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Shark Tank: Pooch Paper Accepts $250,000 From Kevin O’Leary

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Entrepreneur Tracey Rosensteel is on a mission to prevent excess plastic from going into landfills by trying to reduce the amount of plastic bags of dog waste that are thrown into the trash. One-time use bags attribute to millions of pounds of plastic in landfills every year. With 12 million pounds of dog waste in the US alone, Tracey believes that by switching to a biodegradable option, we can have less of an impact on our environment. Thus the premise for her product, Pooch Paper.

Pooch Paper is a biodegradable and compostable paper alternative to one-time use bags. To help further reduce its environmental impact, Pooch Paper is made of recycled paper and manufactured using renewable energy. To use the product, simply grab the dog waste with a piece of Pooch Paper, twist into a small pouch, and toss into the garbage. Because our canine friends can vary in size, pooch paper does too. Tracey has also added additional accessories such as a small canvas pouch to carry Pooch Paper on a leash or belt.

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    With 20 years of experience on Wall Street on her side, Tracey is hoping that a Shark may be willing to invest $250,000 in exchange for 12% equity in Pooch Paper. Over the last seven months, they have sold $50,000 in Pooch Paper and that number is expected to increase as they will be launching in some retail stores around the country. While they like the concept of the product, the Sharks are concerned about the high price point of Pooch Paper in comparison with traditional waste bags. Kevin O’Leary is the only Shark that is willing to extend Tracey an offer but presents his offer in two ways, allowing her to choose whichever investment deal is the most comfortable for the business. The first would be a $250,000 investment in exchange for 50% equity. His other offer is a $250,000 investment in exchange for a $1 royalty per unit in perpetuity with no equity exchanged. Because she doesn’t want to give up 50% equity in Pooch Paper, Tracey decides to accept Kevin’s royalty deal.

    Do you think that Tracey made a wise decision by accepting Kevin’s royalty deal over his equity offer? If you were a Shark would you have invested in Pooch Paper? Start the conversation in the comments below!


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