14x17 - Episode 17

[bunniefuu]

Narrator:
Tonight on "Shark t*nk"...

Check these things out.
Corcoran: Wow.

We've carved out a
new way to hit the slopes.

Herjavec: Oh, that is cool. Oh.

Oh, yeah. Kaitlyn: Barbara,
are you drooling yet?

Wow. We made that just
special for you, Barbara.

But how tasty is the business?

Kevin, you look like you're
on your rocking horse.

Mike, we're on national
television, Mike. Oh.

I want you to be
excited about this.

- I think it really sucks.
- Oh!

Everybody returns my calls.

Boring! Boring!

Kevin, you're throwing all
his investors under the bus.

Here's an offer. I want
a royalty, of course.

Wow. Kevin, you're
gonna bankrupt them.

Narrator: First in the
t*nk is a decadent twist

to a favorite sweet treat.

♪♪

Hi, Sharks. My name
is Jeremy Carlson.

And I'm Kaitlyn Carlson.

We are here seeking $200,000

for a 10% equity
of our company...

Crispy Cones! Crispy Cone!

Sharks, for years, we've been
eating ice cream out of this.

Boring! Boring!

Ice cream is royalty
in the dessert kingdom.

It deserves to be
treated as such.

And you shouldn't
eat her frozen majesty,

the queen of sweets

out of this crumbly
cardboard coffin.

Barf.

That's why I revolutionized
the soft-serve cone

with Crispy Cones,

freshly made dough
cones grilled rotisserie-style,

covered in cinnamon,
sugar, and cookie powder.

Mmm! Finally, a
cone fit for a queen.

At all of our Crispy
Cones locations,

we cook our doughy Crispy
Cones on our specialty grill

fresh to order.

Oh, yeah. Look at that. Wow.

And then you powder
them to your liking. Wow.

You then choose a spread,
like hazelnut chocolate,

cookie butter, gourmet
soft-serve ice cream,

a topping of choice, and
what sauce to drizzle on top.

Oh, yeah! Oh, yeah!

Barbara, are you drooling yet?

I'm drooling. So,
Sharks, who's ready

to give ice cream the proper
throne it deserves with...

Crispy Cones? Crispy Cone?

I am. When can we start?

Right now. Take it. Dig in!

Sharks, so you have
a full Crispy Cone

with a spread on the
inside and then ice cream.

And then the cone next to
it should be a warm cone...

Oh, my gosh, this is incredible.
with a spread on the inside.

Greiner: Wow. So
it's almost a doughnut.

We don't market it as a
doughnut, and it's not fried.

That's not fried?
It's not fried?

Not fried. It's not fried.

We put it on those dowels
right there on the grill,

and then they grill with
heat rotisserie-style,

caramelizing the sugar.

Look at this
delicious... I know.

We made that just
special for you, Barbara.

I know.

So we know it's
good. It looks good.

It tastes good. It
feels good. It's creamy.

It's smooth. It's tasty. Yeah.

But how tasty is the business?

The business is super
tasty, just like that cone.

I started this company on
the side of the road in a tent.

I had no money. I was
a freshman at college.

The first year, we made $21,000.

How long ago was
this? So this was in 2018.


only open four months.

The second year, I
designed a trailer in China

and got it shipped
here, and we made...

Or we grossed $70,000
that second year.

Out of a trailer? Out of a
trailer in just five-month period.

Okay, 2020. And then the
third year was COVID year.

We were devastated.
School was out.

Colleges went out.

But we grossed $80,000 that
year. Out of the same trailer?

Yeah. Out of the same
trailer in the same small town.

And then in 2021,
we grossed $207,000.

And then this year, we're projected
to have half a million dollars.

Out of a trailer? Greiner: Wow.

So we ended up
selling that trailer

'cause we grew out of it.

We had an opportunity to open
up a storefront in Logan, Utah,

and then we had an opportunity
to open up a storefront

in Rexburg, Idaho, this year.

So now we have two full-time
storefronts. But why would you do that

when things are going so
well with the low overhead?

We basically just
grew out of the trailer,

and we knew that if we
wanted to scale this business

that we couldn't do what
we wanted to do in the trailer.

Greiner: I'm just curious.
We don't know what one costs.

So it costs us to make
$1.50, roughly, to $1.89.

And we sell it for $7.59.

That's expensive. That's
roughly a 308% markup.

Yeah, but it seems
worth it. I mean...

Yeah, it's gourmet. It's high-quality
ingredients. It is gourmet.

How did you come
up with this idea?

Yeah, so I actually served
a mission for my church

for two years in
the Czech Republic.

And they would make
these pastry-type things

on the side of the road,
and I was fascinated by it.

Wow. And by the
end of my two years,

I literally had a dream
in the middle of the night

of me making these in the U. S.

So I brought it back, and I
learned in my aunt's kitchen.

I figured out the recipe.

I flew back to the Czech
Republic to perfect it.

Were they making it the same way? Did
you see them cooking it on a rotisserie,

or did you come up with that?

Jeremy: They hand-make them.

In the Czech Republic,
they put them over coal,

so it takes so much longer

and you can't do that
inside a storefront.

And, Kaitlyn, what's your story?

So, I was Jeremy's employee.

He hired me in 2019.

