Narrator:
Tonight on "Shark t*nk"...
Sharks, this is sports fashion.
We are betting on the passion
people have for sports.
I was raised by a single mom who
instilled the confidence in us
to go after our dreams.
What are your sales?
$30,000.
What?!
Okay!
It's a brutally
competitive space.
Like, I could have
told you that. Duh.
Hello.
John: Whoa!
It's just not right.
♪♪
Narrator: First in the
t*nk is a company
for an underserved customer.
♪♪
Hey, Sharks, my name is Cora,
and this is my husband, Stefan,
and we're from Atlanta, Georgia.
We're seeking $225,000 for
Whoa!
Both: Young King Hair Care. Wow.
Sharks, did you know that...
[ Ringing ] Uh, uh...
Excuse me, Sharks.
It sounds like we may
be getting a video call in.
Hey, Sharks, I'm
the real Shark here,
but I'll let my parents handle
this. [ Telephone ringing ]
I got to take that. I
got to take the call.
Bye!
[ Laughter ]
Well, Sharks, that's our son
and chief inspiration
officer, Kade.
And as you can see, he's the
one that really runs the show.
We actually started this
company because of him.
Kade was born with
a head full of hair,
and we quickly realized
that we needed
help styling his hair
because there was
no plant-based, natural,
or clean hair care products
that were specifically crafted
for young men
with textured hair.
So we created...
Both: Young King Hair Care!
The first... The first...
the fastest...
the fastest...
growing multicultural
brand for young men.
We currently offer five
natural hair care products
that promote textured
hair health and growth
and provide a simple regimen
to make it easy for both parents
and their sons to
care for their hair.
So, Sharks, if you
believe multicultural boys
deserve high-quality products
really tailored for their needs,
please join us on the journey
of redefining male grooming
by focusing on
the next generation.
We are...
Young King Hair Care.
Very nice. Sharks, you'll see that
you have samples in front of you
for you guys to
be able to try out.
Can you tell us a little
bit about yourselves?
Absolutely. Yeah, absolutely.
I was raised by a single mom
who provided for
me and my sister
and instilled the confidence
in us to go after our dreams.
My sister went on
to be a physician,
and I actually worked my
way up the corporate ladder
and was a VP at one of the
largest healthcare companies
in the globe.
When I had my son, as you
saw, he had so much hair,
and I was looking for products
that I felt really reflected
him as a young man of color.
And so it just bothered me
that I didn't find anything
like that that existed.
And my husband actually did
a little, mini "Shark
t*nk" with me,
and I pitched to him,
and he was like, "Yeah, you're
onto something." It worked.
And I was like, "I could
have told you that. Duh."
[ Laughter ]
And, Stefan, are
you in the business?
I am in the business.
So my entire career has
been within marketing,
have worked on some
of the most iconic brands
that you guys know...
So working at General Mills,
working on Nature Valley
and Fiber One and Progresso,
working at Coca-Cola,
where I ran Sprite
for North America.
Wow. Have any competition?
So we have competition
in terms of there being
other textured kids
hair care brands.
There are not a lot
of products out there
that focus on plant-based,
natural, clean ingredients,
but there are... But there's
none focused on boys.
Correct. At all.
Daymond, when you
were a little Daymond,
just a little baby Daymond
When we both had hair.
And you had hair. Greiner:
And you had a lot of hair.
Herjavec: What did
you use for your hair?
You know, back then,
there was either super natural
or you generally
just didn't care.
We didn't have a lot of
information back then.
- Right.
- Yeah.
When we walked down an aisle...
And I haven't been down
that hair care in a long time,
alright... and I
walked back down,
it hadn't changed
in 15 and 20 years.
There was nothing else.
There was nothing
but pinks and oranges.
There wasn't anything that
spoke to our son and spoke to boys.
I'm dying to ask.
$225,000 for 2.5%.
You got to have big sales.
You guys like sales. So
let's talk about $4,100.
That's it? What?
In our first year of sales.
- Oh. [ Laughs ]
- Okay.
And that was 2019.
Herjavec: Okay.
So then, obviously, we know
a little thing called COVID
kind of impacted the business.
So we finished a year
in 2020 at $362,000.
Good for you. That's a
good increase. Nice growth.
Thank you. That is growth. Yep.
So far in 2021, we've been okay.
Herjavec: Okay. We have... Okay.
- Okay.
- Okay.
Is $1.54 million year to date.
- What?!
- Okay!
Okay!
$1.54 million? And
we're on track to deliver
$3 million so far this
year. Cora: This year.
Did you make any money?
Sorry, $3 million, Stefan?
You're gonna do
$3 million this year?
This year. Correct.
That is correct.
O'Leary: Are you
making any money? Wow!
Are we making any money?
Now, we are not profitable yet.
Together: Oh! We're not profitable
yet, but we've got a path to that.
- What?
- Listen, listen, listen.
What's your average
selling price across the line,
and what's your average
cost of good across the line?
Our costs come in at about $2.35
to $3.50, depending on the SKU.
For wholesale,
we actually sell that
between $6 and $6.50 to them.
And then on DTC,
we sell up to $14.
So where did the money go?
Obviously, as a new brand,
we had to drive brand
awareness, right?
