Narrator: Tonight, baseball
legend and prolific investor
Alex Rodriguez returns
to the t*nk.
There's two rules in investing,
as I see it.
Rule number one is
don't lose money.
Right.
Rule number two is
don't forget rule number one.
Oh!
What does the world
need more of now?
Love! Love!
Amen.
Fear not, my Sharky friends.
Your saucy heroes have arrived.
Aaah!
All right, Sharks,
time to have some fun.
[ Gasps, laughs ]
Ooh, hell yeah!
How much have you sold?
$4 million.
-Oh! -Wow.
Jackpot!
[ Laughs ] That's not crazy.
Together: So, who wants in?!
♪♪
Narrator: First into the t*nk
is an innovative way
to add flavor to sandwiches.
♪♪
Hi, Sharks. I'm Emily Williams.
And I'm Cole Williams,
Emily's husband.
And we're seeking $200,000
in exchange for 10%
of our business.
We're not here to talk
about a problem.
We're here to talk
about catastrophes.
We're talking
sandwich catastrophes!
How about those pesky packets?
They're tough to open,
impossible to spread,
and they're never
the right amount.
And what about soggy buns?
That's the worst!
Aaah!
Well, fear not,
my Sharky friends.
Your saucy heroes have arrived
with Slice of Sauce.
Slice of Sauce transforms
traditionally bottled condiments
like ketchup, Sriracha,
barbecue sauce,
mustard, and more,
into mess-free slices.
It's flavor in a new form.
Just like a slice of cheese,
but it's your favorite
condiment or sauce.
We use only
the finest ingredients
and a unique process
to bring bold flavor
and the perfect bite every time.
So, Sharks...
Together: Who wants
a slice of this sauce?
[ Sharks chuckling ]
So, are we ready to eat?
Cuban: Let's eat. Yes.
Who's hungry?
I'm always ready to eat.
Rodriguez: Always!
Cole: So, you guys,
in front of you,
you have
a grilled cheese sandwich
with Slice of Sauce
Classic Ketchup
and Spicy Sriracha,
which does have some heat.
Ooh, wow, heat.
Yeah. Packs a punch.
Cuban: Got some kick. Yeah.
This is pretty damn cool.
Let me just tell you.
That is a good idea.
Thank you. Thank you.
Is this real ketchup
that's just been --
the water has been removed?
Exactly. Yeah.
We are removing the water.
So what's proprietary
about that?
Why can't you be knocked off
by the big ketchup guys?
Very good question. [ Laughs ]
A couple of reasons.
One, we do have
a unique process.
We've opted for trade secret,
so we've foregone the patent.
We also have licensing
agreements on deck
with McCormick and Stubb's
and Frank's,
Tapatío, and Secret Aardvark.
How long is the shelf life
of this?
Because it's not
refrigerated, right?
It's not refrigerated.
Correct.
It's an ambient product.
It has a 12-month shelf life.
Greiner: It's interesting.
Cole: Yeah.
I mean, it's almost
like a Fruit Roll-Up.
Yeah. But this is ketchup.
We liken it a lot
to a slice of cheese.
Yeah.
Right? It's the same use case.
It tastes really good.
Thank you. Thank you.
What does this sell for,
and what is the cost to make it?
That retails for $5.99.
Our cost is $1.75.
So do you think that's high?
You only get eight servings.
You can dress eight hamburgers.
It's over.
Whereas with my
tomato ketchup bottle,
I'm going to have it for, what,
maybe 20, 30 hamburgers.
We are a premium product,
and we would like
to stay positioned that way.
This really isn't just
a slice of ketchup.
This is flavor.
What are your sales so far?
So, we launched a Kickstarter
campaign in 2018,
and it went viral
within about four days.
We raised $34,000,
and our goal was $15,000.
And then your sales after
that point were what?
We are still pre-revenue
and will launch in November.
-Oh. -Oh.
But I'd love to tell you about
what we've been doing...
Oh.
...over the last
two years, because...
So, wait, wait, wait.
Just so we're clear.
...it's never
been done before.
No sales.
You put the Kickstarter on
in 2018,
and here, two years later,
you're still pre-revenue?
Correct.
So the question is...
Let us tell you the story.
...que pasa, hombre?
Yeah. Yeah. [ Laughs ]
So we discovered really quickly
that manufacturing this
is really hard.
So, how are you making these?
We've been manual, which is
why we have not yet launched,
is because we've had
such huge demand --
You can't find a co-packer
to take this and run with it?
You need machinery?
We do need machinery,
and that's why we're here today.
This, Barbara, to your point,
will help us bring down costs.
How much money have you
put into it yourself?
We've invested about $120,000
of our own cash.
But?
And we've also raised
about $500,000.
Whoa! So we raised --
From who?
We raised a friends and family
round of $300,000
on a convertible note
at a $3 million cap.
Oh, God.
We also participated in
Techstars Accelerator.
They gave us $100,000.
This is a down round. No.
The last valuation
was actually at $5 million.
So it is in fact
a serious discount
because we really want to
partner with a Shark.
I have to say, I find it
absolutely amazing
that you were able to raise
$300,000
from your family and friends
plus $100,000
and say confidently
that you have this valuation
when there hasn't been
a single bag sold.