I married my employee.
Herjavec: Wow.

I have a background
in photography.

I do wedding photography

and social-media
marketing and stuff.

So he reached out to
me just on Instagram...

We didn't know each other...

And asked if I would help
him run the Instagram.

So you slid into her
DMs. O'Leary: Wow.

You married your stalker.

I did.

[ Laughter ]

Yeah, yeah. Yeah.

And honestly,
it's been the best.

Like, we're so in love,

and it's been, like,
the biggest blessing

to, like, grow this
business together.

Okay, so now you're
a retail business.

Right. Yeah.

Tell us about each location...

How many square feet,

and what are the
sales per location?

Yeah, so the first
storefront that we opened

was in Logan, Utah.

It's 1,400 square feet.

We were able to
open it with a budget,

including equipment, $90,000
for build-out and equipment.

And then we opened up
the storefront in Rexburg,

which is 1,600 square feet,

and it cost us about
roughly $150,000.

And what are the
sales for the first store?

So Logan, Utah, just barely
hit a year mark in August 27th.

And they did $298,000 gross.

And did you make
money on that store?

We did not.

And that is industry standard,
especially in the food industry.

Right. I'm assuming you're
going to want to franchise this

one day so that... Right.

if I, as a franchisee, want
to buy it, I'd like to make,

you know, $50,000
to $80,000 a year...

Right... costs, so what what
does the store have to produce

for me to make that?

So, roughly $300,000.

And we have a list of 11 people

who are opening up 11 different
stores in a year and a half.

You already have
the franchisees?

Yeah. The franchisees
we've interviewed,

we've done our due diligence
for the past five months with them.

And today our first franchisee

is signing their first
agreement in Arizona.

It's gonna be three stores in
a year-and-a-half time frame.

How much do they pay
you to get the franchisee?

First store is $30,000.

The next two are $25,000.

We have nailed the product.

I know the importance of
nailing it and then scaling it

and not going too fast.

Yeah, but you don't have
the numbers yet to sell it.

You said you had $298,000
was your production

and you said you needed to have
a store roughly make $300,000

to make any money. Right.

So what happened there?

We've paid roughly
$51,000 in attorney fees

just to become a
franchise company.

So you haven't
really proven it out.

So where have you
raised your money?

Who's put money
into this so far?

I drove Lyft and Uber
and I grinded so much

to kind of pay for those things,

as well as we were able
to pull out an SBA loan.

And then we do have
a line of credit open.

So how large is
that line of credit?

It's $190,000.

Look, you're not in the ice
cream business anymore.

You're in the franchise
business. Correct.

That's a completely
different set of responsibilities.

It's requiring training
and understanding that,

managing people, dealing with
the expectations of franchisees.

And so I don't think you
have enough experience yet

to get into franchising.

I think you're too
early to do that,

that you still should develop

and grow organically
with your own stores.

So for those reasons, I'm out.

Look, really impressive
what you've done.

For me, you're
moving too quickly.

When you take a
franchisee's money,

it's a commitment to them.

Yep. And makes me nervous

without having a proven
model on the store.

I mean, you might get there,
but it's not for me. I'm out.

Thank you so
much. I appreciate...

Guys, I love the business a
lot while it was in the truck.

I thought, you know,


and this nonproprietary
doughnut cone,

which anybody can do themselves,

means you have to
run like crazy with this.

Somebody like Barbara
is gonna come and say,

"I can do this and I can do it
in a much faster, better way."

So I loved it the way it
started in your dream.

Definitely. You were in a truck.

But anyways, I'm out.

Thank you so much, Kevin.
Greiner: Listen, it's insanely delicious.

It is better to me
than any doughnut

or croissant or anything
that I've ever had, actually.

Thank you so much. I think
you've done an amazing job.

Thank you. Thank you.

I personally think
the franchise model

is not the way to go with this.

For that reason, I wish
you good luck, but I'm out.

Thank you. O'Leary:
Alright, so, one Shark left.

Barbara, there are
some other things

that we are doing with
our company differently

where we create a
hype, as well as scaling.

Every week we drop
a new specialty flavor

that's homemade in our
store, like French toast,

blackberry, huckleberry,
and people go crazy over it.

We have people
waiting at the door.

It's something that
Cousins Maine Lobster

does very effectively
all the time. Right, right.

Alright, I'm very
interested in this business.

And I am the person that knows
more about franchise and food

than anybody
here. Totally. Yeah.

Alright, I'm gonna
make you an offer.

♪♪

Narrator: Four Sharks are
out, but Barbara is interested

in Jeremy and Kaitlyn's ice
cream company, Crispy Cones.

Corcoran: I am the person that
knows more about franchise and food

than anybody
here. Totally. Yeah.

Alright, I'm gonna
make you an offer.

I'd like 20% for the $200,000,

and I should really
charge you 50%,

if the truth be known, because
I know so much about it.

I know the pitfalls.

I know the
organizational systems.

I know the
attorneys. I know it all.

Would you go to
$200,000 for 15%?

Oh, definitely not. I'm
giving you a great deal.

Oh, my gosh.

[ Groans ]

O'Leary: You know,
it should be painful.

It should be.

Both sides feel they're
not getting a great deal.

She wants more. She said 50%.

