- Tonight,
- five hopeful entrepreneurs
- who believe they have
- the next big business idea
will enter the shark t*nk
seeking the financial backing
to make their dreams come true.
Come on, that woman put her life
into this for three years.
So what? Life is hard,
then you die.
Enough.
Get over it.
I've gotta change chairs.
The sharks are ready to invest
using their own money,
- but only for the right person
- with the right idea.
We make protective underwear
for flatulence.
I'm wearing them now.
They look good.
But first, the entrepreneurs
must convince a shark
to invest the full amount
they're asking for,
- or they'll walk away
- with nothing.
You gotta get
to my negotiating range.
My negotiating range is 25%.
I love him!
And if the sharks hear
a good idea,
they'll fight each other
for a piece of it.
- Barbara,
- are you making an offer?
I am. The offer is--
remember I'm a marketing
and branding genius.
♪♪♪
♪ the best things
in life are free ♪
♪ but that ain't really
good enough for me ♪
♪ I need money ♪
♪ that's what I want ♪
♪ that's what I want ♪
♪ that's what I want ♪
♪ that's what I want ♪
♪ that's what I want ♪
♪ what I want ♪
♪ that's what I want ♪
First up is Jonathan Miller,
a young entrepreneur
with an innovative
Internet business.
♪♪♪
My name is Jonathan, I'm 29,
and I live in Chicago
with my wife Jenny.
- My company is element bars.
- We do custom energy bars.
So the inspiration
for element bars was that
- I used to eat an off-the-shelf
- energy bar and then crash.
So I'd look at the label,
and the label had a list
- of completely unpronounceable
- ingredients, and I was like,
there's gotta be a better way.
I wanted a bar that was
wholesome and natural
and catered
to my specific tastes.
So I started making my own
energy bars in my own kitchen.
And that was probably
about four or five years ago.
At the current facility,
we can make from 12 bars
to thousands of bars a day.
In fact, we're shipping
about a thousand bars per week,
- so we really have grown
- in our operational capability
but we're looking to grow
to the next step.
So today's order
is crispy cranberry.
So it's our crispy base
with Cranberries,
a little bit of peanut butter
in there
and some crunch from, uh,
some soy nuts in there.
Gets all mixed together
and, uh, then they're gonna
- measure it out and mold it
- into each individual bar.
I've put a lot into this.
- I've put a year and a half
- of my own time
and really been leaning on
my wife to be able to support us
in this very tough
economic time.
So there's a lot riding on it.
♪♪♪
Hi. my name is Jonathan Miller.
My company is element bars.
- I'm seeking
- a $150,000 equity investment
- in exchange for 15%
- of the company.
At element bars,
users visit our web site
to create their own
custom energy bar
by first selecting whole,
natural ingredients,
- personalizing a label, and then
- a fresh batch of energy bars
shows up at your doorstep
in seven to ten days.
Now I did my homework
and I created each of you
your own custom energy bar.
Thank you, Jonathan.
Thank you.
I appreciate that.
Thank you.
So the first thing
you might've already noticed
- is that the label
- has been personalized for you.
- So, Kevin's, for example,
- is called the "as seen on TV,"
and Barbara's is called
the "sweet and smart bar."
Y-you're also tasting
the customized bar
for your taste
and nutritional needs.
So as I said, we personalize
the label but we also customize
the ingredients
inside the bar for you.
It's very good.
So let me show you
how I made Barbara's bar
and how anyone
can use our web site
- to create their own custom
- energy bar. So you use
our build a bar interface,
and you first select a core.
Do you want it chewy?
Do you want it oaty?
Do you want it crispy
or do you want it datey?
So for Barbara's bar,
which we're showing here,
you select the chewy core.
Now we walk you through the rest
of the 5-step process
to select your fruits, nuts,
sweets and boosts along the way.
As you add
each specific ingredient,
- the nutrition label on the right
- side of the screen here
- continuously gets updated.
- I'm gonna not eat any more
till I know how many calories
are in here.
It's right on the back.
- It's right on the back.
- Yeah, you can check it out.
So I've just tried
the "Mr. wonderful bar."
Yeah.
And, yes, I am Mr. wonderful,
but the bar was quite good.
Why is this company
valued at $1 million?
Because that's basically what
you're telling me it's worth
- when you ask me
- for $150,000 for 15%.
Sure. so we started
in August 2008.
We've sold about 30,000 bars
to date, just 20,000 this year.
We're on track to hit 44,000
bars by the end of the year.
We've doubled our sales in--
just in the last six months.
We've grown 15% per year.
So you grossed how much
last year?
- So that--well, it was only
- a partial year--August 2008--
so we only grossed $12,000.
So this year
we're about $50,000 to date.
- It's an interesting business.
- Mm-hmm.
But the value
that you're telling me
your business is worth
is insane.