I would like to believe
in that kind of magic
because I love magical things,
but I don't.
And so for that reason, I'm out.
Thanks, Barbara.
Okay. Thank you, Barbara.
What is your plan for growth,
and what is your plan
for world domination?
Yeah! Corcoran: Oh, my gosh.
Emily: Our focus for the first
We know that there's
a retail play here.
We've had a lot
of retail interest.
We don't want to go there first,
'cause it's expensive.
But then after we --
we do head into retail,
there's a food service play,
whether it is stadiums
or quick service restaurants
or grab and go sandwich kiosks.
To me, it's extremely important
to know three things
when you're trying to
bring to market a product --
is it something
that people need and want,
can it be done
at an affordable price...
-Mm-hmm. -Mm-hmm.
...and does it solve a problem?
Right?
So you you gave the problem.
I don't think
it's a huge problem
of not being able to carry
around your condiments.
But the complexity here for me
is I don't know the need.
And is it something that can be
made at an affordable price?
You don't know yet.
So I like the innovation,
but I'm out.
I think the Sharks
have a good point,
and I don't know
how you're going to address it,
'cause you don't have
enough data yet.
But I'm going to
make you an offer
structured against
the risk I see here,
because you need a Shark
to help blow this thing up.
I'm going to give you
the $200,000,
and I'm going to put
a royalty structure on it
to a limit of $700,000.
In other words, I want...
[ Laughs ]
...10 -- Excuse me, Mark.
I don't need any noise.
Buckle your seat belt.
Yeah, exactly. Clip, clip. Whoa!
Emily does know numbers.
Do you want to hear
the offer or not?
Yeah, let's go. Let's go.
Because right now,
it's the only offer you have.
So I suggest you focus.
All right?
Let's do it.
I'm going to give you
the $200,000
against a 10 cent royalty
per package
until I recoup $700,000,
and the royalty goes away.
And I'm going to ask
for 5% equity.
I'm the only chef up here.
Chef Wonderful. [ Laughter ]
The rest of these guys
are ignorant
in the ways of the kitchen.
Rodriguez: He said his offer
is better than nothing.
Maybe nothing
is better than that.
Thanks, Alex.
Well, let's hear
your offer, Alex.
What are you forecasting
revenue year one?
We'll start in November,
and we're forecasting 1.8. 1.8?
How are you going to
accomplish that, by the way?
So, we have our website,
we have Amazon,
and we have Thrive Market
that we're going to
partner with.
Look, Amazon will be
interesting,
but you've got to go through
such a process
to educate people, right?
I mean...
Emily, you know,
the only offer you have
is from Chef Wonderful.
Now, as these Sharks drop out,
that gives me more,
I don't know, leverage.
It does, it does.
And my offer may change.
♪♪
Narrator: Two Sharks are out.
Emily and Cole have an offer
on the table from Kevin
for their unique condiment
company, Slice of Sauce.
Does anybody else --
Yes, I would start asking that.
That would be a good idea.
Cuban:
Okay, let's throw down.
I see these
as a proof of concept
that are going to be
really hard to sell.
No chance you're doing
selling online
because people aren't gonna know
what to expect
in terms of taste, right?
It's the weird stuff that
you otherwise would not have
in your refrigerator...
Cole: Yeah.
...that's going to work.
And I think you hit the key,
too. It's refrigerator.
We're not looking
at the refrigerator.
We're looking at places
where the refrigerator
isn't, right?
Right. So it's a picnic.
It's a camping trip.
It's an RV.
But still --
But you've got to look at it,
where are my
buying decisions made?
Because you're a new category.
People aren't going to think,
"I need sliced ketchup."
It's just not gonna happen.
Mark, it sounds like
you're on the fence.
Obviously.
Mark, you're on the fence.
I'm not.
I'm gonna make them
an offer, okay?
Do what you got to do.
We live on the road.
We have four kids.
-Yeah. -Totally.
We're watching football games,
concerts, baseball.
But you said something
earlier, Cole,
that I really liked --
mess-free.
Yeah. Now, with four kids,
that's a premium in my house.
Yeah.
So there's two rules
in investing, as I see it.
Rule number one
is don't lose money.
Right.
Rule number two is
don't forget rule number one.
Yeah. Okay?
So I'm going to make
this investment
as convertible debt. Okay.
I'm going to offer you
$200,000 for 20%.
When you hit your 1.8...
Mm-hmm.
...it will convert into equity.
Okay. That's my offer.
Okay.
You understand
the dilution of that.
I do.
Would you do it for 15%, Alex?
So, guys, before you jump...
Before you go...
I'll do it for 15%,
but that means
you can't listen to Mark.
Corcoran: Ooh.
O'Leary:
What are you going to do?
I would take Mr. Wonderful's
offer [Snaps fingers] like that.
Why give up all that equity?
Rodriguez: Just to be clear,
Cole and Emily,
I'm investing $200,000
as a convertible note,
which means if you don't hit
the 1.8 in sales,
it would stay as debt
on the business.
Okay. Okay?
Got it.
