Shark Tank (2009–…): Season 12, Episode 9 - Episode #12.9 - full transcript
Narrator: Tonight
on "Shark Tank"...
There's a new
sports drink in town,
and she's got game.
[ Laughs ] Walsh: I don't know about you,
Sharks,
but when I win,
I want everyone to know.
Whoo!
Oh.
We have sold a
little over $2,000.
$2,000? Greiner: Whoa!
I think you need a job.
This is our full‐time
job right now.
That's not good, guys.
[ Sniffles ]
Can I ‐‐ Can I ‐‐ Can I ‐‐
Can I...
God, I just want to ‐‐
Can I just tell you a story?
♪♪
Narrator: First into the
Tank is an entrepreneur
who is ready to take
on a competitive market.
♪♪
Hello, Sharks. I'm Fran Harris from Dallas,
Texas.
Hooooo! Yeah!
And I'm seeking $350,000
in exchange for
20% of my company.
Sharks,
the sports drink category
is a $23 billion opportunity.
The problem is that a
lot of these companies
who are purporting to
have "functional hydration"
are actually putting
water in bottles
that are full of nothing
more than sugar...
...artificial colors
and ingredients...
...and, you guessed it, salt.
Sharks,
consumers are not going to
settle for a sports drink
that over‐promises
and under‐delivers,
leaving you feeling
tired and sluggish.
You know why? You know why?
Why? Why? Why?
Because there's a
new sports drink in town,
and she's got game.
Introducing Electra,
a better‐for‐you functional
beverage hydration company
that's going to change the
sports drink game forever.
Sharks, I played
on an undefeated Division
I women's basketball team
at The University of Texas.
I also played on the WNBA's
first championship team
with the Houston Comets.
So safe to say I've consumed
a lot of hydration
and sports drinks.
And I can tell you
without a doubt
that everyday athletes,
hustlers, and doers,
what they're looking for,
an Electra delivers
on every single one of those.
And yeah,
there's some competition out there.
But let me tell you, Sharks,
we are coming for that ass.
[ Laughter ]
So,
there's really only one question remaining.
Who's ready to
electrify their hustle,
end the tyranny of these
sugary sports drinks,
and help me raise
this billion‐dollar baby?
[ Chuckles ] Good job.
Corcoran: Great. Great pitch.
Are we going to try these?
Yes, you are going to try those.
So, those are the three flavors.
There is Litty Lemonade,
there is Passion Punch,
and there is "Oh, Yeah!" Orange.
Passion Punch is good.
Is there a
particular top seller?
So,
those are our launch flavors.
You haven't sold any yet?
Good question, Kevin.
[ Laughs ] Already you
show how wonderful you are.
No, we haven't sold them.
We literally just launched
about 10 days ago.
Wow. Okay?
What do you use to sweeten it?
We are using monk
fruit to sweeten it.
The question that we will
get to either sooner or later...
Mm‐hmm.
...is you mentioned
a few competitors.
Now,
they're not just ordinary competitors.
They are bone‐crushing
monsters who own this category.
What is the plan for
you to get distribution
in the bone‐crushing
business... Bone‐crushing.
...of sports beverages?
Well, Kevin,
you heard my background.
I'm not afraid of competitors.
I've competed all of my life. Yeah.
And she's not afraid of you, Kevin.
And competition is a good thing.
The plan is to go direct
to consumer online, but ‐‐
Shipping... a 12‐pound box?
That's going to be
expensive. Let me finish.
The plan is to go
direct to consumer
as well as to go to retail.
My background is I
was a salesperson
for Procter & Gamble,
so I'm very familiar,
have a lot of experience
in the CPG market.
So I get the freight. I get
how expensive it's going to be.
But I also believe that you
have to go direct to consumer
because there are a
lot of consumers online
who are looking for hydration,
and we need to be there
just like we need
to be there in retail.
So,
why did you decide to go with a drink
as opposed to a mix?
Because once you are
hustling and you're active,
you want to walk into a
convenience store or store
and you want to grab something then,
right?
You don't want to grab a
water and then grab your mix
and then have to do all that.
But I think the convenience
factor is a big thing. And I get that.
It's just getting
that space... Totally.
...in the cooler,
right, is hard,
and then trying to be
direct to consumer...
Sure... is even harder
'cause of shipping costs.
You've got to be mixed
direct to consumer.
That's a 24‐pound case, 12.
That'll weigh 24 pounds. ‐Agree.
Agree. I think it's
important to be both.
I think it's important
to be on shelf,
and I think it's
important to have a mix
that people can order online.
The shipping's gonna be less.
As somebody who works out,
I always have to
replenish potassium.
So, the amount of potassium
relative to the
amount of calories
is really good.
Thank you. So,
that's a positive.
My challenge is,
though, with the Mavs,
I already have two big deals
with sports drink manufacturers.
Okay. So,
I can't touch anything at all.
But I just got to tell you,
the formulation is great,
the taste is great,
but unfortunately for those reasons,
I'm out.
Are you working
full time on this now?
I am. Where are you
manufacturing this?
So, we manufacture it in
a little place called Coppell,
which is right
outside of Dallas.
Are you going to be
using a distributor?
Yes,
we actually just ‐‐ I got an e‐mail today
from one of the
largest distributors
who wants to see
a sale sheet on it
because I dropped
some of it off last week.
And what is your first
production run going to be?
The first production
run will probably be
between 20,000 or 30,000.
And where are you
getting that money from?
We have some at that meeting,
and hopefully the rest of it
will come from this
little audience right here.
So,
you can't take that product in
until you get the money from us,
right?
That's right. Good job, Barbara.
Fran,
how would you spend the $350,000?
Could you break
that down for me?
Production will
probably be somewhere
between $20,000 and $30,000.
Okay? In terms of R&D,
probably $25,000 or something like that,
however that goes.
So, a total of about $50,000.
And the rest of the money,
what would you do with that?
So I would also hire someone for logistics,
sales, and marketing.
Greiner: So,
first of all, I love you
because I love your
straightforwardness
and your strength
and your confidence.
I would be uber
excited about you,
but the drinks themselves
aren't really my cup of tea.
And so for those reasons,
I'm out. You're out?
Thank you, Lori.
O'Leary: You have a very
impressive background.
Your pitch was flawless.
There is no data on sell‐through here,
Fran.
You are running,
and you want to take my $350,000... I do.
...and experiment on... "I do. Absolutely,
I do."
...whether this can work or not.
You don't have
enough data to do that.
I don't want to discourage you,
but I also don't want to
see you crash and burn.
Confidence is not enough.
I hear what you're saying. First of all,
I win.
All I do is win.
So,
even though I'm new in this category,
I'm going to continue
because I know
that I'm going to
be able to carve out
a niche place for Electra,
and then we're going to win.
We are coming for
that ass. That's it.
[ Laughter ] Okay? Alright.
Any other category,
any other product, anything else,
that kind of, you know,
confidence would be very useful.
Look, I wish you the best.
I really do. That's alright.
But I'm not taking
this ride with you.
I'm sorry. I'm out. So, okay.
Turns out you're
not so Mr. Wonderful.
Thank you for that.
Oh. Oh. Oh! Corcoran: Whoa.
Daymond.
I don't want to
agree with Kevin,
but I've had a lot of
challenges with this area,
and I just wouldn't be
able to help you with this
'cause it's just so difficult.
So, I'm out. Okay,
thank you, Daymond.
Barbara, it's just me and you.
CORCORAN: It's okay. I
don't mind an empty room.
That's a lot. Yeah.
I wish you hadn't come in here
and pitched a beverage business.
I rarely agree with Kevin,
but I do.
It's the worst possible space.
The very first money
I lost on "Shark Tank"
was to a small company
guy with fire in his belly,
great conviction,
right formulation named Chill Soda.
I lost that money
in a month. Boom!
So, it's a terrible space.
So,
for you to stand here and be so fearless,
you're a hell of a salesman.
When I heard that pitch,
there wasn't a
single word wasted.
But I'm not willing
to risk $350,000.
I'll tell you what I'll do.
I'll give you $100,000
cash up front,
a $250,000 line of credit.
But because it's
a high risk deal,
I want 40% of the business.
‐Yowza. Yowza. ‐Ooh! ‐Ooh!
Now who's wearing the rings?
‐Ohh! ‐Ohh.
Who's getting that ass now?
Barbara.
Narrator: Four Sharks are out.
Barbara is Fran's
last chance for a deal
for her sports drink company,
Electra,
but she wants a much
bigger stake in the business
than the 20% Fran
came in offering.
I'll give you $100,000
cash up front,
a $250,000 line of credit.
But because it's
a high risk deal,
I want 40% of the business.
‐Yowza. Yowza. ‐Ooh! ‐Ooh!
Who's getting that ass now?
Barbara, I really, really,
really appreciate that offer.
And I can't tell you this
until we decide whether
we're gonna work together,
but I have some
things that are in place.
You might want to tell me now.
I should tell you now? You think so? Oh,
yeah.
It's "do lose." I do have a
couple of Hall of Famers.
One is an NFL Hall of Famer,
one is an NBA hall of Famer
who are ready to
come to the table
to bring their influence
to move this product.
Not their cash. Both of them
are cash. Both of them are cash.
Well, then.
Yes,
both of them are cash. Good for you.
So I told them that ‐‐
Thank you for hiding that
until everybody was out.
See? I wanted to see who was with me,
Barbara.
I wanted to see who
was with me. Maybe.
And these are real
offers that are on the table.
So, I like your offer,
but not for 40%.
Would you be willing to take
25% for the same deal,
and we have a deal?
I'll give you ‐‐
or I'll take 30%
if you could bring those
two big fish in with us.
And if not, all bets are off.
So if I can't get both of them in,
you're out completely?
If you don't bring them in,
you don't get the $100,000,
you don't get the credit line.
You're going to have to
take a gamble yourself here.
But I think that's only fair
because I'm taking a
huge gamble myself.
So,
I'm not sure that I want both of them.
Oh,
you're not sure? That I want both of them.
I can get both of them.
I'm going to trust you that if
you could get the good one,
then yes, I'll do that.
But if you don't get them,
you don't get anything.