You've got $50,000 in sales, so
I believe the machine's working.
- You've sent some bars out.
- Got it.
That's all you have.
- You don't have
- a million-dollar business,
and yet, you want me to
give you my money as if you did.
- I understand your perspective.
- I've actually worked in v.C.
- My goal is-- - if you say you worked
- in venture capital,
then you know my job
is to squeeze your head like
a teenage pimple right now.
- And I absolutely
- understand that. I understand.
And you also understand
that on the other side
of the table--
that you're buying into
not only the business
but you're buying into me.
So let me ask you a question.
You're a v.C. Guy.
You're a smart guy.
- What's more important,
- the idea or execution?
I believe it's execution.
- I do, too. So how do you go
- in a year and a half
with an interesting idea
to $1 million?
Do you think
it's worth that today?
I believe it's worth it today.
No, you don't.
You don't really believe
it's worth $1 million today.
You can't.
You're too smart a guy.
- You--you sat around
- in your kitchen or wherever,
- came up with an idea,
- and a year and a half later,
you wanna say
it's worth $1 million.
I-I genuinely believe--
I mean, I ate the energy bar
for breakfast this morning.
- It's something that, once it
- enters your lifestyle--
how much of your own money
have you put into this business?
I put $50,000 of my own money,
and I haven't taken a salary
out of this company
in a year and a half.
Oh, cry me a river.
I believe in it so strong,
- that's what I'm willing
- to commit to.
- You gotta do that.
- You're a start-up guy.
- Everybody knows - you gotta work like a dog.
- Ab-absolutely.
- But I'm selling you
- my passion.
- I'm selling you
- both the horse and the jockey.
- Okay, let's say
- you're wonderful,
you did a great presentation.
You have $50,000 in sales.
If I said your company
was worth ten times that,
it would still only be worth
half a million dollars.
And you want...
Not 10% more than that.
You want 100% more than that.
Mm-hmm.
Are you being a savage,
greedy pig or not?
I'm doing what's in
the best interest
of the company
and the idea.
Well, maybe not because--
yeah, you may lose the deal.
There's nothing proprietary
about the process
- or what you're doing.
- What's unique--
- I-i disagree with you.
- What's unique...
- No, wait a second.
- Here's my question.
What do we need this guy for?
Yeah.
You need his formula.
Why do we need his formula?
We could find that.
You can just go to a factory
and get this done yourself.
You--unfortunately, you can't.
Why?
Especially not--
not at small volumes.
That's our
operational expertise.
You have to believe in me
and the business.
Give me the money,
know that I can do it,
and I will execute
and show you the numbers.
You came in here,
I ate your bar.
I got a sugar high.
I got excited. Now I'm crashing.
- With dates? There's no added
- sugar in your date bar.
- No, no. I'm just saying,
- you know,
I'll be the first
to say this.
This is the toughest deal
I've looked at--
'cause you love the guy.
I love the guy.
I've gotta be honest with you.
I'm really struggling.
I really am.
And that doesn't happen to me
very often, my friend.
But I'm... out.
- I-i--be--i would like
- to answer your objections,
even if you are out, okay?
- What you see
- on the web site
- is only the tip
- of the iceberg, okay?
- So what we have is the actual
- recipes behind the bars.
- What you tasted
- tasted great.
- Most of the energy bars
- out there taste like chalk.
That's where it starts.
Second thing is the actual
trade secrets that are--
go behind--
he's such a great salesman!
- He is great but he's not worth--
- he's not worth $1 million!
- That's the thing.
- I'm an entrepreneur.
Ugh!
- But I sell my business.
- I believe in it passionately.
- You're like a micro-- - a mini shark.
- Okay.
- But I don't get the business - personally.
- Okay.
- I just don't believe
- the market is there.
- Or if it is there, I think
- somebody's gonna knock it off.
So I'd be nervous at night,
you holding my money. I'm out.
I mean, there is a saying in
business that the first person
to say the number loses.
And you really did put up
a very high number.
- If a greater equity
- was out there,
- would that still interest you
- or--or period?
You're offering more equity?
Well, that's certainly
a possibility.
Why don't you
put out a number?
Put out a number, yeah.
Nah, I-i can't negotiate with
myself. you pull the lever.
I'm giving you the power.
The valuation is still crazy,
as he said.
I would have to have 75%.
Is that an offer?
- Oh, my god. This guy's great.
- I love this guy!
- He is. He is, right?
- Yeah.
- You should forget this business.
- Come work for me.
For 75% of the business,
I'll give you $150,000.
I-I mean,
I-I'm open to hearing
- what the different options are
- out there.
- Well, do you want to hear
- my offer?
I would love
to hear your offer.
- All right. Seven years again,
- I bought into
the customized nutrition
concept.
Okay.
- And it turned out, uh,
- this company is now taking off.