Um, would there be, um,
options for P. O. financing
and lines of credit
on top of the $200,000?
I would consider that, yes.
Okay.
♪♪
Um, Alex, you have a deal.
-Whoa! -There you go.
Yeah!
[ Laughter, applause ]
Whoo! Whoo!
All right! Thank you so much!
-Thank you guys so much.
-I'm shocked.
Lucky day.
You're even more
beautiful in person.
Amazing opportunity.
Thank you. Thank you. Thank you.
[ Both laughing ]
Oh, my God!
Sorry. [ Speaks indistinctly ]
[ Both laugh ]
Holy [bleep]
Oh, my God.
You can't pass up a good offer,
and we had one from Alex,
and I have no regrets at all.
No regrets.
I'm curious whether Mark was
really going to make an offer.
Yeah, absolutely.
What was your offer?
Wah, wah.
I didn't think they'd get
an offer from anybody,
but they found
two stupid people.
[ Laughs ]
Narrator: In Season 9,
Alice Lewis made a deal
with Mark Cuban and Sara Blakely
for Alice's Table,
a platform that creates
business opportunities
for women.
Lewis:
Alice's Table empowers women
to launch their own businesses,
teaching
flower arranging classes.
Narrator: Let's see
what she's up to now.
Lewis:
When we pitched on "Shark t*nk,"
we had about 50 female
entrepreneurs across the U. S.
After we aired on "Shark t*nk,"
we grew to over 500 women.
It's been about three years
since "Shark t*nk,"
and Alice's Table has done
$4 million in revenue.
Business was going great,
and then COVID-19 hit.
We went to zero dollars
in revenue overnight.
I knew that we had to find a way
to help our business owners
earn an income again.
Luckily, we had just partnered
with 1-800-FLOWERS.
This new partnership
allowed us to deliver flowers
direct to people's doors,
and our new virtual experiences
were born.
There's going to be a lot of
companies that want to do
what we're doing together,
which is bringing our customers
together not to be customers,
but to be members
of a community.
Cuban: I invested in
Alice's Table because I saw
an opportunity
to support women entrepreneurs,
particularly those who are
stay at home moms.
Just because you're
a stay at home mom
doesn't mean you can't be
a great entrepreneur,
and I think Alice's Table
gives those moms
this opportunity.
What Alice is doing is giving
inspiration to "mom-treneurs."
So we're happy to bring
our resource to the table
and let her fly.
I want you to cut
your plant food packet open.
The pandemic actually taught me
that sometimes you've got to
kick the bottom
to come back up to the top.
We've gone from the lowest lows
to an incredible future
for the company
and a complete shift
in how we think about the future
of Alice's Table.
Cuban: This pandemic,
everybody's had to change
in every way.
As bad as it is,
wherever there's change,
there's opportunity.
We will come out of this,
and there will be companies
and entrepreneurs
that take this moment
and will change the world.
As painful as it may be,
there will be good
that comes out of this.
♪♪
♪♪
Narrator: Next up is a business
with a mission to spread love.
♪♪
Hi, Sharks.
I'm Chrissie Lam,
founder of Love Is Project.
I'm here today seeking $250,000
for 5% of my company.
Hi, Sharks.
I'm Gladys Lam,
Chrissie's loving mom.
I help her with finance
and operations
for the Love Is Project.
What does the world
need more of now?
Love! Love!
And that's why I started
the Love Is Project --
to focus on spreading
more positivity,
empathy, and connection.
Our flagship
Love Is Project product
is our artisan-made
love bracelets,
which remind you to love
and be loved.
Every handmade bracelet
is inspired by the culture
and craftsmanship
of each place of origin.
We've been able to create
over 2,000 jobs
for female artisans
in 10 countries.
Our supporters resonate with our
strong brand message of love.
They appreciate
our authenticity,
our accessibility,
and social impact.
Love is the common thread
that connects us all.
It's universal, so come
spread the love with us.
Have everyone wear
their heart on their wrist.
We've got so much love to give.
The gifts in front of you
are our way
of sharing our love with you.
Corcoran: Yeah.
Chrissie, how did you
come up with this idea?
My background,
I worked in corporate fashion
doing concept design
and trend forecasting,
traveling around the world
for multibillion-dollar
fashion companies.
After I left corporate,
I spent another eight years
on the ground
working in developing countries
with artisan groups,
leading sourcing trips
and creating products.
While living in Kenya,
I created
the first Love Bracelet
with the Maasai tribe.
Rodriguez: When did you
start the business?
I started the project
in January 2017.
By year end, we'll have made
$4 million since launch.
-Wow. -Wow.
-Wow. -And this year,
it will reach
$2 million at the year end.
Good for you. Wow.
What makes me most happy
is really to see the impact
that we've had
on the women's lives,
you know, seeing them able
to improve their homes
or send their kids to school
or feed their families.
We're more than just a bracelet.
It's very inspirational,
Chrissie.
Wow.
But is there -- is there
a profit motivation in this,
or are you trying to sustain
these 2,000-plus jobs?
No, the idea is we're
creating jobs for the women
so they can support
their families.
Our profit margin blended
is 70%.
Our EBITDA is 30%.
