- 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.
I have a product
that people want.
They fall in love
with my product.
I just need some help.
- I never let emotion
- get in the way of an investment.
The sharks are ready to invest
using their own money,
but only for the right person
with the right idea.
I'll give you the $350,000
for 40% of the business,
and the 40% is nonnegotiable.
Take the money,
you crazy chickens.
But first, the entrepreneurs
must convince a shark
to invest the full amount
they're asking for,
- or they'll walk away
- with nothing.
This deal that you're
offering me is a shark deal.
You are dead to me
if you turn around.
Oh.
- And if the sharks hear
- a good idea,
- they'll fight each other
- for a piece of it.
Listen, this is my business.
I know this business,
and I need control.
Men always want the control.
Barbara, you are a black widow
in stilettos.
Who are the sharks?
Kevin O'Leary
is a venture capitalist
who started a software business
in his basement,
which eventually sold
for $3.2 billion.
Barbara corcoran
is fiery real estate mogul
who turned a $1,000 loan
into an empire
worth hundreds of millions.
- Kevin harrington
- is the king of infomercials.
His genius marketing
of products
- has amassed
- billions of dollars in sales.
- Daymond John
- turned rags to riches
with his clothing brand fubu,
which has grossed over
$6 billion.
And Robert herjavec,
a technology tycoon
who sold his Internet companies
for over $350 million.
♪♪♪
♪ 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 kwame kuadey,
who's come to the shark t*nk
to fulfill his American dream.
♪♪♪
My name is kwame kuadey. I live
in ellicott city, Maryland,
with my wife
and our newborn daughter.
Coming to America was
a big achievement for me,
- because, you know,
- where I come from,
- there are
- very few opportunities.
I grew up in a small village
in Ghana, west Africa.
- When I was growing up, we had
- no electricity or running water.
- I remember I used to
- do my homework at night
with a-a kerosene lamp.
Right out of college,
I was recruited into
a management training program.
- Recently, with how the economy
- turned worse,
my position got discontinued.
♪♪♪
I was devastated
when I lost my job
- because I had a family
- to support
and I had a new business
that I just started.
I run my business
out of our home.
Uh, my wife helps out
with the business.
- And it's a great situation
- because, uh, we get to work
on the business together
and spend time with each other.
Wee! wee, wee, wee, wee.
Ooh.
- The thing I'm most worried
- about right now
- is figuring out a way
- to support my family.
- I desperately need
- this money from the sharks,
- because I've already
- put in a lot of money
into this business,
and if I don't get
this investment,
- I'll probably have to give up
- on this dream.
♪♪♪
Hello.
I'm kwame kuadey,
c.e.o. and founder
of giftcardrescue.
I am here seeking
a $150,000 investment
for a 30% stake
in my business.
Each year, 10% of all gift cards
sold in the United States
go unused.
For 2008, $80 billion
in gift cards were sold.
That means there's
an $8-billion industry out there
of unused gift cards.
Well, giftcardrescue has
a solution to this problem.
We help people
- turn unwanted gift cards
- into cash.
And here's how it works.
You go to our web site,
- you enter
- your gift card information.
We'll tell you how much
we'll pay for your gift card.
On average,
we pay about 65% to 70%.
We'll then give you an address
to mail your gift card to us.
Once we receive the card
and verify the value,
we'll wire the money into your
PayPal account within 24 hours.
We then turn around
and sell those gift cards
on our web site
at a discount of 10%.
- And we make money on the spread
- between how much
we buy the cards for
and how much we sell them for.
And with very little marketing,
we are on track to sell $120,000
in gift cards this year.
Walk me through
the numbers a little bit.
You're saying you have
$120,000 in sales.
Is that the face value
of the cards you've sold,
or is that
what your portion is?
If I buy a $100 card...
Right.
- For $65
- and I sell it for $90,
the $90 is what counts
towards the sales figure.
So on that $120,000,
what was your profit?
So far this year,
we've sold $55,000.
- But we are on track
- to sell $120,000
for the end of the year.
Kwame, what do you think you'll
make on the $120,000, profit?
What will your profit be?
Our gross margin is 25%.
Wait a second.
That's where I'm stuck.
Okay.
There's a big issue
in your business model.
Okay.
What happens if all of a sudden
you have to buy
$100,000 worth of cards
and you only sell $30,000?
Who capitalizes the difference?
Over time, I have learned
which cards sell.
So you refuse people
that come to your site?