I believe they're gonna
be interested in this product.
- And contingent upon
- that execution of that deal,
I'd put up the $150,000
for 100% of the company,
and you'll get
a 4% royalty forever--
as we say, in perpetuity.
So there's two offers
on the table.
But remember, I'm a marketing
and branding genius,
and I will put that stuff
everywhere.
What are you gonna do?
♪♪♪
On the table.
Daymond has offered $150,000
for 75% of the company,
while Kevin harrington
has offered the same amount
for 100% of the company
but with a 4% royalty
paid to Jonathan.
What are you gonna do?
So I'll start
with daymond's offer.
At 75%, you have to understand
from my perspective, too,
that would completely demotivate
me as an entrepreneur,
and it'd also limit me in terms
of growing in the future.
So 75% is way too much.
So you're declining me?
I-I think he's saying no.
Are you gonna
give me a counter?
I'm saying no.
I'm gonna give you a counter.
So I'll give you 20%.
Okay?
Yo, wait, wait.
Is there
some ruffled panties on me?
- Daymond, you know what
- I love about it?
Is he said it
with a straight face.
- I am very worried
- a very large lightning bolt's
gonna come down and just buzz!
And you're gonna be gone...
And there's gonna be a bar
shaking in the wind out there.
In--in this negotiation,
- you see how I'm also gonna
- act on your behalf when I'm
- negotiating with someone else.
- I wouldn't want them
- to walk away with
- the rest of the company
- if it's a supplier or if it's
- another equity partner
coming in after you
and trying to loot you.
Oh, this guy is good.
The best thing you've sold here
was Jonathan. You're a star.
Let's not waste
each other's time.
Let me just ask
a really simple question.
- Are you gonna go above 50% - or not? Yeah.
- Am I gonna go above 50%? No.
I'm out.
You're a great salesman
but you're not a great
business guy. I'm out.
I'm declining--I'm declining
the--the counter of 20%
and the--the--the--the insult.
But he's a beast.
- Okay. yeah, he's a beast.
- I like him.
- I like him a lot.
- I think he's an entrepreneur.
With that said, I'm out.
Four sharks are out,
- and Jonathan only has an offer
- from Kevin harrington
- still in play.
- I made you an offer.
- Right.
- Where do we stand?
So you're gonna pay
$150,000...
- And then you are gonna receive
- your royalty on those sales.
- And what do I own
- in terms of equity, too?
- Or all I get is a royalty?
- You get the royalty.
So no equity.
Life is hard, then you die.
- But the royalty stream
- is--is gross.
- I put up all the money.
- I take all the risks.
- I have all the overhead,
- okay?
You just collect a check
every week. That's how it works.
Do we have a deal or not?
I think it's gonna
have to be the hardest deal
that I have to turn down.
The, uh, 4% is, uh,
is something that, uh,
is not gonna keep me motivated
as a person.
And I want to
see this company grow.
Unless it's some sort
of better equity, um,
unfortunately, I think I'm gonna
have to turn down your offer.
Jonathan, I have one last
counterproposal. okay?
It's a do-or-die, okay?
I got it.
Um, I wanna license
element bars.
I'll put up the $150,000,
and you'll receive
and I wanna own
Is that a deal
that you can do?
It sounds nitpicky,
but you gotta get
to my negotiating range.
My negotiating range is 25%.
I'm sorry. I'm sorry.
I love him!
I-I'm sorry. I--'cause I have
to be able to walk away--
that's my b.F.F.
Jonathan, all right, I'll tell
you what. I'm a fair guy.
I will--I'll split
the 35% and the 25% at 30%,
but that's it.
All right, 30%.
We have a deal.
Okay. super.
- All right.
- Whoa!
- Whoo!
- Okay, buddy.
- It was a pleasure.
- Good, man.
- Come over here, man. Robert,
- get out of here. Take his seat.
Yeah, here, Jonathan.
Jonathan, sit there.
Thank you so much.
- Good job, Jonathan. Looking
- forward to working with you.
- I look forward to it.
- I'm really excited.
Thank you. Okay, me, too.
Outstanding,
you crazy chicken.
- I'm so excited.
- I-i think we all--it was long.
It was intense.
Uh, it felt like it was
teetering on the edge
for a while,
but now I'm just euphoric.
♪♪♪
Six weeks ago,
you met the first entrepreneur
to strike a deal
with the sharks...
Are you gonna
give us an answer?
Yes or no?
I'll take it.
Great.
Here's what's happening
with him now.
♪♪♪
- Hey, it's Mr. tod.
- I'm here at the pie factory.
As you can see,
business is boomin'.
What can I get for you?
The sharks have gotten me
into q.V.C...
Hey, congratulations.
- Those guys had a lot of faith
- in your business.
Oh, absolutely.
Thank you very much.
