Shark Tank (2009–…): Season 13, Episode 11 - Episode #13.11 - full transcript
Tonight, global
business tycoon Peter Jones
returns to the Tank.
Peter is the most seasoned
investor on "Dragons' Den",
the U. K.'s version of
"Shark Tank",
with 18 seasons under his belt.
I've been sitting in a chair
like this for a long time,
and you have a chance now
to change your life forever.
You've basically knocked
somebody else off
and took over the category.
I would call us a knock‐off,
though.
"This is a lifesaver."
At least show us the respect
of knowing
where the value is
that we're gonna bring.
What you've done here
is quite amazing.
I'm gonna help you
sell these things.
You're gonna see the power
of what a Shark can do.
I feel like you're a little bit
all over the place.
You are a bit
of a crazy chicken.
I'm not a crazy chicken.
I'm really driven,
but I know
I can improve in some things.
I think that this could be huge.
What's your profit?
We're running a loss
at about $400,000.
Uh‐oh!
First in the Tank
is an innovation
to a common household tool.
Whoa! Oh!
Oh.
Are you all right?
Yeah. Oh, my gosh.
Oh.
Hey, no problem, John.
No problem. Looking good.
Thanks, Trev.
Oh, thank you.
Looking good.
Hello, Sharks.
I'm Trevor Lambert
from Champlin, Minnesota.
And I'm John Vadnais from
White Bear Lake, Minnesota.
And we're seeking $350,000
for 2.5% in our company.
Sharks, messes are everywhere.
Whether your kid throws half
their snack under the table
or your cat, Fluffy, trailing
litter out of the box,
or me
taking a spill on the Tank,
all of us deal
with messes every day.
But for quick cleanups, who
wants to lug out that bulky vacuum
or break their back bending over
chasing that last line
of dirt with a dustpan?
Come on, now! There's
got to be a better way!
Well, Sharks, there is.
Introducing VaBroom,
a smarter way to
clean your floors.
No more dustpans or
bulky vacuums required.
With VaBroom, just sweep
dirt and debris into a pile,
then tilt to the side.
The pressure‐activated nozzle
quickly and easily
cleans up any mess.
See? It's a vacuum.
It's a broom.
It's VaBroom!
It's quick and complete
with just one sweep.
All of that power, and
it's just over two pounds.
So it's easy to
maneuver and handle
in those hard‐to‐reach places.
And when done,
just empty the trash.
Clean and easy. Bombs away.
Oh.
Ha! Bombs away.
So, Sharks, let's not
sweep profits under the rug.
It's time to suck them
up with VaBroom.
It's a vacuum. It's a broom.
Now, Sharks, say it with us ‐‐
It's VaBroom!
Now, who would
like to give it a try?
I'd like to try it.
All right.
So I've got ‐‐ So
sweep it normally.
Just how you
normally would. Yeah.
So like into a
little line, right?
Yeah, or a pile.
Then you line it up.
Yeah, like this? Like that,
and it's pressure activated.
Oh, I see. So I just ‐‐
So when you gauge
the floor, it'll turn on.
Very cool. Yes.
All right. Now let's
drop the bomb.
Excellent.
Want to see that happen.
So VaBroom logo goes up. Yep.
Yeah, not bad.
So you all do have a sample,
and it's been shortened
so that you can test it.
Why don't I just buy a vacuum?
This really isn't intended to
replace an upright vacuum.
It's meant for quick cleanups,
and that's really the goal
that we're doing with
VaBroom as a brand.
So tell us about you.
I am married, 5 kids. 5 kids?
Yeah, a little bit
like "Brady Bunch".
That's the damn
reason for the valuation.
Right? And it's why
we do what we do.
But to go back a
ways, back in college,
I was starting to come up
with different product ideas.
Eventually, I was
being hired by others
to help them license products.
In 2010, I founded
a design firm,
and we have various industrial
designers and engineers on staff.
And so we do come up with
some of our own products,
but typically, we get hired
from various folks ‐‐ small‐
or medium‐sized companies ‐‐
and that's how we met John.
I'm a fourth‐generation plumber
and owner of my family company.
It's through that company
I'm constantly seeing problems,
and I'm making
solutions for them.
But that led to a lot of
products that I patented
and brought to market.
Trevor and his company actually
helped me launch one of my items,
and I saw VaBroom as
just a 3D‐printed prototype.
I knew this was the time that
Trevor was looking to pivot
to bring a product from
prototype to retail and beyond,
and when the opportunity
came for me to invest,
I knew this was the product.
So this must have
taken off already.
We have come with sales.
2.5% for something.
Give me the last 12 months
of sales and how you've done.
In the last 12 months, we've
done $3.1 million in sales.
‐Wow. That's so great. ‐Whoa!
We're projecting $5 million
conservatively this year.
‐Where are you
selling them? ‐Nice.
We sell direct to consumer,
and we just started retail.
We just delivered to Bed Bath &
Beyond for a two‐month promo.
In two weeks, they sold
out of all their online stock
that they had projected
for the entire promo.
So tell me about the cost
of the product. What margin?
So it's just over $17,
is the landed cost.
$37 wholesale.
And retails for $59.99.
What was the profit on
$3.1 million in dollars?
It was about 300‐and‐some
thousand dollars,
which we've rolled
right into inventory.
I don't see anything on the box
that says "patent
pending" or "patented."
We have international
patents pending.
We have a design patent
that's issued in the U. S.
But I'm wondering
how is it really different
from, like, a dustbuster
or something like that
where, you know, it's
small, it's handheld,
versus having to
have a whole boom?
Good question.
When we developed it,
we just hate the dustpan.
It's such a
frustrating pain point.
Nobody in the
history of everybody
can get everything
onto a dustpan.
Which is why we did this,
and people see it right away.
Now what else? What we're
getting on customer feedback
is we're hearing people
with mobility challenges
that are coming to
us, "This is a lifesaver.
I have a bad back and stick vac
is too heavy for me
and I can't bend over."
So this is now enabling them
to actually clean their floors.
How much have
you invested in this?
John invested $200,000.
I invested $200,000.
Good for you, John.
There was $100,000
on Kickstarter
and then it was really
self‐funded by the company.
This firm
that came up with this,
this industrial design firm ‐‐
Am I investing ‐‐ Am I
getting a piece of that?
Great question.
So what we've done
is we've shuffled
some of our employees
of the design firm
into this new entity.
Is there a contract
between what I'm investing in
and the design firm?
Correct. Right.
So there's a royalty
to the design firm, that's it.
A royalty? Did I hear royalty?
Yeah, yeah, a royalty. So you
would appreciate that.
So rather than have to, you
know, VaBroom to pay back
the design firm
for the investment,
we just decided it would be
much cleaner if it was just ‐‐
‐And how much is that royalty?
‐How much is that investment?
5%.
Trevor and John,
why isn't it altogether?
Why have you made
it so complicated?
Well, the issue
is, is that we have
a service‐based
design consultancy
and other products
that we're launching.
But why don't you
package that up?
Well, if there's interest,
we would entertain offers.
Well, otherwise it gets messy.
Guys, let me clear
the deck a little bit here.
You guys are a design
firm with inventors
that are really good at that.
You're also good marketers,
but you're trying to
segment things out
so that you kind of have
your cake and eat it, too, right?
You get to control
the design firm.
You get to segment your
product into this new company
that you only want
to give us 2.5% of.
It's not worth getting up
in the morning for 2.5%,
particularly when
your greatest skill set
is more available
to the design firm
and anything else you come
up with outside this company.
So for those reasons, I'm out.
Trevor and John,
I‐I have to say,
I thought your pitch
was really good.
You clearly solve an issue.
I'm not convinced that
the issue is that big.
And I hear your points
that you've raised,
particularly with people
that are actually finding it
difficult to bend down,
but I'm not sure you
need to reinvent the broom.
You've made it really
complicated today.
So for that reason, I'm out.
What was your initial
ask? 2.5% for how much?
$350,000.
2.5% is either, "I
just want exposure"
or "I'm greedy."
I'm not saying that's about you.
Just this is what goes
through our head, right?
It just doesn't feel
right, so I'm out.
I like the product, okay?
I like the fact
that it's selling.
Making a deal with you
is gonna be complicated.
You need my $350,000 for
inventory, I assume, right?
Correct. Yeah.
And growing direct to consumer.
We ‐‐ We think that a Shark
could help us with
our media efficiency.
Oh, definitely, definitely.
And I can also sell this for
you as Chef Wonderful on QVC
and sell a million of them. Yes.
That's not a problem.
But, I mean, I got to
be incentivized to do it
because there's only one
Chef Wonderful, not two.
Here's an offer for you.
Three Sharks are out,
but Kevin is interested
in Trevor and John's
innovative broom
company, VaBroom.
Here's an offer for you.
I'm known for being
creative with my offers.
I teach the Sharks
how to structure things.
So $350,000, I
give you that, um,
because you brought
up the word royalty ‐‐
I didn't. You did.
I like royalties because that's
how I can get my capital back.
So I'll give you the $350,000.
I want a $3 royalty
on the VaBroom
until I recoup $700,000.
So I'm not being
greedy about this, okay?
I just want some
return of capital.
But I want 2.5%
of the design firm
because I don't know what
else is coming down the pipe.
‐Whoa. ‐All right?
So equity ‐‐
instead of a venture debt deal
in a way, with the structure
that I get paid back.
That's actually not bad for you.
It's not a bad deal at all.
Listen, guys, I love
innovators and innovation
and, you know, it's a good idea,
but I'm not sure
you'll get your patent
and there's so much competition.
I'm sorry. I'm out.
Okay. Thank you,
Lori. Thanks, Lori.
So as usual, all roads
lead to Mr. Wonderful.
$350,000 for 2.5%, $3
royalty until you get $700,000,
and that's of the whole
design firm, yes? Yes.
You're only interested
if it's the design firm.
Absolutely.
I mean, look, I'm hopeful
that it's not just going ‐‐
We're going to
form a relationship.
I'm gonna help you
sell these things.
You're gonna see the
power of what a Shark can do.
And I want to get the next
product, the next product,
the next product,
the next product.
That's the whole idea.
Get him up a little.
5% for $700,000. Mm‐hmm.
Could ‐‐ Could we increase
your investment to $700,000
and get you to 5%?
