Who knew sharks liked coconuts?

The trendy fruit made a big splash during Friday's episode of Shark Tank when entrepreneur Dave Goodman pitched his coconut harvesting tool kit Coco Jack. Customers use the kit's stainless steel scoop and mallet to safely open coconuts and drink the water, while a separate tool creates an easy way to extract coconut meat.

Goodman came to the tank seeking $125,000 for 10 percent of his company. During the previous nine months, Coco Jack had generated $325,000 in sales.

Co-host Lori Greiner immediately said she loved the product, but passed on making an offer due to what she perceived to be a market that was too small to invest in. Robert Herjavec also showed enthusiasm for the business, but couldn't see a future after the core product.

Sharks Kevin O'Leary and Mark Cuban, however, both saw an investment opportunity in the company. 

"I like the idea," Cuban said. "When people solve problems that nobody knew needed to be solved, industries are born."

Cuban offered a $125,000 loan that could be converted to 25 percent equity in the company.

"If business goes great, we’ll convert that to equity, and I'll just be an equity shareholder," he said.

O'Leary went with a straight equity offer, but asked for 50 percent of the business for $125,000.

"You’re not a business yet," O'Leary said. "You’re a product. There's a lot that can go wrong turning it into a business."

In the end, Goodman took Cuban's offer.

"This is bringing me into the peer group of people who are massively successful like Mark," he said. "I’m really excited about that."

 

How to Pitch Mark Cuban—and Land His Money
Published on: Mar 9, 2015