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.”
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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.
Holy crap your valuation IS NUTS. #sharktank
— Guin (@ladyguin) March 1, 2014
Great margins and she really knows her numbers. Not sure about the valuation though. #SharkTank #buzzy @mcuban @LoriGreiner — Doreen Rainey (@DoreenRainey) March 1, 2014
B2C vs. B2B. Hint: go with B2B. #Buzzy #SharkTank — Jameson Brown (@JamesonGBrown) March 1, 2014
Why would I use a @Buzzy4shots at home?! Market to pediatricians and hospitals!! #SharkTank
— Jessica (@Mommies2Cents) March 1, 2014
#SharkTank Doctors aren’t always the greatest businesspeople. She definitely needs help getting her amazing invention distributed properly.
— Kim Love (@kimmaytube) March 1, 2014
[Image credit: @ABCSharkTank]