- You say, "I can't buy that card.
- I have no interest in it"?
Yes. there are about
It's mainly national retailers.
- There are certain merchants
- that I don't buy cards from
- because I know
- they don't sell.
- Your margin's good, and you've
- done a really good job
of answering all the questions.
Thank you.
So, kwame, you asked
for $150,000...
Mm-hmm.
For 30%.
Yes.
So that means 100% of it
is worth roughly $500,000.
Yes.
Why is it worth $500,000 today?
- Well, my valuation is based
- on three factors.
Number one is the sales
and--and--and growth potential
of the business.
Okay, so that's one--
potential.
That's one.
Number two,
I was contacted recently
by the biggest online retailer,
- and they wanted
- a partnership with me--
- do I know
- this online retailer?
- Yes, Amazon.
- Wow.
- Okay, - that's a good one.
- Because--yes.
That's a great one.
Give me the third one.
Give me the third one.
I think it's me.
Kwame...
I like you, I think
this is a great business.
But this is not the type
of business I love.
For that reason, I'm out.
Kwame, I'm not interested.
I don't think I'm the right
partner for you. I'm out.
Kwame,
I like the concept.
It's just not ready
for me to take the risk.
I'm really sorry,
but I have to say, I'm out.
I don't think you're worth
what you think you're worth.
So we're gonna start here.
I'll give you $150,000
for 50% of your business,
- because you're basically
- a start-up.
Let's start there.
I have a counteroffer.
Given the... work
I have done so far,
and the potential for it,
I'm willing to offer 40%
of my business for the $150,000.
I think 50/50 partners
is the right way to go.
I'm gonna write you a check
for $150,000
on an idea that's embryonic
behind a really good guy
that's willing
to work like a dog.
That's what I think.
But I'm not willing
to change my offer.
- Kwame, I have a twist
- to the deal.
I wanted to see
what you were gonna do,
but I'm glad you came back
with a counteroffer.
I think you're the real deal.
But I think you need more cash
than $150,000.
So I'm gonna partner with Kevin.
I'm gonna take it to $200,000
for 50% of the business.
And guess what. You get
two great guys to work with.
- This guy has screwed up
- my deal,
- but he's done it
- in a very good way for you.
I'll deal with you later,
Robert.
Every now and then in your life,
as you're trying
to chase the dream,
you get to a crossroad where you
have to make a decision.
This is one of those times.
Which way are you gonna go?
But he must give up
half his business.
So I'm gonna partner with Kevin.
I'm gonna take it to $200,000
for 50% of the business.
And guess what. You get
two great guys to work with.
Which way are you gonna go?
I will take it.
I think it's a great decision.
- It's a great deal.
- It's a good deal for you.
- Good deal.
- Congratulations, kwame.
- Thank you very much.
- All right.
- Appreciate it very much. - Yeah, good for you.
- Nice job, my friend.
- This is great.
- Thank you. I appreciate it.
- This is wonderful.
- Thank you.
Thank you all.
Good luck, kwame.
That was a good deal.
It's a great deal.
This guy is gonna pull it off.
Great deal.
You know what? We could've
gotten more from him.
Robert, you made me be
a nicer guy than I wanted to be,
and that's bad.
Deep down, Kevin,
I think we're twins.
I think we're both nice guys.
I think
you're the evil twin.
- This is what the American dream
- is about,
- and I'm very grateful for it.
- I feel very blessed.
Next up is Gina cotroneo,
who's in the business
of spreading happiness.
♪♪♪
My name is Gina cotroneo.
I'm from Dallas, Texas.
And my company
is soul's calling incorporated.
The purpose of soul's calling
is to add happiness
in the world.
- We are all connected
- with one another.
So the company exists
to make items
that remind people
to be at their happiest self
and--and their most joyous self.
The tagline for soul's calling
is "speak your heart."
So before I send
every package out,
- I put my special signature
- on it,
and that's a happy heart.
And then they get the hug.
And it goes out to the person
that receives it.
It's all part of my plan
for world happiness domination.
♪♪♪
My name is Gina cotroneo.
- I'm the founder of
- soul's calling, incorporated.
And I'm here
asking for $150,000
for 25% equity in my company.
Soul's calling
is gifts and accessories.
- Everything has
- a positive message on it
and positive energy in it.
The line really kind of started
out of a healing process.
In 1997,
while living in Dallas,
I survived an att*ck
in my apartment.
