1
00:00:02,970 --> 00:00:04,380
Since its launch...

2
00:00:04,404 --> 00:00:06,182
I've made you a good offer.

3
00:00:06,206 --> 00:00:07,450
What are you gonna do about it?

4
00:00:07,474 --> 00:00:10,353
..."Shark Tank" has been
a champion for innovators,

5
00:00:10,377 --> 00:00:13,890
inventors, and small businesses
chasing the American dream.

6
00:00:15,315 --> 00:00:18,061
We don't like to give up.
We will do whatever it takes.

7
00:00:18,085 --> 00:00:19,863
For me, this is
the American dream already.

8
00:00:19,887 --> 00:00:23,099
And this season, in
an unprecedented collaboration,

9
00:00:23,123 --> 00:00:26,536
we've innovated with
the Venetian Resort in Las Vegas

10
00:00:26,560 --> 00:00:28,872
to create a protected
bubble environment

11
00:00:28,896 --> 00:00:32,408
to keep our entrepreneurs,
Sharks, and crew

12
00:00:32,432 --> 00:00:35,411
as safe as possible
from COVID‐19.

13
00:00:36,904 --> 00:00:39,816
Three, two, rolling.

14
00:00:42,476 --> 00:00:44,921
The world is
a much different place now.

15
00:00:44,945 --> 00:00:46,556
Faced with a global pandemic,

16
00:00:46,580 --> 00:00:48,491
many Americans
and small businesses

17
00:00:48,515 --> 00:00:50,560
are struggling
to make ends meet.

18
00:00:50,584 --> 00:00:53,429
Now, more than ever,
we're committed to supporting

19
00:00:53,453 --> 00:00:56,966
and celebrating the best
of American business.

20
00:00:56,990 --> 00:00:58,635
I got laid off due to COVID.

21
00:00:58,659 --> 00:00:59,802
I looked at it as a blessing

22
00:00:59,826 --> 00:01:01,604
'cause I got to work on
Go Oats full time.

23
00:01:01,628 --> 00:01:04,641
I went out driving every day
to restaurants,

24
00:01:04,665 --> 00:01:06,509
selling the product.
Hustle, hustle, hustle.

25
00:01:06,533 --> 00:01:07,977
Cold‐calling distributors,
buyers,

26
00:01:08,001 --> 00:01:09,178
trying to get
our product out there.

27
00:01:09,202 --> 00:01:11,180
We are the most resourceful
people on Earth.

28
00:01:11,204 --> 00:01:13,082
And tonight, Blake Mycoskie,

29
00:01:13,106 --> 00:01:14,684
the founder of Toms Shoes,

30
00:01:14,708 --> 00:01:17,787
who revolutionized how
a new generation does business

31
00:01:17,811 --> 00:01:20,823
with his one‐for‐one
business model, joins the Tank.

32
00:01:20,847 --> 00:01:22,659
I think what the customer
most cares about

33
00:01:22,683 --> 00:01:24,484
is the story behind the product.

34
00:01:26,186 --> 00:01:30,400
In the world today, you either
grind or you get ground up.

35
00:01:30,424 --> 00:01:32,936
We believe American ingenuity...

36
00:01:32,960 --> 00:01:34,971
The hottest category
in neuroscience,

37
00:01:34,995 --> 00:01:37,073
transcranial electrical
stimulation.

38
00:01:37,097 --> 00:01:38,241
...grit...

39
00:01:38,265 --> 00:01:40,443
I sat the kids down,
I said no more eating out,

40
00:01:40,467 --> 00:01:42,111
no more clothes for two years,

41
00:01:42,135 --> 00:01:43,279
no more nothing.

42
00:01:43,303 --> 00:01:44,714
...and determination...

43
00:01:44,738 --> 00:01:47,750
My parents, they sacrificed
so much to send me to school.

44
00:01:47,774 --> 00:01:51,120
They have given so much to me
just to be here right now.

45
00:01:53,113 --> 00:01:54,691
...will prevail.

46
00:01:54,715 --> 00:01:56,192
"Shark Tank's" back in business.

47
00:02:01,254 --> 00:02:03,967
I wish I could help you,
but I can't, but let's go!

48
00:02:03,991 --> 00:02:05,535
Yee‐haw!

49
00:02:05,559 --> 00:02:07,904
Now we're talking.
Now we're talking.

50
00:02:07,928 --> 00:02:10,139
I am a founder
of a billion‐dollar brand.

51
00:02:10,163 --> 00:02:12,041
I want you to become
a unicorn, too.

52
00:02:12,065 --> 00:02:13,610
Yes! Yes!

53
00:02:13,634 --> 00:02:15,478
I don't want to make deals
with stingrays.

54
00:02:15,502 --> 00:02:17,880
We came here to do business
with the great whites.

55
00:02:17,904 --> 00:02:18,982
We want a Shark.
We want a Shark.

56
00:02:19,006 --> 00:02:21,208
You've come to the right place.

57
00:02:29,816 --> 00:02:32,862
First into the Tank is
an innovative storage solution

58
00:02:32,886 --> 00:02:34,897
for a common household product.

59
00:02:44,998 --> 00:02:47,243
Hi, Sharks.
My name's Carson Grill.

60
00:02:47,267 --> 00:02:49,245
And I'm Jason Grill.
We're from Cincinnati, Ohio.

61
00:02:49,269 --> 00:02:52,615
And I am the proud dad
to this CEO right here.

62
00:02:52,639 --> 00:02:55,284
We are here today
seeking $150,000

63
00:02:55,308 --> 00:02:58,287
in exchange for 10% equity
of our company.

64
00:02:58,311 --> 00:02:59,689
Sharks, just a few years back,

65
00:02:59,713 --> 00:03:01,791
Carson and I were doing some
touch‐up paint around the house.

66
00:03:01,815 --> 00:03:04,394
With three kids,
fingerprints all over the walls,

67
00:03:04,418 --> 00:03:06,763
believe me, there's always
touch‐up to be done.

68
00:03:06,787 --> 00:03:08,131
Being a former Marine,

69
00:03:08,155 --> 00:03:10,767
Carson knows I like
to run a tight ship.

70
00:03:10,791 --> 00:03:13,102
The question to you Sharks is,
does your paint closet

71
00:03:13,126 --> 00:03:15,204
look anything like this?

72
00:03:15,228 --> 00:03:16,272
Ooh!

73
00:03:16,296 --> 00:03:18,441
If so, you have
half a dozen gallon cans

74
00:03:18,465 --> 00:03:20,410
with just <i>this</i> much paint.

75
00:03:20,434 --> 00:03:23,246
We went to open
just a few cans, and oh!

76
00:03:23,270 --> 00:03:25,648
The rust, clumps, and smell.

77
00:03:25,672 --> 00:03:28,117
We looked at each other
and said...

78
00:03:28,141 --> 00:03:30,119
"There has to be a better way!"

79
00:03:30,143 --> 00:03:33,389
So that's why I invented the
patented TouchUp Cup for paint,

80
00:03:33,413 --> 00:03:34,657
the most innovative solution

81
00:03:34,681 --> 00:03:36,726
to all of your
paint storage problems.

82
00:03:36,750 --> 00:03:39,829
It even has a stainless‐steel
blending sphere for easy mixing.

83
00:03:39,853 --> 00:03:41,497
Just shake and paint, baby!

84
00:03:43,256 --> 00:03:45,735
Say goodbye
to rust and clumps forever.

85
00:03:45,759 --> 00:03:47,370
TouchUp Cup has extra threads

86
00:03:47,394 --> 00:03:49,305
and an airtight silicone seal

87
00:03:49,329 --> 00:03:51,874
to keep paint fresh
for over 10 years.

88
00:03:51,898 --> 00:03:53,609
We sell a three‐pack
and an individual,

89
00:03:53,633 --> 00:03:56,079
so whether you need a lot
or just a little,

90
00:03:56,103 --> 00:03:57,680
we've got you covered.

91
00:03:57,704 --> 00:03:59,482
But wait. There's more.

92
00:03:59,506 --> 00:04:00,616
There is?

93
00:04:00,640 --> 00:04:01,617
We're already in...

94
00:04:01,641 --> 00:04:03,586
4,000 locations!

95
00:04:03,610 --> 00:04:05,354
Whoo! Whoo! Oh.

96
00:04:05,378 --> 00:04:06,789
Whoo! Whoo!

97
00:04:06,813 --> 00:04:08,291
That <i>is</i> a whoo.
And we're not stopping
there, Sharks.

98
00:04:08,315 --> 00:04:10,026
We'll keep going
until TouchUp Cup

99
00:04:10,050 --> 00:04:12,829
is in every home, store,
and workshop around the world.

100
00:04:12,853 --> 00:04:14,664
So, Sharks, who wants to come...

101
00:04:15,922 --> 00:04:18,134
...shake and paint with us?

102
00:04:18,158 --> 00:04:20,603
Sharks, in front of you
are your very own TouchUp Cups

103
00:04:20,627 --> 00:04:22,004
to try out for yourselves.

104
00:04:22,028 --> 00:04:23,272
How old are you, again?

105
00:04:23,296 --> 00:04:24,273
I'm 15.

106
00:04:24,297 --> 00:04:25,175
Wow.

107
00:04:25,199 --> 00:04:26,409
‐That's great. ‐That's awesome.

108
00:04:26,433 --> 00:04:28,144
Do you have a patent on this
or...?

109
00:04:28,168 --> 00:04:30,480
Yeah, so we have
a utility patent

110
00:04:30,504 --> 00:04:32,381
on the use of the shape
of the cup

111
00:04:32,405 --> 00:04:33,449
and the use of this ‐‐

112
00:04:33,473 --> 00:04:34,684
An application
or an actual patent?

113
00:04:34,708 --> 00:04:36,052
Actual patent. Wow.

114
00:04:36,076 --> 00:04:38,087
So, who is running the business?

115
00:04:38,111 --> 00:04:41,457
And you said
you're in 4,000 locations.

116
00:04:41,481 --> 00:04:42,692
Yeah. Tell us about that, too.

117
00:04:42,716 --> 00:04:44,293
So, we're both running
the business right now.

118
00:04:44,317 --> 00:04:46,095
We both have day jobs.
I'm in school.

119
00:04:46,119 --> 00:04:47,964
I'm gonna be a freshman
in high school.

120
00:04:47,988 --> 00:04:50,099
And my dad works
in medical sales.

121
00:04:50,123 --> 00:04:52,535
We have a private label
partnership

122
00:04:52,559 --> 00:04:54,203
with one of the most
recognizable brands

123
00:04:54,227 --> 00:04:56,739
in painter's tape today,
and they are presenting us

124
00:04:56,763 --> 00:04:59,475
to their 55,000
worldwide locations.

125
00:04:59,499 --> 00:05:02,712
They have already gotten us
into 250 Meijer locations

126
00:05:02,736 --> 00:05:03,980
across the Midwest.

127
00:05:04,004 --> 00:05:06,449
And we are in all eight
distribution centers

128
00:05:06,473 --> 00:05:10,486
of one of the largest hardware
co‐op locations in the world.

129
00:05:10,510 --> 00:05:12,188
And our private label partner
is getting us

130
00:05:12,212 --> 00:05:13,689
into 2,000 locations.

131
00:05:13,713 --> 00:05:15,858
And it's important to note
that we don't have

132
00:05:15,882 --> 00:05:17,860
an exclusive with this partner.

133
00:05:17,884 --> 00:05:19,996
They're paying you a royalty
on unit sales?

134
00:05:20,020 --> 00:05:21,631
No, it's a private label,
so we are the manufacturing.

135
00:05:21,655 --> 00:05:22,932
So you're manufacturing
for them?

136
00:05:22,956 --> 00:05:25,001
Yeah, so we do have
a strategic partnership

137
00:05:25,025 --> 00:05:27,804
in Nashville, Tennessee,
that does all of our picking

138
00:05:27,828 --> 00:05:30,139
and packing,
all of our EDI order entry.

139
00:05:30,163 --> 00:05:31,374
And they do ‐‐ we're about ‐‐

140
00:05:31,398 --> 00:05:32,809
I love this kid. I love him.

141
00:05:32,833 --> 00:05:34,277
The vocabulary is insane!

142
00:05:34,301 --> 00:05:37,213
EDI ‐‐ I didn't learn that
till my fifth year at Toms.