Within five minutes,
I sold thousands of pies.
Oh, man, tod!
Since I did my deal,
business has tripled.
I'm on course
to make millions this year,
all because of the shark t*nk.
Besides the money,
it's the human element
that I like the most--
- the e-mails and the testimonials
- of people who were inspired.
- That kind of stuff
- will choke you up.
- Hey, if I hadn't gotten
- the money from the sharks,
- I don't know
- where I would be right now.
The doors could be closed.
I could be homeless once again.
But I got the money,
we got the deal done,
- and it's turned
- my life and business around.
,
who is hoping to get
an investment from the sharks
by appealing to the child
in everyone.
♪♪♪
I'm David.
I'm a 51-year-old toymaker,
and I have a wife
and two beautiful kids.
Every game has a place,
but this game's place
is the trash can.
I invent toys and games.
I love what I do,
because I've always been
a kid inside.
This isn't as kooky
as some of his other ones.
I'm very passionate
about my product,
- and I've spent over $50,000
- developing it.
I really need the sharks
to invest in my product.
That way I can recoup
my investment
and prove to my wife
that I can survive
off my silly inventions.
♪♪♪
I'm David chodosh,
and my product is called
the fizz.
I'm here to raise $150,000
in exchange for 25% equity
in the product.
I'm a toymaker,
and my mission is to create fun,
especially when it comes
to food.
I discovered
that the root beer float
had really been largely ignored
for 50 years,
so I wanted to wake up
that sleeping giant,
and I did, by creating the fizz.
I'll show you how it works.
The idea is built around
the bottled soda.
Open the soda...
And a straw goes into the bottom
of the fizz cup.
This one's preloaded
with ice cream.
The straw helps it, uh, draw
the soda in a little easier.
It screws on to the top,
and when you squeeze
the soda in,
it actually starts to fizz up
inside the cup.
And if you were in there,
you could hear the fizzing.
Just like that...
And you just drink.
Mmm.
That is good.
I knew you'd love it.
How do we--but how do we know?
Oh, well,
I'm glad you asked,
because I brought one
for each of you to try.
Oh, awesome.
So I have orange
and root beer. If you--
root beer.
- Root beer.
- Okay.
- Thank you, David.
- You're welcome.
Daymond.
Mm, good.
Yeah, it's not bad.
I think my kids would love it.
It's fun.
David, do you have sales?
Yes, I do.
Uh, last year,
sales were around $84,000.
Where did the sales
come from?
Ice cream stores, uh, vendors
at, like, state fairs.
I also have provided many of
them as promotional products.
I supplied, uh, uh, Coca-Cola
with a, um, an order.
So what did Coca-Cola say
to you?
They loved it.
They wanted to order them
for a, uh, giveaway promotion.
And?
- And, uh, but they're not really
- in the ice cream business,
- per se.
- Ah.
And the ice cream
comes from where?
The ice cream is provided by
either the customer himself,
who would scoop it in at home
or in
a best-possible scenario--
is an ice cream manufacturer
who would prefill these
and sell them
in the freezer section
in--in stores.
Now when you went to
the ice cream companies,
they said to you...
I haven't really demonstrated
big enough sales
to get them interested.
But, David,
for this to be big...
Mm-hmm.
Isn't the real challenge
that you're not a soda guy
and you're not
an ice cream guy?
Could sell it
in the freezer section,
like, at a convenience store.
With the ice cream
already packaged?
With the ic--exactly.
But then we're back
to the same starting point.
You're not the ice cream guy.
This is a sale that you have to
make to a big corporation.
That isn't my business,
so I gotta say, I'm out.
I'm an old-school
kind of guy.
I like to go and scoop it
and also be able to dig into
the ice cream simultaneously.
Sure.
So I'm out.
So I think you look the part.
You look like a guy that should
be selling root beer floats.
Yeah, you really do.
But here's the thing--
I think it's an ice cream cup
you ought to sell
to an ice cream guy.
That what I think. But I'm
not buying in. So I'm out.
Okay.
- There's only
- one strategy here.
The ice cream companies
license it from you
and prepackage it,
as you yourself said...
Mm-hmm.
Or they don't.
And if they don't, you're gonna
be fizzing around forever
as a little novelty
and never make any money.
I'm out.
Okay.
David, I tell you, I love it.
It brings back
my time in my life
when I was just beginning
to think about money.
♪♪♪
Four sharks are out,
and Kevin O'Leary is
David's last chance at a deal.
David, I tell you, I love it.
It brings back my...
Time in my life when I was just
beginning to think about money.
To me, this has to be bundled
with one of the products
that it uses.
And I think
it's the ice cream.
But I don't know
how to invest in it.
And so with the warm,
fuzzy feelings of my boyhood...
I have to say, I'm out.
Thank you.
Thank you.
Yeah.