And you're howling
at the moon at 20%.

This should be a
great partnership.

As Kevin often says, all
roads lead back to Barbara.

That never happens.

I believe that. It's a dead end.

Oh, my God.

Barbara, would you
do $200,000 for 17%?

No. What's the difference of 3%?

I've just worked so
hard for this, and...

Listen, I bought 30% of
Cousins Maine Lobster business.

It was my idea to franchise it.

I was the one who told them
they could make much more profit

on a truck than they
could on a restaurant.

Experience is the one
thing you guys don't have.

That's correct. Yeah.


gonna be successful.

In fact, if I sit here another
minute, I'm gonna have to...

Barbara, we'll take your offer.

Okay. [ Laughter ]

Whoo! Greiner: Good job, guys.

- Wow.
- Yay!

- Thank you, Barbara.
- You go, Barbara.

We wanted to partner
with you this whole time.

Thank you so much. My pleasure.

We're excited. My pleasure.
Can I give you a hug?

Yeah, of course. A
young guy like you.

I've been watching you for
so many years. Thank you.

My pleasure. Thank you so much.

Boom! Good luck.
Happy for you both.

I was 12 when I started
watching all of you.

So all of you have
been idols to me.

Barbara's been the
main idol, though.

Oh, you're full of [bleep]

O'Leary: Come on. [ Laughter ]

Whoo! We just got a deal.

Like, I can't even believe we
got a deal with Barbara. Yeah.

We just made a deal with
Barbara. Like, that is insane.

Oh, my gosh. That's
exactly what we wanted.

That's what we came for.

She's such an
amazing person, human.

And she'll be perfect
for our company.

We just know it.
Yeah. We're excited.

We're super excited. Yay!

Narrator: In Season 6,
we saw Mikaila Ulmer

make a deal with Daymond
John for her beverage company,

Me & the Bees
Lemonade. It's a deal.

Let's see what she's up to now.

Ulmer: Since going on "Shark
t*nk" when I was 9 years old,

we've been scaling the
company, saving the bees,

and inspiring the next
generation of changemakers.

Currently, I'm 18 years old.

I'm a college freshman
at Emory University,

and I'm still the founder
and CEO of Me & the Bees.

In our five years of business
before going on "Shark t*nk,"

Me & the Bees had made
around $40,000 in revenue.

Nine years later, we've made
over $10.2 million in revenue.

There were times when
we wouldn't make a profit

and I would still
donate to organizations

that were saving the bees.

And we've contributed
a quarter million dollars

to our cause of saving the bees.

Leading up to "Shark t*nk,"

Me & the Bees was sold in
only 40 locations, all in Texas.

Now Me & the Bees
is sold in all 50 states

in retailers like H-E-B,
Target, and Publix.

And Mr. Daymond has helped
us with our first licensing deal,

a DIY start your own
lemonade business kit,

with tips and tricks from me.

Without the bees, our entire
food supply would collapse.

In order to inspire the next
generation of entrepreneurs,

I've been traveling
throughout the United States

sharing my story and
giving students advice

for becoming a
social entrepreneur.

We have the FUBU
founder, of course,

known as a shark
on "Shark t*nk."

Hi, Mr. Daymond.

[ Cheers and applause ]

Mikaila has the DNA
of an entrepreneur.

She's created such a brand,

and I don't see any
end to her success.

That is proof to any young
entrepreneur out there.

Mikaila did it. Why can't you?

You are the most powerful
generation we will ever have.

Almost all of you are very
passionate about something,

and you can change
the world by globally

connecting with
people with a passion.

"I'm gonna clean up the ocean."

"I'm gonna stop
human trafficking."

"I'm gonna save our bees."

So happy and proud of you all.

And I'm so happy
and proud of Mikaila.

Thank you.

It's crazy to think that
I've known Mr. Daymond

for over half of my life.

He took me in, despite
me only being 9 years old.

As a black woman entrepreneur,

being taken
seriously is very hard.

So it was so important to
have someone as influential

and established as
Mr. Daymond backing the brand.

My dream is to be able
to use my experience

with growing Me & the
Bees from the ground up

to fund other youth- and
minority-owned businesses.

Sounds like I
need to be a Shark.

All: Me & the Bees!

[ Cheering ]

Narrator: Next up is a better
way to handle your tech.

♪♪

Hi, Sharks. My name's Justin.

This is my business
partner, Mike.

We're in the t*nk
today seeking $250,000

in exchange for


that revolutionizes the
way active, busy people

interact with their smartphones.

Sharks, meet Mike.
Mike, meet the Sharks.

[ Muffled music playing ]

What up, Mike?

Hey, Mike.

- Mike.
- Hey, Mike.

Corcoran: Hey, Mike.

Mike, we're on national
television, Mike. Oh.

Sorry. I have my earbuds in.

Let me just pause
my tunes real quick.

Oh, God. That didn't work.

Let me just...

Ah, my earbud.

Oh, no.

You see, every time
Mr. Mikey Struggles over here

wants to play, pause,
or adjust his volume,

this is the hilarity
that ensues.

But now, with our invention,
Mikey struggles no more.

This... is Chubby Buttons,

the ultimate wearable
remote for action sports.

That's what I'm talking about.