143
00:05:37,237 --> 00:05:39,081
We're about 70% online

144
00:05:39,105 --> 00:05:41,918
and 30% in retail right now
about our sales.

145
00:05:41,942 --> 00:05:45,655
We have sold $220,000 in sales
over the last two years,

146
00:05:45,679 --> 00:05:48,891
with $150,000 of that being over
the last year and a half

147
00:05:48,915 --> 00:05:51,060
and $70,000 of that
being this year.

148
00:05:51,084 --> 00:05:53,229
We got another shipment,
and we are on track

149
00:05:53,253 --> 00:05:55,631
to do $400,000 in sales
this year.

150
00:05:55,655 --> 00:05:57,133
‐That's excellent.
‐Wow. Good for you.

151
00:05:57,157 --> 00:05:58,734
The three‐pack costs you
how much landed?

152
00:05:58,758 --> 00:05:59,902
$1.99 landed.

153
00:05:59,926 --> 00:06:01,404
‐Including packaging?
‐Yes, and shipping.

154
00:06:01,428 --> 00:06:02,905
‐So $1.99. ‐Landed.

155
00:06:02,929 --> 00:06:05,608
The individual cup costs us
90 cents landed.

156
00:06:05,632 --> 00:06:07,009
Okay, and what are you
selling them for?

157
00:06:07,033 --> 00:06:09,912
The individual cup,
we wholesale for $1.89

158
00:06:09,936 --> 00:06:12,515
and retail for $3.99 to $4.99.

159
00:06:12,539 --> 00:06:16,118
And the three‐pack,
we wholesale for $4.25

160
00:06:16,142 --> 00:06:18,788
and retail anywhere
from $9.99 to $12.99.

161
00:06:18,812 --> 00:06:22,291
Normally on "Shark Tank,"
when you bring in your son,

162
00:06:22,315 --> 00:06:24,961
usually, the father
gives the pitch

163
00:06:24,985 --> 00:06:27,630
and the son does a little demo,
and then off they go

164
00:06:27,654 --> 00:06:29,532
because things are gonna
get tough in the Tank.

165
00:06:29,556 --> 00:06:32,735
So far, Carson's doing
all the talking.

166
00:06:32,759 --> 00:06:33,970
You're not saying anything.

167
00:06:33,994 --> 00:06:36,105
You know what?
I have all faith in him.

168
00:06:36,129 --> 00:06:37,773
We run this business 50/50.

169
00:06:37,797 --> 00:06:38,841
He knows what he's doing.

170
00:06:38,865 --> 00:06:40,209
I've gone to trade shows
with my dad.

171
00:06:40,233 --> 00:06:41,911
I've gone to buyer meetings
with my dad.

172
00:06:41,935 --> 00:06:43,579
One buyer, we both walk in.

173
00:06:43,603 --> 00:06:45,481
She looks me dead in the eye
and says,

174
00:06:45,505 --> 00:06:47,116
"Oh, you brought your kid.

175
00:06:47,140 --> 00:06:49,318
He can sit in the hallway,
I guess."

176
00:06:49,342 --> 00:06:50,853
And I said, "Oh, no."

177
00:06:50,877 --> 00:06:52,722
So that's when we pulled up
a chair out of the hallway,

178
00:06:52,746 --> 00:06:53,856
and I led the meeting.

179
00:06:53,880 --> 00:06:55,358
Oh, he went out,
he grabbed the chair...

180
00:06:55,382 --> 00:06:56,826
Nice! ...he pulled it in.

181
00:06:56,850 --> 00:06:59,328
He's being modest.
He has four patents, okay?

182
00:06:59,352 --> 00:07:01,797
A utility patent on
the TouchUp Cup.
Wow.

183
00:07:01,821 --> 00:07:03,099
And three design patents

184
00:07:03,123 --> 00:07:05,501
on the Muffin, Bagel,
and Doughnut Fresh.

185
00:07:05,525 --> 00:07:09,005
Hold on. You're 15 years old,
and you have four patents.

186
00:07:09,029 --> 00:07:10,072
Yes.

187
00:07:10,096 --> 00:07:11,607
These are three
of my newest products ‐‐

188
00:07:11,631 --> 00:07:13,075
the Muffin, Bagel,
and Doughnut Fresh.

189
00:07:13,099 --> 00:07:15,177
They are absolutely
a part of this deal.

190
00:07:15,201 --> 00:07:16,579
They are ergonomically designed

191
00:07:16,603 --> 00:07:18,748
to keep muffins, bagels,
and doughnuts fresh

192
00:07:18,772 --> 00:07:20,950
for three to four days longer
than conventional packaging.

193
00:07:20,974 --> 00:07:22,385
So you're throwing that in?

194
00:07:22,409 --> 00:07:24,053
Yes.
You're not selling those yet?

195
00:07:24,077 --> 00:07:26,756
Well, it's about 5%
of our sales.

196
00:07:26,780 --> 00:07:29,325
Carson, this is super impressive
how much you know your stuff.

197
00:07:29,349 --> 00:07:31,360
Blake, I learned
the words "purchase order,"

198
00:07:31,384 --> 00:07:35,431
"private label," you know,
"distribution" around 27.

199
00:07:35,455 --> 00:07:36,499
He just spits them out.

200
00:07:36,523 --> 00:07:37,967
'Cause you didn't get to watch
"Shark Tank."

201
00:07:37,991 --> 00:07:39,268
Yeah.

202
00:07:39,292 --> 00:07:42,538
I would love to
help you grow this business,

203
00:07:42,562 --> 00:07:44,297
so I would love
to make you an offer.

204
00:07:45,999 --> 00:07:48,611
You're asking for $150,000
for 10%.

205
00:07:48,635 --> 00:07:51,881
I'd like to give us some more
cash flow, some more runway,

206
00:07:51,905 --> 00:07:55,284
so I'd like to do $200,000
for 25%.

207
00:07:55,308 --> 00:07:58,387
Wow. Thank you so much
for that offer.

208
00:07:58,411 --> 00:08:02,258
This guy just made a better
offer than I would,

209
00:08:02,282 --> 00:08:03,592
and I was about to give $100‐‐

210
00:08:03,616 --> 00:08:05,161
Let Carson hear
a bid‐ask situation.

211
00:08:05,185 --> 00:08:07,563
No, but I was gonna give
$150,000 for 25%,

212
00:08:07,587 --> 00:08:09,632
and now he did ‐‐ he did
$200,000 for 25%,

213
00:08:09,656 --> 00:08:12,435
so I'm forced to do $200,000
for 17.5%

214
00:08:12,459 --> 00:08:14,603
to cut his legs out
from underneath him.

215
00:08:14,627 --> 00:08:17,006
Yes! Yes!

216
00:08:17,030 --> 00:08:18,741
Are you serious? I'm serious.

217
00:08:18,765 --> 00:08:20,176
Thank you for that offer.

218
00:08:20,200 --> 00:08:22,345
That is
a really interesting dilemma

219
00:08:22,369 --> 00:08:23,479
you've got there, Carson.

220
00:08:23,503 --> 00:08:25,481
Oh. What a Shark.

221
00:08:25,505 --> 00:08:27,216
So, I'll make it simple, guys.

222
00:08:27,240 --> 00:08:28,818
I love you.
You guys are amazing.

223
00:08:28,842 --> 00:08:31,053
But those guys
have made great offers,

224
00:08:31,077 --> 00:08:32,788
so for those reasons, I'm out.

225
00:08:32,812 --> 00:08:33,856
‐Thank you. ‐Thank you, Mark.

226
00:08:33,880 --> 00:08:34,957
‐Congratulations.
‐Thank you for your time.

227
00:08:34,981 --> 00:08:37,159
My dilemma is this ‐‐
I want Carson

228
00:08:37,183 --> 00:08:39,829
to drop out of school
and become a CEO.

229
00:08:39,853 --> 00:08:41,731
I just finished eighth grade.

230
00:08:41,755 --> 00:08:43,866
I don't think that's
an option right now.

231
00:08:43,890 --> 00:08:45,801
I'm out. And I'd have to agree.

232
00:08:45,825 --> 00:08:48,471
Thank you, Mr. Wonderful.
But I do have to ask you
one question in regards to that.

233
00:08:48,495 --> 00:08:50,206
Who will be running
the business?

234
00:08:50,230 --> 00:08:52,008
'Cause I can't work on it
every day.

235
00:08:52,032 --> 00:08:53,476
Blake can't work on it
every day.

236
00:08:53,500 --> 00:08:54,810
Who's gonna work on it
every day?

237
00:08:54,834 --> 00:08:57,013
Or will we have to hire
somebody else?

238
00:08:57,037 --> 00:08:58,447
You know, if we were sitting
in your shoes,

239
00:08:58,471 --> 00:09:00,116
we'd be asking
the same questions.

240
00:09:00,140 --> 00:09:01,350
We want to get this to a point

241
00:09:01,374 --> 00:09:04,787
where I don't have to
have the other job.

242
00:09:04,811 --> 00:09:08,090
But the time right now
is not right to ‐‐

243
00:09:08,114 --> 00:09:10,092
No, you're trying to keep
the lights on in the house.

244
00:09:10,116 --> 00:09:11,327
I get it, right? Yeah.

245
00:09:11,351 --> 00:09:13,129
But at some time,
when you're working at midnight,

246
00:09:13,153 --> 00:09:14,964
the buyers in retail,

247
00:09:14,988 --> 00:09:17,433
they're up Monday morning
at 9:00 a. m.

248
00:09:17,457 --> 00:09:19,335
Calling people
saying "My shelves are empty."

249
00:09:19,359 --> 00:09:21,570
And if you're not there to
pick up that phone at 9:00 a. m.,

250
00:09:21,594 --> 00:09:23,005
they're calling your competitor.

251
00:09:23,029 --> 00:09:24,940
So who's gonna
pick up that phone?

252
00:09:24,964 --> 00:09:26,409
Do we want to get this
to a point

253
00:09:26,433 --> 00:09:28,544
where I can be full‐time
in this business?

254
00:09:28,568 --> 00:09:30,012
Absolutely. Absolutely.

255
00:09:30,036 --> 00:09:32,648
But I can't at this moment.

256
00:09:32,672 --> 00:09:37,153
I'm gonna have to revise
my offer to $150,000 for 20%.

257
00:09:51,024 --> 00:09:52,701
Two Sharks are out.

258
00:09:52,725 --> 00:09:55,638
Carson and Jason have an offer
from Blake and one from Daymond

259
00:09:55,662 --> 00:09:58,441
for their paint storage product,
TouchUp Cup,

260
00:09:58,465 --> 00:10:00,910
but the offers are changing
once the Sharks discover

261
00:10:00,934 --> 00:10:03,312
that no one is working full time
in the business.

262
00:10:03,336 --> 00:10:07,750
I'm gonna have to revise
my offer to $150,000 for 20%,

263
00:10:07,774 --> 00:10:10,052
'cause I see right now
that at least for a year,

264
00:10:10,076 --> 00:10:12,988
it's going to have to take
administering money

265
00:10:13,012 --> 00:10:16,459
to other people to go out
and do some of these jobs.

266
00:10:16,483 --> 00:10:18,160
That's absolutely right,
Daymond.

267
00:10:18,184 --> 00:10:19,929
I'm not changing my offer.

268
00:10:19,953 --> 00:10:23,265
You've gotten two very good
offers here from both of them.

269
00:10:23,289 --> 00:10:26,902
Someone like Blake
or like Daymond could sit

270
00:10:26,926 --> 00:10:29,205
and really work with you
and teach you

271
00:10:29,229 --> 00:10:31,173
and give you some good advice,

272
00:10:31,197 --> 00:10:35,711
whereas I would want you to have
someone else run it for you.

273
00:10:35,735 --> 00:10:37,613
So I'm gonna go out.

274
00:10:37,637 --> 00:10:39,072
Okay. Thank you for your time.

275
00:10:40,106 --> 00:10:41,750
I have a question on your offer.

276
00:10:41,774 --> 00:10:44,887
So, would you be willing
to fulfill purchase orders,

277
00:10:44,911 --> 00:10:47,356
help us fulfill those
purchase orders on top of that,

278
00:10:47,380 --> 00:10:51,427
if it got,
like, uncontrollable to us?

279
00:10:51,451 --> 00:10:53,262
I don't know
until I get in there

280
00:10:53,286 --> 00:10:55,164
and really understand
your business better.

