- These are the sharks--
- five powerful,
self-made investors
worth billions.
Tonight they will
make or break the dreams
of hopeful entrepreneurs.
♪♪♪
In the t*nk, the sharks
are ready to invest
using their own money,
but only for the right person
with the right idea.
You have no product,
you have no sales
and you don't know your cost,
but yet, we love you.
- It goes to prove that the brand
- starts with the person.
In these tough economic times,
the sharks are the last chance
for many entrepreneurs
to get the financial backing
they desperately need.
- Wanting to make money
- is what this is all about.
You're your own worst enemy.
These are shark-infested waters.
You have no business being here.
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 a real estate 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 to date.
And Robert herjavec,
a technology tycoon
who sold his Internet companies
for over $350 million.
If the sharks hear a good idea,
they'll fight each other
for a piece of it.
- I'm gonna make her a brand.
- I'm gonna make her a star.
I want the deal, Barbara.
Save your breath.
But first the entrepreneurs
must convince the sharks
to invest the full amount
they're asking for
or they'll walk away
with nothing.
No, I would really
- not want to give away
- more than 40% of my company.
- I'm having indigestion,
- but go on.
Then my offer is off the table.
I would spray you down
with water,
and every time you'd say
"I don't know,"
I'd hit you with
an electric cattle prod.
♪♪♪
♪ 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 Marian Cruz,
who believes every home cook
will want her product.
♪♪♪
Hi. my name is Marian Cruz.
My product is the turbobaster.
I'm seeking $35,000
for investment,
and I'm willing to give up
I first came with this concept
one Thanksgiving day
when I was cooking dinner
for my family.
I was using
a traditional bulb baster.
It was inefficient. It wasn't
even holding any of the fluids.
It splattered all over me.
- And I thought,
- "there's gotta be a better way."
So I developed the turbobaster.
- It's gonna replace
- the traditional bulb baster,
the basting brush.
It's also gonna replace
the injector marinade as well.
So I created the turbobaster.
Whoo!
The turbobaster is gonna be
battery-operated.
It's gonna siphon up the juices
more efficiently.
It's also come
with a silicone basting brush
so you could baste your foods
and vegetables more efficiently.
It's also gonna come
with an injector tip
to inject
your favorite marinades.
- That was amazing. It's like
- you're building a rocket.
I've been working on this
for five years,
and I think that anyone
that loves to cook will need
to have the turbobaster
in their kitchen.
I got a question.
Can you
also use the same syringe
to be a temperature Gauge
as well?
- Daymond, you've never been
- in your kitchen.
You don't even know where
the kitchen in your house is.
You could baste your hair
with mousse.
We could make a sale here, too.
How do you clean that?
- Well, it's gonna come apart
- for easy cleaning.
Can you demonstrate that here?
Well, this is
a nonworking prototype.
Oh, you don't have one yet.
- No.
- Oh, you haven't built it.
- No, because--
- you built a great video.
Could we have a look
at that, Marian?
Absolutely.
What's your estimated cost
on manufacturing these things?
- Okay, I'm thinking
- fashion kitchen colors, $19.99,
but stainless steel model,
$29.99.
- And what are you gonna
- make them for, do you think?
I have no idea. I haven't done
that part of the research.
Ooh.
Is there anything else
out there like this?
No.
But, Marian, prove to me
that there's a market.
Like, how do I know besides
your charming personality
telling me there's a market?
Right. because it does
more than one thing.
That's it?
Marian, in all seriousness,
don't you think it would have
been important to know
- what you think your estimated
- manufacturing costs are?
To know that, me,
as an investor who's gonna
give you the $35,000,
could figure out
if I'd ever get it back?
Why did you not
figure that out first?
Why didn't I? Because...
I'm a newbie,
quite honestly.
How many
of the traditional ones
are sold in the United States
right now?
You know, I have no idea.
To be honest with you,
I don't know, you know?
It's gotta be millions.
I mean, it's a big business.
Why are we helping her?
Think about this.
'Cause we love her.
I love her.
She's adorable.
I love her.
- But let me tell you something--
- if you were in one of
- my business school classes...
- You better stop - being mean to her.
