FUBU founder Daymond John was hungry for deals during the first episode of Shark Tank's sixth season, striking partnerships with two dynamic clothing companies.

John closed a deal for 20 percent of infant apparel startup Sleeping Baby for $200,000, beating out co-hosts Lori Greiner and Kevin O'Leary, both of whom offered $200,000 for minority stakes in the company. Sleeping Baby's core product, the Zipadee-Zip, is a loose-fitting wearable blanket that helps put infants to sleep by letting them move their arms and legs without getting tangled up. 

Sleeping Baby's husband-and-wife founders Stephanie and Brett Parker have sold roughly 25,000 Zipadee-Zips, generating more than $1 million in sales on just a $700 investment.

Before bowing out of the deal, Shark Tank host Mark Cuban told the Parkers, "You guys don't need me. You're the American dream come true."

After two pitches from entrepreneurs who failed to score deals with the sharks--including a cell-phone charging station idea that host Kevin O'Leary called "horrible" and "one of the worst ideas I've ever seen"--FUBU's John inked his second deal of the day, this time with athletic sock company Bombas. Co-founders David Heath and Randy Goldberg started Bombas last October and have generated sales of $450,000 for their premium athletic socks made from Peruvian Pima cotton.

Like Tom's Shoes founder Blake Mycoskie, Heath and Goldberg donate one pair of socks--the most requested item at homeless shelters--for every pair they sell. Though the founders initially pitched their company at a valuation of $4 million, FUBU's John negotiated them down to less than half that price, acquiring 17.5 percent of the company for $200,000.

"I was about to be out, but I like that valuation, only because it does look like you want to get to work," John said. 

Stay tuned for more recaps every week. 

 

Published on: Sep 29, 2014