01x05 - Episode 105

[bunniefuu]

- 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.

Have you had success?

I've had huge success.

- Really? give me an example.
- I've sold ten million of 'em.

Whoa.

The sharks are ready to invest

using their own money,

but only for the right person

with the right idea.

You wait for people to die?

It's just downright freaky.

There's never

a better time to upsell

than when a family

is stricken with grief.

But first, the entrepreneurs

must convince a shark

to invest the full amount

they're asking for,

- or they'll walk away
- with nothing.

It's a unique idea.

There's no question.

The question is,

is it a good idea?

- And if the sharks hear
- a good idea,

- they'll fight each other
- for a piece of it.

- Robert, I don't want you
- to think of me as cold,

- but what do we need
- daymond for?

- You gonna let him
- screw me like that?

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 into the shark t*nk

is cactus Jack,

a lifelong entrepreneur

with a new product to pitch.

♪♪♪

Howdy! I'm cactus Jack!

Welcome to Iowa!

This is where my heart is.

- You know,
- you might look around here

- and think
- it's a little bit much,

- but in the world
- cactus Jack lives in,

- too much isn't even
- a good start.

- My name is Jack barringer.
- Everybody calls me cactus Jack.

I'm 65 years old.

And my one claim to fame

is I've never had a job.

- All I do is create products
- and bring it to market.

I've invented cleaning products,

fishing lures,

- arm wrestling machines,
- all different kinds of things.

I'm a country boy from Iowa.

I never started out thinking

that I was gonna be

an entrepreneur.

Now I've got dozens and dozens

of products on the market.

My wife Emmy and I,

we've been together 46 years,

and she'd be the first

to tell ya

it's been a pretty wild ride.

- I've made millions
- and I've also lost millions.

The reason that I'm looking for

an investment from the sharks

is, very honestly,

I've taken my risks all my life.

I went bankrupt years ago,

and frankly, I don't want

to go through that again.

Yeah-ha!

I'm really hoping

that they're gonna get on board.

♪♪♪

My name's cactus Jack.

This is my daughter Kelly.

She's a personal fitness

trainer.

And I invented a new product

for fitness called the body jac.

I'm, uh, looking for

a $180,000 investment,

and I wanna give up



I went to, uh, my doctor here

a couple years ago.

And I've always had a problem

with high blood pressure.

To get the weight down,

he wanted me to go home

and do push-ups.

And so I went home,

got on the floor,

and started doing push-ups.

I got about a half-one in,

and I collapsed.

I'm 65 years old,

weigh 260 pounds.

And I just couldn't

do push-ups.

What I'd like to do is have

my daughter get on here quick,

and we'll just give you a quick

demonstration how it works.

What it has here

is a series of these bands.

And there's different weights

on those things.

And so just by simply changing

the band system on this thing,

you can get either 100 pounds

or 125, 150.

You work--

so the heavier the weight,

the easier the push-up?

Exactly.

Jack, your daughter looks like

she doesn't really need

much of a workout,

but you really look like

you need a workout.

- Have you been working out
- on this and losing weight?

- No, I haven't.
- This is the prototype.

Jack, are you planning on being

the pitchman for this device?

No. no, we will...

Do I look like a...

- No.
- That's what I'm worried about.

No.

What are those things? Are they

patents? is that what you got?

Yes. all of these

are patents of mine,

and I funded

all my projects.

Did most of those sell well?

Very well.

Jack, what does it cost you

to produce that,

and what does it cost, or what

would you intend to sell it for?

We're gonna make it for right

around--between $20 and $30,

wholesale out of China.

It'll come out

anywhere from $89 to $129.

Jack, I see another

workout device on the floor.

Along with

all the others I've seen,

and I ask myself,

what's special about this?

And the answer is--let's be

honest with each other--nothing.

Every guy and his dog

has something

- they wanna sell you
- in fitness.

What matters is,

can you tie a huge name to it?

- Can you get
- a huge budget to promote it?

- Can you get out there
- and get some market share?

All of that costs money.

Lots and lots of money.

You ever done this before?

I have done it before.

Have you had success?

I've had huge success.

Really? give me an example.

- I invented the world's first
- tablet all-purpose cleaner.

I had it made to look like

a .45 caliber b*llet.

I packaged it

in amm*nit*on boxes.

I called it

cactus Jack's 1-sh*t.

Did you sell any?

I've sold

ten million of 'em.

How much money did you make?

Several million.

So why are you here

asking for $180,000

if you made several million?

