All language subtitles for Shark Tank - S07E07 - Jimmy Kimmel and Guillermo, Wink Frozen Desserts, Saavy Naturals, Clean Cube, Simply Fit Board - WEBDL-1080p_Track03

[narrator] Tonight, Silicon Valley
billionaire Chris Sacca

joins the Sharks.

Ideas are cheap. Execution is everything.

[narrator] In the Tank,
entrepreneurs seek an investment

to start, grow, or save their businesses.

[narrator] Who are the Sharks?

They're self-made business experts
worth billions.

Kevin O'Leary
is a shrewd venture capitalist

who made his fortune
selling a children's educational company

for over $4 billion.

Robert Herjavec,
son of an immigrant factory worker,

founded one of the world's preeminent
cyber-security firms.

Lori Greiner, the queen of QVC,
holds over 100 patents,

and has launched more than 400 products,

grossing over
a half a billion dollars in sales.

Mark Cuban,
esteemed billionaire tech mogul

and the outspoken owner
of the Dallas Mavericks.

And billionaire investor Chris Sacca
left his high-profile position at Google

at the height of his career
to start his own venture-capital fund,

which is now one of the highest performing
investment funds in history

with early investments in Twitter,
Instagram, and Uber.

First into the Tank is a tech solution
to the dreaded parking ticket.

My name is David Hegarty,
and I'm from San Francisco, California.

My company is Fixed,

and we are seeking a $700,000 investment
for a five percent equity stake.

Let's talk about the last time
that you guys got a parking ticket.

What was that one emotion you felt
more than all the other emotions?

Anger, right?

What is it about a parking ticket
that generates such anger in us?

It's the injustice of the situation.

You know that they make these signs
confusing on purpose.

You know that they sit by the meter
waiting for it to expire.

You know that the man
has just screwed you over,

and there is nothing
that you can do about it.

[laughing]

-[Kevin] Until now.
-Until now.

Fixed is the app that fights back.

So how does it work?

Step one, take a photograph
of your parking ticket.

Step two, that's it.

There is no step two. It's that simple.

We take that parking ticket,

we run it
through our proprietary algorithm

to look for issues and errors
that make that ticket invalid.

When we find an issue,

we assemble a contest letter
on your behalf and send it to the city.

Four weeks later, you find out
that your ticket has been dealt with.

We need your help
to expand to as many cities

as quickly as we can
because every city needs a ticket hero.

-[Mark] Oh. Ha, ha.
-[Lori laughs]

-So tell us the business model.
-[David] Certainly. Uh.

It's a free app download.
You submit your ticket.

If we beat your ticket,
we charge a 35 percent success fee.

What's the success rate?

We win about 20 to 30 percent
of our contests.

So how many people just do it themselves?

So in San Francisco, only five percent
of parking tickets are contested,

and those that are contested,
I think the win rate is about 20 percent.

What is the typical reason
that a ticket would be...

-[David] Dismissed?
-Dismissed, yeah.

There's lots of different reasons.
So, uh, initially, we look for errors.

So the statutory information
that the officer has to write down.

Frequently, they're in a rush,
they don't write that information,

they made a typo on the license plate,
they wrote Acura when it's an Audi.

We look for all these issues
that make the ticket invalid.

Okay, but you're not really selling
a higher success rate.

You're really selling the fact
that you're contesting it,

'cause only five percent of people
actually contest.

[David] We're actually selling both.
Firstly it's time consuming.

Additionally, most people don't know

that their ticket is invalid for,
like, X, Y, and Z,

so we're basically winning those tickets
they would never have contested.

But, David, how many tickets
are issued per year in America?

We estimate 100 million tickets
written a year.

So this is a major source of income
for the police.

Oh, a huge source.

What's the average penalty, or ticket?

In San Francisco,
the average ticket is about $70.

Are you operating anywhere else right now?

Yeah, we are in San Francisco,
Oakland, Los Angeles, and New York.

Tell us about the business.

You have a $14 million value
on the business.

-[David] Yeah.
-It must be huge. What are your sales?

This year alone, I think we've done
$80,000 in-- in net revenue.

What does it cost you to contest a ticket?
Between the crowd workers, the software,

people working at your place,
what does it cost?

From an average ticket, we make about
five to six bucks in revenue.

You only make $5 or $6 per success?

That's a combination of our 35 percent
win rate when we beat the ticket,

and if we have to pay the ticket for you,
we charge you a 1.95 convenience fee.

What's it cost you to acquire
the incremental customer?

We acquire users for a blended average
of about four to five bucks.

-That's not exciting.
-[Chris] Is that paid marketing?

-I mean, is that Facebook and Twitter ads?
-Uh, no.

We have a team of people

that follow the street-cleaning
vehicles in the city...

-[laughs]
-Come on.

...and put a flyer on the cars
that have a parking ticket.

-[Kevin] Whoa.
-It's actually smart. It's just expensive.

It's not that expensive.

You make $5 average on profit.
It costs you $5 to acquire the customer.

This sounds like a deal
Mark Cuban should put some money into.

