12x22 - Episode 22

[bunniefuu]

Narrator: Tonight on "Shark t*nk,"
Daniel Lubetzky, the founder

of the groundbreaking
snack company "KIND,"

returns to the t*nk.

You're one of the
most impressive people

I've seen in a very long time.

Marcotte: This tiny
object changed everything.

Sharks, let us break the ice.

Your logo is so close
to Scrub Daddy's.

I'm doing this alone.

You've got to sell, man.

I will never not know
how to make money.

That doesn't matter!

I want to buy the
entire company.

We would take a million. Bam.

You want how much?

[ Laughs ]

♪♪

Narrator: First into the t*nk

is a product designed
to relieve stress

and promote relaxation.

♪♪

♪♪

Hi,
Sharks. My name is Kaylin Marcotte.

I am from New York City,
and I'm here seeking $500,000

in exchange for


Wow.

Stress and mental exhaustion

can wreak havoc on our minds,
bodies, and relationships.

Five years ago,
I was working around the clock

at an early start-up
and was looking

for a new and healthy
way to unwind and unplug.

I tried meditation, yoga,

even essential oils
without much success.

And then this tiny object
changed everything.

A jigsaw puzzle.

Focusing on one simple task

and building something
piece by piece

felt both relaxing
and rewarding.

I lost the urge to
check my phone

and truly cleared my head.

Problem was,
all the puzzles on the market

are outdated, uninspired,

and, well, kind of lame.

[ Laughter ]

Sharks,
let me introduce you to Jiggy --

modern puzzles with a mission.

Each Jiggy features unique art

by an emerging female
artist from around the world.

A percentage of every sale
goes directly to that artist,

empowering these
up-and-coming creatives

and giving them a platform
to showcase their work.

Each puzzle comes
in a reusable glass jar

and includes simple tools
to preserve your work of art.

When the final
piece is in place,

simply spread our puzzle
glue over the pieces

and transform it into a
beautifully crafted art print.

We are reinventing the
humble jigsaw puzzle

and reconnecting people
with both mindfulness and art,

one piece at a time.

Now,
who's ready to get Jiggy with us?

In front of you,
you have some puzzles,

each a different artwork.

Oh,
it's beautiful. Cuban: That's cool.

The pieces come in
this reusable glass jar.

We've seen people use them as a cookie
jar or a flower vase. Greiner: It's pretty.

Behind it is a
tube of puzzle glue,

and then in front is a
gold straight-edge tool.

It helps spread the glue.

How long does it take?
These pieces are tiny.

How many pieces
are in a typical puzzle?

Probably 500 to 1,000.

Our kids and I,
my wife and I love doing puzzles,

but you need to solve
one puzzle for me.

How did you get
to this valuation?

Because it really is
very intimidating. Yeah.

Yeah, so,
we just launched nine months ago.

In the last nine months,
we have done $1.6 million in sales.

What? Wow. Cuban: Good for you.

This first year,
we're going to do 2.25.

We're profitable.

Tell me, did you do that alone?

Yes, I'm a one-woman show.

Oh, my gosh. And you own 100%?

Yeah. