Lisa Lloyd brings her Treasure Chest Pets to the Shark Tank in episode 108, after being invited to audition for the show. She had previously presented her products on Pitchmen, working with Billy Mays. She created a niche market, selling her products through several small stores, but needs more capital to meet the demand for larger orders. Launching her product onto the national stage will require a sizeable capital investment and the marketing experience the Sharks bring to the table.
Lloyd has a background in business, having made investments of her own, before beginning the Treasure Chest Pets business. She’s looking for a partner who will be as invested in her product as she is. She comes to the Shark Tank with maxed-out credit and a mortgage looming on her family home. Without an investment, Lloyd faces losing not only her business, but her home as well.
Treasure Chest Pets Shark Tank Recap
Lloyd is seeking $150,000 for a 20% equity in the company. She presents her patented stuffed animals, showing how the toys contain secret compartments for children to store their small treasures. The Sharks get right to the point, asking about price points and cost. Lloyd tells them that the toys retail for around $19.95, and cost $4.75 to produce. Her sales through boutiques and direct order have been around $100,000. She says she has not gone to the major retailers with her product because she requires capital to move forward.
She has sales orders on the table, and needs capital to move forward. Kevin O’Leary addresses the distribution challenges, calling distribution of toys “a giant jigsaw puzzle”. He’s not interested in investing in a toy line, and he’s out. Kevin Harrington calls the toys “seasonal”- a mainly holiday item, and says they’re for an age specific limited market. He’s out based on the limitations of the market. Two sharks are down, and three remain, but will any of them take the bait?
Robert Herjavec wants to know what Lloyd will do with the capital. She responds that she would fulfill the existing orders. Barbara Corcoran offers $50,000, but wants 50% of the company, leaving Lloyd with the challenge of getting a second Shark to provide the rest of the investment. Daymond John speaks up, joining the deal. He’s offering the $100,000, in addition to his distribution channels and experience, but he wants 60% of the business.
Robert Herjavec thinks the other Sharks are eating Lloyd alive. He offers her a loan, without taking any equity in her business, for the entire $150,000. The deals on the table are John and Corcoran for the full investment for 60%, but with John’s distribution experience and channels, or a loan from Herjavec, for no equity stake, but the full investment.
Lloyd accepts John and Corcoran’s deal, noting that she needs the business and distribution support as much, if not more than, the money.
Treasure Chest Pets Shark Tank Update
While Lloyd was able to secure a Shark deal on her products, the deal with Corcoran was never completed. John was able to leverage some of his equity to benefit Loyd, but in the end, Treasure Chest Pets folded under the pressures of competition and knock-offs flooding the market.
Today, Lloyd writes and speaks about her endeavors with invention and business, providing others with the benefits of her experience. She also continues to work with Daymond John. The details of what happened can be found in Beyond the Tank episode 205. Read the update HERE.
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