EmazingLights founder Brian Lim lit up ABC's Shark Tank on Friday--and all the sharks were seeing green.
Lim's illuminated gloves company (which claimed the 189 spot on last year's Inc. 500 list of the fastest growing companies in America) is responsible for starting a new dance craze known as "gloving," where dancers put on light shows with their hands.
"Gloving is already moving from a subculture to pop culture," Lim told the sharks before asking for $650,000 for 5 percent of his business. EmazingLights generated around $8 million in sales in 2014.
"You're creating your own industry," said host Robert Herjavec. "You're probably one of the best--if not the best--entrepreneur we've had here."
Herjavec and Lori Greiner quickly teamed up and offered Lim $1 million for 8 percent of the company, but attracted competition from Mark Cuban and Daymond John.
"What you've done is amazing," Cuban said. "The challenge is there's a very good chance that it's transient--that it's a fad--but you could make a lot of money by making something a niche."
Host Kevin O'Leary tried to lure Lim with a $650,000 loan, asking for only 3 percent of the company, but Lim immediately rejected the offer, saying he was not interested in a loan.
Cuban and John then offered $650,000 for 5 percent--imputing a $13 million valuation--with John asking for 20 percent of any licensing deals he brings in.
"I will go out and get you the licenses," John said. "I don't want any equity."
When Herjavec and Greiner revised their offer to $1 million for 5 percent--giving EmazingLights a $20 million valuation--Lim had a tough choice of who to work with.
"It's not about the money," Lim said. "The valuation difference doesn't matter to me. I'm looking at the non-cash value."
Lim chose to partner with Cuban and John, resulting in a very disappointed team of Herjavec and Greiner.
"You never see value like that in the tank," O'Leary said.
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