281
00:10:55,188 --> 00:10:57,433
But if I own 25%
of this business

282
00:10:57,457 --> 00:11:00,469
and we need to, you know, fund
purchase orders or inventory,

283
00:11:00,493 --> 00:11:03,072
you know, then it's gonna be
in my best interest to make sure

284
00:11:03,096 --> 00:11:06,609
that I help arrange a line
of credit at a bank for you.

285
00:11:06,633 --> 00:11:08,210
Daymond, same question to you,

286
00:11:08,234 --> 00:11:11,113
as far as
fulfilling purchase orders.

287
00:11:11,137 --> 00:11:12,137
No.

288
00:11:13,306 --> 00:11:14,517
I don't want to be the bank.

289
00:11:14,541 --> 00:11:16,042
I want to use
other people's money.

290
00:11:17,177 --> 00:11:18,854
Carson, what do you want to do?

291
00:11:18,878 --> 00:11:21,023
Yeah, so, Blake, we really
weren't hoping to give up

292
00:11:21,047 --> 00:11:22,658
25% of our company.

293
00:11:22,682 --> 00:11:25,961
Would you be willing
to compromise and say 17.5%?

294
00:11:28,421 --> 00:11:30,557
For $150,000, yes.

295
00:11:33,726 --> 00:11:36,572
Could you do it
for the $200,000?

296
00:11:36,596 --> 00:11:37,940
No, I don't think so.

297
00:11:37,964 --> 00:11:39,208
I think my best offer

298
00:11:39,232 --> 00:11:41,944
would be $150,000 for 17.5%,
which is what Daymond ‐‐

299
00:11:41,968 --> 00:11:45,181
But I really encourage you
to give a little bit more away

300
00:11:45,205 --> 00:11:47,349
but also get that extra
$50,000 in cash,

301
00:11:47,373 --> 00:11:50,920
'cause I think it's gonna
help bring these ideas to life.

302
00:11:50,944 --> 00:11:51,978
Okay.

303
00:11:55,682 --> 00:11:57,717
Could you do $200,000 for 20%?

304
00:11:58,952 --> 00:12:00,262
I love this kid.

305
00:12:00,286 --> 00:12:01,597
I love that you're asking,

306
00:12:01,621 --> 00:12:03,666
but I really think the value
that I'm gonna bring,

307
00:12:03,690 --> 00:12:05,625
I need to own 25% equity.

308
00:12:07,427 --> 00:12:09,062
What do you want to do, buddy?

309
00:12:11,531 --> 00:12:13,509
Daymond, I would like to
thank you for your offer.

310
00:12:13,533 --> 00:12:15,878
That was really kind of you,
and I really appreciate it.

311
00:12:15,902 --> 00:12:17,046
But, Blake, you have a deal.

312
00:12:17,070 --> 00:12:18,280
Okay. Great. Thank you.

313
00:12:18,304 --> 00:12:19,949
Whoo!

314
00:12:19,973 --> 00:12:21,317
Congratulations, guys.
Well done.

315
00:12:21,341 --> 00:12:22,618
Thank you guys so much.
Thank you, everybody.

316
00:12:22,642 --> 00:12:24,420
‐I really appreciate it.
‐Thank you, guys.

317
00:12:24,444 --> 00:12:25,421
‐Thank you. ‐Congrats.

318
00:12:25,445 --> 00:12:26,755
‐Well done, Blake. Good job.
‐Thanks.

319
00:12:26,779 --> 00:12:27,724
Whoo!

320
00:12:27,748 --> 00:12:29,858
We did it!

321
00:12:29,882 --> 00:12:31,527
How do you feel, man? Amazing.

322
00:12:31,551 --> 00:12:33,429
With Blake on our team,
the sky is the limit,

323
00:12:33,453 --> 00:12:35,297
and we can reach
any level of success.

324
00:12:35,321 --> 00:12:37,633
To all the kid‐preneurs
out there, just like me,

325
00:12:37,657 --> 00:12:39,368
you know that you can get
to this spot

326
00:12:39,392 --> 00:12:41,670
with a little hard work,
you can do your research,

327
00:12:41,694 --> 00:12:43,339
and you can be right here,
where I am.

328
00:12:43,363 --> 00:12:44,907
Get a deal with
one of the Sharks,

329
00:12:44,931 --> 00:12:46,699
and it feels amazing.

330
00:12:48,234 --> 00:12:50,246
I was born in Arlington, Texas,

331
00:12:50,270 --> 00:12:53,382
and grew up spending most of
my life practicing tennis.

332
00:12:53,406 --> 00:12:55,217
I wanted to be
a professional tennis player,

333
00:12:55,241 --> 00:12:58,387
but unfortunately, I had
a career‐ending injury

334
00:12:58,411 --> 00:13:02,358
that stopped my hopes
and dreams in the tennis world.

335
00:13:02,382 --> 00:13:03,659
My first business was

336
00:13:03,683 --> 00:13:05,694
a pickup‐and‐delivery
laundry service.

337
00:13:05,718 --> 00:13:07,963
The only reason
I became an entrepreneur

338
00:13:07,987 --> 00:13:10,866
was I had a need for someone
to come do my laundry

339
00:13:10,890 --> 00:13:12,401
because I was on crutches

340
00:13:12,425 --> 00:13:15,170
and couldn't carry my own
laundry down to the facility.

341
00:13:15,194 --> 00:13:16,972
I went from knowing
nothing about business

342
00:13:16,996 --> 00:13:20,943
to running a company in
three states with 40 employees.

343
00:13:20,967 --> 00:13:22,911
By the time I was 29 years old,

344
00:13:22,935 --> 00:13:25,614
I had created four businesses
and sold three of them.

345
00:13:25,638 --> 00:13:28,684
Frankly, I was a little bit
exhausted and burnt out,

346
00:13:28,708 --> 00:13:30,753
so I decided to go to Argentina.

347
00:13:30,777 --> 00:13:32,621
When I was in Argentina
and traveling,

348
00:13:32,645 --> 00:13:34,256
one thing in particular
I witnessed

349
00:13:34,280 --> 00:13:37,326
was really intense poverty,
and that really stuck with me.

350
00:13:37,350 --> 00:13:39,662
Many of the children
were in the streets

351
00:13:39,686 --> 00:13:40,796
when they should be in school,

352
00:13:40,820 --> 00:13:42,831
and specifically,
not wearing shoes.

353
00:13:42,855 --> 00:13:45,734
That's when I had the idea
to create a shoe business

354
00:13:45,758 --> 00:13:47,803
where every time
we sold a pair of shoes,

355
00:13:47,827 --> 00:13:50,105
we would give a pair
to a child in need.

356
00:13:50,129 --> 00:13:51,473
We told them our vision,

357
00:13:51,497 --> 00:13:53,275
and they thought
we were totally crazy.

358
00:13:53,299 --> 00:13:55,811
Every business consultant
I talked to couldn't believe

359
00:13:55,835 --> 00:13:58,914
that I was gonna give something
away every time I sold it.

360
00:13:58,938 --> 00:14:00,683
But because it was so radical,

361
00:14:00,707 --> 00:14:03,018
it differentiated us
and allowed us to become

362
00:14:03,042 --> 00:14:05,821
one of the fastest‐growing
shoe companies in the world.

363
00:14:05,845 --> 00:14:08,223
Today, there are
thousands of companies

364
00:14:08,247 --> 00:14:10,592
who have either emulated
the one‐for‐one model

365
00:14:10,616 --> 00:14:13,062
or created a social cause
in their business.

366
00:14:13,086 --> 00:14:17,333
To date, Toms has now
donated over 96 million shoes

367
00:14:17,357 --> 00:14:18,801
to children around the world,

368
00:14:18,825 --> 00:14:22,137
and we had reached sales
over $500 million a year.

369
00:14:22,161 --> 00:14:24,273
After growing Toms
for eight years

370
00:14:24,297 --> 00:14:25,941
and dedicating my life to it,

371
00:14:25,965 --> 00:14:28,844
I realized I wanted to do more
as an entrepreneur,

372
00:14:28,868 --> 00:14:32,314
and so I sold half
of the company in 2014.

373
00:14:32,338 --> 00:14:35,217
Making small changes
in our lives

374
00:14:35,241 --> 00:14:36,752
can truly transform them.

375
00:14:36,776 --> 00:14:39,455
This led me on
a two‐year pilgrimage

376
00:14:39,479 --> 00:14:42,291
to meet some of the top
scientists in our country

377
00:14:42,315 --> 00:14:44,927
on the state of well‐being
and really thriving.

378
00:14:44,951 --> 00:14:47,796
This experience led to me
launching a new company,

379
00:14:47,820 --> 00:14:49,031
called Madefor.

380
00:14:49,055 --> 00:14:50,366
Our hope with Madefor

381
00:14:50,390 --> 00:14:53,102
is to teach everyone habits
and practices

382
00:14:53,126 --> 00:14:55,137
that can truly transform
their lives

383
00:14:55,161 --> 00:14:57,406
and help all of us
answer the question

384
00:14:57,430 --> 00:14:58,965
"What am I made for?"

385
00:15:00,166 --> 00:15:02,077
One of the things
I'm most excited about

386
00:15:02,101 --> 00:15:04,046
is competing
with the other Sharks.

387
00:15:04,070 --> 00:15:06,448
Most people know me
as this do‐gooder,

388
00:15:06,472 --> 00:15:08,317
but I'm really competitive.

389
00:15:08,341 --> 00:15:11,653
Success to me means feeling
that you've done your best

390
00:15:11,677 --> 00:15:14,957
to make the greatest impact
you can while on this planet,

391
00:15:14,981 --> 00:15:19,661
knowing that you have given life
everything you can

392
00:15:19,685 --> 00:15:21,330
and you've held nothing back.

393
00:15:35,802 --> 00:15:37,446
Next up is a solution

394
00:15:37,470 --> 00:15:40,949
to a common anxiety
for electric vehicle owners.

395
00:15:47,580 --> 00:15:49,758
Hi. I'm Chris. And I'm Josh.

396
00:15:49,782 --> 00:15:51,693
And we're two of the co‐founders
of SparkCharge,

397
00:15:51,717 --> 00:15:53,695
based in Somerville,
Massachusetts.

398
00:15:53,719 --> 00:15:55,431
We're here today
seeking $1 million

399
00:15:55,455 --> 00:15:57,699
for a 6% stake in our company.

400
00:15:57,723 --> 00:16:00,803
Everyone knows electric vehicles
are the future.

401
00:16:00,827 --> 00:16:02,204
They're better
for the environment,

402
00:16:02,228 --> 00:16:04,139
and soon, they'll be everywhere.

403
00:16:04,163 --> 00:16:06,141
But there's one major thing
keeping them

404
00:16:06,165 --> 00:16:08,677
from growing faster ‐‐
range anxiety.

405
00:16:08,701 --> 00:16:11,346
Range anxiety is the fear
of running out of charge

406
00:16:11,370 --> 00:16:12,915
in your electric vehicle.

407
00:16:12,939 --> 00:16:15,684
That's why I would love
to introduce you to the Roadie,

408
00:16:15,708 --> 00:16:17,152
the world's first and only

409
00:16:17,176 --> 00:16:20,055
portable, modular,
and ultrafast EV charger.

410
00:16:20,079 --> 00:16:22,758
The anxiety of finding
a charging station

411
00:16:22,782 --> 00:16:26,061
and the time wasted waiting
for a vehicle to charge

412
00:16:26,085 --> 00:16:27,930
simply goes away
when the charging station

413
00:16:27,954 --> 00:16:30,032
comes to <i>you,</i>
no matter where you are.

414
00:16:30,056 --> 00:16:31,834
The Roadie has
three core features.

415
00:16:31,858 --> 00:16:33,802
Number one ‐‐ modularity.

416
00:16:33,826 --> 00:16:35,370
Units can be connected together

417
00:16:35,394 --> 00:16:36,905
to give
the electric vehicle owner

418
00:16:36,929 --> 00:16:38,640
the exact amount of range
they want.

419
00:16:38,664 --> 00:16:40,275
Number two ‐‐ portable.

420
00:16:40,299 --> 00:16:42,878
Our portable units
can charge an electric vehicle

421
00:16:42,902 --> 00:16:44,813
anytime and anywhere,

422
00:16:44,837 --> 00:16:47,282
making any location
a charging station.