What does one bracelet cost,
and what do you sell it for?
So, we have our Hero products.
The landed cost
is normally $3 to $5.
And that's for one
of the little bracelets?
The beaded bracelet.
Yeah, the beaded ones.
And then we sell those
between $18 and $30.
And where are you
selling them at?
We sell them online,
on our store.
Just on your website?
Oh, we're also in over
in the United States
and 22 countries.
I like your messaging.
I think it's important.
But how do they find out
about your story?
What's telling them?
Cuban: Yeah, how are you
driving traffic?
Right.
We have digital marketing.
How much are you spending
per month
on that digital advertising?
Gladys, I love your fingers.
What are you doing there?
I'd love to answer
Mark's questions.
Fire away, Gladys.
When we started,
both Chrissie and I,
we both don't have
any digital marketing skill.
I'm a bean counter, okay?
[ Laughter ]
So first year,
the Facebook ad kills us,
but we went to classes.
I am a dinosaur in the class,
the oldest lady there,
but we just keep on cranking.
So the first year,
we might have spent
about 80% of our revenue
to Facebook.
Wow. Rodriguez: Wow.
That's okay. I'll take it.
I'm paying my tuition.
I'm going to learn it.
Amen. Then 2019,
it's about 50%,
and now I'm down to 30%.
Including agency fees.
And it has every reason
to go further down
because she has
What's your cost
per individual sale?
My cost per acquisition. Right.
CPA, cost per acquisition.
Or POAS, right?
We're keeping it down
to around $25.
But our average order is $75
because people are buying
for a gift.
And our long-term value
of for customers --
Can you believe it?
You want to give a guess?
What is my top customers?
They spend...?
$300?
$1,200.
$4 million.
[ Laughter ] Oh!
I love Barbara.
She has an angle.
Kevin, this is your
dream company.
For wedding gifts,
they buy to give to the guests
to share the love messages.
Ah, yes.
Each one has
a different message.
Our top wedding party is $5,000.
-Wow. -Wow.
But I want to know a little bit.
You said bean counter.
I want to know a little bit more
about your background.
I came from a strong
lineage of women.
My mom escaped
the communist China
and went to Hong Kong
to look for a better future.
I too immigrated to America
as a student
looking for my American dream.
Then I quickly got my CPA.
I rose up through the ranks
to be a VP finance.
Wow. Which company?
Bank of America.
Bank of America?
Yes. Good for you.
I want to be a little more
focused here for a second, okay?
I'm the numbers guy here.
You're the bean counter.
Yes. You said that yourself.
What did you sell last year,
and what did you make on it?
Last year, we sell
a million and one.
And what did you net on that?
That year, we still --
our Facebook ads
are still very expensive.
Is that another way of saying
you made no money?
Yes.
Could you just tell me
what you lost last year,
what the number was?
Close to $80,000 in loss.
Okay, so we have established
that the business
lost $80,000 last year.
That's not good.
And you have no debt.
We have --
I have
a small business loan.
How much? $200,000.
Oh. Cuban: Is that an EIDL?
Wow.
So that's where the $200,000 --
Wait, wait, wait, wait,
wait, wait, wait.
Okay, so $200,000.
Just a standard SBA loan.
Yes. Okay, plus you have
an EIDL for of how much? Yes.
$382,000.
$382,000. Wait, wait, wait.
$382,000?
So that means you have
$582,000 in debt
on the company right now.
Chrissie and Gladys, I think
you're both full of yourselves.
You came in here saying
that you had a company
with a mission.
I don't see it that way at all.
I see it as a mission, period.
But you don't take care
of the business end.
See, I don't agree
with that, Barb.
Really?
I don't agree
with that at all.
Yeah.
Well, then maybe
Mark will invest.
I totally mistrust your capacity
to make a profit.
And now you --
Whoa, whoa, whoa, whoa.
And now you come in here,
and you're asking
for an investment in a business
that had a loss last year.
It's the equivalent of you
coming in and asking us
for a charity donation.
Maybe you have something
to convince me otherwise.
I'd like to hear it.
Yes, we've been able
to get unsolicited
celebrity endorsements,
international press,
and secure
big brand partnerships.
Yeah, but it's got to
at some point translate
to the bottom line,
and it hasn't.
It is happening.
It will this year.
But most entrepreneurs
always believe
it might happen the next year.
I'm afraid I could never
think of investing in it.
We can show that.
So for that reason, I'm out.
You've done a great job
in articulating the mission.
I get that.
My mother taught me that
if you're successful in life,
you have to give back.
So far this year,
I'm at 35 charities
that I've supported,
and the only reason I can
is that the majority
of my investments make money.
And I take that,
and I give back.
I'm confused
with this presentation.
Am I investing in a business,
or am I investing in a mission?
This is not the Charity t*nk.
This is the Shark t*nk.
I'm a Shark. I want to invest,
and I want to make money.
Then I'll take my profits
and do whatever I like with it.
I don't feel there's a place
for me in this.
I'm out.
You are great people,
and it's a great product.
But on the other hand,
there's just too much
competition in this space.
We have -- I'll support,
but I just can't invest.
We -- I'm out.
