- These are the sharks--
- five powerful,
self-made investors
worth billions.
Tonight they will
make or break the dreams
of hopeful entrepreneurs.
♪♪♪♪♪
In the t*nk, the sharks
are ready to invest
using their own money,
but only for the right person
with the right idea.
- We put all our blood, sweat
- and tears into that company.
Don't cry about money.
It never cries for you.
In the worst economic times
since the great depression,
- the sharks are the last chance
- for entrepreneurs
to get the financial backing
they desperately need.
The offer's $1 million
for 10%.
What?!
- Why are you being
- so greedy?
I've made you a good offer.
What are you gonna do about it?
Do you want it?
Yes
who are the sharks?
- Kevin O'Leary
- knows how to make money.
He started a software business
in his basement,
- Kevin o'leary which he eventually sold -
knows how to make money. for $3.2 billion.
Barbara corcoran--
this fiery real estate mogul
turned a $1,000 loan
into a real estate empire
worth hundreds of millions
in the shark-filled city
of Manhattan.
- Kevin harrington
- is the king of infomercials.
- His gehis marketing
- of products
such as the Obama coin
and the rock 'n roll stepper
- have amassed
- billions of dollars in sales.
Daymond John literally turned
rags to riches
with his clothing brand fubu,
which has grossed over
$6 billion
in worldwide retail sales
to date.
- And Robert herjavec, wc, whod
- his Internet companies
for over $350 million.
Now this self-made
technology magnate
is a venture capitalist
and runs
his own software company.
If the sharks hear a good idea,
they'll fight each other
- for a piece of it. - Robert just offered you nothingno, I didn't.
- And told you to pound sand. I didn't do that.
I gave him a sh*t at the brass
ring. you're giving him nothing.
But first the entrepreneurs
must convince the sharks
to est the full amount
their asking for
- or they'll walk away - with nothing.
- Would you consider--
if you do counter,
I will counter.
- That's what I love
- about money.
It has no soul.
It doesn't care.
♪♪♪♪♪
♪ 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 into the shark t*nk
- is tod Wilson,
who has been unable to get
a loan anywhere else.
He has come to the shark t*nk
for his last chance
to get the money he needs
to grow his business.
♪♪♪♪♪
I'm tod Wilson
from somerset, New Jersey.
I'm the owner
of Mr. tod's pie factory.
Can I have a personal
sweepotato pie?
Would you like anything else?
There's a big demand
for our pies,
especially the little
sweet potato pie.
The people a are lin up today.
It's freezing outside,
so they want something
warm and tasty.
- A lot of people talk about
- making fresh pies.
- We actually do that. These are
- raw north Carolina jumbo yams.
- We process anywhere from,
- you know,
- 5,000 to 6,000 pounds
- of yams a week.
We're here at the pie factory.
- I got a fresh batch of pies
- coming out the oven--
some hot apple pies.
We sell over 3,000 pies a day,
all going through
this one oven.
Good afternoon.
Mr. tod's pie fae fact
pies are my livelihood. I mean,
this is what I do for a living.
I take it very serious.
- When I first started,
- I was eager, I was younger,
I made some bad decisions--
bad decisions
that cost me everything.
Okay, how you like your coffee?
I've sacrificed a whole lot.
I'm on my third bank loan.
That's not an option anymore.
So I have no other resources.
I'm just tapped out.
Do you have
any coconut today?
Right now I just need
- someone like the sharks
- to believe in me.
Okay, man. Good seeing you,
all right?
♪♪♪♪♪
Let's give everybody
some pies.
- Hello.
- My name is tod Wilson.
I'm from somerset, New Jersey.
In exchange for $460,000,
I'm offering you a 10% stake
- in America's
- next greatest food brand--
Mr. tod's pies.
Thank you.
Got some great samples
for you today--
sweet potato pie--
wo what is that?
What did I just try, tod?
That is the, uh,
buttermilk coconut pie.
Coconut custard.
That is fantastic.
Thank you very much.
We've got sweet potato
up there, pecan,
chocolate pecan.
And as you can see,
I believe in my product.
Mmm.
Who is
the walking stuffed guy?
And as you can see,
I believe in my product.
That's Mr. pie man.
Mmm. he's part of the brand.
Where are you selling these
right now?
Well, right now, our major
market is on the wholesale side,
and we sell a sweet potato pie,
and this is what has made me
a local brand in the area.
This is real stuff,
to the tune
of almost $1 million in sales
last year selling these pies.
Come on. Hang on. You got
$1 million in sales last year?
$850,000, sir.
Did you make money
on your $850,000 in sales?
Yes, sir. We've been averaging
about 20% a year net income.
Really?
- Yes, sir. We're a wholesale
- and retailer.
- So--so, tod, you're selling
- these pies,
you're doing a million a year--
$850,000--
you got a cute little mascot
who follows you around.
