Tonight,
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.
Is this a proprietary product?
Can you patent it?
Yes, um, the process.
No. the process, not the poop.
You can't patent poop.
The sharks
are ready to invest
using their own money,
but only for the right person
with the right idea.
You've basically thrown away
Nothing I have done here
is a waste.
But first, the entrepreneurs
must convince a shark
to invest the full amount
they're asking for
- or they'll walk away
- with nothing.
- He told you the truth,
- and you slaughtered him.
I'm ashamed of you.
Who are the sharks?
Kevin O'Leary
is a venture capitalist
- who started a software business
- in his basement,
which he eventually sold
for $3.2 billion.
Barbara corcoran
is a 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 into the shark t*nk
are Michele and melisa,
sisters
with a homegrown business
designed to send a little fun.
♪♪♪
I'm Michele sipolt kapustka.
And I'm melisa moroko.
You have a great day.
We're sisters, we're neighbors
and we're business partners
in a company called
sendaball inc.
We operate sendaball
- out of our homes
- in Chicago, Illinois...
Out of Michele's garage.
This is our operation.
This really is
a family affair.
We have seven kids between us,
and after school,
the boys pitch in
for some extra cash.
Excellent.
- If we could just get a boost
- from the sharks,
- we could mass produce,
- automate a little bit more,
move into a real facility
and maybe get those kids
off the payroll.
- Who do you want
- to send the ball to?
- We are slammed
- with orders.
We need the sharks,
and we need them now.
♪♪♪
Hi. my name is
Michele sipolt kapustka.
This is my sister
melisa moroko.
We have a company called
sendaball,
and we're here
asking for $86,000
in exchange for 20%
of our company.
Sendaball is an Internet-based
greeting company.
We ship fully inflated
play balls through the mail--
no box...
- No packaging,
- no bubble wrap,
- delivered by
- your regular mailman.
Just like an envelope,
the stamps and the address
go right on the ball,
and the kicker is
so does the greeting,
like "have a ball
on your birthday"...
Or...
Or "bounce back soon."
Getting a ball in the mail
is so much fun that most people
who get a ball in the mail
order a ball for someone else
within 48 hours.
- And that's how we've been able
- to grow our business.
We've been able to ship double
the number of balls each year
since we started.
But the outsourced manufacturing
for these balls
just can't keep up
with what we're doing,
so what we need to do is bring
the manufacturing of these balls
into our little place in Chicago
so that we can fulfill
the orders.
We just can't seem to fill
the orders that we're getting.
We need the specialized
equipment on-site
in our sendaball headquarters.
Michele, why $86,000?
Why not--
like, it seems like
such an oddball...
Oh!
Such an oddball number.
We come from
a pretty lean growing up,
and you only ask
for what you really need.
So...
No, you ask for more.
Don't listen to him.
So I-i have, um, outs--
I have done so much research
on the equipment that I need
that I know exactly the amount
of money it will take
to--to build this machine
that will make us able
to print logos on the ball.
Hence the $86,000.
Right.
What are your total sales?
Um, our sales
have been $100,000 a year.
Walk us through an order.
So I call you up...
- Well, you would call me up,
- and you would say,
- "I want to send a ball
- to Barbara for her birthday."
Okay, costs me how much?
Costs you how much?
It costs--
well, it costs you $20.
Yeah.
It costs me about $5 to get it
in the mail to you.
So you make $15.
Yes.
Michele, how did you
come up with it?
- I'm standing in line
- at the post office,
- and this guy behind me said,
- "hey, what is that?"
And I said, "oh, it's a ball.
I'm mailing it
for my girlfriend,"
and he said, "could you mail one
for me? Here's 5 bucks."
- And then I call my sister
- when I get home, and I said,
"some guy just gave me 5 bucks
to mail a ball for him."
And she's like, "hello!
We're on to something."
Eureka!
- The postman must hate you. - Actually,
- the postman loves us.
- When we first started this
- business, we went to them
and said, "hey, do you mind?"
And they said,
"revenue is revenue."
Revenue.
Where are you guys
making 'em now?
It's on her property.
In my garage.
Your garage?
- Is that - where you blow the balls up?
- Yes.
Okay.
She has four boys.
Labor laws, perfectly fine.
- So you have your four
- boys blowing these balls up
after school?
Yes. they--they have to--
it's part of their chores.
It's sl*ve labor.
It is not!