423
00:16:47,306 --> 00:16:49,952
And, of course, the most
important factor ‐‐ speed.

424
00:16:49,976 --> 00:16:51,620
We can charge
an electric vehicle

425
00:16:51,644 --> 00:16:54,423
at a rate
of one mile every 60 seconds.

426
00:16:54,447 --> 00:16:57,092
So, Sharks, help us create
a more sustainable

427
00:16:57,116 --> 00:16:59,094
mobile EV charging
infrastructure.

428
00:16:59,118 --> 00:17:01,163
Okay, and walk us through it.

429
00:17:01,187 --> 00:17:02,431
So, how would I purchase that?

430
00:17:02,455 --> 00:17:03,832
Wait, wait, wait,
wait, wait, wait, wait.

431
00:17:03,856 --> 00:17:05,167
Wait. Wait one second.

432
00:17:05,191 --> 00:17:07,736
I don't know anything
about this. I'm out.

433
00:17:08,761 --> 00:17:11,507
Okay. Okay.
Thank you. Thank you.

434
00:17:11,531 --> 00:17:12,741
So, yeah, it's really simple.

435
00:17:12,765 --> 00:17:14,843
So, we actually sell
directly to businesses.

436
00:17:14,867 --> 00:17:17,145
So we work with OEMs,
roadside companies,

437
00:17:17,169 --> 00:17:19,114
on‐demand companies,
and service companies.

438
00:17:19,138 --> 00:17:20,816
They use the hardware,
and they go out there

439
00:17:20,840 --> 00:17:23,151
and they charge electric vehicle
owners who request it.

440
00:17:23,175 --> 00:17:24,486
So AAA would carry this?

441
00:17:24,510 --> 00:17:26,088
Is AAA a customer right now?

442
00:17:26,112 --> 00:17:28,023
We do have a program
going on right now.

443
00:17:28,047 --> 00:17:29,825
The question is,
how much does it cost you

444
00:17:29,849 --> 00:17:32,427
to make one of those per module?

445
00:17:32,451 --> 00:17:33,495
What do you sell them for?

446
00:17:33,519 --> 00:17:35,130
So, per module,
our cost of goods

447
00:17:35,154 --> 00:17:37,199
are roughly around $2,500,

448
00:17:37,223 --> 00:17:39,668
and then companies pay
a $1,000 deposit,

449
00:17:39,692 --> 00:17:41,970
and then we charge them
a 150‐buck monthly fee.

450
00:17:41,994 --> 00:17:44,306
Okay, so it's 150 bucks
per month per module.

451
00:17:44,330 --> 00:17:45,374
Yep. Yes.

452
00:17:45,398 --> 00:17:46,975
In the past six months alone,

453
00:17:46,999 --> 00:17:48,911
we've done close to over
half a million in sales,

454
00:17:48,935 --> 00:17:51,747
and we're on track
to do over $1 million
in sales this year alone.

455
00:17:51,771 --> 00:17:53,181
By end of next year,
we're predicting

456
00:17:53,205 --> 00:17:55,017
to do close
to $10 million in sales.

457
00:17:55,041 --> 00:17:57,786
This unit itself, it's patented
through and through.

458
00:17:57,810 --> 00:17:59,555
We developed it
from the ground up.

459
00:17:59,579 --> 00:18:01,590
We also built our own
manufacturing facility

460
00:18:01,614 --> 00:18:02,925
in Buffalo, New York.

461
00:18:02,949 --> 00:18:05,394
We've also been really strategic
with our funding,

462
00:18:05,418 --> 00:18:08,130
but we've won a lot of grants
and awards to get us there.

463
00:18:08,154 --> 00:18:10,232
How much money
have you raised from investors

464
00:18:10,256 --> 00:18:11,934
versus grants that you received?

465
00:18:11,958 --> 00:18:14,570
I'd say we probably raised
about $3 million in venture,

466
00:18:14,594 --> 00:18:16,138
and the rest
has been about awards,

467
00:18:16,162 --> 00:18:17,639
which comes to about $2 million,
so about $5 million total.

468
00:18:17,663 --> 00:18:19,041
‐That's fabulous. ‐Very smart.

469
00:18:19,065 --> 00:18:21,543
And so what percentage of
the company do you guys own now

470
00:18:21,567 --> 00:18:23,145
versus what the investors own?

471
00:18:23,169 --> 00:18:25,271
We have a little over 50%.

472
00:18:26,472 --> 00:18:28,283
But why do you believe
you'll go to $10 million?

473
00:18:28,307 --> 00:18:30,485
You went from $500,000,
you double that ‐‐

474
00:18:30,509 --> 00:18:31,987
congratulations ‐‐
to $1 million,

475
00:18:32,011 --> 00:18:33,388
and now you're gonna 10x it.

476
00:18:33,412 --> 00:18:34,690
Why do you believe
you'll go to that?

477
00:18:34,714 --> 00:18:36,959
So, the electric vehicle
industry is growing rapidly.

478
00:18:36,983 --> 00:18:39,561
Essentially, the reason
that we're here today ‐‐
and that's a great point ‐‐

479
00:18:39,585 --> 00:18:41,396
is that we need to scale
to keep up with demand.

480
00:18:41,420 --> 00:18:42,731
Obviously,
you have to burn some cash

481
00:18:42,755 --> 00:18:44,166
to get to where you are now.

482
00:18:44,190 --> 00:18:47,469
How much have you lost
to get to here?

483
00:18:47,493 --> 00:18:49,838
Since the beginning,
I think the burn rate is

484
00:18:49,862 --> 00:18:51,797
just a little over about 4 mill.

485
00:18:52,865 --> 00:18:54,776
So you guys are in a bad spot
right now?

486
00:18:54,800 --> 00:18:56,278
No. No, we have runway. No.

487
00:18:56,302 --> 00:18:57,913
You've raised $4 million, right?

488
00:18:57,937 --> 00:18:59,414
We've raised $5 million total.

489
00:18:59,438 --> 00:19:01,950
Okay, and you spent 4,
so you got a million left.

490
00:19:01,974 --> 00:19:04,286
Correct. And in order to grow,

491
00:19:04,310 --> 00:19:06,455
you need to invest
to build more batteries.

492
00:19:06,479 --> 00:19:07,756
Alright.

493
00:19:07,780 --> 00:19:09,891
You're basically leasing
these things to people, right?

494
00:19:09,915 --> 00:19:11,226
Correct. Mm‐hmm.

495
00:19:11,250 --> 00:19:13,662
How much capital do I have
to tie up in inventory?

496
00:19:13,686 --> 00:19:15,330
That's probably the best way
to ask that question.

497
00:19:15,354 --> 00:19:16,832
About a third.

498
00:19:16,856 --> 00:19:22,270
You're basically going to carry
a third of revenue as leased.

499
00:19:22,294 --> 00:19:24,339
In other words, you own it.
It's on your balance sheet.

500
00:19:24,363 --> 00:19:27,976
Wouldn't it be better
to simply sell this

501
00:19:28,000 --> 00:19:30,345
and then let the attrition occur
in the market?

502
00:19:30,369 --> 00:19:32,381
Because I think
that's a big issue.

503
00:19:32,405 --> 00:19:35,417
So, you know, we could sell it,
but by leasing it out,

504
00:19:35,441 --> 00:19:37,285
essentially,
we control the asset, and then

505
00:19:37,309 --> 00:19:39,354
when the batteries come back,
we can also repurpose them.

506
00:19:39,378 --> 00:19:41,490
Okay, so, tell me again
what it costs you to make.

507
00:19:41,514 --> 00:19:42,591
$2,500.

508
00:19:42,615 --> 00:19:45,494
And so your payback time is...

509
00:19:45,518 --> 00:19:46,795
Approximately 12 months.

510
00:19:46,819 --> 00:19:48,163
How much are you charging, then,
if it's 12 months

511
00:19:48,187 --> 00:19:49,297
and if it's $150 a month ‐‐

512
00:19:49,321 --> 00:19:51,033
They pay a $1,000 deposit.

513
00:19:51,057 --> 00:19:55,037
Oh, they pay $1,000...
Is it a deposit, or is it an
actual $1,000 of revenue?

514
00:19:55,061 --> 00:19:57,072
It's a $1,000 deposit.
It's nonrefundable.

515
00:19:57,096 --> 00:20:00,175
So it's not a deposit, then.
It's actually a $1,000 payment.

516
00:20:00,199 --> 00:20:01,410
Yes.

517
00:20:01,434 --> 00:20:03,278
I really love
what you're doing here.

518
00:20:03,302 --> 00:20:05,280
And I also think that
you can have

519
00:20:05,304 --> 00:20:08,050
a direct‐to‐consumer end of this
down the road

520
00:20:08,074 --> 00:20:11,653
where they can put in their cars
something smaller

521
00:20:11,677 --> 00:20:13,722
but will give them
that little bit of peace of mind

522
00:20:13,746 --> 00:20:16,291
where they can get to somewhere
where they're safe.

523
00:20:16,315 --> 00:20:18,627
So, we are gonna be coming out
with a consumer product.

524
00:20:18,651 --> 00:20:20,896
The technology inside
is somewhat the same.

525
00:20:20,920 --> 00:20:23,732
It's just smaller size,
lighter package,

526
00:20:23,756 --> 00:20:25,167
more consumer‐friendly look.

527
00:20:25,191 --> 00:20:26,568
What will that retail for?

528
00:20:26,592 --> 00:20:29,171
Depending on scale, we might be
able to get it for under $1,500.

529
00:20:29,195 --> 00:20:31,573
How many units are being
used right now ‐‐ today?

530
00:20:31,597 --> 00:20:32,741
Around 50. Yeah.

531
00:20:32,765 --> 00:20:34,242
50. Oh, that's all?

532
00:20:34,266 --> 00:20:35,510
Only 50 units?

533
00:20:35,534 --> 00:20:36,845
You're backordered right now,
then?

534
00:20:36,869 --> 00:20:37,879
Yes. Correct.

535
00:20:37,903 --> 00:20:39,705
I hate the lease part
of the deal.

536
00:20:40,973 --> 00:20:43,185
I hate owning risk.

537
00:20:43,209 --> 00:20:45,320
That part ‐‐ you lost me there.

538
00:20:45,344 --> 00:20:46,722
I'm out.

539
00:20:46,746 --> 00:20:48,190
Thank you, Kevin.
We appreciate it.
Thank you for your time.

540
00:20:48,214 --> 00:20:50,258
Like Lori,
I think the big opportunity

541
00:20:50,282 --> 00:20:53,228
is developing a consumer unit,

542
00:20:53,252 --> 00:20:55,263
but I find it
really hard to believe

543
00:20:55,287 --> 00:20:57,232
that you're gonna deliver
a consumer unit

544
00:20:57,256 --> 00:20:58,900
for 1,000 bucks or less

545
00:20:58,924 --> 00:21:00,869
when your commercial units
are thousands.

546
00:21:00,893 --> 00:21:03,362
And so for that reason,
I'm gonna be out.

547
00:21:04,630 --> 00:21:06,942
Like I said,
I think it's super smart,

548
00:21:06,966 --> 00:21:08,376
it is innovative.

549
00:21:08,400 --> 00:21:09,778
Mark is Mr. Technology.

550
00:21:09,802 --> 00:21:12,114
Like, I will always look to him
to understand things

551
00:21:12,138 --> 00:21:14,182
that I don't
actually understand.

552
00:21:14,206 --> 00:21:16,418
But this is more
a capital issue.

553
00:21:16,442 --> 00:21:18,553
So, are you interested, Mark?

554
00:21:18,577 --> 00:21:20,222
'Cause I'll go in.
Yeah, I like the concept,
right?

555
00:21:20,246 --> 00:21:21,690
So, here's the challenge, right?

556
00:21:21,714 --> 00:21:23,592
The challenge is
it's a lot of cash up front,

557
00:21:23,616 --> 00:21:25,560
and you're gonna have to
borrow money, not raise money,

558
00:21:25,584 --> 00:21:27,863
because if you raise more money,
then you guys aren't gonna have

559
00:21:27,887 --> 00:21:29,364
any ownership left, right?

560
00:21:29,388 --> 00:21:32,067
Unless you think it's gonna be
a multi‐billion‐dollar company.

561
00:21:32,091 --> 00:21:34,402
We do believe it's gonna be
a multi‐billion‐dollar company.

