So, how are they better/different than the others? From: Josh Reynolds Sent: Tuesday, November 08, 2016 8:18 AM To: [email protected] Subject: Re: [AFMUG] OT Travis and Shark Tank
Oops, forgot the link. https://modpizza.com/leadership/ On Nov 8, 2016 9:15 AM, "Josh Reynolds" <[email protected]> wrote: Pretty O/T, but you should look at the the team MOD Pizza put together over the past few years. Those guys are going places, and the food is great! On Nov 8, 2016 8:56 AM, "Travis Johnson" <[email protected]> wrote: Yes, we can walk away if we can't come to a win/win deal. We aren't really looking for other investors... it's not about the money. We are looking for people that bring connections. My partner knows the former CEO of Skullcandy and he is interested (and has already invested in a different company we own). It's not about getting capital... it's about finding people that bring more to the table. Travis On 11/7/2016 3:59 PM, Chuck McCown wrote: Can you walk away? Do you want other investors? From: Travis Johnson Sent: Monday, November 07, 2016 3:34 PM To: [email protected] Subject: Re: [AFMUG] OT Travis and Shark Tank 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?
