12x03 - Episode 3

[bunniefuu]

Narrator: Tonight on
"Shark t*nk"...

We created the world's
simplest back pain relief.

Guys, this is extraordinary on
"Shark t*nk."

I'm an advanced sleeper.
[ Laughs ]

There we go.

[ Laughter ] Get a lawyer.

I'm bleeding, people!

We're your worst nightmare.

Tell us about your total sales.
We've done $12 million in sales.



$16. Oh, no.

Your pitch just went
downhill like -- crash! Ouch.

John: You're doing
those kind of numbers --

are you really here
to make a deal?

You guys are grinders,
but I'm afraid for it.

It is the first time in 12 years I made a
royalty deal. You have learned, grasshopper.

Slap my mama and call me "Sally"! You go,
Sally!

♪♪

Narrator: First into the t*nk is a
product to comfort and relieve stress.

♪♪

Hey, Sharks, my name is Matt
Mundt. And I'm Angie Kupper.

And we are... Both: Hug Sleep!

[ Chuckles ] Aww.

We're a husband-and-wife
team from Milwaukee, Wisconsin,

and today we are
seeking $150,000

in exchange for


Sharks,
like so many people out there,

we've got a real problem
in the bedroom. Hmm?

Between his sleepwalking
and my restless legs,

there's a whole lot of
action and not enough sleep.

So that's why we
invented... Both: Sleep Pod!

A first-of-its-kind
sleep solution

designed to simulate the feeling
of being hugged or cuddled.

Sleep Pod uses a specialized


that wraps around
your entire body.

Oh, wow. As its fabric stretches,
it wants to compress,

providing a gentle,
calming pressure,

helping you to
relax and fall asleep.

Now, I know what you're thinking,
and you're right --

it's essentially an adult
swaddle. [ Chuckles ]

But Sleep Pod is so
much more than that.

It's made from a breathable
material that doesn't trap heat.

It's lightweight,
so it's easy to travel with.

And best of all,
it's machine-washable.

And my favorite part is
your significant other...

[ Chuckles ] ...can't
steal your covers.

But in all seriousness, Sharks,

we spend 1/3 of
our life sleeping,

yet so many of us struggle
to get a good night's rest.

With Hug Sleep, we can bring some
magic back into the bedroom [ Chuckles ]

and get people sleeping
like babies again.

So, Sharks,
who want to jump in bed with us?

So, I know 2020 has been
a little bit of a stressful year,

to say the least,
and it looks like all of you guys

could really use a
good hug right now.

We'd ask Robert and we'd
love to have you come up here

and test out Sleep
Hug. To hug you?

No, no,
no! To try Sleep Hug! Oh! There you go!

Unless you really want a hug.

Alright, go ahead and have
a seat on the side of the bed.

You're gonna put it on just
like you would a pair of pants.

So put both legs.

Both? Both legs. Yep.

And you're gonna
stay seated for this...

Okay... but go ahead
and scooch back

and swing your legs
over onto the bed.

Go ahead and get comfortable.

You wanna pull it up to your chest.
You may wanna go back on the -- Yeah.

Oh. Pull it. Yeah, you can scooch your
butt back. Cuban: Just stand up. Pull it.

Now, Robert,
start hopping. So it fits pretty snug?

It is. Yes.

We don't advise to do that. Yes,
'cause we don't want you to fall.

Oh, it feels great! And now,

put your arms your arms in it,
right? Put my arms in?

So you actually want to
lay down before you do that,

'cause I would
hate to see you fall.

I'm an advanced
sleeper. [ Laughs ]

There you go.

So now, yeah,
you can lay down. Greiner: Wow.

[ Laughter ]

It's actually really soothing.

Why is there a pocket?

Kupper: Yeah. So we're
going to tell you about that.

That's the newest addition.

A lot of people like to sleep

with one foot out for
temperature regulation. Mm-hmm.

Ohhh. So that is a pocket so you can,
if you want.

But if you choose not to --

Oh, see?

[ Laughter ]

You okay, Robert?

[ Whimpering ] I'm okay. That
definitely doesn't normally happen.

Ohh! [ Laughter ]

See what we have to deal with?

Oh,
my God! I'm bleeding! [ Sighs ] Hey.

Greiner: [ Laughing ] Oh,
my God! Cuban: Robert is bleeding.

Robert,
are you okay? I hate you!

[ Chuckles ] Kupper: Oh, no!

[ Laughing ] Oh. You're doing
everything we advise against, so...

Okay,
let's talk about acceptance in the market.

Robert,
are we gonna talk about that?

Robert is sitting here bleeding.

[ Chuckling ] Are we gonna talk
about that? I'm bleeding, people!

Get a lawyer. [ Chuckles ]

Before I bled to death... Yeah.

...it was very comfortable.

Good. Good. Good. Good.

Okay, so, guys -- sales.

So it's been about 16 months
or so since we started selling.

Lifetime sales to date
are about 490,000.

So in the last 12 months or so,
we've done 335,000

in top line sales.

On that, we grossed about 215,

and our net on
that is about 140.

Greiner: Where were you selling?

Yeah,
so we sell direct to consumer

through our website,
as well as Amazon.

And what do you
sell them for online,

and what does it cost
you to make landed?

It typically sells for $99.99.