No, this is a good snack
bracket for this particular deal.
I like this entry point.
We get this thing
going, it starts working.
We'll do many
other things together.
Ask anybody.
Look at the Bertello Pizza
guys, Boost Oxygen, everybody.
I've upped on everybody
because it's working.
I like things that work. Yeah.
Mr. Wonderful, you're
definitely a Shark
we wanted to do a deal with.
And you suck up well, too.
Um...
Yeah.
Mr. Wonderful,
you've got a deal.
Nice job, Kevin.
All right, Kev.
Let me tell you why I did this.
I buy a new broom
for Barbara every year
so she can fly around.
And I really like ‐‐ I
really like this model.
This is fantastic.
Thanks, guys. Looking forward
to doing business with you.
Yeah, it's gonna
be great. Thank you.
Thank you, Mr. Wonderful.
Appreciate it.
Congratulations,
guys. Well done.
All right, take
care. Bye‐bye. Hey.
Thanks, Sharks. Well done, guys.
Let's go!
Yeah, buddy.
All right.
And we got Mr. Wonderful.
That's who we came in for.
And we got it. Yeah, he's
gonna help us on media.
It was perfect. It's
gonna be great.
We kept the valuation.
Oh, absolutely, we
did. Yeah, fantastic.
Oh, great job. It'd
be great to have him
actually with the design firm.
Absolutely. He
will be so helpful
in way more than just VaBroom.
Oh, my God. Very exciting.
Oh, what a marathon.
What a ride, eh?
What a marathon.
Awesome. What a ride.
In Season
12, 19‐year‐old friends
Nick Hamburger and
Zack Schreier struck a deal
with Daniel Lubetzky
for their healthy,
egg‐white‐based
snack chips, Quevos.
You guys are gonna kill it.
Let's see
what they're up to now.
Zack and I were really
excited to bring Quevos
to "Shark Tank"
because we were looking
for an experienced partner
who knew the food industry,
and we couldn't have
been more excited
to partner with Daniel,
who's a giant in our industry,
and has been helping us
every step along the way.
We've
expanded our retail footprint
from 400 stores to
over 1,500 stores,
including GNC, Vitamin
Shoppe, and Hy‐Vee.
Whole Foods has become
by far our strongest retailer.
We're now doing over three
times the sales that we used to do,
and we're maintaining that
eight months post the show.
In our two years of
business before "Shark Tank",
we did $1.3 million in sales.
Now, just eight months
since "Shark Tank",
our lifetime sales
are $3.2 million.
Brands really reflect
their founder's personality,
so it makes sense that the
packaging be youthful and fun.
What's fun about
working with Nick and Zack
is that I have like 20‐plus
years of painful mistakes,
and now I'm able to teach
them how to overcome those
and avoid those mistakes
and just grow faster,
better, cleaner,
and they listen,
and this is very, very pleasant
when you have
entrepreneurs that want to learn
and that want to
execute on those lessons.
I know you've been eager
to try to raise more money
to keep up with your momentum,
and I have a little bit of
a surprise for you here.
We've decided to go ahead
and invest another
$1.3 million in Quevos.
We're very, very
proud of you guys.
We're very excited
to help you guys grow.
That's awesome. That's crazy.
Thank you, Daniel.
When people our
age or younger ask us
about starting businesses,
I always tell them that good
businesses are really simple ‐‐
rooted in a customer need
and meeting that need.
And we can tell you, after
years of putting the work in,
there definitely is no age
limit to entrepreneurship.
If you're in high
school or college,
you can be as
successful as anyone older
if you put in that work.
"Shark Tank" changed our lives,
and it shows that
you can be any age
and create and scale
a successful company.
Next up is a healthier version
of a favorite indulgence.
Hi, Sharks. My name is
Hannah. And I'm Mollie.
We're best friends from
Los Angeles, California,
and we're seeking $600,000
for 7.5% equity in
our company... Whoo!
Ooh! ...Must Love.
Look at this table of
ingredients over here.
They're cheap oils
like canola and palm,
and artificial
preservatives and flavors.
Not to mention
monoglycerides, diglycerides ‐‐
things I don't even
want to try‐glycerides,
and you won't believe what
these ingredients are for.
Medicine? Paint?
I got it. Cosmetics?
No, it's ice cream.
Gross, right?
Ice creams marketed
as better for you
often have unwanted ingredients,
even ingredients made
from petroleum, wood pulp,
and even beetles.
Gross, right?
That's why we created a line
of plant‐based indulgent treats
made with simple ingredients.
Must Love.
But Must Love is more
than just dairy‐free ice cream.
It's simply good‐for‐you fun
that comes in pints
like Peanut Butter Swirl.
Or Mollie's favorite,
Cashew Cookie.
Or Hannah's personal
favorite, Snickerdoodle Dough.
And novelty bars like
Dipped Crunchy Peanut Swirl.
Or Dipped Banilla. Which tastes
just like a chocolate frozen banana.
But how do we do it? We start
with a simple base of bananas or oats
and sweeten with real fruit,
and from there, we add
in all the crave‐worthy stuff
that you really want
in your nice cream.
But, Sharks, we
didn't stop there.
This summer, we
launched Sprinkles!
Whoa!
They're plant‐based, non‐GMO,
and go perfectly
with our ice cream.
Even the vibrant
colors come from plants.
Must Love is bringing
plant‐based indulgence
to your family's freezer,
pantry, and more.
So, Sharks, who's
ready to fall in love with...
Must Love?
So please dig into your samples,
and I'd love to tell you
about what you have.
From our banana
line, we brought you
our signature
Dipped Banilla bars
and also our Cashew
Cookie pint, which is ‐‐
What about the chocolate
around it? This is great ‐‐ Banilla.
Yes, they're dipped in
chocolate, but it's vegan.
There's no dairy. It's
vegan. There's no dairy.
‐This is great. ‐It's very good.
Thank you. Very banana‐y.
Yes, you "must love" bananas.
I thought it was
gonna taste terrible.
It's pretty good.
Kevin, from you,
that means a lot.
Thank you. Thank you.
I just want to say
I'm not vegan at all,
and I've eaten so
much of this, I feel sick.
This is really,
really scrumptious.
Thank you so much.
So tell us about you.
Yes, thank you. So
we're actually best friends
who met in
undergrad at Berkeley.
We've been best
friends for 15 years.
Both our parents
immigrated here from Korea
and started their
own businesses,
really came here for
their American dream.
And after we both got our
MBAs separately, I was at MIT.
You're an MBA from MIT? Yes.
What was your
specialty or focus?
I focused on operations.
And I focused on
marketing. Geez.
So you're asking
for $600,000, 7.5%.
That's a pretty
punchy valuation.
So I'm assuming now this
has sold like hot bananas.
We launched in 2017.
We had $35,000 in sales,
and since then, we've
grown double year‐over‐year.
Year to date, we've
made $1 million.
Wow! We're gonna end this year
$1.7 million in revenue,
and that's a very
conservative number.
And what's your profit?
We're running a loss
at about $400,000.
‐Uh‐oh! ‐Wow.
Okay, so why do you feel that you're
running a loss? So why the valuation?
So the food industry,
I'm sure you're all aware,
you know, it's a really
cash‐intensive business.
You know, when you
get into a grocery store,
you need to first
pay for that marketing
to be able to be there and
to reach those consumers.
'Cause you're going
after the frozen section.
Hard to displace other products.
Yes, we've fought tooth
and nail for every position
we've been in, and the frozen
space is very competitive.
Where the growth has been
is dairy‐free and novelties,
so that's really our sweet
spot of where we're heading.
And we have kept our shelf space
in all the new doors. What stores
are you in? We don't even know.
Tell us what stores
you're in, what does it cost,
and what does it
cost for you to make it.
We're available nationally
at Sprouts Farmers Market
and as well as in certain
regions of Whole Foods.
This year we launched
in Costco. Costco.
We tested with them last year...
And it was wildly successful.
And blew them out of the water.
They retail for $5.99
on shelf typically.
And our cost of goods is $1.80.
So how much money
have you raised, if any,
and from who?
We both invested
$200,000 of our own money
right off the bat.
Oh, good for you.
Okay, you're serious.
We also raised in the
last 5 years $1.4 million...
‐Ooh. ‐Wow.
From friends and
family, and then angels
and institutional. What valuation
was the $1.4 million raised at?
We're actually in a
seed round right now.
Which is why we're
here. We're here.
We're raising at an
$8 million valuation,
so this is part of the seed round
right now. - Wait, okay, guys,
how could you come
on "Shark Tank"...
You've watched the
show, I presume?
Yes. Right.
Knowing every single deal
in the history of "Shark Tank"
has been negotiated?
Do you not think you're
gonna have to negotiate?
Yeah, we're ready to negotiate,
and we've spoke
with the other investors
who have participated
in the seed round,
and they're very excited for you
guys to be part of the seed round.
They're so excited that
they gave us the exact offer
that everybody
else is gonna get?
Well, we're here
to get to know you.
You're here to get to know us.
No, you've known us for 13
years. You already know us.
You know, to come to
us and offer us the same
that you're offering
the streets ‐‐
I mean, at least show
us the respect of knowing
where the value is
that we're gonna bring.
I'm out.
Thank you. We really
appreciate the feedback.
You know, there's two problems.
You're not worth
8 million bucks.
You're also asking for $600,000.
Part of your strategy
on "Shark Tank",
you have to decide how
much you're asking for.
Yes. Yes. You're in
the top quartile of ask.
It's too much for me. I'm out.
I just want to say, I've
invested in a business
like this, actually
on "Dragons' Den".
It was exactly as you've
got here, in essence.
So it was frozen dessert.
What happened to that business?
Whilst the sales were going
up, but sadly, the margin reduced.
Because as we got into Whole
Foods, Costco, and others
and all the supermarkets,
they wanted to have
the product 2‐for‐1.
They want to have the specials.
They want to have the end cap.
Every single quarter,
another marketing initiative.
When the brand then
started to actually go down,
we had to invest more.
We ended up with less
than 3% or 4% net margin
every single year.
What ended up happening
was that the manufacturer was
making more money than we were.
Mm‐hmm.
And I got out. I almost ‐‐
I just got my money back.
So just because of that,
of my experience, I'm out.
I'm sorry.