♪♪♪
The fizz will, uh,
keep, uh, existing,
and hopefully, um,
- uh, it will inspire myself
- and other people
to continue, uh,
to create fun products.
Next up are
buck and Arlene weimer,
who created a product to save
their 40-year marriage.
♪♪♪
My name is buck weimer,
and I am president
of under-tec corporation,
and we make protective underwear
for flatulence.
And I'm Arlene weimer,
- and I've been wearing under-ease
- underwear for flatulence
for 15 years.
So we are asking
for $55,000.
And for this,
we're willing to give you
a 25% stake in our company.
For most of my adult life,
I've had crohn's disease,
which is an inflammatory
bowel syndrome
with excessive bad gas.
So in 1991,
on Thanksgiving Eve,
after a sumptuous meal,
buck and I were lying in bed,
and the gas was
particularly unbearable.
So as the odors were
reaching my nostrils,
I began to think of ways
to solve this problem.
For me personally,
divorce was not an option.
And I had an idea about
a pair of panties
that maybe could contain
the smell.
So after many months of
experimentation in our cellar,
I hit upon
a pair of underwear
that are made
from airtight material,
with elastic around both legs
and charcoal filtering
in the back/tush area.
In 2001, we opened our business
with a web site.
Most people, uh,
laughed a lot,
and, um, had some questions--
"uh, is this for real?"
So of course we said,
"yes, it is for real."
But this helped us understand
that there was humor
connected with our product.
Very good.
Are there sales since 2001?
Yes. last year,
our estimated sales
were $37,000.
However, the year before,
we had quite a bit
of advertisement.
- What were the--
- the gross was over $67,000.
- Arlene, you've been doing this - for eight years now.
- Right.
- Was that
- your most successful year?
The first year was, um,
the gross was $83,000.
- $83,000. so the sales have
- kind of been going down.
- Well, actually, every time
- we get publicity,
we know the sales go up.
So, Arlene,
how does the product work?
Is that a filter?
Yes. th-these are
a pair of the underwear.
They're airtight,
and they have--
but aren't they--are they
really snug on your legs?
I'm wearing them now.
They look good.
What are you making these for?
What are you selling them for?
Okay, selling price is $24.95
for the underwear.
For one.
For one pair of underwear
with a filter.
With a filter.
I'll tell you where I'm at,
Arlene and buck.
I think you've done
a fantastic job
for what could have been
a very touchy subject.
But the market is small.
I'm out.
Okay.
Okay.
This is really a supply
to a medical house
and/or mail order,
and so I'm out.
Okay.
- Arlene,
- I-i just don't see it here,
so I'm sorry, but I'm out.
I think you should
peddle happy marriage.
You look like the happiest
couple I ever saw.
Thank you.
- I'm sitting here thinking,
- would I rather have gas
and wear my sexy underwear?
Or would I rather eliminate
the gas
and wear that underwear?
And I think I'd pick
my sexy underwear,
because I think
I'd feel medical in those.
So I'm out as well.
You did a great job
on a very, uh,
different kind of product.
I wish you the best of luck.
I have to say I'm out.
Thank you very much.
Thank you. Thank you all.
Thank you all very much.
♪♪♪
- You know, - they did a great job...
- Great job.
- For what could have been
- a very uncomfortable topic.
They made light of it.
Great presentation.
I'm Kimberly cayce,
and my company is
kaylx technologies.
It's a business that was created
for women by women.
I competed around the world
as a professional golfer
for five years.
My experience
as a professional athlete
has truly inspired me
and my business.
After I retired from my career
as a professional golfer,
I also went through
a divorce.
I really felt a need
to reinvent myself.
I spent three years
researching our concept,
developing our prototypes
and beta testing our products.
Along the way,
investors have come and gone,
but right now my company
is really running on fumes.
I've invested almost my entire
life savings into this company.
I must get an investment
from the sharks
or I'm really not sure
how we're gonna be able
to keep the company
going forward.
♪♪♪
Hi there.
I'm Kimberly cayce,
and these are the lovely ladies
of team kaylx.
My company is
kaylx technologies.
Tonight we're seeking $125,000
in exchange for 20% equity
in our business.
At kaylx technologies,
- we believe
- that when a woman exercises,
- balls are the only thing
- that should bounce.
I know the subject
of bouncing breasts
- might be laughable
- to some people,
- however, exercise-induced
- breast pain is a serious problem
- that affects
- millions of women.
Every kaylx sports bra
is designed to be
as fashionable, feminine,
flattering
as it is functional.
As you can see,
we have eight bras in our line.
Each of these bras
- has been engineered
- to work with a woman's body
- depending on what type
- of activity she enjoys.
- Let me show you
- what I mean.
First up is
our enlightened line of bras.
These are comfortable
and supportive
- but they're
- a little bit sexy.