- They don't blow
- all of them up.
If I just happen to have
a big order, I'll say,
"get your body in there
"and give me--fill that bin,
- and then I'll take you
- to soccer."
- You know what? For a mom
- to tell her four boys that,
she's got balls.
I do have...
I love the sl*ve labor part.
That's good.
It's not sl*ve labor.
- It's great. It's low cost.
- You can b*at them with a stick.
- It's not! Low cost? You know
- what I have to pay for that?
- You don't have to
- employ them.
- You don't have
- to pay that right now.
- That's not a cost you're
- incurring at the moment.
- No, they do get paid.
- They do get paid.
How much?
They get paid... I am
going to hell in a handbasket.
How much?
The little guys get $6 an hour
and the big guys get $8 an hour.
Oh, that's not bad.
So, Michele, if you moved out of
the house and rented an office
and you got equipment...
Yes.
And you had to pay yourself
and melisa, how big would--
- yeah.
- But she doesn't do anything.
- Yeah, melisa,
- what are you doing?
- How big would
- the business hav--
how big would the business have
to be for you to make money?
Well, we make money now.
Yeah, but you make money
because you're not
paying yourself...
No, because--
- you're not paying rent
- and you're not paying the kids.
- Well, the kids get paid.
- They really do,
- and that's really not a-- - no, but
seriously, - would the business have to do
half a million a year
for you to make a--
- no, I don't think so. Right now
- we ship 50 to 75 balls a day.
If we ship a hundred or more
balls a day, it's all profit.
Well, ladies, look, I think
it's a very interesting story.
Roughly $33,000.
Thank you.
No question about it.
- You're very pleasant
- to listen to, that's true.
- And I would never pay
- your sister any money.
- Get her for free. But, you know,
- as an investment,
it's, um, it's challenging.
I actually don't want to be
in the ball business.
Good luck with this,
but I'm out.
I'm not sure
you even need a partner.
Yeah.
Have you been to the bank
to try to get a loan?
Yeah, we have.
And what happened?
You know, one of the things
that the bank didn't bring
to the party were
what you guys have.
Was what you guys have.
Really?
So what exactly would
we bring to the party
- other than our hard, cold cash?
- You think we know a lot
about balls, shipping?
We think you know
a lot of people.
Barbara, you know
about balls.
Stop this.
You can't help yourself.
I know.
You guys,
what an entrepreneurial
story. I love it.
But there's nothing proprietary
about this, unfortunately.
I mean, anybody can get a ball
and ship it.
So as an investment,
I'm gonna be out.
Okay.
Okay. thank you.
Yeah, I feel the same.
- I have so much respect
- for what you guys are doing.
But you don't need me
as a partner.
I don't think it would be
advantageous to you. I'm out.
So what have we got left?
Uh, ladies, I-i, uh,
really enjoyed it. Uh...
Thank you.
Uh, very, very, uh,
inspirational story.
Maybe you'll send a ball
someday.
I will send a ball.
- And if you call me, I will give
- you the coupon code.
- And I had a ball,
- but I'm out.
- Thank you.
- Okay.
- Four sharks are out.
- Barbara is Michele and melisa's
last chance to bounce back
and score a deal.
I've changed my mind
back and forth
since you stepped
onto that stage there.
Oh.
You are definitely
gonna be successful.
So what are you doing?
I-I'm still changing my mind.
In fact, you know what?
I'm out.
And you know why I'm out?
- Because I don't want you hating
- me a year from now as you're
paying me off, and that's
exactly where it would go.
I hate you now.
I mean it.
We don't hate anyone.
You don't need me.
You're fine without me.
Ladies, very impressive.
Your honesty and your fun
shone brightly through.
Oh, come on.
- Thank you.
- Everyone should be this way.
- I feel like we're family. - Yeah,
- we're practically related.
- We're practically related.
- So you come over,
you got--you can stay
in my camper.
- Slavic, slavic. We all speak
- the same language.
But you can tell
we live and breathe balls...
Live and breathe balls.
seven days a week.
Stop it.
Well, good luck to you.
- Ladies, you brighten up our day. - Thank you.
- Thank you.
Thank you so much.
It was nice to meet 'em.
Yeah.
What a story.
Well, we had a ball.
That was fun.
Yeah, we had a ball.
Nice, nice ladies.
We got sh*t down
by the sharks.
- But that's okay, 'cause we're
- gonna bounce back soon.