- I would spray you down
- with water,
- and every time you'd say
- "I don't know,"
- I'd hit you
- with an electric cattle prod.
I mean,
you gotta know this stuff.
So, Marian,
you have no product,
you have a prototype,
you have no sales,
- you're not sure
- what you're gonna sell it for
and you don't know your costs,
but yet, we love you,
and we're enjoying
having you here.
You know...
It goes to prove that being nice
goes a long way.
It goes to prove that the brand
starts with the person.
Well said.
Absolutely.
We invest in the person.
But anybody else out here, you
would have been eaten alive.
Well, we're not finished yet.
- Marian,
- you're a nice enough person.
You're cute, you're bubbly,
but you don't know
any of your numbers.
You can't even tell me
if I could ever make a profit
on this baster.
For that reason, I'm out.
Marian...
I can't imagine investing
in a business
where I have no idea what it's
gonna cost you to produce it.
So for that reason, I'm out.
Marian, I've cut you way more
slack than anybody else,
but eventually,
I gotta know the numbers.
You have no numbers.
I'm out.
Three sharks are out,
and Marian only has
two more chances
to seal a deal.
That's a very good name--
turbobaster.
I like the functionality
of this product.
I do a lot of business on TV,
shopping channels, etcetera.
I believe there's a market
for this product. I like it.
I'd put up the $35,000.
My interest would be
in a licensing deal.
I will control the deal,
but I'll pay you a royalty then.
But, Marian, he's a shark,
as nice a guy as he's acting.
You better ask him
what the royalty is.
What is the royalty?
Want me to lend you
my electric cattle prod?
Listen, you have nothing.
Take his offer. This guy
is throwing you a lifeline.
Whatever the royalty is,
you take it and stop whining.
I'm gonna make you
a fair deal.
It would pay you 2% of sales,
I'll put up all the money,
I'll pay you a royalty,
- and you're gonna bring
- turbobaster to the marketplace,
which is what you've been trying
to do for the last five years.
So what do you think?
Do you like my offer?
I do.
Do we have a deal?
I want the turbobaster
out in the world.
I want it in every kitchen.
So run over and hug him
and take his offer.
Wait, wait, wait,
wait, wait, wait.
No, no, no, no, no. Hey.
Oh!
Hey.
What are you doing?
This is my deal.
I want--
what are we all up here for?
I want 51% of the company
for $40,000...
And 2% royalty off the top.
This way, you have a partner
who will build a bigger brand.
We will do more things
than the turbobaster.
More products
will roll out afterwards.
- As well as,
- I'm a manufacturer,
so I know how to work overseas
and get things tooled
and made more quickly.
- Look, daymond,
- I have to just say,
I've sold millions of kitchen
products over the years.
- I think you're pretty good
- at jeans, okay...
- But I don't know
- that--that Mr. daymond
has done kitchen products.
I really don't care
because I want the deal.
So you have two offers.
What are you gonna do,
baby?
With a 2% royalty
for 100% of her company,
while daymond
has offered $40,000
with 2% royalty
for a 51% stake in the company.
However, Kevin's experience
selling on TV
may be a deciding factor.
There's only one decision
you can make right now.
If this was a pair of jeans,
I'd go to daymond.
For kitchen product,
I'm your man.
I'm gonna raise it to $50,000.
Oh, dear lord.
For 51%.
Wow. that's huge.
What are you gonna do?
I just have to go where
my product is gonna do best.
This is the biggest thing
I've ever done
besides giving birth
to my kids.
♪♪♪
I can't take it anymore.
What are you gonna do?
I'm going with Kevin.
All right.
Is that a done deal?
- Fantastic.
- Nicely done. Good move.
Okay. you made the right
decision. thank you so much.
Thank you.
Okay. congratulations.
Thank you. Thank you.
Are you gonna sell these
on infomercials?
Yeah. I like the product.
It's gonna be great.
I just want
to give thanks to the sharks
for giving me this opportunity--
for showing my product
and for you to believe
in my product, the turbobaster.
♪♪♪
Next up is Bryan parks,
who believes his business
is doing its part
to save the world.
♪♪♪
My name is Bryan parks.
