Cary CEO Kevin Flannery got his chance to swim in ABC's billionaire "Shark Tank" last night, and it was clear pretty early on that an actual tank of great whites might have been a more pleasant experience for him.
Flannery was pitching his company WiSpots, requesting a $1.2 million investment in exchange for a 10% equity share.
For the show, a five-person panel of billionaires listens to each pitch and then they individually decide if they are in or out. They're risking their own money, not ABC's money, so they aren't playing around.
Flannery's video introduction showed him at his home office in Cary, and also having dinner with his wife and two daughters. He told us he has mortgaged his home twice to keep his company going, and that he really needs the Shark money or he may have to sell their home.
When Flannery enters the Shark Tank, he tries to loosen things up ("I'd like to thank y'all for letting me take a dip in your tank, I hope you don't bite.") but the panel was apparently in no mood for jokes.
Flannery pitches his idea, which is to put a "Patient Interaction Center" of wireless pads (WiPads) in doctors offices, which people would then use to pass time while waiting (The company's motto is "The Future of Waiting Patiently.").
As he explains what people would use the WiPads for, the investors point out that people can already do a lot of that stuff on their phones, and for that reason, they seem pretty uninterested. Even after hearing that doctors pay the $9,000 cost for the WiPad center (and make money on advertising), and that he has some contracts pending.
When Kevin tells them that he has mortgaged his home twice, used his kids' college funds, his 401k, his life savings, and maxed out his credit cards, the panel collectively falls apart.
They aren't buying the WiSpots idea, and they basically plead with him to cut his losses and stop sacrificing his family's future on this idea.
As Flannery walks out, judge Robert Herjavec (aka "the nice one") says, "That was heartwrenching." Meanie judge Kevin O'Leary adds, "That's the dark side."
"This is the problem with false encouragement," Herjavec continues. "Most people never get a chance to meet a bucnh of people who've done it before and get some real, unbiased advice."
Ouch.
It doesn't appear that giving up is in this former Marine's vocabulary, though. His WiSpots website spells out his business model in more detail than he was allowed on the show, so perhaps he will still get backing. (We have an UPDATE on where Flannery stands now with WiSpots).
The other budding capitalists on the show didn't exactly get a cake walk.
The Sweet Potato Pie businessman (owner of Mr. Tod's Pie Factory in New Jersey), who even claimed to have a deal pending with McDonalds, had to basically give up half of his business to get backing to expand; a woman from Georgia with a cute idea about a product that cheerfully delivers medicine to cranky kids also had to give up half of her company to get just $50,000; and two brash young men with an already successful business seeking money for a spinoff company, ended up turning down a good offer when the only interested Shark (Herjavec) wanted just 10% of the successful company as part of the deal.
And the guy whose idea was to surgically implant a bluetooth device in your head? You can guess what they told him...
Brooke Cain isn't always proud of the number of hours she logs in front of the TV, but her loss of brain cells can be your gain. From reality shows to sitcoms to the more serious stuff, Brooke keeps her DVR smoking so that she can help keep you in the know. Brooke also tweets for Happiness is a Warm TV (you can follow 
Comments
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Kevin Flannery seems to be
Thu, 08/13/2009 - 00:11 — itlnoorKevin Flannery seems to be very much excited about the idea of WIspots. He taking the plunge in to the shark tank to save his idea is a great step. World acknowledge winners only after they have won. If you are serious and excited about an idea just pursue it. I know you will win if you have conviction.
mortgage leads
Language!
Mon, 08/10/2009 - 16:02 — FlowerpowerThe term is "heart-rending" meaning it TEARS the heart!
Another term to express anguish is "gut-wrenching" meaning the guts twist and writhe at the agony.
The heart does not twist, and the guts do not tear.
wrenching/rending
Mon, 08/10/2009 - 16:24 — brookecain (author)Couldn't the heart "twist" as easily as it could "tear" or "break?" I think we all get the gist of what he meant. Also, Herjavec is from Croatia. Perhaps there, the heart twists...
UPDATE on Flannery and WiSpots
Mon, 08/10/2009 - 13:10 — brookecain (author)Check it out:
http://blogs.newsobserver.com/tv/cary-ceo-says-theres-life-after-shark-tank-bloodbath
coughlin, Lets see how good
Mon, 08/10/2009 - 10:34 — PhantomLordcoughlin,
Lets see how good of an idea you really think it is.
Invest in the business. Put your money at risk and prosper if it succeeds.
Will you?
I would if I had money to
Mon, 08/10/2009 - 10:40 — coughlin_jakeI would if I had money to invest. As it is, a sizable chunk of my paycheck goes to Visa.
I didn't see the show, but
Mon, 08/10/2009 - 10:29 — PhantomLordI didn't see the show, but saw commercials for it. Is this the guy who told one of the 'sharks' to stop talking, and basically insulted him?
So this guy has basically sunk his and his families entire future, stability, and security into this.
I can only imagine the sob stories we will here in the future when they are BK and possibly living on the street.
Different guy
Mon, 08/10/2009 - 12:46 — brookecain (author)No, that was a different guy. That was a young guy from a company called College Hunks Hauling Junk. They are actually a very successful business (go figure) and they just wanted money for a spinoff company called College Foxes Packing Boxes (with women dressed like Hooters waitresses). They got an offer from the Sharks but turned them down, and they came off as looking pretty stupid.
Kevin Flannery was very respectful. I can't judge him because it has to be hard to give up on an idea you really believe in. And he hasn't! I wish him luck.
Huh. I think his Wipad idea
Mon, 08/10/2009 - 10:01 — coughlin_jakeHuh. I think his Wipad idea is pretty good actually. The difference between people's phones and the Wipad is that the Wipad is a DIRECTED dialogue. Given the proliferation of pharmaceutial advertising, I can't believe the drug industry hasn't jumped on the chance to put quizzes in exam rooms. Imagine questionnaires like "do you have ED?", "early stage alzheimer's?"
Phreesia
Mon, 08/10/2009 - 14:36 — MatthewTieThere is a company that has a similar offering. It's a Pad with which patients check in for their appointment and update their health info, and then may get a questionaire, advertising, or sign up for pharma programs. http://phreesia.com/