562
00:21:34,426 --> 00:21:36,905
According to our estimations,
we can get to profitability

563
00:21:36,929 --> 00:21:38,807
without having
to raise additional rounds

564
00:21:38,831 --> 00:21:39,941
by middle of next year.

565
00:21:39,965 --> 00:21:41,376
So, here's the thing. Okay.

566
00:21:41,400 --> 00:21:42,611
6% is nowhere near enough,

567
00:21:42,635 --> 00:21:44,246
particularly for two of us,
right?

568
00:21:44,270 --> 00:21:46,348
So, Lori, I think
the best way to do this

569
00:21:46,372 --> 00:21:49,484
is to let them make us an offer,
and we either say yes or no.

570
00:21:49,508 --> 00:21:51,019
So you know what your number is.

571
00:21:51,043 --> 00:21:52,988
Instead of us
trying to figure out your number

572
00:21:53,012 --> 00:21:54,990
and us going back and forth,
in the interest of time,

573
00:21:55,014 --> 00:21:56,491
just give us your number, right?

574
00:21:56,515 --> 00:21:59,094
And if we like it, we say yes,
and if we don't, we say no.

575
00:22:02,421 --> 00:22:04,766
How about this ‐‐
how about we do $1 million

576
00:22:04,790 --> 00:22:06,868
for 10%, it's split 50/50,

577
00:22:06,892 --> 00:22:10,639
but we'll also throw in 2%
adviser equity and a board seat.

578
00:22:10,663 --> 00:22:12,007
2% each?

579
00:22:12,031 --> 00:22:13,399
Uh...

580
00:22:16,035 --> 00:22:18,046
2% each. We can do 2% each.

581
00:22:18,070 --> 00:22:22,050
So we would go
$500,000, $500,000, 7%, 7%.

582
00:22:22,074 --> 00:22:23,819
Right ‐‐ 5% and 2% basically.

583
00:22:30,449 --> 00:22:32,327
Do we have a deal?
We got a deal.

584
00:22:32,351 --> 00:22:33,428
We have a deal!
Let's charge this up.

585
00:22:33,452 --> 00:22:35,163
Whoo! Let's charge this up.

586
00:22:35,187 --> 00:22:36,631
We are gonna do due diligence.
That's for sure.

587
00:22:36,655 --> 00:22:39,401
Guys, I thought the chance
of you getting a deal was zero.

588
00:22:39,425 --> 00:22:40,769
No! Kevin! No! Come on!

589
00:22:40,793 --> 00:22:42,370
I'm just saying.
I'm just saying.

590
00:22:42,394 --> 00:22:44,806
I think the best person
in this deal is Lori,

591
00:22:44,830 --> 00:22:47,142
who got a free ride
off of Mark Cuban's back.

592
00:22:47,166 --> 00:22:49,077
She's a bottom‐feeder.

593
00:22:49,101 --> 00:22:51,513
I like your style, Lori.
Congratulations, you guys.

594
00:22:51,537 --> 00:22:53,114
Take care, guys.

595
00:22:53,138 --> 00:22:55,116
It was the most
exhilarating ride of my life.

596
00:22:55,140 --> 00:22:57,185
We really want to dig in
and start building this business

597
00:22:57,209 --> 00:22:58,620
to be a billion‐dollar business.

598
00:22:58,644 --> 00:23:00,388
With the power of Lori and Mark,

599
00:23:00,412 --> 00:23:03,191
SparkCharge is now fully charged
to take over the world.

600
00:23:03,215 --> 00:23:04,893
People don't realize,
when you raise money,

601
00:23:04,917 --> 00:23:06,695
it's not an accomplishment ‐‐
it's an obligation.

602
00:23:06,719 --> 00:23:09,431
Exactly.
But our media celebrates it.

603
00:23:09,455 --> 00:23:12,400
They celebrate raising money
as if that's like profitability.

604
00:23:24,403 --> 00:23:25,714
Next into the Tank

605
00:23:25,738 --> 00:23:28,483
is a way to protect
against germs and viruses.

606
00:23:38,150 --> 00:23:39,294
Hi, Sharks.

607
00:23:39,318 --> 00:23:40,395
My name is Pete Badaway,

608
00:23:40,419 --> 00:23:42,330
and this is
my beautiful wife, Bianca.

609
00:23:42,354 --> 00:23:46,568
We're seeking $100,000
for 10% equity in our company.

610
00:23:46,592 --> 00:23:48,670
Sharks, we want
to introduce you to Joe.

611
00:23:48,694 --> 00:23:51,172
Joe here,
he's just like all of us ‐‐

612
00:23:51,196 --> 00:23:52,641
gets up, gets himself ready,

613
00:23:52,665 --> 00:23:55,010
puts his mask on,
and heads off to work.

614
00:23:55,034 --> 00:23:59,147
The second Joe leaves his house,
these nasty little germs,

615
00:23:59,171 --> 00:24:03,084
which are filled with odor,
dirt, grime, and even bacteria

616
00:24:03,108 --> 00:24:05,887
are flying at him
from all different directions.

617
00:24:05,911 --> 00:24:08,123
I love it.

618
00:24:08,147 --> 00:24:09,858
Whether he's grabbing
a quick latte...

619
00:24:09,882 --> 00:24:11,927
Yes! ...at a crowded cafe,

620
00:24:11,951 --> 00:24:14,362
walking past
a sneezing co‐worker,

621
00:24:14,386 --> 00:24:15,931
and let's not forget
all those nasties

622
00:24:15,955 --> 00:24:18,967
he picks up during his commute
to and from work.

623
00:24:18,991 --> 00:24:21,369
He's washing and cleaning
his hands throughout the day,

624
00:24:21,393 --> 00:24:23,071
but what's he doing
about his clothes?

625
00:24:23,095 --> 00:24:24,940
Nothing, Sharks.
He does nothing.

626
00:24:24,964 --> 00:24:28,109
That crazy, nasty dirt that he's
collecting throughout the day

627
00:24:28,133 --> 00:24:29,778
is still stuck on his clothes.

628
00:24:29,802 --> 00:24:31,446
Let's face it, Sharks ‐‐
we can't all walk around

629
00:24:31,470 --> 00:24:33,615
with these things on all day
to keep us protected.

630
00:24:33,639 --> 00:24:36,318
There are products to wash
and clean our hands on the go,

631
00:24:36,342 --> 00:24:39,487
but why not for our clothes,
which are even more exposed?

632
00:24:39,511 --> 00:24:40,588
And that...

633
00:24:40,612 --> 00:24:44,259
...is why we created GarmaGuard!

634
00:24:44,283 --> 00:24:45,860
GarmaGuard is the first natural

635
00:24:45,884 --> 00:24:48,096
garment and fabric cleanser
of its kind,

636
00:24:48,120 --> 00:24:50,799
which uses natural propellants
to keep you safe

637
00:24:50,823 --> 00:24:52,567
and your clothes
fresh and clean.

638
00:24:52,591 --> 00:24:54,669
Applying our garment spray,
it's easy.

639
00:24:54,693 --> 00:24:56,771
You simply just spray it
onto your clothes.

640
00:24:56,795 --> 00:24:59,174
Helps eliminate odor,
freshen your fabric,

641
00:24:59,198 --> 00:25:01,710
and keep that dirt and grime
under control.

642
00:25:01,734 --> 00:25:03,812
There you go, Joe. Much better.

643
00:25:03,836 --> 00:25:06,715
So, no matter who you are
or what you do...

644
00:25:06,739 --> 00:25:08,950
GarmaGuard gives you
the freedom to live your life

645
00:25:08,974 --> 00:25:10,952
without having to wear
one of these things on all day

646
00:25:10,976 --> 00:25:12,354
to keep you protected.

647
00:25:12,378 --> 00:25:15,156
So, which one of you Sharks
wants to team up with us

648
00:25:15,180 --> 00:25:17,592
to help GarmaGuard the world?

649
00:25:17,616 --> 00:25:19,194
Sharks, we have some samples
in front of you.

650
00:25:19,218 --> 00:25:20,595
First, we're gonna
get out of these suits

651
00:25:20,619 --> 00:25:22,087
and get Joe on his way
out of here.

652
00:25:23,756 --> 00:25:25,467
I really enjoyed
that high school play.

653
00:25:25,491 --> 00:25:26,735
Yeah, that was fun.

654
00:25:26,759 --> 00:25:28,670
It was very good bad theater.

655
00:25:28,694 --> 00:25:32,607
Okay, so, my very first business
was a pickup‐and‐delivery

656
00:25:32,631 --> 00:25:33,808
laundry and dry cleaning
company.

657
00:25:33,832 --> 00:25:35,276
Yes, we know that.

658
00:25:35,300 --> 00:25:38,446
This could really save someone
a lot of money on dry cleaning,

659
00:25:38,470 --> 00:25:39,914
'cause half of the reason
people would

660
00:25:39,938 --> 00:25:41,950
bring their clothes to me,
especially in college,

661
00:25:41,974 --> 00:25:43,451
their clothes
smelled like smoke.

662
00:25:43,475 --> 00:25:45,053
So my first question is,

663
00:25:45,077 --> 00:25:47,655
is, like ‐‐ will this
take away smoke smell

664
00:25:47,679 --> 00:25:49,791
and not have to take it
to the dry cleaning?
Absolutely.

665
00:25:49,815 --> 00:25:52,427
We're getting amazing feedback
from firefighters.

666
00:25:52,451 --> 00:25:54,362
And I'm a police detective
myself,

667
00:25:54,386 --> 00:25:56,431
so I work very close
to firefighters,

668
00:25:56,455 --> 00:25:57,932
and they call me, they're like,

669
00:25:57,956 --> 00:25:59,558
"Pete, this stuff's
really good."

670
00:26:01,593 --> 00:26:03,438
Wow. It works.

671
00:26:03,462 --> 00:26:05,607
I mean, the thing is,
is very few people

672
00:26:05,631 --> 00:26:07,475
ever wear socks
when they wear Toms,

673
00:26:07,499 --> 00:26:09,444
and if you don't wear socks,
they start to stink.

674
00:26:09,468 --> 00:26:11,003
And there's no odor.

675
00:26:11,970 --> 00:26:13,948
How does it work?
How does it extract the odor?

676
00:26:13,972 --> 00:26:15,984
It actually eliminates
odor‐causing bacteria.

677
00:26:16,008 --> 00:26:17,552
So it's killing the bacteria?

678
00:26:17,576 --> 00:26:18,920
Yes, it is. Yeah.
It's lab‐tested.

679
00:26:18,944 --> 00:26:21,423
It does kill bacteria,
kills 99% of germs.

680
00:26:21,447 --> 00:26:22,657
We can't make those claims

681
00:26:22,681 --> 00:26:24,426
because we're not
EPA‐registered yet,

682
00:26:24,450 --> 00:26:25,960
so we're selling it
as a cleaner now,

683
00:26:25,984 --> 00:26:27,695
but we know how effective it is.

684
00:26:27,719 --> 00:26:29,330
Viruses, too, then? Yes.

685
00:26:29,354 --> 00:26:30,389
COVID?

686
00:26:31,757 --> 00:26:33,234
Uh... That's a big question.

687
00:26:33,258 --> 00:26:34,736
Yeah, we don't have
that kill claim yet.

688
00:26:34,760 --> 00:26:36,604
I mean, that's clearly
the way...
We're working on that.

689
00:26:36,628 --> 00:26:39,174
...that your sales are gonna
grow in time, is if ‐‐

690
00:26:39,198 --> 00:26:41,843
Well, with that in mind,
tell us about your sales.

691
00:26:41,867 --> 00:26:43,812
We've been in business
for a year and a half now.

692
00:26:43,836 --> 00:26:46,748
To date, our sales are $476,000.

693
00:26:46,772 --> 00:26:49,084
Alright, half a million dollars
of sales is not a joke.

694
00:26:49,108 --> 00:26:50,785
You know, that's a good number.

695
00:26:50,809 --> 00:26:53,755
Is this your business that
you've always been in or...?

696
00:26:53,779 --> 00:26:55,657
So, I'm actually a nurse.

697
00:26:55,681 --> 00:26:57,659
I've been working
up until three months ago,

698
00:26:57,683 --> 00:26:59,494
when we had
our third daughter, so...

699
00:26:59,518 --> 00:27:00,595
‐Congratulations.
‐Congratulations.

700
00:27:00,619 --> 00:27:02,030
Thank you. Thank you, thank you.

