Detrapel
Detrapel is a company in Philadelphia, PA started by a nineteen year-old who created a product inspired by a pair of Nike Air Jordan's that he didn't want to run. Detrapel produces a new chemical that is hydrophobic and is strong enough to repel coffe, wine, and other liquids to stop them from staining garments.
The young entrepreneur started by founding a shoe cleaning business that was making $25,000 a month.
The chemical Detraprel produces is claimed to be completely non-toxic and water based. It will not penetrate the skin and is based on a "nano-particle." Currently it is being sold to carpet and furniture retailers as an add on to product those products.
The chemical retails for $12.99 a bottle and costs $1.14 to produce. The entrepreneur projects that the business will gross between $300,000 and $350,000 by the end of the year. He came into the tank because, while he feels confident with the chemical and the formulation of the nano-particle, he wants the sharks' expertise on the marketing and business side of things.
This deal aired on Episode 9.15.
Making A Deal
Mark and Lori, as is their want, teamed up to make the deal with the young entrepreneur, offering him the requested $200,000 for 25% instead of the asked for 20%. While this represents a bite of $200,000 from the original $1,000,000 valuation, because the equity offer was already reasonable, bringing two sharks in on the deal had a minimal effect on the value.
However, the deal stipulates that it is contingent on testing that proves the chemical is unique. The entrepreneur claims that it is and that it would cost more than $200,000 for another company to replicate it.