Next into the tank is Vengo seeking $2 million for 12-and-a-half percent equity.
Vengo is an upgraded version of a vending machine, using a video and checkout system to purchase a product. The high-tech vending machine can fit up to 100 products, but the product must be small.
They control the media rights and product mix, changing the marketing and advertising space, according to one of the entrepreneurs.
Mark Cuban goes out first. They see the platform as valuable given that they have partnered with the nation’s biggest vending machine company.
Daymond John thinks the valuation is too high, while Robert Herjavec finds the business model confusing and they both go out. Lori Greiner finds it confusing as well.
Social reactions from Vengo’s appearance on Shark Tank:
I guess those vending machines are not for snacks. #SharkTank #Vengo
— Tara Broadway (@TaraBroadway) March 19, 2016
@LoriGreiner my thoughts exactly on the #Vengo machine… Why isn't it longer in length?! #SharkTank
— Kathleen Berzon (@kberzon) March 19, 2016
This proves a lesson that I live by: You get what you can negotiate. #Vengo #sharktank
— ♀️Mom The Builder (@reallifecamille) March 19, 2016
Kevin O’Leary offers $2 million as debt at seven percent interest for six percent equity. They question whether O’Leary would bring Greiner in on a deal, and counter one percent equity back at them. O’Leary then counters three percent, to which Greiner counters back four percent.
They counter two-and-a-half percent back, which causes the sharks to counter back at three-and-a-half back, but they don’t budge. Last offer from O’Leary and Greiner is for three percent, which they accept.
Final deal: Kevin O’Leary and Lori Greiner for $2 million as debt at seven percent interest and six percent equity.
What did you think of Vengo?