- We have a ball business. - We're not selling pacemakers.
- We're gonna be fine.
And watched as he turned down
the largest offer
in "shark t*nk" history.
I'll make you a better offer.
I'll give you $1 million
for 100% of the patent.
I would have to say no.
Thank you.
Lifebelt, in short, is
an educational safety device
- that prevents people
- from starting their car...
Until they've buckled
their seat belt.
- Since I got the opportunity
- to pitch to the sharks,
- I've been on a mission
- to get lifebelt in front
of as many automotive retailers
across the country as possible.
- Today we're in Houston, Texas,
- meeting with
- the Gillman auto group,
- which is one of the oldest
and most respected automobile
groups in the country.
It's a pleasure to have
a product like this
in our dealerships.
- The deal that I'm putting
- together today
with Gillman automotive is
a multimillion-dollar deal.
Appreciate it again.
Thank you so much
for this opportunity.
All right, our pleasure.
- The Gillman automotive group is
- going to be offering lifebelt
- to all their customers
- in both new and used cars
at all of their dealerships.
I bought the lifebelt
because I wanted to make sure
that Brooke always wore
her seat belt,
and this is about the only way
I'd be sure of that.
- Thank you. You might save
- my daughter's life one day.
- These deals
- are just the beginning.
- Lifebelt will have sales
- in excess of $10 million
by march, and we're
only going up from there.
Next up is Mark burginger,
who hopes to share
his love of architecture
and inspire children
with his product.
♪♪♪
Hi. my name is Mark burginger.
I'm from bend, Oregon,
and I'm the creator of qubits,
the construction toy for kids.
I work as an architect,
but like many people,
I played with construction toys
when I was a kid,
and I think it influenced me
- to become an architect
- in the first place.
This is a qubit, and it's able
to build structures
by combining with other qubits.
Currently,
with the slow economy,
uh, architectural jobs
are hard to come by.
Once you start
to accumulate some debt,
- it's a load on me,
- it puts a load on my wife,
- and my kids, even,
- are affected by that.
So what colors are you guys
working on now?
I'm semi-employed.
I've got $60,000 worth of debt.
I've got a garage
full of product.
- Here.
- Put some in here.
- This is my last hope.
- It really is.
♪♪♪
Hi. my name is
Mark burginger.
My invention is
a construction toy
called qubits.
I'm here today to secure
a $90,000 investment
in exchange for a 51%
controlling interest
of our family company.
So what's so unique
about qubits?
Well, qubits is
a small, flexible toy
that can allow you
to create curved shapes,
unlike any other toy
in the world.
These toys are quite easy
to put together,
as you just secure 'em
with a connector.
Then you could use a panel
perhaps,
and there you go.
- You've already started building
- something. it's that simple.
- Can we see these?
- Could you toss something to us
- so we could feel it,
- put it in our hand?
We're too far away for us
to appreciate it, I'm sure.
- There's a part of me
- that's a little suspicious.
You seem like a credible guy.
It's very rare
that somebody comes out here
and voluntarily says,
"I'll give up 51%,
control of my company."
Why?
Well,
there's a couple of reasons.
One, I'm smart.
Number two,
I want to put together
the best board of directors
anyone could ever imagine
for this company,
and this is one way
of doing it.
- And--
- do you have a patent on this?
Yes, I do.
Are there other toys
that bend and twist like this?
No, not to my knowledge.
Mark, I'm so curious
how you came up with this.
- It was a creative endeavor
- that I've had in my mind
for a long time.
Once you create a form with this
type of geometry, they can
create natural structures
that relate directly to science.
Mark, how long have you been
working with qubits?
How long has this been
on the market?
It's been on the market
since November '07.
Okay. what are the sales?
I've managed to sell about
$8,000 worth of the toy.
Sorry, Mark.
$8,000 or $80,000?
But let's bring
the white elephant in the room,
the 9,000-pound gorilla.
The market is owned by lego.
That's the construction toy
of the past, and so far,
it looks like, the future,
because it has
all the market share.
The trouble with this business--
and yes, it's a large business,
because every child likes
to play with these blocks--
is getting distribution.
Tell me that you've gone to see
one of the large toy companies
with this already.
Have you seen them?
No. I have--
I have not approached
a large toy company.
- How much of your own money
- have you put into this?
I have invested $60,000.
Of your own money?
Quite frankly,
I had to borrow much of it.