701
00:27:02,054 --> 00:27:05,033
So, the idea came up,
actually, from being a nurse.

702
00:27:05,057 --> 00:27:06,201
I would come home,

703
00:27:06,225 --> 00:27:08,036
and I wouldn't
want my girls touching me.

704
00:27:08,060 --> 00:27:10,004
I wouldn't want Pete
giving me a hug yet.

705
00:27:10,028 --> 00:27:12,040
I felt so dirty after my shift.

706
00:27:12,064 --> 00:27:13,808
And just watching this
day after day,

707
00:27:13,832 --> 00:27:15,376
I knew that we needed a product

708
00:27:15,400 --> 00:27:17,512
to use on our clothing,
on our uniforms,

709
00:27:17,536 --> 00:27:19,814
on our scrubs throughout our day
before we come home.

710
00:27:19,838 --> 00:27:22,217
And if none exist,
we need to make one.

711
00:27:22,241 --> 00:27:24,052
So, where are you
selling it right now?

712
00:27:24,076 --> 00:27:26,221
What are you doing
to amplify your sales?

713
00:27:26,245 --> 00:27:28,223
So, right now we're selling
on our website,

714
00:27:28,247 --> 00:27:29,724
as well as
a couple other websites.

715
00:27:29,748 --> 00:27:31,259
You're only online right now?
Yes.

716
00:27:31,283 --> 00:27:33,294
Okay, so, how much
do you sell these for,

717
00:27:33,318 --> 00:27:34,729
and what does it
cost you to make?

718
00:27:34,753 --> 00:27:37,899
So, we sell them for $12.99,
and they cost $1.85 to make.

719
00:27:37,923 --> 00:27:39,567
Okay, so you got enough
margins to support...

720
00:27:39,591 --> 00:27:41,503
‐Nice! ‐Yeah, nice margin.

721
00:27:41,527 --> 00:27:44,506
So, guys, you made these sales,

722
00:27:44,530 --> 00:27:47,775
but the golden ring here,
it seems to me,

723
00:27:47,799 --> 00:27:49,878
given where we're at
in this pandemic,

724
00:27:49,902 --> 00:27:54,983
if this said "Kills COVID
on your clothes,"

725
00:27:55,007 --> 00:27:57,018
I think that would be
a really good message.

726
00:27:57,042 --> 00:27:58,052
We're gonna get it. 100%.

727
00:27:58,076 --> 00:27:59,454
What's the timeline to get that?

728
00:27:59,478 --> 00:28:00,755
'Cause I think
that's the question

729
00:28:00,779 --> 00:28:02,724
that we're all gonna ask
and we're all gonna focus on.

730
00:28:02,748 --> 00:28:05,693
Because that will change
your business dramatically.

731
00:28:05,717 --> 00:28:08,520
Six months to a year, I would
say, if I had to estimate.

732
00:28:09,955 --> 00:28:11,533
Look, guys,
look, it's a great product.

733
00:28:11,557 --> 00:28:13,935
It smells good,
obviously works real well.

734
00:28:13,959 --> 00:28:16,137
But every day, I get an e‐mail

735
00:28:16,161 --> 00:28:17,672
from somebody saying
they have this new,

736
00:28:17,696 --> 00:28:20,575
whiz‐bang formula, and you guys
hear about competition

737
00:28:20,599 --> 00:28:22,010
all the time, I'm sure,
right?
Yeah.
Yeah.

738
00:28:22,034 --> 00:28:24,612
So the reality is, you have to
be a great marketing company,

739
00:28:24,636 --> 00:28:26,648
and you're just starting
to learn how to do that.

740
00:28:26,672 --> 00:28:29,350
So I don't think you're quite
ready for my investment.

741
00:28:29,374 --> 00:28:30,385
I'm out.
Alright.
Thank you, Mark.

742
00:28:30,409 --> 00:28:32,187
You're welcome. Appreciate that.

743
00:28:32,211 --> 00:28:34,422
Guys, I understand why you can't
give me what I want.

744
00:28:34,446 --> 00:28:37,458
What I wanted was a little
picture of the coronavirus

745
00:28:37,482 --> 00:28:39,093
with a big red X through it.

746
00:28:39,117 --> 00:28:40,562
That's why
we need your help!
We're working on it.

747
00:28:40,586 --> 00:28:42,397
I know, I know.
We started this in 2017.

748
00:28:42,421 --> 00:28:44,199
To me,
that's the marketing dream.

749
00:28:44,223 --> 00:28:45,667
But it's not just COVID,
Mr. Wonderful.

750
00:28:45,691 --> 00:28:49,237
I mean, this feeling
of cleanliness

751
00:28:49,261 --> 00:28:51,973
and staying sanitized and clean
isn't going anywhere.

752
00:28:51,997 --> 00:28:53,675
No, I get it. I get it.
That's gonna be there
for a long time.

753
00:28:53,699 --> 00:28:56,477
Listen, guys, it's not for me,
but you two are terrific.

754
00:28:56,501 --> 00:28:57,346
Thank you.

755
00:28:57,370 --> 00:28:58,513
Anyways, I'm out. Thank you.

756
00:28:58,537 --> 00:29:00,815
Thank you. Thank you. Thank you.

757
00:29:00,839 --> 00:29:04,586
I think that this is
a good enough business

758
00:29:04,610 --> 00:29:06,120
that you may not need a partner.

759
00:29:06,144 --> 00:29:08,957
I think you guys can scale this
to being $1 million, $2 million

760
00:29:08,981 --> 00:29:11,059
and doing it without a partner.

761
00:29:11,083 --> 00:29:12,260
So I'm out.

762
00:29:12,284 --> 00:29:14,062
Appreciate that, Daymond.

763
00:29:14,086 --> 00:29:18,299
You know, I think that
this is a really good product.

764
00:29:18,323 --> 00:29:20,235
I think it smells fantastic.

765
00:29:20,259 --> 00:29:22,570
And I think you're right
on the money right now.

766
00:29:22,594 --> 00:29:26,107
People would just love to take
something fresh and non‐chemical

767
00:29:26,131 --> 00:29:28,409
and spray it
on their clothes afterwards.
Right.

768
00:29:28,433 --> 00:29:30,511
I'm absolutely going
to be a customer.

769
00:29:30,535 --> 00:29:32,213
I like it a lot.

770
00:29:32,237 --> 00:29:34,983
But it's just so early.

771
00:29:35,007 --> 00:29:37,352
I think you're gonna do great,
but I'm sorry.

772
00:29:37,376 --> 00:29:38,419
I'm out.

773
00:29:38,443 --> 00:29:39,887
Thank you, Lori.
Appreciate the feedback.

774
00:29:39,911 --> 00:29:41,256
Thank you.

775
00:29:41,280 --> 00:29:42,991
Then there was one.

776
00:29:43,015 --> 00:29:44,592
Yeah.

777
00:29:44,616 --> 00:29:45,660
Man, it's tough.

778
00:29:45,684 --> 00:29:48,129
Laundry days. Laundry days.
Come on.

779
00:29:48,153 --> 00:29:49,731
Before I make my final decision,

780
00:29:49,755 --> 00:29:52,200
there's one question I never
got answered, and that is,

781
00:29:52,224 --> 00:29:54,936
your total sales
have been $476,000

782
00:29:54,960 --> 00:29:56,337
over the lifetime
of the business.

783
00:29:56,361 --> 00:29:57,872
What's your sales gonna be
this year

784
00:29:57,896 --> 00:29:59,874
and what's your profitability
gonna be this year?

785
00:29:59,898 --> 00:30:01,342
'Cause you have
huge margins.
Yeah.

786
00:30:01,366 --> 00:30:03,778
So, we'll hit at least
$500,000 this year,

787
00:30:03,802 --> 00:30:05,213
and our margins are around 20%,

788
00:30:05,237 --> 00:30:07,682
so we'll make $100,000
off that $500,000.

789
00:30:12,878 --> 00:30:15,256
You know, I think you have
a great business here.

790
00:30:15,280 --> 00:30:17,225
I think you have great margins.

791
00:30:17,249 --> 00:30:19,427
I actually don't think you need
the equity investment

792
00:30:19,451 --> 00:30:21,429
if you're gonna make
that profitability today.

793
00:30:21,453 --> 00:30:23,631
For many, many years,
I never took investors,

794
00:30:23,655 --> 00:30:26,334
and that's how I was able
to have a very big exit.

795
00:30:26,358 --> 00:30:27,735
My recommendation, you guys,

796
00:30:27,759 --> 00:30:31,172
is get this approval
and whatever you need

797
00:30:31,196 --> 00:30:33,675
so that you can say
"This can kill COVID,"

798
00:30:33,699 --> 00:30:35,310
and your sales
are gonna take off,

799
00:30:35,334 --> 00:30:36,844
and you're gonna be able
to fund it

800
00:30:36,868 --> 00:30:38,413
with the cash flow
of the direct sales.

801
00:30:38,437 --> 00:30:39,781
So ‐‐ But you're buying in early

802
00:30:39,805 --> 00:30:41,349
before we make that claim,
right?

803
00:30:41,373 --> 00:30:43,284
Yeah, I know, but I ‐‐
I mean, our valuation's
gonna go up.

804
00:30:43,308 --> 00:30:45,653
We got 14,000 customers ‐‐
loyal customers.

805
00:30:45,677 --> 00:30:47,922
Our conversion rate's 6.6%.

806
00:30:47,946 --> 00:30:49,824
Our return customer rate's 33%.

807
00:30:49,848 --> 00:30:51,759
The COVID claim
is just the cherry on top.

808
00:30:51,783 --> 00:30:52,994
Man. I'm telling you.

809
00:30:53,018 --> 00:30:54,829
I think the statistics
you keep throwing out

810
00:30:54,853 --> 00:30:57,432
are just making my case
even stronger for

811
00:30:57,456 --> 00:30:59,767
you don't need an investment
right now.

812
00:30:59,791 --> 00:31:01,369
You just need to keep grinding,

813
00:31:01,393 --> 00:31:03,471
and you're gonna look back
and you're gonna have

814
00:31:03,495 --> 00:31:05,506
millions more dollars
in your pocket

815
00:31:05,530 --> 00:31:07,532
because you didn't
give up equity right now.

816
00:31:08,667 --> 00:31:11,267
And then you're gonna
take me to dinner for
giving you that advice.

817
00:31:12,003 --> 00:31:13,581
I love you guys, but I'm out.

818
00:31:13,605 --> 00:31:14,849
Alright.
Appreciate it.
Thank you.

819
00:31:14,873 --> 00:31:16,851
Congratulations on
all you've accomplished, guys.

820
00:31:16,875 --> 00:31:18,753
Thank you
for both of your services.

821
00:31:18,777 --> 00:31:19,887
Thank you. Thank you.

822
00:31:19,911 --> 00:31:21,079
Thank you, guys.

823
00:31:23,949 --> 00:31:26,794
You know, Blake,
I didn't have any investors.

824
00:31:26,818 --> 00:31:28,996
I scrapped it all out. I kept ‐‐

825
00:31:29,020 --> 00:31:30,431
With all the money that I made,

826
00:31:30,455 --> 00:31:32,533
I kept putting it back
into the business,

827
00:31:32,557 --> 00:31:33,901
and the business
was always mine.

828
00:31:33,925 --> 00:31:36,204
And I think that's such
an important message

829
00:31:36,228 --> 00:31:37,905
for people watching to hear,

830
00:31:37,929 --> 00:31:40,675
because I think
we glorify investing.

831
00:31:40,699 --> 00:31:42,143
And, I mean, this show
is all about investing,

832
00:31:42,167 --> 00:31:44,345
and there's times
when an equity investment,

833
00:31:44,369 --> 00:31:46,447
especially from a Shark
and a great partner,

834
00:31:46,471 --> 00:31:48,082
is critical to your growth.

835
00:31:48,106 --> 00:31:49,984
But in this case, I think
they're gonna be great.

836
00:31:50,008 --> 00:31:51,085
They don't need to.

837
00:32:04,256 --> 00:32:06,367
Next up is a product
designed to bring

838
00:32:06,391 --> 00:32:09,904
a little bit of comfort when
you're in the great outdoors.

839
00:32:17,302 --> 00:32:18,446
Hi. My name's Wylie,

840
00:32:18,470 --> 00:32:20,481
and I'm here to tell you
about my company, Rumpl.

