hey Travis… I have some experience in these areas as well - I’ll just leave it at that, but wanted to say it sounds like you have a pretty good grasp on things - well done!
Paul > On Nov 7, 2016, at 5:34 PM, Travis Johnson <[email protected]> wrote: > > The actual deal paperwork is substantially different than the show... and I > am now hearing from others that have been on previous shows that this is > "normal". They have added royalties, commissions, bonuses and other "perks" > (free product at cost), and they aren't really putting any cash into the > business... instead they want an "option" to purchase equity at the offer > price, but up to 5 years from now. > > As I said, we are still in negotiations. I am guessing most people on the > show think this is a "normal" deal and so they accept it. Luckily for Megan > (the Founder), we are involved. :) Having just completed a Series A > investment round for another company (raising $7 million, including a large > investment from Salesforce Ventures), we have a lot of experience with > putting deals together. As it is written now, it's a terrible deal... but > this company has some huge potential... so we are still working it out. LOL > > Our biggest irritation is when someone says "that's just how we do it" or > "this is normal". We have never accepted any investment deal (on either side > of the table) as it was originally written... even with someone like > Salesforce Ventures, who has done over 280 investments in the last 5 years. > We made them make changes on their "standard" investment documents that we > weren't comfortable with. We have made large investment banks make changes to > their loan documents (requiring a Senior VP approval) in order for them to > get the deal. :) > > Travis > > > On 11/7/2016 2:06 PM, Chuck McCown wrote: >> Doesn’t sound like it if there are commissions and royalties now. >> >> From: Chuck Hogg <> >> Sent: Monday, November 07, 2016 1:47 PM >> To: [email protected] <> >> Subject: Re: [AFMUG] OT Travis and Shark Tank >> >> The big question, is it still what the offer was on the show? >> >> Regards, >> Chuck >> >> On Mon, Nov 7, 2016 at 1:16 PM, Travis Johnson <[email protected] <>> wrote: >> Correct. We only got the actual deal paperwork from him three weeks ago. >> >> Travis >> >> On 11/7/2016 10:56 AM, Chuck Hogg wrote: >>> Wow. So since June and still no deal with Daymond? >>> >>> Regards, >>> Chuck >>> >>> On Mon, Nov 7, 2016 at 12:48 PM, Travis Johnson <[email protected] <>> wrote: >>> Yes, filmed in June. We spent $4,000 on FB ads and generated $108,000 in >>> sales. We also blew up the FB and Instagram pages, and ran a BOGO sale all >>> at the same time. We have over 200k followers on FB right now. >>> >>> Travis >>> >>> >>> On 11/7/2016 10:35 AM, Chuck McCown wrote: >>>> So it must have been filmed in June. >>>> She mentioned dumping a bunch of coin on advertising. Was that all on FB? >>>> >>>> From: Travis Johnson <> >>>> Sent: Monday, November 07, 2016 10:18 AM >>>> To: [email protected] <> >>>> Subject: Re: [AFMUG] OT Travis and Shark Tank >>>> >>>> Honestly, not much... :( >>>> >>>> Over the last 3 days, we have seen about $70,000 in additional sales... so >>>> it made a difference, but not what we were hoping for. Our single biggest >>>> day was in June this year, when we went all out on marketing and FB ads >>>> and we did $108,000 in sales in a single day. >>>> >>>> Travis >>>> >>>> >>>> On 11/7/2016 10:07 AM, Chuck McCown wrote: >>>>> What did the show to to sales in the past few days? >>>>> >>>>> From: Travis Johnson <> >>>>> Sent: Monday, November 07, 2016 10:05 AM >>>>> To: [email protected] <> >>>>> Subject: Re: [AFMUG] OT Travis and Shark Tank >>>>> >>>>> Hi, >>>>> >>>>> The Shark Tank episode was very edited and chopped together. She was >>>>> actually in front of the sharks for over 90 minutes... they cut it down >>>>> to 8. Here is the basic summary: >>>>> >>>>> She started the company with her brother after he gave her about $2,000 >>>>> to buy inventory. They tried out for Shark Tank (4 years ago) and didn't >>>>> make it past the first stage. Another person saw a local news episode >>>>> about her and the company, and contacted her. He gave her $3,000 in cash, >>>>> and paid her rent for a year in exchange for 50% of the company >>>>> (basically buying out her brother). >>>>> >>>>> Those two were involved for about 2 months before they realized they >>>>> needed more money and expertise to make anything happen. They contacted >>>>> me via email, and we had a meeting. We told them in the meeting we would >>>>> do an investment, and asked how much and what they would give up. They >>>>> told us $30,000 for 50% of the company. We gave them exactly what they >>>>> asked for. Also, at this point, her total sales for all of 2014 was >>>>> $7,000. That's TOTAL SALES... not profit. So there are four of us, each >>>>> at 25% ownership right now. >>>>> >>>>> We then took the company from $9,000 total sales in 2014 to $1 million in >>>>> sales in 2015. We provided business experience, obtained a line of credit >>>>> at the bank, helped setup the e-commerce website, helped finance >>>>> inventory (doing a personal loan to the company), etc. >>>>> >>>>> We then put a CEO in late 2015 that has helped take the company from $1 >>>>> million in 2015 to now we will do over $4 million in 2016. >>>>> >>>>> There is not a single person I know of that would have invested $30k to a >>>>> business that had only done $7k in total sales for the year. No shark, no >>>>> other investor I have ever talked to about this deal. Everyone just >>>>> laughs when I tell them. >>>>> >>>>> This episode was actually filmed about three months ago. We only received >>>>> paperwork from Daymond's group about two weeks ago, and we are still in >>>>> negotiation with him. The deal paperwork is SUBSTANTIALLY different than >>>>> the episode shows ($400k for 20%). He has had no involvement with the >>>>> company thus far, and does not have any ownership or equity yet. >>>>> >>>>> Reality TV is not very real. LOL >>>>> >>>>> Travis >>>>> >>>>> >>>>> On 11/7/2016 8:56 AM, Chuck Hogg wrote: >>>>>> So Travis, are you a 1/5th partner now instead of a 1/4th? Not bad that >>>>>> you got in that cheap and Daymond paid some major change. >>>>>> >>>>>> Regards, >>>>>> Chuck >>>>>> >>>>>> On Sat, Nov 5, 2016 at 12:09 AM, Chuck McCown <[email protected] <>> wrote: >>>>>> Odd, I was expecting Kevin but you got Daymond and nothing was mentioned >>>>>> about royalties. >>>>>> Did she say she had $100K revenue in one day? >>>>>> What e commerce platform? >>>>>> Where was that ad buy she mentioned? >>>>>> >>>>> >>>>> >>>>> >>>>> On 11/7/2016 8:56 AM, Chuck Hogg wrote: >>>>>> So Travis, are you a 1/5th partner now instead of a 1/4th? Not bad that >>>>>> you got in that cheap and Daymond paid some major change. >>>>>> >>>>>> Regards, >>>>>> Chuck >>>>>> >>>>>> On Sat, Nov 5, 2016 at 12:09 AM, Chuck McCown <[email protected] <>> wrote: >>>>>> Odd, I was expecting Kevin but you got Daymond and nothing was mentioned >>>>>> about royalties. >>>>>> Did she say she had $100K revenue in one day? >>>>>> What e commerce platform? >>>>>> Where was that ad buy she mentioned? >>>>>> >>>>> >>>> >>> >>> >> >> >