-[laughing]
-[David] We-- No, no.

So once we have the user, we have
70 percent retention rate. So our users--

The only way you grow
is they abuse the law more and more.

-They constantly get more parking tickets.
-No, it's the other way around.

-No.
-They get abused by the law.

On average, our users get about
six parking tickets a year.

I'm not worried
about the cost side of this.

I don't think there's gonna be
enough people to use it, ultimately.

I think it's hard for you
to find the users,

and frankly, I'm an investor in Uber.

-Yeah.
-And Uber has shown

-that car ownership is going away.
-[David] Okay.

You've got a shrinking market
you're addressing.

Okay, but let me paint
this vision for you.

Parking tickets alone is about
a $500 million opportunity for us.

Speeding tickets and moving violations,

that's another $3 to $4 billion
opportunity for us.

You're going to get people off
of speeding tickets as well?

Correct.

For most people, it's the same thing.

There's a lot of issues and errors
in the ticket that they're unaware of.

We want to help users basically handle
their moving violations more efficiently.

There's $100 billion spent each year in
the U.S. by consumers on legal services.

So we have acquired
40,000 users over a year.

They sent us their traffic tickets.
They're like,

-"I don't know what to do with this."
-Your business is bringing in customers...

-Exactly.
-...that you can scale up

-over a period of time.
-Exactly. We are--

-I get it, and it's clever.
-[David] Yeah.

How is that worth $14 million today?

Okay, so I'll-- I'll break it down.

If we continue the growth we have
with parking tickets

to the end of this year, we'll be
at an $11 million revenue run rate.

You're gonna go from 80,000 now
to 11 million next year?

At a run rate by the end of next year.
Since January this year,

we've been growing
at 33 percent month over month.

If my three-year-old continues to grow
at the same rate she's growing now,

she's gonna be an eight-footer
within a few years

-and she'll be playing in the WNBA.
-[chuckles]

We haven't gone into traffic
and other moving violations yet.

-How much have you raised?
-We've raised $1.8 million in total.

-At what value?
-That's not bad.

Uh, the last round
was at a $10 million cap.

Wow!

Let me ask you a question, David,
philosophically.

Your basic premise is
you build out to other services,

you're gonna shrink government revenues.
That's basically it.

What do you think the chances are
you're gonna get audited a lot?

[laughing]

Uh, David, listen,
I'm not buying the scale

from 80,000
to 11 million run rate next year.

I'm out.

Here's my problem with it, okay?

I'm in the mutual fund business.

I'm the most regulated guy in the world.

The government looks
at my business every day.

They let me make money
because I stay compliant.

Yeah.

I don't think I want
to invest in a business

that goes to war
with government revenue.

-I just think it's bad karma for me.
-[laughing]

-I'm out.
-Okay.

The problem for me
is you're asking for $700,000

-for a five percent equity stake.
-It's a steal.

I think you're, like...

-just climbing the mountain of this.
-Mm-hmm.

It's a good idea,
but I don't think you're there yet,

and I can't wrap my hands around
if it's gonna really work or not.

And for that reason, I'm out.

Look, I know the size of the market

of traffic ticket
and ambulance-chasing lawyers...

-Yeah.
-How much money they spend...

-Yeah.
-...to acquire customers.

It's a huge market,
and I don't think anyone's nailed it

in the app business yet.

But for me,

placing a bet on this business
is placing a bet against Uber.

I think car ownership goes away,

and I think pretty soon
we're gonna have automated drivers,

we're gonna have
robotic cars going around,

and that's where I wanna be

is investing in the future,
not in the present.

So for that reason, I'm out.

Okay.

I don't agree with Chris that, you know,
car ownership is going away.

Yeah, I don't buy that.

Well, the guys in the Ferraris
don't buy it.

No, I don't have a Ferrari.
I'm not a car guy.

Look, I love the idea of kicking
the government up the ass.

-Oh, that's such a bad idea.
-There's nothing I like more.

We're in the same boat.

-[Mark] Nothing I like--
-Wait.

But this is the money
that actually builds the roads,

funds the libraries,

-builds the homeless shelters.
-Oh, wait.

You wanna be on that side?

This from the person that says,
"You know what? No more cars,"

which means no more tax money from that,
no more sales tax.

You're considering this a tax.

This is the most regressive tax
that is out there.

-I completely agree.
-The people getting parking tickets

are not the people with Ferraris
you can put in a garage,

but people who don't have a garage
who need their car for their job.

-It is the most regressive tax.
-Amen. Amen.

What are you doing, Mark? Yes or no?

-[Mark] Um...
-On or off, up or down?

So the concept of us
standing out there and saying,

"You know what,
the government has come after you

because you can't afford a garage
because--" I love that idea.

-Yeah, it's great.
-I think operationally,

there's some challenges
in order to scale far more quickly

that I can help you with.

So, what I'll offer you
is your $700,000...

for seven percent, right?

And we can structure
that extra two percent

as advisory fees, whatever you want.

That makes it a flat round,

which is not great
for our existing investors.

Not if it's two percent for advisory fees.
It's not a flat round.