Well, I've taken my risks.

I was a millionaire

by the time I was 32 years old,

and I was flat broke

by the time I was 38.

That's the game that I play.

I'm a risktaker,

and the family...

Have had to deal with this

all their life.

Up, down, up and down.

I'm an entrepreneur.

I go with this product.

You're not just investing

in the body jac.

- I want you to invest
- in cactus Jack,

and I hope one of you decide

to help us with it.

You know, Jack,

I've had a lot of partners

in my life, done a lot of deals.

But I've learned one lesson

that matters--

your partner has to have

skin in the game,

because the only thing

that matters is money.

I have $27,000 in the game.

Yeah, but you want $180,000.

That ratio doesn't make sense.

I see I have all the risk,

and you've got all the upside.

I don't like

those kind of deals.

I'm out.

The dots don't connect

for me.

If you have the kind of money

you've told us you have,

you should

be funding this yourself.

Why give up 20% of the business

when you can have 100% of it?

It doesn't add up for me.

For that reason, I'm out.

- Um, cactus,
- I love the fitness category.

- It's huge. I mean, it's millions
- and millions of units.

And not everybody can do

these other push-ups.

This is where

I'm wrestling with the deal.

You're asking for $180,000.

I could see making...

A $90,000 investment

in this project.

I want half the company.

But you need to convince

one other shark to match that

to get a deal done,

or there is no deal.

This is not a product.

It's a category.

- I know how to make
- these things happen,

and I want you

to give me a sh*t at it.

Could I do something?

I'd like to invest the $90,000,

but a big contingency--

and one I don't know

if you're really able to meet--

- I see you as a great salesman
- for this,

but that gut is in the way.

So I'd like

the contingency to be

that you try

your new machine out,

you lose 30 pounds and take

photos before and after--

let me get this right.

This guy has to lose 30 pounds.

He's gotta lose

the cactus Jack gut

to get the 90 grand

from Barbara.

- Cactus, I'm in for $90,000.
- Barbara's in for $90,000.

We own 50% of the company.

You have to lose 30 pounds.

Do we have a deal?

♪♪♪

Have offered cactus Jack

$180,000

for 50% of his company,

but there's one big catch.

I'd like the contingency to be

that you try

your new machine out,

you lose 30 pounds and take

photos before and after.

Cactus, do we have a deal?

Wait a minute.

Wait a minute.

I'm interested

in the cactus Jack company.

I'm not interested

in that one piece

because then you come out

with a pill tomorrow

and a better pillow

the next day, and I--

- I may not have
- none of that.

I want to be

in the cactus Jack business.

I will give you the $180,000

for 50% of the company,

but I want 50%

of everything up there as well.

Now why would he take that deal,

daymond? it makes no sense.

'Cause with my deal, he doesn't

have to lose 30 pounds.

Cactus, I need an answer,

or I'm gonna take my offer

off the table.

I need an answer

on my offer.

- Which was
- that the two of you

put up $90,000 apiece--

and you lose 30 pounds.

I lose 30 pounds.

Cactus Jack, he's your man.

If he can't do it,

no one can.

You're on!

I'll take your deal.

Whoo!

All right.

Okay. good job.

Give me a high.

Give me a low.

Let's go make some dough.

I got news for you guys.

There's not a chance in hell

he's losing 30 pounds.

This deal's never gonna happen.

- The 30 pounds is gonna
- keep it off the table forever.

I can't wait to show you

my skinny cactus Jack.

Yeah. let's see that.

My dad influenced me

with but one quote.

He said, "you can trade hours

for dollars,

or you can trade ideas

for millions."

Guess which one I chose.

♪♪♪

Next up is Irina blok,

who believes she's created

the next big trend.

♪♪♪

Hi.

My name is Irina blok.

And today I'd like to introduce

you one of my products.

It's called face-block.

I'm looking for

a $50,000 investment

in exchange of 30%

of my product.

So... face-block is

a collection

of fashion surgical masks.

♪♪♪

It's designed for people

with edgy sense of humor

- who want to
- express themselves.

Taking something...

Oh, my gosh.

- Sterile...
- Wow!

And uninteresting

as a surgical mask

and infusing it

with fun and creativity

- creates
- a really unique product.

See for yourself.

Try it on.

I think I'll pass.

He's the perfect guy

for this mask.

Oh, yeah.

Irina, how do I put it on?

Just...

Just put it on.

Does it have

real surgical properties

in terms of protecting

against disease?

