Cab20 Rock Band
NO DEAL
EPISODE SUMMARY
🕓 Air Date: May 11, 2012
Asking For:
$200,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Cab20 is a band seeking investment for various revenue streams including publishing, merchandising, touring, record sales, digital downloads, and TV/film placements.
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Background Story
CAB20, led by 18-year-old music prodigy Bert Hoover, caught the attention of Tom Callahan six months prior to their Shark Tank pitch. Callahan, impressed by the band’s potential and talent, saw an opportunity to invest in a band with significant growth prospects. Hoover’s background in music and Callahan’s extensive experience in the industry fueled the vision for CAB20’s success.
The Product
CAB20 offers investors a stake in their revenue streams, which include publishing, merchandising, touring, record sales, digital downloads, and TV/film placements.
The band’s sound is comparable to established acts like The Black Keys and The White Stripes, appealing to a broad audience. CAB20 aims to leverage their unique sound and potential marketability to establish a strong presence in the music industry.
How It Went
The company’s position before Shark Tank
CAB20’s performance on Shark Tank ended without a deal, but the band remains optimistic about their future. Despite rejection from the Sharks, they believe in their talent and potential to succeed. Their current funding and structure were not disclosed during the pitch.
The Negotiations:
After a round of questions and concerns from the Sharks about the volatile nature of the music industry, Kevin O’Leary made an offer of $200,000 for a 50% stake in CAB20, emphasizing the risky nature of investing in the band. He expressed a willingness to take the gamble, acknowledging the uncertainty inherent in the music business.
Robert Herjavec also expressed interest, offering $300,000 for a 40% stake, admitting his desire to be a part of the music industry despite its risks. This sparked a negotiation where Tom Callahan and CAB20 discussed internally before countering with a request for $250,000 for 50% ownership.
However, Robert Herjavec and Mark Cuban stuck to their original offers, with Robert affirming his belief in the band’s potential and expressing confidence in their success. Despite the counteroffer, CAB20 ultimately declined all offers, choosing to maintain control of their band and pursue their vision without external investment from the Sharks.