You'll do, what, 30%,
Barbara? Yeah, 30%.
You bring the big fish in,
and still,
the structure of my deal is the same ‐‐
$100,000 with
$250,000 credit line.
You drive a hard bargain,
Barbara.
Say yes. It's a good deal.
But she has no choice.
Yeah, she has no choice.
What did you say, Mark?
I just said it's a great deal.
He said you had no choice.
I always have a choice. There's
no choice when it comes to Barbara.
I always have a choice.
I love the deal,
and I'll take your deal, Barbara.
You got it, baby.
I wish I could hug you,
but I can't, but let's go!
CORCORAN: I'll make up for it later,
all the hugs.
Thank you. Thank you,
guys. Cuban: Congratulations.
Greiner: Congratulations.
Thank you very much.
When Barbara makes an offer,
you have no choice.
You have to take that deal.
Whoo!
There's no question ‐‐
beverages are difficult,
but all I've done
all my life is win.
And with Barbara on board,
I know I'll keep winning.
Whoo!
We are coming for that ass!
I think it's a good deal.
You know,
you only get to live once.
Why live in Hell?
So they can hang out with you,
Kevin.
Come on!
[ Laughter ]
♪♪
Narrator: In season 10,
Anna Skaya made a deal
with Kevin O'Leary for Basepaws,
a DNA testing kit for cats.
Let's do it. Cuban: Alright!
Narrator: Let's see
what she's up to now.
Skaya: A DNA test from Basepaws
can tell you about your pet's breed.
It can look into
their genetic health.
It's like a window
into your pet's soul.
Kevin invited us to
his summit in Miami,
where we got a chance
to meet the top managers
of Amazon Launchpad
and Facebook.
This led to being featured on
Facebook's Boost My Business,
And we're selling more
than 25% of all our kits
on Amazon because of Kevin.
When I pitched to the Sharks,
we'd made $200,000 in sales.
In just a year and a
half since "Shark Tank,"
we've done $3.5
million in sales.
I love cats because
they're customers now.
They're fantastic.
I invested in Anna for Anna.
She's so good at
promoting her products.
She has built that business
tenfold since "Shark Tank."
Skaya: Our goal is to
be a cat health company.
We're doing important
work in feline cancer,
feline diabetes,
in the hopes of helping create therapeutics
to make sure that our
cats are staying healthy.
With 100 million
cats in America,
more people learning about
this product is what matters.
More social media. There's
100 million customers.
That's a fantastic
market. Absolutely.
O'Leary: One thing I've learned
about the whole Basepaws experience
is people love their pets,
and I think what Anna's
done is allowed people
to learn more about an animal
they can't actually
communicate with.
But now they can through DNA.
They can there
forecast the future
of how to keep
it healthier longer
and give it a better
life in their own home.
Skaya: I feel so
proud to be here
talking about our growth
over the last year and a half.
So many times I looked at
this company and thought,
"Can we really do it?"
But between our team,
our community, our pet parents,
we have really proven
that there is a huge market
in the cat business.
♪♪
Narrator: Next up is a solution
for our sedentary lifestyles.
♪♪
Hi, Sharks.
My name is Bing Howenstein,
and I'm the CEO of All33.
I'm here today to
ask for $500,000
for a 2.5% ‐‐ Hello.
Corcoran: Wow.
...piece of our company.
Bing, baby!
I know it is a very serious ask,
but that's because it is for a
very serious problem ‐‐ chairs.
They may be killing you.
Now, you've all heard,
sitting is the new smoking.
Well, they are right.
Sitting for any length
and period of time
is really bad for you,
and chairs, well,
they've had the same basic design
for almost 3,000 years.
Whatever you're sitting in,
even the fancy expensive chairs
you guys are
sitting in right now,
you can find yourself locked,
stuck, immobile,
and, a lot of times, in pain.
And for all of us working
at home these days,
this is just not okay.
Well,
I have some really good news for you.
Corcoran: Oh! [ Chuckles ]
Whoa! All33 is
here to save the day,
but don't just take it from me.
Let's hear what one of
our biggest fans has to say.
Hey, Sharks.
I'm Justin Bieber,
and this is the All33.
It's the chair that
moves like I do.
I mean, guys,
look at this perfect posture.
Got my chest up,
my shoulders back.
I'm ready for anything.
I mean,
have you guys ever seen a chair
that can do this?
I'm doing a full ab
workout right now.
Alright. Hit me up
later. I'll be back.
If you got to sit, this is it.
Now,
Justin knows what he's talking about
because this is our patented
Sit‐In‐Motion Technology.
It's like a chair
within a chair,
and it rocks,
just like our sales.
Now,
you don't have to have moves like Justin
in order for this
chair to work for you,
because all you
have to do is sit,
get fit,
and All33 of your vertebrae,
well,
they're going to keep moving all day.
Now, this is a chair.
Now, Mr. Wonderful... Yes.
...you're looking particularly
uncomfortable. I am.
Would you like to come
up and take a seat... I would.
...and see what
we're talking about?
I have a bad back
from a squash injury.
Oh, well, then,
let's see what happens.
Howenstein: Make
sure you get your behind
all the way into the
back of the chair.
Scooch back there. Alright.
And you can probably feel
the rocking motion
move back and forth.
Very interesting.
Why is this making
me sit up straight?
Why does that happen?
So,
the patents that we have about this
are really quite unique.
Basically, Dr. Dennis Colonello,
who invented this,
he's been doing this for a long,
long time ‐‐
he's got 45 years of treating backs,
necks,
and everything
else ‐‐ he figured out,
let's get your hips moving,
almost as if ‐‐ what
you're experiencing
is a sensation that's
almost like you're standing,
but when you're sitting.
It is moving all 33 of your
vertebrae while you're sitting,
and there's nothing else
in the world that is doing it.
I'm very skeptical about
all these claims on chairs
'cause I've tried so many,
and I also have tried different
devices to help my back.
This thing actually is working.
I don't care about Bieber.
I'm going to kick his ass when
my album comes out. [ Laughs ]
I don't like your valuation,
though.
Well, we can talk about that.
Yeah. I would
expect that from you.
Tell us, how did you get into this,
and what happened?
So,
I have been a patient of Dr. Colonello's
for about 20 years
and then friend.
I'm also a bit of a
serial entrepreneur.
I got into making products
and getting products sold.
Along the way,
I got into the back care space.
When I sat on Dennis' chair,
an early prototype,
I said,
"This is a whole different ball game."
But I knew that Dennis was
never going to get this thing going.
As a friend, I said,
"Let me help you.
I'm going to do a
Kickstarter for you."
So, we did that.
It performed very well.
What's very well?
We did $800,000.
That's very well. That's great.
Did you license it from him?
Are you partners with him? Howenstein: No,
no, no.
I own a small piece of it.
How much of the
company do you own?
I own about 5%.
So,
a premium chair in today's market
sells for roughly $2,000,
a real premium chair.
What does this sell for?
We're selling this for $799.
What's your margin?
What's it cost you to make?
So, our margin's around 67%.
Our cost delivered to a
customer with all that good stuff
is about 260 bucks.
2.5%. $500,000. $20
million valuation. Yep.
How many chairs are you
selling? How many dollars?
So, this year alone,
we've sold about 3.2 million.
We're on track to
hit five and a half.
Okay, and what are you going
to make on five and a half?
So, we were slightly
profitable in the second quarter,
and we expect to be the
same in this third quarter.
I mean, just help me because,
you know,
I'm a quick study in
most sectors... Sure.
...office supply,
furniture, or even,
if you want to call this
high‐end chair design, whatever.
Maybe it would trade for
11 times pretax cash flow.
I mean,
I'm not saying it isn't a great chair,
but it's a chair. Yeah.
Why is it worth $20 million?
We are looking at comps
for other companies
that are out there in
a very similar space
that are three to
four times revenue.
We know we're
going to get there.
We have also talked to
the market. Not my opinion.
20 million bucks is a
pretty good valuation.
So,
then why are you here? Why am I here?
If you talked to so many people
that gave you that valuation,
why are you here?
Because Shark money is
better than other money.
So,
you're charging us more than...
No... your sales
because we're Sharks?
I'm prepared to
give you a discount
because you guys are Sharks.
Can you give a discount?
I am the CEO of the company,
and I'm here to make a deal.
You're a marketing company,
first and foremost.
You've got your product, right?
It's got its angle. It's got
its differentiation. Sure.
And that's good, right?
I just don't want to be
in the chair business.
Sure. You know? It's just ‐‐
Of all the businesses,
big and small,
not that there's anything
wrong with the chair business,
but it's just not for me.
Okay. So,
for those reasons, I'm out.
That's fair. Thank you.
If you had come in here today
and you wanted
to sell me a chair,
you're the perfect guy.
But you weren't
here to sell a chair.
You here to sell a
business. Correct.
And you said you're
a 5% owner? Correct.
I, for some reason,
feel it lacks credibility.
Okay. I think that's a good
lesson for other entrepreneurs.
You can't send a salesman in.
Well, with all due respect,
this is my life right now,
and to ‐‐ it's a bit of a
denigration to call me
a simple salesman on this deal.
Barbara's very good
at pissing everybody off.
Well, that's fair,
and you can do that.
But the fact is,
that is not what
is happening here.
I'm here to build a company.
We are building a
movement in a category
that hasn't been done before.
We're going up
against the big guys
that, you know, frankly,
it's a fractured system
that I look forward to breaking.
I wish I could believe that
you're building a category,
but I don't see
that as a category.
I see it as a chair with
a new design element.
Well ‐‐ It doesn't
get me all excited.
So for that reason, I'm out.
Thank you.
Greiner: The problem for me is
whenever somebody comes in
and they have
something different
that can really be good,
but they're just starting... Yeah.
...and they want to get a Shark,
I always feel the
smart thing to do
is to be a lot smarter
about your valuation,
because if you get somebody
in and alongside with you,
you could take a one‐off
item like this and blow it up,
which is what I'm good at. Sure.
So, if you had had something
that was just more realistic ‐‐
because I just feel
it's so out of whack.
For me, it just turns me off.
And for that reason,
unfortunately, I'm out.
That's fair.
There is a competitor company
that just had a $200
million valuation
on, you know,
just a little higher sales.