Look, I-I -- it is a business,
and the mission is great.
The questions I have are
in just some of the particulars.
Right? Chrissie, you're
obviously very accomplished.
You've had professional success.
And, Gladys,
you're just a home run hitter.
That's my disconnect.
Because why are you here?
That is an absolute
disconnect to me
that I have a huge problem with.
And for those reasons, I'm out.
Rodriguez:
Gladys, I got to tell you,
you remind me of my mother.
[ Cuban laughs ]
But in a good way.
My mother arrived
to this country
in the late 1960s,
and she worked for 25 years
as a single mother
to support my brother
and my sister and I.
And I love it.
But I think you're stuck
in the middle of the bridge
between philanthropic
and business.
And when I invest in businesses,
I like to go narrow and deep.
It feels like you guys
are wide and shallow.
So I will support your mission,
but I will do it as a customer,
not as an investor.
And I wish you the very best.
For those reasons, I'm out.
All right.
O'Leary: Okay, guys.
Thank you very much,
everyone.
Cuban: Sorry, guys.
Congratulations on what
you've accomplished, though.
Thank you.
-Thank you. -Thank you.
Chrissie: We're disappointed
we didn't make a deal
with the Sharks today,
but, you know, it doesn't matter
because we're still passionate
about our project.
We're going to be profitable,
and we will keep the profits.
We don't have to share
with the Sharks.
[ Laughs ]
Mom, no.
♪♪
Narrator: Next into the t*nk
is a business
designed for an untapped market.
♪♪
Hola, Tiburones. Hi, Sharks.
My name is Mabel Frias.
And I am Shaira Frias.
And we are...
Together: The Frias sisters!
And the co-founders
of Luna Magic.
Luna Magic is beauty
with a Latina vibe.
We provide high quality
cosmetics all at great prices.
And we're all about
the three B's --
Bueno, bonito, y barato.
Bueno, which
means great quality.
All of our formulas
are long lasting
with minimal product fallout.
Bonito, which means beautiful.
We have beautiful packaging.
Y barato, which means
great prices.
Our customers
shouldn't have to choose.
No, no, no.
She deserves to buy it all.
As beauty customers,
we struggled
to find brands that spoke to us
or showed Latinas
of our skin tone
in their marketing.
But guess what? Being Latina
is not a seasonal thing.
We're Latinas 365 days a year,
rain or shine.
That's right, sister,
and Luna Magic celebrates
our cultura, our culture,
in every way,
as evidenced, for example,
in our creative color names,
like salud, dinero, y amor.
Reggaeton, banda, salsa.
Mamacita, papi, y bebé.
Y oro, plata, diamante.
'Cause if we ain't blingin'...
We ain't livin'!
So, listen up, Sharks.
We are seeking $200,000
for 10% of Luna Magic.
Yeah, and as a special bonus,
Sharks -- [Speaks Spanish] --
we will throw in
some complementary
Spanish lessons or...
Some salsa classes. Because...
Sí se puede!
So, who wants in?!
[ Laughter ]
Great job. Cuban: Good job.
As you can see,
we're very vibrant in colors.
But what I'm really
most excited about
for you to really touch and feel
is our formulations.
You have our
Uno eye shadow palette,
which is our first collection,
designed by my beautiful
baby sister.
Mabel, are these
individual products,
or is this a package
that you sell?
Individual. Yes.
Individual products, yes.
Tell us where you're from.
Yeah, so we are from
Washington Heights,
from New York City.
Our parents are from
the Dominican Republic.
We're the first women
in our family to go to college.
So, I was the first one.
I ended up going to NYU.
Good for you. And then I went to
Parsons Design School
for my master's.
Santo Domingo.
Oh, wow.
And my mother, Santiago.
[ Laughter ]
Um, so, you know,
we essentially took
parallel career paths.
I went off to corporate America,
and my sister went off
to journalism school
and then makeup school.
So she's the queen
behind all the formulations.
How much have you sold?
So to date, we have sold $16,000
of product sales.
Ouch. But as a company,
we've generated income of
$103,000 across three ways.
Again, $16,000 in product sales,
$30,000 as a grant,
and then $57,000
through a marketing partnership.
Tell us what that is.
Yeah, so basically,
we partnered with
a subscription box company
in which we developed
our brushes,
to that
particular customer base.
So you sold to them
your brushes that they included
in a subscription package?
Correct.
And to be honest with you,
the way that those partnerships
are generally structured,
you're not necessarily
supposed to make money
because it's marketing.
Right, no,
that's why I'm asking.
Right? Yeah. Exactly.
So my beautiful baby sister,
who I call Señorita Wonderful --
Señorita Wonderful!
Wait a minute.
Much better than Mr. Wonderful.
Yes! I smell a royalty.
Yeah!
So Señorita Wonderful
did a fantastic job
of sourcing the factory
and also really negotiating
for every penny for us
to generate
a little bit of income.
Good for you guys, yeah.
The part that my sister
missed is
the purchase order was $498,000.
Wow.
The value of
that purchase order.
Cuban: Now we're getting --
Yeah.
From who?
So we're talking
about the brushes.