With Chubby Buttons,
I have total control

over all the essential
functions of my smartphone

while I have my gloves on.

My hands stay warm.

My phone stays in my pocket,
safe from all the elements.

I'm able to focus
my attention ahead

while shredding safely
down the mountain or...

[ Laughter ]

riding the open road.

And Chubby Buttons isn't
just for outdoor enthusiasts.

Our customers are
constantly finding new ways

to press our buttons.

With our Nano-Stick backing,

you could even use
it around the house,

whether you're cooking in
the kitchen with messy hands

or even sing along
in the shower.

It sticks magically to
most nonporous surfaces

just like this.

It's a better way to interact
with your smartphone.

So, Sharks...

Both: Who wants to
make a fast stack of cash

with Chubby Buttons?

Ta-dum!

So, in front of
you, you'll notice

we gave you a couple
of Chubby Buttons units.

It Bluetooth connects to
my phone? It sure does.

Barbara, you know, you're
the queen skier of the group.

So we would love if you could
put on those gloves we gave you.

Yes. So it's actually already
hooked up to my phone right here.

So let's say we're
about to, you know,

start skiing down the mountain.

And, you know, we got some tunes
playing, right? [ Up-tempo music plays ]

Oh, yeah! Right?

Now, this song's good,
but could be a little better.

Maybe you could hit the plus
button, increase the volume.

[ Volume increases ]
Yeah, get a little louder.

O'Leary: Yeah! There you go.

Shake it up, Barb.

Exactly.

And you can press play again.

[ Mid-tempo music plays ]

Alright, so let's just say that,

you know, you're listening
to music just like that.

We can control all the
media from your smartphone,

or you can pick up phone calls,
you can decline phone calls.

It was very easy to work,

and you can do nothing in a ski
glove, honestly. Right, right, right.

Nothing, right?
People on the mountain

are always taking a
ski glove off all day long.

Yeah, that's how we
started the company.

We've been best
friends since we were 13.

We went to high school
together, and every year,

we do a trip somewhere,
and one year,

we went on a ski
trip to Colorado,

and I was listening to music.

The problem was, this whole
fiasco that I presented here

actually happened in real time.

At a certain point I
said, "Justin, I just wish

there was a big fat button I
could use to control my phone."

And we kind of
looked at each other,

and our gears
started going, and...

We kind of thought
that "big fat buttons"

may not have been the
best marketing word for this.

So we mulled it
around a little bit,

ended up with Chubby Buttons.

"Chubby" is better.
But essentially that.

How long has it
been in the market?

We've been actively
selling for three years.

Herjavec: Do you have sales?
And what are lifetime sales?

So in 2021, we brought in
$500,000 of top-line revenue. Wow.

In 2022, we brought in $600,000
in top-line revenue. Wow.

And what do you sell them for,

and what do they
cost you to make?

So it's about $11.57
and $13.37 landed,

and we sell them for $79.99.

- Wow.
- $79.99?



And what percentage
of your sales,

the $500,000, the $600,000,
are you spending on marketing?

Yeah, we do spend about between
$12,000 and $15,000 per month.

What's the customer
acquisition cost?

$26.86 per unit.

What's the biggest
application for the product?

Is it skiing? Yeah.

So when we created it,

it was mainly for skiers
and snowboarders,

but we had no idea that
all these other people

wanted to use it...
Motorcyclists, pilots... Yeah, yeah.

boxers, climbers,
choreographers. Pilots?

Yeah, sailors too. They
bring it on their boat.

And they adhere it 'cause they're
busy with ropes and... Fishermen.

Fishermen. Is it waterproof?

It's water-resistant.
Yeah, splash-proof.

So you can take
it into the shower.

People have adhered
it to their Jet Skis.

And, yeah, so it is splash-proof. So,
guys, the simple story of this product,

you make it and your customer
acquisition costs combined

are 40 bucks.

You sell it for 80 bucks.

You make $40 of contribution.

That's basically
what's going on here.

You take that, you buy
more inventory, right?

You haven't taken any
money out of the business yet?

No. So we have one
investor right now.

How much did he put in?

$250,000 was the
initial investment.

Guys, I'll clear the
deck some. Look.

I think there's a real risk
from voice-automated products

like Alexa headphones
or Google headphones.

It's just not a fit for me. So
for those reasons, I'm out.

It's nothing I could
help with, honestly.

It's not for me. I'm out.

Look, guys, I don't know if
it's gonna survive long term...

Yeah...'cause I do think AirPods
are getting more sophisticated.

I mean, I just see a
technical obsolescence to it.

But I wish you all
the best. I'm out.

Thank you. That's fine.
Thank you so much.

You're really nice guys.

I mean, honestly, like, you
have so much fun up there.

I can see that your relationship
is really wonderful. Yeah.

And I think it's a
really smart product.

Thank you. You know,
I'm not super-techie person.

I know enough, but I
just... I can't predict, like,

what's gonna be the next
thing, how soon. Right.

I'm sorry. I'm out.

Well, listen, it's such
a simple product.

I like it. Here's
an offer, alright?

I'll give you the
$250,000. I want 10%.

I want a royalty, of course.

But I'm not that greedy. Okay.

I'm gonna take 10 bucks a
unit till I get back a million bucks.