I actually work with
one of the bigger guys,
Varidesk. Sure.
And the whole theory
is the desks raise up
and the chairs that they
sell are a little pole, a chair,
so you have to balance yourself.
Sure. This would
be a conflict with me.
So I'm out.
I started choking
on the valuation,
and I'm still
choking on it. Okay.
I tried the chair,
and it has merit.
But 500K for 2.5%?
I don't get out of bed for 2.5%.
Bing, I can't do it. Well, I'm more than
happy to have you on a higher place
in the cap table, with just a little more
money. I don't want to beat you up.
My routine would be
to squeeze your head
like a teenage pimple,
and I feel like doing that... [ Laughs ]
...but I don't want to,
so I'm out.
Okay. Thank you very much.
I will buy one, though.
Well, you're going to have
to pay full price this time.
I guess I will.
Oh. Bam! Alright.
Thank you, Bing.
To have Barbara just
call me a salesman,
I think that was
a bit offensive,
and I don't think any
entrepreneur wants to hear that.
When you put your blood,
sweat, and tears into something,
I find that particularly,
you know, not cool.
♪♪
Narrator: Next up is a
product to spice up your life.
♪♪
♪♪
Both: Hey, Sharks!
I'm Jennifer. And I'm Michael.
And we're here to turn
you on with His & Her Bar.
An aphrodisiac bar.
And we're seeking $50,000
in exchange for 10%
equity in our company.
But Sharks,
how about a little music
to get you in the mood?
One, two, three, hit it.
[ Rapping ] ♪ His & Her Bar,
baby, 'bout to represent ♪
[ Laughter ] ♪ Every ingredient,
aphrodisiac ♪
♪ All natural and spicy,
just a little hint ♪
♪ Vegan and gluten free,
not a coincidence ♪
♪ Bring couples together,
so provident ♪
♪ Not a small time, bro,
we're going monument ♪
♪ Package looking so plush,
so opulent ♪
♪ Best money in the
world that I ever spent ♪
♪ Partner up with a Shark,
that's a compliment ♪
♪ Wake up in the morning,
do it all again ♪
♪ Whoo! ♪
Wow. Let me break it
down for you real quick.
His & Her Bar is the most fun...
Sexy,
interactive food product around town.
We use seven
aphrodisiac super foods
that will stimulate
sexual desire
and bring you and your
partner closer together.
Okay,
that's what I'm talking about.
Our bars will want to
make you have sexy times
and do the mattress mambo.
Or should we say
the pants‐off dance‐off.
[ Laughs ] And based on
our personal experience,
let's just say...
Both: These bars work!
So, Sharks,
one more time for you.
♪ Our bars or will make you
move around the set, set ♪
♪ We're looking for
$50,000 at 10% ♪
♪ Best money in the world
that you'll ever spend ♪
So, Sharks,
for your tasting pleasure,
we have some
sexy treats for you.
Oh,
yeah. Cuban: That's pretty good.
So, you can pick up your bar,
and we'll do a little cheers.
Cheers. Cheers.
O'Leary: Cheers. Cuban:
Cheers. John: Cheers!
I'm nervous Barbara's
gonna jump me.
[ Laughter ]
Jennifer: So,
as you're consuming the bar,
it's going to have a
creamy consistency
with an earthy and nutty flavor.
That's gonna come from the ‐‐ Oh,
it's spicy, too.
Got a little spice
in there. Exactly.
Is there any difference
in the formulation
between his and hers?
All the ingredients collectively
are good for him and for her.
It is really spicy, though.
Yeah, so,
you're going to have a little hint
of cayenne at the end.
When you get to where you
get that little hint ‐‐ Little hint?
No, that's a spice.
That's a spice? How many
calories are we talking about here?
So, the bar has 220 calories.
Cuban: Damn. That's
a lot of calories. Whoa!
It's all natural, though. It doesn't
taste so sweet, though, at all.
Well, you're going to burn
those calories off. Exactly.
Maca ‐‐ Actually,
maca is a Peruvian sweet root vegetable,
and in Peru,
maca is known as the Peruvian Viagra.
So,
it really just depends. Really?
Yeah. How much maca is in this?
Michael: So, for each bar,
there's 0.7 ounces
of maca per bar.
How much in
advance do you eat it,
and are you suggesting
somebody should eat a whole one?
So,
it's meant to be like a lifestyle bar.
So, with Michael and I,
like,
we like to enjoy it together.
We call it sexy snack time.
And, you know,
sexy snack time doesn't always have to mean
that it's going to allude to sex,
right?
It's about that connection,
and right now in today's world,
people are craving
that connection.
Do you have children?
We don't. We do
not have children.
Well,
that explains an awful lot. A whole lot.
Can you tell me how you
came up with the idea? It's crazy.
So I served in the Navy.
Thank you for your service.
Thank you for your service.
Michael: Thank
you. I appreciate it.
So, fast forward to 2015,
we live in South Florida,
and I get hired
on as a firefighter.
And one of the things I was
excited about being a firefighter
was the brotherhood,
the connection.
Maybe I remembered that
from my time in the military.
And as a few months went by,
I started to notice
that I couldn't connect
with the people
in the department.
So, a few months pass.
Chief brings me in the
office and he lets me go
for basically not being
able to fit in with the crew.
And I'll never forget,
I'm on my way home that day,
and I hadn't even told
Jennifer what happened,
and I'm trying to
figure everything out,
and I go to get gas for the car,
and on the top of the
gas pump is a rock,
and there's writing on the rock,
and the rock said ‐‐
I picked the rock up
and it said,
"Just when the caterpillar
thought the world was over,
it became a butterfly."
True story. True story.
So, you get home to Jennifer,
you say, "I met a rock,
and it talked to me." I said,
"Babe."
And she said,
"I got to dump this guy." [ Laughs ]
I know, right? It's kind of cheesy for
a firefighter. You know what, though?
We're very serendipitous. So,
a little bit about myself.
I graduated from the
University of South Carolina,
and I went to the wonderful
world of corporate America
and soon to find out
that it was not for me.
I did really well in the job,
but something was missing.
So in 2015,
I left my six‐figure corporate job,
I cashed in my
401k and my savings,
and I went all in to start
an activewear brand.
Oh,
no competition there. [ Chuckles ]
Yeah, well,
exactly. I learned a lot of lessons.
But Michael's job,
when he was doing his job right,
it was supporting us because
it was money in, money out.
It was a very capital
intensive business.
So, basically when Michael lost his job,
we needed to pivot.
So,
we ended up selling our house
because it was about
to go into foreclosure.
Oh, my. We moved across country
from South Florida to Scottsdale,
Arizona,
to basically hit
the reset button.
So, in January 2019,
I wrote down an intention
to create a product that
would be regularly consumed
and better the lives
of other people.
Is that this product?
This is this product.
Okay, so... But we didn't launch
until June this year.
Reason being ‐‐
So, let's talk sales.
So, we have sold 500 bars.
How many dollars is that?
A little over $2,000.
I just went limp.
$2,000? You got to be kidding.
So,
let me just tell you right now. So...
Oh, my ‐‐ $2,000?!
Okay, we knew you would say that,
Mr. Wonderful.
We were waiting for
this moment. $2,000?!
Kevin,
how excited are you right now?
I'm not!
Have we forgotten
what we're in right now?
I'm not trying to
come up with excuses,
but we are in the middle
of a very challenging time in business,
right?
But you knew the problems
that were out there, Jennifer,
'cause you've been
through a launch
before with your activewear,
right? Jennifer: Totally.
And you know how expensive it is
and you know how important
it is to have a receptive market.
Why did you launch it
at all and why not wait?
Good question. So we were
actually working in a restaurant
while we were
building our business.
And so, in March,
we got furloughed.
Even worse.
Even worse, I mean,
because now you have to buy inventory.
Right? You have to do marketing.
That's obviously why we're here,
right?
We need to be able to
build the brand recognition.
I think you need a job.
Cuban: You do need a job.
No, I mean ‐‐ This is
our full‐time job right now.
That's not good, guys.
You've already had to downsize.
You've already had
to sell your house.
Yeah. You're allowed to have a
job while you have a company,
and you can still be completely
committed to your company.
I worked as a
bartender at night.
Yeah. I worked at Red
Lobster for five years
while I started FUBU.
Michael,
this is just too early for an investment.
And I have to
relate to a product.
I just don't relate to it,
and I'm out.
Okay. Thank you. Thank you.
Appreciate it.
You know,
I probably need this product
more than any other
woman on Earth.
I haven't had a sexual
thought in probably 30 years.
[ Laughter ]
But I'm going to
try this product.
But I want to address
something other than the product.
I've noticed a lot of
people start businesses
after they're fired,
as though that's also a rock
or a message that you get.
Like, "Oh,
I should be working for myself."
It doesn't mean that at all.
It's supposed to mean,
"I should get another job."
I really wish you the best of luck,
but I'm out.
We have enough expenses to cover
our living expenses
for the rest of our lease.
Greiner: Let me talk to that,
okay? Okay.
So, every entrepreneur thinks
they're going to create
the next best thing.
But you have to
remember something.
Not every idea you have is
going to be that perfect winner
right out of the gate.
But you keep creating,
and you have no idea
if that next thing is going
to be your million dollar idea,
because it could be.
And I'm a firm believer,
and I've seen it happen a lot.
But because I don't think this
one's your million dollar idea,
I'm sorry, I'm out.
O'Leary: This
isn't a business yet.
One of you has to get a job
just to have the safety net.
♪♪
Just ‐‐ [ Sighs ]
Just tell the story.
You got it. It's okay.
Can I ‐‐ Can I ‐‐ Can I ‐‐
Can I...
God, I just want to ‐‐
Can I just tell you a story?
Narrator: Three Sharks are out.
Michael is getting emotional
pitching his and Jennifer's
aphrodisiac bar, His & Her.
Michael: [ Voice breaking ] God,
I just want to ‐‐
Can I just tell you a story?
When I was growing up,
I want to be a firefighter,
and I go through
the fire academy
and I fail,
and I'm determined, right?
So, about a few months before...