That's when

the investment comes in.

That's when

the investment comes in?

Does it work?

Daymond,

let me see yours.

- Look at daymond.
- He's wearing it wrong.

No?

He needs two.

Can you talk with it on?

What's so funny?

Hey, listen, I'm trying

to make some money here.

Tell me if this works

or not.

So you're saying

these prototypes are not made

from the true

surgical mask

they're not.

Design possibilities

are endless.

I'm sure.

So I see face-block

at every hospital.

Do you think hospitals

may have a problem

putting a pig snout

onto a doctor's face?

The head of

American pediatric board

had contacted me

when they saw this mask,

- and they said
- they think it's genius.

They want to have those masks.

Do you have any interests,

any sales?

In one week

after I launched it,

it was on fox news,

"sydney morning herald,"

- I had close to million hits
- on my web site.

Whoa.

You had a million hits

to your web site?

Close to. I had 700,000.

But is that

because swine flu

was all over the news

for two weeks?

Now we don't see it anymore.

It's an epidemic

that came and went.

You need a new epidemic

to get that kind

of a hit profile again.

So how many sales did you have

- from--from all those hits? - I had
couple hundred of sales, - but that is--

- why only a couple of hundred
- when you had--

- 'cause it's not
- a real surgical mask.

But, Irina, there's really

no company here.

You--you're brand-new. You just

started. it's a brand-new idea.

That's right.

The question is,

is it a good idea?

In foreign markets, Irina,

where they wear masks

more often,

do they do designs

on the masks?

Like in Japan, for example.

They don't,

and I think there is

a-a niche opportunity for that.

- Is this a fashion statement,
- daymond?

- Could you make this happen - on the street?
- No.

I don't believe so.

Why not?

- It's, uh, something
- that they don't normally do

in the United States.

It's just downright freaky.

For that reason, I'm just out.

It's so freaky.

Irina, it's a novelty item,

not a serious item,

and--and I just don't see

the market for it.

So on that note, I'm out.

I'm gonna stand with Kevin

as well,

and I'm out

for the same reasons.

I-I--keep doing it

as a side business.

Don't quit your day job.

I'm out.

It's a unique idea.

There's no question.

But as an investable concept,

it's not there. I'm out.

Okay. thank you so much.

Good luck.

Good luck.

Thank you.

My target audience

are people who dare

to express themselves

and who have

edgy sense of humor,

but I don't think

it's the sharks.

My name's Jeff Cohen,

- and I'm from
- Stevenson ranch, California.

I've been married for 20 years,

and I have 2 sons.

Who wants coleslaw?

Uh...

I've been a diabetic

for 15 years,

- and it's impossible
- to find snacks that taste good

- that won't spike
- my blood sugar.

Okay, so grab the oats,

and we need 20 ounces of oats.

With the help of my family,

we've come up with a healthy

gourmet diabetic product

that's not just for diabetics

but anybody interested

in a healthy lifestyle.

And yummy.

I've invested a lot of

our family's hard-earned money

into this business.

Go get it.

As an entrepreneur,

my dream's always been

to develop a product

that everybody loved

and bring it to the mass market.

My family's all behind it.

I don't want

to disappoint anybody.

- If I don't get the investment
- from the sharks,

that's all at risk.

♪♪♪

Hi, my name's Jeff Cohen,

and I'm the granola gourmet.

I'm looking for

$175,000 investment

for a 25% stake

in our company.

But before we get started,

I'd really like for you

to try our product.

Kevin, if you'd be kind enough

to pass those down.

Sure.

And I'm here to present

a gourmet diabetic product.

Our product has a slogan.

The slogan is...

"Energy bars for athletes,

diabetics & you!"

I've been diabetic

for the past 15 years

and could never really find

a snack that both

tasted really good

and wouldn't cause

my blood sugar to spike.

Out of that,

we created granola gourmet.

- Did you guys like the bars?
- Very nice.

- Very good. - They're also really good
- for you.

Jeff, what experience do you

have in making granola bars?

How did you come up

with the formula?

I actually woke up, and my wife

was making some great muffins.

And I said, "hey, babe.

It would be so great

if we could make something that

I could actually eat sometime."

You know what, Jeff? I say that

to my wife all the time.

Well, my--my son was 15

at the time,

- and he said,
- "you know, dad, let's do that.

- Let's make something
- that I like that you can eat."

- And so we spent that entire
- 2-week holiday period

learning what ingredients

on the glycemic index were low.

