The Gameface company attracted a huge Shark Tank offer from Mark Cuban for 1 million dollars for 100% of the company and an $80,000 a year salary for five years to the founder, Doug Marshall. His business replaces face painting with peel away face masks.
Gameface is a peel-away face mask made using vegetable dies and water base materials. The Gameface mask is one size fits all and is easily trimmed to fit. The company has 400 retail (mom & pop shop) retail stores selling the Gameface masks at around $5. Doug wholesales them to the stores at $2.50 and pays between $.25 and $.65 each to manufacture each item.
Season: 4 Episode 412
First Run: 2016/1/15
Shark: Mark Cuban, Kevin O'Leary, Lori Greiner, Robert Herjavec, Daymond John
Company: GameFace Company
Entrepreneurs: Doug Marshall
Ask: $450k for 25% equity
Deal: Mark Cuban and Lori Greiner: $450k for 35% plus 10% royalty until Lori and mark get their investment money back.
Doug Marshall reports 1st year revenue is $6,700 with second year revenue at $102,000. Gameface has no competition because their product is patented as the only peel away face mask.
Mark asked Doug why he continues to sell copiers when he could be working on his business. He said that he needs enough security to support his family, and is seeking the investment so that he has enough salary to grow the business.
Daymond John and Robert Herjavec do not like Doug's answer, and they go out almost immediately. They believe that he should sacrifice as they did while building their companies.
Kevin O'Leary offers $150k for a 30% stake in his company and $300,000 as a loan. He will take a .25 royalty on every mask until he gets his $150,000 back.
Lori offers $450k, and she wants Mark to go in with her for 40% stake.
Gameface buyout offer from Mark Cuban
When Mark Cuban bought the Dallas Mavericks, attendance was dismal. They ran contests at every game for fans who paint their faces, and he will give you free seats. Mark still does competitions at the game, so he offers 1
Million dollars and an $80,000 per year salary for five years for 100% of Doug's business. He also asks Lori into the deal, and she agrees.
Mark Cuban plans to give out GameFace tattoos to thousands of his most loyal Dallas Maverick's fans. A great marketing tool for Cuban.
Gameface's Doug Marshall did an update on Shark Tank just ten months after their pitch. He states that the company produced $200,000 in sales since their episode, a number I expected to be far higher given the type of traffic that the hit show produces. Doug also shared they now have license deals with all the NBA and NFL as well as hockey sports teams.
He likes Lori and Mark working with them. He would give up 35% of the company at $450,000 plus $80,000k guaranteed for three years. Plus a 10% royalty for until they get the money back.