I get 3X on my money,

and then we ride
off into the sunset,

hoping that this product
turns into a company.

'Cause I'm hoping you guys
come up with some other ideas.

We do make, once all is said
and done, about $12 per unit,

so it's about a


But it's not perpetual. Oh,
then you cannot do that.

We can't do a $10 royalty.
It's a lot. $10 is too much.

You can counter.

The royalty is a
little steep for us.

I think that we wouldn't
mind doing a $2 royalty.

Ooh. Could you
really afford that,

based on your slim margins?
Let me think about that.

It doesn't seem you
could afford any royalty.

I will be 178 years old
when I get paid back.


forgot a millennial.

We have a couple
thousand units in stock.

With your help,
we're making more.

We're making about 16,500 units.

It's not a company
yet. It's a product.

It's a good product.
I could see using it.

I mean, all of those
things are great,

but it's got to
be a $10 royalty.

Yeah, it's a little tight.

Kevin, you're gonna bankrupt
them at $10 a unit. No!

Your customer acquisition
cost is likely to go down

now that you're on "Shark t*nk."

Right. Yes.

And so that's
what I'm betting on,

that you'll be able... you
can afford to pay me back.

It's not my fault
that you asked me

for a quarter of
a million dollars

for basically, you know,
a nice little product,

but that's a lot of money.

Quick question... Instead of
a royalty that you described,

if we were to have a
higher equity portion for you,

would that be something
that you'd consider?

No, because the reason
you want me to get a royalty...

I know this may
sound crazy to you...

But our incentives
are aligned. Mm-hmm.

I want you to sell
more units. Right.

It is, but, Kevin, why wouldn't
you go up in the percentage?

It's always interesting
to hear this...

Right... on the other sides.

But they're not writing checks.

He's got a point there. Know
what they're actually saying?

"No checks. No
checks. No checks."

So, look, it's okay if you don't
take it. Cherkezian: Mm-hmm.

Tomorrow morning when I
wake up, I'll still be Mr. Wonderful.

Right. Unfortunately.

Would you go
down to a $3 royalty?

No. Okay.

You're not selling enough units.

Well, with your help, I imagine
we'd be selling a lot more.

Well, I'm hoping
that's the case,

'cause I'd like to get
back my $250,000.

But wouldn't you also like
to be part of the business

for longer than it takes
to sell us out of business?

Once I put it in my portfolio,
my team goes to work.

What do you think
I do? I try and...

Think of all the companies
over the years I've sold.

I forbid you to give
him a royalty like that.

We'd like to counter by
offering 15% for $250,000

as an equity we want to
raise to compensate for you

and a royalty of $1 per unit

until you make your
investment back.

No.

Okay. Thanks, guys.

Thank you. Thank
you guys. Appreciate it.

Good luck.

Herjavec: "Thank you,
Sharks." Thank you, Sharks.

Strong stuff. Strong stuff.

I think we did
our best we could.

I think we really explained
what our product was

as clearly as we
could to everybody.

They recognized the value.

I just think it's unfortunate.

I think they're missing
out on an opportunity

for a great, great company.

Narrator: Next up is a way

to make your road
trips more enriching.

♪♪

Hi, Sharks. My
name's Woody Sears.

And I'm a travel fanatic from
Santa Barbara, California.

Today I'm here
seeking $1 million

in exchange for 5% equity
in my company, Autio.

Whew. Wow. Whoa!

When my family
and I take road trips,

we find ourselves
asking a lot of questions

about the places around us.

We like to know how a
small town came to be,

what people do
there for a living,

and the names of the
mountains and places we drive by.

Wouldn't it be great if we
had a personal tour guide

who could share these stories?

Introducing Autio.

Autio is a mobile audio
entertainment app for travel

that tells stories
about the places,

landmarks, and
cities that we drive by.

It uses geolocation technology
to trigger these stories

by your location automatically.

Simply press play, and stories
begin based on where you are,

stories like these.

Man: Local residents
passed an ordinance

prohibiting the
horseless carriage,

which was startling and
upsetting their horses.

Man #2: It was a stop on
the Underground Railroad,

as many homes here

and in nearby
Springdale were, as well.

Woman: Violent eruptions

caused the mouth of
the volcano to collapse,

forming a nearly symmetrical


We have over 9,000
stories spanning the U. S.,

each of which is told
by professional narrators.

We have famous
voices like Kevin Costner,

Phil Jackson, and John Lithgow.

Autio gives us a
chance to be entertained

while at the same time
taking a break from screens

and being more engaged
with our surroundings

and each other.

So, Sharks, who wants
to hit the road with Autio

and help tell our next story?

Very cool. Walk me
through an example.

Yeah. I buy the product.

Cuban: So there's an Autio
app, right? There's an Autio app.

So I download the app. You
download it from the App Store.

It's free to download. It
comes with five free stories.

And you enable location
and notification preferences,

and then as soon as
you come into range

of a story that
you haven't heard,

it will automatically
begin to play. Got it.

If you used up your
five free stories,

then we offer you unlimited
streaming for $36 a year.

How long are your stories?

They're three to four
minutes on average,

and some go up as
much as 20 minutes.