Identifying the fact

- that it looked like we could
- make a granola out of this,

- my wife started
- eating these with us,

and she gave me

the greatest compliment--

- "Jeff, you know what? These,
- uh, fruit flavored bars...

They're okay."

Jeff, how long you been married?

Uh, 20 years today.

'Cause I've been married

for almost 20 years.

Isn't it funny

that after 20 years,

"okay" from your wife

is, like, "whoo!"?

It used to be,

"you're wonderful."

Now it's like, "you're okay."

You get the god's honest

from your spouse.

Too honest sometimes.

Sometimes.

Our real success has been in

the Southern California region

of the nation's

largest natural food market,

whole foods.

Frankly, we worked real hard

to get in.

What are your sales

with whole foods?

- Well, with whole foods
- right now,

- we're doing somewhere about
- $8,000 or $10,000 a month.

What are your total sales?

That's most of our sales.

Are you selling

at one whole foods store?

We're in 90%

of the whole foods stores

in the Southern California

market.

How many stores is that?

Uh, right now, that's 24.

Are you getting reorders?

- Every week or two weeks,
- we're in refilling our rack.

- For a business
- that's been up and running

- less than a year?
- Good for you.

- We've actually
- only been doing it

- for about six or seven months.
- But why aren't you - at other stores?

Let's forget the other stores

for a second,

- because I like your approach.
- You got into whole foods.

Step one. They got behind you.

Step two.

To me, step three is roll it out

nationally to whole foods.

That will increase your sales.

And then go to other retailers

once it's on a national basis.

Why haven't you done that?

It requires cash.

Right now, we've been

bootstrapping the company

from the beginning.

And why have you come to us

instead of going to a bank?

- I had a software company.
- I had personally guaranteed

- a lot of loans
- for that business.

After six years

of having run it successfully,

- I got stuck
- with a number of those loans

after selling some of the assets

of the firm and closing it.

That business went bankrupt

is what you're saying.

Uh, I had a personal bankruptcy

because of it.

You want me

to give you $175,000,

and I'll get 25%

of your company,

so I'd calculate your whole

company as worth $700,000 now

with $80,000 a year

worth of sales.

- I don't see how
- it's worth $700,000.

- I agree
- it's not worth $700,000.

- He's doing 80 to 90 grand
- a year in sales.

- Jeff, let's be real.
- You went bankrupt.

That wiped out your ability

to raise money from a bank.

That's life.

It's not my fault.

Your business

is not worth $700,000.

It's probably worth

a couple of hundred thousand

dollars right now--

two times sales--

that's what I think.

For me to give you $175,000,

I'd have to own

your whole company.

I put a number out there

that I didn't think

was gonna be

an outrageous number

but was something

we could work from together.

Jeff, I'm gonna give you

my take on this right now,

- because I'm looking
- at your granola business.

It's a--to me, it's

a "me, too" business, okay?

- What is me, too?
- I've heard you say that before.

What is me, too?

There's 90 other guys

doing it.

Me, too means there's--

me, too. Everyone's in it.

Oh, me, too! Got it.

Okay, so it's

a me, too business. I'm out.

I like you. I really do,

and I have to be honest.

I really didn't like

the taste of them.

I would have to say I'm out.

Okay.

So you're gonna need

a lot more money,

and I'm not prepared to do that.

But most importantly,

I don't think I'll ever see

a return on my investment.

So I wish you luck,

- because I think you have
- a great product here.

- But I'm not in it.
- I'm out.

Sorry to hear that.

- Jeff, I understand
- your decision to go bankrupt.

It cleans the slate.

But it carries a weight.

If I was your partner,

and the business was successful,

we would require more capital,

and no bank is going

to loan you any money.

That causes me to put up

more capital and more capital

and more capital.

It's a fact. You need a bank

at some point.

You'll never have

a bank, Jeff, ever.

To me, you're radioactive.

I'm out.

You know what, Kevin? There's

nobody who's radioactive.

And Jeff knows this--

the measure of a man

is not how many times

you get knocked down.

Cry me a river, Robert.

- The measure of a man
- is how you get up from that.

- The guy went bankrupt.
- Not my fault.

You've never failed?

- I didn't go bankrupt,
- because I knew the cost.

Let me deal with Jeff first,

and then I'll deal with you.

Let me deal with Jeff first,

and then I'll deal with you.

Sure. all right.

So, Jeff, you've done

a very good job

in getting into

a very large retailer,

and you don't seem focused

on maximizing

on that opportunity.