And each Sleep Pod costs us
on average about $22.50 to make.

But as we continue to scale,

we can get that down
to about 18 bucks.

So I just put it on. It's warm,
it's very silky-soft feeling. Mm-hmm.

Very snuggly.

Very stretchy. Absolutely.

So I think it'll be really
helpful if we took a step back

and kind of explain
how this came to be.

So a few years ago,
I heard about weighted blankets,

like the rest of the world.

I ended up buying one of
these weighted blankets,

and I tried it on,
and I loved it.

That initial pressure really
brought on this sense of calm.

But I went to sleep later that night,
and very quickly,

I ran into the all-too-common
list of complaints

associated with
weighted blankets.


and they just overheat.

Next,
they're very difficult to wash.

You can't just take a


and throw it in your
washing machine.

Washing machine would probably explode,
right?

I'm a mechanical engineer
who's been able to work

at some pretty cool companies,

so I'm no stranger to
creating solutions to problems.

Like, okay, maybe you don't
use weight to create pressure,

but you use compression.

And this way,
it wraps around your entire body

and really,
truly stimulates a feeling of being hugged.

And, Angie,
what's your background?

So I'm a therapist.

I have a master's degree
in community psychology.

I specialize in the
treatment of anxiety disorders

for kids and adolescents.

So I knew,
more than a lot of people,

how important sleep is --

not just for our
physical health,

but our mental health, too,
so when he told me this idea,

I was already aware of
deep touch pressure therapy,

not only for things like autism, which
is what it was originally designed for,

but for anxiety disorders,

for post-traumatic
stress disorders.

Deep touch pressure
therapy is basically gentle

but firm pressure
applied to the body

Okay, the question is here
-- how much time and energy

do you have to spend
explaining the merits of the product

to acquire the customer?

So our cost of acquisition
has been phenomenal.

What is it? $11.50 blended.

Wow. And that's over
the last six months.

Very good. And this is scalable.

Primarily on Facebook? Yeah.

So we're running PPC campaigns
on Facebook and Instagram.

What'd you do last month?
What did you do last month?

So last month was our
highest revenue month ever.

We did 50,000 last month.

And were you profitable? Oh,
absolutely.

Yeah, yeah. Okay,
so how much did you make in profits?

So our net profit is usually
about 41% of our top line sales,

so it was about


That's awesome.
Congrats. Yeah. Thank you.

You're k*lling it. And we
did bootstrap this company

with $2,500. Yeah, baby!

That's all you've put in? That is
all we put in, and we were profitable

within the first week
or two of selling.

I hope everybody at
home is hearing that.

Alright. What are you
gonna use the 150,000 for?

So demand has been crazy,
and we really need inventory.

I get it. So -- I like it.

I want to offer you
$150,000 for 20%.

Well, thank you for that offer. Yes,
thank you.

Would you like to say yes?

So I don't want to drop
valuation that much.

You can counter. What's your counter,
Matt?

O'Leary: I'm intrigued
also because of one thing.

John: Kevin,
why don't you let him answer?

He was about to say something.
It may make it better for you!

Maybe my offer will just
make Daymond's evaporate.

That's why you don't have to worry about countering.
Well, maybe we could just make you evaporate.

[ Chuckles ] No,
I'd just look at it and say

that you know your customer
acquisition cost. Mundt: Mm-hmm.

I would just like to pour more
money onto that very model.

The value I would add here

is to drive that
acquisition cost down.

I'll do the deal at 15%.

Well, thank you. Thank
you for the offer. Thank you.

Are you gonna accept it?

Wait a minute. I'm gonna
give you an offer. Whoa.

My offer would be
$150,000 also for the 15%.

Thank you. Thank you.

Well, and I guess there's something
I want to make sure I put out there.

There are a lot of people suffering
from anxiety, sleeplessness.

We're not getting a
lot of hugs. [ Chuckles ]

And so this really is
something that hugs you back,

even if you are alone.

I personally really benefit
from the Sleep Pod.

[ Chuckles ]

[ Sniffles ]

[ Voice breaking ] Because one of
my best memories from childhood

was being tucked in
by my mom every night.

[ Exhales sharply ]

The reason I went
into psychology

is I lost my mom to
su1c1de when I was 17.

And through all of that pain,

I found a passion for
helping other people.

It can help so many
people. I love helping kids.

I'm dedicated to helping kids,

but there are adults out
there who need help, too.

And this product can fit so
many people and so many needs.

And so I want to make sure that
we make a deal with somebody

who's just as passionate
about this as we are.

You know, I love it, guys.

And I've got people in my
household and my family

that have sensory issues,

so that's why it's
very close to me.

And so I'll make you an offer.

I'll give you a choice. I'm
gonna give you two offers.

One will be just
what you asked for --

$150,000 for 10%.

And the one I'd prefer
is $300,000 for 20%.

So that way,
we're closer partners.

That, I think we could really run with it. I'll
give you the same offer and the same choices.

Wait a minute. I'll
match the same offer.

♪♪

Narrator: All
Sharks are still in,

and a bidding w*r is underway
for Angie and Matthew's

therapeutic swaddle for adults,
Hug Sleep.

So, guys,
you're going to get five offers.

I don't know how
often that happens.

Not often. No.