I live in Eugene, Oregon,
and I am an artist,
an environmentalist
and an entrepreneur.
Living in Eugene
really makes me stay true
to my goals of being
a really environmental company,
- because everybody here
- and everything is so green.
It's kind of known
as kind of a hippie place.
Hey, xiao gu.
I was living in China
six years ago,
and I became aware
of a valuable resource
that was going to waste.
Green products are hot. I have
a product that's 100% recycled.
An investment from the sharks
would be great for them
because I really feel
they could make money,
but I think it would also have
a really positive impact
on the environment.
♪♪♪
My name is Bryan parks. My
company is called chopstick art.
I'm asking for $100,000
for 10% of the company.
So you guys all know
what these are, I'm sure.
We pull them apart,
we eat a delicious Asian meal
and then we toss them out.
But what happens to them
after that?
- Well, about six years ago,
- I was living in China
- and one day a friend and I
- were eating lunch.
- Of course we were using
- chopsticks.
And we started to guess
the number of these things
- that are actually thrown out
- each year.
After some research,
- we found that the number
- was around 25 billion pairs.
of these things
were going straight
to the dump, and nobody was
- taking advantage of this free
- and valuable resource.
At the time, I thought that this
would be the perfect opportunity
to combine my passion
for the environment
- and feed
- my entrepreneurial spirit.
So I created chopstick art.
Da-dum.
Ta-da!
So here are a few
of the products
that I have designed so far,
- all made with
- recycled bamboo chopsticks.
And every one of those sticks
- has been in someone else's
- mouth, right?
- That's correct,
- but, of course, they're all
cleaned and sanitized,
and as far as I know,
nobody's gonna be licking their,
uh, lamps or their wine rack.
Um, my best-selling product
right now are these baskets.
They keep fruit really fresh,
uh, because of
good air circulation.
Bryan, tell us
what each of them sell for.
They would go for about $7,
$12, $22 and $30.
- So that thing's 30 bucks, that
- you're holding in your hand?
- Yeah. there's more.
- These baskets,
- they fold up flat, so--
- oh, that's cool.
- Isn't that cool?
- Yeah, that is cool.
- Hmm. very nice.
- So they're easy to store.
Bryan, can I see it?
Of course you can.
Here's one for you.
Bryan, what's
that thing at the end?
Oh, this is a necklace.
Do you wear it?
I do, sometimes. It didn't
go with my orange today.
Where--where have you sold to?
Since I started
five years ago,
I've done about
a half million in sales. Um...
Whoa.
It wasn't until I got
the folding baskets
that I really started
making a profit.
And then how much did you net?
Uh, about $45,000.
You must have put
a lot of your own cash,
'cause I'm just listening
to your numbers...
Of course I did.
Okay, so how much money
have you put in?
I put in about $100,000.
Of your own money?
Of my own money.
Where'd you get that money?
Uh, well, from my good friends
visa and amex.
You're asking for 10% of your
business if I give you $100,000.
That's right.
- So I multiply that times ten,
- and it tells me
you think your business
is worth $1 million.
I-I do. The amount of sales
I've--I'm doing right now--
I've said $300,000--
- that's with very little
- advertising and marketing.
Why would I, as an investor,
give you $100,000?
Like, how would I
ever get my money back?
Well, let's be straight here.
- You guys know it
- and I know it--
- you know, this isn't
- an investment
where you're gonna add millions
of dollars to your portfolio,
but this is a safe investment
that you can feel good about.
- Bryan, I look
- at a lot of products, okay?
This is not
a gotta-have type product.
This is "it's nice to have."
I'm out.
Bryan, you said it yourself.
This is not
a $100-million idea.
Right.
I-I think this is
a small business. I'm out.
The problem is, it only makes
$45,000 as a company.
So for that reason, I'm out.
I, um, I like the product,
but it's not big enough for me,
so I'm out.
Right.
You have no business being here.
These are shark-infested waters.
You would get somebody
as your partner here
and be miserable.
I'm out.
- Just not big enough, Bryan.
- But you did a good job.
Great job.
And, Bryan, c-can I h--can I
have the basket for my wife?
You can.
Thank you, Bryan.