We presented the brushes
to the subscription box.
Okay. They supplied it directly.
Exactly.
And after all that crossover,
you had $57,000 in profits?
Correct. Yes.
This is probably one
of your top sellers, right?
Yes. Yes.
And I would recommend for you
to swatch the green one.
It's called dinero.
[ Laughs ]
So if I just
go on to your site,
what does this cost me?
It's $26 retail.
And what does it cost you?
$3.40 landed.
Okay, so those
are great margins,
which is why
this industry is so competitive.
But it's a giant task
to acquire customers.
So I'm happy to announce
that although we've only had
$16,000 of product sales
this year,
next year, we're projected
to generate
$1.1 million... How?
...because
we're going into Walmart.
Wow.
Oh, you're going into
Walmart in retail?
-Fortune one. -Yes.
How many Walmart stores?
So we have two programs
that we're working towards.
Our first program is
Our opening --
That's half a roll out.
And the second one...
And the second one --
...is the testing
for the end caps.
When you say testing for
the end caps, what do you mean?
So basically, we're doing
a six weeks' test
of our capsule collection.
What's on the table right now is
between 350 and 800 doors.
Now, how did you get
through to them?
Who is your logistics partner
going to be for this deal?
Because I have lots of companies
that sell Walmart.
Really?
It is -- It is a challenge
to keep up with their logistics
because you're going to
a thousand stores.
Quite frankly, uh,
we're vetting suppliers,
but that's why we're here.
We're here for help.
How much money have you raised
or put into it yourself?
We've invested $250,000...
Oh! Rodriguez: Wow.
...of our own savings.
How'd you save so much money?
We've been working
since we were --
were 14 years old.
Hustlin'. Good for you guys.
As soon as we -- Yes.
Yeah. That is incredible.
Greiner:
I am beyond impressed.
Unbelievable.
Let's talk
about the Walmart box.
It retails for $5.
We decided to give them
the $26 eye shadow palette
in their Walmart box.
We gave them 10,000.
So it was a $30,000 investment.
What we had intentionally
decided is,
"Hey, we will give you this
as an investment,
as a marketing cost for us.
In exchange,
let us in the program."
Then they give you
over a thousand stores?
We got 4.8 stars of
customers saying,
"We love this product,
we're so excited."
Because of Latina.
And that's what convinced them
to give you
a thousand-plus stores?
Correct. Exactly.
Do you have to pay
for the end cap position?
Yes.
We're paying for the end cap.
How much are you paying?
$65,000.
Against an order of what
for the end cap?
The total order
will be $360,000,
minus $65,000,
minus the cost of the product,
which is about $200,000.
How much cash do you guys
have in the bank right now?
$157,000.
Okay, let's take
a step back here.
'Cause you guys
are all in on this, right?
You have $157,000 left.
You just told us that
you were going to have to buy
$200,000 worth of product.
Correct.
Plus $65,000 for the end cap.
You don't have $265,000.
No.
Well, that's why we're here.
[ Laughs ] We're here for help!
Guys, in order to
get there, right,
it takes a lot. Yes.
Not just financially,
but organizationally.
There's going to be
specific needs there
to fill in those gaps for you
that I think are
going to be challenging.
I just can't get there.
So for those reasons, I'm out.
Thank you.
Thank you for your time.
In 12 years of "Shark t*nk,"
I have never, ever seen
a company as
so early stage as yours
that has both an end cap order
and a 50% regional roll out
in Walmart.
You need a logistics partner
in a brutal way.
You're like the classic
you've gone out fishing
on a little boat
and you caught a whale,
and it's just dragging you
right down to the bottom
of the ocean.
That's a great analogy.
And you're hanging on.
You're hanging on.
You're trying to reel it in,
and it's saying,
"I'm going to eat these
two girls when I get down here."
I'm really impressed,
but boy, do you have
a nightmare ahead.
I'm out.
Thank you. Thank you.
Anyone?
I love the story.
I love the hustle.
I love Dominican,
Washington Heights.
I like everything about it.
Unfortunately,
we're in the business.
Jen and I can't do it.
There's a conflict.
So for those reasons, I'm out.
Thank you, Alex.
Thank you. We understand.
What is your order with Walmart?
$400,000 P. O. value if we're
looking at both programs.
Okay, $400,000.
You have how much of that cash?
We have $150,000 in the bank.
So why are you here
only asking for $200,000?
Runs a little short.
Well, we were hoping that
in, you know,
talking to you Sharks,
we could find
maybe different ways,
meaning we're open
to a little bit of equity,
a little bit of P. O. financing.
Line of credit.
You came in asking for $200,000.
It's rare that the Sharks say,
"Let me give you more money."
Okay. They usually say,
"Let me take more stock."
[ Chuckles ]
Are you open to taking
more equity?
Oh, I'm always open
to taking equity.
I love you guys,
but you confuse me.
I was sitting here. I rewrote
your numbers nine times.
The business is
a little bit of a mess,
probably more than I'm even
picking up right here.
But I like you,
and here's my offer.
So, I'm gonna give you
the $200,000.
Wait. Do I really
want to do that?
[ Chuckles ]
♪♪
Narrator: Three Sharks are out.