'S the problem?
Why are you here?
- Well, the problem is, I can't
- keep up with the demand.
- I've got everybody from, uh,
- national food service chains
to local and national
fast-food restaurants
that want to carry the product,
in particular,
my sweet potato pie.
That's my bell cow.
- What percentage of y your
- 800-plus thousand in sales
is the sweet potato pie?
Well, the sweet potato pie
represents 94%
of my wholesale business,
which is about 50%
of the $850,000.
So half of the revenue
comes from one flavor?
That's correct, sir.
How many flavors
do you have?
Over 30.
Why?
Well, we're a wholesale
and a retailer.
- Yeah, but it's so clear
- right away here
that if you are
the sweet potato pie guy,
that's all you need to be.
What's the unique aspect
of the pies?
It's a family recipe.
- It's a recipe that my mother
- and I have been working on
for the last 15, 20 years.
Once you get the money,
are you gonna build a new oven?
What are you gonna do?
The majority of the money--
approximately $300,000--
- will go towards outfitting
- a production facility.
Uh, we also want to get
some type of street team level,
um, marketing going
where we go out into the cities
and push our pies.les.
How did you get into the pies?
I got in
through the pie business
because my competitor--
- I helped him start that business
- prior to going to college.
When I finished college,
I decided it was time for me
to move out on my own.
My first time out, I got
an m.B.A. In the streets
when I realized I started off
too big too soon.
I spent the next four months
living in my car.
I regrouped,
got myself back together,
and I said, "lord,
give me another chance."
- And with the--
- six, seven years later,
I've got two locations
and a bobooming wholesale business.
Tod, don't cry about money.
It never cries for you.
Kevin's wrong.
If you're emotional
and you're great at something,
the money will fwillw.
Yes.
I think you're not doing this
for the money.
You did this to prove something
and you're successful because
you're passionate about it.
Let the guy cry about it.
The guy loves what he does.
What's wrong with that?
Make no mistake.
I am here to make money.
- But I'm a businessman, too. - I might be a nice guy, this
is a professional - a little overweight, business--wholesale.
You don't sell to kids
on the street. Why the mascot?
We take the pie man
into the schools.
- We have a program--
- pies for good grades.
These are the things that
- have helped make me successful
- the second time around.
They told me don't spend that
kind of money on that mascot.
And it's--it's been phenomenal.
It's given me my money back
a hundred times over.
Do you have hard-copy orders
with people saying,
"here, here's an order,"
that you can't meet
production on?
Well, there is a very big
national fast-food account.
It's gonna allow us to open up
a Mr. tod's kiosk
- within their store.
- What is the name of the chain?
McDonald's.
What?! McDonald's?
This sweet potato pie
is to the Southern United States
and African-American community
what the bagel is
to the suburbs.
- Fast-food chains
- like McDonald's
do the majority of theirofbusiness
in inner-city markets.
- They need to have a product
- on their menu board
- that's representative
- of the people
who do business with them.
Tod, I like you,
I-I love the story...
Uh, but I'm not gonna
give you the money.
- And I'll tell you why I'm not
- gonna give you the money.
I'm afraid if I give you the money,
- you're gonna
- start cutting corners
and trying to expand too quickly
again like you did before.
And--and I'm not sure
that this business
- can be ramped up
- by an infusion of cash.
For that reason, I'm out.
- Tod, I would wanti would whack - 51% of your
company, maybe more. the stuffed pie guy.
- He's an ex--
- he's a cost I don't need.
- And I would try
- and drive margins
just wholesaling one skew--
sweet potato pieta
your sales would be cut in half.
You'd make a lot more money.
I don't get emotional about pie.
- I don't get emotional
- about t money.
I just want to make more of it,
and that's how to do it.
But it doesn't fit your world,
so I'm out.
Thank you, sir.
You know, tod, $460,000
for 10% gives you a...
About a $4.6-million value
that you're putting on--
on your business,
and that's
a-a tremendous multiple.
So on that basis,
I'm out also.
Three sharsharks out.
Tod only has two more chances
to keep his business alive.
Barbara...
Daymond...
What do you want to do?
Re out.
Barbara and daymond
are still in.
Will one of them give Mr. tod
the financing
he desperately needs?
Barbara...
Daymond...
What do you want to do?
I'm not out,
but I Don'don't to go in
for as much money as you need,
so who do we have left?
- How about you, daymond?
- Can you come in with me on this?
Because can I tell you? I love
what I hear. And I have no doubt d
you don't have to learn
the same lesson twice.
So I'd like to go in for half,
but I need twice the equity.
but t I want0% for that.
Daymond?
You know what?
This is a-a very tough
decision for me to make
because you remind me of me.
But I would need
And then if you want to go in
half, we'll go half on it.
But I would also need
d ee orders, real orders.
