Want to know more about what investors want, valuations,  … oh and keep everyone in the room entertained. check out Shark Tank on ABC. New companies, some based around products, are pitched and five investors  decide on if they want to invest.  Free episodes available online now through ABC.

A few notes from selected shows

First, the amount has to be about right $150K for %40 equity at least and that is nice.  $

These investors are looking for revenues and profits.  Must be to grow the company, not to launch it or pay founders.

Where is the due diligence in this show?  Screening process?

can’t split up companies or patents for investment

pre-production prototype valuation of 50K for 55% – deal taken

do vcs ever think that a refused deal was a bad?

investor groups will always favor the response of the most experienced in that industry

Pitchmen, a new show on the Discovery Channel puts inventors, entrepreneurs and seasoned Pitchmen professionals together to bring new products to market.

The recent episodes I have seen (episodes are not online) had products that were on Tools, Fitness, Cosmetics and Home & Garden. A few recent products are the  Tool Bandit, Grabit, Spin Gym, and  Heel Stick.

The typical show format is an introduction to four new concepts in a very short pitch, two of which will become the focus of the show.  The team will then push the product towards market.  Every product is different, is in a different stage and therefore needs different things including advertising / trade show/ investment & partnership presentation.  Billy and Sully often do sidewalk or environmental test markets.

What Else you get behind the Scenes

ABCs of Pitching

While doing demo hand movements can attract attention – good but shouldn’t cover up the demonstration – Bad

Story of the invention big. 50% of selling is the product, the other 50% is getting customers to buy the person / story. Going against big competition: Oxy Clean, Tide – stain pen.

Idea evaluations

Product concerns

Price Setting

Attractive Appearance

Easy to Use

Branding / Naming / Trademarks

Many focus on the financial aspect of Superbowl Ads. I agree that $3 million is astonishing for a 30 second commercial, but I think about that differently. If a company is going to spend an amazing amount of money for 30 seconds, it must be a pretty good example of what the top minds in marketing think work these days. So lets see what we can learn from these commercials.

1. Humor. A funny ad catches eyes, sparks word of mouth and makes people curious, although it has a limited life (not funny after 10 times) and the message can often get lost.

2. Animals are great. Think of the Geicko Gecko, the Budweiser Clydesdale/ frogs, the Sobe Lizzard. What animal would work for you?

If nothing comes to mind, review the advertisements from NBC, hopefully inspiration will strike and at a minimum have some laughs.

This week on Judge Alex an invention dispute was heard between uncle and nephew. Episode intro:

LOUIS’ GREAT INVENTION
WILSON vs. LEONARD
Louis says his nephew Theodore stole his “invention” which he claims had the potential to make him a millionaire! Louis claim Theodore took his idea and started marketing it behind his back. Louis claims when he ran out of money to market his invention he went to Theodore for help but instead he “duped” him into giving him the full rights to his invention and stole all the profits. Theodore claims he did not steal Louis’ invention and claims Louis is just a bad businessman. What does Judge Alex have to say about that? Tune in today and find out. (SHOW #4157)
Episode 4JA082

Of course I couldn’t help but tune in this afternoon during lunch to find out the details. As it turns out, it was a straight forward contract case. The nephew bought the invention from him for a lump sum and put his experience of product promotion behind the product, but the product failed. Apparently others were coming up with similar ideas and although it got into stores, it didn’t last for long. Although the invention failed in the marketplace, the lump sum payment was still enforced (at least to the maximum for small claims court).

This case really showed the difference between selling an invention for a lump sum and a licensing agreement. The lump sum is there success or failure, a license requires success. Unfortunately the enforcement of the filing was very limited, the uncle getting only $5,000 for the $30,000 agreement.

Many disputes like this arise from contracts, so read them! It is amazing how many people will read the first few lines, scan the middle and read the ending. If you have questions ask for clarification, get the language changed to be specific and understandable and if things get dicey bring in a lawyer.

If you play golf, especially on Linx style courses (not a lot of trees) you will enjoy this invention.  Featured in the January 2009 issue of Golf Digest, the Uroclub is the answer to needing to go and not having a place.  This seven iron look-a-like is actually a cleverly disguised urinal created by a Florida area Urologist.  Floyd E Seskin, MD created this water proof half liter plus container with a privacy towel to “keep you out of the woods”.

While the invention is neat and has a need it reveals an interesting marketing trend that we at Flashpoint have been a part of. Notice hoe the inventor sent the note to Golf Digest, not a random publication. While this may seem obvious, getting your press releases to people who have power in your specific market place, are likely to talk about (or even feature it) and follow up with the internet presence to support it is not easy.

Get you product info to those people and you will get mentioned!

On Wednesday December 3rd Flashpoint Development will be featured on the CBS Boston (WBZ-TV) news at 6pm and 11 pm.  The story will focus on several of our projects nearing market and the process that we utilize.  As many know, our non-confidential projects are often used as real in-class examples for Tucker’s graduate school classes at Northeastern’s School of Technological Entrepreneurship and I am sure they are going to dive into the use of these projects in the story.  Hopefully you all can watch, but if now we will attain a clip and feature it on our homepage when possible.  I’ll let you know the behind the scenes of the taping on Wednesday.  We are looking forward to meeting Mish Michaels.