And due to the nature
of the crime, uh,
it became very high profile.
And my story was told
lots of places.
And as that happened,
I noticed something--
that what this one person
had done to me,
this one negative action,
- really spread out
- as a ripple effect,
and affected
literally millions of people.
And I thought that if somebody
could affect millions of people
with a negative action,
- then somebody could affect
- millions of people
with a positive action.
And soul's calling
was born out of that.
In 2004, I decided
I could really, maybe,
potentially make
a business out of this.
And the first object
that I launched with
is the inspirella umbrella.
These all have
happy sayings on 'em.
This one says
"let your smile be sunshine."
You know, how many people have
walked down a New York street
and seen nothing
but black umbrellas?
- You know,
- that is kind of depressing.
- And if somebody were to carry
- one of these,
- and how many people
- might see this message
- and be affected by that
- in a positive way.
And after that
came the connection bracelet.
It comes in two pieces.
They snap together.
Each piece says
"we are all connected."
Thank you.
- So I'm just giving you those - as a reminder.
- Thank you.
Oh, cool. Thank you.
The next object that came up
were sole seekers sandals.
These leave words in the sand
when you walk.
What a great idea.
Lori is going to demonstrate
in the sand.
The bottoms are recycled
flip-flops and rubber--30%.
And the straps
are natural rubber.
- Gina, I get you've been
- doing this for years.
What are your sales like?
Just give me dollar numbers
for the last two years.
The last two years?
$11,000 and $18,000
respectively.
I mean, one thing I'll say about
you is you know your numbers,
except they're
really small numbers.
I know, I know.
That's why I'm here.
I need to be bigger.
How much money have you put
into this business so far?
Close to $100,000...
I believe that.
Of my own money.
- It's been every tax refund
- that I've had,
every, you know, bonus when
I had a job, every...
Is it important for you
to keep this going?
Absolutely.
Why?
Because it is part of
my mission on the planet.
Gina, is this a mission that
you believe in as a business
or is this a mission
that's a personal goal for you?
This mission is a business.
Happiness
is a serious business.
And, yes, I'm touchy-feely,
but I do think there's
something of value here,
- or I wouldn't keep going
- with it.
It's not just a labor of love.
I'm determined.
I am a determined person.
I have a product
that people want.
They fall in love
with my product.
And I know that I can
make money with that.
I just need some help.
Gina, your numbers--
your numbers are...
So small.
You know, I made myself a deal
after the--the last
trade show that I was at
that if I didn't make
my money back on the trade show,
then I was
going to take a break.
When I came back
from that trade show...
I hit the wall.
And I literally asked...
Universe, god, force--
whatever you want to call that--
sorry.
All right. What I'm doing
isn't working.
I'm doing everything
that I know how to do
to make this business work.
It's not working.
What do I do?
We have to deal
with the numbers.
That's the thing about numbers,
they never lie.
You told me that
I should give you $150,000
and I would own 25%
of your company.
Correct.
- That means you're telling me
- your company is worth,
- today, four times that amount.
- 600--$600,000.
$600,000.
I'm an investor.
I gotta be true to that
because I know money
has no soul, all right?
I never, ever, ever
let emotion get in the way
of an investment.
Your business
is not worth $600,000.
Here's what it's worth--zero.
That's because it doesn't
make any money.
Somebody has to tell you that.
It might as well be me.
No, I will not
give you any money.
And I don't think you should
go on with this. I'm out.
Well, I-i appreciate
your opinion.
Um, but...
You have a passion for this.
And I really believe
that you love what you do.
And I think
that it's a calling.
- I think that you can heal
- a lot of people.
But as a business, it's not
here for me, so I'm out.
Okay. thank you.
Gina, Gina, I-i admire
your entrepreneurship.
I wish you the best of luck,
but I'm--I'm out.
Okay.
I see you
not as a businesswoman.
- I see you as a minister
- of goodwill.
- I couldn't envision
- investing in your business
- because I don't see it
- as a business
that you even
really want to run.
This stuff is gonna
make you go crazy.
I'm out.
Gina, I--
before you think this isn't
a serious business, I--
no, no, no.
Hang on a sec.
- I do think
- it's a serious business,
- and I--and I disagree
- with Barbara.
- I think you are
- a serious businessperson.
I just think that the business
is telling you something.
This idea may not be a good one
as a business.
And it may be time to change.
Don't you think that maybe
you've reached that point
with this business?
Not yet, no.
