The snack business is so tough. What Kevin said was absolutely accurate. But I’m glad the guy got the deal, especially with someone that is great at raising capital and being a tough negotiator. He needs a guy like Kevin. I hope he becomes really successful.
Non dilutable 5% could be worse off than dilutable 10%. If what Kevin said is right and he ends up at 1% after dilution starting at 5%, he should anticipate ending at 2% after dilution with 10%. Now, he has a 5% non-dilutable. Slick move.
So what does that mean that his equity of 5% won't get diluted? How would his equity get diluted when raising other capital? Can anyone explain in simple terms?
Let's say Mr wonderful had 10% and the entrepreneur had 90% to begin with. When they raise more funds for equity and say they give up 30% of the company, the entrepreneur and Mr wonderful would have to give up 30% of their share. The new equity ownership would be 30%, 63% for the entrepreneur and 7% for Mr wonderful.
500,000 as a line of credit at 12.5% interest for a non-dilutable 5% stake Does the "non-dilutable 5% stake" mean that Mr. Wonderful will keep the 5% stake no matter what happens to the business? If it doesn't say "non-dilutable" does that mean the entrepreneur can take the 5% stake that Mr. Wonderful holds in the business and sell those shares? When Kevin says "he is going to issue shares", what is Mr. Wonderful trying to say?
Normal 5% share means that if someone else buys 20% of the company, Kevin's share drops to 4% as it decreases by 20% of original amount as well. Non dilutable means no matter what it stays at 5%
@@mohammedyakub3760 What do you mean by "as it decreases by 20% of the original amount as well"? What is the original amount? It's easier for me if you could just answer the last 2 questions for me? You answered the first question. Make sure you write. #2 and #3. So I can understand which order you answered it.
@@milanpatel2764yes, when it's dilutable, in further money raising Kevin's share drops down, and when he says 'issue shares' he means raising more money .
Why are they showing the endings and not the whole pitch/negotiation? I want to know what the whole company is about, the entrepreneur's background and why the other sharks went out.
He literally explained what the risk was, hence why they ended up with "non-dilutable" shares. There are big risks when it comes to loans. That's why banks don't do it instantly. Risks for both parties.
Let's say Mr wonderful had 10% and the entrepreneur had 90% to begin with. When they raise more funds for equity and say they give up 30% of the company, the entrepreneur and Mr wonderful would have to give up 30% of their share. The new equity ownership would be 30%, 63% for the entrepreneur and 7% for Mr wonderful.
Lets say there are 100,000 shares, and Kevin owns 5% which is 5,000 shares. Well as companies need to raise more money they dilute shares by adding more. If they eventually added and added and there was 500,000 shares then Kevin, who did own 5% with 5,000 shares when there were only 100,000 shares now really only owns 1% with 5,000 shares out if now 500,000 shares. This is what happened to Eduardo of FB as shown in The Social Network movie.
I often wonder the same thing. But I'm guessing she resonates with older female demographic that they want to watch the show. If you look at her numbers, she's invested in 53 companies, of that half were tiny deals (less than $100k) that she did with at least 1 other partner. In fact around 30 deals were less than $90k. So I think that's one of the big problems. When asking prices were $30k, $50K she was way more active. Now that average starting price is at $250k+ I think it got more than she feels comfortable investing in.
I like how everybody was trying to help hector out
But they still didn't offer him nothing
@@Chepchenko because its 500k, they want him to do well they just dont want to be the one doing the wellness for him.
The snack business is so tough. What Kevin said was absolutely accurate. But I’m glad the guy got the deal, especially with someone that is great at raising capital and being a tough negotiator. He needs a guy like Kevin. I hope he becomes really successful.
This makes me so happy. At first both sides were unhappy, after the modification, both sides were happy. Great deal and a really likable entrepreneur
"Last chance to look at me Hector" 🤣
I don't doubt Kevin one bit, but loved seeing the way Barbara, Mark and Lori stepped in to help even the playing field with the negotiation.
When others make an offer they want silence from Kevin. But when Kevin talks his terms everyone hurls insults left and right. That's totally unfair
Lol Kevin does the same thing
All these sharks throwing in their 2 cents lol they are all out. Kevin is a straight G
Kevin was correct and he was flexible and fair. Most mature investor there
Barbara: Kevin is taking a huge risk... and for that reason I'm out.