And look,
there's only one person up here

who actually bled for
you guys. [ Chuckles ]

[ Laughs ] I appreciate that.

Alright, here's my offer --

$300,000 for 20%.

That's my offer.

Guys, this is extraordinary
on "Shark t*nk." It is.

What do you guys want to do?

[ Both exhale sharply ] [
Shakily ] I don't even know.

[ Chuckles ]

Well,
I think we certainly understand the value

that all you Sharks bring, and,
you know, if any of you guys

would be willing to
kind of come together,

I think that's just
going to continue Lori.

To explode this company.

Alright,
Lori and I will do it together.

The 300 for 20.

Well,
I think if you guys are teaming up

and kicking us to the curb...

Kevin, Daymond,
will you come in?

'Cause I think three Sharks is better
than two. O'Leary: Ooh, that's interesting.

John: I think so.

Alright. I'll come in with
Kevin and Robert. Oh, God.

Three Sharks versus two. That's interesting.
Herjavec: Three Sharks, $300,000 for 20%.

O'Leary: Yeah,
that's a tough one. Oh, my God.

Three's better than two.

♪♪

This is a good problem to have.
A very good problem to have.

[ Whispering ] What
do you want to do?

I know we came in initially
targeting Mark and Lori.

You guys want to do
a deal at 20% for 300,

you got yourself a deal.

Done.

Done. Thank you!

And I can't move,
but -- [ Laughs ] Herjavec: Damn it!

I'm suing you for
making me bleed!

I'm not going to
sleep at night now.

Congratulations,
guys. Thank you.

Thank you. Together: Congratulations,
guys.

[ Chuckles ]

That was pretty
incredible. We did it.

[ Sniffles ]

[ Exhales sharply ] Phew!



and I think Sleep Pod's
gonna help a lot of people.

The little bit that we can do
to just help people to feel safe

and secure and less anxious.

And I'm so proud of you.

[ Chuckles ] I'm proud of
you. That was incredible.

Oh, man.

♪♪

Narrator: In season 11,
Natalie Holloway and Max Kislevitz

made a deal with Maria
Sharapova and Mark Cuban

for their innovative wrist and
ankle weights, Bala Bangles.

You've got a deal. Yes!

Narrator: Let's check
in with them now.

Holloway: We aired on
"Shark t*nk" just two weeks

before the world shut down
due to the global pandemic.

Kislevitz: With people trying to
figure out ways to work out at home,

we sold out immediately.

Now, in just five months,
we've done $7.5 million.

And we'll hit $15
million by year's end.

The last few months
have been challenging,

but having Mark
and Maria as partners

have been very
valuable during this time.

You came in with this
old-school workout routine,

and I was like, "Wow, this is so
off the grid." Yeah. [ Chuckles ]

Sharapova: When Max and
Natalie first presented Bala Bangles,

I really believed in them
and thought that they could do

so much to the brand,
and they really have.

I love the new packaging.

One of Maria's first notes

was to make our packaging
more retail-friendly.

The fact that the
customers can really see

what's inside the package
is a huge benefit to them.

Cuban: Being able to
expand into multiple products,

your growth has
been through the roof.

Mark encouraged us to
develop a line of new products.

The Bala Bars are
our take on dumbbells.

The Power Ring is our
take on the kettlebell.

Now,
with a full line of products,

we have landed huge accounts,
like Saks Fifth Avenue,

Anthropologie, and Dillard's.

Our biggest news is securing
d*ck's Sporting Goods,

with 640 locations.

I can't wait to see
what comes next.

The future has a lot of
great potential for you guys.

Our advice to
entrepreneurs is just to start.

Kislevitz: Take steps even if
you don't know where you're going.

Sharapova: I was an
athlete for 28 years.

I tried so many products
and visited so many gyms.

This is so much
more than fitness.

This is about a lifestyle.

And I'm so excited to
be part of this process.

"Shark t*nk" has meant
everything for our business.

It's been absolutely insane.

And it's only the
beginning for Bala.

♪♪

♪♪

Narrator: Next up are
entrepreneurs who are hoping

to hook the Sharks
with their unique idea.

♪♪

Hi, I'm Kanz! And I'm Sobhan.

And we're seeking $325,000

in exchange for 10% of
our revolutionary company.

Sharks, we love fishing!

[ Chuckling ] Oh, yes,
we do. We love fishing so much.

But we experience
a lot of frustration

with the old,
traditional fishing methods.

See,
sometimes people spend more time and energy

fidgeting with traditional lures

and catching live bait
than they do actually fishing.

Not to mention,
who wants to deal with this...

gross mess?

Ewwww!

We looked at the nasty baits

and lures available in
stores today but couldn't find

anything that attracted fish
in a simple and efficient way,

so we created it ourselves.

Introducing Animated Lure.

Animated Lure is a
rechargeable robotic lure,

the likes of which the
world has never seen.

Once you place Animated
Lure into the water,

you'll notice it starts
to swim on its very own,

mimicking the swim
patterns of real fish. Oh, wow!

Wow. If you think it
swims like a real fish,

what are the fish
going to think?

So, why? [ Chuckling ] Why?

Why spend so much time
and money on traditional lures

and live bait,
when you can use...

Both: Animated Lure?