Good luck making
billions of dollars
and catch you later.
Thanks.
He was a nice guy.
Nothing wrong with that.
Nice? he's beyond nice.
He's a sweetie pie. Whew.
I want you
to invite me over for dinner
when you give that basket
to your wife,
and I'm gonna tell her
where those sticks were.
Uh, I'm a little bummed out.
I-I thought they would see more
value in it than they did.
♪♪♪
Who believes
her homegrown business
has the potential
to make millions.
♪♪♪
My name is Lori lite, and I live
in marietta, Georgia.
My husband Rick and I
have three children,
and we are very proud of them.
Raising children
is really stressful,
- and my son made matters
- even worse
- because we couldn't put him
- to bed at night.
- The stress got so bad
- that my aunt forced me
to go to
stress management classes...
So that I could learn
relaxation techniques.
One night while I was
putting my son to sleep,
I used the same techniques
on my son.
My husband was
standing in the hallway
listening to the whole thing.
- When I came out of the room,
- he hugged me,
and he said,
"Lori, that was great.
You can help thousands
of children and parents."
- And basically,
- it inspired a whole business.
But what I do takes money--
up-front money--
and we're always going
from--from dollar to dollar,
hand to mouth, and we've
put everything on the line.
- I mean,
- my house is on the market.
Um, we're sharing one car now.
- I don't have
- anywhere else to go.
I know I have an effective
product, but I need help
- to get this out into
- every household in America.
- Parents need to know
- about my product,
- and the sharks
- can help me do that.
♪♪♪
Hi. I'm Lori lite,
and the name of my company
is stress free kids.
I'm asking you to invest
$250,000 in my company
in exchange for 20%.
I'm a hands-on mom
that has dealt
with real stress and anxiety
while raising my three children.
My son was hyperactive.
Every night, it took me
two hours to put him to bed.
Luckily for me,
I learned to do
stress management techniques
that had an immediate effect
on me.
I wondered,
what would it be like
if I could get my son
to do the same techniques?
I began to create a story
that entertained him,
but at the same time,
incorporated an actual
stress management technique.
To my amazement, my son followed
along and fell asleep.
Now I have a whole line
of books and cds
that help children
manage stress
while promoting
their self-esteem
and a more peaceful sleep.
Can you give me an example,
a quick paragraph
or something?
- 'Cause, you know, - sitting up here...
- I can.
With these people--
a lot of stress.
And, Lori, what
you're going to read to us,
did you write that yourself?
Yes. I not only wrote,
but I produced and I published.
Wow.
Okay, this is "angry octopus."
This is an example of using
progressive muscular relaxation.
"And the sea child continued.
"'Tighten the muscles
in your chest,
'your neck and your shoulders."
Come on, guys. Do it.
"'Tighten them as tight
as you can. Hold, hold, hold.'"
ahh!
Ahh!
"Now let the air
out of your mouth
"and feel all the tension
in your chest,
neck and shoulders
drift away."
It's very good.
Yeah, the words are very,
uh, very soothing.
Thank you.
How much have you made
in sales of this stuff?
Uh, well, last year
I moved 30,000 units and...
Wow.
Whoa.
- 30,000 units?
- Yes.
- Out of your home?
- Out of your kitchen?
Out of my kitchen.
So, Lori, on the 30,000 units
you sold last year...
Yes.
What was the total sales?
$180,000 in revenues.
On that $180,000, how much did
you make? How much was left--
$50,000 in profit.
Wow.
I'm curious about your husband.
Is he in on this with you?
What's his role?
Oh, yes. Well, you know,
basically,
I made him quit his job.
Whoa.
He helps with sales
and marketing and--
so the $50,000
that you made profit
- was between you
- and your husband both?
Well, yes. We're married
for 23 years. We--we share.
Is there real proof out there
that children are feeling
this kind of stress,
that there's a real market
for that?
There is.
I think it's 13 out of a hundred
children have anxiety disorders.
Why haven't you gone
to a children's book publisher
- and say, "look what I've done.
- I've sold 30,000 of these.
Give me a deal.
I'm a great author"?
Because honestly, my first two
books were with a publisher.
And then after that,
I decided that I wanted
to do my own publishing.