- Given the resources you have
- right now,
there's only one strategy.
This product either has
the merits of support by
a toy company or it doesn't.
There are four toy companies.
So that's four phone calls.
You can afford to do that.
They'll either like it
or they won't.
Till you do it, there's
no opportunity as an investment.
I'm out.
Mark,
what makes it hard is,
you've basically
thrown away 60 grand.
I don't believe that.
- It's a waste, Mark.
- It's not a waste.
Sure, it's a waste, Mark.
Nothing I have done here
is a waste.
Mark, one of the greatest thing
you'll learn about sales is,
- you gotta know
- where not to waste your time.
I'm out.
I think, right now,
you're competing
in a huge, huge industry,
up against the big boys
that have spent
tens of millions of dollars
in creating brands.
I don't see how you can compete
with them,
so I'm out, Mark.
And, Mark, I'm gonna join that
and say I'm out as well.
Four sharks are out.
Daymond is Mark's last chance
to save his toy company.
Um...
♪♪♪
Mark only has one sh*t left
to save his business.
Um...
- There are things
- that concern me.
- I do not know the toy market
- that well,
but...
I like the fact
that you came in here
offering 51% for $90,000.
Thank you.
You're an educated man,
you have drive,
and I like the way this
has branding all over it.
I'm into brands.
So here's what I'm gonna do.
I'll be a partner with you...
but contingent
on us calling the top four guys
and working a deal with them.
Okay? do you accept?
Yes, I do accept.
Okay. we're in business.
Fantastic.
Okay, man.
Thank you, daymond.
Thank you.
To get a dynamic investor
like daymond John--
he'll be able to help me
land a bigger deal
than I could on my own.
This is awesome.
My--my kids, my family--
they're all gonna be ecstatic.
Good job, buddy.
Got you guys!
He was waiting in the weeds.
Nicely done.
You shrewd little weasel.
- If he gets the deal,
- you got the deal.
- If he gets the deal, I get
- the deal. I don't, I don't.
- The bad news may be you make
- the four calls and they all say,
- "we have no interest
- in competing in this space."
- Then he's gonna get the answer
- right away, and he's not
- gonna get the runaround
- from these companies.
You got it.
- He's got a free option - is what he got.
- Yeah, that was a good deal.
- Yeah. - I wish I would have thought
- of that.
♪♪♪
I'm Nicole Jones
from Chicago, Illinois.
- I've been in love
- for a very long time--
in love with shoes.
And my business is called
pillars of slippers.
♪♪♪
Pillars of slippers
is a shoe-shopping experience.
I bring shoes
to the sophisticated shopper
in the comfort of her home.
And I'm not just about
bringing shoes to your house.
When I come over,
I'm bringing a party.
I roll out the pink carpet,
chocolate, champagne...
- I throw the ladies
- into a shoe frenzy.
Welcome to
the pillars of slippers
shoe party!
Everyone that attends my parties
love it.
And more importantly,
I sell a lot of shoes.
I need help from the sharks
to bring my one-woman show
to women all over America.
♪♪♪
♪ I feel ♪
♪ I feel good in my shoes ♪
Whoo!
♪ I work in my shoes,
I go shop in my shoes ♪
♪ I go out in my shoes ♪
♪ I'm loving my shoes ♪
♪ people talk about shoes ♪
♪ you can walk in my shoes ♪
Whoo!
Yeah!
Yeah!
My name is Nicole Jones,
and I'm here today to present
pillars of slippers.
I would like to request
from you $150,000
in return of a 15% equity
in this business.
Pillars of slippers is kinda
like a tupperware party,
but we are not selling
containers.
We are instead selling
what women love--shoes!
I am the shoe professa!
We bring the shoe to you--
a home-based shoe business
where women have
the opportunity
to get together
with all of their girlfriends--
roll out the pink carpet,
pop! pop! Open the champagne,
chocolate, strawberries
and all the fun things
that women love to do!
We are talking about
affordable,
fantastic,
uniquely designed shoes.
Aah!
There is projected to be,
in the U.S., 97 million women
between the ages of 18 and 64.
And guess what. They all have
but one thing in common.
They have feet, typically,
and they love shoes!
So I would like to know,
which one of you all are ready
to give me that cash?
Whoo-hoo!
Congratulations.
Very good. Very good.
Wow. that was great.
I love it.
Thank you.
You have some sales?
- I have sales
- and I have distribution.