See how much you can learn on "Shark t*nk?"
It's amazing. Herjavec: It's amazing, Kevin!

John: Amazing!
Greiner: You know,

I have to ask Daymond,
though -- O'Leary: Who knew?

Is this different than anything
you've ever used to fish with?

John: Yeah, I've never seen it.

How often does it rust?

Or, you know, like,
how many times

do you need to re-buy that
unit? Sanaee: Yeah, yeah.

So,
right now we have about 40 times.

This is with action,
with you catching fish

and stuff like that.

So how long does
it hold a charge for?

So, for different sizes.

For the minis,
up to 45 minutes of swim.

For the classic is
an hour and a half.

For the biggest one you see,
the Salt Water,

the one that's in
production right now,

that's up to two hours.

What makes you
guys fish experts?

Why should I believe you?

I'm a project manager at
manufacturing facilities and...

And I'm actually a licensed
professional counselor.

I'm working in community
mental health in Collin County.

Well, then, it makes sense.

[ Chuckles ] No, no,
but it's something that we saw growing up.

And if I may, my dad and I
used to go fishing all the time,

and I don't share
about my dad too often,

so please bear with me.

Him and I used to
go fishing all the time,

all the way until he was
diagnosed with a lung disease

and concluded his
human experience.

But it was during those
times where we noticed

some of the problems that exist

with the old,
traditional fishing method.

And so they have
always taught us

to not only identify problems,

but to try your best to
be part of the solution.

And so these words
meant a lot to me

because it came
from two individuals

that sacrificed everything
to come to this country

so that their children
have an opportunity

to contribute to the
betterment of society.

Also,
to take control of their own destiny.

Where did you come from?

Iran. Iran. From
Persia. Yeah. Iran.

What do these cost you to
make? What do you sell them for?

And tell us about
your total sales.

Perfect. The landing
price for the Mini is $8.

For the classic, it's $10.

And what does the
new big one cost? $16.

For the Mini,
it's retailing at $29.95.

For a Classic, $32.95.

And for our Salt Water,
it's $79.95. Greiner: Wow!

Is it all direct or are you through
retail? There's a huge margin on the Salt.

Right now,
it's majority on our website.

However,
we are in a few mom-and-pop stores

here in the United States.

We also have a
distributor in Canada.

We're in about 40 stores there.

What about the big boys?
Bass and all the rest?

That's where we're hoping to make a deal,
and we don't know. Ohhh!

They'll pick up your phone calls,
for sure.

Okay,
but while we're still talking dollars...

Sure. Yes.

...and costs.

$325,000,


You must be selling a
lot of mechanical fish.



Good for you. We're
projecting for this year

half a million dollars in sales,
and then, even next year,

$675,000 in sales.

You guys are making
money right now?

So, yes. So right now,
me and Sobhan both work full-time jobs.

We have zero debt
in this company.

Good. We've put everything,
our own money, into this company.

How much did you put in?
$125,000 to get the ball rolling

so we could get this done.
You didn't mess around, did you?

No, no, no, we haven't taken a
penny out of our own company. Yeah.

Every cent we've earned, we put back into
our company. John: Do you own the company?

Herjavec: As you should. Yes. Equally. Yes,
sir.

I'm thinking the way to sell this is,
forget about fishing.

Put 10 of them in a t*nk
and call it an aquarium.

You don't have to feed it.
Cuban: Yeah. You know what?

At, like, a restaurant or
something like that. [ Laughter ]

That is a good idea!
Greiner: And it never dies!

That's a great idea.

Cuban: Hey, guys, look,
it really is a good idea.

It really is clever. But
I'm just not a fisherman.

I just don't have
that feel for it.

And so, while I'm proud of what
you've accomplished... Appreciate you.

...I have to say I'm out. That's
fine. No worries. Thank you.

Listen,
I am not a fisherman, either.

I just know a little bit.

And for those reasons,
'cause I don't know,

It's a little too early for me.

I'm out.

Guys,
you're not really a company.

You're basically a
product right now

because both of
you have real jobs.

And that's nothing
wrong with that.

How do I get my
$325,000 back again?

The reality of the situation is,
it's not about what you know --

it's about who you know,
and we know that you know

that you guys
know a lot of people.

But think about
what you're saying.

I give you $325,000,

then I go to work for you,
opening up big box retail.

I get on the phone,
I fly to meet the buyer

or whatever I have to do,
and I'm working so you,

who have 90% of the company,
can say, "Good dog. Good dog."

And I gave you all the money.

Either I'm going to get a huge
percentage of this company

'cause it's not even
worth $325,000 yet,

or you're gonna come up
with some very creative way

that I get my capital back
while my partners own 90%.

You know, that's the problem.
That's a royalty deal he's looking for.

Did you say "royalty deal,"
Lori? Oh. Hark.

[ Laughs ] Oh, my goodness.

Oh, my goodness.

So, here's what I suggest --

I give you the 325,000,

I get $3 a unit until I
recoup a million bucks.


somebody decides to buy it.

That is a great
offer. Of course it is.

Let me just tell
you where I stand.

There's something you
said that really bothered me.

You said,
"It's not what you know.

It's who you know."

When I started out,
everyone said that to me.

"You're never going to make
it. You don't know anybody."

I was screwed before I
started if I believed that.

It's not who you know.