Why didn't it work
with the publisher?
- Why didn't it work
- the other way?
Um, well, you get paid
a very small percentage.
- But you sell a lot of books.
- No, I sell more books - by myself.
- Why didn't you sell
- a lot through the publisher?
What do you think
went wrong there?
Well, they don't promote you
unless you're a known name.
Lori, how much of your
personal money is in this?
$200,000.
All of the models
- of children's books
- and children's publishing,
the only way you make money
in that business
is you get massive distribution.
There are two giant retailers
that control
the physical distribution
and one online one.
And until you have
all three of those...
Amazon is--is my biggest.
Yes. borders?
Uh, borders, Barnes & noble.
Yes, I'm on or I'm in
all of those places.
You have all the distribution.
- But then why
- aren't the sales more?
- Well, more importantly, what are
- you gonna do with my money?
I mean, but this is--
I-I-i really can't believe
- that you are not appreciating - what I've done.
- I very much--
no, no, no, no, no.
We are appreciating it. It looks
like a pot of gold right now,
but there's something--
this is a pot of gold.
There is something missing.
- Where you're losing me is,
- you're in
every distribution channel
you could possibly be in.
Yes.
I give you $250,000...
Yes.
How do Amazon sales go up?
- Um, there are--there are things
- I could do on Amazon
to PR--to promote, advertising
opportunities that will promote.
But, Lori, you're making,
uh, about $50,000 a year.
Correct.
You know there's
a bad economy out there.
I know.
Based on your offer
of $250,000 for 20%,
you're saying your business
is worth over $1 million today.
Correct.
But it's only earning
$50,000.
Help me understand the gap.
Well, I was basing--I'm basing
that based on my revenues,
- you know, that I'm making.
- But your revenues are $180,000.
But I believe--you know,
some of this comes from belief.
You know?
What I was hoping
you were gonna say
was that the reason
you're not selling more
is 'cause you can't
fund inventory.
Okay.
I think, uh, your valuation
is so crazy out there.
So I'm out.
Well, just--
okay. that's fine.
I'll make it easy from my side.
I see ten products here.
I like to focus on one item that
I can sell a million pieces.
So I'm out.
Two sharks are out.
Lori only has three more
chances to get a deal.
I'll make you an offer.
$250,000 for 100%
of your company.
That's it.
No. no.
I'm out.
I think that you are a star.
Oh, thank you, daymond.
I needed a moment
of a compliment. Thank you.
I think that
that is a brand.
Thank you.
I will offer you...
$250,000...
For 51%
of your company.
I'm gonna offer you
the same deal, but just for 50%.
For 50 versus 51.
Now you know the difference
between 50% and 51% is...
Yes.
That we decide together
what we do.
- With daymond, he would make
- all the decisions.
He'd have the final call.
So you're saying you think
this business is worth--
but daymond will end up having
a clothing company out of it,
- a bedding company out of it,
- pots and pans.
We'll be cooking
on an "angry octopus" --
pots and pans?
Yeah,
"angry octopus" toasters.
- I'm gonna make her a brand.
- I'm gonna make her a star.
I want the deal, Barbara.
I gotta tell you,
these people are offering you--
ten times valuation
is a very, very good offer
that you should think about.
- And I also think--
- as a husband of 19 years--
you should call your husband
and ask him what he thinks.
- I would like to do that.
- All right. Make that call.
I'll be back.
♪♪♪
- You know,
- for a self-published author,
anything over 10,000 units
is incredible.
Whoa!
She made the cardinal mistake
of small business people.
She overvalued her business.
Obviously not. She's got
two offers on the table.
This business is not worth--
hi. I just was swimming
with the sharks.
Okay.
- They--they bit a little bit.
- Okay.
Barbara wants
And daymond wants
but he's selling his deal
as that he is going to brand us.
Yeah, I mean, as far
as giving up 51% of the company,
you're giving up control
of your company--
- that's--that's not
- what we're about.
Um, what about a counter, Rick?
I think you need to--to play,
um, you know, to play hardball.
Okay.
All right.
Don't forget. You know
how to deal with sharks.
I know. Love you.
All right. Love you.
Love you, too.