Because how are your customers
paying you at the moment?
On the wholesale side,
it's mostly, uh, cash.
Cash customers.
That cash, in this--in this
economy, is gonna dry up.
Well, I certainly understand
what you're saying, sir.
Uh, you know, I I recent read,
uh, an article in a magazine,
and it talked about
the seven best industries
- for the recession, and one
- of them was comfort foods.
- I'd like to say,
- when we're not feeot f good,
- we're feeling a little down,
- you go get something
- that makes you feel
- a little better.
And that's
what Mr. tod's pies does.
Tod, stop for a second.
Who doesn't love pie?
- Stop for a second, 'cause this
- is one of those moments.
You gotta really think about
this, 'cause you're a good guy.
I don't want you to leave here
and make a mistake.
You came in here
only ready to give up 10%.
If you accept their offer,
you'll be giving up
half of your company.
Think about it.
Would you consider,
in exchange for me
accepting that form--
if you do counter,
I will counter.
Ooh.
I like that.
How do you like those pies?
Yeah. see? All of a sudden,
- the old fun, emotional stuff--
- out the window.
That's what I love
about money--
no emotions, no tears,
just reality.
Are you gonngonna us
an answer?
Yes or no?
I'll take it.
Great.
All right.
Congratulations, tod.
Thank you very much.
Yeah.
- That's great, tod.
- I don't even like sweet potato,
- but I'm happy to be in.
- Thank you very much.
- Thank you. Mm.
- All right.
- Congratulations, man.
- My pleasure.
Good luck to you, tod.
Good job, tod.
Good luck
to you as well. Whoo!
I still whack the pie guy.
It was tough giving up
half my company,
but it saved my business,
and it's gonna help
take it to the next level.
♪♪♪♪♪
Next up is Darrin Johnson,
- who hopes
- his innovative new product
will send the sharks
into a frenzy.
My name is Darrin Johnson,
and I'm here today
to explain the ionic ear
investment opportunity.
How much money
are you looking for?
I'm looking for $1 million
for a 15r a nership stake
in the technology.
Oh, yeah.
What we have developed
is an implantable
Bluetooth technology.
If you've ev--are one of
the 40% of the users
of Bluetooth technology
that currently own it,
- you know that just
- the natural rhythm
- walking many times
- es perspiration--
the technology
will fall off your ear.
If you answer the call
too quickly,
many times
the Bluetooth device
will become dislodged.
I'm sorry.
Where are you implanting this,
into a--into another device?
What are you
implanting this into?
- No, it's actually going
- into your ear.
In your ear how?
You're pushing it in?
If I could direct your attention
to the first slide.
Here is
the surgery locations.
- This is just underneath
- the earlobe.
The surgery location?
This is--
this is surgery.
- You would be
- under anesthesia.
God.
You guys are so closed-minded.
Please let him finish.
Okay, okay.
Thank you. Tha thank.
- At the base of the device
- is a battery.
- Within its center
- are Bluetooth electronics.
And at its tip,
- within its center a microphone, a speaker - are
Bluetooth electronics. and an a.C. Charging port.
- Stop right there.
- The charge is--
back to surgery 101.
Okay. sure.
Darrin, we're gonna--
we're gonna operate on people.
Yes, we are.
Huh.
We're gonna stick something
in near their brain.
No, no, no, no.
We may not puncture
their ear--
you know what? I-i can sum up
where I stand on this already.
It's pretty disturbing
and it freaks me out.
I'm already out.
- Darrin, how do I charge it
- every night?
So we have the--
the a.C. Charging port.
So you stick that
needle in your head every night
to charge it?
Yes, you would.
- Okay, one little thing. - Whoa, whoa,
- whoa, whoa. Hang on.
Are you... seriously?
Like, seriously--a needle?
It's like
a small q-tip cylinder
that would dock
with the charging port.
What happens if you miss?
The target's built
so that you can't miss.
You can't miss? Really?
Sure. there's going to be
safety features built into it.
- Darrin, I need to be clear
- on this before I write you off
- as a nut job, jobwhich I'm trying not to do.
- Okay. I appreciate that.
But I have to understand--
a team of doctors implant it
in your neck below your ear...
Sure.
And then you stick something
in your ear in the evening,
- something, what, commensurate--
- something that's the size
- of a q-tip or smaller
- to charge it every night?
- Something that's
- the size of a q-tip--
a cylinder that delivers a.C.
Charge at a very trickle, low--
Darrin, I'm out.
H-how do I do an upgrade? I go
back and get another operation?
Well, you--you would
have to go ingo
- and receive
- an additional operation.
- Do you see
- a problem with that?
- Sure. there--there--
- certainly, there is issues.
Darrin, I have a problem
with t that. Im out.
This is the weirdest damn thing
I ever heard.
Oh.
The first time that you
heard of breast implants,
what did you think?