It's what you make
with what you have.

That's fair. I respect the dream

and I really respect the
hustle you guys have...

I appreciate it... but this
isn't a business for me.

I think you've got a
long way to go. I'm out.

I appreciate it. Thank you.

John: Alright. The product -- superb,
amazing.

Where I'm struggling is,
of course, the valuation.

If I gave you 325 for 10%,

basically,
as you drill down the numbers,

paying yourself and,
you know -- on a 40%, even 50% margin,

you would have to
do almost $35 million

to then take distribution
for me to make my money.

You came here
to fish for a Shark,

but you didn't hook this one.

I'm out.

Yeah.

Well, then...

all roads lead back
to Mr. Wonderful...

and the fish.

What are you gonna do?

So, our counter would be


Cuban: Hello! Okay, hold on.

And how many
dollars a unit in royalty?

So in this counter, no royalty.

[ Laughter ]

Ohh! Don't you know who he is?

I thought we were on
the planet Earth together.

Let me absorb the counter

so I can just get
the essence of it.

[ French accent ] The essence.

[ Normal voice ] Instead of
me giving you 325 for 10%,

I give you half a
million for 20%,

and I may never see it again.

It may swim away 'cause we
don't know what's gonna happen.

We want some
guidance. We're young.

We're still learning the ropes.

The first guidance is --

listen when you have a
real investor on the hook

and don't come back with a
stupid counter. I have a question.

Do you want him?
That's a ridiculous counter.

Look, look, I can't take it.

Are we doing a royalty
deal or not here? Yes or no?

Yes, we'll talk about that. Yes.
Can we -- Can we talk about it?

Can you put the hat? Alright.

♪♪

Okay. So, what we can do is that 10% mark,
but $1.50,

and then we can
do it to $500,000.

No, no. That's not attractive,
guys, 'cause I'm --

I'm getting the feeling there's not
a meeting of the minds here, guys.

What are you doing?

Guys -- Guys, I'm sorry. If
you can give us a final counter --

We're not gonna get there. We're
not gonna get there. Cuban: Say it!

I'm out.

Oh,
guys! You had the big fish on the hook!

All you had to
do was reel it in.

O'Leary: You priced it
too high -- way too high.

That's the mistake.

Everybody learns
from a mistake like this

because it is a unique product.

Everybody understands
the merit of it.

But I am not gonna
give you $325,000

unless you agree to
my terms right now.

Last chance for romance.
What do you want to do?

♪♪

Kevin, you got a deal.

Yeah! Whoa!

How'd you revive that
one? Greiner: What?!

That's how you do it.

Guys, thank you,
thank you, thank you.

That fish was dead!

Congratulations,
guys. Kanz: Thank you.

Congrats. Wow, what a shocker!

♪♪

Whoo! Let's go!

Let's go, baby! We got that!

Sanaee: Even though
Kevin made a sharky deal,

we know what he's able to bring.

We just started out as two
little kids who loved fishing.

For us to make it this far and
achieve the American dream,

that's wonderful for us.

♪♪

♪♪

Narrator: Next up
are entrepreneurs

with a product they
believe is to die for.

Ooooh!

Uh-oh. Scary.

[ Eerie music plays ]

Oh, I get it.

♪♪

Hi, Sharks.

We're your worst nightmares.

We're cereal K*llers. [serial]

[ Laughter ]

And I'm invading your
sweet cereal dreams.

And I'm stalking your
morning cereal bowl.

Just kidding!

Hi! I'm Cereal k*ller Jess.

And I'm Cereal k*ller Chris.

We're here from North Las Vegas,
Nevada,

seeking $125,000 for


Both: The Cereal
Killerz Kitchen!

We are the first... And only...

cereal bar in Las Vegas.

Wait, what's a cereal bar?

It's a place where your
childhood dreams can come true.

Think back. It's
Saturday morning.

Your favorite cartoons are on,
and you rush to the kitchen

to prepare the perfect
handcrafted bowl of cereal.

Mmm!

Just when you thought
Saturdays couldn't get any better,

in comes the Cereal
Killerz Kitchen,

where every day is Saturday.

At the Cereal Killerz Kitchen,
the opportunities are endless!

You can mix over


waffles,

iced coffees, ice cream,
and milkshakes.

You name it!

Your cereal dreams can
come true with any combination!

Sharks,
now's your time to k*ll it

and join us on our crazy quest

to take over the cereal
world one bowl at a time.

What do we have? We
have three different things.

So you have our signature shake.

So this one is, like,
our most popular.

So pretty much, it's hazelnut,
Nutella, chocolate, caramel.

What is in this?!

Okay,
so... you will love that one.

This one -- You're
gonna love the Survivor.

So,
we heard that you love peanut butter

and that you have it every
morning... Love peanut butter.

...so we gave you a
peanut butter lover's dream.

In your particular ice cream,
it does have chocolate,

and then we added a
scoop of peanut butter --

That is crazy!

This is amazing!

Really, really, really good.

Okay, how many calories
in that peanut butter thing?

Uh,
probably between 500 and 5,000.

[ Laughter ]

I really can't tell you.

This is like milkshakes,
like sundaes,

like,
this is -- you're combining everything.