Guys, the problem I have ‐‐
Look, the products are good,
they're just not
differentiated enough.
I get that they're clean, natural,
wholesome ingredients. Yes.
But there are multiple products,
and the number of products
that meet that criteria
and check that box is
growing very quickly.
There's not that one trigger
that makes someone say,
"Okay, I have to try this."
And for that reason, I'm out.
Thank you. Honestly, I
think... You're welcome.
We've captured new customers
with very small marketing ‐‐
Guys, the only Shark
that matters now is Lori.
Well, listen, let me tell
you what I think, okay?
Because I really know
this space, actually...
Yes. Yes... because I did a
deal a year ago with Frozen Farmer,
and we created
what we call Frobert,
which was a combination
of sorbet and ice cream.
You know, everybody
up here at the time said,
"Oh, my God, brutal space.
You're never gonna make it."
You remember
that? And I was right.
And It was ‐‐ No,
actually, he was wrong.
It was a hard road,
but we're gonna hit $20
million in sales this year.
But you are so competitive
with my Frozen Farmer
and what we're already doing
that I would not
be being fair to her
if I invested in
another ice cream line.
And so for that reason, I'm out.
We so appreciate that. Thank
you so much, Lori. Thank you.
Thank you, guys.
Good luck, guys.
Good luck. Thank you.
For 200K, it's a flier.
I would have tried it.
For 2.5%? No, I would
have asked for 15%.
Yeah, and they would
have laughed at you.
No, they would have said,
"Mr. Wonderful,
I'll do the deal."
And I'd be up there
right now, just like that.
What alternate universe
would this happen in?
There's only one Mr. Wonderful.
Thank God for that.
Next in the Tank
is a trendy fashion
statement for men.
Hi, Sharks, my
name's Justin Clark,
and I'm from Santa
Clarita, California.
And I'm Wyatt Thompson, also
from Santa Clarita, California.
Today we're seeking
$200,000 for 5% of our company.
Sharks, men's clothing
today is so boring,
all of us walking around in
the same shirts and pants
and pants and shirts. Ugh. Pth!
That's why we
created Romper Jack.
Whoo!
Romper Jack is a men's
apparel brand, built for guys
that don't have a lot
of options to stand out,
look good, and feel confident.
Sharks, as you can see, we
got something for everybody.
Like our pride romper,
or even our flannel romper.
Our rompers are
fitted, fashion‐forward,
and made from high‐quality
premium materials.
I mean, Sharks. Come on.
Doesn't Wy look pretty cool
in his floral passion romper?
Thanks, Justin. You're
looking pretty good
in our navy chateau romper.
You know, it's more
than just a button‐up shirt
sewn into shorts, it's
a self‐esteem machine.
So, whether you're
looking for a jumpsuit
for your next wedding party,
overalls for a Sunday picnic,
rompers for a music festival,
or just some fitted shorts
for your next brunch outing,
Romper Jack has
you stylishly covered,
at least from here to here.
So, Sharks, we invite
you to romp around with us!
Who's ready to be a part
of this amazing,
profitable romper‐tunity?
Guys, why don't we just jump
‐‐ I mean, $200,000 for 5%?
I mean, what the French toast?
What's up with this?
What are your sales?
In the last four years,
we've done $3.7
million in sales.
‐Whoa. ‐Wow.
What about the last 12 months?
$1.1 million.
And where are you selling
these? How are you selling these?
So we currently ‐‐ we sell
all online, all off our website.
I mean, this got to be
only for skinny guys,
'cause I wear this, I'ma look
like I'm in my third trimester.
Who's ‐‐ Who's buying this?
Who's ‐‐ Who's your consumer?
Who's buying this?
So most of our consumer
is the LGBTQ market.
Okay. Right now, mostly gay men
between the ages of 25 to 45
absolutely love our product.
And then we also have a consumer
that, like, is, like, the
fraternity college market.
Do you have any competition?
Yes, there is multiple companies
that started in this space,
but we totally destroyed
the ‐‐ the space.
So the story is we found a
Kickstarter campaign online
for the male romper.
Now here it was May
and they weren't delivering
the product until August,
and we thought "Man,
romper season's over by then."
So there's a season?
Romper season. I
mean, we were thinking
this was more of a summer item.
So we saw that
Kickstarter campaign
and we pulled some
money together.
We actually beat the
Kickstarter campaign to market,
becoming the first company
selling these in North America.
You basically knocked
somebody else off
and took over the
category. That's your claim.
I wouldn't call us a
knock‐off, though,
because we did it better.
Lori, looking at these two
guys now in their romper outfits,
do you find them attractive
from a female perspective?
Oh. Okay, I've got to be
really, you know
let's put it this way.
I feel that they are
very nice‐looking men.
I feel that the romper,
I don't know if I like
the fact that the
shorts match the top.
I kind of get the niche thing
with the ‐‐ 'cause I'm already
in this space with Rounderbum.
Why are you thinking Rounderbum,
which is underwear
that enhances?
My Rounderbum
community is their community.
Oh, okay. And when you
get a hit in the community,
you sell a lot of
stuff. Yeah, exactly.
Because it's word of mouth,
your customer
acquisition cost goes down.
What is the return rate?
When people get their
romper, they stick it on.
Yeah, it's about 9%.
What do you sell them for?
This product that
I'm wearing right now
sells for about $79.
This one's $69.
Why is this worth
4 million bucks?
That's a great question.
So if you ‐‐ It always is.
So, like, 2017, we did $200,000.
2018, we did $580,000.
2019, $980,000.
During COVID, the
height of COVID 2020,
we did $1.1 million.
Right now, we're on track to
do $1.5 million this year alone.
And also, it's loungewear,
right? On that $1.5 million,
you gonna make
any free cash flow?
Yes, we're actually
cash flow positive now.
Last year, we did
$150,000 in profit.
Good for you.
And paying yourselves? Yeah.
Okay. And then this
year on the $1.5 million,
what are you gonna
make, do you think?
I would say about
$300,000, $350,000.
Really?
Is it just the two of you
running the business?
Wyatt and I run, like,
most of the business,
and then I hired
stay‐at‐home moms to do all,
like, the customer service
and returns and
things like that.
Guys, let me clear
the deck a little bit here.
Clothing is just not my thing,
and for that reason, I'm out.
Thank you, Mark.
You remind me of myself,
when I found a community
that felt like they had
something that was theirs.
However, I got
to see myself in it,
and, um, it's just
not one of my styles.
I mean, I think I would
look like a yodel in that thing.
I got to be able to wear it
and feel like I'm part of it,
you know, so that's where
I'm having the ‐‐ the challenge.
So I'm out.
Thank you, Daymond. Thank you.
Guys, I'll tell you where I am.
I think you're gonna really,
really struggle to grow this.
Even ‐‐ I don't think that's
enough money, either,
if you want this to be big.
You can always put
more money in if you ‐‐
I know you can, but then I think
then I'm gonna take a
large slice of your company,
and that's not what
you're gonna want.
You're gonna resent me.
So I'm really sorry, guys,
but for that reason, I'm out.
You are doing well, and
you're obviously smart ‐‐
Just to stop you
right second. Yes?
We forgot to tell you,
we do have Romper Jill.
Where is Romper Jill?
Romper Jill is
not here right now.
We put a pause
on it during COVID,
but we're just now
bringing it back to life.
And Romper Jill is kind of a
matching style to Romper Jack.
So if you have Jack and Jill,
you know, you take
your best girlfriend out
and you got your
guy friend and bada‐‐
Well, you want to
know something?
I think couples would
like that, having matching.
I don't think that this is
the right business for me.
I'm sorry. I'm out.
Thank you.
And then there was one.
All roads lead
back to Mr. Wonderful.
It's one of those
on‐the‐fence deals for me.
Sales are validation that
you've built a niche here
with this product, and I
know the community already
through Rounderbum.
I‐I just ‐‐ I look at the,
you know, $200,000, 5% ‐‐
I could squeeze
your heads, I guess,
on taking a much bigger chunk.
Normally I know
when I hate a deal,
but I don't hate this one.
So we've never been able
to have inventory in stock.
We've actually only been
selling on back order and preorder
because we can't
keep up with the sales.
People are waiting two months
to receive our products. Yeah.
Guys, there's a lot of
pitches coming down the hall.
I got to fall in
love right away.
I like it, I don't love it,
but I'm impressed
with what you've built.
I'm just not gonna
do it. I'm out.
Thank you, guys, so
much for your time.
Thank you. Really appreciate it.
Good luck, guys.
Good luck, guys.
‐Thank you. ‐Oh, man.
That's all right. We're
still gonna ‐‐ Yeah. Yeah.
We're gonna romp all
the way down to the bank.
It's gonna grow. It's gonna
grow. It's gonna grow.
That's right. They'll miss out.
Yeah. I think, um, you know,
they made a bad decision
today, not investing in it.
I think this is just gonna
continue to blow up.
Our audience loves us,
our customers love us,
and we're gonna take
this thing to the next level.
Next up is a
stylish and functional way
to bring more
light into your life.
Hi, Sharks. My name
is Raquel Graham,
and I'm coming to you
from Chicago, Illinois.
I'm seeking $200,000
for a 15% stake
in my company, Roq Innovation.
Sharks, picture this ‐‐
You're walking
your dog at night,
and it's time for you to
pick up after your pup.
So you pull out your flashlight,
but then you have to hold
the flashlight and the bag
and your dog's leash.
Now, this is quite
a juggling act.
Or maybe you're exercising
or changing a tire at night.
There are so many times
where you need light to see
and your hands free.
Well, Sharks, allow
me to show you the light.
Feast your eyes on Headlightz.
Headlightz is a hat with a
removable and rechargeable
LED light that lasts for up
to 8 hours on one charge.
The light can be charged
in any USB port or computer.
The hat is unisex,
one size fits most,
and machine washable.
Headlightz provides
hands‐free lighting
so you can do so many things
and look great at the same time.
So, Sharks, how about
we see the hat in action?
Let me hear you say,
"Show me the light."
Show me the light.
Okay, Sharks.
So now that I've
shown you the light,
who is gonna show me some money?
So, I have samples for you guys.
Whoo. That is bright.
Yes, it's br‐‐ That is bright.
Yeah. It's 140 lumens.