This will always exist
at whatever level
I can make it exist at.
Gina, I think
every great business was started
- with great emotion.
- Mm-hmm.
But as you know, the reality is,
you've got to adapt.
And you're not adapting to what
the business is telling you.
Okay.
You gotta let this go.
I'm out.
Well, I really appreciate
all of your advice,
and thank you.
Okay, great.
- Thank you, Gina.
- Good luck.
$18,000 in sales.
- I mean, that just...
- I think you're right.
I think, Barbara, it's probably
a passion and calling for her,
- not a business.
- A passion? It's a religion.
- As long as people
- need happiness,
soul's calling will be there
to provide it.
Who believes he has
an entire product line
for a huge untapped market.
♪♪♪
Hi, my name is Dan claffey.
I'm the founder
of coffee brand gifts.
I'm here today asking for
a $300,000 minimum investment.
I'm willing to give 40% equity
of coffee brand gifts company.
In 1999, I went to
a coffee trade show
called coffee fest.
Only 2% of the 500 companies
that were at the trade show
had coffee novelties
and gifts.
I said to myself, "wow.
- Why don't I develop products
- for this industry?"
So what I did was this--
contacted my patent attorney
and said, "can I trademark
the word cappuccino, Espresso,
"latte, decaf, mocha and java
for the toys, game boards,
plush toys?"
- And he said,
- "well, you got a 50/50 chance."
So I went for it.
No one has ever put
the famous coffee branded names
- on the plush toy industry.
- Did you get the patents - or not?
Yes, I got all the patents.
- So, Dan, you're the only guy
- in the world
that can make a Teddy bear
with the word "coffee" on it?
I'm only guy in the U.S.--
- all right, Dan, I'll buy that
- you have a trademark.
Why do I care?
Okay, I have done surveys
out at coffee shops--
extensive surveys--
and people who were kind enough
to sit and look at the game,
and sometimes play the game--
Dan, you gotta be kidding me.
Do you have any orders
for any of this crap?
I have--i have--
- do you have purchase orders
- from somebody who wants
- a thousand bears with the word - "cappuccino" on it?
- I have commitments from--
I have commitments
from a lot of companies.
Dan, what does that mean?
- Is that like when I was young
- and in a bar
- and a-a girl said
- she'd call me and never did?
- I haven't taken orders yet
- because I'm this close.
- I just need--just the capital to
- get the product off the ground.
- Don't you think you're
- doing it a little backwards?
Why not get the orders first?
- I haven't gone and--and, uh,
- put myself in a position
to where I would need
a lot of sales right now.
- That's the biggest position
- you need to put yourself in.
Let me get this right.
We don't have any orders yet.
I give you $300,000.
We make a lot of bears.
We make a lot of games.
We make a lot of stuff--
tchotchke stuff.
- It doesn't sell.
- Then I k*ll you.
How much do you have,
personally, into this business?
I probably have about
$400,000 or $500,000--
whoa.
Dan, Daniel, please stop. It's
painful for me to hear this.
You know what business
you ought to be in?
- The research business.
- You are so good at it.
- You've been researching
- this thing to death,
and you missed the Mark.
You don't have an order.
I am out.
Listen...
Everything I've done
- has been done
- in a timely fashion.
- This moment in front of you
- right now
is the perfect moment.
- Getting orders is the only thing
- you haven't done.
- And guess what. I--
- guess what.
- I didn't want to get orders
- and promise delivery
until I had capital
to get 'em done.
No!
No!
No, no, no, no, no.
- Daniel, what you just said
- was un-American.
It was un-American.
Then I agree with you--
I agree with you 100%.
From now on,
I'm gonna do it your way.
I'm gonna get the orders.
I'm gonna--and--and then
- we're gonna sell the product.
- Dan, are you afraid of sales?
- Absolutely not.
- You are!
- 25 years, I've been in sales
- and marketing,
- and I'm
- the top of my field, 5%.
And you have no sales here.
I'm out.
Dan, you said
you're top in sales,
but there--
there are no sales here.
I gotta tell you,
I-I can't go forward. I'm out.
Dan, I can't give you
my money.
- Two years from now,
- we're gonna be sitting around,
and you're gonna have a million
reasons and a million excuses
why my money's gone, and we're
not gonna have any orders.
I'm out.
So I'm completely out because I
didn't get a purchase order?
Daniel, stop.
Wake up and smell the coffee.
A million people drink coffee.
Not a million people
may want to buy bears.