...I'm supposed to go into
my second fire academy,
I start ‐‐ I start getting
these headaches
and, um,
I don't know where they're coming from.
And I go to the VA,
right? I get it checked out, you know?
And the next day,
they call me back
and they tell me that they
found a small brain aneurysm.
And I still have it right now.
Look, Michael,
you got to remember something ‐‐
as entrepreneurs,
we fail multiple times,
multiple times,
over and over again.
I've lost millions of dollars
with bad ideas I
didn't know were bad
'til I realized
they didn't work.
The hallmark of
an entrepreneur ‐‐
you've got to pick yourselves
up and you got to get going again.
You know what? I understand.
We're over here
and you're over there,
and we need more
than just finance,
and we need more
than just connections.
We need mentorships.
We need a strategic partner.
This is what we need.
I'm staying focused on the fact
that this is an
investment opportunity.
I'm not saying you're
not fantastic people,
but this is not investable.
I'm out.
What I'll tell you
is that we have grit.
I've been called crazy,
delusional,
that I need to, you know,
I need to give up, right?
If I gave up,
I wouldn't be here today.
Cuban: Look, guys,
how much do you have in inventory?
We make as we go. Smart.
Look,
you're in the circumstances you're in.
I don't question your heart.
I don't question your desire.
I don't question
your authenticity.
Every one of us has had
our backs against the wall.
I can't tell you how many
times I was so stressed,
if ate 50 of these,
it wouldn't change my sex life.
But things happen. So you'll
figure out your personal side.
You'll figure out
the job side of it.
Right? You don't need to
spend any more money on this.
So, keep on fighting like you're fighting,
build to order.
You guys can do this.
I'm not going to invest
because you're not ready.
In your lives,
you're not ready yet.
Product wise,
you're not ready yet.
So, guys,
I'm out. Good luck, guys.
Alright. Just so you guys know,
one thing really quick is
that we didn't get to talk
about the vision for the brand.
It's not just a one‐hit wonder.
We're going to be
doing other bars.
At this point,
that's not what it's about.
Not for any of us,
because it's got to be investable.
O'Leary: I wish you the best of luck,
okay?
John: Good luck,
guys. Cuban: Good luck, guys.
Alright, that's it. Greiner: Good luck,
and good luck with your health.
♪♪
Obviously, we didn't get a deal,
and it hurts,
but at the end of the day,
like, we're fighters.
We know this is
going to be okay.
Like,
we're going to get through it.
We've gotten through
so much together
that we're the, like,
poster children
of just pushing through
no matter what. Yeah.
So,
it doesn't matter what happened today.
I'm a big believer that
everything happens for a reason
and we're just thankful
for this opportunity,
and we know that
it's going to get us
exactly where we're meant to be.
Narrator: Next into
the Tank is a product
to take your victories
to the next level.
♪♪
Hello, Sharks.
My name is Matt Walsh,
and I am addicted to winning.
And I'm Dax Holt,
and I fully support his addiction.
And we are here seeking $600,000
for 8% of our company,
TrophySmack.
Over 50 million Americans
pour their hearts and souls
into fantasy sports every
year for a chance at victory.
Friends battle it out
for months on end,
smack talking one another,
investing ridiculous
amounts of time and energy
for the winner to
walk away with what,
empty bragging rights,
a generic Little League trophy?
I don't know about you,
Sharks, but when I win,
I want everyone to know.
And that is why we
created TrophySmack,
the best place to
get the most unique
and customizable
fantasy sports trophies,
blinged‐out rings,
and over‐the‐top
championship belts.
I mean,
imagine walking into your next draft party
with this bad boy
on your shoulder.
Whoo!
So, it's super simple.
You go to our website,
you choose your sport,
then your size and your color.
There are literally thousands
of trophy combinations
to choose from
to create your very
own dream trophy.
So,
we understand how important winning is
here inside the Tank.
So, we went ahead and
we custom‐designed trophies
for each one of you Sharks. Wow.
So, go ahead and unveil
the greatness next to you.
Wow. I like mine.
A golden slipper.
O'Leary: A bull and bear. Stock market,
baby. Wall Street.
Cuban: I actually like
the one I already have
that's in my office.
[ Laughter ]
How did you guys
come up with this?
So,
it happened in the most organic way.
Credit card out,
looking for something awesome.
I'm in the finals.
I'm the new guy in the league
with all the dad friends,
and it didn't exist.
So, just joking with the guys,
I said, "Hey, guys.
I wanted to just
get a six‐foot trophy,
and I wanted to
ride it in like a pony
to show you guys how
much I obliterated you all.
But since it doesn't exist,
I have to start my own now."
But I don't get why
that doesn't exist.
I have ordered trophies for
my business my whole life,
every type of trophy.
Why couldn't you use
a regular trophy house?
What's the difference here?
So,
the trophies that exist today,
just sort of that same
antique‐looking ‐‐
Yeah, with the guy with the ‐‐ you know,
standing on top.
Exactly. Everyone was
kind of selling the same thing,
so when we came onto the scene,
we were the first company
where we had the ability
for someone to change
the colors on the fly,
change the side on the fly. John:
That does look cool, I will say.
Did you design it?
We design everything.
So, what are your backgrounds?
Professor of mine gave
me invaluable advice.
He said, "Matt,
if you want to be
a really successful
entrepreneur,
you need to get into
supply chain and logistics
to really figure out
how businesses operate
and how they
function and execute."
So, first job out of college,
I took a job at a
freight brokerage.
I rose to the top of the
company in two years.
Wow. I was the number one
salesperson in the company.
Cuban: It brings up a
good lesson for people.
Whatever you're doing,
be the best at it.
Be the best at it, yeah. Because
once you're the best at something,
every door opens up
and then you learn where you
can be a great entrepreneur.
So, good for you for focusing
on being great at what you did.
Absolutely.
My background is
completely the opposite.
I come from TV and film doing
entertainment news, "TMZ."
How much did you invest in
this business to get it going?
We invested $250,000.
Whoa. Wow. That's
a lot of money.
Why do you have to invest that much to
get this going? That's not messing around.
What is it you spent
your money on?
Walsh: So, in the beginning,
we started small.
Initially,
it was a $60,000 injection,
and in the first three weeks
of getting into the fantasy
football draft season,
sold out of everything.
What's the average
cost? The average price
is about $150, $160.
What does it cost
you to make it?
Our average profit
margin is 80%.
80%? Wow. Wow. Dang.
Can you walk through the
revenue growth first year,
what you sold, what you made?
So, Year 1, January 2018,
we did $850,000 of revenue.
Amazing. Your first year? Wow.
What did you make? What
did you make on the 850?
The first year,
we had about a $200,000 net
that we just rolled right
into inventory for Year 2.
Okay. And then next year ‐‐ '19?
And then, Year 2, 2019,
we did $1.9 million.
Wow. Okay,
and you made what on that?
We had $775,000 gross profit,
and we netted around $500,000.
And this year,
what are you going to do?
Year to date?
Walsh: So,
in spite of the pandemic,
our revenues year to
date are up over last year.
We've done $650,000
revenue so far.
The opportunity for us is
a lot broader than fantasy.
So, corporate awards,
employee recognition, U sports.
But there has to be a ton
of competition in that space.
A ton.
There's a reason why no one
in the trophy and award
space has really taken
a national approach
on e‐commerce.
The traditional way of
building trophies is crazy.
The assembly process in our
first year ‐‐ Was a nightmare.
Assembly was more
expensive than cost of goods.
The way that we
developed our columns,
the assembly time
was cut down by 90%.
Now I get it. You're
a logistics guy. Yeah.
Everybody else in this
space can't do what you do
because anybody else would
take years to get up to speed
to where you are. Correct.
Yeah. Okay, guys,
so I really respect people
who play sports.
People that are sports fans,
I kind of respect them.
Fantasy guys ‐‐ whew.
[ Laughter ]
So, let me tell you a story.
I was trying to date
this really hot woman.
I didn't realize she never
had a date on Sunday
'cause these morons were
so busy watching sports.
So,
no matter where I was at in the world,
I would make sure that I
got to New York on Sunday
to take out this
smoking hot woman.
And I remember her telling me,
you know,
"I really don't like
guys who like sports
'cause, you know,
I'm alone on Sundays."
And I said, "I will never watch
a sports game my entire life
if you marry me,"
and I'm married now.
That's awesome. So...
I'm out.
[ Laughter ] Thank you.
Guys, look,
I'm going to make you an offer.
I'll give you $600,000
for 25% of the business,
and my value is to try
and work it into the
corporate market,
which isn't that easy.
But wait a minute.
Wait a minute.
What do you want the money for,
and what is it that you need?
We're looking for a strategic partner,
right?
We don't want to just
continue doubling every year.
We want to 10x.
Matt,
what would the strategic partner bring you?
So,
whether it's opening up the doors at arenas
for products
within the stadiums,
right, commemorative rings.
Are you here just for Cuban?
I think so. No, we are not.
What do you want to do,
Mark? What is Mark doing?
Cuban: So, guys, I mean,
I like what you're doing.
I like the fact that you're hustlers,
right,
and you're looking
to touch all the pieces
and you're just
following the money.
The question is,
8% isn't enough.
I'll make you an offer.
I'll offer you the $600,000
but I want... 17%.
Appreciate the offer.
Thank you very much.
And it's either a yes or no,
because ‐‐
No,
I'm going to make you an offer.
There you go. Then I'm out.
Whoa! That was a fast yes or no.
Corcoran: You didn't even answer.
That's unfair. Shot clock. Shot clock.
Shot clock. Whoa.
Mark, they didn't even
answer her. That's not fair.
You might as well. Cuban: Unless
you want to say yes, you know.
So it's your decision,
right? So I'll tell you my offer.
I'll tell you my offer.
Let's take the deal. Deal. Done.
Let's go. Holt: Deal. Alright,
Lori.
John: Aw. That was like
taking candy from a baby.
I had such a good offer for you.
You should be ashamed of yourself.
He put us on the spot too hard.
You know what? It's
good to be the king.
[ Laughter ]
Yeah, buddy! [ Laughs ]
Dream since the beginning, man.
I've been watching "Shark
Tank" since Season 1.
This is surreal. We're
partners with Mark Cuban!