I don't know if that means
anything to you guys.
It does.
That's a nice way to wear it.
What? Because you
have it cocked to the side.
It's the only way to wear it.
Oh, okay.
I think it's a hip look. Greiner:
You're like, "This is not okay."
I start the trends around here. You
know what I'm saying? I know. I see.
Obviously.
How do these things work?
Peter's about to
knock over a 7‐Eleven.
Where are you selling them?
I'm ‐‐ I'm on Home
Shopping Network.
You are? Is that your
only mode of selling,
and what have you sold there?
Okay. The lifetime
company is $2.4 million.
Whoa! Good for you.
That's still impressive.
For the hats.
For Headlightz, I did
$1.1 million last year.
‐$1.1 million? That's
fabulous. ‐That is great.
And what are you gonna do
this year on just Headlightz?
This year? I'm
projecting $1.7 million.
Wow. What's your
average selling price?
Oh, I sell at $19.99.
Really?
It's just on the
shopping channel?
Are you selling in
other ‐‐ Oh, no, no.
I'm selling it on my website.
I also ‐‐ I've made the O List.
I'm on "Good Morning America",
- "The View" often.
- You did?
Oh, dang. You're a
marketing machine.
You're doing all this yourself?
Me. Wow.
- This is the company.
- That's impressive.
What's your typical order size?
Oh, okay. Typical
‐‐ Well, it's grown.
Nothing under $25,000.
‐Dang. ‐Really?
Never. You're ordering
$25,000 a time, split amongst ‐‐
Well, I'll do just
$40,000 on HSN.
Is that a full container or ‐‐
$40,000 on HSN.
What are you getting,
a half container in?
A half container? ‐Have
you ever sold on QVC?
You guys! Ha!
‐Boom, boom, boom.
‐We're really warming up.
Half a container? Oh, you're
getting a half container?
You're bringing a half
container in or full container?
It depends, it's relative to
when I can place the order,
how quickly 'cause
I change it. Got it.
I mean, I'm not
sure it's a company.
It's kind of like an
‐‐ I can ‐‐ Oh, it is.
Wait, wait, wait. My
concern is this. Okay.
I give you $200,000 for 15%,
but then you get run over by
a bus in Chicago in the winter.
What happens?
Don't worry. Every
entrepreneur that he talks to,
he talks about getting
run over by a bus.
Don't feel bad. I only ask that
of a single person because ‐‐
They why not just ask her if
she's got key man insurance?
Do you have key man insurance?
I have n‐‐ That means if
you get run over by a bus,
I get paid, big royalty.
Do you have a
patent? I have a patent pending.
So how long has it been pending?
It's been pending since 2018.
Why is it pending
so long? I don't know.
Now, I have made ‐‐ Did you
ever get office actions back?
Um... no.
Well, yes, I did during
‐‐ right before COVID,
and then it got delayed. Raquel.
Raquel, I can't ‐‐ I'll
sit here and be honest.
I feel like you're a little
bit all over the place.
You're a great designer,
you're a great endorser,
but from a business perspective,
there's a real disconnect.
And I think what you really need
is a supercharged entrepreneur
to make this happen for you.
No. No.
Not at all. Why?
No, and that's wrong. No.
No, I‐I don't think so.
Because all of the things ‐‐
This is my point. All of the
things you're talking about ‐‐
patent, you don't
really know the detail.
You've not chased it up.
She's the one running the
company. And she's still selling.
She's still selling
and making money.
She's an individual
entrepreneur.
Yeah, but she doesn't ‐‐ Well,
while these Sharks are arguing,
I've got good news
for you, Raquel.
I'm gonna make
you an offer, okay?
Thank you. The
noise on the sides,
you don't have to listen.
You can listen to my offer.
Okay. Very s‐‐ You are
a bit of a crazy chicken.
Just ‐‐ let's lay it
out there, okay?
I get it, but I like
crazy chickens.
Why am I a crazy
chicken? I don't get it.
Why is he calling
you a crazy chicken?
Wait a second, Lori.
Let me give her my offer.
And I have a story.
I say it in a nice way.
I want to hear your offer, though.
Crazy chicken means energy.
Oh, okay. He thinks
that's flattering.
Well, that's good.
Crazy chicken energy.
Okay. Okay, here's the deal.
I'll give you the $200,000. I
don't want any equity at all.
I'm gonna take 2
bucks a hat as a royalty
until I get my $200,000 back,
then it drops down to a dollar.
A dollar forever?
Of course. As in ever and ever?
I have no equity. So?
Of course I get
a dollar. Forever.
Yes, even after
she's dead. Okay.
Can I say something?
Because this crazy
chicken thing is ‐‐
I like the crazy chicken.
No, I don't like the crazy
chicken. But ‐‐ But let me just say ‐‐
Go ahead, Raquel. Let
me just say something.
In 2016, I‐I got
the call from HSN.
Let's say that was March.
By the summer, I
had become really ill.
And when I say really ill,
I was misdiagnosed
for three months.
It turn ‐‐ They told
me I had pneumonia.
It wasn't pneumonia. It
was fungal pneumonia.
And I had been
misdiagnosed for so long,
it leaked into my, uh ‐‐
my leg and I couldn't walk.
Wow. So I immediately
went into quarantine
'cause they didn't know if
it was Ebola or whatever,
and they had to
treat it aggressively.
In two days, I
had a full stroke,
I had lung failure twice,
and, um... Wow.
And I was on a ventilator
for almost a month.
And I went in August 26th,
came out the end of September,
and I launched on
HSN in November.
So I'm not
a crazy chicken. That's right.
I'm really driven...
That's right... and I
wasn't gonna leave my kids.
So I do a lot by myself,
but I know I can
improve in some things.
You championed
over adversity. That's good.
‐Good for you. ‐Good for you.
And frankly, I understand
why that bothered you,
and frankly, it would have
bothered me, too, so...
I'm not here
to speak up for Kevin,
but, you know,
when he says that,
he's saying it in
an affectionate way.
Raquel, that's a journey
you just took me on.
It's quite a lonely world,
being an entrepreneur,
and when you're on your
own, and I understand
where that might have
triggered you from.
Every single door
that has "no entry" on it
has a door behind it.
And you found that door,
and you have a chance now
to change your life forever.
I can help you sell
this all over the world,
not just in the U. S.
I'm gonna make you an offer.
All Sharks are still in.
Raquel has an offer
on the table from Kevin
for her light‐up headgear
company, Roq Innovation.
But Peter also seems interested.
I think my offer
is far more wonderful
- than Mr. Wonderful's.
- Never.
Nobody gets a better deal
than Mr. Wonderful gets,
I can tell you that.
My offer is the $200,000
for 25% of your business.
It's a good offer.
You want to give up
equity? You don't have to.
I'm not a fan of
royalty into perpetuity.
See, she is smart.
Mm‐hmm. ‐
So what you've done
here is really quite amazing,
but I actually did
something with someone
that was a light in a
cap for barbecuing.
Mm.
And because I fe‐‐ I'm concerned
it would be a conflict with them
is the sole reason
why I am out on this.
But I love the
product, I love you,
and I'm so glad you're doing
so well. Thank you. Thank you.
Yeah, Raquel,
I wish it was something
where I could really
add a lot of value,
'cause clothing is
just not my thing.
So congratulations on
what you've accomplished,
but for those reasons, I'm out.
I most likely would
have given you an offer,
but I think the biggest
challenge I have
is that you didn't
get the patent
in a certain amount of time.
I think somebody else out
there is going to try to block you,
because the ‐‐ the gift and
curse of being on this stage
is now everybody
is gonna know you.
And now everybody's gonna
come out of the woodwork.
So I think you have a good offer
on the table, and I'm gonna step out.
I'm out.
However, you have two
valid offers on the table.
What are you gonna do?
But let me tell
you a little bit about me.
I've been sitting in a chair
like this for a long time,
and I have to say, I've
been blown away by you
because I also know what
it's like to go through difficulty.
I started my first business
at 16, things lit up for me,
and I was definitely
young and naive.
And by the time I was 28,
I lost everything ‐‐
literally everything.
But it was the best thing
that ever happened to me
because the lessons that
I learned from previous
I could now invest in over 50
different companies globally.
I think that this could be huge.
Thank you. I'm happy also to let
Mr. Wonderful into my deal.
Having a bit of equity is also
nice if we're gonna light this up.
But I like a little
cash flow, Peter.
I like a little royalty action.
But we can have a bit of
both if you want to share.
I would love to do that.
You could have
Mr. Wonderful and Mr. Global.
Yes. I've just made
that up, by the way.
Not bad. Yes,
I like ‐‐ I like it.
Okay, why not this deal?
I'll come in 50/50 with you,
and we get a royalty of a dollar
and it goes away after,
let's say, we get $600,000 back.
What about that?
So it's not perpetual.
You don't have to
worry about that.
Are you talking to me?
We're talking together.
And what equity could we
have? - "You talking to me?"
I'd stay with the 25%.
What about if we drop
to 20%, have 10% each?
Yeah, I'd do that.
What about that,
Raquel? You could have ‐‐
I've lost track. You could have
Mr. Wonderful and Mr. Global.
Yes. You could have
20% for $200,000.
Okay.
And we've got a
royalty, is that how you ‐‐
Yeah, royalty of a dollar.
Royalty of just a dollar.
Just so we get some cash
flow to get our capital back.
But I have a question.
Can you explain when you
have a royalty into perpetuity ‐‐
‐ No, it's not. We killed that.
He ‐‐ He changed that.
Oh, okay. I'm listening
again. What we said,
with Mr. Global
coming in, all right,
and he asked me to get rid
of the perpetual aspect of it.
Okay. So what happens
is we get the royalty until
we've recouped $600,000,
so three times on our money,
then it goes away forever
and we're your partners.
We just want some liquidity.
Deal.
Deal?
Congrats, Raquel.
Raquel, inspiring.
Inspiring. Thank you. Oh!
It's absolutely great.
Congratulations.
Thank you.
‐Congrats, Raquel.
‐Congratulations.
Thank you!
Thank you. Bye.
‐Thank you. ‐All right.
Yay! I have a deal!
It's been an incredibly
difficult journey getting here.
All this hard work has paid off.