Barbara seems interested
in Shaira and Mabel's
cosmetic brand for Latinas,
Luna Magic,
but she is hesitant.
Do I really want to do that?
[ Chuckles ]
Hmm.
While she's thinking,
I am impressed
by everything you've done,
and I know how hard it is
to do cosmetics.
But I am invested
in something else
that is a cosmetic line,
and I don't want
to be a conflict.
So I wish you the best,
but I'm out.
Thank you. Thank you, Lori.
Thank you.
I mentioned you were
slightly messy
in your explanations
on the finance.
That worries me.
But I'm the most organized
person I've ever met,
so I can help you with that,
get your house in order
with great clarity, okay?
So I'm going to offer you
a greedy offer,
but it's up to you.
I'll give you the $250,000
in the form of only a credit
line to fund your orders
'cause you're going to need
$250,000, not $200,000.
And I want 30% for that.
I actually think that
makes sense for you,
because you -- you are in the
eye of a hurricane right now.
I have companies
that are struggling
with a third of the exposure
you have to Walmart,
just trying to keep up.
Well, let's actually
talk about what other
additional things we've been
doing to market ourselves.
I'd love to hear a response
to my offer first.
Oh, sorry. Sorry.
I think it's the only offer,
by the way.
Okay.
Does it include
the potential opportunity
of future P. O. financing
as we grow and prove ourself
through in the business?
No problem at all.
I never mind funding
any of my partners,
as long as the orders are there.
You get 30% no matter what?
Oh, I get 30% on Day 1.
[ Whispers indistinctly ]
Okay, can we counter?
I know it's the only offer,
but if we weren't
entrepreneurial --
Be careful.
Corcoran: No, I'll tell you why.
I've walked down the path
with the big box stores
with many, many products.
Okay.
And Mr. Wonderful
for once is right.
It's a hellhole. Okay.
You have to know who to talk to,
when to pull back.
It's so complicated.
It's a royal
pain in the neck, okay?
No, it's a -- it's a lot of
work on my part.
Okay. Okay.
I think you have to make
a decision.
You guys are owners. Yes.
[ Speaking Spanish ]
[ Speaking Spanish ]
Barbara, you have a deal.
You got it.
Cuban: Congrats, guys.
Greiner: Congrats, guys.
And you have yourself
a great partner, by the way.
Thank you.
You will. You guys are
going to crush with Barbara.
She'll be great. Hasta luego.
Bye!
Mabel: You know,
we underestimated
how difficult the Shark t*nk is,
but we're very grateful
that we walked away with a deal.
I mean, obviously,
the word "messy"
was a little bit of an ouch.
[ Both laugh ]
But, um, since
we're entrepreneurs
and we don't take
things personal
and the fact that she invested
is going to help us clean it up.
That is going to be hard work.
The biggest danger
to both of them
is they have stars in their eyes
because they hear
the name Walmart.
[ Gasps ] Walmart wants us.
I know.
Look, when they came in here,
I thought they were
selling pizza.
[ Laughter ]
♪♪
Narrator: Next up is a way
to bring celebrating
to the next level.
♪♪
Hey, Sharks. I'm Stason.
And I'm Brad.
And we're here seeking $120,000
in exchange for 20%
of our company...
Together: Bubbly Blaster!
Oh, yeah!
[ Laughs ]
All right, Sharks, everybody
loves to have a good time.
And the international symbol
for celebration
is spraying champagne!
Whoa, whoa, whoa!
Hold up, big guy.
Ah. Unless you just won
an NBA championship
or a World Series,
no one wants to waste
their bubbly all in one go
or have to clean up a huge mess
after it's all over.
That's why we've come up
with the Bubbly Blaster,
the only way to celebrate
with champagne that's more fun,
less mess, and guaranteed
to keep the party going longer.
All right, Sharks,
time for some fun.
Fast forward
two moments from now
when we've made
record breaking deals
with all five of you.
Jackpot!
Time to celebrate.
[ Cork pops ] Whoo-hoo!
We designed the Bubbly Blaster
to easily fit
into any champagne bottle,
turning it into a long
lasting champers cannon
to keep the celebration going,
the bubbly fresh,
and the mess to a minimum.
Cuban: There you go! Whoo-hoo!
[ Laughter ]
Yeah, check that out, Sharks!
Oh, my God. That would
have been so useful.
Our patented system
snaps into place
and is ready for
action immediately.
No need for shaking.
Oh, my God.
Our throttling trigger
is precise
for up-close action like that
or for up to 30 feet away
so you can keep the party going
even while social distancing.
That's right.
Oh, Mark, man,
wouldn't you love to have
one of these
next time you win
a world championship?
Right? And, Alex,
if you buy a team
and win a World Series,
can't you see yourself
in the locker room
with one of these bad boys?
Two of them, yeah, for sure.
[ Chuckles ]
All right, who's ready to be
the life of the party
and blast off
with the Bubbly Blaster?
[ Laughter ] Let's go.
Whoo!
All right, Sharks,
time to have some fun.
I'm going to walk you
through attaching
your Bubbly Blaster
to the champagne bottle
in front of you.
