Mark Melni created Melni Connectors for speed and safety in electrical power line connections. They are presenting their product in Shark Tank Season 6.
Melni Connectors secures deal with help of lineman Byron Dunn
Byron spent 30 years as a lineman and is the guy doing the product demonstration. The Melni Connector has a purchase order of $585,000 which takes their product outside of the electrical industry. They manufacture at $15 and are selling them to the wholesaler at $39.
Kevin thinks they are out of their minds putting a ten million dollar valuation on the business. They are doing both the consumer and industrial market.
Byron owned Powerline magazine and invested $50,000 in the product. The Sharks asks why did you trust Mark, Byron said he doesn't trust him, he believes in the Melni Connector.
They are projecting six million dollars, second-year sales, and eighteen million dollars for the third year.
Melni Connectors Episode Statistics
Company: Melni Connectors
Website
Entrepreneurs: Mark Melni, Byron Dunn, and Armand Eckert
Ask: $500,000 for 5% equity
Companies in this episode: NeetCheaks, Melni Connectors, Beneath the Ink, Pitmoss
Season 6 Episode 625
Sharks: Mark Cuban, Barbara Corcoran, Kevin O'Leary, Lori Greiner, Robert Herjavec
First Aired: 04/17/2015
Deal: Mark Cuban $500,000 for 12% and an option to put in another million dollars at a fifteen million dollar valuation.
What do the Shark Tank Investors say about Melni Connectors?
Mark Cuban doesn't know this business at all, but he is going to make him an offer. Mark talked about when he started Audionet. It is FOMO investing(Fear of Missing Out). Mark offers $500,000 for 12% of the company, and he wants an option to put in another million dollars at a fifteen million dollar valuation. Mark Melni asks if he can make a call, and Mark says “Hell No.” Mark Melni says Deal!
Barbara Corcoran says when you come into the Shark Tank she always likes to get what you are selling fast, but they did not communicate that the product is multiple industries and applications. She is out.
Kevin O'Leary is out with extreme prejudice because it is not worth ten million dollars.
Lori Greiner thinks it is a better mousetrap, but what is difficult is how do they get it out in the market, and how do they sell it. She is out.
Robert Herjavec loves the industrial application, but they went to irrigation systems, Home Depot, and other industries. He is out.
Melni Connectors after Shark Tank
Melni Connectors finalized the deal with Mark Cuban, and they are revolutionizing the connectors industry.