Classroom Jams is a company from Chicago, IL, that wants to help teach children through song. It was originally invented by this entrepreneur as a way to help make the writings of Shakespeare more relateable.
At the time of pitching, Classroom Jams had not yet actually launched but was about to. As part of its product line, it had a series of class sets on various topics. A class set would cost the teacher or school $499. This would include thirty compact disks (because this was 2009 and it's schools we're dealing with here) as well as a teacher's guide. Some of the topics to be covered include history and science.
All of the songs are copyrighted by the entrepreneur so they have full intellectual property protection.
Sharks Kevin Harrington and Daymond John like it enough that they offer to take it off his hands entirely for the $250,000 rather than just provide it as an investment. In some ways, this is better for the entrepreneur as that $250,000 would go directly into his own pocket as pure profit rather than to be used to grow the business.
Additionally, Kevin Harrington and Daymond offer the entrepreneur a 5% royalty on every set sold as well as the option to purchase back as much as 16% of the equity with the royalty earnings he would make.
Complete buyouts are fairly rare in the Shark Tank but this enterepreneur walked away with $250,000 big ones.