We love Drum Pants, and you do too; our first article about it remains one of the highest-trafficked in the site’s history. Its founders appeared the other day on the ABC reality show “Shark Tank,” as they tried to raise a round of money in the public eye.
It did not go well. (You can watch the episode online at the link above if you have the right cable provider.)
We find shows like this generally painful and not in the least indicative of the value of the companies being pitched. This segment was worse than most because of our rooting interest, although we confess being fascinated by the inside stuff. (Only 720 preorders?) The founders were looking for $150,000 at a $3 million valuation; they were offered it at a $750,000 valuation — four times more equity than they wanted to give — and the deal fell apart when they dared to hesitate.
So they didn’t get the money. The good news is: there’s some money that you don’t want to take, anyway.
And, by the way: for just appearing on the show, you have to give up 5 percent of your company or 2 percent of future sales.