Shark Tank (2009–…): Season 14, Episode 1 - Episode #14.1 - full transcript

For the first time ever,

coming to you live in
front of a studio audience,

it's "Shark Tank Live"

Let's welcome our six Sharks.

Cybersecurity tech
titan Robert Herjavec.

Brand-builder extraordinaire

and inventor of
over 1,000 products,

Lori Greiner.

Purveyor of the
cold, hard truth,

Mr. Wonderful
himself, Kevin O'Leary.

Real-estate trailblazer



and marketing genius
Barbara Corcoran.

Founder of iconic
fashion brand FUBU,

"The People's
Shark," Daymond John.

Renowned tech entrepreneur

and owner of the Dallas
Mavericks, Mark Cuban.

Let's go! I can't hear you!

Let's go! Yeah!

The unprecedented live
"Shark Tank" event starts now!

First in the Tank are
entrepreneurs on a mission

to expose a dirty little secret
about the fashion industry.

Let's learn a little bit
about the entrepreneurs.

I'm Stacy. I'm Jeff.

And we're from Los
Angeles, California.

I started working in
fashion 10 years ago



and really saw the amount
of waste that is used in fashion

as well as the amount of
plastic that's used in apparel.

It ends up sitting in
landfill for over 200 years,

breaking down into
small microplastic pieces

that pollute the Earth.

That would be the
campaign tag line.

My career started
off in advertising,

working for big consumer
packaged-goods brands.

When I met Stacy,

I really had an inch to do
something entrepreneurial.

He brought such an
amazing background

that I decided to
bring him on board

and help build the brand.

Hi.

11 weeks ago, we added a
new member to our family.

When you're holding your son

and you're looking
into his eyes,

you realize it's
not only important

to create a successful business

because we have
another mouth to feed

but to create a more
sustainable future for him

and future generations.

I got to go to the post office.

Getting a deal with one
of the Sharks is so vital.

We need the
capital and expertise

to help bring our
business to the next level,

and also change the world.

Hi, Sharks. I'm Stacy.

And I'm Jeff,
husband of the boss.

We're here seeking $200,000

in exchange for 5% equity
in our company. - Oh!

Sharks, do you want to know a
dirty little secret? - Yes.

In the U. S., millions
of pounds of underwear

ends up in landfill
every single day.

And to top it off, most
of our clothes are made

with plastic-based fabrics.

That's not only
bad for our bodies.

But bad for the Earth.

So what if I told you
we could turn this...

Into this. Sharks...

- Wow!
- Ta-da!

Wow!

But there's more! What?!

Sharks, say hello to Kent...

The world's first verified
compostable underwear.

Wow. That's
100% plastic-free...

And 100% organic, so
when their time is up,

you can literally...

Plant your
pants! - Wow.

Just post them in the compost,

and, in only 90 days, they
turn into nutrient-rich soil.

And best of all, our
trade-secret product design

actually makes them stronger

and softer than
conventional underwear.

So, Sharks, who's
ready to revolutionize

the apparel industry
as we know it

and help us turn fashion...

Into fertilizer?

Wow.

Alright, alright, so... so...

And now, Sharks, in front of you

are your own Kent basics.
That's what I was about to ask.

And believe it or not,
the soil in your flowerpot

is actually
Kent-composted undies.

From the underwear?
In here. Yes.

So, they feel nice.
They feel like cotton underwear.

- Very stretchy.
- They do.

- They feel very good.
- Very comfortable.

They actually feel a little bit
thicker than what I expected.

- Yeah.
- It's live TV,

but we were going to see, like,

can we ask you
guys to try them on,

- or is that too risqué?
- I'll try them.

Or...

No! Barbara! No!

You know what?

I think maybe we can.

Oh, yeah. Looking good.

Looking good.

Kev, look at that six-pack.

I like you guys.
That looks nothing like these guys.

Alright, so, let me ask
you, Jeff and Stacy,

you know, you're
a part of history.

This is the first
"Shark Tank Live" ever,

and you are the first.

So are you nervous?

Um, nervous, excited, just
thrilled and honored to be here.

Yeah, honored.
Thank you. Yeah.