Bye.
♪♪♪
So what did hubby say?
Well, because we put so much
sweat and--and heart into this,
it's hard to give away.
So with that in mind,
um, you know,
I would really not want
to give away more than 40%
of my company
in exchange for $250,000,
and I think that's very fair.
I mean, these are my babies.
I mean...
I'm stunned.
- Well, I must be quite direct
- with you
and say that my offer
is off the table.
One from daymond
for 51% of the company
and one from Barbara
asking for 50% of the company.
But Lori's counter-offer
has jeopardized everything.
My offer is off the table,
because I would have to feel
- as though I had at least 50%
- of the control.
I like to watch my money,
not let somebody else decide
what they want to do with it.
But thank you.
Okay, I can understand that,
- and I'd like to keep that alive
- for a few minutes.
I would absolutely need 51%.
I think that I have a lot of
money sitting in front of you.
That is a quarter
of a million dollars.
I know.
And my offer
is off the table, then...
If I cannot get controlling.
Well, I have to be honest.
I lo--i love your idea
of--of the branding,
but I also think--but--
that Barbara has that ability
to do that with us as well.
And the 50% is more attractive
than the 51%.
And, um,
I think we can work together.
Is that a yes?
I accept your deal.
It's a crazy deal, but crazier
things have happened.
Not a crazy deal at all.
Not for a minute.
- Thank you.
- A pleasure.
- From one mom to another, - thank you.
- Of course. Thank you.
Thank you so much.
Congratulations.
- Barbara, my friend, you made
- a horrible mistake here.
Oh! we'll see.
You put your personal,
uh, charity and goodwill
ahead of
your investment acumen.
- It's not worth $500,000. - But I'm
rich enough - to take that luxury.
This lady will bring it in.
Trust me.
She's one of those types
that brings it in.
She's a star.
- I don't know what just happened
- in there. It was crazy.
- They said I was crazy,
- my numbers were crazy,
but all I can tell you is,
I got a deal.
I-I think I got a good deal.
Next up is Ken Bradford,
who believes he has a powerful
educational tool for kids.
♪♪♪
Ken Bradford here
for 50 state capitals
in 50 fun minutes.
It's a deck of flash cards
with a cd included.
Sharks, I'm asking you
for $155,000
for a 10% equity position
in my business.
So could I have your permission
to show you how the cards work
and how it will make
these types of cards we've been
using for 200 years obsolete?
Ready?
Let's go.
Shark school.
"Pencil-vania"
through a hairy burger
for Harrisburg.
Everybody got this?
You got this. Let's roll on.
"Ar-can saw."
Through the can, little rock.
Let's do another one.
California.
You'll get this. Cow with
his toes on a sack of mints.
Got it?
Oh! oh! Sacramento.
Sacramento. I've got
all 50 of these worked out.
Ken, have you--
have you sold this already?
I sold one.
I've--I've had this
for five weeks,
finished as a prototype.
You know, the business
isn't worth anything right now.
It's not worth anything yet
till it gets into,
let's call it, 30 schools.
Exactly.
But for that reason,
I don't see an opportunity
to make a lot of money.
I'm out.
Let me tell you, I believe kids
can learn this way.
I think
it's an adorable idea.
But I don't think it's anything
you're gonna get any money for,
so I'm out.
Ken, it's just
too much risk for me,
so I'm sorry, but I'm out.
I think you have a much better
career in being a designer.
I like that outfit...
Which is great,
but you have no sales.
It's not proven.
And I'd have to say
that I'm out.
Well, I have a couple of cards
for you.
Eye?
- I-I'm...
- I...
Out. I'm out.
Out.
All right, Ken,
thank you.
Appreciate it.
Thank you, all.
$155,000. wow.
♪♪♪
- I'm Jeff Cohen,
- and my son Josh and I have
the most unique musical product
to hit the market
in many, many years.
I love music. Josh loves music,
and he's a great musician.
Working with this company
- has been a terrific bonding
- opportunity for the two of us.
In fact, I-i really can thank
this company
for fostering just a--
just a fabulous
father/son relationship.
That's it.
I've invested a lot of time,
a lot of money
- and my personal reputation
- in this company.