Only for that reason, I'm out.

- Well, thank you
- for allowing me to present.

- Good luck to you.
- Good luck to you, Jeff.

Okay.

Same here.

♪♪♪

Okay, so the guy has

a wife and kids,

and you just told him that

he's a radioactive human being.

Pretty damn tough.

- I asked the guy a question.
- Did he go bankrupt?

He said yes. I now know a bank

will not finance him, period.

- And then you dumped on him. - Just--
- I didn't dump on him.

I said I can't invest in him.

He's radioactive.

He went bankrupt.

Let that be a lesson, Robert.

Don't go bankrupt.

- And there are a million people
- out there who are gonna

- get the wrong message
- from what you're saying.

- No, they're getting
- the right message.

They should not go bankrupt.

There's a million deals

in the naked city.

I've forgotten about this guy

already. bring on the next deal.

I'm here to make money.

Well...

The sharks focused way too much

on my personal bankruptcy.

This is a great country.

We get a second chance here.

It's just a shame they're not

gonna be participating in mine.

Next into the shark t*nk

is rikki farrar,

whose business was inspired

by her mother.

♪♪♪

Hi. my name is rikki farrar,

- and I'm the owner
- of good grief celebrations.

I'm here today to ask

the shark t*nk for $50,000

in exchange for 25% equity

in my company.

So good grief celebrations

is a funeral concierge service.

As a funeral concierge company,

we're happy to write the eulogy,

officiate the funeral service

and handle

all of the post-funeral

family gathering details.

The celebration of life movement

is gaining tremendous momentum.

We offer celebration of life

party planning.

Michael Jackson had one,

Richard pryor had one,

Bernie Mac, my mother as well.

Rikki, do you have any sales?

Yes, I've had, last year,

$11,000 in sales.

That's it?

Yes.

Rikki, how did you

come up with this idea?

- I actually came up
- with this idea

- when my mother passed away
- two years ago.

- She had me plan her funeral,
- and she kept on saying

- that she wanted to have
- a celebration of life party,

and that she didn't want it

to be sad with a bunch of tears.

So I actually planned

an amazing party for her.

- We had a deejay.
- We had an open bar

- that served - her favorite drinks.
- Rikki--

- and people kept on coming up to
- me--I'm sorry, if I could just

answer his question? Thank you.

People kept on coming up to me

- telling me that it was such
- a great idea and that you should

- think about turning it
- into a business.

- Rikki, you don't have
- a problem with your mom

- passing away and people
- drinking at a bar?

- Absolutely not.
- It's a celebration of life.

Robert, we Irish

do that every day.

Irish wake, yes.

Absolutely.

I love this business.

Thank you.

People are dying to get in.

There's no question about it.

Literally.

- There's never a better time
- to upsell

- than when a family
- is stricken with grief,

because they're not really

looking at the margins anymore.

That fits you so well.

- That sounds so much like you. - Barbara,
- I'm dealing with facts.

This is why the funeral business

is wonderful--

lots and lots of clients.

The problem is,

everything you've listed,

with the exception, perhaps,

of the party celebration

planning,

is incorporated into most

funeral home business models.

Tell me why you think

you can compete

- with every funeral home when you
- don't have one yourself.

- And that's why your sales
- are so low.

The reason why my sales are

so low is because of exposure.

People don't know

that celebrants exist.

Okay, rikki, let's role-play.

Somebody in my family just d*ed.

I don't even know you exist.

Right.

I'm sitting down

with the director saying,

- "I'm stricken with grief.
- Help me get through this."

- And he's upselling me
- like crazy. Where are you?

- You're nowhere. You're not
- even inside that room,

because you're not

in the funeral parlor.

The bodies always go there

first. they don't come to you.

You have no dead guy magnet.

So one of the things

that I actually use

to attract clients--

I have a therapy dog,

- and we visit hospice
- and nursing homes.

- And as people die--
- you wait for people to die?

That's one of the ways

that we get business, yes.

Oh, come on.

Does he kind of smell

who's about to croak?

I wish he could. That would

make it a lot easier.

Do you not think you're

taking advantage of people?

Absolutely not.

You're going out

to people with a dog

- to make them feel comfortable...
- Right.

- So you can sign
- their family up for this deal?

- I'll tell you what's wrong with
- it. she's not charging for it.

- Kevin, Kevin. Kevin,
- just shut up for a sec.

- No. there's no money in it. - No, no, no.
- Because you know what?