I own a retail store in Chicago,
and right now I have
three channels of distribution.
One of them is my retail store.
The other one
is our shoe soirees
as well as our Internet sales.
Right now, in this economy,
holding on to a piece
of real estate
- is what is hurting
- our business right now.
So what I am trying to do is
build a new, successful model
- where we utilize
- the two distribution channels
- that are working successfully
- for us.
- That is selling shoes
- on the web site.
I would like to be
a wholeseller, not a retailer.
- Wait a minute. You're telling us
- your shoe store is
- going to zero.
- It's going out of business.
Is that what you're saying?
No, it's not
going out of business.
Luckily, I've been able to stay
in business, but it has been
- a hard time keeping up with
- all the expenses relating to it.
- When I look back
- at all of my financials,
- where I made
- the most of my money
- was in the two distribution
- channels--
home parties
as well as Internet sales.
So I want to redefine
my business.
- You know, I thought
- you were crazy for a minute...
- Uh-huh. - But now I'm starting
- to hear something
that makes sense to me.
You're saying brick and mortar's
- not working for you anymore.
- It's not working.
You want to sell online, and you
want to sell in a pink s.U.V.
That's correct.
So do you have
online sales today?
- Yes, I'm made $70,000
- in Internet sales
and $64,000 in home parties.
Last year?
Last year.
Together?
to come from the Internet.
Mm-hmm.
You don't need
the franchisees for that.
Right.
The other 50% is Barbara
pays you a monthly fee--
she's gonna pay an initial
licensing fee, which--
how much is that gonna be?
That's gonna be $100,000.
Wow.
So that is going to include--
sorry, Nicole. Barbara is gonna
give you $100,000 up front?
Up front. And let me
tell you what that entails.
Without selling any shoes?
- Whoa. what do they get
- for $100,000?
Their s.U.V., the wrapping
of it, their pink laptop,
- all of their materials that
- they need for their shows, the--
- n-Nicole, do you think that's
- a problem in this economy,
that women are gonna have
a challenge
finding $100,000
to buy a pink s.U.V.?
Absolutely not. This is geared
towards the professional woman
who understands this market,
understands this business.
- Does it include inventory--
- $100,000?
It does include
their initial inventory,
- their bags,
- every single thing.
But, Nicole, I can't get beyond
a woman giving you $100,000
for a gas-guzzling s.U.V.
Do--do you think that you could
refine the concept
and maybe start with
a smaller car or--or something?
Like why $100,000?
That is so much money.
Let me tell you why.
Let me tell you why, Robert.
It's important for me.
If I'm gonna build a company,
there has to be uniformity.
We have to be able
to look the same, talk the same,
be the same.
Nicole, you know,
you're really intriguing,
because you get these shafts of
white light and pure thinking
in between a wafer
of nut bar factor six.
Like, you know...
- That is so funny.
- I'm trying to decide whether you
really know what you're
doing or you're just crazy.
How many dollars
of your own cash
have you put into this idea?
Well, in my storefront,
I've put in over $200,000.
And into
the pillars of slippers,
I've put in about $60,000.
Tell me
about the parties.
What's the average
amount of sales?
It's about $725.
And typically,
the expense is about $300,
and I made about $425
off of each party.
Hey, Nicole, I really believe
that you have the ability
to go out and make yourself
a lot of money selling shoes.
Okay?
Where I have a disconnect is
you taking $100,000 from people
and showing them how to go make
hundreds of thousands.
There's no proof to me
that you can do that. I'm out.
Okay.
I-I-i love your passion,
but there's nothing there
for me either.
I would have to say, I'm out.
Nicole,
would you say you are
the ultimate shoe "doctoress"
professor?
I am the shoe professa,
Robert.
- I agree with you.
- Completely.
I think you've gone
to the top of the mountain,
and you are the best.
Thank you.
Here's the problem--the best
shoe doctor lady in the world
made $64,000
for the entire year
with these parties.
But now she's gonna ask
other women
to give her $100,000.
Your concept is ludicrous,
with all due respect,
unless you sell one.
I'm out.
You're too doggone exhausting.
You're ferocious
in your passion.
- But as a partner?
- I'd be on dr*gs.
- It's what women love. - They love the energy.
- In you.
Trust me. I'm telling you
it's what sells shoes.
No, it's a great thing,
but you're not gonna
- transfer that into people
- who are gonna pay $100,000
to get a truck and take
your shoes and go there.