And I'm afraid that
if I don't get this financing
in place quickly,
that all might be wasted.
♪♪♪
- Hi, I'm Jeff Cohen, c.E.O.
- Of voyage air guitar.
- I'm here with my son Josh.
- Hi.
And we're raising $500,000
in this round of financing
for 5% of the company.
Wow.
Oh! whoa!
Oh, excuse me.
I--something hit me there.
- Well,
- the product that we have
is an incredibly innovative
guitar.
- In fact, I think you could say
- it's the most innovative guitar
- in a century
- of guitar building.
Not only do these guitars
look incredible...
Whoo!
- They sound incredible.
- But that's not all they do.
- They don't just look good.
- They don't just sound good...
They fold in half.
They fold in half so that
you never have to travel again
without your guitar.
What makes this work
is this patented hinge.
And not only
is the hinge patented,
- when we built this guitar,
- we had to totally change
the way a guitar has been made
for hundreds of years.
Now the guitar is designed
to fit neatly in a backpack,
- to fit safely in the overhead
- compartment on an airline.
- It's designed
- so you could throw
- a half a dozen of 'em
- in the trunk of your car.
- You could ride your bike
- with it.
- You could take a walk with it.
- Easily fits on your back.
- You always have your guitar
- with you.
- Bring that over here.
- I want to do it.
- I want to see
- if it stays in tune
or I have to retune the whole
thing every time I do that.
'Cause to me,
that would be a big hassle.
So grab the neck.
Yeah.
There you go.
And take the body--
- yeah. - Take the body. Put it under
- your armpit as so.
Yeah.
Just push and twist.
Oh, I like
that little snap thing.
Yeah. and, uh...
Okay. it was in tune, so let's
see if it's in tune right now.
'Cause I bet
it's not gonna be in tune.
For how much?
♪♪♪
Sounds the same.
Okay, I will admit,
this thing stayed in tune.
I'd buy it.
Jeff, is it patented?
Do you own the patent
to the neck hinge thing?
Yes.
Yes.
Do you have sales?
- We launched
- in january/february.
- We've sold about--
- well, we've sold
all the units we've built,
about 800 units.
Right now we're generating
a relatively small amount
- of revenue because we're not
- building them fast enough.
- What we want
- additional capital for
is to build out the inventory.
What did the 800 units create
in revenue?
wholesale price is only $500.
That's about $400,000.
So you have sales of $400,000?
How much of that
was profitable?
Oh, we're--we're
cash flow negative.
So, Jeff, if you're asking
for half a million dollars...
Mm-hmm.
For 5% of your business...
Correct.
Which makes the overall business
worth $10 million.
Yes. yes.
And you've only sold
$400,000 worth of guitars.
Right.
Do you see any
problem with that?
I-I see no problem with that.
I think--
I see greed. I see greed.
Well, this is a product
that has a 50% gross margin.
There are
- just in the United States
- every year,
and there is absolutely
no reason why anybody
that buys a guitar today
wouldn't want the flexibility
to be able to fold it in half
and take it with them.
Let me ask
- a really simple question
- before you go any further.
I know I look like a hip
rock star--i realize that--
but I actually don't play
the guitar.
If the hinge is unique
and patented...
Mm-hmm. yep.
There are lots of people
that make guitars already.
Right.
Why not license
the hinge idea to them,
sit at home,
collect the royalty,
- which means
- they just send you the money
- every time they sell one--
- well--
why aren't you doing that?
It--it's easier to get them
to come to the table
if I've demonstrated market
acceptance of this product.
Once I've demonstrated--
we have to build
a whole guitar company--
I've already done it.
I've already done it.
- I have - complete manufacturing--
- but you haven't sold any yet.
I have--we just launched.
Jeff, you confuse me
a little bit.
Okay.
'Cause I'm not clear.
I mean, answer this for me.
Okay.
Do you want to make
a great guitar
- or do you want to make
- a lot of money?
Well, I want to make
a lot of money...
No, no, no, no.
Building a great guitar.
I don't want to make
a great guitar.
- I just want to make
- a lot of money.
- And I think you have
- a great product.
I think we can license it.