Next up
are our extreme ladies.
These are bras designed
for women that like to go fast
and aren't afraid to fall down.
Last up are our elite athletes.
These bras
are designed for women
that are going for the gold.
Each of these bras incorporates
our patentable
kaylx power sling,
- a wireless mesh insert designed
- to restrict breast motion
across multiple planes,
making it possible for women
to exercise without pain.
And, Kimberly, do you have sales
or is this a brand-new start-up?
We're a brand-new company.
- We have been about three years
- in development.
Right now we have a waiting list
of over 250 women
who are eager
to buy our products,
and we just got our first order,
uh, from a retail store
- a few days ago,
- called the full cup.
Do you have a projection
of what your sales will be
this year or next year?
We--we've had
a rough go of it.
- Some people might not want
- to admit what I'm about to say.
Kaylx is really
running on fumes right now.
I've put my life savings
into this business.
How much have you put
into this?
I've probably put
over $100,000 of my own money.
There are many,
many sports bras out there.
There are many sports bras.
I was wearing sports bras
that would come
all the way up my chest
or that would smash my breasts
into this awful uniboob.
- They were uncomfortable.
- They were unattractive.
I don't have to play like a girl
but I can still look like one.
- Kimberly, who's the leader
- in this market right now?
There's really
five key competitors--
champion, Nike, under armour,
Adidas and moving comfort.
Oh, they're not well-known.
We definitely have
our work cut out for us.
But before we started
developing our products,
we interviewed
over 250 women.
Found about 90%
of those women
are really dissatisfied
with sports bras
that are on the market.
But, Kimberly,
as an average consumer,
I walk into a large retailer.
I've got these five companies
that spend billions of dollars
telling me that
they're the best product.
And here you are,
on your own, little company.
How in the world are you gonna
compete against those guys
that have distribution,
have billions of dollars
in marketing,
and every woman out there
knows their brand name?
Well, first, every one
of those companies started
right where we are today.
I can't decide if I'd rather
stick needles in my eyes
or give you $125,000.
Do you know
how tough it's going to be
to gain any market share?
Do you have a patent
on any of this stuff?
We don't hold the patent yet.
Right now, as I mentioned,
our company really is
running on fumes.
And we have our provisional
patents ready to file.
What would you use the money
for, the--the $125,000?
What are you gonna do with it
when you get it?
- Largest percentage
- of that money
would go towards
our manufacturing costs. Um--
but you have no orders yet.
What are you gonna manufacture?
Well, that's part
of our go-to-market strategy.
We intend to take our products
dir-directly to the consumer
through our go kaylx
web site.
Kimberly, I see
tremendous competition,
so... I'm out.
If I took $125,000 of my money
that I waited on tables for,
k*lled myself
to get my hands on,
when would I see
that money back?
Most likely by year five.
By year five.
Much too long for me.
I'm out.
You know,
it's a little too early
for me to jump into this.
I'm out.
Well, one thing
I can share with you
is that our brand identity
is pretty strong. Um...
Kimberly,
you're just starting out.
Not only are you going after
this big a market,
you're going after this part
of--i... I'm sorry. I'm out.
Kimberly, the problem is
- I'm not sure the world needs
- another sports bra.
The truth is, you're
a nothing burger in this market.
Nothing. you have nothing.
And $125,000 isn't going
to get you anything.
You need
huge marketing dollars
to make that brand
even mean anything.
That's the problem.
You know that.
You know what I think?
- I think you know you're dead.
- This is over.
Now you came here
to hear the truth.
I just gave it to you.
But I cannot put my money
in harm's way here.
There is no hope.
You're going to zero with this.
I'm out.
Thank you, all,
for this opportunity.
Thank you.
- Don't cry.
- Thanks. no.
It's the beginning
of something else
and the end of this.
That's yet to be seen.
♪♪♪
I thought that the sharks
might've been able
to see the opportunity
and how much... passion
was behind this company
and how many women it means
the world to, not just me.
He broke her heart.
Look, I told her the truth,
and that was the truth.
Does anybody doubt that?
- I mean,
- come on, that's crap.
When you started out,
nobody looked at you and said,
- "Kevin, that's a bad idea.
- You should stop"?
- Nobody ever said that
- to you?
- When I started out,
- there weren't five competitors
- that owned 100% of the market.
- Really? when I started out,
- there were
- a thousand competitors.
- You do something
- that's so different
- nobody else in the world does? - Give me a break.
- You don't think--
- there's a million guys
- like you on wall street.
- You know, shame on you--shame on
- you for not telling the truth.
- She has hope. - She's just too soon.
- There's no hope.
- If she gets a patent on that
- and then she licenses it...
There's no hope.
That's going to zero.
- She has hope. - If everybody stopped when
- some guy told them to...
- Oh, you know, then why didn't
- you write a check, Robert...