That means you put no value on a Shark.

Well, we've progressed a ton since we--

-[Mark] That's fine.
-Okay, so--

And you're gonna progress even more
when I get involved.

I get that.
But I wanna make sure that I have you on--

Like, two percent is a lot, a lot.
I wanna make sure that that's time--

You can e-mail me anytime night or day,

and you're gonna get a return e-mail
from me almost immediately.

[Kevin] What are you gonna do?

Make a decision.

'Cause I think you're getting
a parking ticket outside right now.

I wanna make sure that I have your word

that we have, you know,
a full commitment from you

and you're available
when we need you to help us out.

Sure.

-We have a deal.
-Done.

[Lori chuckling]

-Congratulations.
-Thank you very much.

-It'll be worth it, trust me.
-I'm psyched about this.

Good luck.

-See you at the audit.
-[laughing]

You just paid $700,000 for a company
doing $80,000 in revenue.

I paid $300,000 for a company
with no revenue. It was called Uber.

Interesting.

[David] We have a big vision.

Now that Mark is part of that vision,
it really is the sky's the limit.

He's a contrarian thinker,

and that's exactly what we need
on the team.

[narrator] In season five,
Rob Dickens and Brad Scudder

struck a deal with Mark Cuban
for their events company Rugged Races.

We'd like to strike a deal with you,

-1.75 million for the 25 percent.
-Deal.

[narrator] Let's see
what they're up to now.

[air horn blowing]

We've been working like maniacs
since we made our deal on Shark Tank.

Mark Cuban invested $1.75 million
in our company,

and that's allowed us
to really accelerate our growth.

We've expanded to 28 cities,
and our attendance has exploded.

Over 200,000 people
have now registered for our races,

and we're getting as many
as 18,000 people out to a single event.

This has all translated
into huge sales for us.

In the year before Shark Tank,
we had 4.2 million.

After Shark Tank,
we've got $10.5 million in sales.

All right, guys, here's the course map
for our New England event tomorrow.

We've moved to new offices,
we've hired 20 new people.

We've got a great space now

that's really helping our creativity
and our production.

-What's up, guys?
-How you doing, Mark?

Saying that we are partners
with Mark Cuban opens doors.

Where are we at with sponsors?

I think we're gonna see 30 to 40 percent
growth going into next year.

Venues now wanna work with us,
sponsors now wanna work with us.

Having Mark on our team really gives us
a foot up on everybody else.

Keep in touch, and congratulations, guys.

-Thanks, Mark. Good to see you.
-Thanks a lot.

Good job, guys. Good job.

We have a lot of big things
planned for the future.

We've already expanded into Canada.

We have a new event series
called Costume Dash 5K

and we're looking at other
event production opportunities as well.

When people think
of obstacle course racing,

we want them to think Rugged Maniac.

We want to be the pinnacle of the sport.

-Maniacs!
-[cheering]

-I'm Ann.
-And I'm Dave.

And we live in Palo Alto, California,
with our kids Maya, Derek, and Ben.

Our kids are absolutely
the center of our world.

Becoming a parent is amazing,
but is also scary.

-So close.
-Yay!

When my daughter Maya was born
I tried to breastfeed her,

but I realized
that she was losing too much weight.

I was really anxious,
and I took her to the doctor regularly

to make sure she was growing
and that she was okay.

We know how scary it is
to bring a baby home from the hospital

and to not know how she's developing.

We want to help ease some of those
worries that every new parent has.

[Dave] We have a lot of knowledge
in the baby industry,

but we've never sold
a physical product before.

We want the Sharks
because we've seen the power

of what they can do for businesses,
and we are absolutely thrilled

to get the chance to pitch to them.

-Hi. My name is Ann Crady-Weiss.
-And I'm her husband, Dave Weiss.

[Dave] And together,
we're the co-founders of Hatch Baby.

We are seeking $250,000
for 2.5 percent of our company.

-Becoming a new parent is full of wonder.
-And worry.

It is scary to bring a new infant
home from the hospital

and to blindly trust
that she's developing as she should.

[Dave] The biggest predictor of infant
health in the early days is weight gain.

Babies are checked at doctor's visits,

but what about all the time
in between those visits?

We're here to put parent's minds at ease.

We developed the smart changing pad.

It's a modern redesign
of the traditional diaper-changing pad

found in every baby nursery.

It has a built-in Wi-Fi enabled scale

so that you can see
how much your baby weighs

and tell how much you're nursing
during a feeding.

All of the information syncs
to your smartphone.

No matter who is taking care of your baby,

you can check in anytime, anywhere,
and be ready to share

all the information that you
and your pediatrician care about,

and that leaves more time
for the good stuff.

Sharks, please join us
in helping babies stay on track

and parents stay sane.

We welcome your questions.

Interesting, because you're right.

That product's been around for a long time
without any fundamental change,

but do I really need to know
that level of detail every time?

When I first became a mom 12 years ago,
I prepared a ton.

And then I brought my baby home,
and I was terrified.

I really wanted to breastfeed her,
but why was she crying?

Was she crying
because she didn't have enough?

