G.O.A.T Pet Products
G.O.A.T Pet Products is a company from Bloomfield Hills, MI, that has created a series of pet products to give a "voice" to animals.
These products include a small speaker in the pet's collar that can be used via a smart phone (and presumably Bluetooth) to pipe through voices and music. The speakers are hidden inside the collar in cute rubber shapes. The collars can also include a "selfie button" that can be used to activate a mobile device to take a picture when hugging the animal. The associated app allows users to pre-record messages the pet will "say".
The "G.O.A.T" in G.O.A.T Pet Products stands for "Greatest of all time." The entrepreneur claims to have launched several other pet brands before going out to create G.O.A.T.
The entrepreneur claims that each product costs less than $5 per item landed but retails for $44.99.
Thus far, the company has $2,000,000 in sales through an exclusivity agreement with PetSmart that also means the company does not have to accept returns in exchange for that exclusivity.
G.O.A.T Pet Products has so far raised $260,000 in investment for 50% of the company's equity.
This deal aired on Episode 9.16.
Making A Deal
The deal for G.O.A.T Pet Products looked if-y for a bit as the sharks took issue with both the exclusivity with PetSmart and that the company has only had the initial order with no guarantee of more to come in the future. However, Robert ended up biting at the deal, offering the $499,000 in exchange for 33% of the company's equity.
This offer represented a bite of more than $4,000,000 off the company's supposed value of just over $5,500,000 but the entrepreneur nevertheless accepted.
Pet deals are always so hard to value but one thing that was hard to see was a market cap of $5,500,000 for a product that was essentially a low cost (and presumably quality) Bluetooth speaker on a dog collar. Hence the reason the Stats Shark categorized this as a gag and not into one of the others.
Truth be told, the entire deal smelled fishy when it came into the tank. An ask of $499,000? An offer of 9% equity? Why have none of these numbers been rounded? Is there some kind of joke a math geek who is not your Stats Shark might understand? That this got a deal at all was surprising but the bite to the value or the end result was not.