841
00:32:20,505 --> 00:32:23,518
But first, Sharks,
I got to ask you a question.

842
00:32:23,542 --> 00:32:25,186
How do you sleep at night?

843
00:32:25,210 --> 00:32:27,522
I'm guessing it's under
a cozy, warm blanket, right?

844
00:32:27,546 --> 00:32:29,957
Blankets are the best,
and they've been keeping people

845
00:32:29,981 --> 00:32:31,592
warm and comfortable
for centuries.

846
00:32:31,616 --> 00:32:34,562
But it's been decades
since anybody's thought
to give them an upgrade.

847
00:32:34,586 --> 00:32:36,731
Meanwhile, we've seen
a textile revolution happening

848
00:32:36,755 --> 00:32:38,433
in outdoor gear
and athletic apparel.

849
00:32:38,457 --> 00:32:41,736
Sharks, Rumpl has taken
these proven new‐age materials

850
00:32:41,760 --> 00:32:43,271
and created a line of durable,

851
00:32:43,295 --> 00:32:45,239
weatherproof,
lightweight blankets.

852
00:32:45,263 --> 00:32:47,875
They're extremely versatile,
warm and cozy,

853
00:32:47,899 --> 00:32:49,310
and can travel with you
from the home

854
00:32:49,334 --> 00:32:50,578
to the outdoors and back.

855
00:32:50,602 --> 00:32:51,870
They repel pet hair...

856
00:32:54,372 --> 00:32:55,540
...debris...

857
00:32:57,509 --> 00:32:59,120
...and stains.

858
00:32:59,144 --> 00:33:00,144
Come on.

859
00:33:01,146 --> 00:33:02,757
Don't waste wine.

860
00:33:02,781 --> 00:33:04,392
It's cheap stuff. Don't worry.

861
00:33:04,416 --> 00:33:06,093
That's the best stuff.

862
00:33:06,117 --> 00:33:08,262
Rumpl blankets
will keep you protected.

863
00:33:08,286 --> 00:33:09,797
But the thing
I'm most proud of, Sharks,

864
00:33:09,821 --> 00:33:11,466
is protecting the planet.

865
00:33:11,490 --> 00:33:12,967
Each of these blankets
is made using

866
00:33:12,991 --> 00:33:14,502
60 recycled plastic bottles

867
00:33:14,526 --> 00:33:16,704
that might otherwise
end up in landfills.
Awesome.

868
00:33:16,728 --> 00:33:18,306
Additionally, we offset 100%

869
00:33:18,330 --> 00:33:19,874
of our carbon footprint
every year

870
00:33:19,898 --> 00:33:22,844
and donate 1% of all sales
to environmental causes

871
00:33:22,868 --> 00:33:24,579
because we care about
protecting the places

872
00:33:24,603 --> 00:33:26,881
that inspired the idea for Rumpl
in the first place.

873
00:33:26,905 --> 00:33:30,051
I'm seeking $600,000
for a 4% stake

874
00:33:30,075 --> 00:33:31,586
of this booming company.
Of course you are!

875
00:33:31,610 --> 00:33:33,087
Of course you are. There we go.

876
00:33:33,111 --> 00:33:35,323
There are samples for you
on your tables in front of you.

877
00:33:35,347 --> 00:33:37,516
Please, let's get cozy
and get to it.

878
00:33:41,586 --> 00:33:43,764
And where do you sell?
Where do you sell and how?

879
00:33:43,788 --> 00:33:44,932
We're selling online.

880
00:33:44,956 --> 00:33:46,868
Amazon. We're in every REI.

881
00:33:46,892 --> 00:33:48,336
I actually bought one in REI.

882
00:33:48,360 --> 00:33:49,770
Oh, right on.
You know the product.
I'm a customer.

883
00:33:49,794 --> 00:33:50,938
What do you think?
Do you like it?

884
00:33:50,962 --> 00:33:52,073
I think the product's great.

885
00:33:52,097 --> 00:33:53,841
I don't really like
the valuation right now,

886
00:33:53,865 --> 00:33:55,176
but we'll talk about that more.

887
00:33:55,200 --> 00:33:56,711
I got to tell you,
this is on me right now.

888
00:33:56,735 --> 00:33:58,412
Yeah. It is really warm.

889
00:33:58,436 --> 00:33:59,914
Yeah. To be so thin is amazing.

890
00:33:59,938 --> 00:34:01,582
Daymond, you look
like a grandmother.

891
00:34:01,606 --> 00:34:03,651
I'm happy, though,
looking like a grandmother.

892
00:34:03,675 --> 00:34:05,753
What is in the inside?
What is the ‐‐

893
00:34:05,777 --> 00:34:07,522
So, the ones you guys
have right there,

894
00:34:07,546 --> 00:34:09,590
they have a hollow
fiber synthetic fill.

895
00:34:09,614 --> 00:34:11,726
It's basically like
a bucatini pasta tube.

896
00:34:11,750 --> 00:34:14,395
But it's a fiber fill?
Yes. Exactly.

897
00:34:14,419 --> 00:34:16,564
Instead of just looking
at the technical aspects
of the blanket ‐‐

898
00:34:16,588 --> 00:34:18,933
I mean, it's great.
I have one. I'm a customer.

899
00:34:18,957 --> 00:34:21,202
But this reminds me a lot ‐‐
when I started Toms,

900
00:34:21,226 --> 00:34:23,504
like, we had a shoe
that a lot of people could copy.

901
00:34:23,528 --> 00:34:26,841
So there's nothing in this
blanket that doesn't mean

902
00:34:26,865 --> 00:34:29,544
that I can't start a company
just like it tomorrow.

903
00:34:29,568 --> 00:34:31,746
Sure.
But what's most important
to me, Wylie, is like,

904
00:34:31,770 --> 00:34:33,714
why did you get passionate
about blankets?

905
00:34:33,738 --> 00:34:35,016
Sure.

906
00:34:35,040 --> 00:34:37,018
I was on a ski trip with
a friend just outside Mammoth,

907
00:34:37,042 --> 00:34:38,586
and our car froze.

908
00:34:38,610 --> 00:34:40,588
It was, like, the coldest night
on record in Mammoth.

909
00:34:40,612 --> 00:34:42,723
And we woke up the next morning,
car wouldn't start,

910
00:34:42,747 --> 00:34:45,026
and we were several miles
up a dirt road.

911
00:34:45,050 --> 00:34:46,494
We had no cell service.

912
00:34:46,518 --> 00:34:48,729
So it was kind of a sketchy
situation we found ourselves in.

913
00:34:48,753 --> 00:34:50,598
And we bundled up
in our sleeping bags,

914
00:34:50,622 --> 00:34:51,832
and we started talking
about how,

915
00:34:51,856 --> 00:34:53,200
"Man, you know,
I really like these materials

916
00:34:53,224 --> 00:34:55,469
so much more than
my comforter back home."

917
00:34:55,493 --> 00:34:57,104
And we decided, you know,
"When we get out of here,

918
00:34:57,128 --> 00:34:58,739
we're gonna make
a sleeping bag blanket."

919
00:34:58,763 --> 00:34:59,941
We bundled up
in our sleeping bags

920
00:34:59,965 --> 00:35:01,309
and just waited
for somebody to show up.

921
00:35:01,333 --> 00:35:03,911
It was several hours
before somebody eventually did.

922
00:35:03,935 --> 00:35:05,513
So, what does one cost?
What do these ‐‐

923
00:35:05,537 --> 00:35:06,547
100 bucks.

924
00:35:06,571 --> 00:35:07,882
And what's your landed cost?

925
00:35:07,906 --> 00:35:09,417
$25. 25 bucks.

926
00:35:09,441 --> 00:35:11,419
So it's a good margin.
And then are you selling
it wholesale? What?

927
00:35:11,443 --> 00:35:13,220
$50. $50? Okay.

928
00:35:13,244 --> 00:35:15,389
$49.50, actually,
'cause it's $99.
And can you just take us
through, like,

929
00:35:15,413 --> 00:35:17,692
the year you started and
what the sales ramp‐up has been?

930
00:35:17,716 --> 00:35:19,927
Yeah, so, we started
end of 2013.

931
00:35:19,951 --> 00:35:22,630
2014, we did 450K in sales,

932
00:35:22,654 --> 00:35:24,565
then $950,000, 2.7,

933
00:35:24,589 --> 00:35:25,967
Ohh.

934
00:35:25,991 --> 00:35:26,968
Wow!

935
00:35:26,992 --> 00:35:28,002
...6.5.

936
00:35:28,026 --> 00:35:29,070
Oh. Ouch.

937
00:35:29,094 --> 00:35:30,371
And I'll explain that.

938
00:35:30,395 --> 00:35:31,806
And then this year,
we're on track for 8.

939
00:35:31,830 --> 00:35:33,207
What happened to that big drop?

940
00:35:33,231 --> 00:35:34,642
Bet you lost
a wholesale account.

941
00:35:34,666 --> 00:35:35,943
No ‐‐ Well, yes.

942
00:35:35,967 --> 00:35:36,944
Yes. Of course.

943
00:35:36,968 --> 00:35:38,346
Actually, what happened is,

944
00:35:38,370 --> 00:35:41,182
in 2018, when we did 8.8,
$3 million of that

945
00:35:41,206 --> 00:35:43,618
was really just with
two large corporate accounts.

946
00:35:43,642 --> 00:35:46,354
How many competitors are doing
pretty much the exact thing

947
00:35:46,378 --> 00:35:49,657
right now in the wholesale
channel and direct channel?

948
00:35:49,681 --> 00:35:51,959
There's probably
a good 15 companies

949
00:35:51,983 --> 00:35:53,227
doing something similar
to what we're doing.

950
00:35:53,251 --> 00:35:55,262
Whoa.
15. This is the big problem,
I think.

951
00:35:55,286 --> 00:35:58,399
Yeah.
Because, I mean, no disrespect
to the business right now,

952
00:35:58,423 --> 00:36:00,768
but to have this level
of valuation

953
00:36:00,792 --> 00:36:03,938
and have zero barriers to entry
and 15 competitors,

954
00:36:03,962 --> 00:36:06,540
that makes me really scared
as an investor.

955
00:36:06,564 --> 00:36:07,708
And before you leave,

956
00:36:07,732 --> 00:36:10,611
because your valuation
is $15 million,

957
00:36:10,635 --> 00:36:12,213
you do have to bring up
how much money

958
00:36:12,237 --> 00:36:13,914
you're going to make
off the $8 million.

959
00:36:13,938 --> 00:36:16,050
Oh, yeah, we're gonna peek
under the blanket on that one.

960
00:36:16,074 --> 00:36:17,752
It's gonna be about
5%, 6% this year,

961
00:36:17,776 --> 00:36:20,488
so $400,000 to $450K.
Only 5% to 6%?

962
00:36:20,512 --> 00:36:21,489
Pre‐tax? Pre‐tax?

963
00:36:21,513 --> 00:36:23,391
That's the profit?

964
00:36:23,415 --> 00:36:24,625
Yeah, pre‐tax.

965
00:36:24,649 --> 00:36:25,926
So, how much money
have you raised?

966
00:36:25,950 --> 00:36:27,395
Yeah. I really want to talk
to you guys about this

967
00:36:27,419 --> 00:36:29,330
because I know this is gonna be
a sticking point here.

968
00:36:29,354 --> 00:36:31,565
No. You don't say.

969
00:36:31,589 --> 00:36:33,300
Rumpl has raised
a good amount of money.

970
00:36:33,324 --> 00:36:34,568
We've done two seed rounds.

971
00:36:34,592 --> 00:36:37,605
Both of those equaled
about $1 million.

972
00:36:37,629 --> 00:36:40,041
And then in 2018,
we did a proper A round,

973
00:36:40,065 --> 00:36:41,442
and we raised $3.8 million.

974
00:36:41,466 --> 00:36:42,810
So, that leads
to the next question.

975
00:36:42,834 --> 00:36:44,211
How much cash
do you have in the bank?

976
00:36:44,235 --> 00:36:46,013
$3.5 million.

977
00:36:46,037 --> 00:36:47,248
Whoa.

978
00:36:47,272 --> 00:36:48,315
Why are you here?