Having two Sharks ‐‐
Mr. Wonderful and Peter ‐‐
it makes it all worthwhile
and I cannot
wait to get started.
business tycoon Peter Jones
returns to the Tank.
Peter is the most seasoned
investor on "Dragons' Den",
the U. K.'s version of
"Shark Tank",
with 18 seasons under his belt.
I've been sitting in a chair
like this for a long time,
and you have a chance now
to change your life forever.
You've basically knocked
somebody else off
and took over the category.
I would call us a knock‐off,
though.
"This is a lifesaver."
At least show us the respect
of knowing
where the value is
that we're gonna bring.
What you've done here
is quite amazing.
I'm gonna help you
sell these things.
You're gonna see the power
of what a Shark can do.
I feel like you're a little bit
all over the place.
You are a bit
of a crazy chicken.
I'm not a crazy chicken.
I'm really driven,
but I know
I can improve in some things.
I think that this could be huge.
What's your profit?
We're running a loss
at about $400,000.
Uh‐oh!
First in the Tank
is an innovation
to a common household tool.
Whoa! Oh!
Oh.
Are you all right?
Yeah. Oh, my gosh.
Oh.
Hey, no problem, John.
No problem. Looking good.
Thanks, Trev.
Oh, thank you.
Looking good.
Hello, Sharks.
I'm Trevor Lambert
from Champlin, Minnesota.
And I'm John Vadnais from
White Bear Lake, Minnesota.
And we're seeking $350,000
for 2.5% in our company.
Sharks, messes are everywhere.
Whether your kid throws half
their snack under the table
or your cat, Fluffy, trailing
litter out of the box,
or me
taking a spill on the Tank,
all of us deal
with messes every day.
But for quick cleanups, who
wants to lug out that bulky vacuum
or break their back bending over
chasing that last line
of dirt with a dustpan?
Come on, now! There's
got to be a better way!
Well, Sharks, there is.
Introducing VaBroom,
a smarter way to
clean your floors.
No more dustpans or
bulky vacuums required.
With VaBroom, just sweep
dirt and debris into a pile,
then tilt to the side.
The pressure‐activated nozzle
quickly and easily
cleans up any mess.
See? It's a vacuum.
It's a broom.
It's VaBroom!
It's quick and complete
with just one sweep.
All of that power, and
it's just over two pounds.
So it's easy to
maneuver and handle
in those hard‐to‐reach places.
And when done,
just empty the trash.
Clean and easy. Bombs away.
Oh.
Ha! Bombs away.
So, Sharks, let's not
sweep profits under the rug.
It's time to suck them
up with VaBroom.
It's a vacuum. It's a broom.
Now, Sharks, say it with us ‐‐
It's VaBroom!
Now, who would
like to give it a try?
I'd like to try it.
All right.
So I've got ‐‐ So
sweep it normally.
Just how you
normally would. Yeah.
So like into a
little line, right?
Yeah, or a pile.
Then you line it up.
Yeah, like this? Like that,
and it's pressure activated.
Oh, I see. So I just ‐‐
So when you gauge
the floor, it'll turn on.
Very cool. Yes.
All right. Now let's
drop the bomb.
Excellent.
Want to see that happen.
So VaBroom logo goes up. Yep.
Yeah, not bad.
So you all do have a sample,
and it's been shortened
so that you can test it.
Why don't I just buy a vacuum?
This really isn't intended to
replace an upright vacuum.
It's meant for quick cleanups,
and that's really the goal
that we're doing with
VaBroom as a brand.
So tell us about you.
I am married, 5 kids. 5 kids?
Yeah, a little bit
like "Brady Bunch".
That's the damn
reason for the valuation.
Right? And it's why
we do what we do.
But to go back a
ways, back in college,
I was starting to come up
with different product ideas.
Eventually, I was
being hired by others
to help them license products.
In 2010, I founded
a design firm,
and we have various industrial
designers and engineers on staff.
And so we do come up with
some of our own products,
but typically, we get hired
from various folks ‐‐ small‐
or medium‐sized companies ‐‐
and that's how we met John.
I'm a fourth‐generation plumber
and owner of my family company.
It's through that company
I'm constantly seeing problems,
and I'm making
solutions for them.
But that led to a lot of
products that I patented
and brought to market.
Trevor and his company actually
helped me launch one of my items,
and I saw VaBroom as
just a 3D‐printed prototype.
I knew this was the time that
Trevor was looking to pivot
to bring a product from
prototype to retail and beyond,
and when the opportunity
came for me to invest,
I knew this was the product.
So this must have
taken off already.
We have come with sales.
2.5% for something.
Give me the last 12 months
of sales and how you've done.
In the last 12 months, we've
done $3.1 million in sales.
‐Wow. That's so great. ‐Whoa!
We're projecting $5 million
conservatively this year.
‐Where are you
selling them? ‐Nice.
We sell direct to consumer,
and we just started retail.
We just delivered to Bed Bath &
Beyond for a two‐month promo.
In two weeks, they sold
out of all their online stock
that they had projected
for the entire promo.
So tell me about the cost
of the product. What margin?
So it's just over $17,
is the landed cost.
$37 wholesale.
And retails for $59.99.
What was the profit on
$3.1 million in dollars?
It was about 300‐and‐some
thousand dollars,
which we've rolled
right into inventory.
I don't see anything on the box
that says "patent
pending" or "patented."
We have international
patents pending.
We have a design patent
that's issued in the U. S.
But I'm wondering
how is it really different
from, like, a dustbuster
or something like that
where, you know, it's
small, it's handheld,
versus having to
have a whole boom?
Good question.
When we developed it,
we just hate the dustpan.
It's such a
frustrating pain point.
Nobody in the
history of everybody
can get everything
onto a dustpan.
Which is why we did this,
and people see it right away.
Now what else? What we're
getting on customer feedback
is we're hearing people
with mobility challenges
that are coming to
us, "This is a lifesaver.
I have a bad back and stick vac
is too heavy for me
and I can't bend over."
So this is now enabling them
to actually clean their floors.
How much have
you invested in this?
John invested $200,000.
I invested $200,000.
Good for you, John.
There was $100,000
on Kickstarter
and then it was really
self‐funded by the company.
This firm
that came up with this,
this industrial design firm ‐‐
Am I investing ‐‐ Am I
getting a piece of that?
Great question.
So what we've done
is we've shuffled
some of our employees
of the design firm
into this new entity.
Is there a contract
between what I'm investing in
and the design firm?
Correct. Right.
So there's a royalty
to the design firm, that's it.
A royalty? Did I hear royalty?
Yeah, yeah, a royalty. So you
would appreciate that.
So rather than have to, you
know, VaBroom to pay back
the design firm
for the investment,
we just decided it would be
much cleaner if it was just ‐‐
‐And how much is that royalty?
‐How much is that investment?
5%.
Trevor and John,
why isn't it altogether?
Why have you made
it so complicated?
Well, the issue
is, is that we have
a service‐based
design consultancy
and other products
that we're launching.
But why don't you
package that up?
Well, if there's interest,
we would entertain offers.
Well, otherwise it gets messy.
Guys, let me clear
the deck a little bit here.
You guys are a design
firm with inventors
that are really good at that.
You're also good marketers,
but you're trying to
segment things out
so that you kind of have
your cake and eat it, too, right?
You get to control
the design firm.
You get to segment your
product into this new company
that you only want
to give us 2.5% of.
It's not worth getting up
in the morning for 2.5%,
particularly when
your greatest skill set
is more available
to the design firm
and anything else you come
up with outside this company.
So for those reasons, I'm out.
Trevor and John,
I‐I have to say,
I thought your pitch
was really good.
You clearly solve an issue.
I'm not convinced that
the issue is that big.
And I hear your points
that you've raised,
particularly with people
that are actually finding it
difficult to bend down,
but I'm not sure you
need to reinvent the broom.
You've made it really
complicated today.
So for that reason, I'm out.
What was your initial
ask? 2.5% for how much?
$350,000.
2.5% is either, "I
just want exposure"
or "I'm greedy."
I'm not saying that's about you.
Just this is what goes
through our head, right?
It just doesn't feel
right, so I'm out.
I like the product, okay?
I like the fact
that it's selling.
Making a deal with you
is gonna be complicated.
You need my $350,000 for
inventory, I assume, right?
Correct. Yeah.
And growing direct to consumer.
We ‐‐ We think that a Shark
could help us with
our media efficiency.
Oh, definitely, definitely.
And I can also sell this for
you as Chef Wonderful on QVC
and sell a million of them. Yes.
That's not a problem.
But, I mean, I got to
be incentivized to do it
because there's only one
Chef Wonderful, not two.
Here's an offer for you.
Three Sharks are out,
but Kevin is interested
in Trevor and John's
innovative broom
company, VaBroom.
Here's an offer for you.
I'm known for being
creative with my offers.
I teach the Sharks
how to structure things.
So $350,000, I
give you that, um,
because you brought
up the word royalty ‐‐
I didn't. You did.
I like royalties because that's
how I can get my capital back.
So I'll give you the $350,000.
I want a $3 royalty
on the VaBroom
until I recoup $700,000.
So I'm not being
greedy about this, okay?
I just want some
return of capital.
But I want 2.5%
of the design firm
because I don't know what
else is coming down the pipe.
‐Whoa. ‐All right?
So equity ‐‐
instead of a venture debt deal
in a way, with the structure
that I get paid back.
That's actually not bad for you.
It's not a bad deal at all.
Listen, guys, I love
innovators and innovation
and, you know, it's a good idea,
but I'm not sure
you'll get your patent
and there's so much competition.
I'm sorry. I'm out.
Okay. Thank you,
Lori. Thanks, Lori.
So as usual, all roads
lead to Mr. Wonderful.
$350,000 for 2.5%, $3
royalty until you get $700,000,
and that's of the whole
design firm, yes? Yes.
You're only interested
if it's the design firm.
Absolutely.
I mean, look, I'm hopeful
that it's not just going ‐‐
We're going to
form a relationship.
I'm gonna help you
sell these things.
You're gonna see the
power of what a Shark can do.
And I want to get the next
product, the next product,
the next product,
the next product.
That's the whole idea.
Get him up a little.
5% for $700,000. Mm‐hmm.
Could ‐‐ Could we increase
your investment to $700,000
and get you to 5%?
No, this is a good snack
bracket for this particular deal.