Was she crying for another reason?
Why was she crying?

And I know now that I'm not alone.

More than 90 percent of moms
have anxiety in the first weeks.

More than two-thirds of moms
don't meet their own breastfeeding goals

because they're worried
about their supply.

-How did the scale help?
-How does this track that?

-[Kevin] Yeah.
-So the way it tracks it

is, um, before you nurse,
you do your normal thing,

you change your baby.

You tap the feeding button,
records a weight.

You go and you nurse your baby,
then you bring the baby back,

touch the same button again,
put the baby down,

it will tell you, you fed 2.75 ounces.

-It's that sensitive a scale?
-It's that sensitive a scale.

That's the primary function of Hatch Baby,

is to determine how much breast milk
the child is consuming?

The primary function of Hatch Baby
is to reassure parents

that their babies are developing
as they should be,

and also to make sure that moms
can meet their own breastfeeding goals.

-Have you sold any yet?
-We have not sold any.

This is in preproduction.
So we launched our website last week.

We're doing pre-sales

-in the coming weeks.
-Last week?

And we will have product shipping to moms
in the coming month.

So you've got a $10 million valuation
on the pre-revenue, pre-nothing.

-And we'd love to tell you why.
-Oh, we wanna hear it. [laughs]

-[laughs] I bet you do.
-I really wanna hear this.

We are experienced entrepreneurs
and executives in this industry.

So I started a company
that I sold to Johnson & Johnson.

Johnson & Johnson
has a division called BabyCenter.

Forty million moms worldwide
use BabyCenter.

Dave and I met at BabyCenter,

and between the two of us
we ran everything consumer-facing.

We ran product, editorial, design,
engineering, and marketing.

It is literally the place you go
for answers in this space.

So, you know, I have two young girls
and one more on the way,

and that's where you go.

You're freaked out, you need an answer.

You wanna know what to do
about this fever, or that color poop,

-you're going to BabyCenter.
-Yeah.

So you've got great experience.
Sold me on that. Check.

So, to go on about the valuation,

The way we got to it
is we went back to the same investors

who funded my last company.

We raised $1.7 million
on a convertible note last September,

when this was essentially concept phase.

What makes you think it has legs?

Well, our experience
from BabyCenter tells us,

um, that this is a product that moms want.

There's a lot more information
you want to track

other than just things
that are weight-based.

Absolutely, and we see the future.

We see there absolutely will be
a smart nursery and--

One of the things
I think you've missed is that,

apart from just dealing with the anxiety,
there's just the vanity

and the geeky desire
to aggregate all this data.

-I could get a sensitive scale...
-You could weigh a baby.

...and I could weigh the child
before and after.

Oh, and there's--
I'm sure there's Bluetooth-based scales

that connect to an app.

[Kevin] Talk about this product.

Price to make it,
what you're gonna sell it for.

So to make it, it costs $89,
and we'll sell it for $299.

Wow.

And the price is in line with other
premium baby products out there.

I'm just trying to understand
for the average family

-that makes $33,000 a year...
-Right.

...can I really get $250 worth
of value from a scale?

Some wanna pay more because this
is the health and safety of their baby.

But also, we can look at other comparables
like the stroller market.

You look at, you know, 20 years ago,
strollers were a utility.

We use them to push our kids around.
Now they are...

You know, $500 is the minimum,
and they are selling like hotcakes.

You have so much credibility
in this space.

It's like, the analogy would be
a great recording artist.

-Gets a huge hit album, you know?
-[chuckling]

And then the next album, five tracks suck.

-You just don't know.
-[laughs]

So, we disagree.

-I know I--
-[Kevin] Of course we disagree.

But, you know, this is a scale.
A $300 scale, that is--

You could say that a Fitbit
was a $100 pedometer.

They're about to IPO
for a billion dollars,

and we're backed by the same people.

The baby market
time and time again has shown

that price is not what parents
are concerned about.

-I agree.
-There's any time in your entire life

that you will throw your budget
out the window, it is for your baby.

How are you gonna get it to market?

At first, we're exclusively selling online
on our site.

And so, what do you think
you're gonna sell in the first year?

In the first year, we forecast
we're gonna sell 20,000 units.

-Twenty-thousand units?
-What's the revenue of that?

Six million dollars.

You're gonna go to 20,000 units
first year?

-Yes.
-We think it's a tiny fraction

of one percent
of the changing pad market.

-We think--
-It is, but it's optimistic.

The challenge is whether your device
will win in that competition

with all the other devices.

I'm not buying that it is.

There's no question that there are
other players in the smart baby market,

but absolutely someone will win,
and who would you rather make a bet on?

-You know what Mike Tyson said, right?
-No.

Everybody has a plan
until they get punched in the face.

I see the value, but I don't know
if that's a feature of some other product

or it's enough to carry it on its own,
and for those reasons, I'm going out.

Past success is not always an indicator
for future success.

-So--
-I just don't buy

into this $300 changing table.

I'm out.

I've been in the product arena
for a very, very long time

and I do think that while people
may like it and they may want to buy it,

not everybody across America
can afford a $300 changing table.