Oh, this is so good! Ice cream -- Yeah,
we do pretty much

just a big difference --

Pretty much -- cereal bar,

but we can do so
many different things.

O'Leary: I want to know
what we're investing in.

Is it a retail location?
What are you doing here?

Okay. We have one open already.

We're opening our
second location.

Herjavec: So you have
one physical location.

You just opened another one.

Yeah, we're opening another one.

And then,
we're pretty much in negotiations

for our next three.

I mean,
you know the question everyone's gonna ask.

Yeah. Are you
even open right now?

Yes. So we've been back open
for about a month and a half now

'cause we were shut
down for three months.

Our first location
is in a dreaded mall.

So the malls were
completely shut down.

No one can go in or out.

Is that location
even gonna survive?

Honestly, probably not.

But we already have a
contingency plan for that.

What's the plan?

We're opening up another
store right across the street.

[ Laughter ]

How are you guys
gonna afford all this?

Just leftover
money that we have.

'Cause with our plan, you know,
it's taking about $25,000

to remodel these stores.

How much cash do you have left?

Uh, personally,
probably about $40,000, $50,000.

How did you come
up with this idea?

I've always loved cereal.

We do have a daughter

that does have a mild
case of Down syndrome.

And she's a chef in her head,

so she's always like,
"What do you guys want for breakfast?"

And she's always like,
"Cinnamon Toast Crunch."

So that's -- I was like,
you know what?

I've always thought it should
have been a cereal bar,

so we started
doing the research,

and we're just like,
"Hey, let's try to do it."

So what's your background,
though? Tell us about you.

So I was in insurance
for about 12 years.

It wasn't something
that made me happy.

I didn't love it. I
was going to quit.

The next thing you know,

I get fired 2 weeks
before our wedding.

Oh, no.

What happened?

Honestly,
my performance wasn't there.

It was like I could not
commit to something

I hated doing every day anymore.

One of the first times I ever heard somebody
take responsibility for being fired.

Greiner: I like your
honesty. I respect that.

And for me, I grew up in Vegas,

lived in Richmond,
California, for a little while.

When we lived in Richmond,

you know,
things were probably worse as you can get.

We were homeless,

lived in plenty of
homeless shelters,

rescue missions,
couch-surfed, family to family.

But I probably went to 9
different middle schools.

I couldn't read.

But now something clicked.

I read. Went to college.

Got on the dean's List -- 3.7.

So it was like, hey, you know,
we need to get this up

so we can take
care of our family.

And especially having a
daughter with Down syndrome.

You know, it is my stepdaughter,

but that's, like,
my pride and joy.

Like,
that's really what made me become a man.

This is not a
proprietary concept.

I mean,
it's a great idea. I get it.

But others could do it,
obviously.

I have a feeling that
none of these locations

that you have so far make money yet,
right?

Well, the second one's not
open 'cause we pushed it off.

Well,
there is no location right now.

The one in the mall is
still open. In the mall.

Yeah, it's still open. And how
much is that losing a month?

Probably right now,
about $8,000 a month.

Ouch! Herjavec: Losing.

Yeah, in that one.

I want to just say to you
-- your story -- very moving

because you have just
come from remarkable odds.

If I were betting
on entrepreneurs,

I would bet on you 100%.

Thank you,
Lori. I have one conflict here.

I did a deal with an
oatmeal breakfast bar place,

and so, unfortunately,
I try not to do something

that is a conflict
with something

that we are trying to build.
Are trying to build. I understand.

And so only for that reason,
I have to be out.

Okay.

♪♪

I think what you're trying
to do is extremely difficult.

You're trying to open
retail and create a brand

and pull people in.

That is an uphill battle.

If anybody's gonna do it,

it's probably gonna be you guys.

Yeah, it definitely is.

But I'm not sure I
have the stomach

for that kind of investment.

I'm out.

♪♪

You're very, very, very early.

I mean,
the product tastes great.

Thank you. I appreciate that.

But until you have a profitable location,
you're not investable.

Okay. Understandable.

You've got to prove
it with one place,

and you haven't done that yet.

I'm sorry,
guys. It's not for me right now.

I'm out.

Okay.

♪♪

You know,
here's my thought -- you know, I'm...

I'm getting emotionally
tied into the deal because --

Everybody loves it.
'cause of things you said.

This has been
in my family's life

for probably 25, 30 years.

So we couldn't find anything good for you,
but -- That's my ma-- I knew I liked that guy!

FUBU! He's not a quitter,
that's for damn sure.

Hold on. You know, this is a 3X.

You know,
we used to wear big 3Xs back then.

After COVID,
I'll be wearing 3X. Don't worry.

How you gonna say no?

You can't be out. [ Laughs ]

[ Chuckles ] Cuban: Come on,
Daymond.

Everybody loves cereal.
Who doesn't love cereal?

That's the easiest market.

The problem isn't cereal.

Look, in my house,
when Daddy has to cook,

It's always cereal, right?

That's just the way it works.

But I'm afraid for you, right?

I'm just gonna
be brutally honest.

You guys are grinders,

and now you're looking
at opening up more stores

because you have the sense that
when you get more stores open,

you'll get more revenue
and your costs will go down

and somehow it'll work out.

It doesn't work that way,
though.

Now you've got this
other 40 or $50,000

that you've got saved up,
which is your whole life --

everything.