I like this entry point.
We get this thing
going, it starts working.
We'll do many
other things together.
Ask anybody.
Look at the Bertello Pizza
guys, Boost Oxygen, everybody.
I've upped on everybody
because it's working.
I like things that work. Yeah.
Mr. Wonderful, you're
definitely a Shark
we wanted to do a deal with.
And you suck up well, too.
Um...
Yeah.
Mr. Wonderful,
you've got a deal.
Nice job, Kevin.
All right, Kev.
Let me tell you why I did this.
I buy a new broom
for Barbara every year
so she can fly around.
And I really like ‐‐ I
really like this model.
This is fantastic.
Thanks, guys. Looking forward
to doing business with you.
Yeah, it's gonna
be great. Thank you.
Thank you, Mr. Wonderful.
Appreciate it.
Congratulations,
guys. Well done.
All right, take
care. Bye‐bye. Hey.
Thanks, Sharks. Well done, guys.
Let's go!
Yeah, buddy.
All right.
And we got Mr. Wonderful.
That's who we came in for.
And we got it. Yeah, he's
gonna help us on media.
It was perfect. It's
gonna be great.
We kept the valuation.
Oh, absolutely, we
did. Yeah, fantastic.
Oh, great job. It'd
be great to have him
actually with the design firm.
Absolutely. He
will be so helpful
in way more than just VaBroom.
Oh, my God. Very exciting.
Oh, what a marathon.
What a ride, eh?
What a marathon.
Awesome. What a ride.
In Season
12, 19‐year‐old friends
Nick Hamburger and
Zack Schreier struck a deal
with Daniel Lubetzky
for their healthy,
egg‐white‐based
snack chips, Quevos.
You guys are gonna kill it.
Let's see
what they're up to now.
Zack and I were really
excited to bring Quevos
to "Shark Tank"
because we were looking
for an experienced partner
who knew the food industry,
and we couldn't have
been more excited
to partner with Daniel,
who's a giant in our industry,
and has been helping us
every step along the way.
We've
expanded our retail footprint
from 400 stores to
over 1,500 stores,
including GNC, Vitamin
Shoppe, and Hy‐Vee.
Whole Foods has become
by far our strongest retailer.
We're now doing over three
times the sales that we used to do,
and we're maintaining that
eight months post the show.
In our two years of
business before "Shark Tank",
we did $1.3 million in sales.
Now, just eight months
since "Shark Tank",
our lifetime sales
are $3.2 million.
Brands really reflect
their founder's personality,
so it makes sense that the
packaging be youthful and fun.
What's fun about
working with Nick and Zack
is that I have like 20‐plus
years of painful mistakes,
and now I'm able to teach
them how to overcome those
and avoid those mistakes
and just grow faster,
better, cleaner,
and they listen,
and this is very, very pleasant
when you have
entrepreneurs that want to learn
and that want to
execute on those lessons.
I know you've been eager
to try to raise more money
to keep up with your momentum,
and I have a little bit of
a surprise for you here.
We've decided to go ahead
and invest another
$1.3 million in Quevos.
We're very, very
proud of you guys.
We're very excited
to help you guys grow.
That's awesome. That's crazy.
Thank you, Daniel.
When people our
age or younger ask us
about starting businesses,
I always tell them that good
businesses are really simple ‐‐
rooted in a customer need
and meeting that need.
And we can tell you, after
years of putting the work in,
there definitely is no age
limit to entrepreneurship.
If you're in high
school or college,
you can be as
successful as anyone older
if you put in that work.
"Shark Tank" changed our lives,
and it shows that
you can be any age
and create and scale
a successful company.
Next up is a healthier version
of a favorite indulgence.
Hi, Sharks. My name is
Hannah. And I'm Mollie.
We're best friends from
Los Angeles, California,
and we're seeking $600,000
for 7.5% equity in
our company... Whoo!
Ooh! ...Must Love.
Look at this table of
ingredients over here.
They're cheap oils
like canola and palm,
and artificial
preservatives and flavors.
Not to mention
monoglycerides, diglycerides ‐‐
things I don't even
want to try‐glycerides,
and you won't believe what
these ingredients are for.
Medicine? Paint?
I got it. Cosmetics?
No, it's ice cream.
Gross, right?
Ice creams marketed
as better for you
often have unwanted ingredients,
even ingredients made
from petroleum, wood pulp,
and even beetles.
Gross, right?
That's why we created a line
of plant‐based indulgent treats
made with simple ingredients.
Must Love.
But Must Love is more
than just dairy‐free ice cream.
It's simply good‐for‐you fun
that comes in pints
like Peanut Butter Swirl.
Or Mollie's favorite,
Cashew Cookie.
Or Hannah's personal
favorite, Snickerdoodle Dough.
And novelty bars like
Dipped Crunchy Peanut Swirl.
Or Dipped Banilla. Which tastes
just like a chocolate frozen banana.
But how do we do it? We start
with a simple base of bananas or oats
and sweeten with real fruit,
and from there, we add
in all the crave‐worthy stuff
that you really want
in your nice cream.
But, Sharks, we
didn't stop there.
This summer, we
launched Sprinkles!
Whoa!
They're plant‐based, non‐GMO,
and go perfectly
with our ice cream.
Even the vibrant
colors come from plants.
Must Love is bringing
plant‐based indulgence
to your family's freezer,
pantry, and more.
So, Sharks, who's
ready to fall in love with...
Must Love?
So please dig into your samples,
and I'd love to tell you
about what you have.
From our banana
line, we brought you
our signature
Dipped Banilla bars
and also our Cashew
Cookie pint, which is ‐‐
What about the chocolate
around it? This is great ‐‐ Banilla.
Yes, they're dipped in
chocolate, but it's vegan.
There's no dairy. It's
vegan. There's no dairy.
‐This is great. ‐It's very good.
Thank you. Very banana‐y.
Yes, you "must love" bananas.
I thought it was
gonna taste terrible.
It's pretty good.
Kevin, from you,
that means a lot.
Thank you. Thank you.
I just want to say
I'm not vegan at all,
and I've eaten so
much of this, I feel sick.
This is really,
really scrumptious.
Thank you so much.
So tell us about you.
Yes, thank you. So
we're actually best friends
who met in
undergrad at Berkeley.
We've been best
friends for 15 years.
Both our parents
immigrated here from Korea
and started their
own businesses,
really came here for
their American dream.
And after we both got our
MBAs separately, I was at MIT.
You're an MBA from MIT? Yes.
What was your
specialty or focus?
I focused on operations.
And I focused on
marketing. Geez.
So you're asking
for $600,000, 7.5%.
That's a pretty
punchy valuation.
So I'm assuming now this
has sold like hot bananas.
We launched in 2017.
We had $35,000 in sales,
and since then, we've
grown double year‐over‐year.
Year to date, we've
made $1 million.
Wow! We're gonna end this year
$1.7 million in revenue,
and that's a very
conservative number.
And what's your profit?
We're running a loss
at about $400,000.
‐Uh‐oh! ‐Wow.
Okay, so why do you feel that you're
running a loss? So why the valuation?
So the food industry,
I'm sure you're all aware,
you know, it's a really
cash‐intensive business.
You know, when you
get into a grocery store,
you need to first
pay for that marketing
to be able to be there and
to reach those consumers.
'Cause you're going
after the frozen section.
Hard to displace other products.
Yes, we've fought tooth
and nail for every position
we've been in, and the frozen
space is very competitive.
Where the growth has been
is dairy‐free and novelties,
so that's really our sweet
spot of where we're heading.
And we have kept our shelf space
in all the new doors. What stores
are you in? We don't even know.
Tell us what stores
you're in, what does it cost,
and what does it
cost for you to make it.
We're available nationally
at Sprouts Farmers Market
and as well as in certain
regions of Whole Foods.
This year we launched
in Costco. Costco.
We tested with them last year...
And it was wildly successful.
And blew them out of the water.
They retail for $5.99
on shelf typically.
And our cost of goods is $1.80.
So how much money
have you raised, if any,
and from who?
We both invested
$200,000 of our own money
right off the bat.
Oh, good for you.
Okay, you're serious.
We also raised in the
last 5 years $1.4 million...
‐Ooh. ‐Wow.
From friends and
family, and then angels
and institutional. What valuation
was the $1.4 million raised at?
We're actually in a
seed round right now.
Which is why we're
here. We're here.
We're raising at an
$8 million valuation,
so this is part of the seed round
right now. - Wait, okay, guys,
how could you come
on "Shark Tank"...
You've watched the
show, I presume?
Yes. Right.
Knowing every single deal
in the history of "Shark Tank"
has been negotiated?
Do you not think you're
gonna have to negotiate?
Yeah, we're ready to negotiate,
and we've spoke
with the other investors
who have participated
in the seed round,
and they're very excited for you
guys to be part of the seed round.
They're so excited that
they gave us the exact offer
that everybody
else is gonna get?
Well, we're here
to get to know you.
You're here to get to know us.
No, you've known us for 13
years. You already know us.
You know, to come to
us and offer us the same
that you're offering
the streets ‐‐
I mean, at least show
us the respect of knowing
where the value is
that we're gonna bring.
I'm out.
Thank you. We really
appreciate the feedback.
You know, there's two problems.
You're not worth
8 million bucks.
You're also asking for $600,000.
Part of your strategy
on "Shark Tank",
you have to decide how
much you're asking for.
Yes. Yes. You're in
the top quartile of ask.
It's too much for me. I'm out.
I just want to say, I've
invested in a business
like this, actually
on "Dragons' Den".
It was exactly as you've
got here, in essence.
So it was frozen dessert.
What happened to that business?
Whilst the sales were going
up, but sadly, the margin reduced.
Because as we got into Whole
Foods, Costco, and others
and all the supermarkets,
they wanted to have
the product 2‐for‐1.
They want to have the specials.
They want to have the end cap.
Every single quarter,
another marketing initiative.
When the brand then
started to actually go down,
we had to invest more.
We ended up with less
than 3% or 4% net margin
every single year.
What ended up happening
was that the manufacturer was
making more money than we were.
Mm‐hmm.
And I got out. I almost ‐‐
I just got my money back.
So just because of that,
of my experience, I'm out.
I'm sorry.
Guys, the problem I have ‐‐
Look, the products are good,
they're just not
differentiated enough.