"The New York times" published
an--an article two weeks--
then why are there no orders?
Two weeks ago--
why are there no orders?
You've completely wasted
my time.
I'm out.
That's fine.
Was it--thank you.
And I-i thank you.
But I'd say this, that--
what are you
thanking me for?
What's happening here
is your perception of me.
You're making a judgment call,
and you have--
no.
- You have the right to that.
- You have no sales.
Thank you so much.
Thank you.
♪♪♪
Oh, my.
That was so frustrating.
Imagine not having one order.
Not even one.
Well, he's all over the place.
Yeah, but any order, anything.
He claims to be
a super salesman.
I wanted to fire him,
and he doesn't even work for me.
What I've done is huge.
Nobody's gonna minimize
what I've done.
They don't have a clue,
- and I'm just gonna
- prove 'em wrong.
That's all there is to it.
My name is Paul watts.
I'm the founder and owner
- of graffiti removal services
- in Sacramento.
This is my dog Lexie.
She comes to work with me
every day. Come on.
My business is a mobile
graffiti removal service.
- I used to work for the city of
- Sacramento painting light poles,
- and then I would always see
- graffiti on the light poles.
So then I decided,
I'm gonna start a service
to remove the graffiti.
I'm gonna start taking it off
from top to bottom.
Graffiti in the United States
is a huge issue.
- I mean, it's blighted
- our communities everywhere.
- And that's it.
- Come on, Lexie. Come.
I want to franchise my business
and get a mobile
graffiti removal service
in every city
across the nation.
- There's a huge market out there
- for graffiti removal.
- That's why
- it's a great opportunity
for the sharks to get on board.
♪♪♪
Good evening.
My name is Paul watts.
I'm the founder and owner
of graffiti removal services.
G.r.s. is the nation's first
completely mobile
graffiti removal franchise.
I'm here this evening
asking for an investment
of $350,000
in exchange for 15% ownership
of my company.
Back in 1998, I was employed
with the city of Sacramento
as a facility
maintenance painter.
But it wasn't until
a Saturday morning
- when I was volunteering
- for a community cleanup
that I noticed a huge sense
of civic pride.
And it was at that moment
I had an idea.
- That I could create a service
- that could not only
benefit the community
I was living in,
- but also make a little
- part-time money on the side.
Today I'm gonna show you
how graffiti can be removed
easily and effectively
with a biodegradable product
that's nontoxic
and non-damaging.
Our proprietary products
can be applied
to the graffiti...
Safely, effectively
and easily.
So, Paul, I'm impressed.
Thank you.
But why are the trucks here?
- Is the business
- your proprietary chemical?
The--the business is
the graffiti removal system,
- not the product.
- The product is proprietary.
It complements the business.
It works hand in hand.
But you invented that product.
No.
Oh.
I invented the system.
- The product comes from - another manufacturer.
- Ahh.
- It's proprietary to--you can't
- own a g.R.S. Franchise
- without using this product,
- because--
- but can anyone else
- get that product
without the g.R.S. Franchise?
Not in a retail outlet.
They could buy it
from the manufacturer,
but they don't know
about it.
- So I get the civic duty piece,
- and that's great.
- But what about your duty
- to make money for investors?
How would I make money
giving you $350,000?
Off royalty fees
and franchise fees.
Have you sold any franchises?
No, sir. I've only been approved
the last month and a half.
Have you got
any revenues at all?
Yes, sir, I do.
- I have my company-owned location
- in Sacramento
that now generates
$230,000 a year.
What are you netting
out of that $230,000?
$75,000.
Paul, how much does it cost
for me to start-up--
to buy the truck,
buy the machine?
Like, that stuff's gotta
cost a lot of money.
Our low end to get into
a g.R.S. Franchise is $60,000.
Okay, I-i-i buy that there's
a business here, all right?
Yeah, and I buy it.
But the problem is,
you're telling me
that I get 15% of your business
for $350,000.
I multiply what
the whole business is worth
- based on what you're telling me
- 15% is worth,
- and that's over $2 million.
- Yes, sir.
And you haven't sold
one franchise yet.
No, I based that
- off my company location
- in Sacramento
and the rate of growth.
It's a huge number
you're throwing out here.
- $2 million? You haven't sold
- one franchise yet.
- I mean, does that
- really make sense?
So what would you think
a fair price would be?
I think I'd get 110%
of your business for $350,000.
I think the franchise
is already developed.
