Chalkless Founders Present Their Pitch On Shark Tank
Highlights
- Chalkless was brought to the judges in the fifth episode of the latest Shark Tank season.
- Greg Pope and James Pidhurney sought $400K for 4% equity in the company.
- Mark Cuban got angry when Greg and James refused to reveal their true margins.
The most exciting aspect of any Shark Tank pitch is the negotiations. While the panelists expect pitchers to reveal the true numbers of their businesses, they often refuse to reveal the true figures. This eventually leads to angry reactions from the Sharks. One example of the same is the Chalkless Shark Tank pitch from season 16.
Chalkless was presented before the Shark investors in the fifth episode of the latest Shark Tank season. Entrepreneurs Greg Pope and James Pidhurney tried to win over the Sharks with their grip enhancer for removing oil from the skin. But things took a heated turn when Mark Cuban lashed at them for hiding their margins.
Below is a recap of the Chalkless Shark Tank pitch with complete details about the reasons that made Mark Cuban angry over the entrepreneurs. Additionally, learn about the final deal status of the Chalkless grip enhancer.
Chalkless Shark Tank Pitch
The entrepreneur duo of Greg Pope and James Pidhurney tried their luck on Shark Tank Season 16 with Chalkless grip enhancer. Seeking $400K for 4% equity, Greg and Pope explained that the product can be used to absorb oil from the skin and shoes of athletes and military people.
Claiming the Chalkless grip enhancer to be ‘revolutionary,’ the entrepreneurs said that it is able to improve the athletes’ performance by helping them remove the slip from their hands and feet. Additionally, Greg and James stated that the product is a powder-like substance that is non-toxic and environmentally friendly.
Going forward in the pitch, the entrepreneurs said that Chalkless can work underwater as well. To keep the investors involved, Greg and James called upon Guest Shark Rashaun Williams for a trial of the product. He was amazed by the great quality of Chalkless.
Chalkless Shark Tank: Negotiations
After being assured of Chalkless’ quality, the panelists began asking questions related to the business figures. Kevin O’Leary started off the negotiations by inquiring about the sales. The entrepreneur duo revealed that right from the beginning of 2024 till the time of the Chalkless Shark Tank appearance, it was $740K.
In order to convince the investors further, James claimed that there was no other product that focused on grip like the one they did at Chalkless. This is why it offered them an opportunity to get a huge marketplace. However, Mark Cuban disagreed with this.
After this, the Chalkless entrepreneurs stated that sports like golf and racket sports form their biggest market.
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Why Was Mark Cuban Furious During The Chalkless Shark Tank Pitch?
Previous seasons of Shark Tank have often shown the angry side of judges. The reasons were dubious products, poor pitch presentation, and inefficiency in stating the sales figures. A similar thing happened during the Chalkless Shark Tank pitch when Mark Cuban lashed out at the entrepreneurs.
Here is a brief recap of the entire moment:
While talking about the price of the Chalkless grip enhancer, Greg and James said that the product’s price depends on its size and is currently rated from $35.99 to $24.99. However, the real drama started after this when Kevin O’Leary asked both entrepreneurs to reveal the true cost of making the Chalkless grip enhancer.
Refusing to state the real figures, the entrepreneur duo said that they were willing to reveal the numbers offline. The response annoyed all the Sharks, and they unanimously criticized them, saying without it, they would not be able to make the right determination for investment.
On facing criticism, the Chalkless founders revealed that their margins are 67%. A visibly irritated Mark Cuban interrupted them, asking if they wanted them to work backward. Right after this, he exited the Chalkless Shark Tank deal because the entrepreneurs stated their blended margins but were not willing to reveal their costs.
Final Deal Status Of The Chalkless Grip Enhancer
The Chalkless entrepreneurs received their only offer from Kevin O’Leary. He offered a royalty deal of $400K for a 4% equity along with a royalty of $2.50 per unit till he got back the $4 million in revenue. The royalty amount would then drop to 25 cents in perpetuity.
Further, Kevin also added that his social media team would help the Chalkless entrepreneurs bring down their customer acquisition costs and ramp up the return on assets.
Rashaun Williams then expressed his desire to join Kevin in the deal for $100K or $200K of it. Kevin agreed to him joining for $200K in the deal, but the other terms would remain the same.
Greg and James eventually took up their deal for $400K for a 4% equity along with a royalty of $2.50 per unit till Kevin recouped the $4 million in revenue, which then dropped to 25 cents in perpetuity.
Conclusion
The Chalkless Shark Tank pitch took a dramatic turn when the entrepreneurs refused to state the exact margins of their business. This made Mark Cuban lose his cool, and he instantly made his exit from the deal. After all the tensions, the Chalkless entrepreneurs finally secured a deal from Kevin O’Leary and Rashaun Williams.
Entrepreneur, auteur, raconteur. Rob Merlino is a blogger and writer who enjoys the Shark Tank TV show and Hot Dogs. A father of five who freelances in a variety of publications, Rob has a stable of websites including Shark Tank Blog, Hot Dog Stories, Rob Merlino.com and more.
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