Doc-entrepreneur says no deal to Shark Tank investors (Who reply: Your valuation is all wrong)

Healthcare returned to Shark Tank tonight, and this time the investors liked the pitch but hated the $10 million valuation Dr. Amy Baxter put on her consumer medical device company. She appeared on the show asking for a $500,000 investment to scale her business, which makes a cold and vibration device to reduce the sting […]

By Deanna Pogorelc on February 28, 2014 11:44 pm

Healthcare returned to Shark Tank tonight, and this time the investors liked the pitch but hated the $10 million valuation Dr. Amy Baxter put on her consumer medical device company.

She appeared on the show asking for a $500,000 investment to scale her business, which makes a cold and vibration device to reduce the sting of needles, in exchange for 5 percent equity. Instead, she got two separate offers – one from Kevin O’Leary and Robert Herjavec and another from Mark Cuban – for the same amount and 20 percent of the company.

She walked away from both offers, determined to stick to her valuation. But she couldn’t escape unscathed — Barbara Corcoran called her arrogant and Mark Cuban said her distribution strategy was a “huge mistake.”

Baxter pitched the Buzzy pain relief device as a consumer play that belonged in a “big box chain” store. The sharks, and the Twittersphere, didn’t agree, saying it made more sense as a sell to hospitals and doctors.

Ah, the old B2B vs. B2C business model debate.

 

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