It's already approved.
And the company has no debt.
What I don't get here is,
the guy you sell
or the woman you sell
who drives that truck,
how are they gonna convince
a municipality
to even change their ways
and try a new product
in a government system
that's nothing but red tape?
I don't get that. I don't
buy it. And for that, I'm out.
Paul, I have
a fundamental problem.
Your success is gonna be based
on you getting franchise fees
paid on a monthly basis, okay?
Once you put a guy
into this business,
- why is he gonna send you
- a check every month?
He knows the business.
He's getting his accounts.
What does he need you for?
And I-i don't think
the franchise concept
is gonna work
for this business.
On that note, I'm out.
- You have
- nothing proprietary here--
- not--not the machinery,
- not the idea
or not even the chemicals.
I'm sure sooner or later,
as soon as you
make this more popular,
that chemical company is gonna
make it available for retail.
So I can just go and pick up
that bottle for $2,
spray the crap on it
and wipe it away.
And with that... I'm out.
Three sharks are out,
but Paul still has two chances
to make a deal.
I'll give you the $350,000,
but I'd have to--
I mean, I want 75%
of the business.
Robert, I'll go in
on your deal.
of ours. He works for us.
It's a fantastic deal.
Re out,
but Robert and Kevin
have teamed up
to offer Paul $350,000
for a 75% stake in his company.
of ours. He works for us.
It's a fantastic deal.
Thank you, but no.
Wh--
no.
What do you mean "no"?
There's no "no."
No.
You're making a mistake, Paul.
I gotta tell you.
- I think you're making a mistake. - When you walk
out of here, - I won't even think of you again.
- I want you to know that.
- Yes, you will.
- No, I won't.
- You are dead to me.
- Every time you see graffiti
- on a sign...
You are dead to me.
You are dead to me.
- You're gonna say, "I should've
- invested in that company,
'cause he can go to
the municipality"...
Nope. never gonna think--
"and he can be
their contractor."
Paul, there's a million deals--
a million deals
in the naked city.
- The next guy's gonna
- walk in here and get my money,
- and he'll get rich,
- but not you.
- You are dead to me
- if you turn around.
Are you certain you don't
want to think about it?
No. there's nothing
to think about.
I--
this deal that--this deal
that you're offering me,
it is a shark deal.
Oh.
All right. Opportunity knocked.
No one was home.
Turn around. Get out of here.
Paul, you're a good guy,
but, uh, you're gonna get
run over.
♪♪♪
Overvalued the business.
What an opportunity.
Great opportunity.
We could've helped that guy.
- Everybody wants to get rid
- of their graffiti.
This is a great idea.
Anyways, look,
he's dead now. He's gone.
Their offer would have made me
an employee of my own company.
And there's no way
that I'm gonna have somebody
out there telling me what to do
when I know best.
Next into the shark t*nk--
Amy feldman and Allison costa,
who need an investment to grow
their fledgling business.
♪♪♪
Hello, I'm Amy.
I'm Allison.
And we're from coverplay.
We're here today to ask
for a $350,000 investment
for 15%, uh, equity
in coverplay.
This is a play yard,
and they are used
in people's homes,
they're used on cruise ships,
they're used on--in day care,
and they are
a disgusting mess.
Uh-oh.
Oh.
They spill in there.
They poop in there.
Oh, stop the madness.
Ew.
Baby food, snot.
That's disgusting.
Ah! oh, my...
Oh, that's disgusting.
This is a petri dish...
Ugh.
Of what goes on
in a typical play yard.
So then, wait.
Your precious little baby
goes in here.
Ugh!
Oh, not the baby.
We actually have
the only solution.
Coverplay.
Let's go over here.
Coverplay is the first
and only...
Slipcover for play yards.
- So you bring that with you
- wherever you go?
Is that the idea?
Well, the hotels can provide it
for the guests as well.
So, Amy, who--
who's the customer?
Is it the hotel or the parent?
We have multiple--
multiple customers.
- The, um, on one end,
- it's the retail.
It's the actual consumer.
- So it's the grandparent
- or it's the parent using it.
But then it's also--we can sell
to the hospitality industry.
They can use it
as a retail outlet as well,
because they can offer it
to their guests to--
for purchase.
We launched our product, um,
it hit the shelves in August
of this past year,
and we launched in target.
Wow.
I'm impressed.
And the number is?
And the number is, uh,
we've done $200,000 so far.