[ Both laugh ]
♪♪
♪♪
♪♪
on "Shark Tank"...
There's a new
sports drink in town,
and she's got game.
[ Laughs ] Walsh: I don't know about you,
Sharks,
but when I win,
I want everyone to know.
Whoo!
Oh.
We have sold a
little over $2,000.
$2,000? Greiner: Whoa!
I think you need a job.
This is our full‐time
job right now.
That's not good, guys.
[ Sniffles ]
Can I ‐‐ Can I ‐‐ Can I ‐‐
Can I...
God, I just want to ‐‐
Can I just tell you a story?
♪♪
Narrator: First into the
Tank is an entrepreneur
who is ready to take
on a competitive market.
♪♪
Hello, Sharks. I'm Fran Harris from Dallas,
Texas.
Hooooo! Yeah!
And I'm seeking $350,000
in exchange for
20% of my company.
Sharks,
the sports drink category
is a $23 billion opportunity.
The problem is that a
lot of these companies
who are purporting to
have "functional hydration"
are actually putting
water in bottles
that are full of nothing
more than sugar...
...artificial colors
and ingredients...
...and, you guessed it, salt.
Sharks,
consumers are not going to
settle for a sports drink
that over‐promises
and under‐delivers,
leaving you feeling
tired and sluggish.
You know why? You know why?
Why? Why? Why?
Because there's a
new sports drink in town,
and she's got game.
Introducing Electra,
a better‐for‐you functional
beverage hydration company
that's going to change the
sports drink game forever.
Sharks, I played
on an undefeated Division
I women's basketball team
at The University of Texas.
I also played on the WNBA's
first championship team
with the Houston Comets.
So safe to say I've consumed
a lot of hydration
and sports drinks.
And I can tell you
without a doubt
that everyday athletes,
hustlers, and doers,
what they're looking for,
an Electra delivers
on every single one of those.
And yeah,
there's some competition out there.
But let me tell you, Sharks,
we are coming for that ass.
[ Laughter ]
So,
there's really only one question remaining.
Who's ready to
electrify their hustle,
end the tyranny of these
sugary sports drinks,
and help me raise
this billion‐dollar baby?
[ Chuckles ] Good job.
Corcoran: Great. Great pitch.
Are we going to try these?
Yes, you are going to try those.
So, those are the three flavors.
There is Litty Lemonade,
there is Passion Punch,
and there is "Oh, Yeah!" Orange.
Passion Punch is good.
Is there a
particular top seller?
So,
those are our launch flavors.
You haven't sold any yet?
Good question, Kevin.
[ Laughs ] Already you
show how wonderful you are.
No, we haven't sold them.
We literally just launched
about 10 days ago.
Wow. Okay?
What do you use to sweeten it?
We are using monk
fruit to sweeten it.
The question that we will
get to either sooner or later...
Mm‐hmm.
...is you mentioned
a few competitors.
Now,
they're not just ordinary competitors.
They are bone‐crushing
monsters who own this category.
What is the plan for
you to get distribution
in the bone‐crushing
business... Bone‐crushing.
...of sports beverages?
Well, Kevin,
you heard my background.
I'm not afraid of competitors.
I've competed all of my life. Yeah.
And she's not afraid of you, Kevin.
And competition is a good thing.
The plan is to go direct
to consumer online, but ‐‐
Shipping... a 12‐pound box?
That's going to be
expensive. Let me finish.
The plan is to go
direct to consumer
as well as to go to retail.
My background is I
was a salesperson
for Procter & Gamble,
so I'm very familiar,
have a lot of experience
in the CPG market.
So I get the freight. I get
how expensive it's going to be.
But I also believe that you
have to go direct to consumer
because there are a
lot of consumers online
who are looking for hydration,
and we need to be there
just like we need
to be there in retail.
So,
why did you decide to go with a drink
as opposed to a mix?
Because once you are
hustling and you're active,
you want to walk into a
convenience store or store
and you want to grab something then,
right?
You don't want to grab a
water and then grab your mix
and then have to do all that.
But I think the convenience
factor is a big thing. And I get that.
It's just getting
that space... Totally.
...in the cooler,
right, is hard,
and then trying to be
direct to consumer...
Sure... is even harder
'cause of shipping costs.
You've got to be mixed
direct to consumer.
That's a 24‐pound case, 12.
That'll weigh 24 pounds. ‐Agree.
Agree. I think it's
important to be both.
I think it's important
to be on shelf,
and I think it's
important to have a mix
that people can order online.
The shipping's gonna be less.
As somebody who works out,
I always have to
replenish potassium.
So, the amount of potassium
relative to the
amount of calories
is really good.
Thank you. So,
that's a positive.
My challenge is,
though, with the Mavs,
I already have two big deals
with sports drink manufacturers.
Okay. So,
I can't touch anything at all.
But I just got to tell you,
the formulation is great,
the taste is great,
but unfortunately for those reasons,
I'm out.
Are you working
full time on this now?
I am. Where are you
manufacturing this?
So, we manufacture it in
a little place called Coppell,
which is right
outside of Dallas.
Are you going to be
using a distributor?
Yes,
we actually just ‐‐ I got an e‐mail today
from one of the
largest distributors
who wants to see
a sale sheet on it
because I dropped
some of it off last week.
And what is your first
production run going to be?
The first production
run will probably be
between 20,000 or 30,000.
And where are you
getting that money from?
We have some at that meeting,
and hopefully the rest of it
will come from this
little audience right here.
So,
you can't take that product in
until you get the money from us,
right?
That's right. Good job, Barbara.
Fran,
how would you spend the $350,000?
Could you break
that down for me?
Production will
probably be somewhere
between $20,000 and $30,000.
Okay? In terms of R&D,
probably $25,000 or something like that,
however that goes.
So, a total of about $50,000.
And the rest of the money,
what would you do with that?
So I would also hire someone for logistics,
sales, and marketing.
Greiner: So,
first of all, I love you
because I love your
straightforwardness
and your strength
and your confidence.
I would be uber
excited about you,
but the drinks themselves
aren't really my cup of tea.
And so for those reasons,
I'm out. You're out?
Thank you, Lori.
O'Leary: You have a very
impressive background.
Your pitch was flawless.
There is no data on sell‐through here,
Fran.
You are running,
and you want to take my $350,000... I do.
...and experiment on... "I do. Absolutely,
I do."
...whether this can work or not.
You don't have
enough data to do that.
I don't want to discourage you,
but I also don't want to
see you crash and burn.
Confidence is not enough.
I hear what you're saying. First of all,
I win.
All I do is win.
So,
even though I'm new in this category,
I'm going to continue
because I know
that I'm going to
be able to carve out
a niche place for Electra,
and then we're going to win.
We are coming for
that ass. That's it.
[ Laughter ] Okay? Alright.
Any other category,
any other product, anything else,
that kind of, you know,
confidence would be very useful.
Look, I wish you the best.
I really do. That's alright.
But I'm not taking
this ride with you.
I'm sorry. I'm out. So, okay.
Turns out you're
not so Mr. Wonderful.
Thank you for that.
Oh. Oh. Oh! Corcoran: Whoa.
Daymond.
I don't want to
agree with Kevin,
but I've had a lot of
challenges with this area,
and I just wouldn't be
able to help you with this
'cause it's just so difficult.
So, I'm out. Okay,
thank you, Daymond.
Barbara, it's just me and you.
CORCORAN: It's okay. I
don't mind an empty room.
That's a lot. Yeah.
I wish you hadn't come in here
and pitched a beverage business.
I rarely agree with Kevin,
but I do.
It's the worst possible space.
The very first money
I lost on "Shark Tank"
was to a small company
guy with fire in his belly,
great conviction,
right formulation named Chill Soda.
I lost that money
in a month. Boom!
So, it's a terrible space.
So,
for you to stand here and be so fearless,
you're a hell of a salesman.
When I heard that pitch,
there wasn't a
single word wasted.
But I'm not willing
to risk $350,000.
I'll tell you what I'll do.
I'll give you $100,000
cash up front,
a $250,000 line of credit.
But because it's
a high risk deal,
I want 40% of the business.
‐Yowza. Yowza. ‐Ooh! ‐Ooh!
Now who's wearing the rings?
‐Ohh! ‐Ohh.
Who's getting that ass now?
Barbara.
Narrator: Four Sharks are out.
Barbara is Fran's
last chance for a deal
for her sports drink company,
Electra,
but she wants a much
bigger stake in the business
than the 20% Fran
came in offering.
I'll give you $100,000
cash up front,
a $250,000 line of credit.
But because it's
a high risk deal,
I want 40% of the business.
‐Yowza. Yowza. ‐Ooh! ‐Ooh!
Who's getting that ass now?
Barbara, I really, really,
really appreciate that offer.
And I can't tell you this
until we decide whether
we're gonna work together,
but I have some
things that are in place.
You might want to tell me now.
I should tell you now? You think so? Oh,
yeah.
It's "do lose." I do have a
couple of Hall of Famers.
One is an NFL Hall of Famer,
one is an NBA hall of Famer
who are ready to
come to the table
to bring their influence
to move this product.
Not their cash. Both of them
are cash. Both of them are cash.
Well, then.
Yes,
both of them are cash. Good for you.
So I told them that ‐‐
Thank you for hiding that
until everybody was out.
See? I wanted to see who was with me,
Barbara.
I wanted to see who
was with me. Maybe.
And these are real
offers that are on the table.
So, I like your offer,
but not for 40%.
Would you be willing to take
25% for the same deal,
and we have a deal?
I'll give you ‐‐
or I'll take 30%
if you could bring those
two big fish in with us.
And if not, all bets are off.
So if I can't get both of them in,
you're out completely?
If you don't bring them in,
you don't get the $100,000,
you don't get the credit line.
You're going to have to
take a gamble yourself here.
But I think that's only fair
because I'm taking a
huge gamble myself.
So,
I'm not sure that I want both of them.
Oh,
you're not sure? That I want both of them.
I can get both of them.
I'm going to trust you that if
you could get the good one,
then yes, I'll do that.
But if you don't get them,
you don't get anything.
You'll do, what, 30%,
Barbara? Yeah, 30%.