I love it.
Right. okay.
But as a woman--
as a woman, would it be...
Bluetooth breasts!
Something that you would
immediately want to do?
Or would it take market
acceptance and a lot of testing
- and a lot of medical trials
- before people accepted the idea?
Okay, all right. Have you
told anybody else
except us in the roo roomabout this?
Yes, I have.
- And you're still
- walking around free, I see.
Sure.
Don't call me.
I'll call you. I'm out.
Okay. appreciate that.
- Darrin, here is--
- here is insanity,
here is genius.
You're somewhere.
Nevertheless, I'm out.
Thank you.
Did you see
the size of that thing
that he wanted to put
in your ear?
- One time in the shower,
- you're gonna just short out.
- He's so far ahead
- of his time.
- Thank god I won't be alive - when his time comes.
- Yep.
- Who desperately needs
- an investment from the sharks
to keep his dream alive.
♪♪♪♪♪
My name is Kevin flannery.
I'm from Cary, north Carolina,
ina, d my product is wispots.
So this is my home office,
which doubles
as my little girl's playroom.
This is where I spend
the better part of my day,
uh, making things happen.
- I am a former marine. Or once
- a marine, always a marine.
I have been working in wireless
technology for nearly 20 years.
Hey, Mark.
It's Kevin flannery.
- I wanted to give you a call
- and let you know that, uh,
- we decided that, um, investors
- can take partial units.
- I left my leevious position
- so I could put
- all of my time, energy
- and effort into wispots.
Hi, angel.
I have funded my business
through, um,
mortgages on my home.
- Unfortunately I had to
- put it up for sale
- 'cause I just can't keep up
- with the two mortgages
on the home now, which--
- it hurts, because that was
- my dream home.
- It's, uh's, ere
- my youngest daughter was born,
uh...
I--it gets me emotional
when I think about it.
Dear lord, give us grace
- for this wonderful food - we are about to receive. Amen.
- Amen.
Family is everything to me.
Um, I didn't grow up
with family.
- I bounced around for the better part - in
foster home to foster home of my teenage life.
- So it's extremely important
- for me to be a good father
and to take care of my family.
And I do anything
and everything I can
to make sure my family knows
that I love them
more than the air I breathe
and that I'm fighting hard
to build a future for them.
♪♪♪♪♪
Hello.
My name is Kevin flannery.
I'm the president and c.E.O.
- And founder of wispots--
- the future of waiting patiently.
I'd like to thank you all
for letting me
take a dip in your t*nk.
I hope you don't bite.
I'm here seeking
$1.2 million in funding
for a 10% equity position
in min my any.
Whoa.
You better have
a ton of sales.
Okay.
Wispots is a business--
- an innovative business model--
- that has six years
- of research and development
- in the retail, health care
- and media space
- already in place.
What's the product?
As you see here, this is
our patient interaction center.
I'm sure all of you have had
to go to the doctor's office,
- and you take your loved ones
- to the doctor's office.
- Your choices have been
- read an old magazine
or watch somch sring content
on a screen.
- With the wispots
- patient interaction center,
patients can walk in,
pick up any one of the five
wireless web pads
- take them back to their seat,
- check in, fill out surveys,
sign up for clinical trials,
request educational information,
surf the web,
check and send e-mails,
play games, all for free.
When they're done,
- they just put it back in the--
- in the charging cradle.
- And it provides a revenue source
- for the doctors,
- so the doctors
- want it in there.
Okay, we get iwe walk us
through the economics.
- Who pays for this
- in the doctor's office?
Pharmaceutical companies,
media buyers and advertisers.
How much does it cost to put
that tray with these screens
in a doctor's office?
A little over 9 grand.
- Whew.
- $9,000.
- Mm-hmm. - Where does the $9,000
- come from?
The doctor's pay for it,
but it's a no-risk opportunity.
They're nevee ne gonna pay for it.
- They already are. I'm getting
- contracts in place as we speak.
You--you're saying
- you do have doctors
- that have given you $9,000?
Doctors have signed contracts.
Here's the catch--
it's the c*ptive eyeballs that
the media buyers want to see.
Yeah, but get back to the money
because I don't understand it.
The doctors have sig signe
contracts for $9,000 each
contingent on
you getting ad sales?
It's a little complicated.
They either pay up front
or they pay a lease fee,
but they don't pay us until
we fill x-number of real--
ad real estate.
Kevin, if you're frustrated
in the doctor's office...
Mm-hmm.
And your tree isn't there...
And you want to check
your e-mail, what do you do?
If you brought your laptop,
you can use your laptop, but--
is there another device
that could allow me
to take my e-mmy ewith me?
Yes, and--
I wonder
if anyone's invented that.
- This isn't just about e-mail.
- It's about content delivery.
- And most doctor's offices
- now require you
- to turn your phone off
- when you walk in the door.