I'm not sure it's a big enough problem

where people will really stretch out
of their budgets that far to buy it.

And so for that reason, I'm out.

I don't think this thing is going to be
as successful as you suggest

because I don't think
America can afford it.

And for your valuation,
you have to pretty well

have everybody say,
"I have to have a Hatch Baby."

I think this is your third album,
and it's not so good.

We do want a Shark on--
I mean, we want a Shark--

-We do want a Shark on our team.
-It won't be me because I'm out.

Four Sharks are out. Chris Sacca's left.

And he's the target market.
He has a child on the way.

I'm looking at this,
and I like smart nursery,

I like changing table as a platform.

I completely identify with that anxiety
in the early days of bringing a kid home.

The issue you're solving
is a relatively short-term issue,

and so what I worry about is you haven't
built something that has longevity,

that makes this thing
necessary and indispensable

to justify that kind of ticket item.

I'd be very interested in the other things
that go in the room.

The monitoring, the temperature taking,
the heart rate--

This is the opportunity
to get in early before we get there.

Yeah. So I love to get in early
in companies.

I got into Uber at a $3 million valuation,

and that's why at a $50 billion valuation
I'm feeling really good about it.

But we already had cars on the road,

there were users on the service.
It was working.

Uh, this at the prototype stage
I think this is overvalued. I'm out.

I'm so sorry to hear that,
but I do wanna take one more shot.

We believe in this business.

We put our heart and soul
into this business.

We do think that we're worth $10 million
and we know that we can get the money,

but the reality is we know
what you guys do for companies.

We want you guys,

-and so if valuation is a concern--
-Well, I--

We would love to find a way
to be creative. Here is an idea.

We raised money last September.
We have $250,000 left on that note.

We would love to bring you guys in
on that note.

We'll give you the same terms as we gave
people when it was concept phase.

-The first money in.
-What was the valuation?

Well, it's on a convertible note,
so it's a $7.5 million cap.

We're here to make a deal.

We believe that with you guys as partners,
this can get to every parent.

I'll do the 250k under the terms
of the convertible note.

But I wanna make sure
I'm on the same terms

as all the other investors
who lead the deal at the series.

Is that a done deal?

-Yes! Absolutely!
-All right.

-Congratulations, Chris.
-Congratulations.

We've heard amazing,
amazing things about you.

-Thank you so much.
-Yeah. Right on, man.

-Congratulations.
-Congratulations, guys.

-[Lori] Good luck.
-Thank you.

-[laughs]
-[Dave] We couldn't be happier.

Chris is a new dad.
We love his investment profile.

We've seen what he can do to companies.

He's Twitter, he's Uber,
he's... he's amazing.

-We're so glad to have him as a partner.
-Totally.

[narrator] Next up is a business
that hopes to ease the pain

of paying for college.

Hello, Sharks.

-My name is Antonio Adams.
-And I'm Tasha Adams.

-And we're twins.
-From Denver, Colorado.

Our company is Village Scholarships.

And we're here today seeking $125,000

in exchange for ten percent equity
of our company.

Getting accepted into college
is a big deal.

-But figuring out how to pay for it...
-Is an ordeal.

But what if there was a solution to solve
future student debt that was both...

-Viable and profitable?
-Yes.

Well, there is with Village Scholarships.

It's where matchmaking meets
a new type of crowd funding

that forms homemade scholarships
funded by...

-People you know...
-And matched by...

-People who care.
-Anyone interested

in helping college students
achieve their college dream

can contribute to their college fund.

[both] It's that easy.

[Antonio] Here's how it works.

Students come to our website,
and they create a profile.

You simply input your institution,
your major, and your tuition goal,

and you share your profile
with your select family or friends

or your entire social network.

After the completion
of a student's campaigns,

their funds will be directly transferred
to their university accounts.

-Sharks, help us make a difference...
-[both] And join the village today.

Isn't that really just a way for family
and friends to give somebody money?

Uh, we're a traditional
crowd-funding website,

but what differentiates us
is the matching fund opportunity.

So the reason people solicit funds
from their family members

is really to develop enough money
so they can match

a scholarship fund with someone else.

How many users have actually
entered the data into this?

Well, currently at this time,
we have users that entered their data,

but the website itself
is not completely finished--

-So this is a concept.
-So you're just starting?

-Yes, we are just starting.
-[Lori] So just starting, it's a concept.

-You haven't really gotten--
-Ah, it's a concept. There we go.

-And you haven't made any money yet.
-No.

-Isn't it really just a way to donate?
-Yes.

It's not really a business.

Well, they're gonna take a percentage
at some point, right?

Yes, we're-- It's gonna be based
on the traditional service and fees.

What's your fee gonna be?

The fee is 8.5 percent on the completion
of a student's campaign.

-Damn.
-[Antonio] And the reason--

-That's actually standard commission--
-I don't think so. Wow.

That's the standard commission fee
for crowd funding.

The difference
between a crowd-funding site,

you know, for, like, Kickstarter--

I'm an investor in Kickstarter.
It brings distribution to your projects.