You bring the big fish in,
and still,
the structure of my deal is the same ‐‐
$100,000 with
$250,000 credit line.
You drive a hard bargain,
Barbara.
Say yes. It's a good deal.
But she has no choice.
Yeah, she has no choice.
What did you say, Mark?
I just said it's a great deal.
He said you had no choice.
I always have a choice. There's
no choice when it comes to Barbara.
I always have a choice.
I love the deal,
and I'll take your deal, Barbara.
You got it, baby.
I wish I could hug you,
but I can't, but let's go!
CORCORAN: I'll make up for it later,
all the hugs.
Thank you. Thank you,
guys. Cuban: Congratulations.
Greiner: Congratulations.
Thank you very much.
When Barbara makes an offer,
you have no choice.
You have to take that deal.
Whoo!
There's no question ‐‐
beverages are difficult,
but all I've done
all my life is win.
And with Barbara on board,
I know I'll keep winning.
Whoo!
We are coming for that ass!
I think it's a good deal.
You know,
you only get to live once.
Why live in Hell?
So they can hang out with you,
Kevin.
Come on!
[ Laughter ]
♪♪
Narrator: In season 10,
Anna Skaya made a deal
with Kevin O'Leary for Basepaws,
a DNA testing kit for cats.
Let's do it. Cuban: Alright!
Narrator: Let's see
what she's up to now.
Skaya: A DNA test from Basepaws
can tell you about your pet's breed.
It can look into
their genetic health.
It's like a window
into your pet's soul.
Kevin invited us to
his summit in Miami,
where we got a chance
to meet the top managers
of Amazon Launchpad
and Facebook.
This led to being featured on
Facebook's Boost My Business,
And we're selling more
than 25% of all our kits
on Amazon because of Kevin.
When I pitched to the Sharks,
we'd made $200,000 in sales.
In just a year and a
half since "Shark Tank,"
we've done $3.5
million in sales.
I love cats because
they're customers now.
They're fantastic.
I invested in Anna for Anna.
She's so good at
promoting her products.
She has built that business
tenfold since "Shark Tank."
Skaya: Our goal is to
be a cat health company.
We're doing important
work in feline cancer,
feline diabetes,
in the hopes of helping create therapeutics
to make sure that our
cats are staying healthy.
With 100 million
cats in America,
more people learning about
this product is what matters.
More social media. There's
100 million customers.
That's a fantastic
market. Absolutely.
O'Leary: One thing I've learned
about the whole Basepaws experience
is people love their pets,
and I think what Anna's
done is allowed people
to learn more about an animal
they can't actually
communicate with.
But now they can through DNA.
They can there
forecast the future
of how to keep
it healthier longer
and give it a better
life in their own home.
Skaya: I feel so
proud to be here
talking about our growth
over the last year and a half.
So many times I looked at
this company and thought,
"Can we really do it?"
But between our team,
our community, our pet parents,
we have really proven
that there is a huge market
in the cat business.
♪♪
Narrator: Next up is a solution
for our sedentary lifestyles.
♪♪
Hi, Sharks.
My name is Bing Howenstein,
and I'm the CEO of All33.
I'm here today to
ask for $500,000
for a 2.5% ‐‐ Hello.
Corcoran: Wow.
...piece of our company.
Bing, baby!
I know it is a very serious ask,
but that's because it is for a
very serious problem ‐‐ chairs.
They may be killing you.
Now, you've all heard,
sitting is the new smoking.
Well, they are right.
Sitting for any length
and period of time
is really bad for you,
and chairs, well,
they've had the same basic design
for almost 3,000 years.
Whatever you're sitting in,
even the fancy expensive chairs
you guys are
sitting in right now,
you can find yourself locked,
stuck, immobile,
and, a lot of times, in pain.
And for all of us working
at home these days,
this is just not okay.
Well,
I have some really good news for you.
Corcoran: Oh! [ Chuckles ]
Whoa! All33 is
here to save the day,
but don't just take it from me.
Let's hear what one of
our biggest fans has to say.
Hey, Sharks.
I'm Justin Bieber,
and this is the All33.
It's the chair that
moves like I do.
I mean, guys,
look at this perfect posture.
Got my chest up,
my shoulders back.
I'm ready for anything.
I mean,
have you guys ever seen a chair
that can do this?
I'm doing a full ab
workout right now.
Alright. Hit me up
later. I'll be back.
If you got to sit, this is it.
Now,
Justin knows what he's talking about
because this is our patented
Sit‐In‐Motion Technology.
It's like a chair
within a chair,
and it rocks,
just like our sales.
Now,
you don't have to have moves like Justin
in order for this
chair to work for you,
because all you
have to do is sit,
get fit,
and All33 of your vertebrae,
well,
they're going to keep moving all day.
Now, this is a chair.
Now, Mr. Wonderful... Yes.
...you're looking particularly
uncomfortable. I am.
Would you like to come
up and take a seat... I would.
...and see what
we're talking about?
I have a bad back
from a squash injury.
Oh, well, then,
let's see what happens.
Howenstein: Make
sure you get your behind
all the way into the
back of the chair.
Scooch back there. Alright.
And you can probably feel
the rocking motion
move back and forth.
Very interesting.
Why is this making
me sit up straight?
Why does that happen?
So,
the patents that we have about this
are really quite unique.
Basically, Dr. Dennis Colonello,
who invented this,
he's been doing this for a long,
long time ‐‐
he's got 45 years of treating backs,
necks,
and everything
else ‐‐ he figured out,
let's get your hips moving,
almost as if ‐‐ what
you're experiencing
is a sensation that's
almost like you're standing,
but when you're sitting.
It is moving all 33 of your
vertebrae while you're sitting,
and there's nothing else
in the world that is doing it.
I'm very skeptical about
all these claims on chairs
'cause I've tried so many,
and I also have tried different
devices to help my back.
This thing actually is working.
I don't care about Bieber.
I'm going to kick his ass when
my album comes out. [ Laughs ]
I don't like your valuation,
though.
Well, we can talk about that.
Yeah. I would
expect that from you.
Tell us, how did you get into this,
and what happened?
So,
I have been a patient of Dr. Colonello's
for about 20 years
and then friend.
I'm also a bit of a
serial entrepreneur.
I got into making products
and getting products sold.
Along the way,
I got into the back care space.
When I sat on Dennis' chair,
an early prototype,
I said,
"This is a whole different ball game."
But I knew that Dennis was
never going to get this thing going.
As a friend, I said,
"Let me help you.
I'm going to do a
Kickstarter for you."
So, we did that.
It performed very well.
What's very well?
We did $800,000.
That's very well. That's great.
Did you license it from him?
Are you partners with him? Howenstein: No,
no, no.
I own a small piece of it.
How much of the
company do you own?
I own about 5%.
So,
a premium chair in today's market
sells for roughly $2,000,
a real premium chair.
What does this sell for?
We're selling this for $799.
What's your margin?
What's it cost you to make?
So, our margin's around 67%.
Our cost delivered to a
customer with all that good stuff
is about 260 bucks.
2.5%. $500,000. $20
million valuation. Yep.
How many chairs are you
selling? How many dollars?
So, this year alone,
we've sold about 3.2 million.
We're on track to
hit five and a half.
Okay, and what are you going
to make on five and a half?
So, we were slightly
profitable in the second quarter,
and we expect to be the
same in this third quarter.
I mean, just help me because,
you know,
I'm a quick study in
most sectors... Sure.
...office supply,
furniture, or even,
if you want to call this
high‐end chair design, whatever.
Maybe it would trade for
11 times pretax cash flow.
I mean,
I'm not saying it isn't a great chair,
but it's a chair. Yeah.
Why is it worth $20 million?
We are looking at comps
for other companies
that are out there in
a very similar space
that are three to
four times revenue.
We know we're
going to get there.
We have also talked to
the market. Not my opinion.
20 million bucks is a
pretty good valuation.
So,
then why are you here? Why am I here?
If you talked to so many people
that gave you that valuation,
why are you here?
Because Shark money is
better than other money.
So,
you're charging us more than...
No... your sales
because we're Sharks?
I'm prepared to
give you a discount
because you guys are Sharks.
Can you give a discount?
I am the CEO of the company,
and I'm here to make a deal.
You're a marketing company,
first and foremost.
You've got your product, right?
It's got its angle. It's got
its differentiation. Sure.
And that's good, right?
I just don't want to be
in the chair business.
Sure. You know? It's just ‐‐
Of all the businesses,
big and small,
not that there's anything
wrong with the chair business,
but it's just not for me.
Okay. So,
for those reasons, I'm out.
That's fair. Thank you.
If you had come in here today
and you wanted
to sell me a chair,
you're the perfect guy.
But you weren't
here to sell a chair.
You here to sell a
business. Correct.
And you said you're
a 5% owner? Correct.
I, for some reason,
feel it lacks credibility.
Okay. I think that's a good
lesson for other entrepreneurs.
You can't send a salesman in.
Well, with all due respect,
this is my life right now,
and to ‐‐ it's a bit of a
denigration to call me
a simple salesman on this deal.
Barbara's very good
at pissing everybody off.
Well, that's fair,
and you can do that.
But the fact is,
that is not what
is happening here.
I'm here to build a company.
We are building a
movement in a category
that hasn't been done before.
We're going up
against the big guys
that, you know, frankly,
it's a fractured system
that I look forward to breaking.
I wish I could believe that
you're building a category,
but I don't see
that as a category.
I see it as a chair with
a new design element.
Well ‐‐ It doesn't
get me all excited.
So for that reason, I'm out.
Thank you.
Greiner: The problem for me is
whenever somebody comes in
and they have
something different
that can really be good,
but they're just starting... Yeah.
...and they want to get a Shark,
I always feel the
smart thing to do
is to be a lot smarter
about your valuation,
because if you get somebody
in and alongside with you,
you could take a one‐off
item like this and blow it up,
which is what I'm good at. Sure.
So, if you had had something
that was just more realistic ‐‐
because I just feel
it's so out of whack.
For me, it just turns me off.
And for that reason,
unfortunately, I'm out.
That's fair.
There is a competitor company
that just had a $200
million valuation
on, you know,
just a little higher sales.
