'Shark Tank' contestants entice Daymond John with pitch for licensing but pick another judge's deal

John considers himself the very best on the show when it comes to licensing deals.

PUBLISHED 4 HOURS AGO

Screenshots showing Daymond John and the entrepreneurs on "Shark Tank." (Cover Image Source: YouTube | Sony Pictures Television)

Daymond John is often seen putting his faith in ventures that other judges on "Shark Tank" aren't sure about, but he doesn't always get the same treatment from entrepreneurs. That was exactly what happened in an earlier episode of the show. The entrepreneurs had mentioned once in their pitch that they might be willing to edge towards a licensing deal, but they did not pick the self-professed top licensing shark on the show, Daymond John.

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Kevin and Laurie Lane pitched their business called Create A Castle, and sought $350,000 for a 10% stake, putting the valuation at $3.5 million. The company made various products that helped buyers make castles in the sand and in snow. The company had recorded sales of $600,000 the year prior and was on course to make $3 million at the time of taping.

But the problem was that the company had incurred a $100,000 loss the year prior. This was because of the pandemic, as per the entrepreneurs. Turns out that their cost of shipping increased drastically during this time. However, the company had gotten into several prominent stores since, which almost guaranteed the $3 million figure. It also had 12 patents worldwide, which was a big positive. Surprisingly, though, not a lot of sharks were confident about it.

Screenshot showing the product. (Image credit: YouTube | Sony Pictures Television) — Screenshot showing the product. (Image source: YouTube | Sony Pictures Television)

Mark Cuban believed that the entrepreneurs focused too much on sales rather than having a good margin of profit, and that was not the kind of business he was willing to invest in. Kevin O’Leary simply did not believe that the company was investable. While Lori Grenier liked the product, she did not believe that she was the right person for this brand. Daymond John might not have been interested either had the entrepreneurs not mentioned that they’d want a licensing deal.

But before he could make an offer, guest shark Kendra Scott gave her two cents. As a mother of six kids, this was something she absolutely loved. She liked the idea of the entrepreneurs trying to make it big by going into the retail space, even though it might cost them a ton of money. Scott claimed her strength to be branding and believed that she could make the company a heavyweight in the toy industry.

Screenshot showing Kendra Scott. (Image credit: YouTube | Sony Pictures Television) — Screenshot showing Kendra Scott. (Image source: YouTube | Sony Pictures Television)

However, she did not offer what Kevin and Laurie wanted. Scott did not believe that the company was worth $3.5 million, especially after they’d lost $100,00 the year prior. Therefore, she asked for 20% of the company for $350,000. John finally got to make his offer, but he said that he was interested only because of a potential licensing aspect. He asked for 25% of the company.

The entrepreneurs might have had it easier with licensing with John, but Scott’s enthusiasm made her look like the better shark for the job. That is exactly who Kevin and Laurie chose in the end, much to the licensing expert’s disappointment.