I know you don't

give a crap, but--

- I do give a crap. She's making
- no margin on the dog.

- There's a more
- fundamental problem

- with this presentation.
- You're trying to get in front

of people in their moment

of need...

Absolutely.

And you're trying to take

advantage of their grief.

No, I'm trying to get business.

Like every funeral

home does, Robert, every day.

Exactly. there's no difference.

- I think she's a slick
- businesswoman, and I think,

- deep down, she knows she's
- taking advantage of people.

- And she doesn't have a problem
- with it. But you know what?

I do, and I don't want to be

in business with you

for that reason.

I'm out.

Okay.

♪♪♪

It's a little

too creepy for me,

- and I think it's
- a 1-man business.

I don't think it's that

expandable for you.

Okay.

So I'm out.

Let me ask something, rikki.

Is that your mom?

Sure. yes, it is.

And what do you think she

would think of the business?

If my mother was alive,

- I honestly wouldn't be here
- in business today,

- because my business
- is a tribute to her.

- I think her looking down on me
- right now,

she is so impressed and amazed

and very, very proud of me.

So Robert is actually wrong

in thinking that you're

just trying to manipulate

and come in and take advantage

of that fact that

somebody's grieving?

It's not about manipulating

and taking advantage at all.

Somebody has to officiate

the funeral service.

So why not us?

The bottom line

is the money here.

At $11,000 in sales...

I don't see margins.

I don't see profit in there.

But I think that you did

a commendable job

of presenting it to us

and giving us all the facts,

but I'm out.

Rikki, I look at it kind of

as an ambulance-chasing

type business...

It is.

And that's really not

the business I want to be in...

Okay.

So I'm out also.

I looked for every way possible

to find a reason

to invest in you,

'cause I like death.

It's inevitable.

- The problem is,
- you're not making any money.

And for that reason,

and that reason only,

I'm out.

Okay.

Thank you.

♪♪♪

I didn't know

you own funeral homes.

Are you surprised?

I invest in them.

Look, I'm looking at her mother.

She's looking at me. You know

what she's saying to me?

- "I wish rikki
- would make more money."

Hi, I'm Rodolfo saccoman.

And I'm Alexis saccoman,

and we're brothers

originally from Brazil.

- I'm a therapist,
- and I have a private practice

in San Francisco.

I'm director

of online marketing

for a major resort

in palm beach, Florida.

- We combined both
- of our expertise

to create

an innovative business

that has tons

of moneymaking potential,

but also,

and more importantly even,

to help people.

We started in Brazil

and were there

pretty much until the age

of 6 and the age of 10.

Right.

And then that's when my father

made his big break.

- He started as a factory worker
- in Brazil.

- Working his way
- through high school,

- then college
- and then two master's degree.

He knew that he wanted Alexis

and myself to learn english,

because if we learned english,

eventually we could get

to the U.S.

An investment from the sharks

will justify

our parents' sacrifice--

over 14 years since

I landed in the U.S.--

to create something beautiful,

and finally we can taste

a bit of this American dream.

♪♪♪

♪♪♪

Hello. my name

is Rodolfo saccoman.

And I am Alexis saccoman.

We're the founders and creators

of our web site--

my therapy journal.

Today we're here

to ask $80,000

for a 20% equity stake

in our business.

Now if you'll

please indulge us

- and close your eyes
- for five seconds?

Think of something

that makes you feel good...

Something that

makes you happy.

$10 million.

Okay.

Please open your eyes.

- That's what we're
- in business for--

to give that feeling

to more people more often

and in more places.

We are

revolutionizing therapy.

- What my therapy journal
- offers

is an online

psychotherapeutic tool.

We provide the most effective

and affordable alternative

to traditional therapy.

- So, Alexis, would you like
- to provide and share

- a little bit of
- what our software does?

Sure. currently, the entire

web site is data-driven.

So far, the company

has two components--

the first is journaling

that allows you

to pour your heart out

- in the most secure
- of online journals.

- The second component
- is the progress questions

and the progress graph.

It allows you to track

any emotion, behavior...

Mm-hmm.

Diagnosis, problem,

ambition, hobby--

it allows you to track

anything you want,

and it graphs it for you

in a line graph

- so that every time you log on,
- you get to see

- how you're doing today
- as compared to last week,

last month or last year.

Okay, that's wonderful,

but how do I make money

off depressed people?

We have over a thousand people

that have signed up.

We have paying customers. This,

again, is making money today.