So about 70% of our
expenses go towards marketing.
Wow! That's the problem.
Yeah, that's the
problem. That's really high.
But we had to
introduce a new brand
to an audience that
didn't know about us.
How much money or how
much did you raise or borrow,
and how much of the
company do you own?
So we raised $1.6 million.
Hello. Whoa!
We raised $1.6 million...
Now I know why
you're bald. Let's go.
On a convertible note
that closed in March,
and that was our seed round.
Listen, I think you are
right on the right trend.
I definitely think you should
put these gorgeous young men,
your son's faces on
here... Both: Yeah.
Because my
biggest marketing thing
is you should look
at a quick glance
and know what
something is like that.
And know what the brand stands for. But
I feel this is a super-competitive space.
So I have concern for
you in really growing it
to be something enormous.
It's just not the right
investment for me at this time.
I'm out.
Okay. Thank you, thank
you. Thank you, Lori.
John: I see the
need for the product.
You got investors, you
have a responsibility.
I understand asking for
for 2.5 shares. Yeah.
What can you get
behind, Daymond? Huh?
What can you get behind?
Ooh.
Narrator: One Shark is out.
Daymond likes Cora and
Stefan's hair care brand
marketed to boys with
textured hair, Young King,
but he's concerned
about the high valuation
and small stake
they came in offering.
It's not about what I would
want in one of these situations
because there
are a lot of things
that we take in consideration.
You offer me 2.5%.
It's an insult to go to 15% and
It's just not right.
But what would you do?
And it doesn't feel good.
- What would you do?
- What would you do, Daymond?
I would say I'm out.
- Aww.
- Okay.
Out of respect. Alright.
Cuban: You know, it's obvious
you came from a big company
'cause you market like
a big company. Yeah.
And that's tough
when you step into
an entrepreneurial
environment. Yeah.
Branding as a small
entrepreneurial company
is a completely
different effort,
and I'm not sure that
you're gonna be able
to accomplish that.
And I'm not sure
that, you know...
I'm a lean and mean, "work
your way through" type guy,
so I don't know
if we'd be a fit.
So for those reasons, I'm out.
Okay.
I got to tell you,
amazing product.
I believe in you. I
believe in the future.
I just don't understand the
narrow niche aspect of it.
Like, what I was hoping
was, you're going to build
a representative brand to
take on all those products.
So, we are. So, we are.
Greiner: Well, they
have to start somewhere.
Yes, exactly.
Our goal is to create
holistic solutions
from very early on, baby, all
the way up until their teens.
Cora, here's my challenge.
Robert, we're growing.
We've got skin care
that's actually launching.
I wish you had all that.
But, you know, to Daymond's
point, what, at 2.5%,
what, am I going
to ask for 3.1%?
And we'll negotiate
a 2.7%, 2.9%?
I can't get there at the 2.5%.
I wish you all the best.
I mean, honestly, two of
the most impressive people
I've ever seen on that carpet.
Congratulations. Thank you.
I'm out. Thank you.
Thank you. So
I'll tell you guys.
And I know one of the
things that's important
and one of the things that
we teach our son, Kade,
right, is the word
"can't," right?
"Can't" is not in
your vocabulary.
And I understand
and I understand where
you guys come from.
We came here not
to just be here, right,
but to find and
leverage your expertise
to really help us grow.
Is there any flexibility?
You know, we're open
to if it's a line of credit.
Is there any debt vehicle
that people might
want to be interested in?
Because we'd love to
partner, because, again,
we're still growing
for the future
and we have a lot of runway.
Did I hear the word "royalty"?
John: Actually, no, I
don't think he said it.
Greiner: No, you didn't.
I thought I heard it.
I thought I heard
"royalty." Herjavec: Yeah.
I don't think he said
"royalty" at all, actually.
I don't know where
that came from.
[ Laughs ] Royalty.
O'Leary: It says "Young King."
A king is royalty.
That's what it is.
Young King... royalty.
King is royalty, yes.
[ Laughter ]
You know, what I like
about this, it has sales.
Yeah. A lot of sales.
And when there are sales,
sometimes my hair
starts to grow back...
Tell me the secret.
'cause it can support a royalty,
my favorite structure,
as you know.
You have the margins.
I would give you the $225,000
for a dollar a SKU until
I get back the $225,000,
and then it drops to
Cuban: That's enormous. Herjavec: Kevin,
what you're saying is, this is forever.
Forever. So when
Kade has kids...
Correct... his kids
will be paying a royalty.
O'Leary: Well, Robert,
I don't have any equity.
So why would I do
it any other way?
Kade is sounding like he's gonna
be working for Mr. Wonderful,
which I'm not sure
Kade's signing up for that.
He's only 4.
I'm the only Shark
that believes in you.
[ Laughs ]
I just don't know that
that makes sense for us.
I love you guys.
I love you guys.
Alright. I know you're
not gonna do that deal.
I'll give you an
offer. Both: Okay.
I think royalties are tough
because someone's gonna buy you.
Yeah. But I'll
do it for 50 cents
until I get a 2X return
on the money I give you.
So I'm gonna give you $225,000.
When you pay me back $450,000,
the royalty stops. $450,000.
I want a 5% equity that
converts if the company gets sold.