And you're saying, "I'm all-in,"

which sounds really good
to show you're committed.

But when you said, you know,
"I'm figuring it out" --

you can't do it that way.

You're burning that money

because if you
can't get one right,

it's impossible to do two,
three, or four.

Yes, sir.

You're not ready
to take investment.

So for those reasons, I'm out.

But please,
before you open up any stores,

get somebody to work for you,
with you, partner with you

that is an expert in accounting,
that has legal background,

that can get you
through these steps,

'cause that 40 to
$50,000 for your kids,

for your future is everything.

Yes, sir.

♪♪

John: My biggest
challenge with you is that

you do look spread a little thin,
you know?

Listen,
it's a long road ahead, right?

I do believe your business will
hopefully get better in Vegas.

It's actually a great
company for you,

but I don't think
it's investable

or beneficial for an investor,
so I'm out.

Okay. Thank you, sir. Thank you.

♪♪

It's alright.

Thank you. Thank
you for everything.

We really appreciate it, guys.

-Good luck. -Good luck. -Good luck,
guys.

I'll be stopping in.

We gave it our best.
We did good. We tried.

We're gonna be the biggest
cereal company in the world.

One bowl at a time.

One bowl at a time. [ Laughs ]

I'm a little disappointed
that we didn't make a deal,

but still positive.

I still think that with the
feedback they gave us

and with our tenacity,

we're just going to keep pushing forward,
keep moving forward,

and try our best to just
survive in these current times.

♪♪

♪♪

Narrator: Next up is a product

to alleviate common
aches and pains.

♪♪

Hi,
Sharks. My name is Tate Stock.

My business is Chirp,
and we're here about

a very serious matter --

back pain.

It's the worst.

We created the world's
simplest back pain relief --

the Chirp Wheel.

And we'd love to
show you how it works.

But first,
let's go over all of this.

[ Laughs ]

These bubbles represent
those hard-to-reach muscle knots

in your back and your neck.

Now,
most people use a foam roller

to roll out their backs.

As he rolls out,

there should be enough
pressure to make the bubbles pop,

symbolizing that deep tissue
-- ahhh -- back pain relief.

[ Crinkling ]

What's that -- one pop?

Even though it
touches his entire back,

there's just not enough
contact to be effective.

So let's try it again
with the Chirp Wheel.

♪♪

[ Popping ]

Wow.

Slap my mama and call
me Sally. That's a lot of pops!

[ Laughter ]

The Chirp Wheel is designed

to fit perfectly between
your shoulder blades.

The compression-sensitive
padding

and our patent
pending spinal canal

relieve pressure off the spine

and stretch the muscles
around it in 4 directions

for the deepest
possible stretch.

Now,
the Chirp Wheel comes in 3 sizes,

each applying different
amounts of pressure.

Now,
with over a million wheels sold,

I'm here today seeking $900,000

for 2% of Chirp.

Ohhhh! 900... [ Laughter ]

That is definitely chirping.

You go, Sally!

Come on,
Robert. You know you want to come try it.

Alright. I got to try it.

So,
let's have you grab your 10-inch wheel.

Yeah, just the medium one.

Alright. This is your mat here.

And we're gonna sit all
the way down on the ground.

Let me take that off.
I can't do it with that.

Alright. Square it up,
and then just lean back.

You can keep your
arms on the ground.

There you go. Yep. Oh, wow.

And if you roll all the
way down to your hips,

just open up your hips,
and you can just sit there.

Let it open up your hips,
open up your chest.

Oh, wow. That really works!

Yeah,
you probably get some -- Holy smokes!

It's amazing how well it works.

What did it feel like?

It's way better than you think.

It was super easy.
It was really good.

O'Leary: Okay, Tate.

So I'm going to give
you that special moment

to explain why this
is worth $45 million.

So, this year so far,
we've done $12 million in sales.

What?!



Correct. 12?

Correct. $12 million sales
this year. $4 million profit.

By the end of this year,

we expect to do
$40 million in sales

with $12 million in profit.

So what is it that you
need from a Shark?

That's a great question.

The wheel is simple,
and it's effective.

We've sold over
a million of them.

I have 5 people in front of me

that are the greatest
investors in America,

and you guys are sitting
on things that I don't know.

I read over 60 books a year,
but I'm 28 years old,

and I want to have the mind-set
of a 45-year-old entrepreneur.

[ Chuckles ]

Well, I'm not buying any
of that... That's the worst.

...because if there's
one thing you know,

you know how to sell $12
million of a round wheel.

Yeah,
your pitch just went downhill,

like, crash, Tate,
after that comment.

A 45-year-old entrepreneur knows

not to offer 2% to anybody,
so...

So, also with our hyper growth,
we need funding for P. O. s.

But you said you
just had $4 million

in cash this year,
right? Greiner: But you're making money.

You have $4 million in profit.

We are making money,
but our P. O. that's in right now

is for $4 million, and so --

From who? Who are you
getting theses P. O. s from?

All B2C. So we mainly
sell through our website.

How do you market them
to get to your website?

Mainly through
social channels --

Instagram and Facebook.

Our cost to acquire a
customer is about $20 to $30.

That's high. Herjavec: So
what did you spend on marketing

last year -- this year?

We've spent about $3 million.