979
00:37:00,351 --> 00:37:02,129
All Sharks are still in,

980
00:37:02,153 --> 00:37:04,765
but with a big sales
and plenty of cash in the bank,

981
00:37:04,789 --> 00:37:06,701
the Sharks are skeptical
about why

982
00:37:06,725 --> 00:37:08,936
Wylie needs an investment
from the Sharks

983
00:37:08,960 --> 00:37:11,572
for his outdoor blanket company,
Rumpl.

984
00:37:11,596 --> 00:37:13,007
How much cash
do you have in the bank?

985
00:37:13,031 --> 00:37:14,809
$3.5 million.

986
00:37:14,833 --> 00:37:15,910
Whoa.

987
00:37:15,934 --> 00:37:17,102
Why are you here?

988
00:37:19,337 --> 00:37:21,415
I am here because I would like
to take this product

989
00:37:21,439 --> 00:37:23,050
and this brand
into sports licensing.

990
00:37:23,074 --> 00:37:27,421
Worst excuse <i>ever</i> to be here.

991
00:37:27,445 --> 00:37:29,423
You could have bought as many
licenses as you want with that.

992
00:37:29,447 --> 00:37:31,192
You just call Fanatics,
you call the NBA.

993
00:37:31,216 --> 00:37:32,693
You know how to get a license.
You've done ‐‐

994
00:37:32,717 --> 00:37:34,895
I don't. I don't.
Seriously, I don't.

995
00:37:34,919 --> 00:37:36,731
You have 3‐point‐something
million in the bank.

996
00:37:36,755 --> 00:37:38,733
You got enough to hire people
to go out and do licensing

997
00:37:38,757 --> 00:37:40,568
and to acquire the licenses.

998
00:37:40,592 --> 00:37:42,636
Where my team is focused...
You know what? I'm trying
to figure out ‐‐ Listen.

999
00:37:42,660 --> 00:37:45,606
Listen, listen, this ‐‐
...where my salespeople
are focused is in outdoor.

1000
00:37:45,630 --> 00:37:48,275
Wylie, listen ‐‐
I don't want to distract them
for this other channel.

1001
00:37:48,299 --> 00:37:50,344
- Worst excuse ever.
- Mark, what do you think?

1002
00:37:50,368 --> 00:37:52,012
Do you think he's here
for the exposure? s

1003
00:37:52,036 --> 00:37:53,681
No.
Or do you think
he really wants us to invest?

1004
00:37:53,705 --> 00:37:56,117
Yeah, Wylie, look,
I'm not buying the whole

1005
00:37:56,141 --> 00:37:58,786
"I can't get sports licensing
help without you guys."

1006
00:37:58,810 --> 00:38:00,445
So for those reasons, I'm out.

1007
00:38:04,315 --> 00:38:06,393
You know, Wylie,

1008
00:38:06,417 --> 00:38:08,996
it takes my breath away
that you would come in here

1009
00:38:09,020 --> 00:38:12,833
and ask me to pay you 50 times
free cash flow for blankets.

1010
00:38:12,857 --> 00:38:16,837
We don't really need the cash.
What we need is a partner.

1011
00:38:16,861 --> 00:38:20,165
And what I'm willing to talk
about is a loan with a royalty.

1012
00:38:22,033 --> 00:38:23,911
Did you say "royalty"?
I said "royalty."

1013
00:38:23,935 --> 00:38:25,846
Was I being nasty to you?
I take it all back.

1014
00:38:25,870 --> 00:38:27,681
No, no, it's all fair. Okay.

1015
00:38:27,705 --> 00:38:30,417
Do you know why, Wylie? 'Cause
you have something called sales.

1016
00:38:30,441 --> 00:38:31,752
Hit me. What do you got?

1017
00:38:31,776 --> 00:38:33,921
Alright, so, I would like
to potentially structure this

1018
00:38:33,945 --> 00:38:36,157
as a $600,000 loan,

1019
00:38:36,181 --> 00:38:38,859
10% interest
paid back over 2 years,

1020
00:38:38,883 --> 00:38:42,062
and then 5%
of all revenue generated

1021
00:38:42,086 --> 00:38:43,621
in the sports license channel.

1022
00:38:46,424 --> 00:38:47,935
I'm gonna make you an offer.

1023
00:38:47,959 --> 00:38:50,871
A loan at $600,000 at 10%

1024
00:38:50,895 --> 00:38:55,442
and 5% of sales for 2 years.

1025
00:38:55,466 --> 00:38:56,877
That's crazy. Hold on.

1026
00:38:56,901 --> 00:38:59,079
So when my Sun‐Staches guys
came on here, they had nothing.

1027
00:38:59,103 --> 00:39:01,215
I got them all of Disney,
all of Marvel,

1028
00:39:01,239 --> 00:39:03,784
Pokémon, sports license ‐‐
all of that stuff.

1029
00:39:03,808 --> 00:39:05,386
Daymond, I think we should
do this together.

1030
00:39:05,410 --> 00:39:07,087
If you can help
grow those channels,

1031
00:39:07,111 --> 00:39:08,823
I know I can help in the DTC.

1032
00:39:08,847 --> 00:39:11,992
Blake and I will give you
$600,000 at 10%.

1033
00:39:12,016 --> 00:39:13,060
That's a loan.

1034
00:39:13,084 --> 00:39:14,829
I would go
after licenses for you.

1035
00:39:14,853 --> 00:39:17,198
Blake, you're gonna go
after wholesale.

1036
00:39:17,222 --> 00:39:19,400
Yeah, I mean, I can literally
grow his wholesale

1037
00:39:19,424 --> 00:39:21,902
by 500% tomorrow.

1038
00:39:21,926 --> 00:39:25,172
So, 2.5% to each of us

1039
00:39:25,196 --> 00:39:27,274
for two years on all sales.

1040
00:39:27,298 --> 00:39:28,676
And then that's done.

1041
00:39:28,700 --> 00:39:30,268
And we get 4% equity.

1042
00:39:33,371 --> 00:39:36,417
I'll give you the $600,000,

1043
00:39:36,441 --> 00:39:38,118
I'll take 4%,

1044
00:39:38,142 --> 00:39:39,987
but we're not gonna
call it a loan.

1045
00:39:40,011 --> 00:39:41,889
I'm just gonna say
give me 10 bucks a blanket

1046
00:39:41,913 --> 00:39:44,191
till I get back $1.8 million,

1047
00:39:44,215 --> 00:39:45,526
and I keep the 4%

1048
00:39:45,550 --> 00:39:49,263
because I became your partner
in my "Shark Tank" portfolio.

1049
00:39:49,287 --> 00:39:51,098
And I'd rather just take the 600

1050
00:39:51,122 --> 00:39:53,000
and pour it onto direct sales.

1051
00:39:53,024 --> 00:39:55,369
That's it.
You don't have to go nuts.

1052
00:39:55,393 --> 00:39:57,771
I'm gonna tell you
what I'm gonna do.
You're paying half
your free cash flow.

1053
00:39:57,795 --> 00:39:58,939
What do you got, Lori?

1054
00:39:58,963 --> 00:40:00,808
I'm out.

1055
00:40:00,832 --> 00:40:02,176
Good call, Lori. Alright.

1056
00:40:02,200 --> 00:40:03,444
Yeah, so, Daymond,

1057
00:40:03,468 --> 00:40:06,614
I think we need more equity
after doing this math.

1058
00:40:06,638 --> 00:40:08,749
We're gonna do a ton of work
on this business.

1059
00:40:08,773 --> 00:40:13,454
So, the deal is
$600,000 loan at 10%,

1060
00:40:13,478 --> 00:40:16,690
2.5% to me and to Daymond
for two years,

1061
00:40:16,714 --> 00:40:18,316
and 10% equity.

1062
00:40:19,317 --> 00:40:20,861
The deals keep on
getting worse for you.

1063
00:40:20,885 --> 00:40:22,263
I mean, that's ‐‐

1064
00:40:22,287 --> 00:40:23,464
No. That's a ‐‐

1065
00:40:23,488 --> 00:40:26,433
I like the Mr. Wonderful
offer better.

1066
00:40:26,457 --> 00:40:28,969
I like the Mr. Wonderful offer
better than that one, as well.

1067
00:40:31,129 --> 00:40:33,607
How about this, Blake?
I'll be honest.
That's fine. There's gonna be
a lot of deals today.

1068
00:40:33,631 --> 00:40:36,377
I was really excited when
I learned that you were
gonna be the guest Shark.

1069
00:40:36,401 --> 00:40:39,113
And I'm stoked on <i>you.</i>
I've admired you
as an entrepreneur

1070
00:40:39,137 --> 00:40:40,681
and an individual
for a long time.

1071
00:40:40,705 --> 00:40:41,682
Thank you.

1072
00:40:41,706 --> 00:40:45,219
What if we do $600,000
as a loan,

1073
00:40:45,243 --> 00:40:47,321
10% interest
paid back over two years,

1074
00:40:47,345 --> 00:40:50,791
2.5% royalty on sales
for two years...

1075
00:40:50,815 --> 00:40:52,092
Okay.

1076
00:40:52,116 --> 00:40:53,227
...and 4% equity?

1077
00:40:53,251 --> 00:40:54,728
So it's the same offer
I came in...

1078
00:40:54,752 --> 00:40:56,897
Now he's back to
where you were before.
...plus the royalty.

1079
00:40:56,921 --> 00:40:59,433
You're gonna have to
give up 10% to get two Sharks.

1080
00:40:59,457 --> 00:41:02,102
And really, you've already said
you want to be dating Blake.

1081
00:41:02,126 --> 00:41:03,804
You're not going to the dance
with Daymond.
I have.

1082
00:41:03,828 --> 00:41:05,773
Yeah.
I mean, you can throw
Daymond under the bus,

1083
00:41:05,797 --> 00:41:08,709
which you're about to do,
'cause there's no way
you're giving up 10%.

1084
00:41:08,733 --> 00:41:10,678
That's right.
I'm not giving up 10%.

1085
00:41:10,702 --> 00:41:13,538
What do you want to do?
That's the decision.

1086
00:41:15,340 --> 00:41:17,584
Alright, so, I'm gonna
give you clarity for this one.

1087
00:41:17,608 --> 00:41:19,186
I don't want to get in the way,
so I'm out.

1088
00:41:19,210 --> 00:41:21,088
I appreciate that, Daymond.
No disrespect, honestly.

1089
00:41:21,112 --> 00:41:22,923
No disrespect taken.
Look, the thing is,

1090
00:41:22,947 --> 00:41:26,493
is I was excited to do a deal
with Daymond on the licensing,

1091
00:41:26,517 --> 00:41:29,163
but I also just have to look
at the value of my time.

1092
00:41:29,187 --> 00:41:32,599
And I'm only gonna focus on two,
maybe three investments a year.

1093
00:41:32,623 --> 00:41:34,935
I'm gonna get involved
like a founder,

1094
00:41:34,959 --> 00:41:36,937
and so I need to be <i>treated</i>
like a founder.

1095
00:41:36,961 --> 00:41:39,039
And unless I have 10% equity,

1096
00:41:39,063 --> 00:41:40,541
I just won't feel
like a founder,

1097
00:41:40,565 --> 00:41:43,344
and I won't be motivated to
help you as much as I want to.

1098
00:41:43,368 --> 00:41:45,646
And that 10%'s
just as low as I can go.

1099
00:41:49,507 --> 00:41:51,085
What are you gonna do, Wylie?

1100
00:41:54,712 --> 00:41:57,548
Guys, I'm sorry.
I can't do these deals.

1101
00:42:02,286 --> 00:42:03,530
I apologize.

1102
00:42:03,554 --> 00:42:06,100
I really, really appreciate
this experience, though.

1103
00:42:06,124 --> 00:42:07,668
Thank you so much.
‐Good luck.
‐Yeah.

1104
00:42:07,692 --> 00:42:08,692
‐Good luck. ‐Alright.

1105
00:42:12,797 --> 00:42:14,675
I came in really wanting to do
a deal with Blake.

1106
00:42:14,699 --> 00:42:16,310
I'm bummed that
it didn't happen.

1107
00:42:16,334 --> 00:42:18,846
I don't think he was being
totally reasonable about
the value of the company.

1108
00:42:18,870 --> 00:42:21,749
I think we could have got
a lot of value out of that.

1109
00:42:21,773 --> 00:42:24,084
But ultimately, I just don't
know that it was the right fit,

1110
00:42:24,108 --> 00:42:26,148
given the valuation
he wanted to put on the company.

1111
00:42:28,513 --> 00:42:36,513
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