There's no overhead cost.

What are they paying?

If they sign up for a full year,

it is $7.95 per month.

If they do a 3-month period,

then it's $11.95 per month,

- and if they just do
- on a month-by-month basis,

it is $14.95.

How much money

have you grossed this year?

Last year

we did about $4,000.

But didn't you just

say something

about a thousand members?

We have--yes. This is how

the system works--

not paying members.



have signed up

for a free trial.

It's a 14-day free trial.

Okay. I understand.

- After the 14-day free trial,
- they have an option

to buy a subscription.

How many people

turned over to buying?



become a paying customer.

How many people hit the site?

We had about 18,000 people

hit the site.

You know that's low, Rodolfo.

I completely agree

that it is low,

- the amount of visitors
- we have had.

We have invested $125,000

of our life's savings

to create this.



to develop the software.

- We didn't have those funds
- for advertising.

We don't have a p.R. Agency.

The way we have done it

mostly is word of mouth.

I still haven't heard

how many paying users you have.

I think around 121 paying.

Is not very much.

The percentage--

I just want to pause

for a moment if I might.

Yes.

Yes.

I like you, but I sure don't

like this business idea,

so I'm out.

Okay.

- Guys,
- with 120 paying customers,

that's a tough one for me.

I-I'm gonna bow out and--

let me say that

this is...

Thank you.

The infancy.

I'm out.

This is the infancy

of this web site.

- We're currently
- in third stage conversations

with aetna,

the insurance company.

They have 37 million

people with--

tell us about that.

See, that's interesting.

That's interesting. Now you've

got my juices flowing.

Sure. we got connected

to some folks that saw

the potential of our product

in an insurance world.

- So, Rodolfo,
- now you're interesting.

Okay.

Up until this point,

with all due respect...

- Okay.
- You had insignificant users.

Okay.

Frankly, the site...

Really insignificant.

It's very simple.

It's really an online journal.

But who cares?

If you can get

a large insurance company...

Yeah, yeah. I get the joke.

I get the joke.

To promote this as part

of get-well therapy,

well, my friends,

my fellow immigrant friends...

Right.

Right.

We're on to something.

It's very clear.

A large insurance company

signs up...

Correct.

Provides this to their members--

in fact, better scenario--

they force their members

to get insurance to log on.

Everybody has to pay you

a certain fee.

Let me throw out

an idea to you.

Yes.

What if I gave you $80,000

for 50%?

Okay.

Is it contingent on aetna?

Because I'd be interested

in potentially coming in

for maybe even more money,

but to me,

the company has no value--

until the aetna deal.

No value... or any other

similar insurance company.

I'd want to--

I'd be willing

to partner with you,

because I think the potential

is very interesting.

- You know, when you started
- the presentation,

I thought it was just another

Internet birdbrain idea.

Lots of those are out there.

You guys

are not crazy chickens.

Guys, I want in on this.

So, Rodolfo,

here's the offer,

and, uh, daymond and Kevin--

$80,000 for 51%

of the business.

That's the offer.

Gentlemen, did you notice that

subtle change that happened

in the last few minutes?

Who are you?

I just want to bring

your attention to it.

Are you the offer maker?

Barbara. Barb. Barb.

Can we help you?

Who's this?

I thought I had heard 50%.

I hear a voice...

I want you to know

I'm hearing 51%.

But I don't see anybody.

- Did you catch that little 1%? - Yep.
- We're catching everything.

Yes.

Rodolfo, my friend Kevin

made a subtle mistake.

Because what you really need,

along with the money,

- is you need some guidance.
- Yes.

And between Mr. billionaire

seller of software business

and Mr. Internet over here,

I think that there is

a tremendous value on that.

You couldn't have

better partners.

Listen, could we take

a moment? Okay?

Take a moment. Take a moment.

Okay. all right.

Robert?

Yep.

I don't want you

to think of me as cold.

You know I don't think

of you that way, Kevin.

What do we need daymond for?

♪♪♪

Kevin O'Leary realizes

there's a third wheel

in their deal.

What do we need daymond for?

It's 51%.

We shouldn't give the 51%.

How about we go in there,

and again,

- we want to make - this realistic.
- Yeah.

We go 49%, because we--

well, what--what if

they lose Patience

and then go, "I'm out,

I'm out, I'm out"?

I think we have to throw

daymond under a bus.

You gonna let him

screw me like that?

- I'm not screwing you.
- It's only for business, daymond.