So I help you now. [
Whispering indistinctly ]
And if you grow, I
convert to 5% at that value.
O'Leary: You know what? That's gonna
be much more expensive than my royalty.
If you sell this business one day
Yes, it's much more expensive
if you succeed. If you sell this
business one day for $500 million,
you paid way more to him.
You know what? If you sell
the business for $500 million,
you don't care.
That's the key.
I like that deal.
He is driving you into the
ground. I approve that, Robert.
O'Leary: That's a huge mistake.
This is the balance
between equity and royalties.
So what do you guys want to do?
It's a great lesson.
[ Whispering indistinctly ]
You know, Stefan,
I can't read lips.
Yeah. So you don't
have to do that.
Sorry. I think
first and foremost,
like, both Mr. Wonderful
and Robert,
like, I appreciate y'all.
Our issue is cash flow,
and because we're spending
so much in other places,
so royalty is a little difficult
for us for both of you guys.
So respectfully, I don't
think that we're gonna be able
to take a royalty offer. Good for
you. Way to stick to your g*ns.
- Appreciate it.
- Good for you guys.
But we thank you
guys. Thank you guys.
Cuban: Congratulations,
guys. Thank you.
Alright. Take care. Thank you.
Stefan: We built this from
the beginning from just us,
and we built it
for our son, Kade.
And I think that's the
thing that we think about.
We're doing everything for him.
So, you know, we'll
be back, hopefully.
We'll be back, and
then, you know,
you'll see and hear
Young King for a while.
You'll still hear Young King.
What you did there was
sneak in a 5% of the exit price...
Oh, no... which may
ultimately cost them way more
than 50 cents a bottle. You are
sucking so much cash out of them.
I can't believe the savagery,
the greed you exposed them to.
I can't believe it. I'm shocked.
Narrator: In Season 12,
we watched Michelle
Jimenez-Meggiato
and Andrea Meggiato
make a deal with Lori Greiner
for their gourmet snack,
The Pizza Cupcake.
This is delicious.
Cuban: It's really good.
You got a deal. Yes!
Narrator: Let's see
what they're up to now.
Michelle: When the
pandemic hit in New York City,
everything shut down,
and it brought our business
down to zero dollars in revenue.
But then we got the call
to go on "Shark t*nk,"
which really saved our business
and gave us the opportunity
to share The Pizza
Cupcake with the world.
Prior to "Shark t*nk," our
sales were around $300,000.
Andrea: And now,
We've generated
$3.2 million in sales.
The Pizza Cupcake is now
available in Whole Foods,
Wegmans, FreshDirect, and
many other national retail chains.
And now we expanded
to five fulfillment centers
that can allow The Pizza
Cupcake to be shipped nationwide.
Michelle: Your appearance
on "The Ellen Show"
generated $100,000 in revenue.
Greiner: Pizza Cupcake
is the dream product
for an entrepreneur
and investor,
and Michelle and Andrea
are the dream partners.
We're going into major
grocery retail chains,
and we just did a couple
of major TV appearances.
I really believe that
this is just the start
of when we get these
nationwide in every grocery store.
So all I would say is
keep being who you are,
and let's hit that
goal together.
Yes. [ Laughs ]
Michelle: As an entrepreneur,
you will be tested
over and over again,
and it is your
resilience, integrity,
and your great relationships
that will be the thing
that will continue
to push you forward.
Our advice to entrepreneurs is
to find something that you love,
do it with the person you love,
and you will be unstoppable.
♪♪
Narrator: Next up is a solution
for one of a dog's
biggest anxieties.
♪♪
Hi, Sharks. My
name is Kirsten Brand.
And this is Emma Brand.
And we're here seeking
an investment of $150,000
for 10% of our company, Pawnix.
Now, Sharks, we
love to celebrate.
We love weddings, sporting
events, New Year's Eve,
and in America, we especially
love the Fourth of July.
And do you know how we
love to celebrate these events?
You guessed it with fireworks.
But you know who
doesn't love fireworks?
Emma. Herjavec: Aww.
They are not high on
her favorite things at all.
She, like millions of
dogs around the world,
is scared of thunderstorms
and fireworks.
So much so that in 2017,
during a fireworks celebration
in Petoskey, Michigan,
she blasted out of her
confines and ran away.
Ohh.
Luckily, I got her back.
But others aren't so lucky.
So I set out to find a solution.
And what I found is that
there's not one single solution
that all dog owners can rely on.
So we invented Pawnix,
noise-canceling
headphones for dogs.
Each pair of Pawnix
is made with active
and passive
noise-canceling technology.
[ Laughter ]
Oh, my God. That's so cute.
Our system protects
and counter-conditions
our fur babies
from the loud noises
that also have the potential
to damage their hearing.
Pawnix is a necessity
for dog owners,
especially ones that have dogs
that are scared of loud noises.
Emma and I have just begun,
and we've already
helped many dogs,
and we're looking
to help them all.
So, Sharks, who's
ready to join us
and help other dogs tune
out the loud, scary noises
that scare them the most?
O'Leary: So,
Kirsten, can I ask you,
when a dog is first
strapped into the Pawnix,
do they freak out?
Because I would
think they really cherish
their sense of hearing.
Some of them do. You're right.
Their sense of hearing is so
much more sensitive than ours.
