Two “Shark Tank” entrepreneurs show that if you’re indecisive in a negotiation with an investor, you risk appearing amateur, arrogant, and untrustworthy.
In the latest sixth-season episode of ABC’s hit pitch show, San Francisco-based entrepreneurs Lei Yu and Tyler Freeman present their company DrumPants, which sells wearable technology that uses your smartphone’s Bluetooth capabilities to turn your body into a full band. Its secondary features, which Yu and Freeman say they plan to expand on, can be used to do things like control presentations with a small pat on your pocket.
Robert Herjavec took a long view and was interested in the next step for the company. He offered $150,000 for a 20% stake. Investor Daymond John asks the entrepreneurs if they’re interested in licensing the product, to which Freeman says, “Definitely,” as Yu nods in agreement. He offers $250,000 for a 20% stake, saying he would help secure a company to add DrumPants to its catalogue to get upfront cash and guaranteed annual minimums.
Yu and Freeman ask if they can step into the hallway to discuss.
“You know what happens in ‘Shark Tank’ when you leave the tank? Nasty, nasty things,” Kevin O’Leary warns. “What is wrong? You’ve got two offers. You’ve got to make a decision.”
The product has potential, Cuban says, but needs a definitive push in a specific direction, and Yu and Freeman proved they wouldn’t be willing partners in a growth plan. “This is an incredible example of two entrepreneurs who are incapable of making a decision,” O’Leary says.
Yu and Freeman should of gone into the Shark Tank with full bladders, allowing for wiser decision making.