So if nobody's heard
of your project before,

you put it there, it gets featured.

What happens here, though,
is that the majority of your fundraising

is coming from people you know.

People that are either friends, family,
or maybe one degree away from you.

And so that fee that you're taking
starts to feel huge,

and you're not really bringing anything
to the table that they don't already have.

Well, actually, currently with websites,
like our major competitor

would be, like, a GoFundMe.

They've in the last three years alone
seen a 4,500 percent increase in raising--

Fundraising for college tuition alone.

But Chris hit the nail on the head.
They bring people with money

to people without money.

What is the primary competitive
advantage of this site?

[Antonio] Competitive advantage
of this site

is actually the matching fund aspect.

You're saying that the primary advantage
is that strangers will match funds.

Am I getting that right?

The fundamentals of the website is,
we'll first start with crowd funding.

An individual would recruit friends
or family to the website to solicit funds.

-That's what they would bring themselves.
-Yes.

That's where, on our end,
we're recruiting and we're building out

a network of individuals that already
create scholarships on their own.

So this becomes their platform.
They elect to use this one to gift.

Yes, and allowing people, individuals
like yourself or myself to say,

"I want to create a $5 scholarship
to this category so that anyone

that matches these criteria
can then match their funds with me."

How did you guys pay for college?

I, during undergrad, received a full ride

in optical engineering
at Norfolk State University.

And then I have a fellowship

at the University of Arizona
for Optical Science.

-And what's your background?
-Very interesting.

My background is I've started
three start-up companies in my past,

but also,
I'm a former college basketball player.

And how the idea came to fruition
is I lost two athletic scholarships

due to season-ending injuries.

You have to either have a lot of donors
or you have to have a lot of applicants.

Because the value to donors is you have
a very large base of applicants,

and the value to the applicants
is "I'm gonna get money

besides family and friends."

I don't buy that the friends and family
are gonna pay you eight percent,

to donate the money
they could give you directly.

The market actually says otherwise
in some respects.

Hundreds of thousands of students
are currently already using crowd funding,

knowing there's a fee
already on top of it.

Look, you can't charge 8.5 percent.
It's not gonna happen.

Okay.

Uh, I'm already invested
in Honeyfund and Plumfund,

which is competing with you
on a broader scale.

Doesn't mean you won't be successful,

but it means I'm not gonna invest
in a competitor, obviously.

-Understand.
-Understandable.

For that reason, and with full respect
to you guys, I'm out.

You know, I think the idea has merit.

I think you guys spent
a lot of time thinking about it.

There's something there,
but I'm not clear how it's gonna work.

I'm out.

Last year, Daymond and I invested
in the Scholly scholarship app,

and it's doing really well,

and it's helping a lot of people
get connected with scholarships.

This is interesting to me
because in some ways,

maybe we could do something
that integrates the two together.

But you're just at the beginning stages.
Like, you haven't started yet.

So for that reason, I'm out.

You know, I'm seeing
four different businesses pitched.

I'm seeing a platform
where friends and family

can give to a student's
college experience.

I'm seeing a platform
where strangers can give directly

to a student's education
the way that a GoFundMe site goes.

I'm seeing a platform
for setting up a scholarship,

whether an individual or foundation.

I'm seeing a platform where a student
can come and find scholarships

that they might be eligible for that were
set up by an individual or foundation.

All four of those things
are interesting ideas.

I don't think you can tackle
all four of them.

Without that kind of focus, I'm out.

I apologize for making it confusing

by not addressing it
in a more organized manner,

-but we do have a plan.
-The problem is, you came too early.

If you had already gone
through that process

of turning it in from idea,
to plan, to tangible,

I think you'd have a shot,

but you're not there yet,
and for those reasons, I'm out.

-We sincerely appreciate your time.
-Thank you, guys.

And thank you for your feedback,

and we will make sure
we take it constructively

-and improve our company.
-Thank you.

-[Mark] Thank you so much.
-Yeah. Good luck.

You can't get eight percent for it.

-You hit a ceiling at one percent.
-Doesn't matter.

They're not even to the point
where it's even relevant.

-The business model is--
-Ideas are cheap. Execution is everything.

[narrator] Next into the Tank is a product
designed to maintain domestic bliss.

Good day, Sharks.
I am King Nicholas Galekovic...

-[Mark laughing]
-...protector of the face follicles.

And I am Queen Alessia Galekovic,
the queen of the kingdom.

And together,
we are the founders of Beard King.

We are seeking $100,000
for 20 percent of our entire kingdom.

So, Sharks, as long as there's been men,
there's been facial hair.

Now, whether that's a beard,
mustache, sideburns,

or any facial hair for that matter,
we all have one problem in common.

The fact is grooming facial hair
can be a very messy

and time-consuming task.

So imagine all those disgusting
little hairs all over your sink,

all over your counter, all over your soap,
all over your toothbrush,

eventually clogging your sink.

But most importantly,
guess who has to clean that up?

-Me.
-You sound exactly like my wife.

-[Alessia] Thank you.
-Yes.