So we always
encourage our pet parents
to do a lot of
treating beforehand
so that they get
accustomed to the headset
and they don't
associate the headset
with the actual loud noises.
And we can do a lot
of counter-conditioning.
How long did it take
you to get Emma
to let you strap
this on her head?
So Emma, being the muse
for it and the guinea pig,
she went through
a lot of iterations
of how this was gonna work
and how it was
gonna fit on her head.
And so you can see...
She's given up.
Kirsten, she's given up.
So I'm gonna let her be
a little more comfortable.
Whoo.
Does it play music or sound?
Yes. There's a whole chipset
with the active technology
that takes the sound and
converts it to a wavelength,
flips it 180 degrees,
and plays it back out
to then counteract the original
sound as it comes into your...
That's how all noise
canceling works, though, right?
Exactly, so we have
the state-of-the-art chip
that is the same as the humans',
and we scientifically,
in software, tailor it
to the loud noises that
scare them the most.
John: How tight do
you need to put it on
before they obviously try
to take it off by themselves?
Yeah, so we have
the four different sizes,
and we also will do custom fits
because not all dogs'
ears are in the same place.
So tell us what happens if
a dog is hearing fireworks,
really loud sounds.
Does it actually
really hurt them?
Yes, they hear more than we
do, and they hear it further away,
so they're alerting
us most of the time.
But what also is going
on is that they're having
a stressful reaction.
And just like us,
they're releasing cortisol
into their system,
which then over time
also intensifies the noise.
So then it's a vicious cycle
where they've
conditioned themself
that since the noise is loud,
then they're more scared.
Tell us about you.
What's your background?
So I was in the pet
industry at Mars Petcare,
doing research and development
for the last nine years,
so from a consumer
side... There you go.
I not only am a client...
So you have a ton of
experience in this. Yes.
What does it sell for?
What does it cost you?
It is $199 direct to consumer
on our e-commerce site...
Ohh... and landed, it's $108.
Oh, so you don't
have tons of margins.
Currently, I am buying all
minimum order quantities,
and I know we have a lot of room
to bring down all the costs
and increase the margins.
So why don't you
sell it for more?
I think $200 for doggy
headphones are expensive.
Yeah, but you got to be able
to afford it in the first place.
Yes. It's not cheap, no
matter how you look at it, right?
Yes, so we wanted to start
with a reasonable price point
and get a minimum
viable product out there.
How long have you been selling?
We're about a year in.
And how much have you
sold? $106,000 in sales.
Okay. Wow. That's not bad.
O'Leary: On your website,
do I actually get some video
of dogs that are now, you
know, accustomed like...
Is it Emma? Yeah, Emma.
I mean, Emma's
now used to that thing.
Emma hates it.
I guess the dr*gs
are wearing off.
Greiner: She's so cute.
[ Laughter ]
She wants to know
what's going on.
Cuban: "I'm free! I'm free!"
Oh, she's hurt?
John: What's wrong?
She's 15 years old, and with
that comes some ailments,
like a little arthritis,
but she's doing fine.
She looks good for
her age. Thank you.
She does and
absolutely adorable.
Well, I mean, the
credibility of it...
I know, like, they're
joking and all of that.
But technically, I know,
because there's other products
on the market that
are to calm dogs.
Yes. So I think that
there's credibility in this.
I just don't know...
The price point
is what sticks me
because people
might shy away from it
because it's just too costly.
Yes, so at $199,
we found that people
then see that it's credible.
So as an engineer, you know,
I wanted to throw the
kitchen sink at it, too,
which was gonna
make it very costly.
But this also gives us
a runway for a pipeline
to have a 2.0 and a 3.0.
Kirsten, I love animals.
I love dogs especially.
Emma is beautiful.
I think the padding
alone could work.
I think if you sold
this for $30 to $40,
it would open up your market.
I think at the price
point, the noise canceling,
you're a niche of a niche
of a niche of a market.
I don't see it. I'm out.
Okay.
Emma, I think your
background fits this perfectly,
and I think that this...
Honestly, this looks so cute on.
I could totally see this just
being passed on social media
just for how adorable it is.
But I don't know that you
need to have the electronics in it.
If your price point was
something like $29 dollars...
Yes... you'd sell thousands
and thousands of them.
And so for me, just because
where it's at right now,
I just have a different
vision for it, and I'm out.
That's okay. You may
come back in, though.
I think the trying to
explain this in an easy way
will be challenging from
a marketing standpoint.
I just don't think
it's for me. I'm out.
Okay. Fair enough.
Emma, I look for three
things in a product.
One, is it unique
and differentiated?
Yes. That it is, yes.
Two, can the entrepreneur
and founder sell it?
You can, but the third part is,
I have to be able to sell
it and be excited about it.
And it's just not
in my wheelhouse.
So for those
reasons, I'm out. Okay.
O'Leary: So when I actually
saw it and you came in here,
I thought, "Okay,
this is a joke.
It's funny." But you're serious.
Yes. And I believe
you as an engineer.
I get it.
I just don't need doggy
headphones in my portfolio now.
It's just not for me. I'm out.
Okay. But thank you.
Emma, we're gonna miss you.
Well, thank you, everyone.
Good luck.