I get that they're clean, natural,
wholesome ingredients. Yes.
But there are multiple products,
and the number of products
that meet that criteria
and check that box is
growing very quickly.
There's not that one trigger
that makes someone say,
"Okay, I have to try this."
And for that reason, I'm out.
Thank you. Honestly, I
think... You're welcome.
We've captured new customers
with very small marketing ‐‐
Guys, the only Shark
that matters now is Lori.
Well, listen, let me tell
you what I think, okay?
Because I really know
this space, actually...
Yes. Yes... because I did a
deal a year ago with Frozen Farmer,
and we created
what we call Frobert,
which was a combination
of sorbet and ice cream.
You know, everybody
up here at the time said,
"Oh, my God, brutal space.
You're never gonna make it."
You remember
that? And I was right.
And It was ‐‐ No,
actually, he was wrong.
It was a hard road,
but we're gonna hit $20
million in sales this year.
But you are so competitive
with my Frozen Farmer
and what we're already doing
that I would not
be being fair to her
if I invested in
another ice cream line.
And so for that reason, I'm out.
We so appreciate that. Thank
you so much, Lori. Thank you.
Thank you, guys.
Good luck, guys.
Good luck. Thank you.
For 200K, it's a flier.
I would have tried it.
For 2.5%? No, I would
have asked for 15%.
Yeah, and they would
have laughed at you.
No, they would have said,
"Mr. Wonderful,
I'll do the deal."
And I'd be up there
right now, just like that.
What alternate universe
would this happen in?
There's only one Mr. Wonderful.
Thank God for that.
Next in the Tank
is a trendy fashion
statement for men.
Hi, Sharks, my
name's Justin Clark,
and I'm from Santa
Clarita, California.
And I'm Wyatt Thompson, also
from Santa Clarita, California.
Today we're seeking
$200,000 for 5% of our company.
Sharks, men's clothing
today is so boring,
all of us walking around in
the same shirts and pants
and pants and shirts. Ugh. Pth!
That's why we
created Romper Jack.
Whoo!
Romper Jack is a men's
apparel brand, built for guys
that don't have a lot
of options to stand out,
look good, and feel confident.
Sharks, as you can see, we
got something for everybody.
Like our pride romper,
or even our flannel romper.
Our rompers are
fitted, fashion‐forward,
and made from high‐quality
premium materials.
I mean, Sharks. Come on.
Doesn't Wy look pretty cool
in his floral passion romper?
Thanks, Justin. You're
looking pretty good
in our navy chateau romper.
You know, it's more
than just a button‐up shirt
sewn into shorts, it's
a self‐esteem machine.
So, whether you're
looking for a jumpsuit
for your next wedding party,
overalls for a Sunday picnic,
rompers for a music festival,
or just some fitted shorts
for your next brunch outing,
Romper Jack has
you stylishly covered,
at least from here to here.
So, Sharks, we invite
you to romp around with us!
Who's ready to be a part
of this amazing,
profitable romper‐tunity?
Guys, why don't we just jump
‐‐ I mean, $200,000 for 5%?
I mean, what the French toast?
What's up with this?
What are your sales?
In the last four years,
we've done $3.7
million in sales.
‐Whoa. ‐Wow.
What about the last 12 months?
$1.1 million.
And where are you selling
these? How are you selling these?
So we currently ‐‐ we sell
all online, all off our website.
I mean, this got to be
only for skinny guys,
'cause I wear this, I'ma look
like I'm in my third trimester.
Who's ‐‐ Who's buying this?
Who's ‐‐ Who's your consumer?
Who's buying this?
So most of our consumer
is the LGBTQ market.
Okay. Right now, mostly gay men
between the ages of 25 to 45
absolutely love our product.
And then we also have a consumer
that, like, is, like, the
fraternity college market.
Do you have any competition?
Yes, there is multiple companies
that started in this space,
but we totally destroyed
the ‐‐ the space.
So the story is we found a
Kickstarter campaign online
for the male romper.
Now here it was May
and they weren't delivering
the product until August,
and we thought "Man,
romper season's over by then."
So there's a season?
Romper season. I
mean, we were thinking
this was more of a summer item.
So we saw that
Kickstarter campaign
and we pulled some
money together.
We actually beat the
Kickstarter campaign to market,
becoming the first company
selling these in North America.
You basically knocked
somebody else off
and took over the
category. That's your claim.
I wouldn't call us a
knock‐off, though,
because we did it better.
Lori, looking at these two
guys now in their romper outfits,
do you find them attractive
from a female perspective?
Oh. Okay, I've got to be
really, you know
let's put it this way.
I feel that they are
very nice‐looking men.
I feel that the romper,
I don't know if I like
the fact that the
shorts match the top.
I kind of get the niche thing
with the ‐‐ 'cause I'm already
in this space with Rounderbum.
Why are you thinking Rounderbum,
which is underwear
that enhances?
My Rounderbum
community is their community.
Oh, okay. And when you
get a hit in the community,
you sell a lot of
stuff. Yeah, exactly.
Because it's word of mouth,
your customer
acquisition cost goes down.
What is the return rate?
When people get their
romper, they stick it on.
Yeah, it's about 9%.
What do you sell them for?
This product that
I'm wearing right now
sells for about $79.
This one's $69.
Why is this worth
4 million bucks?
That's a great question.
So if you ‐‐ It always is.
So, like, 2017, we did $200,000.
2018, we did $580,000.
2019, $980,000.
During COVID, the
height of COVID 2020,
we did $1.1 million.
Right now, we're on track to
do $1.5 million this year alone.
And also, it's loungewear,
right? On that $1.5 million,
you gonna make
any free cash flow?
Yes, we're actually
cash flow positive now.
Last year, we did
$150,000 in profit.
Good for you.
And paying yourselves? Yeah.
Okay. And then this
year on the $1.5 million,
what are you gonna
make, do you think?
I would say about
$300,000, $350,000.
Really?
Is it just the two of you
running the business?
Wyatt and I run, like,
most of the business,
and then I hired
stay‐at‐home moms to do all,
like, the customer service
and returns and
things like that.
Guys, let me clear
the deck a little bit here.
Clothing is just not my thing,
and for that reason, I'm out.
Thank you, Mark.
You remind me of myself,
when I found a community
that felt like they had
something that was theirs.
However, I got
to see myself in it,
and, um, it's just
not one of my styles.
I mean, I think I would
look like a yodel in that thing.
I got to be able to wear it
and feel like I'm part of it,
you know, so that's where
I'm having the ‐‐ the challenge.
So I'm out.
Thank you, Daymond. Thank you.
Guys, I'll tell you where I am.
I think you're gonna really,
really struggle to grow this.
Even ‐‐ I don't think that's
enough money, either,
if you want this to be big.
You can always put
more money in if you ‐‐
I know you can, but then I think
then I'm gonna take a
large slice of your company,
and that's not what
you're gonna want.
You're gonna resent me.
So I'm really sorry, guys,
but for that reason, I'm out.
You are doing well, and
you're obviously smart ‐‐
Just to stop you
right second. Yes?
We forgot to tell you,
we do have Romper Jill.
Where is Romper Jill?
Romper Jill is
not here right now.
We put a pause
on it during COVID,
but we're just now
bringing it back to life.
And Romper Jill is kind of a
matching style to Romper Jack.
So if you have Jack and Jill,
you know, you take
your best girlfriend out
and you got your
guy friend and bada‐‐
Well, you want to
know something?
I think couples would
like that, having matching.
I don't think that this is
the right business for me.
I'm sorry. I'm out.
Thank you.
And then there was one.
All roads lead
back to Mr. Wonderful.
It's one of those
on‐the‐fence deals for me.
Sales are validation that
you've built a niche here
with this product, and I
know the community already
through Rounderbum.
I‐I just ‐‐ I look at the,
you know, $200,000, 5% ‐‐
I could squeeze
your heads, I guess,
on taking a much bigger chunk.
Normally I know
when I hate a deal,
but I don't hate this one.
So we've never been able
to have inventory in stock.
We've actually only been
selling on back order and preorder
because we can't
keep up with the sales.
People are waiting two months
to receive our products. Yeah.
Guys, there's a lot of
pitches coming down the hall.
I got to fall in
love right away.
I like it, I don't love it,
but I'm impressed
with what you've built.
I'm just not gonna
do it. I'm out.
Thank you, guys, so
much for your time.
Thank you. Really appreciate it.
Good luck, guys.
Good luck, guys.
‐Thank you. ‐Oh, man.
That's all right. We're
still gonna ‐‐ Yeah. Yeah.
We're gonna romp all
the way down to the bank.
It's gonna grow. It's gonna
grow. It's gonna grow.
That's right. They'll miss out.
Yeah. I think, um, you know,
they made a bad decision
today, not investing in it.
I think this is just gonna
continue to blow up.
Our audience loves us,
our customers love us,
and we're gonna take
this thing to the next level.
Next up is a
stylish and functional way
to bring more
light into your life.
Hi, Sharks. My name
is Raquel Graham,
and I'm coming to you
from Chicago, Illinois.
I'm seeking $200,000
for a 15% stake
in my company, Roq Innovation.
Sharks, picture this ‐‐
You're walking
your dog at night,
and it's time for you to
pick up after your pup.
So you pull out your flashlight,
but then you have to hold
the flashlight and the bag
and your dog's leash.
Now, this is quite
a juggling act.
Or maybe you're exercising
or changing a tire at night.
There are so many times
where you need light to see
and your hands free.
Well, Sharks, allow
me to show you the light.
Feast your eyes on Headlightz.
Headlightz is a hat with a
removable and rechargeable
LED light that lasts for up
to 8 hours on one charge.
The light can be charged
in any USB port or computer.
The hat is unisex,
one size fits most,
and machine washable.
Headlightz provides
hands‐free lighting
so you can do so many things
and look great at the same time.
So, Sharks, how about
we see the hat in action?
Let me hear you say,
"Show me the light."
Show me the light.
Okay, Sharks.
So now that I've
shown you the light,
who is gonna show me some money?
So, I have samples for you guys.
Whoo. That is bright.
Yes, it's br‐‐ That is bright.
Yeah. It's 140 lumens.
I don't know if that means
anything to you guys.
It does.
That's a nice way to wear it.
