On Sunday's "Shark Tank", a former science teacher and high school entrepreneur was on assignment to save man's best friend from aging creeping effects.
Aaron Hirschhorn is the founder of Gallant, a company that specializes in veterinary rejuvenating therapy and the storage of a pet's stem cells for later use in life. Hirschhorn became a believer in science after doctors used stem cell therapy to treat his sore back. Then he watched as his family dog, Rocky, suffered from debilitating arthritis, and wondered why there was no similar treatment for pets.
To help him beat his company, Hirschhorn brought along a group of puppies for the sharks to keep.
"If you were to flash ahead in just 10 short years, four of five of these little guys would suffer from devastating age-related ailments such as arthritis, blindness or worse," Hirschhorn said as some dressed as the gloomy reaper appeared to collect the puppies. Shark Mark Cuban refused to give up his puppy, Fred.
But what was even more frightening to the sharks than the grim reaper was Hirschhorn's valuation of Gallant at $ 25 million. He asked for $ 500,000 for just 2% of his company. The sharks moaned when the shark Daymond John lamented: "This is not going to end well."
Gallant has two divisions: a therapeutic department that develops new stem cell treatments and a banking division where customers store pet stem cells one is a routine spray or neuter.
When it came to stem cells, the shark Kevin O. & # 39; Leary thought to himself, "Screw the dogs, I'll do this myself."
"You had to be castrated first," guest shark Anne Wojcicki replied.
The company's business model made Wojcicki, co-founder and CEO of 23andMe, nervous. Gallant charged customers $ 95 a year, but including payment to the vet, each stem cell equipment cost Gallant $ 375.
"For every sale you have, you lose money. You're going to decline because you don't want cash flow to support it," Wojcicki said. "It makes me really nervous that you're going to lose money on every single sets that go out the door, and it's going to be a few years to recapture. "
It was enough that John decided to continue the company:" Let me tell you something: If Anne is nervous, I'm out . "
Classic Mr. Wonderful fashion offered O & # 39; Leary several choices. Hirschhorn could choose either $ 500,000 for a 2% stake plus an additional 2% in options, or $ 500,000 for a 1% stake plus a royalty of $ 10 per set sold forever.
"It gives me such an incentive to sell these sets for you. You have no idea," said O & # 39; Leary.
While she still had her reservations about Hirschhorn's pricing model (preferring to increase the price of the sets), Wojcicki partnered with fellow shark Lori Greiner to make an offer. They would give Hirschhorn $ 500,000 for 8% of his company.
"I have employees that I've provided a lot of equity," Hirschhorn said. “I got top researchers who basically took a chance on me. I have to protect them too. "
His motorcycle accident was for 4% of the company before the three settled at 5% and entered into an agreement. Holding the puppy Fred, whom he had rescued from Cuban and the grim reaper, Hirschhorn was in awe of being cooperative with the two, saying, "You can see even Fred is happy."
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