You did good out there.
You tried to help me sell it.
Maybe it's not for everybody.
We're gonna take into
consideration all the feedback
and we're gonna come
back stronger than ever.
♪♪
Narrator: Next in the
t*nk is a business
based on an ancient treat.
♪♪
♪♪
Hi, Sharks. My
name is Diana Jarrar.
I'm originally from
Damascus, Syria,
and I'm here seeking $150,000
in exchange for 10%
equity in my company.
Growing up in the Middle
East, my beautiful homeland
had everything to
offer under the sun,
including a sweet
and indulgent treat.
All you had to do was
pick it from a palm tree.
Sharks, I'm talking
about the date fruit.
These sweet, resilient,
and wrinkly treats
nourished my body and spirit
with each and every single bite.
And that's how
Magic Dates was born.
We've taken divine
dates and blended them
with crunchy walnuts,
cacao nibs, coconut.
And get this... We covered
them in rich 100% dark chocolate.
And when it comes
to our satiating treats,
you can say no to added
sugars, no to dairy, no to gluten,
and yes to real
whole flavorful foods.
Sharks, I'm on a mission
to bring my homeland's
ancient secret
ingredient to the world.
So will you join me on a
magic journey with Magic Dates?
In front of you
are delicious treats
to try for yourselves
and nourish your bodies.
Or as we say back home, sahtain.
Herjavec: Which
is the most popular?
So the Triple Chocolate Crunch.
That's the one I
went right for first.
Oh, of course you did. The
chocolate on chocolate on chocolate.
The coconut's good.
Oh, wow. The Lush
Lemon one is fantastic.
That's one of my favorites.
I like the Triple Chocolate.
Diana, how many calories?
So in our original line that's
not covered in chocolate,
per serving, that's two
bites, is 100 calories,
and the chocolate-covered
variety's 120 calories.
Is that a lot? That
sounds like a lot.
So here's the thing
nutrient density
is about a lot more
than just calories.
These are no added sugar,
and they're chock-full of fiber,
which we are a
fiber-deficient country.
And in just one
serving of Magic Dates,
you're getting 15% to 20%
of the daily recommended
value of fiber.
How did you get
into this business?
I have a bit of a path, but I'll
start at the end for you, Mark,
because point of
inspiration for me
was actually one of
your entrepreneurs.
So several years ago,
before I started Magic Dates,
I had taken my LSAT, I
was on my way to law school,
and a friend of
mine approached me
to help him help an entrepreneur
come up with a vegan recipe
for her paleo ice cream
sandwich company.
Frankie? Frankie.
Yeah, and, Diana, just real
quick so everybody knows.
Yeah. Frankie came on two
seasons ago with Coconut Girl,
which were these amazing
ice cream sandwiches
that were healthy for you.
And so she's doing great.
We just sold part of the
company, she's doing so well.
That's incredible.
So I met Frankie. I
went to her kitchen.
I told my friend, "You have
me for a couple of months.
I'm applying to law school.
I'm gonna study international
human rights law,"
and I just fell
in love with this.
It was like a whole new world had
opened up to me. Mm-hmm, mm-hmm.
And, you know, going
back a little bit further,
when I moved on my
own to L. A. when I was 19,
food became a connector for me.
I learned how to make all my
mom's best Arabic food recipes
and I would invite friends over,
and that's how I would
connect with them.
And that's my intention
with Magic Dates.
And really, dates
are the perfect vehicle
because, as you may know,
they have a history
in the Middle East
of thousands of
years of cultivation,
and they came here
just a hundred years ago.
An agriculture explorer
brought 11 sh**t from Morocco,
and they thrived
in Coachella Valley
'cause it was so hot and dry.
And that's why we
have 95% of the crop
being grown here
in California. Really?
You learn something new
on "Shark t*nk" every day.
Give us an idea of what's
going on in distribution,
sales, margins, et cetera.
Yeah, so it was a
completely grassroots effort.
I launched at the farmers
market, and in 2018,
I got into the first
And what were sales in 2018?
So in 2018, $30,000.
And then in 2019,
we did $100,000.
And then 2020, we did $136,000.
- Yeah.
- Ooh.
So that was up 30%.
Is this all retail
at this point?
This is all retail.
There's nothing
direct to consumer?
We did very little
direct to consumer
'cause I was just not
focusing my resources.
And, Diana, this year,
what are you tracking at?
This year, we're projecting
to close at $175,000.
- That's interesting.
- Diana, what do these cost?
You never told us what they
sell for and what they cost.
Yeah, so the cost out
of the manufacturer,
out the door landed is $1.60.
And they're retail
between $4.99 and $5.99.
Oh, your margins are great.
Yeah, we have 42%
to 48% margins. Right.
And we are focusing more
on direct to consumer now.
And what I'd like
to share with you...
I think this would
be a good time
to reveal a bit of a secret.
What are you holding back?
We have been marketing
under a different look.
- Would you like to see it?
- Sure.
Sorry, these are the old?
No, these are the new. Okay.
These are the Glengarry bags.
I'm gonna show you the old now.
Ah! Greiner: Alright,
let's see the old.
Thank you. Mark.
- Thank you.
- Thank you.
I realized that with our
old branding and packaging
and messaging, we weren't
quite hitting the values.
