No Deal

Coverplay



Coverplay is a business from Los Angeles, CA, that makes slip covers for play pens so that things are always clean for those little dirt monkeys.

With a lifetime of one year, Coverplay has made $200,000 in sales in the previous year and has made $200,000 thus far in the year in which the episode was aired. Which isn't bad when one considers that the entrepreneurs invested $50,000 each into getting the company going.

Coverplay is in the tank looking for money for marketing. As of filming, Coverplay was being sold to consumers and was going to launch in Target stores. However, Coverplay also wanted to expand its sales to hotels as they were already in "several" hotels and at least one cruise line.

Though Coverplay is covered by two patents, ownership of that patent is not part of the deal as it was 60% owned by one entrepreneur, 30% owned by the other entrepreneur, and 10% owned by an entrepreneur's ex-husband.[1]

Still, Coverplay lands a deal with Barbara at the cost of 40% equity and a bite to the value of the company of nearly $1,500,000 and on the condition that none of the money be used by the entrepreneurs for paying salaries.

It's a substantial amount of money but... maybe it's worth it?

Updates

Just a few episodes later, Coverplay is featured in an update segment. According to the update, Coverplay had closed a deal and would soon be available at the Baby's R' Us chain of stores. Additionally, the update promised that Coverplay was in the process of closing a deal with "one of the largest" hotel chains. 


Scroll chart to see it all!

Scroll chart to see it all!







Notes

  1. A patent search seems to reveal that the patent for play pen has been transferred to Barbara's company.


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This page was last edited on 22 September 2020, at 07:52.