It's--you're asking too much,
so I'm out.
So after listening
to you now for a while,
I'm gonna grade you
at 70% entrepreneur,
But to be successful, you need
to be 100% entrepreneur
with the elements,
the flair of nut bar--
wisps of it, essence of it.
You're too crazy.
That's the bottom line.
So look, no way I'm giving you
$150,000. I'm out.
Thanks.
Very entertaining.
Thank you.
Kevin, you are absolutely
a nut bar number ten. Okay?
And I will just tell you
that you made a big mistake,
missing out on working
with the shoe professa!
♪♪♪
We are Phillip and aida lough,
and our business is llama brew.
- Animals are a big part
- of our life,
- and we earn our living
- by putting on petting zoos
for children and fairs
and other events.
A few years ago, we had
a mountain lion att*ck
- that k*lled
- some of our livestock.
So I did some research,
and I found that llamas
were a great deterrent
to mountain lions.
So I asked my husband if we
could buy some, and we did.
- We ended up falling in love
- with our llamas.
They're wonderful animals,
- and it also inspired a great
- business opportunity.
This is Eden right here.
Eden's working right now,
giving us--
getting--getting ready to give
us some llama brew, actually.
Eventually it will be
llama brew.
- We need the sharks
- to invest in llama brew,
so we can make a living
that explores our interest
in animals, the environment
and also allows us to spend time
with our children.
♪♪♪
My name is aida camwich-lough,
and I'd like to introduce to you
my husband and my business
partner, Phillip lough.
Today we're asking
for $125,000
in exchange for 10% equity
of our eco-friendly,
green company,
llama brew.
Llama brew is an affordable
liquid organic fertilizer
that's currently being sold
for home gardening
- and also
- for commercial applications.
- This is llama brew
- right here.
And this is one of our
employees. her name is Eden.
She works 24 hours a day,
- So this is llama excrement,
- this stuff?
- Yes, it is.
- Llama doo.
Llama doo.
This is a tree that we bought,
- and it d*ed
- a week after we bought it.
I poured llama brew on it.
This is the tree today.
What makes somebody
go pick up poop
and want to make a juice
out of it?
We own llamas. We knew they
produced a fantastic fertilizer.
So it just kind of hit me--
let's liquefy and put it
in recycled bottles.
Do you do all the manufacturing
right there at your--your place?
Yes.
Right now we are
manually manufacturing.
You scoop it up?
I scoop it up from--
- scoop it up. Shovel it up. - We call
this business - green from the ground up,
because the pellets
come out green,
and we're a green company.
- What makes this better than
- other fertilizers?
Well, most fertilizers
are man-made chemicals.
Ours is not
man-made chemicals.
So this is right from the butt
to the plant?
Yes. yes.
"Butt to the bottle"
should be your motto.
Okay, so how much of this
have you sold already?
We've sold $4,000 worth.
You're telling me
your business
is worth $1.25 million,
and you've got $4,000 in sales.
You know, I could buy
a lot of llamas myself.
I could build a llama farm
with that money.
I could have a mountain
of llama crap... for less.
We have streamlined
this business
- to be the lowest overhead
- possible.
Yeah, but you're shoveling
for free.
That's correct.
- And we also have people
- that are shoveling for us.
- They're dropping at our door
- 'cause they need
to get rid of it.
Is this a patent
or proprietary product?
Can you patent this product?
Yes. we--we have, uh, filed.
We have a provisional patent.
On what?
On the process.
- The process, not the poop.
- You can't patent poop.
So is there a unique process to
take the poop and liquefy it?
Yes, there is.
No one's gonna mind the aroma?
- No.
- No, there is no aroma.
- Really?
- It's odorless?
People walk by, and they looked
and they said,
"it doesn't smell."
Now the big dollars have to be
spent on educating people.
Like, the--the process
of teaching
the average American consumer
that liquefied llama poop
is good for their garden is
gonna cost millions of dollars.
You'd have to educate people
turd by turd.
I'm out.
You know, I'm interested
in having llama manure
in my portfolio, because I can
now understand the benefits,
but $4,000 in sales
is absolutely nothing.
Of course.
I'll take you out for dinner
and spend more.
We know that that's what
your perception is, because--
it's not perception.
It's reality.
No investor in their right mind
would ever give you $125,000
for 10% of $4,000 in sales.
I'm speechless. I can't deal
with you guys because of that.