O'Leary: So you
upgraded your packaging.
Is it proven to give
you better sell-through?
You're literally
the first people
to be holding it in your hands.
I actually like this
packaging better.
You see what it is. It's light.
And "Magic Dates"
pops really well.
Cuban: I agree with Lori.
I like the old packaging
better for the same reasons.
Okay. But when you
change packaging,
it's never an indication that
sales are booming, right?
It's an indication like, "Okay,
they're not where
we want them to be.
Let's try to do something."
Yeah. Right?
And so while I think
it's a good product,
there is just not that one
thing that's in the headline
that just says, "I
have to try these."
So for those reasons, I'm out.
Okay, thank you, Mark. But
good luck, and congratulations.
I appreciate it.
Thank you so much.
Herjavec: Yeah, Diana,
you're definitely on trend.
But as an investor, I don't
see the growth or the early hit.
I don't see the
catalyst right now.
I'm out.
Dates are really not my space.
It's just not something
for me at the moment.
I'm out. Thank you,
Daymond. Appreciate it.
You know, Diana, you gave up
international human rights law.
That is something so
needed and so important,
and in this arena,
there's tons of date-like
products and treats.
Mm-hmm. I've seen lots of them.
If it were me, I would say,
I think the other career path
is something that is
really just so important
and something
you'd be so great at.
Lori Greiner is saying to
walk away from your business?
To take it out behind the barn?
Honestly, I honestly am
saying, go with your passions,
do what you want.
But I feel, because this
is such a crowded space,
I'm sorry, I'm out.
Thank you, Lori. I really
respect your feedback.
O'Leary: Diana, it's very
impressive. Your passion is clear.
Obviously, I have a similar
background, being half Lebanese,
so I'm very familiar
with the region,
and you're very impressive.
I'm sorry, but I'm
underwhelmed with the sales.
You know, I was actually
sitting on the fence
trying to figure this one out.
We've been at Whole Foods
for almost over a year now,
and it moves really well there.
I've re-shifted focus this year.
So instead of going out
to get more retail accounts,
I wanted to approach the digital marketing and
e-commerce space. Cuban: Smart. That's smart.
I get it, but this is
such a tough slog.
I mean, I love your
story. I eat dates.
I understand the
merits of them. I get it.
Yeah. I'm just having
a real hard time with it.
You know, I'm gonna
make you an offer
commensurate with the risk.
$150,000 for 33 1/3%.
I'll take a third of
the business. Yeah.
- That's actually not horrible.
- That's not a bad offer.
I don't want to give up
a third of my company.
I came in here like, "Don't
give up a third of your company."
'Cause the thing is, I have to
also value what I know I can do.
And I know that that's not
something you may see yet.
I do. I'm sorry.
It has to be, you know...
At the end of the
day, I got to go to work.
This is a brutally
competitive space.
Dates are a commodity.
Yeah. It's tough.
It's really tough.
Well, it's a commodity,
but there are new
ways to represent them.
Nobody has covered dates in 100%
dark chocolate. John: You have an offer.
You have an offer.
Would you do $150,000 for 20%?
No.
Would you meet me
at all in the middle? No.
You're completely firm on 33%?
[ Laughter ]
Oh, that's really tough.
I really cannot give up
that much of my company
because, again, I believe in what I'm bringing
to. Sure you can. You can just say yes.
You really have to
think this through.
You don't have a great
story on revenue, okay?
I'm sorry. I'm
telling you the truth.
I agree. I agree.
I can see that.
And so, you know,
this is a flier for me,
and I'm willing to help you out
and I'm willing
to get behind it.
I do not put my name
on deals to fail, okay?
I don't do that, and I'm
not going to be flexible
in terms of what I want.
I want 33 1/3%.
You're gonna help us
blow it up, Mr. Wonderful?
No, I'm gonna help you
fail after I give you $150,000.
Of course I'm gonna
do that. Okay. Okay.
Okay. Yes?
Yeah, let's friggin'
do it. You have a deal.
Yeah! Good job,
Diana. Well done.
Oh, my God!
Don't make me regret this.
Okay. Can we hug?
"Don't make me
regret this," he says.
Thank you. Cuban:
Congratulations, Diana.
Thank you. I
appreciate it. Let's do it.
You got it. Great move.
Thank you so much, all,
for your feedback and time.
I appreciate you. Take care.
- Good luck.
- Bye. Thank you.
- Good luck.
- Bye.
John: Congratulations.
Jarrar: Oh,
Mr. Wonderful is incredible.
I think 70% of something big
is better than 100% of
something really, really small.
And I want to work
with Mr. Wonderful.
He was my number-two
choice. [ Laughs ]
But he's my number-one
now. Don't show him this.
[ Laughs ]
♪♪
Narrator: Next up is a brand
that merges art and sports.
♪♪
Hi, Sharks. My name
is Jasmine Maietta,
founder and CEO of round21.
I'm seeking $250,000
for 3% of the business.
Wow. Whoa.
Sharks, sports is a
universal language.
It communicates
emotions and beliefs,
style and creativity.
Athletes now use their
voices as a platform
for what they believe,
putting an end to the idea
that they should
just shut up and play.
This is why I created round21.
