Most entrepreneurs left Shark Tank empty handed during the second episode of season six, including a pair of founders who turned down $1 million just six months after launching their product.
Budding entrepreneurs Ray Philips and Alvin Uy rejected a juicy deal from co-hosts Lori Greiner and Robert Herjavec, who offered $1 million to buy 100 percent of their toy company SoapSox, which makes stuffed animals that double as washcloths for children. The founders then declined to take the bait from FUBU founder Daymond John, who offered the pair $260,000 for 33 percent of their company.
"If you walk out of here without making that deal, you're making a big mistake," co-host Kevin O'Leary told the founders, who countered by offering John 15 percent of their company for $350,000 before negotiations broke down.
FUBU's John closed the only deal of the episode, acquiring 40 percent of dog carrier company Heart Pup for $50,000. Heart Pup sells cashmere pouches for carrying small dogs and has generated $135,000 in total sales since launching in July 2013.
The most valuable lesson of the day--on the importance of decisiveness in business--came during the final segment, when DrumPants founders Lei Yu and Tyler Freeman pitched their wearable technology company that lets customers make music by tapping on small sensors under their clothes. After receiving two attractive offers--$150,000 from Herjavec for a 20 percent stake and a licensing deal with John worth $250,000--the pair discussed the offers privately but struggled with indecision, appealing to Mark Cuban for guidance.
Unimpressed by Yu and Freeman's hesitation, both Herjavec and John retracted their offers.
"Sometimes the perfect is the enemy of the good," Cuban said. "Paralysis via analysis."
Stay tuned for more recaps every week.