Thank you so much.

So, how did you
come up with this idea?

Well, I spent about 10
years in the fashion industry

and noticed that even
sustainable fashion brands

combated two big problems.

One was landfill waste at
the end of product life cycle.

And two was microplastics.

So despite using
responsible materials...

Spandex, nylon,
elastane, polyester...

Still heavily used in
fashion, particular underwear,

and I myself couldn't find
100% natural underwear,

- nor could my friends.
- Wow.

So how is
Kent fully compostable,

and how is it different from
regular cotton underwear?

Yeah.

Well, we have a trade-secret
product design, as we mentioned.

So organic pima cotton
is a big majority of that,

but to give it its
elastic qualities,

that's the trade secret.

Compost, as maybe not
everyone in America knows,

it's a man-made process, right?

So it's not just, like,
throw it in the dirt, right?

Compost is something
you have to kind of manage

and deal with in your
backyard, usually.

But basically, at
the end of life, you...

Hopefully a long life.

This is a very high-quality
product, so it's not...

A lot of times people think
compostable means disposable.

That's a misperception. Yeah.

So after a long life, you
will put it in your compost,

give it a few turns,

and in about 90
days it'll break down.

In here? In
there. That is our compost.

What does it cost to make
it, and what do you sell it for?

One pair.

So one pair we sell for $20
to $24 depending if you buy...

Hello. Whoa.

That's a little high.

Is that a lot for
underwear? - Yes.

Yeah, that's a lot. For these
kind of underwear? Yeah.

It's slightly premium,
but I will say

it's all made right
here in America...

That's good.
And it's $8.07.

$8.07. So...

They are premium,
but what about sales?

What's your aggregate
sales year-to-date?

So, year-to-date, we're at
$99,000. - That's all? Wow.

First year, two years
ago, we did $30,000.

Second year, we did 120K, and...

So did you value this
company at $4 million? Yes.

Well, we're on pace to do
$500,000 this year. Yes or no?

They did.

Stacy, how do you sell
this? How do you sell it?

85% is D2C e-commerce,

15% is through one
wholesale partner,

and we're launching
with another major retailer

- later this year with Nordstrom.
- Guys, question for you.

I have another company that's
compostable, Earth Brands.

They make cups,
right? - Yeah.

And you can't just throw
it away, like you said.

What happens if you
don't put it into compost?

So this is a great question.

We know that everyone in America

doesn't have
access to a compost.

So we created the
fashion industry's

first compost take-back program

so you can send your kind of
end-of-life products back to us.

Who's going to send their
old underwear back to...

- Right?
- People are doing it.

If you only have
$99,000 in sales,

how many people have
sent their underwear back?

Not many because it's
lasting a long... - Why?

Because it's
lasting a long time.

We've only been in business only two years.
Doesn't that kind of defeat the purpose, though?

We're only two
years old, though,

so most people
haven't, you know,

worn out their underwear
yet. No, I get that.

Look, the mission
is great, right?

What you're trying
to do is amazing.

We need more of it.

Every single product
needs to be like this, right?

Every single clothing
product in particular.

But the challenge is,
when you're that small, right,

you have to
promote all the things

that have to take place

in order for the
composting to work, right?

I think that's true, Mark,

but I also think, like,
the take-back program

is so that we can make
good, you know, to say,

"Hey, if you live in a city,
you don't have a backyard,"

but anyone that has a backyard,
anyone that lives on a farm...

Jeff, what are
your margins today,

and are you making any money?

We are about at
break-even right now.

- At $99,000 in sales?
- You're breaking even?

Well, no, but we
haven't hit Q4 yet,

which is the lion's
share of our volume.

So we're on pace to
do $500,000 this year.

- Why?
- What? $500,000?

Because we're doing
Nordstrom, we're launching men,

and we're also
going into T-shirts.

Guys, guys, I'll
clear the deck, right?

I think it's a great
idea, a great product.

I think, at your size, it's
really going to be hard

to convey what needs to be done

in order for the
composting to work.

So for those reasons, I'm out.

Ow. Sorry
to lose you, Mark.

Boo!

I got to be realistic about you.