So, when COVID hit in March,

we had 3 months of inventory,
and we ran out in 3 weeks.

When we've sold out --
we've actually been missing out

on about $4 million
a month in sales.

What's the price for a 3-pack?



Our cost -- What's your cost?

COGs on it landed are
$21.96 for the 3-pack.

It's about $6, $8,
and $10 for individual.

Comes from China?

They're manufactured in Taiwan.

Do you have any debt?

No.

Do you have any partners?

No partners.

You don't have any debt,
zero partners,

and you're doing
those kind of numbers.

Are you really here
to make a deal?

Honestly,
I am here to make a deal.

So why the 2%?
Why come in at all?

You do realize a lot of people
right now don't have jobs.

They don't have
a career. Correct.

You know, a lot of people
will close their businesses,

and they'll never come back.

Why take the carpet from
somebody who needs the money?

♪♪

♪♪

Narrator: All
Sharks are still in,

but Daymond questions Tate's
motives for coming to the t*nk

with his back wheel business,
Chirp,

when he might not
need the investment.

Why take the carpet from
somebody who needs the money?

We believe that the Chirp wheel

needs to be in every
home in America.

So do not care
about anybody else

who desperately needs the money.
He's trying to grow his business.

I'm asking the man a question.

Well, if he grows big enough,
he can hire more people,

so there you go.

I am genuine on this carpet
about looking for a deal.

I want to have a
creative offer for you guys

where you guys make
your money back fast.

If we do over $100
million in sales next year,

I would love to cut you a
check for the million dollars,

what you invested
back into the company.

So if I gave you
an offer right now

for $900,000 for 2%,
you're telling me

that you would give it back
to me at the end of the year?

The end of next year.

So, I will give you that
offer if you will do that.

You want creativity,
here it comes.

I like sales. You've got sales,
alright?

I can get you 15% less on
your customer acquisition costs.

Whatever you're doing,
my team can do it better.

That's what I believe, alright?

[ Laughter ] Love it.

I'll give you the
$900,000 for 2.5% equity,

and I want a
royalty of $3 a unit

till I get back $2.7 million.

So I'm basically doubling my dough,
[ Laughs ]

and I don't have a time limit.

I'm not putting you
under pressure on time

'cause poo-poo
happens in businesses,

and I don't know what's
gonna happen to you.

But remember one thing --
there's only one Mr. Wonderful.

Thank God for that.

♪♪

I'm really here to give
opportunity to people

that may be at an
earlier stage than you

or maybe not had as
much success as you.

I'm not holding your
success against you at all.

I'm just saying to you

it doesn't feel right
for me at the moment.

With that, I'm out.

Thank you. I
appreciate the feedback.

Tate, you're a good salesperson,
right?

You're obviously doing well.

I just get the sense that
there is a COVID element

that's really
escalated your sales

that aren't gonna
be straight line up

to justify the valuation.

So for those reasons, I'm out.

I appreciate your feedback. Thanks,
Mark.

Tate, the one thing I do
know is sales never lie -- ever.

You've hit magic.

And how long it's gonna last,
I don't know.

But I want to go
along for the ride.

$900,000 for 3% of the company.

You pay me back
$1.50 off every wheel

until I recover $1.2 million.

Okay.

Would you guys consider
going in on a deal?

With Kevin? Are you kidding me?

[ Chuckling ] No, no,
no. [ Lori laughs ]

I love ya. I'm a huge fan.

But I want Lori and Robert.

Why would I want to partner?

I'll give you the $900,000.

You'll pay back
$500,000 this year

and $500,000 next year.

Okay.

And I'll do that for 2.5%.





Was your original deal 2%?

It was.

[ Laughter ]

Tate,
you can absorb the $1.50 per unit.

Yes, it is a royalty.

It's the first time in 12 years
I've made a royalty deal.

You have learned,
grasshopper. Greiner: Why are you afraid?

If you're gonna make the money you're gonna make --
I don't have a problem with that. Neither should you,

because of your cost of goods.

Let Tate make a decision!

Tate,
it's up to you. What are you gonna do?

Lori,
we'd pay you back $400,000 this year,

$500,000 next year.

You recoup your
entire investment

in the next 18
months -- no risk.

We don't have to
tie it to $100 million,

and we'll do it at 2%.

♪♪



♪♪

What happened to the 2%?

Oh! Either you want the
partner or you don't, Tate.

I mean, seriously.

You have no partners, Tate.

Yeah, you have no partners.

Maybe it should
be 4%. [ Laughs ]

You have 97.5% left.

[ Laughs ]

Lori, you got a deal.

Okay! Whoo-hoo!

Oh, my gosh!

[ Laughter ]

Cuban: Congrats.

Thanks.

Oh, my gosh! [ Laughs ]

Aaaah!

Pop, pop, pop, pop, pop!

What up, what up,
what up? Whooo!

O'Leary: Lori,
you make nothing on your money

till he sells his
company -- maybe.

That's every investment.

When my money leaves,
it comes back with prisoners!

Your money never
gets any prisoners!

It comes back
after 2 years saying,

"Do I still live here with Lori?

I'm not sure I ever
left this place."

Free money from Lori!

Lori, free money!"

Moving on. Moving
on. [ Laughter ]

♪♪

♪♪