Balu Organics

Barry Donaldson, an IT specialist from Toronto, Ontario, asked for $250,000 for 17% of Balu Organics, an e-commerce business selling handcrafted foam ball pits and play mats for toddlers made with soy-based memory foam, with recyclable low-density plastic balls. Ball pits come in five sizes and colours starting at $139, with a flagship size priced at $329 costing about $130 to make, delivering gross margins of 55-65% and net margins around 18%, projected to rise to 30% this year; the company has sold $1.8 million over three and a half years and reports a 25-30% customer return rate, while Barry continues to work full time for the City of Toronto and pays himself $1,000 a month.

All five Dragons declined to invest. Brian Scudamore said he didn't see the differentiation from competitors, Manjit Minhas cited pricing, marketing claims and market size concerns, Arlene Dickinson called it a lifestyle business rather than a scalable one, Wes Hall was concerned the business was secondary to Barry's day job, and Simu Liu viewed it as a novelty product not yet ready for investment. Barry left without a deal.

Balu Organics appears to have closed. Its products may no longer be available.