-[laughs]
-Exactly. Now, Lord O'Leary,

I know you once related to this madness
with your once almighty beard.

-[Lori] You had a beard?
-[Kevin] Oh!

-[laughing]
-[Kevin] Oh!

That's Kevin? No way!

-[Kevin] Just a beautiful-looking guy.
-[laughing]

And, as you know, with a great beard
comes great responsibility.

And we have invented the solution
for this very hairy situation.

Lords and ladies, presenting
the world's first and only grooming tool

that eliminates manual clean up
and allows for an easy disposal.

The beard bib. And here's how it works.

[narrator on TV]
Pull the contents out of the pouch.

Attach the neck straps.

Stick the suction cups to the mirror,
then move the levers down.

-[laughing]
- Perform your normal grooming regimen.

[Robert] Oh, you're not serious!

Once completed,
flip the suction cup units up and remove.

Lower over the trash can
and gently shake.

-Yep.
-So...

Seriously?

-[laughs]
-[Alessia] Yes.

-Are you guys together?
-[Alessia] We're married.

-[Nicholas] Yes.
-Okay.

So this comes up.
This isn't a hypothetical.

-Real-life situation.
-This is how we came up with it.

He would always make a mess.
I'm a neat freak.

-I was sick of it.
-[Nicholas] Right.

-[Alessia] It was a constant battle.
-Have you sold any of these?

-[Alessia] Yes.
-[Nicholas] Oh, of course.

To date, we have $140,000 in sales
just in eight months.

[Mark] Wow.
[clapping]

-Yeah.
-[Alessia] Thank you.

Just last month, we did $80,000 in sales.

How? How did you do $80,000
in a single month?

Our video went viral on social media.
We had over 20 million views.

-[laughing]
-[Nicholas] Seriously.

-Our, our strength--
-That video you showed us?

-Yes, that video there.
-Yes, it was hysterical.

So our background and our strength,
for me, is brand development.

So I create all the content,
we did all the branding,

we did everything ourselves.

And so by word of mouth
people are catching onto it,

and every day
it just keeps growing and growing.

How much does it cost you?
What's your profit?

We just last month, got our costs down
to $7, and we sell it for $29.

-[Lori] Wow.
-Good margins, good margins.

-The margins are good--
-They can get even better with your help.

With your help,
we can get the margin to about--

-Can we see the packaging?
-[Alessia] Of course.

Our packaging I love,
so you better love.

-[Lori chuckles]
-Wow. I'm scared not to love it.

Is there anything to stop anybody else
from making this?

-It is patent pending.
-It's a patent on the utility--

An apparatus attached to a mirror
around one's neck.

Gotta tell you, when I first saw it,
I thought it was a joke,

but $140,000 in sales, 20 million views,
I mean, you're-- you're doing it.

-[Robert] So why do you need the money?
-We need the money to scale manufacturing.

See, that's our problem right now.
We can't keep up with the demand.

[Mark] Wait, wait, wait.

-You sold $140,000, your margin--
-$80,000 last month alone.

-Right.
-Correct.

[Mark] Your margins are huge,
so you've got 75 percent margins.

[Nicholas] Well, here's the thing.

The first seven months,
our margins were only 40 percent.

-Just right now, we got it to 75 percent.
-So you need the cash for...

-For scaling manufacturing.
-For inventory.

What's the projection for next year?

400k conservatively on the growth rate
we're going.

How are you gonna go
from the current sales to $400,000?

[Lori] Have you talked to retailers?

Have you tried to approach
a big box score?

[Nicholas] Good question. Uh.

We've actually been approached
by many wholesale and distributors,

and we wanted to stay focused
on our online distribution channel,

but, you know, with your help,
I think we can get there.

Don't know if that's a good idea,
because you'll cut your margins in half...

-Right.
-Correct.

-...you'll own a lot of inventory.
-Correct.

Here's my challenge with it.
You're doing great.

Your margins are fantastic.

You make enough margin
to bootstrap this thing.

I don't know why you need
$100,000 today for inventory

because you can do it on your own.

And that way, you can prove the scale.

I'm just-- I'm not sure how my money
is going to accelerate this business.

I'm out.

-Thank you.
-Thank you very much.

-[laughs]
-We appreciate your time.

Look, when I look at a company,
I try to see what the core competency is.

What is it that they're good at,
and how far can that take them?

Really, what you've talked about
as your core competency

is your ability to create content.

If you were to come in here and said,
"You know what, this is our first product.

We are so good at creating content.

This is one example of a viral video
we created.

Here's three other things
that we've done," I'd be interested.

We do. We have a beard,
a beard bib that's disposable.

We wanna gain
as much sink share as we can

-from the men's bathroom...
-That's our--

-We wanna do combs and oils, we have--
-[Chris] Sink share?

-Sink share?
-[Nicholas] That's our key--

That's your key metric?

-[Alessia] Sink share, yes.
-[Nicholas] Sink share.

What I'm saying is if this was the first
of many products of a wide scope,

not just sink share,
but you are showing me

you are the king of creating viral videos
to sell products,

that would be interesting.