I actually work with
one of the bigger guys,
Varidesk. Sure.
And the whole theory
is the desks raise up
and the chairs that they
sell are a little pole, a chair,
so you have to balance yourself.
Sure. This would
be a conflict with me.
So I'm out.
I started choking
on the valuation,
and I'm still
choking on it. Okay.
I tried the chair,
and it has merit.
But 500K for 2.5%?
I don't get out of bed for 2.5%.
Bing, I can't do it. Well, I'm more than
happy to have you on a higher place
in the cap table, with just a little more
money. I don't want to beat you up.
My routine would be
to squeeze your head
like a teenage pimple,
and I feel like doing that... [ Laughs ]
...but I don't want to,
so I'm out.
Okay. Thank you very much.
I will buy one, though.
Well, you're going to have
to pay full price this time.
I guess I will.
Oh. Bam! Alright.
Thank you, Bing.
To have Barbara just
call me a salesman,
I think that was
a bit offensive,
and I don't think any
entrepreneur wants to hear that.
When you put your blood,
sweat, and tears into something,
I find that particularly,
you know, not cool.
♪♪
Narrator: Next up is a
product to spice up your life.
♪♪
♪♪
Both: Hey, Sharks!
I'm Jennifer. And I'm Michael.
And we're here to turn
you on with His & Her Bar.
An aphrodisiac bar.
And we're seeking $50,000
in exchange for 10%
equity in our company.
But Sharks,
how about a little music
to get you in the mood?
One, two, three, hit it.
[ Rapping ] ♪ His & Her Bar,
baby, 'bout to represent ♪
[ Laughter ] ♪ Every ingredient,
aphrodisiac ♪
♪ All natural and spicy,
just a little hint ♪
♪ Vegan and gluten free,
not a coincidence ♪
♪ Bring couples together,
so provident ♪
♪ Not a small time, bro,
we're going monument ♪
♪ Package looking so plush,
so opulent ♪
♪ Best money in the
world that I ever spent ♪
♪ Partner up with a Shark,
that's a compliment ♪
♪ Wake up in the morning,
do it all again ♪
♪ Whoo! ♪
Wow. Let me break it
down for you real quick.
His & Her Bar is the most fun...
Sexy,
interactive food product around town.
We use seven
aphrodisiac super foods
that will stimulate
sexual desire
and bring you and your
partner closer together.
Okay,
that's what I'm talking about.
Our bars will want to
make you have sexy times
and do the mattress mambo.
Or should we say
the pants‐off dance‐off.
[ Laughs ] And based on
our personal experience,
let's just say...
Both: These bars work!
So, Sharks,
one more time for you.
♪ Our bars or will make you
move around the set, set ♪
♪ We're looking for
$50,000 at 10% ♪
♪ Best money in the world
that you'll ever spend ♪
So, Sharks,
for your tasting pleasure,
we have some
sexy treats for you.
Oh,
yeah. Cuban: That's pretty good.
So, you can pick up your bar,
and we'll do a little cheers.
Cheers. Cheers.
O'Leary: Cheers. Cuban:
Cheers. John: Cheers!
I'm nervous Barbara's
gonna jump me.
[ Laughter ]
Jennifer: So,
as you're consuming the bar,
it's going to have a
creamy consistency
with an earthy and nutty flavor.
That's gonna come from the ‐‐ Oh,
it's spicy, too.
Got a little spice
in there. Exactly.
Is there any difference
in the formulation
between his and hers?
All the ingredients collectively
are good for him and for her.
It is really spicy, though.
Yeah, so,
you're going to have a little hint
of cayenne at the end.
When you get to where you
get that little hint ‐‐ Little hint?
No, that's a spice.
That's a spice? How many
calories are we talking about here?
So, the bar has 220 calories.
Cuban: Damn. That's
a lot of calories. Whoa!
It's all natural, though. It doesn't
taste so sweet, though, at all.
Well, you're going to burn
those calories off. Exactly.
Maca ‐‐ Actually,
maca is a Peruvian sweet root vegetable,
and in Peru,
maca is known as the Peruvian Viagra.
So,
it really just depends. Really?
Yeah. How much maca is in this?
Michael: So, for each bar,
there's 0.7 ounces
of maca per bar.
How much in
advance do you eat it,
and are you suggesting
somebody should eat a whole one?
So,
it's meant to be like a lifestyle bar.
So, with Michael and I,
like,
we like to enjoy it together.
We call it sexy snack time.
And, you know,
sexy snack time doesn't always have to mean
that it's going to allude to sex,
right?
It's about that connection,
and right now in today's world,
people are craving
that connection.
Do you have children?
We don't. We do
not have children.
Well,
that explains an awful lot. A whole lot.
Can you tell me how you
came up with the idea? It's crazy.
So I served in the Navy.
Thank you for your service.
Thank you for your service.
Michael: Thank
you. I appreciate it.
So, fast forward to 2015,
we live in South Florida,
and I get hired
on as a firefighter.
And one of the things I was
excited about being a firefighter
was the brotherhood,
the connection.
Maybe I remembered that
from my time in the military.
And as a few months went by,
I started to notice
that I couldn't connect
with the people
in the department.
So, a few months pass.
Chief brings me in the
office and he lets me go
for basically not being
able to fit in with the crew.
And I'll never forget,
I'm on my way home that day,
and I hadn't even told
Jennifer what happened,
and I'm trying to
figure everything out,
and I go to get gas for the car,
and on the top of the
gas pump is a rock,
and there's writing on the rock,
and the rock said ‐‐
I picked the rock up
and it said,
"Just when the caterpillar
thought the world was over,
it became a butterfly."
True story. True story.
So, you get home to Jennifer,
you say, "I met a rock,
and it talked to me." I said,
"Babe."
And she said,
"I got to dump this guy." [ Laughs ]
I know, right? It's kind of cheesy for
a firefighter. You know what, though?
We're very serendipitous. So,
a little bit about myself.
I graduated from the
University of South Carolina,
and I went to the wonderful
world of corporate America
and soon to find out
that it was not for me.
I did really well in the job,
but something was missing.
So in 2015,
I left my six‐figure corporate job,
I cashed in my
401k and my savings,
and I went all in to start
an activewear brand.
Oh,
no competition there. [ Chuckles ]
Yeah, well,
exactly. I learned a lot of lessons.
But Michael's job,
when he was doing his job right,
it was supporting us because
it was money in, money out.
It was a very capital
intensive business.
So, basically when Michael lost his job,
we needed to pivot.
So,
we ended up selling our house
because it was about
to go into foreclosure.
Oh, my. We moved across country
from South Florida to Scottsdale,
Arizona,
to basically hit
the reset button.
So, in January 2019,
I wrote down an intention
to create a product that
would be regularly consumed
and better the lives
of other people.
Is that this product?
This is this product.
Okay, so... But we didn't launch
until June this year.
Reason being ‐‐
So, let's talk sales.
So, we have sold 500 bars.
How many dollars is that?
A little over $2,000.
I just went limp.
$2,000? You got to be kidding.
So,
let me just tell you right now. So...
Oh, my ‐‐ $2,000?!
Okay, we knew you would say that,
Mr. Wonderful.
We were waiting for
this moment. $2,000?!
Kevin,
how excited are you right now?
I'm not!
Have we forgotten
what we're in right now?
I'm not trying to
come up with excuses,
but we are in the middle
of a very challenging time in business,
right?
But you knew the problems
that were out there, Jennifer,
'cause you've been
through a launch
before with your activewear,
right? Jennifer: Totally.
And you know how expensive it is
and you know how important
it is to have a receptive market.
Why did you launch it
at all and why not wait?
Good question. So we were
actually working in a restaurant
while we were
building our business.
And so, in March,
we got furloughed.
Even worse.
Even worse, I mean,
because now you have to buy inventory.
Right? You have to do marketing.
That's obviously why we're here,
right?
We need to be able to
build the brand recognition.
I think you need a job.
Cuban: You do need a job.
No, I mean ‐‐ This is
our full‐time job right now.
That's not good, guys.
You've already had to downsize.
You've already had
to sell your house.
Yeah. You're allowed to have a
job while you have a company,
and you can still be completely
committed to your company.
I worked as a
bartender at night.
Yeah. I worked at Red
Lobster for five years
while I started FUBU.
Michael,
this is just too early for an investment.
And I have to
relate to a product.
I just don't relate to it,
and I'm out.
Okay. Thank you. Thank you.
Appreciate it.
You know,
I probably need this product
more than any other
woman on Earth.
I haven't had a sexual
thought in probably 30 years.
[ Laughter ]
But I'm going to
try this product.
But I want to address
something other than the product.
I've noticed a lot of
people start businesses
after they're fired,
as though that's also a rock
or a message that you get.
Like, "Oh,
I should be working for myself."
It doesn't mean that at all.
It's supposed to mean,
"I should get another job."
I really wish you the best of luck,
but I'm out.
We have enough expenses to cover
our living expenses
for the rest of our lease.
Greiner: Let me talk to that,
okay? Okay.
So, every entrepreneur thinks
they're going to create
the next best thing.
But you have to
remember something.
Not every idea you have is
going to be that perfect winner
right out of the gate.
But you keep creating,
and you have no idea
if that next thing is going
to be your million dollar idea,
because it could be.
And I'm a firm believer,
and I've seen it happen a lot.
But because I don't think this
one's your million dollar idea,
I'm sorry, I'm out.
O'Leary: This
isn't a business yet.
One of you has to get a job
just to have the safety net.
♪♪
Just ‐‐ [ Sighs ]
Just tell the story.
You got it. It's okay.
Can I ‐‐ Can I ‐‐ Can I ‐‐
Can I...
God, I just want to ‐‐
Can I just tell you a story?
Narrator: Three Sharks are out.
Michael is getting emotional
pitching his and Jennifer's
aphrodisiac bar, His & Her.
Michael: [ Voice breaking ] God,
I just want to ‐‐
Can I just tell you a story?
When I was growing up,
I want to be a firefighter,
and I go through
the fire academy
and I fail,
and I'm determined, right?
So, about a few months before...
...I'm supposed to go into
my second fire academy,
I start ‐‐ I start getting
these headaches
and, um,
I don't know where they're coming from.