If I bought the app and
I'm in the middle of nowhere

and I have no Wi-Fi access,
I assume I don't hear stories.

And the other side of
that, if I'm in New York City

driving down Madison Avenue,

I would think I would have
a story every three seconds.

Yeah, the stories
are evenly distributed

throughout the country...

Interstates, highways,
byways, scenic roads.

So you are gonna have
more in the urban centers.

But if you go really remote,
you're gonna be offline,

out of Wi-Fi, out of cellular,

then you can download
those stories to your device,

and they'll still be
triggered by the GPS radio.

Oh, in advance? That's clever.
So you're gonna hear the stories

while you're in the national
park or another more rural area.

What's your background?
How did you...

Yeah, I do have background.

I've spent the last 19 years
in software and mobile.

The last company that I
started was called iStoryTime.

We made the first library

of narrated storybooks
for the iPhone.

We ended up producing over


and then got acquired.
Greiner: Wow. Very interesting.

I got to ask, because it's
very rare in "Shark t*nk"

where a guy walks in
and says $1 million for 5%.

I mean, I just
have to understand

why you would do that.

We have the number-one
broadcast radio network

and largest podcast publisher
who will also be coming in

as investors and
strategic partners.

This valuation is
actually a discount

to what they'll be paying.

O'Leary: Please tell
me you have sales.

We have sales.

We've done over
$700,000 this year,

$210,000 last year.

And we're on a $2
million annual run rate.

Well, that's respectable.

How much money have
you guys raised so far?

We've raised
$3.5 million so far.

We have the largest auto club
in the nation on our cap table.

AAA?

AAA, as well as the biggest
retailer of RVs in the country.

Yeah, but I'm just curious,
why do you need a Shark?

We want people who feel
strongly about our mission

and can help get
the word out there.

This is a new product category,

so a lot of people
are unfamiliar with it.

Woody, how many
subscribers do you have?

We have 15,000 paid members,


and over a half million downloads.

And what percentage
have renewed?

We've... From the
earliest subscribers,

they're renewing at 70%.

On average, it's about 50%.

It's a 50% attrition rate?


consumer subscription services.

Wow. I didn't know that.

Woody, let me just
get things started.

I'm just not a fan. I'm sorry.

I think Google Maps,

everything about it
obviously is GPS-triggered.

It's not a major stretch
for them to add audio.

So for those reasons, I'm out.

Okay. Thanks, Mark.
You're welcome.

I keep measuring the
words 15,000 subscribers...


"I'd like $1 million."

It just sounds to
me like it's crazy.

I'm out.

Yeah. Thanks, Barbara. Yeah.

Greiner: You know,
I think it's really cool.

While you are very credible,

$1 million for 5%, that
just doesn't excite me.

So, unfortunately, I'll be
a customer, but I'm out.

Yeah, Woody, I
think a fantastic idea.

If it was really early,
I'd take a flier on it

'cause you never know.

I don't think
consumers will pay for it.

I think if it was a feature
I got with something else,

absolutely immersive,
I would use it.

So I think where you are
at this stage, just not for me.

I'm out. Okay. Thanks, Robert.

So you said that the annual
fee was how much, again?

$36 for one year and
$70 for three years.

And do you know what

your customer
acquisition cost is yet?

The average since launch is $38,

but in the most recent
month, it was under $10.

We're starting to get more
and more word of mouth.

We won the Webby
Award for Best Travel App.

So we're starting to benefit... So
you think you can hold it down at $10?

Yeah. $9 and change.

You know, I got to tell you,

I thought it was insane
when you walked in here.

But you're very credible.
There's no question about it.

It's intriguing. I like it.

I'm gonna give you the
million bucks, but I want 15%.

Greiner: Wow. Cuban: Oh!

Here's something else, Woody.

Anything to do with money,

any bank building,
any Federal Reserve,

I'll narrate it.

[ Laughter ]

I mean, look, I have
millions of followers.

Tell me... So, you
know, you have followers.

That's obviously great
for adding subscribers.

Of course. Are there other places
where you see that you add value?

Yeah, there is.
Everybody returns my calls.

Everybody.

You tell me what door you
need open and I'll make it happen.

I appreciate the offer.

I am willing to go
up as high as 6.5%

for that million
dollars. Ooh. Ooh.

But 15% is way too high.

I'll do it at 12%.

[ Laughs ]



Got to be 10% or
ain't gonna happen.

I can't go above 7%.

Why?

That's the max. How about this?

I'm already giving you...


Those were... Those
are gonna be advisory...

That's how I'm gonna
get above the 5%

is to give you advisory shares.

Get me to 10%, we're done.

I can't get you at that price.

Kevin, you're throwing all
his investors under the bus.

I'm Mr. Wonderful.

You're already getting
a huge discount.

You're gonna be in at a much
better price than those folks.

It's not my fault that the cap
table is the way it is, okay?

Yeah. I was willing,
you know, to do it 15%.

And you talked me down.
You b*at me down to 10%.

I want you to be
excited about this

and be happy to jump
in the mission. Well, I am.

If you tell me done at


I'm sorry. I can't do 10%.

Oh, Woody. Good for you,
Woody, for sticking to your g*ns.

Great job, Woody. Yeah.
Thank you. I appreciate it.