I think you made
a fatal mistake.
I'm out.
Kevin has voiced
my concerns.
It's not an investment
that--that I would make,
uh, based on all the numbers
that we've heard,
so I'm out also.
For me, the, uh, numbers
just don't add up,
as I'm sure you realize by now,
so I'm definitely out.
Phillip?
Yeah.
- What's the cost
- of a single llama?
The cost of a llama?
Yeah.
$500 to $20,000.
My kids love them.
I may buy one, but I'm not
buying this business. I'm out.
Thanks, guys.
Thank you.
Thank you.
I gotta see if it smells.
Don't eat it, Robert.
Don't open it. It smells.
- Ooh. keep it over that way. - You sure
- you want to do it?
- What are you coming
- over here for?
Come on. I'm good.
I'm cool. I'm cool.
- Actually,
- it doesn't have a bad odor.
- It's not that bad.
- Here. smell it.
It doesn't smell that bad.
With an innovative twist
to a common product that has
been around for centuries.
♪♪♪
Hi. my name is Alan Kaufman.
I'm the founder and president
of a company called nubrella.
I'm seeking
a $200,000 investment
for a 25% stake in my company.
What I'm about to show you is
a new, revolutionary
umbrella design.
We are all well-familiar
with the inverted
and breaking umbrella.
My design introduces some new,
game-changing innovations
you never would have expected
an umbrella can do.
Nubrella is impossible
to invert.
Nubrella will keep the user
significantly warmer,
as it blocks wind chill.
And I've saved the best
for last.
Nubrella can be used
completely hands-free,
even in significant winds.
I can't wait to see it.
Wow.
- Oh, I gotta see it. - Let me show you
- how it works.
And then you would
simply snap this in here.
Oh, I didn't expect that.
Can I please try that?
Absolutely.
- Do--do you have another one, - Alan?
- Yes.
- Can I try one?
- Sure.
- Now you know what
- this reminds me of?
- "I'm
- going to destroy the earth."
Alan, what does that weigh,
that umbrella?
It weighs about 2.5 pounds...
Boom!
- But when it's on your shoulders,
- you won't even feel it.
It's really light. So--
that is so funny to look at.
It's different. It's
unique. it looks good on you.
Hello, Barbara.
It's an attention-getter,
for sure.
How many have
you sold so far, Alan?
I've sold 3,000.
How do they find you to buy it?
Uh, the media picked it up,
and it's all over the world.
I get calls every single day,
and I've never spent $1
- in marketing
- or advertising this product.
- What do they sell for
- on the Internet site?
- $49.
- Yeah.
- But get this--i just sourced
- a new manufacturer,
and right now, you can buy
this product for $29.
That's better.
$29?
What's your cost on that?
My cost is $14.
Do you have any orders
on this?
I have hundreds of orders right
now that I cannot fulfill.
From what, consumers? Uh...
All from the Internet.
- So, Alan, you've sold
- 3,000 units, one at a time,
- out of your house?
- Right.
- I'm assuming
- this has a patent on it.
I do have a patent.
It's been issued a U.S. patent.
I have a patent pending
in all of Europe right now.
My goal is to build
an extreme weather gear brand.
Everybody that's bought
this product
currently owns
a regular umbrella,
- but they clearly recognize
- this product
- for more extreme weather
- conditions
and for its revolutionary
hands-free feature.
I've got people right now
riding bikes with this
all around the world.
That's a home run.
How would you ride a bike
on it?
You just strap it on,
and it will not move
in 35-mile-an-hour wind.
Are you saying it's--
it's firm?
It won't move.
Alan, what are you asking for,
for how much?
I'm looking for $200,000
for a 25% equity.
I've already put in--there's one
investor for $400,000,
and I've put in $500,000.
$900,000?
So you've got $900,000
in the ground?
$900,000 in cash.
Alan, if you've put in
$900,000 already,
why do you need
another $200,000?
I'm out of money.
That's an honest answer.
Right.
I-I like that.
I've come here
with an aggressive option
for you guys, because I've seen
what you've been doing.
So far, I've got orders
from 47 countries.
I gotta tell you,
it grows on you.
- When you first showed it
- to us,
- I thought it was funny
- and weird.
- I use it in New York, okay,
- and I've had people
- come up to me and say, "where
- did you get that?" You know?
Have you talked
to any retailers at all?
I haven't. I, you know, I--
so you have blown off
- the traditional distribution
- channel completely.