Step 1, rotate the handle
to open like this.
Yep, there you go. You got it.
Now slide the nozzle
into the open bottle like so.
Now, you want to snap it down,
and there's going to be
some resistance
because you want to make
a strong seal.
Step 4 is you flip
the whole thing upside down.
Now, remember, Sharks,
please drink responsibly.
Ooh, hell yeah!
The handle -- Yeah.
[ Laughter ]
Oh!
Oh, there it goes. [ Laughs ]
[ Gasps ] sh**t! [ Laughs ]
[ Laughter ]
♪♪
Okay, so go ahead, guys.
Go ahead. We'll play forever.
So, how did you guys
come up with this idea?
I was at a celebration,
and we were spraying
some champagne,
and it was over too fast.
Friends of mine and I were like,
"Something needs
to be done here.
We need to have some more fun."
So, I love building things.
I got a mechanical
engineering background
as well as some other things,
but...
[ Laughs ]
...I took it upon myself.
I was like, "I'm gonna go home."
And I welded up this little
item, and I was like,
"This could be fun."
I just did it for fun
at the time.
I never thought it would
turn into a business.
And one night, I was out with --
I got a bunch of buddies
over at SpaceX,
and I showed them all this.
It was like, "Dude, we need to
have this at all of our events.
We love this thing,
but we want you to make,
like,
a more professional version."
So I designed what you see
in front of you.
And with the help
of the SpaceX dudes,
we made some 3-D printed ones.
And at that stage, I was pretty
much done with the project.
But everyone that I talked to,
they're like,
"We all want this thing.
How do we buy one?"
And then I met Brad, who just
got his MBA at the time.
We teamed up.
And they're being manufactured
now just outside of Hong Kong.
So what does one cost, and what
does it cost you to make?
Sale price is $99.99,
with a landed cost of $18.50.
What?! [ Laughs ] Seriously?
It's $18.50 landed,
you sell it for 100 bucks?
-Yep -Yeah.
Wow. And how many have you sold?
Greiner: Oh, my God.
Since our launch last year,
we've sold $560,000.
Wow.
We sell directly from
our website and Amazon.
Cuban: All right,
guys, guys, look.
All you're selling is fun.
There's no real utility.
Oh, you know what?
I buy this
$500 bottle of champagne,
and I wanted
to drink it out of a g*n.
It's more of a fun item.
Rodriguez: But, Mark,
every championship team
has to have that.
Oh, yeah. Hell yeah.
I wish we had that in '09
when we won the championship.
Yeah! So I love it.
How much, first of all, how much
do you own of the business?
How much money have you raised?
We're 50/50 partners.
We both -- In total
contributions,
$120,000. $60,000 each.
And we've been bootstrapping
since Day 1, so...
No debt? Yeah. No debt.
No debt. Corcoran: So tell me,
what would you use
the money for?
We want to put that money to
elevating and enhancing
our ad spend, you know,
kind of let it --
you know, put the fuel
on the fire,
and additional inventory
because we ran into that
situation in our launch year
where they sold out
way too quickly.
So what's your vision for this?
There's the whole channel
of the business to business.
So we had a lot of interest
from, you know, bars,
hotels, restaurants,
the pool parties,
things like that.
But why wouldn't you just
stay direct to consumers?
COVID kind of hurt
because people couldn't go out
and party as much, right? Yeah.
So even, like, event companies
and hotels, right...
Caterers.
...let them just buy from you
because it's 99 bucks, right?
They have, a little bit.
Yeah, you don't need
to have a wholesaler.
You don't need to go
to a retailer.
The bigger question is,
can you get your price down
even lower than $18.50?
We could.
With higher volume, for sure.
What do your volumes need to be?
I mean, we usually do it
in 5,000-unit increments now.
So, how much does it go down
if you go to 25,000?
I mean, 25,000,
probably closer to 10.
I got to tell
you guys something.
You came in here
with $120,000 for 20%.
Imputes a $600,000 valuation.
That's not crazy.
You might get a deal.
You might get a deal.
Actually, you know what?
You guys will get a deal.
I'll offer you
the $120,000 for 25%.
Just got to tell me,
and if not, I'll go out.
That's a no-brainer.
Done?
Ye-- Bu--
Yeah.
I'd love to get
you guys together.
Yes.
You guys did that
with Ice Shaker.
I think it'd be
a no-brainer.
But then you got to
give us 30%.
Oh.
Could you do, uh,
$180,000 for 30%?
Yeah, we can do that.
Yeah, let's do that.
Done. Yes!
We got a deal!
That was easy.
Greiner: All right!
Whoo!
-Jackpot! -Whoo-hoo!
Oh!
-Yeah! -Congratulations, guys.
It's gonna be fun.
Cheers, Sharks. Thank you.
Bye, dudes.
Adios!
Whoo-hoo! Yeah!
Jackpot! Yes!
Blastin' off!
Hustlin' and battlin', baby!
Whoo-hoo! Bam, bam, bam.
Well, here, cheers to your deal.
Cheers.
Chevalier du Tastevin.
Chevrolet.
[ Laughter ]
♪♪
♪♪
12x10 - Episode 10
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.