goes to show, bands never really die – they just reinvent themselves.
Bert continues to make music as of June, 2022 and the band, Hooveriii has 7 albums. They continue to play in nightclubs across the country. Being musicians, they’re probably broke.
Posts About Cab 20 On Shark Tank Blog
Cab 20 Will Rock the Shark Tank
Cab 20 Information
Bert Hoover – Hooveriii – Facebook Page
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