Non dilutable 5% could be worse off than dilutable 10%. If what Kevin said is right and he ends up at 1% after dilution starting at 5%, he should anticipate ending at 2% after dilution with 10%. Now, he has a 5% non-dilutable. Slick move.
Kevin is so good that no other shark wants him to get deals cause he'll eventually rip then apart
Isn't 12.5% interest rate high?
Yeah it is
So what does that mean that his equity of 5% won't get diluted? How would his equity get diluted when raising other capital? Can anyone explain in simple terms?
Let's say Mr wonderful had 10% and the entrepreneur had 90% to begin with. When they raise more funds for equity and say they give up 30% of the company, the entrepreneur and Mr wonderful would have to give up 30% of their share. The new equity ownership would be 30%, 63% for the entrepreneur and 7% for Mr wonderful.
500,000 as a line of credit at 12.5% interest for a non-dilutable 5% stake
Does the "non-dilutable 5% stake" mean that Mr. Wonderful will keep the 5% stake no matter what happens to the business?
If it doesn't say "non-dilutable" does that mean the entrepreneur can take the 5% stake that Mr. Wonderful holds in the business and sell those shares?
When Kevin says "he is going to issue shares", what is Mr. Wonderful trying to say?
Normal 5% share means that if someone else buys 20% of the company, Kevin's share drops to 4% as it decreases by 20% of original amount as well. Non dilutable means no matter what it stays at 5%
@@mohammedyakub3760 What do you mean by "as it decreases by 20% of the original amount as well"? What is the original amount?
It's easier for me if you could just answer the last 2 questions for me? You answered the first question. Make sure you write. #2 and #3. So I can understand which order you answered it.
@@milanpatel2764yes, when it's dilutable, in further money raising Kevin's share drops down, and when he says 'issue shares' he means raising more money .
Mr Wonderful inadvertently lost out on that extra 2% that Hector initially countered with. Smart move to offer 5% Non-diluted shares.
Just move it to another night for the sake of TGIF
Why are they showing the endings and not the whole pitch/negotiation? I want to know what the whole company is about, the entrepreneur's background and why the other sharks went out.
Barbara was out before he walked out
That’s a wonderful offer
Kevin come on man, haha... taking risk my ass with the loan🤨
Loans are risky. Why do you think Silicon Valley Bank went down?
He literally explained what the risk was, hence why they ended up with "non-dilutable" shares. There are big risks when it comes to loans. That's why banks don't do it instantly. Risks for both parties.
That's my friend's dad! 😮
Can someone explain to me how Mr. Wonderful 10% would’ve diluted over time?
Let's say Mr wonderful had 10% and the entrepreneur had 90% to begin with. When they raise more funds for equity and say they give up 30% of the company, the entrepreneur and Mr wonderful would have to give up 30% of their share. The new equity ownership would be 30%, 63% for the entrepreneur and 7% for Mr wonderful.
@@Jay-vl9oi thank you! This makes perfect sense to me now
Lets say there are 100,000 shares, and Kevin owns 5% which is 5,000 shares. Well as companies need to raise more money they dilute shares by adding more. If they eventually added and added and there was 500,000 shares then Kevin, who did own 5% with 5,000 shares when there were only 100,000 shares now really only owns 1% with 5,000 shares out if now 500,000 shares.
This is what happened to Eduardo of FB as shown in The Social Network movie.
Kevin is trying to make his crypto money back.
Why is Barbara on the show? She brings nothing of value other than "I don't understand your business , so I'm out"
That is incorrect. Barabara has made several succesful deals and collabs with other sharks. Don't confuse the meme with actual facts.
I often wonder the same thing. But I'm guessing she resonates with older female demographic that they want to watch the show. If you look at her numbers, she's invested in 53 companies, of that half were tiny deals (less than $100k) that she did with at least 1 other partner. In fact around 30 deals were less than $90k. So I think that's one of the big problems. When asking prices were $30k, $50K she was way more active. Now that average starting price is at $250k+ I think it got more than she feels comfortable investing in.
Because she's the one with the highest percentage of closed deals on and behind cam. She's also the executive producer of that show so cry.
@@wolfura We know it's you Barbara.
I could of swore not to long enough she had one of the top 3 biggest pay outs. Well atleast on her return
😂 why did his face look like that
😂😂😂😂🎉
Mark never makes deals with Hispanics
I'm tired of Kevin and his sharky deals. Even though it's important for viewers to see how awful investors can and usually are.
Becoz is business bro. That’s how real world works no emotion involved