I get hundreds of inquiries,
wholesale,
from outside of the U.S.
What--what are you doing
for a living right now?
I'm doing this right now.
So you're profitable, in regards
to you paying your own bills?
No. I've been getting funded,
still, internally from family
on the thing.
Oh, they must love you.
They don't really want
to talk to me anymore.
Alan, I'm gonna, uh,
I'm gonna--
I love this guy. He's honest.
No, he's an honest guy.
- With due respect, I think
- it's a great sports umbrella.
- I think it needs - that sports angle.
- Right.
But in lieu
of the standard umbrella,
- I don't think
- it's ever gonna be a go.
- It's--it's, you know,
- I never designed this
- to really compete
- with the umbrella.
To me, it's a new line item.
- But either way,
- I'm out.
- Alan, uh, I give you
- all the credit.
You came out here, and you took
a very odd-looking thing
that made me laugh and convinced
me you've got a real business.
But as far as myself, though,
I'm out.
Alan, I-i-i like the product.
I-I always look for something
that's very unique
and nothing like it
in the marketplace,
but I have a challenge
- with the--the amount of money
- you're looking for--
uh, $200,000 for 25%.
The best deal I could
come up with would be 200 grand,
uh, for 65% of the company.
- You know what really makes
- me mad is that harrington
has his own distribution channel
with this TV stuff.
Yeah, I know.
It just really pisses me off...
Thank you.
Because I can't
compete with that.
Like, it's a real problem.
I mean...
Are--are you in?
No. I'm out.
I've made Alan an offer.
I never got a yes, a no,
a maybe, a whatever.
That's true.
I mean--
uh, well...
I guess, with, you know,
with all due respect,
- I think the equity is
- just a little bit too high.
So that's a no?
Yeah. I think
I could go as high as 35%.
Ouch.
No. that would never work
for me.
Mm-hmm.
Kevin knows how to brand you
to the everyday consumer,
and I know how to do it
through retail as well as grow
this extreme weather gear
to a bigger program.
I don't mind
getting in with Kevin,
because I think that both of us
add certain areas.
You can get both of us
for 60% of the company.
W-we'd put the $200,000 up.
You'd have 2 partners...
Right.
my television power,
together,
- to take this thing
- to the next level.
I really want you guys in.
I think you're both gonna,
you know,
- really add a considerable amount
- of value.
- Um, I think
- it's a little rich.
- Would you accept 50%
- for that price?
We said 60%.
♪♪♪
- Daymond and Kevin harrington
- have offered Alan
$200,000 for 60% of nubrella,
but Alan has countered,
only wanting to give up 50%
of his company.
Would you accept 50%
for that price?
We said 60%.
You would have to control
because it's your money at risk
with the production.
Right.
we're partners on it.
Look at these savages.
I'm about to make it rain
on him.
We would like to state it very
clearly--$200,000 for 51%...
Right.
To us, 49% to you.
- Right. what does the 51% mean
- to you? You want control.
- I really like
- these guys.
We would like to control
because our money is at risk
manufacturing and producing
the product.
Right. my concern is,
you know,
- if it's something
- that does ramp up,
- it could ne--it could need
- additional capital,
and I don't know where
that's gonna come from if--
you won't need that.
You don't think so?
You won't need it,
because, uh, as long as--
this is why I'm saying it--
if you can show me valid orders
from a retailer...
Yeah.
Then I can finance everything...
Forever.
And my role would be?
You're gonna keep running
the business, you know.
Running the business.
Alan, I can't take it anymore.
What are you gonna do?
- I don't know.
- It's a tough decision.
- It is a tough decision,
- but you gotta make it.
So, Alan...
All right, look it. I'll live
and die with you guys.
You got a deal.
We got it. Good.
- All right. Okay, good job. - Thanks, Alan.
- Okay.
Okay.
I look forward
to working with you.
Okay, buddy. Good job.
Wow.
You guys slaughtered him.
You slaughtered him.
We left him as much meat
on the bone that he could have.
You--hey.
He told you the truth,
and you used it against him.
I ashamed of you.
The guy--the guy's a worker.
I like him.
- We're gonna make a-a company
- out of this.
I probably never would have sold
if it wasn't for daymond
and Kevin.
- You know, what they--
- what they bring to the party
is really more significant to me
than the money
to make this thing happen.
01x10 - Episode 111
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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.