No Deal

Circadian Optics

Circadian Optics is a company that wants to improve people's mental and physical health by ensuring they get enough light when their bodies need it. The entrepreneur behind this company claims that working in a standard office environment isn't getting people enough of the right kind of light and making everyone more tired than they should be.

Hence Circadian Optics. Circadian Optics makes a light therapy lamps that mimic the cycle and color of the Sun to restore people's natural cycles at their desks. But does it work?

The entrepreneur behind Circadian Optics came originally from Malasia and had been living in Minnesota and said that the lack of light had a drastic negative effecxt on her own health. But when she tried a light therapy lamp, she began to feel better. Unfortunately, her collegues sound like assholes because they then proceeded to tease her about the design and size of the lamp claiming that it made her "look like the crazy lady in the office."

Nice, guys. Very classy.

But this made the entrepreneur realize that there was a gap in the market that she could fill, making a light therapy lamp that was both effective and stylish! And, fill the gap she has. Circadian Optics has lifetime sales of $7,400,000 with $4,000,000 in the last twelve months alone. On that, the company has made $625,000 in profit. In the current year, Circadian Optics projects $5,600,000 in sales and a profit of $1,300,000.

According to the entrepreneur, all sales have been direct to consumer online with an average sale of $57.99 and a margin of 70%.

With numbers like this, it's no wonder that Mark wonders where, exactly, the problem lies. The entrepreneur claims that she needs a shark to take the company to the next level. Currently, Circadian Optics is a $5,000,000 company that sells only online and is without a strategy for going into retail.

Making A Deal

Lori seems to be inspired by the entrepreneur's immigrant story and success overcoming health issues but states that she wants another shark in it with her. Because Mark is the person that she teams up the most with, she looks to him and he expresses an interest as well.

Kevin, because he's... you know... Kevin, asks how the entrepreneur sees earning his money back and she responds thats she'll do it through scaling and that she wants to use his money to fund more inventory.

Guest shark Rohan Oza states that he respects the entrepreneur but is honest when he just doesn't see how he could bring value to the business and drops out.

Finally, Mark and Lori come through with an offer: $750,000 in exchange for 20% equity, doubling what the entrepreneur had come into the tank offering. Barbara and Kevin, though, jump on that bandwagon also and offer the exact same thing, with Kevin claiming that he thinks he can help double the sales and help with the manufacturing.

Lori sweetens the pot by saying that she'll toss in an extra $50,000 to repay the entrepreneur's parents for funding her college education and the stalemate is broken, the entrepreneur selects Lori and Mark. It should go without saying that a deal that doubles the amount of equity without increasing the amount of capital halves the value of the business but... it's Mark and Lori so... she'll probably be okay.

Scroll chart to see it all!

Scroll chart to see it all!

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This page was last edited on 16 June 2020, at 10:00.