We got into the largest
hotel distributor in the world.
We're shipping marriott--
Hilton...
Hilton--
best western, wyndham,
royal Caribbean,
carnival cruise line.
- What are the sales
- through all those channels?
Well, this is collectively.
It's up to $200,000.
And that was
the initial opening order?
Yes.
- Did anybody reorder?
- Yes.
- Yeah. - We're getting reorders
- all the time.
All the right answers.
Do you have a patent on this?
Two.
Yes, we have
two U.S. patents.
You have distribution.
You have sales.
- You have a patent.
- Why do you need any money?
Nobody knows we exist.
It's a brand-new product.
- We just need
- more product awareness.
And that's what
our accounts have told us.
Nobody is going into
a store right now...
And looking for coverplay.
Saying "I need a coverplay.
I need a slipcover
for a play yard."
Give me a real, tangible reason
why you need $350,000
for your business today,
besides marketing.
How will you spend it?
How will you--
how will--
break down the $350,000
really quick.
Operation--operational costs.
Operation means salaries,
you're saying?
It means salaries. It means--
employees, sales reps.
Ware--warehousing.
What's the--the age group
of--of the--
zero to 2.
- That's the concern that I have
- from me in my business,
because what I do
is television advertising.
I can't afford to buy
mass-market TV time
to go to somebody that's got
a zero to 2 year old...
But it's a--
but--but--but--just--
which is--which is
too niche for me,
so I'm gonna say I'm out.
Okay.
Thank you.
Thank you.
Amy, how much cash
do you have into it?
We each are about, uh,
what, $50,000?
Yeah.
Into it.
Each of you put up
$50,000?
Mm-hmm.
How long ago?
A year ago.
Okay, so a year ago,
let's say...
It was worth $100,000.
It was worth $100,000.
- With no sales, no nothing.
- And the patents - were pending, too.
Just an--just an idea.
- And a year later,
- there's $200,000 in sales.
You're offering me
for $350,000.
That means
you want me to believe
your company
is worth $2 1/2 million.
That's a lot of peepee
and pooh pooh.
- We've gotten into tar--target
- doesn't take unbranded products.
- I get it, but, ladies, - don't be--
- but--but--hear--hear--
hear me out. Hear me out.
Don't be savages.
We're the sharks, not you guys.
This is unbelievable.
It's not worth
what you're asking.
Oh, really?
But I'm looking
at the two of you,
- and I'm thinking
- you got that spunk
that's gonna drive this train
right to the finish line.
Now here's the offer--
I'll give you the $350,000
for 40% of the business,
and the 40% is nonnegotiable,
all right?
And the $350,000 is to be used
only for the development
of the product--
not for salaries,
not for little vacations,
not for special promotions.
$350,000--the full amount
you're looking for...
- Mm-hmm.
- For 40% of the business.
That leaves
both of you in charge.
Okay.
I'll give you $350,000,
and I will hand it to you
towards the manufacturing
on your orders.
And then I will be willing
to finance
- all the other manufacturing
- and production
- for the existence
- of the company.
But that comes
with a 65% ownership.
Amy, there's two offers
on the table.
Barbara's offer is $350,000
for 40% of the business.
- It's got
- some problematic conditions
on how to use the money.
Daymond's offer is $350,000
for 65% of the company.
But mine rolls over to you
having a strategic partner
who will finance for the rest.
That means you get
my warehousing, trucking,
billing, shipping,
everything.
- Amy, Allison, why don't
- you guys go in the hall...
Okay, okay.
And discuss it
and think about it?
- That we'll do.
- Okay.
Thank you.
We just need pen, paper,
calculators.
Thank you.
Oh, god.
Allison, what are we
gonna do?
You don't--you don't care
so much about the control.
Barbara--
- these girls are capable.
- They're totally ca--
- Barbara, you're being
- too generous.
You're being too generous.
You're being
way too generous.
Barbara, this is my business.
Listen, this is my business.
I know this business,
and I need control.
It's a pretty cool patent.
A very cool patent.
It's a fantastic patent.
Yeah.
Ta-ta-ta-ta-ta.
Sorry for the delay.
What do you want to do?
Here's our thought.
Okay.
We don't want to--we don't want
to give up controlling interest
of our company.
I could ask for 50%
and say let's be even.
I asked for only 40%
out of respect for your talent.
I just want to bring my 35 years
of savvy business experience--
I took 1,000 bucks and turned it
into $66 million,
which was no accident--
and bring it to your table
to help you.
