Tag Archives: Shark Tank

ENGINEERING YOUR PITCH

jockey-and-horse-t-ms-officeInsights from the Cornerstone Angel Meeting

by Stephanie Wiegel

Angel investment deals aren’t made on the spot as the TV show Shark Tank suggests. Instead, entrepreneurs are excused from the meeting after delivering their pitches. If you’re vying for early investment money, what’s said behind these closed doors can make or break a deal. Continue reading

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RAW TALENT

Sharks Tby John Jonelis

Ever want to be a Shark on the popular reality TV show? Wish you controlled a billion dollar investment account? Wonder what it’s like? I’m here at Chicago’s 1871 incubator doing it. Emotions run high. Hey, mine are running away with me. That guy on the end keeps grabbing all the deals!

Most of these teams are looking for $100K or so for maybe 15% of the company, but the Sharks seem to want more control than that. Offers meet counter-offers. Investors make hardnosed bids—they team up—steal deals—the usual shenanigans seen on TV.

Negotiations get heated and sometimes abstract. Lance Pressl works a convoluted deal structure in the next room.  No problem—both sides seem on track with it.  But I’m out.  In the long run, any of these companies might produce hockey stick growth or go belly-up.

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Dangerous Waters

Now I’m hearing a pitch from a company called Water Power. I want this one in the worst way. I know the industry. It’s a hugely exciting company with a highly attractive energy product, easily scalable, and a terrific business model.

They’re asking $200K for 20% of the company—a $1M valuation. It’s low. Way low. I tell them they’re undercapitalized and immediately boost the offer for a controlling stake. They counter. Another shark joins me. Meanwhile, that guy on the end is dickering with a completely different set of parameters that sound pretty good.

Ah, but I notice these teams value a strategic investor, so I mention my experience in the industry and that seals the deal. Satisfaction! Victory! Hooray!

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Merchandise Mart

Who Gets to Play

Did I mention these are Junior High Students? Not just any young punks—these are highly gifted, highly precocious, and highly competitive young people. Their pitches rival those seen on TV. Some of these kids are hopefuls for enrollment at the prestigious Illinois State High School for the gifted, the Illinois Math and Science Academy—IMSA.

This entire program is put on by IMSA TALENT. It pits the best and the brightest junior high school students against experienced investors and CEOs at an event that reproduces the popular reality TV show, Shark Tank. Hey, this is a blast!

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Pitch

How it Works

  • IMSA TALENT puts these kids through a fast-paced deep-immersion experience. The school maintains space at 1871, the enormous incubator in Chicago’s Merchandise Mart, so the teams rub shoulders with lots of real startups. That’s huge.
  • Every decision, every action, gets entered into a computer simulation that spits out consequences and makes the process as close to the real thing as you can get.
  • Each team creates an actual product, design, prototype, business model canvas, go-to-market strategy, financials, their pitch—the works.
  • Sharks come armed with unlimited investment capital in the form of Monopoly™ Money and strike cutthroat last-minute negotiations. Think that’s not realistic? Once those dollars get plugged into the simulation, they’re real enough to make or break a company.

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Negotiation

Once again, IMSA proves that, given the opportunity and the right coaching, brilliant children can outperform ordinary adults. Hats off to Carl Heine and Jim Gerry.

Last year I got caught-up in the spirit of the thing, which is dangerously easy to do. One kid was so professional, I forgot myself. I lost my head and asked the team to present before the Heartland Angels. Lesson learned—School first, then business. This year, I keep that straight.

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Deal

Sharks

Lance Pressl, John Detjen, Brian Brandenburg, Jeff Prussack, Joe Guarascio, John Jonelis

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Team

Team Members

Alexandria Cannon, Alp Demirtas, Aman Shah, Ammar Ladhani, Arjun Vyas, Arshia Ajmera, Chandra Gangavarapu, Daniel DeBoer, Dev Singh, Dhruv Nambisan, Ellis Irwin, Erol Ikiz, Ethan Tse, Jacob Conroy, James Raflores, Joseph Tennyson, Joshua Tennyson, Katreena Subramanian, Madeline Drafall, Marc Peczka, Ohm Vyas, Parth Bhatt, Prarthana Prashanth, Shreya Maganti, Shreya Pattisapu, Shreyas Manikonda, Simone Seno, Sydney Elvart, Vismay Vyas, Yuhan Lin.

IMSA Staff

Jim Gerry, PhD

Carl Heine, PhD, Director, IMSA TALENT and Cool Hub IMSA.

heine@imsa.edu Office 630-907-5921 Fax 630-907-5062

Read related article: WHIZ KIDS

Photo credits – Students: IMSA; Architecture: John Jonelis; Shark image: MS Office

Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. It’s not our fault if you lose money.