- Kevin, have you put money
- into this on your own?
I have put over $550,000
of my own money.
I've mortgaged my home twice.
I've...
Mortgaged my home twice.
I've taken my kids'
college funds, my 401,
all my savings and a mountain
of debt on my credit cards.
Wow.
Stop right there.
I'm gonna do you a huge favor.
Here's how I think
of my money--soldiers.
I send them out to w*r
every day.
I want them to take prisoners
and come home
so there's more of them.
Your army, every soldier dies
that you send out every day.
- When you have no soldiers,
- you're wiped out.
That's the game of life.
Stop this madness.
I am so out.
I'm thinking
you're not understand--
I mean, it--the inter--
it's not about e-mail.
We're fully understanding.
- I hai haveundamental problem
- with the concept.
If it's not about e-mail,
because you could do
e-mails with your phone,
um, it's about advertising.
But I'm not gonna pick that up
just to look at ads.
I have to say, I'm out.
Okay.
- You know what?
- I have to say,
- I respect your enormous
- commitment to this idea,
that you'd go at such risk.
But you know what takes
a lot more courage? Quitting.
I'm out.
You're risking
your children's college
- and your home
- you're living in for this?
I came from nothing, and I
want to give them something.
Yes, but you came
from nothing
- and you're mortgaging
- what you have.
Stop. anyway, I'm out.
Okay.
Four of the sharks are out...
But Robert seems conflicted.
Kevin, I feel so bad for you.
My mom and dad and I came--
we're immigrants to the country.
We came here with nothing
on a boat.
- I'll tell you, my dad's
- a factory worker,
never made any real money, but I
learned somethining fromim.
You always
have to save your money
so you don't put
your family at risk.
You gotta take care
of your family first.
Here's belief...
And here's being a fool.
Don't cross that line.
I'm out.
- Appreciate
- all your opinions.
Thank you very much.
Thank you.
- Appreciate god, - all your opinions.
that was heartbreaking.
That's the dark side.
This is the problem
with false encouragement.
You know, most people
never get a chance
to meet a bunch of people
who've done it before
and get some real,
unbiased advice.
Who is sure she has an idea
that will make millions.
Will she sink or swim
with the sharks?
♪♪♪♪♪
- My name is Tiffany krumins.
- I live in auburn, Georgia.
It's a tiny little town
with about a thousand people.
It's got one light.
I ve living here
with my family.
I am a nanny for a little boy
named gibby.
Here's gibby.
He is a big part of my life,
and actually one of
the biggest inspirations
for my product.
I've found over the years
working with kids,
and now having my own,
that there's little things
that you have to come up with,
uh, to get a kid to do
what they need to do,
whether it be clean their room
or, uh, take medicine
or eat eat t peas.
Open wide!
- Open wide!
- Yay!
I know that I'm gonna
walk in, and they may think
that this girl is from
some tiny little town in Georgia
and doesn't know
what she's doing,
but I have hope that they will
just be blown away with my idea.
♪♪♪♪♪
Hi, guys. I can see you saved
all the money for me.
That's good.
It's still laying there.
Um, my name is Tiffany krumins.
- I'm from auburn, Georgia,
- a city you have never heard of.
'S tiny. About a mile wide,
it has one light.
Um, but I have
a great idea for you,
- and hopefully you will want
- to invest in that.
Um, I'm asking you,
ngladies and gentlemen--
lady and gentlemen--
um, for a $50,000 investment.
In turn, I'm offering you
For thpast
two and a half years,
- I've worked with a little boy
- named gibby.
And, um, I'm his nanny.
He has down syndrome.
And because of that,
he gethe gr infections a lot.
It came time to take out that
medicine dropper every time,
and gibby would go from
angel to pro wrestler.
I mean, he just...
Did not like the process.
So I thought to myself,
there has to be
a better way to to dos.
So I'd like to show you Emmy.
This is her.
You take
the medicine dropper out,
you suck up
the right amount of medicine,
put it back in,
and you would d approa
your kid and you would--
or the child you're watching,
and you press the button...
One, two...
This is the saying
I came up with on my own.
- She says, "one, two, three.
- Open wide."
- And then she tells him
- a good job.
- And as you're doing that,
- you press it out in their mouth,
- and it works
- every single time.
- I don't care
- what your kid hates,
they will open their mouth
and smile, and it will work.
This is a homemade prototype,
and I'd like to
hand tnd theut to you guys.
It's only for ear drops? It's--
no, s--uh, no, sir.
- He had ear infections, so he
- had to take medicine orally.
- Oh, it's for oral...
- Yes, it's all for oral.
Any medication.
But you could,
I guess, yeah.
But doesn't the child
at some point
- look at that elephant
- and say,
- "that elephant gives me
- a lot of bad medicine"
and get unhappy with--
well, I had an idea
about that.