Like, your numbers,
you're saying

that you're worth $4 million.

You're making underwear for
$8.50 and selling them for $24.

The average American
cannot afford that,

and you do not have the sales
to say that this is really that.

So, unfortunately, this
is another compost deal.

I'm out.

I'd like to make you an offer.

Okay. Okay.

I love a little company
'cause it has so much room

to run and grow,

and that's the
satisfaction of all business.

I had a company, a single-
product company I bought into

in the first two years...
How does this sound?

$100 million in
sales, one product.

- We love it.
- Wow.

But I could convert
$99,000 in sale...

I'm shocked at
how little that is,

although I hope you
get to the $500,000.

But I'm your girl.
Here's my offer.

I'm going to give you...

Yeah! Let's hear it.

What? Take it easy
on her offer, though.

I'm not going to give you a
greedy one, but it's aggressive.

I'm going to give you
$200,000 for 20%.

- Whoa!
- Oh.

Hey, Jeff, you know what?

I'm curious about
something you said.

Audience, who changes their
underwear at least once a year?

Let me know.

Come on. How many people?

Alright.

Changes or buys?

Now, I'm curious
to... - Buys.

I'm curious. Buys.

I'm curious what America thinks.

Big difference.

America, how often
do you buy new underwear?

Text "A," "B," or
"C" to 22854 now.

Two Sharks are out.

Stacy and Jeff have
one offer on the table

for their compostable
underwear company Kent.

But Robert wants to know
how often does America

buy new underwear?

The results are in.

54% of our home viewers polled

buy new underwear
every year or two.

- Every year or two?
- Wow.

That's a lot of volume, guys.

Stacy, I'm a big
believer in the entrepreneur.

Let me ask you this.

Why should I or any of
the Sharks invest in you?

So, when I started this company,

I was told no by everybody.

People said that this product
could not be made in general

or could not be made in America.

And this was something
that I believed in so personally

because myself, my friends,
women needed this product.

And I was in
relationships in the past

with someone who
didn't believe in me.

I eventually met Jeff,
who did believe in me,

and we have put all
of our kind of evenings,

- weekends, vacations...
- Good for you guys.

We bootstrapped this
business. Good for you, yeah.

So...

Stacy, Jeff, I know
how hard it is to start a business,

and I'm not going to
say no to you today

because I believe in
what you guys have built.

You're not getting
enough credit.

$99,000 in sales,
half a million this year.

Let's go, baby!

Yes!

Alright, here's my offer,

and I am not greedy
like Barbara over there.

Boo! Hiss! Boo, Barbara! I'm not
the least greedy. You know that.

I will give you the
$200,000 for 15%

because I believe in you guys.

15%? Alright. Okay.

Hold on, hold on, hold on.

Let me just clear
the field here.

$200,000 for 5% imputes
$4-million valuation.

That's insane.

I love your kumbaya
story. I hate your valuation.

It's ridiculous.

Our valuation is
based on an 8x multiple.

I'm out. I'm out.
Okay.

Alright, Kevin, thank you.

Do you guys
have a patent on this?

- So we went the trade-secret route...
- Good for you. That's smart.

Because we are a fashion product

- with multiple products in our category.
- Trade secret. Alright, alright.

Listen, I wasn't going
to give you an offer

but I've changed
my mind because...

If you can do this
with T-shirts, I'm in,

because T-shirts, I think,
are bigger than underwear.

I'm going to offer
you $200,000 for 15%,

same as him.

Equal offer.

Wow!

Should we ask them
to go in together?

Guys, what are you going to do?

What are you going
to to? Is there...

The clothing
guy will not be upstood.

I'm going to give
you the same offer

as the other two Sharks...

$200,000, 15%,
you pick one of us.

Everybody's
back in. Alright.

Obviously, you are
the fashion guru.

When we came here
tonight, that was a very...

You were someone we
targeted. Is there any...

Any combination of Sharks, that
you guys want to work together?

I don't need them for
where I'm going to take you.

You've got to
make a decision, guys.

Jeff, he may
be the fashion guru.

I've done the most investments
in fashion on this show

since Season 1.

We've got to take
Daymond. Daymond? Yeah?