What will you sell me
the rights to that patent for?
I would be interested in...
Okay.
For $1 million.
Do you say a million?
Yes.
A million.
Jeff has offered the sharks
for $1 million.
Jeff, you're looking
for $1 million now.
I'm having indigestion,
but go on.
- Nobody knows
- they can't do without this.
- I'll make you an offer. - Here's how it works.
- Okay.
In the context
of the guitar industry,
you're a nothing-burger still.
I'll give you $500,000
for 51% of the company
that owns this patent.
- So--so answer the question
- for me.
Why do I need you
to license the guitar?
I have tremendous experience
in the license space.
You wish I was your partner.
So you said you have tremendous
experience doing license deals.
Just hit me with one as--
I mean, for--
my whole company that sold for
$3.2 billion was all licenses.
Did--did you say $3.2
with a "b"?
Yes, I did.
♪♪♪
I won't give up 51%.
Okay.
Why? you're your own
worst enemy.
I'm not gonna give up control.
That's the problem.
Jeff, I'm out, then.
If you're not willing to give up
the 51%, I'm out.
I'm gonna
defend you against you.
That's why I want 51%.
That's why it's so important.
You understand why that matters?
You have a different vision.
You need a partner that only has
one direction--creating wealth.
Kevin, is your--your offer
is $500,000...
For 51%.
I would go $250,000 for that
to bring the TV to the table
on this--this offer.
Then be my partner in the deal.
But it's a 51%--
- how would that--can you tell me,
- through your infomercials,
how many units--how--
what--what could you push?
You could sell
hundreds of thousands.
He has the power of television.
- That's one of the partners - you get.
- ...portfolio.
You guys are in the--you're
going in the wrong direction.
It's so obvious,
Mr. guitar guy
and son who hasn't said
anything yet.
Do you speak?
I do speak.
All right, if I--I'd
be more interested if we--
if he were back in.
He's history. He's gone.
Barbara?
I think there's a fly
in the ointment.
I don't think it's so easy
to create change
with a big manufacturer,
and when you start
selling them on that hinge,
I bet there's gonna be
some other little nuance that
gets in the way of the deal.
- So I'm too nervous to be in,
- so I'm out.
Jeff, it doesn't seem like
you know what you want.
I'm out.
Three sharks are out,
and there is one offer left
on the table.
Yes or no?
I would accept
a deal, 50/50...
And then--and we're done.
That's not the deal
on the table.
Yes or no?
I don't accept the deal
that's on the table.
I'm stunned of your greed,
your absolute greed.
You just said that greed--
wanting to make money
is what this is all about.
You had an opportunity to make
money, and you passed on it.
That's not all this is about.
You're a tragedy.
You're a human tragedy.
You've given me
a lot to think about.
- You're brilliant
- business people.
I'm gonna have to decline, but I
hope we have an opportunity
to work together down the road
on this project or on others.
There is no tomorrow.
You're dead to me when you
say no to my deal. You're dead.
You're gone. I don't even know
who you are. You're a vapor.
Jeff, thanks. I'll send you
an invoice for my time.
Unbelievable. unbelievable.
I told you so.
That was painful. Painful.
Unbelievable.
That guy had a real sh*t
at making money and said no.
This could be $100 million
on TV. $100 million.
That was painful.
That is a human tragedy,
and he's teaching his son that.
It's a crime.
He should be arrested.
They were very smart to ask
for the deal they did.
And hopefully, I was
just as smart to say no.
Of course you were.
- Time will tell.
- Ask me 12 months from now
- whether or not it was
- the right decision.
Next week on "shark t*nk"...
What if I gave you $450,000?
No.
$500,000?
Take the money,
you crazy chickens.
This deal that you're
offering me is a shark deal.
Oh, really?
Guess what.
- I didn't want to get orders
- and promise delivery
- until I had the capital
- to get 'em done.
- What you just said - was un-American!
- On that note, I'm out.
- But--but--but--but--but wait.
- The next guy's - gonna walk in here
- and get my money,
- and he'll get rich, but not you.
- You are dead to me
- if you turn around.
Oh, my.
01x03 - Episode 103
Watch/Buy Amazon Merchandise
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.