But that's not what you're trying
to sell me. I'm out.

It's an interesting idea,
but it's not a company.

It's a product. It's a beard diaper.

Let's call it what it is.

We have a disposable bib,
we have beard oils,

-we have beard combs, we have apparel.
-But I think all that stuff,

I can get it in 90,000 places.

And we've had other companies up here
selling the same thing.

Have you seen a beard bib before?
You haven't.

-It's the first in its market. The first--
-No, no, but-- The bib thing, I get it.

But it's a single product.
How would I get my money back?

By investing in us.

-No. Oh.
-[laughing]

-Oh.
-[Nicholas] Well...

You know, look, my beard days are over.

Thank you for sharing the photo,
brought me down memory lane.

But I'm out.

I love the logo. I love the positioning.

I am a company investor.
I build companies.

I invest for the long term.
This is a product.

I don't know
how I'd be that helpful to you.

Unfortunately, I'm out.

Okay, got you.

-I'm very sad to hear that, I have to say.
-Oh.

Well, there's... there's one Shark.

-Lori.
-There's one beardless shark.

-Queen Lori.
-One beardless Shark.

I would like to share my crown with you.

-Well...
-[Alessia chuckles]

What's interesting to me
is that the women

are left with the hair in the sink.

-It's a common problem.
-Because there's really no solution.

-Right.
-And women would buy it

-to keep themselves happy.
-Over 60 percent

of our customer base is women,

women that have a boyfriend,
a husband, a son.

I could see it making women happy.

But I'm not quite sure
how well this will do--

[Nicholas] Before you go out,
could you make us an offer then?

-[laughing]
-What do you think--?

What... what do you think it would--?
What would you think on the equity side?

What do you think you would be--

You know, it be worth to you,
to take... to take that jump with us?

[all] Lori! Lori! Lori! Lori!

-[all] Lori! Lori!
-I-- [laughs]

[all] Lori! Lori! Lori!

-[Mark] Come on.
-[Nicholas] You gotta do it, Lori.

Oh, my gosh.

We have de-risked you
by just proving a market.

We have proved the market.
There's growing sales every month.

-You know, as--
-Eighty thousand dollars in one month.

-That's pretty impressive.
-It's pretty good.

-You can't say that it isn't.
-And still on track for this month, so...

That's what I'm saying to you.
What do you think?

Because I see this as so, so, so risky...

I would have to take
51 percent of the company.

-Oh.
-[Kevin] Whoa.

-Boo-yah.
-Okay.

-Wow.
-[Kevin] Are you serious?

Fifty-one percent?

-Lori is offering--
-I was serious because you would--

-That's your counter.
-Well, listen. You said--

That is a steep offer and I know it.

-Correct.
-But I was going out.

-Correct.
-Well, and they countered.

So you said what would I do.

I don't want to--

Don't you see this doing very well
on your QVC? It's a direct--

It is direct to consumer.

As soon as you see it,
it triggers an emotion.

It triggers... It triggers something
in everybody because--

I thought it was a very,
very clever video.

Really. It made everybody laugh.
Everybody could relate to it. I get it.

Well, we don't want to give up
control of the company.

We would consider max...

-What do you think?
-[mumbles]

-Hmm?
-We would do 45 with you if you...

-If you're willing to go there.
-We would do 45 percent. Max.

You have to count the fact

-that we are so great at our marketing...
-Lori. Lori.

-...and branding and sharing...
-[laughing]

-...doing viral content.
-Lori. Lori.

I mean, that's huge.
We've done this from nothing.

Lori, what are you going to do?

-We work so hard. This is all we do.
-We do.

Will you throw in the shirt?
The Beard King shirt?

I'll throw in the shirt.
And something else you don't know.

-[Lori] What?
-What? Maybe we want back in.

-[Lori] Oh, my God. [chuckles]
-Maybe. Maybe...

-[Alessia] Maybe you do.
-This could change everything.

[Alessia] This could.

-[laughing]
-[all] Oh!

[Mark] Lori, you gotta do it!
You gotta do it!

-Lori!
-Oh!

I'm ready to crown you.

Done.

-[cheering]
-[Mark] Standing ovation for Lori.

-[clapping]
-[Lori] Oh.

-[Mark] Yay.
-[Lori] Oh.

[Chris] Gotta stand.
We're in the presence of royalty.

-[Mark] Yeah! Wow.
-Thank you, Lori.

You're our new queen.

-[humming "Hail to the Chief"]
-[laughing]

-[Kevin] Oh, my goodness.
-Thank you for the opportunity.

[Lori] Oh, my God.

-[Alessia] Thank you.
-[Lori] All right.

-[Kevin] Lori! Lori!
-[Lori] Oh.

-My new Shark Tank outfit.
-Thank you, guys, so much.

-[laughing]
-You're great.

-Thank you, guys.
-Bye.

[Lori] Oh, my gosh.

You-- you are gonna be a hero
to women everywhere.

Oh, my God.

[Nicholas]
A little higher than what we wanted.

-But...
-It was. Yeah.

She's... she's the perfect Shark.