What? Because you
have it cocked to the side.
It's the only way to wear it.
Oh, okay.
I think it's a hip look. Greiner:
You're like, "This is not okay."
I start the trends around here. You
know what I'm saying? I know. I see.
Obviously.
How do these things work?
Peter's about to
knock over a 7‐Eleven.
Where are you selling them?
I'm ‐‐ I'm on Home
Shopping Network.
You are? Is that your
only mode of selling,
and what have you sold there?
Okay. The lifetime
company is $2.4 million.
Whoa! Good for you.
That's still impressive.
For the hats.
For Headlightz, I did
$1.1 million last year.
‐$1.1 million? That's
fabulous. ‐That is great.
And what are you gonna do
this year on just Headlightz?
This year? I'm
projecting $1.7 million.
Wow. What's your
average selling price?
Oh, I sell at $19.99.
Really?
It's just on the
shopping channel?
Are you selling in
other ‐‐ Oh, no, no.
I'm selling it on my website.
I also ‐‐ I've made the O List.
I'm on "Good Morning America",
- "The View" often.
- You did?
Oh, dang. You're a
marketing machine.
You're doing all this yourself?
Me. Wow.
- This is the company.
- That's impressive.
What's your typical order size?
Oh, okay. Typical
‐‐ Well, it's grown.
Nothing under $25,000.
‐Dang. ‐Really?
Never. You're ordering
$25,000 a time, split amongst ‐‐
Well, I'll do just
$40,000 on HSN.
Is that a full container or ‐‐
$40,000 on HSN.
What are you getting,
a half container in?
A half container? ‐Have
you ever sold on QVC?
You guys! Ha!
‐Boom, boom, boom.
‐We're really warming up.
Half a container? Oh, you're
getting a half container?
You're bringing a half
container in or full container?
It depends, it's relative to
when I can place the order,
how quickly 'cause
I change it. Got it.
I mean, I'm not
sure it's a company.
It's kind of like an
‐‐ I can ‐‐ Oh, it is.
Wait, wait, wait. My
concern is this. Okay.
I give you $200,000 for 15%,
but then you get run over by
a bus in Chicago in the winter.
What happens?
Don't worry. Every
entrepreneur that he talks to,
he talks about getting
run over by a bus.
Don't feel bad. I only ask that
of a single person because ‐‐
They why not just ask her if
she's got key man insurance?
Do you have key man insurance?
I have n‐‐ That means if
you get run over by a bus,
I get paid, big royalty.
Do you have a
patent? I have a patent pending.
So how long has it been pending?
It's been pending since 2018.
Why is it pending
so long? I don't know.
Now, I have made ‐‐ Did you
ever get office actions back?
Um... no.
Well, yes, I did during
‐‐ right before COVID,
and then it got delayed. Raquel.
Raquel, I can't ‐‐ I'll
sit here and be honest.
I feel like you're a little
bit all over the place.
You're a great designer,
you're a great endorser,
but from a business perspective,
there's a real disconnect.
And I think what you really need
is a supercharged entrepreneur
to make this happen for you.
No. No.
Not at all. Why?
No, and that's wrong. No.
No, I‐I don't think so.
Because all of the things ‐‐
This is my point. All of the
things you're talking about ‐‐
patent, you don't
really know the detail.
You've not chased it up.
She's the one running the
company. And she's still selling.
She's still selling
and making money.
She's an individual
entrepreneur.
Yeah, but she doesn't ‐‐ Well,
while these Sharks are arguing,
I've got good news
for you, Raquel.
I'm gonna make
you an offer, okay?
Thank you. The
noise on the sides,
you don't have to listen.
You can listen to my offer.
Okay. Very s‐‐ You are
a bit of a crazy chicken.
Just ‐‐ let's lay it
out there, okay?
I get it, but I like
crazy chickens.
Why am I a crazy
chicken? I don't get it.
Why is he calling
you a crazy chicken?
Wait a second, Lori.
Let me give her my offer.
And I have a story.
I say it in a nice way.
I want to hear your offer, though.
Crazy chicken means energy.
Oh, okay. He thinks
that's flattering.
Well, that's good.
Crazy chicken energy.
Okay. Okay, here's the deal.
I'll give you the $200,000. I
don't want any equity at all.
I'm gonna take 2
bucks a hat as a royalty
until I get my $200,000 back,
then it drops down to a dollar.
A dollar forever?
Of course. As in ever and ever?
I have no equity. So?
Of course I get
a dollar. Forever.
Yes, even after
she's dead. Okay.
Can I say something?
Because this crazy
chicken thing is ‐‐
I like the crazy chicken.
No, I don't like the crazy
chicken. But ‐‐ But let me just say ‐‐
Go ahead, Raquel. Let
me just say something.
In 2016, I‐I got
the call from HSN.
Let's say that was March.
By the summer, I
had become really ill.
And when I say really ill,
I was misdiagnosed
for three months.
It turn ‐‐ They told
me I had pneumonia.
It wasn't pneumonia. It
was fungal pneumonia.
And I had been
misdiagnosed for so long,
it leaked into my, uh ‐‐
my leg and I couldn't walk.
Wow. So I immediately
went into quarantine
'cause they didn't know if
it was Ebola or whatever,
and they had to
treat it aggressively.
In two days, I
had a full stroke,
I had lung failure twice,
and, um... Wow.
And I was on a ventilator
for almost a month.
And I went in August 26th,
came out the end of September,
and I launched on
HSN in November.
So I'm not
a crazy chicken. That's right.
I'm really driven...
That's right... and I
wasn't gonna leave my kids.
So I do a lot by myself,
but I know I can
improve in some things.
You championed
over adversity. That's good.
‐Good for you. ‐Good for you.
And frankly, I understand
why that bothered you,
and frankly, it would have
bothered me, too, so...
I'm not here
to speak up for Kevin,
but, you know,
when he says that,
he's saying it in
an affectionate way.
Raquel, that's a journey
you just took me on.
It's quite a lonely world,
being an entrepreneur,
and when you're on your
own, and I understand
where that might have
triggered you from.
Every single door
that has "no entry" on it
has a door behind it.
And you found that door,
and you have a chance now
to change your life forever.
I can help you sell
this all over the world,
not just in the U. S.
I'm gonna make you an offer.
All Sharks are still in.
Raquel has an offer
on the table from Kevin
for her light‐up headgear
company, Roq Innovation.
But Peter also seems interested.
I think my offer
is far more wonderful
- than Mr. Wonderful's.
- Never.
Nobody gets a better deal
than Mr. Wonderful gets,
I can tell you that.
My offer is the $200,000
for 25% of your business.
It's a good offer.
You want to give up
equity? You don't have to.
I'm not a fan of
royalty into perpetuity.
See, she is smart.
Mm‐hmm. ‐
So what you've done
here is really quite amazing,
but I actually did
something with someone
that was a light in a
cap for barbecuing.
Mm.
And because I fe‐‐ I'm concerned
it would be a conflict with them
is the sole reason
why I am out on this.
But I love the
product, I love you,
and I'm so glad you're doing
so well. Thank you. Thank you.
Yeah, Raquel,
I wish it was something
where I could really
add a lot of value,
'cause clothing is
just not my thing.
So congratulations on
what you've accomplished,
but for those reasons, I'm out.
I most likely would
have given you an offer,
but I think the biggest
challenge I have
is that you didn't
get the patent
in a certain amount of time.
I think somebody else out
there is going to try to block you,
because the ‐‐ the gift and
curse of being on this stage
is now everybody
is gonna know you.
And now everybody's gonna
come out of the woodwork.
So I think you have a good offer
on the table, and I'm gonna step out.
I'm out.
However, you have two
valid offers on the table.
What are you gonna do?
But let me tell
you a little bit about me.
I've been sitting in a chair
like this for a long time,
and I have to say, I've
been blown away by you
because I also know what
it's like to go through difficulty.
I started my first business
at 16, things lit up for me,
and I was definitely
young and naive.
And by the time I was 28,
I lost everything ‐‐
literally everything.
But it was the best thing
that ever happened to me
because the lessons that
I learned from previous
I could now invest in over 50
different companies globally.
I think that this could be huge.
Thank you. I'm happy also to let
Mr. Wonderful into my deal.
Having a bit of equity is also
nice if we're gonna light this up.
But I like a little
cash flow, Peter.
I like a little royalty action.
But we can have a bit of
both if you want to share.
I would love to do that.
You could have
Mr. Wonderful and Mr. Global.
Yes. I've just made
that up, by the way.
Not bad. Yes,
I like ‐‐ I like it.
Okay, why not this deal?
I'll come in 50/50 with you,
and we get a royalty of a dollar
and it goes away after,
let's say, we get $600,000 back.
What about that?
So it's not perpetual.
You don't have to
worry about that.
Are you talking to me?
We're talking together.
And what equity could we
have? - "You talking to me?"
I'd stay with the 25%.
What about if we drop
to 20%, have 10% each?
Yeah, I'd do that.
What about that,
Raquel? You could have ‐‐
I've lost track. You could have
Mr. Wonderful and Mr. Global.
Yes. You could have
20% for $200,000.
Okay.
And we've got a
royalty, is that how you ‐‐
Yeah, royalty of a dollar.
Royalty of just a dollar.
Just so we get some cash
flow to get our capital back.
But I have a question.
Can you explain when you
have a royalty into perpetuity ‐‐
‐ No, it's not. We killed that.
He ‐‐ He changed that.
Oh, okay. I'm listening
again. What we said,
with Mr. Global
coming in, all right,
and he asked me to get rid
of the perpetual aspect of it.
Okay. So what happens
is we get the royalty until
we've recouped $600,000,
so three times on our money,
then it goes away forever
and we're your partners.
We just want some liquidity.
Deal.
Deal?
Congrats, Raquel.
Raquel, inspiring.
Inspiring. Thank you. Oh!
It's absolutely great.
Congratulations.
Thank you.
‐Congrats, Raquel.
‐Congratulations.
Thank you!
Thank you. Bye.
‐Thank you. ‐All right.
Yay! I have a deal!
It's been an incredibly
difficult journey getting here.
All this hard work has paid off.
Having two Sharks ‐‐
Mr. Wonderful and Peter ‐‐
it makes it all worthwhile
and I cannot
wait to get started.