Don't give him one.
But do you think that would
happen after a while?
They'd ass'd ate this snout
with just a lot
of ill-tasting stuff?
- Well, they associate it already
- with the medicine dropper,
so I assume no.
- I think they could
- eventually like this.
- And it's not ill-tasting
- anymore. they flavor it.
- They can make it cherry.
- They can make it all--
- it's not really the flavor
- so much. It's the process.
- Do you have a patent
- on this?
- Uh, no, I don't.
- Not yet.
- I did a patent search,
- but I never got to the--
but nobody else has patented
anything similar?
No. no, nothing like it.
Have you looked
into molding this,
getting a mold made...
Um...
For--for this?
No, I haven't,
- because last year when I went
- for my patent search,
they told meme--
they recommended not going to
factories and that kind of stuff
because I would obviously have
to tell 'em what I'm making.
Right.
Um, so to be completely honest,
this is the point that I'm at.
I know I have a good idea.
I know I'm a hard worker.
I know that it works.
What would you like to use
the $50,000 for?
Uh, patent, and hopefully
a working prototype.
Have you
tested this repeatedly
- against a child's interest
- in it, again and again,
to see if they tire of it?
I feel like I've tested it
on the hardest child
I could ever test it on--
gibby, the little boy I--
I worked with.
Listen, first of all,
I just want to say,
it--it warms my heart to see
that you care so much,
but how do I personally
profit from it?
Right. you could make
a lot of money on this.
But it's not a business.
It's an idea.
- We're talking about selling
- that right there for about $10.
- I totally believe
- what you're doing,
- I just don't know
- how hoake money with it.
- I'm sure people said that
- to you, though,
about your company,
didn't they?
And you know what I did?
What if this doesn't branch--
I got down like a dog
and bit their ankles.
It wasn't just about a--
a medicine-snorting elephant.
It has to be bigger.
It has to be bigger.
It's gotta be a business.
It can be one day.
There's nothing wrong
with what you're doing,
and I want you
to profit from it.
But in my mind, there's no place
for me in this equation.
You mean you're not
putting your money up.
No, Tiffany. I'm out.
But, Tiffany, do you
really need my $50,000?
Absolutely.
Why?
In order to do the things
that I need to do next--
the patent, the prototype.
I think you could walk in
to one of the big companies,
- make a sales call,
- go through what you did here,
'cause you did a great job
with it, and make the sale,
- and work out a licensing deal,
- and you're done.
Maybe. I might
be able to do that.
For that reason, I'm out.
You know what?
I like the idea. I like you.
But it's an an it
it's not a business.
I'm out.
I look for things that have
a little bit of a track record.
Um, you know, by the time
you get done tooling this
and getting the samples
and the molds
and the engineering
and the patents and all of that,
that's gonna take some time
and obviously some money.
Um, although I think
it might be able to work,
I-I have to say, I'm out.
Four sharks are out.
Barbara is Tiffany's
only remaining chance
to bring her dream
of Emmy the elephant to life.
Tiffany, I'd like to speak up...
Because I love this idea.
Okay.
And as much as I like
the product, I love you.
The problem I have with the deal
is it's too rich.
I'd have to, like,
dream at night
hoping to get
my money back long-term.
- But if you're willing
- to give me
- the majority share
- of your busisiness--
and I'm a good guy
to be in business with--
if you could give me 55%
of your business...
I'd be very happy
to hand you over that $50,000.
What happened to all the love?
I love this lady, but the number
has gotta make sense
what happened to all the love?
So the numbers for me make sense
at that different point.
Tiffany, I've made you
a good offer, I really believe.
A genuine offer.
What are you gonna do about it?
Do you want it?
♪♪♪♪♪
Tiffany...
Yes.
I've made you a good offer, ier,
ally believe. A genuine offer.
What are you gonna do about it?
Do you want it?
$50,000 for 55%.
Is there any way
to talk you down?
I'm trying to play hardball.
Can you tell?
Am I doing a good job?
Not--not goo good ll.
I know. I'm not good at that.
Which is what your charm is,
by the way.
I'm not good at that.
- Well, I understand completely
- that one of
- the most important parts
- of this whole process
is what you all know
and where you've been,
how far you've gotten,
the connections you have.
So that to me e means, eally,
more than the money.
I mean, there's ways
to get the money.
- What are you gonna do about it?
- Do you want it?
You know what? I'd love to take your offer.
I'm so happy. We're gonna
make money on this together.
All right. Great.
You're gonna like me a lot more
than the guys. Trust me.
I am.
- They were actually all
- very nice to me, though, so--
- they're nice, but they didn't
- give you the money.
- They didn't, so I guess they
- weren't too nice, were they?
I'm very happy. just the beginning.
Yes, it is.
Thank you very much.
Really. I know that. Thank you.