- But when you start talking
- about experience,
we talk a different language.
She could run circles
around me
in any aspect of real estate.
Which has nothing to do
with this business.
We are talking a different
understanding of business.
I'm with you, daymond.
What if you got
a little more cash?
If you have an issue
with the 65%,
what if I came in with daymond
and gave you $450,000
instead of the $350,000
for the 65%?
It's the 65%
that bothers us.
$500,000.
Take the money,
you crazy chickens.
Take the money.
One of the things--
I know you want the 40%.
Would you be willing
to come down on your percent
and take part of that
as ownership in the patent?
Whoa. hold it a minute.
This includes the patent.
The patent's
the heart of this business.
I didn't know you had
put that to the side.
- Amy, the patent wasn't
- part of the company?
- No, the patent is--
- the patent is separate.
- Allison owns the patent.
- The patent is--
- why have you wasted
- our time?
My--my offer is retracted.
Mine, too.
Yeah, my offer's
off the table.
♪♪♪
But a new wrinkle
could jeopardize everything.
The patent wasn't part
of the company?
No, the patent is--
the patent is separate.
Allison owns the patent.
My--my offer is retracted.
Mine, too.
Yeah, my offer's
off the table.
Ladies, please,
for this kind of money,
- you have to vet the patent
- into the company.
- Wait. who owns the patent?
- Allison owns it.
- 100%?
- No, I own 60%.
Where's the rest of it?
Amy owns a portion
and my ex-husband
owns a portion.
Oh, my.
You have to bring that
into the company.
Retracto!
We needed to know that.
Yeah, but it's not
very difficult--
Allison--
retract.
But since I own--
the first four words out of
your mouth should've been that.
Wait, wait, wait, wait.
Is your ex-husband
a friendly ex-husband?
Yes.
Will he vet this
into the company
for a piece of your equity?
Yes.
- Now wait, wait, wait, wait.
- Can you--
just so we can decide what we're
gonna do with our time today--
is this patent--is it available
to put into the company?
Yes.
Okay, Allison, just tell me
you'll throw the patent
into the company.
We'll throw the patent
into the company.
Okay.
Oh!
- Are we--
- are we back, then?
- I don't know.
- Are we back on?
- I love these girls. These are - crazy, crazy chickens.
- Well, hang on--
wait. let's modify
this deal a little bit.
Let's leave it at the $350,000.
- I want to go a third, a third,
- a third with daymond.
- What's the dollar amount
- that--that's on the table?
- $350,000.
- No. it was up to $500,000.
It was up
to $500,00 before.
$350,000 cash.
You get daymond
and the back office,
which is amazing.
You uncle Kevin and you get
Robert when you need more cash.
But we gotta start at 51%.
Well, let me just make
a couple of comments here.
One, men always want
the control.
They'll package it this way
or that way,
and it makes great sense,
but in the end,
they want the control.
I, too, had a majority partner
at one time,
and he only wanted
And seven years later,
he married my secretary.
- He left me high and dry
- and almost broke my back.
So I've been there.
Barbara, you are a black widow
in stilettos.
Barbara is great.
Barbara's fabulous.
I think she makes total sense.
You're fabulous.
One offer is three sharks,
$350,000, for 51%.
The other offer
is one shark...
- An honest shark.
- A sharkette.
For--for $350,000 with lots
of conditions on the money--
for 40%.
One.
We have to make
a decision.
♪♪♪
What do you
want to do?
You want to do it?
All right,
Barbara. you're in.
Ladies...
- All right.
- Ladies, ladies, ladies.
- Thank you, guys. - Ladies, ladies,
I think - you made a mistake.
You made a big mistake.
You did not.
- Horrible mistake.
- You made a huge mistake.
I don't think we did.
You know what you're gonna do?
You're gonna be successful,
and you're gonna be happy.
Wait and see.
We made a great deal.
Ladies, it's over between us.
Okay, good-bye.
Oh, my god.
Oh, my god.
- You got 'em. You sh--
- you out-sharked 'em.
Barbara against
the three of you guys?
How did you guys let Barbara
take down the three of you?
You know why?
They were too greedy.
Well done, Barbara.
Unbelievable.
Thank you.
I can't believe I'm crying.
- You know, the opportunity,
- it just gave us hope, you know,
- that there's somebody
- willing to help us.
And they believe
that our product is just...
It has something.
01x04 - Episode 104
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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.