We partner with an awesome
group of creators, athletes, artists,
and tastemakers to
unlock sport as a canvas.
We extend and promote creativity
through digital
sporting goods, as well,
through viral NFT collaborations
that extend their digital
engagement, the digi,
with our physical
sporting goods, the fizzy,
a business model
we call digi-fizzy.
[ Laughter ]
We've launched
across four sports,
have a pipeline of artists,
athletes, and tastemakers,
and a growing community
aligned to our mission
of making standing out
the new standard in sports.
So, Sharks, we think
it's time you feel free
to play with the art.
We've handpicked
products for each of you.
Robert, we gave
you a soccer ball
that will continue to promote
creativity on the pitch. Thank you.
Lori, a ping-pong paddle,
YOLO... you only live once...
What you inspire in
every entrepreneur
who's chasing their dreams.
Mr. Wonderful, a football
anyone chasing greatness would
appreciate. O'Leary: Beautiful.
Daymond, a sports
product that is symbolizing
how sport is also a
platform for social justice.
And, Mark, for you, we have
a performance basketball
that symbolizes five
players on the court
coming together for
a greater good. Cool.
But in addition, we also
have a digital NFT basketball
inspired by your
unique background
through color and symbolism
that acts as membership
to round21. Cool. Nice.
And NFT, so everybody knows,
NFT stands for non-fungible token.
It's a completely
unique digital file.
It can be bought and
sold like any collectible.
It effectively is a digital
version of a piece of art.
That's cool. Yeah.
So round21's NFTs act as
two things for our community.
It acts as your social brand,
and it acts as
membership to round21.
And what that gives you is
access to early product drops...
Okay. Got it... physical
events that we're launching.
Jasmine, are you selling
NFTs today? We are.
Are you selling
physical product?
Both. Got it.
Can you walk me
through a typical sale?
And maybe put
from the perspective
of an actual athlete.
Yeah. Perfect.
Let's say Mr. Wonderful
is a rock-star athlete,
which I am. Obviously.
I come to you, Jasmine.
I say, "Okay, I want
to make a statement
about entrepreneurship."
I'm an athlete.
I got a million followers.
What happens?
We bring in artists
from the outside.
How do you split the
revenue between you,
the artist, and the athlete?
This basketball, as an
example, is $15 to make... Okay.
And we sell it
for $59.99 retail.
The artist gets two options.
They either get
a flat fee up front
or they get 10% share in
revenue of every unit sold.
And so can you walk us through your overall
revenue? Greiner: That's a good deal.
How much have you sold
in physical goods and NFTs?
Yeah, so I've sold
which is 15 months
of physical goods.
Units or dollars?
Sorry, that's dollars. Okay.
And how much is NFTs
on top of the $354,000?
Right now, the NFTs are growing
into 20K of our total revenue.
That's above and
beyond the $354,000.
So it's small. It's very small.
Very small. Got it.
So tell us about you.
How did you come up
with this in the first place?
So I have to go
back to my roots.
I'm born and raised in
small-town Oklahoma
to parents from India,
where being different sometimes
meant you didn't belong,
and I found who I
was through basketball.
I played in high school,
I played overseas,
and then I coached
at the collegiate
and high school level.
I then transitioned to the
marketing side of sports,
which led me to
marketing leadership roles
at Reebok, Hasbro. Oh, wow.
Under Armour, I led
marketing for six years,
and most recently was vice
president of brand at Peloton. Really?
Wow.
What are your
sales year to date?
We're on track... our
run rate is $510,000.
How much are you
going to make on that?
We're currently, at
a gross profit level...
$73,000 in gross profit at the
product level. Gross profit or net profit?
We are not profitable
as a company.
So how much are you burning?
We're burning about
$10,000 a month right now.
How much money have you raised?
So I just closed a
round at $1.39 million.
I raised on a SAFE at
a 6.25% post-money...
What are the terms of your SAFE?
Okay. Standard Y
Combinator SAFE.
You know, I think you are
so impressive and so spot-on.
As far as an investment for me,
I think that some
of my fellow Sharks
might be a better
partner for you
because they know more
about sports than I do.
For those reasons,
I think I will go out,
because I think you'll have
even someone stronger
to help support you.
Ohh!
Jasmine, I have a huge amount
of respect for your background.
Thank you. Really,
really impressive.
And what a unique
business model.
Is it gonna work? I don't know.
But the road to revenue
is not clear for me.
Before you go out,
before you go out,
I want to talk about our
strategic partnerships
at the wholesale
level for volume.
Yeah, Jasmine, I'm
not your guy for this.
I'm sorry. I'm out.
Ohh!
Okay.
John: You're the real deal.
I think NFTs are gonna
be around forever.
Everybody's gonna own one.
But I'm trying to educate
myself still on them,
and at a buy-in
price of $250,000,
I would be giving
you that for tuition.
I wouldn't add any
value at this moment.
It's a little too early for
me to get a full grasp.
Daymond, we are betting on
the passion people have for sports.
The revenue is
rooted in physicals.
The NFT is upside.
It's in the physical?
This is sports fashion.
This is absolutely
self-expression.
But I think the NFT part
is the really attractive part,
but I don't know
enough about it.
So I'm out.
Jasmine, why aren't
your sales higher?