- A hundred companies
- wouldn't have started.
- If you're so nice? - There's a
difference between - being an investor
- and being an entrepreneur.
- You insulted her.
I gave her a huge opportunity
to stop wasting money...
No, no, no. I'm not saying--
- and put it into a new business,
- one that might succeed.
- Look, look, I'm not saying
- you told her the wrong thing.
- What I'm saying to you is,
- you could see in that wom--
oh, you're saying my style--
- you don't like my style
- of telling her the truth?
- Hang on a sec. You could
- see in that woman's--
- I don't like to waste words. - Come on, that
woman put her life - into this for three years.
You could see it in that.
Robert, so what?
This is business.
Life is hard,
then you die. Get over it.
Well, maybe in your world.
In my world
and everybody's world.
Enough. calm down. Calm down.
Well, there's a different way
to say the same thing.
No, I don't want...
- Absolutely. - To give encouragement
- where there is none.
- When you're dying,
- you have to be told the truth.
You can k*ll the idea but you
can encourage the person.
I told her truth and I'm proud
to do it, and I'll do it again.
Well...
- That's it. End of story.
- We swim in different waters, - my friend.
I don't want
to talk about it anymore.
I've gotta change chairs.
I'm Heath hall. I work for
a think t*nk on capitol hill.
I'm Brett Thompson.
I'm a lobbyist on k street.
We've decide to take
useless pork barrel spending
- and put our money to good use
- to create our new company,
pork barrel bbq.
Pork barrel bbq is
- an all American barbecue sauce
- and spice rub company,
and we're hoping to bring
our monumental flavor
- to the entire nation. Heath
- and I are both conservatives,
- and, you know, we've watched
- as Washington seems
to be bailing everything out.
- And, you know, we wanted to
- prove, if you had a good idea,
you could still
use the American dream
- to build something great. - Our all
American-spice rub - is great on meat
and even vegetables,
which we think our liberal
friends will appreciate.
We're gonna be smokin' up
some ribs and pulled pork.
- We're hoping the sharks
- really love
our barbecue and our sauce
and our rub.
- And we think they'll salivate
- over the millions of dollars
they could make
with our company.
♪♪♪
I'm Brett Thompson...
C.e.o. of pork barrel bbq.
And I'm Heath hall,
- president of pork barrel bbq,
- a Washington, D.C.,
- gourmet dry rub
- and barbecue sauce company.
- We're seeking an investment
- of $50,000
in exchange for a 10% stake
in our company.
A small price to pay,
we think,
to be partners
with an American company
- that isn't owned or operated
- by the federal government.
Heath and I love two things--
making great barbecue
and making lots of money.
In six short months,
- we've successfully developed,
- branded and marketed
- our all American spice rub
- and our pork barrel bbq sauce,
which was recently voted
one of the best
barbecue sauces in the nation.
Our inaugural product,
pork barrel bbq's
all American spice rub,
is a bipartisan blend of
all-natural herbs and spices.
You know, it's great
on pork, chicken, beef.
- Heck, Brett and I even think
- it's great on shark.
- You know, our friends
- thought we were crazy
to start a company at the peak
of an economic crisis.
We saw it as our chance to grab
a piece of the American dream.
You know, Brett and I
are both from Missouri,
the show-me state,
- so we wanted
- to let our products show you
just how great they taste.
- We've been told
- by competitive barbecue teams,
veteran chefs and, most
important to us, home cooks
that our rub and sauce
is the best they've ever had,
and we think you'll agree.
Whose recipe is this?
Uh, this is our recipe. I-i like
to eat, so I like to cook.
And so it's
a real passion of mine.
- And so I'm always
- experimenting in the kitchen.
And this is one of the, uh,
marinades and--and rubs
- and sauces that I've come up - with over the years.
- You guys are starting out
with a pretty good product.
It taste great.
Thank you.
- But it's completely unknown
- as far as I can tell.
I've never heard of it before.
Well, if you notice on the,
uh, far side of the table,
we've got a couple trophies
there. just about a month ago,
we were at the national barbecue
battle in Washington, D.C.
Over 50 teams were there
at the competition.
We took second place
in the nation
in the best sauce
in the nation contest.
Not bad.
And, uh, you're valuing
your company at this point
at half a million dollars.
They're just joking about that.
I know they're not serious.
One other thing
about this product
is that it's all-natural
with no preservatives.
I love the way he did that.
He didn't answer your question,
just like a politician.
Oh, no. No, he went right on.
He went to the next one.
What--why don't--
why don't you answer his
question about your valuation?
We just scored a huge deal
to have our products distributed
in major grocery store chains,
and we actually have 10,000
units in production right now
- heading out to stores
- next month.
For that 10,000 units,
what's the dollar size?
- It costs us $2
- to produce the rub,
$1.80 to produce the sauce.