- Congratulations.
- Congratulations.
Thank you.
That was great.
Hey, you know what
I loved about this girl?
- She had great passion,
- and more than anything else,
she reminded me of myself.
I saw myself looking at her.
There's no way that girl's
not gonna make it.
I'm excited because I think
- it's gonna be
- a really big opportunity.
Her mentorship is gonna be
the best part.
Next up are Omar soliman
and Nick Friedman,
- who want the sharks to invest
- in a spin-off venture
- of an already successful
- business--
college hunks hauling junk.
Will the sharks bite?
How's it going?
My name is Omar soliman.
This is my business partner
Nick Friedman.
- And our business is
- college foxes packing boxes--
- the educated choice moving preparation -
in professional organizing, and unpacking.
Imagine you were getting ready
to move from a house
you've lived in for 30 years.
- You literally have
- a lifetime worth of belongings
that you need packd pasorted,
decluttered and unpacked.
Who would you rather handling
your personal belongings--
this unprofessional,
unlicensed, uninsured mover
or these
professionally trained,
enthusiastic college foxes
packing boxes?
But, Omar, the problem is,
who would my wife
want to have do the moving?
What are you looking for?
We're looking for $250,000
for a 25% equity in our company.
When you invest in a business,
it's not just the idea
- you're investing in,
- but the people behind the idea.
- You want someone
- that's cut from the same
entrepreneurial cloth as you--
savvy, driven, a proven winner.
Omar and I founded
our first business--
college hunks hauling junk--
which is now the largest
and fastest-grest-g,
- U.S.-based junk removal
- franchise opportunity.
"Inc." magazine
recently named Omar and I
top 30 entrepreneurs
in America under 30...
Wow.
- And "entrepreneur" magazine
- named college hunks hauling junk
the top 30 new franchise
opportunities for 2009.
Very impressive.
And we plan to leverage
our economies of scale,
- our software, our call center,
- our marketing plan,
- our client base
- and our franchise program
- to grow college foxes
- packing boxes--
so the hunk business
is not on the table? Bl
the college hunks
hauling junk--
you have a successful business.
Right.
But you don't want
to sell me that.
You want to sell me
a new business.
Exact--well--
why would I ever
give you dollars
for one that I have no idea
if it's gonna work or not
without getting a piece
of what's working,
when really it's just
an extension
- of something
- you've already built?
We're not idiots up here. And if
you want to get $250,000--
- is that the number?
- Yes.
- We're gonna take a huge piece
- of your existing business.
Are you gonna work
in the fox business?
- We're gonna hire a c.F.O.,
- a chief fox officer--
- [Robert and O'Leary - speaking
indistinctlnctly]I can't wait to see - her.
I'm gonna give you my money,
and then you're gonna put
your energy into the hunks?
- It's peanut butter and jelly,
- because you're gonna benefit--
- yeah, but you have
- the peanut butter. Ut
- you're not giving us
- the jelly.
You gotta package both
businesses.
What are your sales?
- For college hunks
- hauling junk
- or college foxes
- packing boxes?
- Forget foxes.
- The one that's working.
- We netted
- $500,000 last year.
- Ooh.
- Sales.
We had a profit margin
of about 20%.
Ca-ching.
This is why
we gotta have the hunks.
Hey, that--that may not
sound right on TV. Hang on.
I think the attractive thing
that you've offered here
- is that you have built
- this infrastructure,
and the existing success
that you've already proven--
if you're gonna leverage it in,
le have
a piece of that also.
Guys, I'm gonna make you
an offer right now.
I'll do 51% for 250k.
For what?
The existing business.
Everything, everything.
Don't laugh so fast, buddy.
It's not easy to come up
with $250,000.
Be very careful. Never laugh
at money. Think about that.
Why don't you offer us
the hunks and the foxes
for a dollar amount?
- I'm serious.
- Why don't you start agait ag
go back out and start again.
Come back in
and make us an offer
on the overall business.
Okay.
They have to be combined.
- It's gotta be one businessness. That's
the only way - that the deal makes sense.
I mean, we didn't come on here
to give up anything
- of college hunks hauling junk, - right?
- Right.
I mean, we started that from
scratch with no investment.
They don't see
that a $250,000 investment
- can spin
- college foxes packing boxes
- to a 70-franchise op--
- location in 2 years?
- You wantnt to
- throw out a number?
- You know, we're talking about
- a very viable,
successful business here
that we just--
we can't sell it short.
Okay, guys,
what do you say?
Look... we built
college hunks hauling junk
from a cargo Van
- to a $3-million company
- in 3 years.
We put all our blood, sweat
and tears into that company.
There's no way we can
sell ourselves short
for that amount that you off--
that you offered of $250,000.
You take it or not?
They said no.
What's your offer?
Okay, what's your offer?
The offer's $1 million
for 10%.