Good luck, Woody. I'll be a
customer. Cuban: Good luck, Woody.

Thank you.

We couldn't quite make it
work with Mr. Wonderful.

Not an easy decision, but
I think it was the right one

for our company
and its future success.

Narrator: Next up is an
innovation in winter sports.

♪♪

Hi, Sharks. I'm Scott.

And I'm Bill.

We're from Salt Lake City, Utah.

And we're here seeking $200,000
for 20% equity in our company.

Sharks, Bill and I are
both avid mountain bikers,

and for us, there's
nothing better

than a summer morning
riding our favorite trails.

The only problem is,
once the snow falls,

we have to put our bikes away.

Don't get us wrong,
we love skiing.

What's better than a
batch of fresh powder?

So what if you could take the
best from both of these sports

and combine them
into a single product

that is both easy to learn
and outrageously fun?

Herjavec: Ooh! Well,
guess what, Sharks.

We've done it.

♪♪

Introducing Tngnt Ski Bikes.

Corcoran: Wow! How safe?
Herjavec: Oh, that is cool.

It looks dangerous.
That's why I love it.

Check these things out.

We've carved out a
new way to hit the slopes.

Our combination of a
high-performance design

and traditional bicycle parts...

Corcoran: Wow! ...gives
outdoor enthusiasts

something that has never
been available before.

And in addition,
Sharks... Herjavec: Wow.

ski biking is easy to learn.

If you can ride a bike,
you can ride a ski bike.

Cool. Our ski bikes
are gravity-powered

and currently enjoyed by
people of all ages and all abilities.

So, Sharks, who wants
to come and shred with us

and start the next
revolution in winter sports?

Pretty cool. Herjavec: Wow.

So, when did you
first create this?

Is this brand-new,

or is this something you've
been selling for a while?

So we actually started
about seven years ago

in product development

and started shipping
product about six years ago.

I've never seen
one on a ski hill.

That's why we're here.

So why don't you get right to the
sales, then? We'll get you on one.

You've got six years, Get
right to the numbers. Yeah.

So lifetime sales,
half a million dollars.

Last year was really
our breakout year.

We did $175,000.

This year, we'll do $250,000.

How many units is that?

We did about


Herjavec: Tell me
about the product.

So when you sell me the bike,

you're selling me
everything I see there.

Exactly, yeah.
Everything you see there.

How do I stop?

Very similar to riding
a snowboard or skis.

You simply lean to the side,
and the skis have metal edges,

so you're able to stop.

You wouldn't believe
how much control there is.

Now, when snowboards came out,

they were banned
on many mountains

all around the world
'cause of all the accidents.

So where does this
fit in that continuum?

Have you been banned already?

We are making continuous
progress, you guys.

There's a group out there

called the American
Ski Bike Association,

and their sole responsibility

is to go advocate
the sport of ski biking.

But wait, wait, wait.

If there's a Ski
Biking Association,

that means there's other
products that are similar.

Yes, there are some
similar products. There are.

Oh, there are? There are. Yeah.

Yeah. And so let me
just finish that point.

Currently in the United States,

there are over 120 resorts
that welcome ski bikes.

And worldwide,
there's over 200 more.

So what percentage
ban them? Half of them?

Less than half.
Far less than half.

You said there's an association

and that there's
competitive products. Okay.

Why is yours different or
better than the other one?

There's really two
competitors on the market.

Number one, there's
a custom frame builder.

So they're like
$4,000 to $6,000.

So they're one-offs.
They're not mass produced.

They're one-off.

The other competitor
is closer to us.

But he doesn't
have the proprietary

Tngnt ski retention system.
Herjavec: Got it. Okay.

And what is the operational,
like, riding difference

between yours and that one?

One of the things
that we have patented

is called our ski
retention system.

What it does is it keeps the
ski in contact with the ground.

Does it detach on a fall like a
regular... It does not detach on a fall.

No. What do you sell them for?

Yeah. Okay. We have
two models, actually.

Our entry point
is the Tngnt Drift.

It's the orange one. And
that one retails for $999.

The red one, that's
our Tngnt Carve.

It's $1,549.

O'Leary: What's the difference?

Full suspension,
front suspension.

What's your cost
to make that one?

So $458 is our cost
landed in our warehouse.

And on the higher-end
model, $594.

Everybody would like to
try it before they buy it, okay?

Absolutely. Yes.

But that requires capital

for you to provide 20, 30,


Yes, yes. That's
part of our strategy.

We grow our network
of on-mountain rentals,

because like Scott said,

when we get people on
the bike, they buy the bike.

You've sold 200, you said.

Both: Last year. Last year.

Why do you think
you're not selling more?

It's new. It's not that new.

And there's other competitors

that are trying to do
the same thing. Right.

O'Leary: Are you full time?

Bill and I are
currently not full time.

So I'm a data security engineer.

And I'm a mechanical engineer
in an aerospace company.

Bill is a rocket scientist.

Guys, this is more
of a hobby for you.

I mean, 200 units is...

You know what? We're
transitioning right now.

I'm sorry, Mr. Wonderful,
I'm gonna argue that point,

because by the time
I get off my day job,

this is a full-time job.

It's a job I don't get paid for.

We're not taking any
money from the company.

We are doing this
to grow this sport.