We actually are on our third PO
with the largest sporting
goods retailer in America.
They want to co-create product
with us in 2022 and beyond.
They also have an
open order for next year
that just came in this
morning of $100,000.
But see, but those numbers
aren't big enough to scale,
particularly with
your valuation.
Look, we do some of
this stuff with the Mavs.
I do a lot of stuff
with unlocking NFTs.
It'd be somewhat competitive.
And so for those
reasons, I'm out.
O'Leary: Okay, Jasmine.
Herjavec: The
sporty Shark is left.
I own the domain for
NFT. I own the URL.
I've built a business
around it with lots of partners.
We have reserved all
the S&P 500 companies,
and so that part fits
with what I'm doing
and have already
invested a lot in.
I'm trying to figure out
how to make that work
so that when you offer
any athlete an NFT profile,
it goes up on the website.
John: But if you own
all the 500 companies,
you didn't get all their
permission, are you a troll?
We've reserved it for them,
and they can decide to use it
or not. Herjavec: Definitely a troll.
You reserved it for them.
Cuban: Yeah, right? Definitely
a troll. There's no squatters.
But let me finish. Definitely
a domain name hack.
You are witnessing
a troll in real life.
O'Leary: Look, I
have those domains.
And my point is, I
don't steal it from them.
If they want to
work with us, great.
But I'm not gonna go to
work for you, Jasmine, for 3%,
because your
business is nascent,
it's early, it's start-up.
You're very impressive,
but I'm not doing it for 3%.
Okay. Okay, that's
just not enough
to get me out of bed
to go work for you.
Greiner: Give her an offer.
So I'm gonna make you an offer.
I'm gonna do $250,000 for 15%.
Cuban: You got
to say yes to that.
You should take
that deal. You got to.
You got to. I don't
have any flexibility,
but basically I'm giving you
a quarter of a million dollars
and then going to work for you.
What do you want to do?
♪♪
Narrator: Four Sharks are out.
Jasmine has an offer
on the table from Kevin
for her physical and digital
sports art company, round21.
I'm gonna do the
$250,000 for 15%.
Cuban: Oh, you
got to say yes to that.
You should take
that deal. You got to.
You got to.
First thing that happens
is we figure out a
strategy to blow you up.
I'm not saying
it's gonna be easy,
but that means I'm
working for you, Jasmine.
I'm working for you.
I wonder if I can
get a paycheck.
Can I get on payroll?
Like, every day, I'm gonna
get up and work for you.
That's why I need 15%. He works for minimum
wage, 'cause that's what he's worth.
The thing is, I come in
with physical supply chain...
I got all that.
Digital credibility.
Nothing proprietary
about that. Sorry.
I also have artist and
athlete relationships.
I have digital... You
also have an offer.
Jasmine, you can counter.
I am thinking about
what would be respectful.
Would you do $250,000 for...
share and... No.
You got to get me to 15%.
You can structure
it any way you want,
but I'm going to help
you build this business
in a very competitive space.
Would you consider
$250,000 for...
and 1% of every NFT...
Greiner: Ever
sold? ...ever sold.
Okay, so, Jasmine, you're
talking about a royalty deal,
and that resonates with
Mr. Wonderful, okay?
All of a sudden, I'm
loving you more now.
So I would do this deal, okay?
I'll do $250,000 for 11%
and 2% of every NFT sold.
At the 11%...
You should take that deal.
It is a down round for
my current investors.
I understand, and I
respect the investors,
but I'm Mr. Wonderful. You knew
that coming in, though, Jasmine.
You knew that coming in.
I know, I know.
Look, I respect your investors,
but I'm gonna bring something
they can't bring, okay?
They just can't.
I think the URL is
very valuable for you.
I think the infrastructure
that I have already
to build out this
NFT complex for you.
I literally... I know
you're struggling with it.
I would take the 11%
deal and the 2% NFTs.
I would do that if I
were you. I really would.
All your investors, they
get a discount, right,
to the next round.
Yes. Yeah. They do.
So if this prices
at a lower amount,
they actually get
more of the company.
- Right, so you lose.
- Right.
I know. They don't.
I know. Right?
You got to make a decision.
But I'm willing to do it at 10%.
I don't care how many
advisory shares are in that mix.
And I want 1.5% of the NFT.
Then you have a deal.
He went to 10%.
I did go to 10%.
I understand exactly your problem.
He went to 10%. He was at 11%.
I'm giving you more, okay?
♪♪
Y...
Let's do it.
- Yay!
- Yay.
Thank you very much,
Jasmine. I'm so glad you did it.
That was really funny.
Listen, it's still gonna be tough.
Thank you so much.
It's still gonna be tough.
I know, I know.
You know that, right?
But I have done a lot of work
to fuel what's gonna be
an incredible relationship.
Okay. Thank you so much.
You got it. Thank you.
Cuban: Congratulations,
Jasmine. Thank you, guys.
Thank you so much.
Greiner: Congrats.
Appreciate it. You are
going to do phenomenal.
Thank you.
Maietta: To have
Mr. Wonderful come through
is an incredible opportunity.
With his knowledge
of the crypto space,
it's gonna help us impact
so many more people
in such a bigger way.
♪♪
♪♪
13x17 - Episode 17
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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.