And, uh, we have
a 50% profit built in.
Over a full year,
we anticipate,
- based upon
- very conservative estimates,
$4.1 million worth of revenue
and over $1 million worth
of profit.
Your barbecue sauce
tastes great.
But I'll tell you
a little secret.
- I was an investor
- in a barbecue sauce company
- because I thought
- it tasted great.
And you know what happened
to my money? It's gone.
I don't mean to doubt you
because you're politicians...
- Ha!
- But I just wanna be clear.
Heath, you've got $30,000 today,
hard copy orders.
Right.
- You said that you believe - conservatively...
- Correct.
That will come out
to $4 million.
- That's right,
- over the first year.
- Tell me what you're gonna do
- from stocking
$30,000 worth of orders
to get to $4 million.
We chose the best distributor
on the east coast,
from New York to Florida.
He has 22 years experience.
He's used his revenue
projections and his experience
to come up with real
and conservative-based numbers.
The challenge with this
is purely one of distribution.
And it's
all about marketing.
And at your size,
you're--you're this.
I'm out.
I think Robert
hit the nail on the head.
The key to this
is distribution.
You're projecting
$4 million in sales,
but what if the 10,000 units
doesn't sell?
If it flies, you may
go to the moon. Okay?
If it doesn't,
you may be out of business.
I just see it, uh,
sinking or swimming here
on this distributor.
The risk doesn't work
for me really, so I'm out.
Probably
every one of us up here
can think we can make
a barbecue sauce
whether it's good or not.
And you know this is
a crowded space. I'm out.
Two problems with it--
valuation,
- which has been pointed out,
- uh, ad nauseam here,
because it's--it's huge
for a start-up.
But you're not full-time.
You guys are politicians/
hobbyists with sauce.
That's basically it.
And if--if I may, you know,
it's the goal of every American
to be able to own
and run their own company.
- This is about making money
- for us and for our family.
- No, I understand that.
- But, I mean,
without having the focus
of a full-time team or guy,
- at least one of you
- getting up in the morning,
nose to grindstone,
making rubs and sauces,
it's very difficult
until you prove this thing
- beyond the embryonic state
- it's in right now.
For that reason, I'm out.
I'm sitting here,
looking at Brett and Heath.
Heath, I have to tell you,
I can't look at you without
picturing you in a pig costume.
- The mascot?
- And you're--the mascot.
You're a very handsome man.
- I'm not saying that you look
- like a pig. I'm just saying--
- oh, I thought
- that's what you were saying!
No, I'm saying you would look
adorable as a real-life mascot.
- I guess I'll take that - as a compliment.
- It's a compliment.
I don't know how else
you can take it.
Only a politician would
take that as a compliment!
You know, um, actually
I'm interested in your business.
But, of course,
the numbers are crazy.
What about the $50,000?
I don't see that as a lot of
money to produce much product.
What happens when
the $50,000 runs out?
I think the--the revenue
that we'll generate,
plus we actually have another
$100,000 of our own money
that we're prepared to invest.
Oh, really?
We're very committed to this.
This is not a hobby.
Barbara, are you making
an offer?
I am.
The offer is
I'll be happy to give you
the $50,000, all right?
But for 50% of the business.
Would you be willing to do
No.
You're very lucky
I wasn't asking for 51%.
- We'd love to accept
- your offer.
Are you with him on that?
I'm with him on that.
You've got a deal.
Great.
You've got
a great sense of humor.
Thank you very much.
Thank you so much.
Thank you. Thank you
so much.
We look forward to this.
- You know, the truth is,
- he doesn't even need a costume.
He just needs the ears.
You just called him a pig
on national TV.
- I didn't call--no, not at all.
- I think you did.
- I did not.
- I think you did, yeah.
We went into the t*nk
facing five sharks.
In the end, there was
one shark standing...
And one pig.
But, you know,
we're so excited we got a deal.
Catch all-new episodes
- on a new night and time
- beginning
Tuesday, September 29th
at 8:00 P.M.
- I'm the world's - most accurate Kn*fe thrower.
- Wow.
Mommy!
You are nuts, daymond.
Edwin, are you a vampire?
Enough chatter.
Let's do it.
Let me sweeten my offer.
We all know Kevin's deal
is a waste of time.
No, it isn't.
You're out.
- No, no, I'm not finished.
- I wouldn't take his offer.
- Noise! noise! - You're like
- high school boys--
Barbara, I'm offended
by your sexism.
01x06- Episode 106
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Shows entrepreneurs making business presentations to a panel of five venture capitalists (investors in start-ups) called "sharks" on the program, who decide whether to invest in their companies.
Shows entrepreneurs making business presentations to a panel of five venture capitalists (investors in start-ups) called "sharks" on the program, who decide whether to invest in their companies.