This is our passion.

How big are the
other competitors?

The custom frame
builder's way smaller.

And the other company's
about the same as us.

And none of them seem to
be growing at, like, a boom rate.

Right. It's just kind
of piddling along.

Why? Well, imagine


that this is in the Olympics.

Guys, guys, guys, you're
doing too much imagining.

Every entrepreneur needs
to have vision, right? Yeah.

But there's got to
be a dose of reality.

Why is there an association
if there's only three of you?

There's no numbers
on it. Nobody's divulging.

There's no public company.
But there's still not enough.

If they're the same size as
you, that means 400, 500 units.

We totally agree.

You guys come on with us,
we'll grow those to thousands.

I don't know that any
of us solve that problem.

Okay. My suggestion to
you first is call all of them.

Instead of working
against each other,

you work together, 'cause
if you can build the pie,

you all will grow.

It's such a nascent,
tiny market right now.

I just don't see
it as a fit for me.

So for those reasons, I'm out.

Guys, T-N-G-N-T
does not say "tangent."

It's "tuh-guh-nunt."

Like, I mean...

My son loves math,
and he's like, "Hey, Dad,

it's like a tangent off
of bicycling and skiing.

Let's call it Tngnt."

And then the next kid said,

"Well, let's do it
without vowels."

What's the logo
supposed to be? A fish?

It's two G's back to back.

I think it really
sucks. Alright.

It actually looks
great on a cap.

They're letters that
you can't remember.

When you can't remember
them, it doesn't quite say it.

I just think is terrible. Okay.

But most ski areas
today have quad chairs

that accommodate
like five skiers. Yeah.

This takes away too much
revenue from the ski slope

because it takes up two spots

every time you go
up the mountain.

Ahh. And, frankly, I think
you have a bigger issue

getting adopted by the
mountains themselves.

I'm out.

O'Leary: Alright,
guys. It has merit.

But this "tuh-ni-gunt"
thing is bothering me.

I don't know. Just
it's interesting.

And I could make
things happen. Yep.

But the little Mr. Wonderful
on this side's a guy saying,

"What are you, an idiot?

You'll spend all
day working on this."

It's actually one of those deals
I could have gone either way.

But... Go that way.

I know, but... [ Laughter ]

Come our way.

Sorry, guys. I'm out.

Listen, I'm sure
it would be fun.

It looks cool. It is.

But you haven't sold a ton,
nor has your competition.

The market's spoken,
and I listen to that.

Yeah. You guys are wonderful.

But unfortunately, I just
don't have confidence

in it as an investment.

I'm out.

So sometimes you've got to
give the consumer what they want

and you've got to
read the market.

And sometimes you
got to create a category

and people don't know
they want it until they have it.

Exactly.

My view of this is super cool.

I want to get on it right away.

I mean, if it goes fast,
I'm gonna try it. Yeah.

But the challenge, I think,

it's getting other
people to think it's cool.

So I have a good friend of mine.

He's an Olympic gold
medalist in winter sports.

And I think you need
somebody of that stature to say,

"Yeah, I think this is cool,"

so... I'm gonna
make you an offer.

♪♪

Narrator: Four Sharks are out.

But Robert is interested.

In Scott and Bill's ski
bike company, Tngnt.

I have a good friend of mine.
He's an Olympic gold medalist.

I think you need somebody
of that stature to say,

"Yeah, I think this is cool."

What I wanted to offer
was $200,000 for 40%,

and I was gonna
give half that equity

and see if we could
bring him in on it.

He doesn't want to get paid. Will
he be coming here today, Robert?

He doesn't want to license it.

It's Shaun White. Oh.

It's not contingent on
Shaun White coming in.

I'd love us to pitch it to him,

but my offer is
$200,000 for 40%,

and I think we need to
bring somebody into it,

hopefully Shaun or
somebody of that level.

You have an offer.

Can we chat for like
three seconds? Yeah, chat.

Is that okay? He's
gonna change his mind.

Wow. [ Indistinct whispering ]

I think you're gonna get it.

You have to validate the sport.

Alright, Robert, would you
consider 30% for $200,000?

No, no, no, no.

I knew you were gonna do that.

I'm not gonna
negotiate that offer.

That's the number I need.

♪♪

Robert, welcome
to the Tngnt family.

Boom! Horrible logo.

Horrible logo. Congratulations.

We got to change that. We
can talk about that, for sure.



- Thank you.
- Thank you so much.

Thank you, Robert.
Congrats, guys.

O'Leary: You did a great
job, guys. Greiner: Good luck.

Get his check very quickly.

I can't believe this,
man. Oh, my God.

Now we got a deal with Robert.

That is awesome. Oh, my gosh.

Oh, my. Oh, my gosh.

We knew we needed the
muscle of a Shark like Robert

to help us take
this to the next level.

We've been working
on this for six years,

and really, that resource for
us is going to be invaluable

in expanding Tngnt... or
whatever we rebrand to.

Cuban: You do have
to change the logo.

Herjavec: The logo sucks.

You know, you're on the
hill. They say, "What is that?"

You say, "It's a "ka-nin-tik."

Kevin, you look like you're
on your rocking horse.

Ka-nink-it.

Ka-nink-it.

[ Laughs ]