Hey, and you
know what? I've done... oh!

Daymond, they'll do it.

Bam! There you go!

Let's get it!

Alright. Oh, wow,
that's a surprise, man.

Come on, baby.
That's how it goes.

Thank you.

Ha! Ha! Ha! Yeah!

Sorry, Barbara! Whoo!

Welcome back to the
"Shark Tank" special live event

coming to you live in
front of a studio audience

for the first time ever.

Next up is an easy solution
to a hard-to-reach problem.

Here's something
about the entrepreneurs.

I'm Nina. And I'm Sina.

And we're from
Potomac, Maryland.

We have three kids.

My idea started with
my eldest, Ariana.

When she was a baby, she
would not sleep through the night.

She kept waking up
and had breathing issues.

As a mom, I knew
that there was a need,

but I just thought I was crazy.

I thought it was just
me having this problem.

I am a periodontist.

My expertise deals with
sinus, oral cavity, and airway.

I've been a pharmacist
for over 20 years,

but I've learned all
my business knowledge

from watching "Shark Tank."

I consider myself a graduate
of "Shark Tank" University.

This business is
truly a family business.

My kids are part of every aspect

from shipping to social media.

They're our little
Sharks in training.

We're not just a product.

Our mission is to
provide awareness

on the importance
of nose breathing.

We've gotten here
with guts and courage.

Now we need a Shark to
help us scale this business.

We're ready to jump
in the Tank and boogie.

Hi, Sharks.

Hi, Sharks. My
name is Nina Farzin.

And I'm her
husband, Sina Farzin.

And we're here
asking for $400,000

for 5% of our
company, Oogiebear.

What
the...? - Wow.

Whoa-oa.

Have any of you Sharks ever
picked a baby's nose before?

Yep. Yes.

Some of you may know that
babies can't blow their nose,

and when they're stuffed up,

it's hard for them
to eat and breathe.

Our babies suffered
from boogers.

Yes, boogers. Yes, boogers.

It kept them up all the time,

leading to countless sleepless
nights for us and them.

Unfortunately, everything on
the market was for wet mucous,

but that wasn't our problem.

And that inspired me
to create Oogiebear,

the first baby-booger-picker.

I designed Oogiebear's
scoop and loop

to tackle all types of
boogers and earwax.

Our signature bear-head
design isn't just cute.

It helps prevent the
tips from going in too far,

allowing parents to
be in and out quickly.

It worked so great,

we knew we had
something special.

Sharks, we promise
whoever picks Oogiebear

will sleep like a
baby... - Ah.

Knowing that
they're helping babies

and parents breathe easier.

Wow! Good job.

Good job.

And I never imagined that I
would be here. Nina, it's products.

I see a lot of other products.

Yes, there are a
bunch of products.

Yes, you have the original
Oogiebear nose picker.

Which is which
one? Right there in your hand.

It's the smallest one.

And then you have the Brite,

which is the Oogiebear
with a light on it.

You got it. Yep.

And then you have the
toothbrush teether 360,

- which is the one...
- Wow.

And then, finally,
you have our version

of the aspirator ball.

I have a question for Nina.

You're a full-time pharmacist.

Why did you leave that
to come up with this idea?

Oh, great question.

I think that's what my
parents were asking, as well.

They were very
disheartened when I told them

I was leaving my
executive position

for a bigger tool. I
think they were right.

Yes, but I left
because I think, um...

I want to say it was a
dare, but, honestly, it was...

I think I was coming up
with a whole bunch of ideas,

and, one day, Sina
was like, you know...

My nephew needed this.

And I looked at him. I said,
"I'm bringing this to market,"

and he just looked at me
and said, "Let's see you try."

Good for you.
That's what it takes, yeah.

That sends a
message to everybody.

You just got to try.

You got to
do it. Nina, what does it...

What does it cost
you to make it,

and what do you sell it for?

So, it costs... the range
that you see there...

Anywhere between
landed $2 and $4 to make it,

and we sell it from
$12.99 to $24.99.

Wow. Wow.
Wow. Wow.

Great margin.

Which is the $24.99?

What age group is this set for?