- He doesn't
- need you in it, though.

He does, unless he wants

to pay ten times more.

If we keep 49%,

I trust that them plus us

is gonna grow this so big.

- Correct.
- See?

Okay.

- Okay.
- All right.

Let's do it.

Yeah.

Okay.

Here's our suggestion.

How about we go 49%/51%?

To us?

No, we keep 51%.

You keep 49%.

But we, working so hard

and believing in this,

we really would enjoy us

keeping 51% and you 49%.

And we know that your expertise

is gonna make our vision

go to the next level.

Like, the five of us

together are gonna--

- wait, wait, wait.
- I have bad news for you.

While you were out

of the room...

Okay.

Daymond got run over by a bus.

He's no longer part of this.

I'm no longer part

of their deal.

Okay.

You're a separate deal?

Yeah.

Unfortunately,

we don't need him.

He doesn't bring

anything to the table.

I bring $120,000

to you.

At 51% for you?

Fifty-fifty.

Alexis, here's what

I'm gonna tell you.

Kevin is right. Daymond adds

no value to this deal.

He's never done a deal

on the Internet.

Who's trying to do cash, baby?

And here's what I'm gonna say

to you about your 49/51.

Out of the four of us here

that matter,

which one of us have ever built

and sold an Internet company

for a few hundred

million dollars?

My point is, guys,

you're gonna go into partnership

with two guys

that have made

hundreds and hundreds

and hundreds and hundreds

of millions of dollars...

In the Internet?

Go for this one.

Did you come to this country

to have somebody control

your business?

You guys--you guys are good,

you know? This is--

Alexis, we're good. I don't know

why daymond is still talking,

'cause as I--

I'm just--listen, these guys

could be my potential partners,

and you are trying--

for a corpse,

he makes a lot of noise.

You are trying

to control their business

- where I'm offering them 50%. - Daymond,
do you even have - an offer on the table?

Yes.

What's your offer?

$120,000, fifty-fifty.

Oh, so let me understand this.

You've offered an extra $40,000,

even though you've never made

any money in the Internet space.

For the extra 40 grand,

they should take your offer?

Also it was fifty-fifty

versus 51/49.

Fifty-fifty. yeah.

Here's what I know

about the Internet--

and, daymond,

thank you for the offer.

We are in at position

that we need your expertise,

because you have done it.

And we have--we have always

follow examples.

What makes, uh, a good student

is who teaches...

Mm.

That student.

So you're gonna be

their employees?

Not at all. Partners.

- We're gonna be--
- partners?

- Partners.
- So it's fifty-fifty?

You're going to trust that we'll

look after your best interests

because we're investors,

and we've done it before.

Is it fifty-fifty?

That--silence, please.

So what are you guys offering,

fifty-fifty?

No.



It's 51/49.

We're putting in--

you want the 51, though.

Yes.

We're putting in $80,000.

I think our offer's

pretty simple.

Rodolfo, yes or no?

- Yes.
- Yes.

All right!

Whoo!

Group hug.

Nice! nice!

Whoo!

- Thank you very much.
- Congratulations.

- Thank you so much.
- I feel good about that.

- I do, too.
- Good job.

Good for you.

Nicely done.

You know what?

- They need the guidance more than
- they really need the money.

Of course, of course.

- I mean, it was a small amount
- of money for any of us.

- I got a good feeling
- about these guys.

- I got a good feeling - about that.
- Yeah.

Imagine they were gonna leave

- before they mentioned - that insurance deal.
- I'm amazed.

- I mean, why were they
- holding that back?

- Barbara,
- that's why they need us.

- 'Cause that would have been
- the first two words

out of my mouth

when I walked out there.

Yeah.

But fate intervenes,

and they got a deal.

Great story. Wonderful guys.

Thank goodness

we came on "shark t*nk."

Our American dream

since we were little kids

today became a reality,

and all the work

and sacrifice has paid off.

And now... we're gonna soar.

Thank you, "shark t*nk."

Thanks. oh.

For most of my adult life,

I've had excessive, bad gas.

Why is this company

valued at $1 million?

They're just joking about that.

I've actually worked in v.C.

If you've worked

in venture capital, then my job

is to squeeze your head like

a teenage pimple right now.

I can't look at you without

picturing you in a pig costume.

Why don't you put out a number?

No, I can't negotiate

with myself.

- You pull the lever.
- I'm giving you the power.

- Oh, my god. This guy's great. - I love this guy.
- He is. He is, right?