And I go to the VA,
right? I get it checked out, you know?
And the next day,
they call me back
and they tell me that they
found a small brain aneurysm.
And I still have it right now.
Look, Michael,
you got to remember something ‐‐
as entrepreneurs,
we fail multiple times,
multiple times,
over and over again.
I've lost millions of dollars
with bad ideas I
didn't know were bad
'til I realized
they didn't work.
The hallmark of
an entrepreneur ‐‐
you've got to pick yourselves
up and you got to get going again.
You know what? I understand.
We're over here
and you're over there,
and we need more
than just finance,
and we need more
than just connections.
We need mentorships.
We need a strategic partner.
This is what we need.
I'm staying focused on the fact
that this is an
investment opportunity.
I'm not saying you're
not fantastic people,
but this is not investable.
I'm out.
What I'll tell you
is that we have grit.
I've been called crazy,
delusional,
that I need to, you know,
I need to give up, right?
If I gave up,
I wouldn't be here today.
Cuban: Look, guys,
how much do you have in inventory?
We make as we go. Smart.
Look,
you're in the circumstances you're in.
I don't question your heart.
I don't question your desire.
I don't question
your authenticity.
Every one of us has had
our backs against the wall.
I can't tell you how many
times I was so stressed,
if ate 50 of these,
it wouldn't change my sex life.
But things happen. So you'll
figure out your personal side.
You'll figure out
the job side of it.
Right? You don't need to
spend any more money on this.
So, keep on fighting like you're fighting,
build to order.
You guys can do this.
I'm not going to invest
because you're not ready.
In your lives,
you're not ready yet.
Product wise,
you're not ready yet.
So, guys,
I'm out. Good luck, guys.
Alright. Just so you guys know,
one thing really quick is
that we didn't get to talk
about the vision for the brand.
It's not just a one‐hit wonder.
We're going to be
doing other bars.
At this point,
that's not what it's about.
Not for any of us,
because it's got to be investable.
O'Leary: I wish you the best of luck,
okay?
John: Good luck,
guys. Cuban: Good luck, guys.
Alright, that's it. Greiner: Good luck,
and good luck with your health.
♪♪
Obviously, we didn't get a deal,
and it hurts,
but at the end of the day,
like, we're fighters.
We know this is
going to be okay.
Like,
we're going to get through it.
We've gotten through
so much together
that we're the, like,
poster children
of just pushing through
no matter what. Yeah.
So,
it doesn't matter what happened today.
I'm a big believer that
everything happens for a reason
and we're just thankful
for this opportunity,
and we know that
it's going to get us
exactly where we're meant to be.
Narrator: Next into
the Tank is a product
to take your victories
to the next level.
♪♪
Hello, Sharks.
My name is Matt Walsh,
and I am addicted to winning.
And I'm Dax Holt,
and I fully support his addiction.
And we are here seeking $600,000
for 8% of our company,
TrophySmack.
Over 50 million Americans
pour their hearts and souls
into fantasy sports every
year for a chance at victory.
Friends battle it out
for months on end,
smack talking one another,
investing ridiculous
amounts of time and energy
for the winner to
walk away with what,
empty bragging rights,
a generic Little League trophy?
I don't know about you,
Sharks, but when I win,
I want everyone to know.
And that is why we
created TrophySmack,
the best place to
get the most unique
and customizable
fantasy sports trophies,
blinged‐out rings,
and over‐the‐top
championship belts.
I mean,
imagine walking into your next draft party
with this bad boy
on your shoulder.
Whoo!
So, it's super simple.
You go to our website,
you choose your sport,
then your size and your color.
There are literally thousands
of trophy combinations
to choose from
to create your very
own dream trophy.
So,
we understand how important winning is
here inside the Tank.
So, we went ahead and
we custom‐designed trophies
for each one of you Sharks. Wow.
So, go ahead and unveil
the greatness next to you.
Wow. I like mine.
A golden slipper.
O'Leary: A bull and bear. Stock market,
baby. Wall Street.
Cuban: I actually like
the one I already have
that's in my office.
[ Laughter ]
How did you guys
come up with this?
So,
it happened in the most organic way.
Credit card out,
looking for something awesome.
I'm in the finals.
I'm the new guy in the league
with all the dad friends,
and it didn't exist.
So, just joking with the guys,
I said, "Hey, guys.
I wanted to just
get a six‐foot trophy,
and I wanted to
ride it in like a pony
to show you guys how
much I obliterated you all.
But since it doesn't exist,
I have to start my own now."
But I don't get why
that doesn't exist.
I have ordered trophies for
my business my whole life,
every type of trophy.
Why couldn't you use
a regular trophy house?
What's the difference here?
So,
the trophies that exist today,
just sort of that same
antique‐looking ‐‐
Yeah, with the guy with the ‐‐ you know,
standing on top.
Exactly. Everyone was
kind of selling the same thing,
so when we came onto the scene,
we were the first company
where we had the ability
for someone to change
the colors on the fly,
change the side on the fly. John:
That does look cool, I will say.
Did you design it?
We design everything.
So, what are your backgrounds?
Professor of mine gave
me invaluable advice.
He said, "Matt,
if you want to be
a really successful
entrepreneur,
you need to get into
supply chain and logistics
to really figure out
how businesses operate
and how they
function and execute."
So, first job out of college,
I took a job at a
freight brokerage.
I rose to the top of the
company in two years.
Wow. I was the number one
salesperson in the company.
Cuban: It brings up a
good lesson for people.
Whatever you're doing,
be the best at it.
Be the best at it, yeah. Because
once you're the best at something,
every door opens up
and then you learn where you
can be a great entrepreneur.
So, good for you for focusing
on being great at what you did.
Absolutely.
My background is
completely the opposite.
I come from TV and film doing
entertainment news, "TMZ."
How much did you invest in
this business to get it going?
We invested $250,000.
Whoa. Wow. That's
a lot of money.
Why do you have to invest that much to
get this going? That's not messing around.
What is it you spent
your money on?
Walsh: So, in the beginning,
we started small.
Initially,
it was a $60,000 injection,
and in the first three weeks
of getting into the fantasy
football draft season,
sold out of everything.
What's the average
cost? The average price
is about $150, $160.
What does it cost
you to make it?
Our average profit
margin is 80%.
80%? Wow. Wow. Dang.
Can you walk through the
revenue growth first year,
what you sold, what you made?
So, Year 1, January 2018,
we did $850,000 of revenue.
Amazing. Your first year? Wow.
What did you make? What
did you make on the 850?
The first year,
we had about a $200,000 net
that we just rolled right
into inventory for Year 2.
Okay. And then next year ‐‐ '19?
And then, Year 2, 2019,
we did $1.9 million.
Wow. Okay,
and you made what on that?
We had $775,000 gross profit,
and we netted around $500,000.
And this year,
what are you going to do?
Year to date?
Walsh: So,
in spite of the pandemic,
our revenues year to
date are up over last year.
We've done $650,000
revenue so far.
The opportunity for us is
a lot broader than fantasy.
So, corporate awards,
employee recognition, U sports.
But there has to be a ton
of competition in that space.
A ton.
There's a reason why no one
in the trophy and award
space has really taken
a national approach
on e‐commerce.
The traditional way of
building trophies is crazy.
The assembly process in our
first year ‐‐ Was a nightmare.
Assembly was more
expensive than cost of goods.
The way that we
developed our columns,
the assembly time
was cut down by 90%.
Now I get it. You're
a logistics guy. Yeah.
Everybody else in this
space can't do what you do
because anybody else would
take years to get up to speed
to where you are. Correct.
Yeah. Okay, guys,
so I really respect people
who play sports.
People that are sports fans,
I kind of respect them.
Fantasy guys ‐‐ whew.
[ Laughter ]
So, let me tell you a story.
I was trying to date
this really hot woman.
I didn't realize she never
had a date on Sunday
'cause these morons were
so busy watching sports.
So,
no matter where I was at in the world,
I would make sure that I
got to New York on Sunday
to take out this
smoking hot woman.
And I remember her telling me,
you know,
"I really don't like
guys who like sports
'cause, you know,
I'm alone on Sundays."
And I said, "I will never watch
a sports game my entire life
if you marry me,"
and I'm married now.
That's awesome. So...
I'm out.
[ Laughter ] Thank you.
Guys, look,
I'm going to make you an offer.
I'll give you $600,000
for 25% of the business,
and my value is to try
and work it into the
corporate market,
which isn't that easy.
But wait a minute.
Wait a minute.
What do you want the money for,
and what is it that you need?
We're looking for a strategic partner,
right?
We don't want to just
continue doubling every year.
We want to 10x.
Matt,
what would the strategic partner bring you?
So,
whether it's opening up the doors at arenas
for products
within the stadiums,
right, commemorative rings.
Are you here just for Cuban?
I think so. No, we are not.
What do you want to do,
Mark? What is Mark doing?
Cuban: So, guys, I mean,
I like what you're doing.
I like the fact that you're hustlers,
right,
and you're looking
to touch all the pieces
and you're just
following the money.
The question is,
8% isn't enough.
I'll make you an offer.
I'll offer you the $600,000
but I want... 17%.
Appreciate the offer.
Thank you very much.
And it's either a yes or no,
because ‐‐
No,
I'm going to make you an offer.
There you go. Then I'm out.
Whoa! That was a fast yes or no.
Corcoran: You didn't even answer.
That's unfair. Shot clock. Shot clock.
Shot clock. Whoa.
Mark, they didn't even
answer her. That's not fair.
You might as well. Cuban: Unless
you want to say yes, you know.
So it's your decision,
right? So I'll tell you my offer.
I'll tell you my offer.
Let's take the deal. Deal. Done.
Let's go. Holt: Deal. Alright,
Lori.
John: Aw. That was like
taking candy from a baby.
I had such a good offer for you.
You should be ashamed of yourself.
He put us on the spot too hard.
You know what? It's
good to be the king.
[ Laughter ]
Yeah, buddy! [ Laughs ]
Dream since the beginning, man.
I've been watching "Shark
Tank" since Season 1.
This is surreal. We're
partners with Mark Cuban!
[ Both laugh ]
♪♪
♪♪
♪♪