So, we market it
from zero to 24 months

because that's when, really,
they cannot pick their nose.

But I was using my prototype,

the actual prototype on
my son until he was like...

He's going to be so embarrassed
I'm going to say this...

But until he was
like 5 years old.

He's so embarrassed right now.

I know. He's going
to kill me. I'm so sorry.

I love the boogers, but we
got to talk sales, okay? Okay.

Lifetime sales, and
then what are you

going to do in this 12 months?

She has a valuation
of $8 million, though, Kevin.

Remember. I know, but
that's why I'm freaking out

with this booger story.
Mr. Wonderful, you're going to love me.

You're going to
love me. Let's hear it.

To date, I have sold

over 1 million units
of this booger product.

- Whoa!
- Good job.

How many dollars?
How many dollars this year?

How long have
you guys been in business,

and what is your last 12 months?

So 2015, we started.

Total revenue sales,
over $15 million.

- Whoa! Good for you.
- Whoa!

I missed something there.
Have you made any money?

Have you made any money?

Are you margined
enough to make profits?

This year, I'm on track
to make $1 million.

Oh!

Wait, wait. Wait,
wait. Hold on. Hold on.

Profits? Profits?
Hold on. Hold on.

Hang on. Are you going
to sell a million this year,

or are you going
to make a million?

Oh, no, no, no, no.
I'm making a million.

You're making a million?

I'm... I... Oh, my gosh.

On sales of what?
I don't have boogers in my portfolio.

On, revenue sales this year,

we're on track to
make $5.4 million,

last year, we made $4.5 million.

And, next year, at no
increase in distribution,

we will make $6.5 million.

What do you need an
investment for, Nina?

You're killing it. I love
that you asked that.

I am killing it, but,
you know what?

I learned all of
this from you guys.

I've been watching you.

Barbara, I've been watching you

when you had Ava the
Elephant way back. Oh.

I don't know what
happened to that product,

but I should've been here.

I didn't have distribution,

that's when I actually
made my first prototype.

Nina, stop right there. I
want to pick my nose with you.

I am Ms. Wonderful.
Here's the deal. I love sales.

I'll make you an
offer right now.

I love this deal. I love this
deal. That's right. I know.

And I don't have... And I can't
wait to make more money with you.

I don't have a nose picker
in my portfolio, nothing. No.

$400,000.

I want 10%.

- 10%.
- That's it?

- That's it.
- No royalty.

Thank you for your offer. I
can make money picking noses.

And, you
know, I've got to tell you,

I think it's so fascinating
that you started with one idea,

and now you have a whole
bunch of different products.

Are there more coming?

So, Lori, I like to say

that we're now a family
of smart baby products

because our smart design,
you can see there are other ways

that we've used a smart
design in helping parents,

and we have the
baby's point of view.

Well, let me tell you something,

I'm extremely impressed because
Thank you.

I thought you were
gonna come up here,

and I thought your
numbers in sales

were gonna be snot much.

But this is...

incredible. Oh,
and I want to tell you...

I gotta tell you
something, this is just snot

in my area of expertise,

and I think there
are other Sharks

that probably are
better with this.

But, congratulations,
I'm impressed, but I'm out.

Thank you. I
really appreciate it.

Thank you for your offer.

Is there any competition?

Like, are there any knock-offs
of this, any competition?

So, I actually developed a
whole new baby care product...

A whole category.

The booger category, huh?

Yes! It wasn't a thing.
We've modernized the way

that people clean their
baby's nose and ears.

There is nothing like
this on the market.

As a pharmacist, I knew better.

Nothing addressed boogers.

And it's the most
important thing,

because it involves
babies breathing better.

Right. So, yes we
have knock-offs,

because we're killing it
so we do have knock-offs.

But nobody... because we
have a patent on our scoop

so we have a utility
patent and a design patent.

Nice. And
nobody really can...

Good for you.

Steal our great success.
Where are you guys...

Where... Where
are you selling them?

So, we are selling it

in Nordstrom, buybuy
BABY, Walmart.

What about online
on your own site?

Yes, we do, and that's
where we need your help,

- 'cause we need to have...
- What percentage of

your sales right now
is online on your site?