.Copyright © 2015 John Jonelis – All Rights Reserved

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THE FRENZY

Funding Feeding FrenzyBill Blair – special correspondent –

as told to John Jonelis

Bill Blaire here.  Mr. Jonelis wants I should go to this FUNDING FEEDING FRENZY thing. Says I’m gonna give a completely different slant compared to the resta this crowd here. I cut my teeth in the Local #1 Boilermakers, then as a Cement Contractor till I packed up my tools fer good.

Me? I’m always open to new ideas. I make loans to all kindsa people. John says I’ll see someFFF Logo real sharks at this place and that strikes me as a nasty crack but I let it slide.

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The Sharks

So I get here and whadaya think? Deeze guys is all legit investors. I glad-hand every one o’ them and their little mits all disappear between my hairy fingers. But I gotta give it to ‘em—these guys got balls. They throw money at raw startup companies and win maybe only 3 outa 10—and that’s just if the investors is real smart. They don’t get paid back by the deadbeats neither.

I don’t like them odds at all. Hell—the stuff I put money in gets a guaranteed payout or else, see?

Glenn Gottfried

Glenn Gottfried

Then I meet Glenn Gottfried—real smart guy. He explains it all to me. These is all private equity deals. Not a loan in the house. The ones that come in can make it big—REAL BIG. I’m talkin 10 times return—sometimes 100 times or more. It’s the stuff they make dreams outa. That gets my juices flowin’ and it’s all legal! Hoo boy, I’m gonna have some fun here!

I remembers catchin’ an episode o’ Shark Tank on TV and so I got the general idea.

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The Hideout

Chopin Theater

Chopin Theater

I don’t usually get caught dead at no place with a name like Chopin Theater but I always help my friends. And it turns out real nice. This thing goes on all day so they got coffee, booze, food, good seats—my big butt laps across two o’ those.  Nobody’s breathin’ down my neck ’cause none of ’em can see over my head. Yeah, it’s all good.

So here I is with my buddy Rocco Spumoni of the Pierce O’Shea Mob. Oops—maybe I oughta call it an investment firm, get the picture? Anyhow, Rocco goes after some gal and I ain’t seen him since. I think her name’s Jane Pickling or something, but I dunno fer sure. Lemme get down to business: Ludditis Shots and Beer

I wanna give you the whole picture first, so in a minute I’m gonna show ya a hard-hitting video from Blackline Review.  My buddy David Carmen is part o’ that outfit. They got that catchy name cuzza the L trains here in Chicago. There’s a Blue Line and a Red Line but there ain’t no Black Line. If there was, you can bet they’d build another Ludditis Shots & Beer right under the tracks.  Chicago’s best potato pancakes too. 

Anyhow, this video gives ya the flavor o’ the whole thing and it’s short:

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Check out Blackline Review fer more o’ that kinda stuff.

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The Companies

Phil Murphy of Call Potential  was the winner last time. He gives the keynote along with some guy that makes goofy looking glasses that cost an arm and a leg. But hey—people buy that stuff like crazy so who am I?  Murphy’s real smart. When he’s done speaking he sits down as one o’ the judges. I’ll get back to him later.

The companies is all kinds: There’s the Bomboard jet ski that fits in my trunk and I want one.  John West and Anders Stubkjaer put that one together. Then on d’other sida things there’s Nature’s Little Recyclers, a worm farm that can solve alotta pollution problems.  Blame that one on Ed Hubbard.

Jerry Freeman of PaletteAPP

Jerry Freeman of PaletteAPP

We get an update report from a Jerry Freeman’s company, Palette APP. They’s gettin’ traction now and it’s off to the races.

I’m comin’ back with a lot more on this event so keep yer heads up.  Meanwhile, lemme give you the winners: 

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The Winners

1stSmart GardnerCarl Alquire

Uses high tech to help city people grow their own healthy food.

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2ndPortapureGeorge Page 

We seen this guy before and he’s good. Won alotta awards.  Clean water fer the third world.

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3rdCardoonaColin Robertson, Jeffrey Herrington

Making it super-easy for restaurants to place orders with ALL their vendors.

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The Crowd Favorite – Geek Bar – David Zoltan

And yeah—this one’s a real riot. A bar that celebrates geekdom.

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Photo and Video Credits – Royalty Free Images, Glenn Gottfried, Wikipedia, Blackline Review, Donatas Ludditis, John Jonelis

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Go to – THE BUSINESS PLAN POLICE

Back to – MY KRAKEN ENCOUNTER

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Our logo proclaims “Chicago is the World.” We believe creativity is spawned by adversity. That makes Chicago a growing center for thought leadership in the world.
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Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link . This is not investment advice. We do not guarantee accuracy. It’s not our fault if you lose money.
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Copyright © 2013 John Jonelis – All Rights Reserved
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