What?!
Are you guys out of your minds?
Bear with me.
Guys, I want to tell you
something right now--
- you will never, ever--
- either of you--
get to this side of the table
doing a deal like that, ever.
You know why
you're wearingearise ties?
You're pigs.
Pigs get slaughtered.
You're asking
for a ridiculous valuation.
Crazy. insane. Your business
isn't worth $10 million.
It's worth maybe,
if I'm being really generous,
There's a huge difference.
How can that be--
how do you get that number?
- How is that possible?
- We have one location in D.C.
- That profits $300,000 a year. - I'm just
- talking about numbers.
Why are you being so greedy?
We're not being greedy.
- We just--we--we just--
- what, do you think I'm idiot?
- I'm gonna give you
- a $10-million valuation?
- I totally understand.
- If you don't see--
now you're pissing me off.
Look, why don't you stop this
crap and deal with reality?
- You really think
- you're worth $10 million?
- I-i believe the business
- is worth wor million.
I believe in 5 years,
- the business will be worth
- $10 million.
Oh, I'm so frustrated.
I'm so unhappy with you guys.
So--
you're right. I'm out.
Thank you. So that means
you get to stop talking, right?
That's good attitude.
That's good attitude.
Okay, you know what?
But I gotta tell you,
never insult money.
Oh, okay. so...
Uncle Kevin's out.
Uncle daymond?
I would just be uneasy with,
um, the fact of young girls,
uh, merofiting off of that,
because I just feel, you know,
- the calls would be a whole bunch
- of guys in trench coats.
- "Hey, I need to move again."
- We don't't have s--
I'm out.
These guys
have done a great job
- of building the business
- to this point.
But theyt thvaluing
their business based on
- where they're gonna be - in the future.
- Yes, exactly.
- We're valuing the business
- on where it is today.
So I'm--I'm out.
Barbara?
I have no doubt in my mind
you're gonna succeed
at your business
- just as you did
- the first business.
- But I think
- you want us to pay now
- with what it's gonna be worth
- five yea years,
and that's a tall order.
Nobody's comfortable like that.
I'm sorry. I'm out.
Four sharks are now out.
Only Robert remains in.
This is a tough one.
I think you did
a really good job
of being confident
without being arrogant.
When somebody insults you,
you shouldn't insult 'em back,
but you should
stand up for yourself.
So I like that.
Here's my problem--
you want to use $250,000
to take a risk on the foxes.
I have a problem with that.
Well, what if we came
to the table with--
hang on a sec.
I'll make you an offer.
Let's go 50/50 on the foxesxes
and give me 10%
for my investment.
In taking faith in you,
give me 10% of the hunks
for my $250,000 also.
Interesting structure.
That is a great deal.
Yeah.
And I am a great guy.
So you're saying $250,000
for 10%
of college hunks hauling junk
and 50% of college foxes
packing boxes?
Think of the 10% in the hunks
as my as materal
in case we crash and burn
on the foxes.
What do you want to do?
♪♪♪♪♪
Are out,
but Robert has an offer
on the table.
Will nk and Omar accept it?
What do you want to do?
So you're saying $250,000
- for 10%
- of college hunks hauling junk
and 50% of college foxes
packing boxes?
That is a sweetheart deal.
we can't mess with--
we don't want to mess
with 250 and 10%.
What are you doing?
We're gonna pass
sson offer.
Whoa.
That's just not,
in our view, fair
based on the blo t,
sweat and tears
we've put into the business
and the upswing that college
hunks potential has. Um...
Omar, Nick... bad mistake.
I think we're all out.
Thanks, guys.
- Good luck - to you guys.
- Thanks for your time.
Too bad.
I still like them.
- He should've taken my offer. - I like 'em a lot. my offer was a good offer.
- They're hustlers. You overpaid so much.
That's what kills me.
He didn't see the fact
- that I was willing to
- overpay to be involved.
- And yet he still s sd no.
- What does that tell you?
It tells me I can be
a real jerk like you
- and still end up
- in the same place with a no.
- You know what?
- I have no problem
telling a guy who's a pig
he's aig, and he's a pig.
- That's why it's called
- the "shark t*nk."
- It's not called
- the bunny t*nk.
They stheyed blood in the water,
they saw a successful business,
- and they just jumped
- all over it.
- Next week on "shark t*nk"...
- What would I pay for that?
Uh, $9.50.
Stop the madness.
Are you out of your mind?
- $9.50 for one?
- Yes.
- We believe that we could be
- the next big brand.
- I'm getting emotionally attached
- to it because it is one of
the best products
I've ever seen.
And I also love the product.
My offer is $500,000$5
I'll make you a better offer.
I'll give you $1 million.
You've seen a guy
screw his partners,
and I won't forget this,
Robert.
"Ooh."
01x01 - Episode 101
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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.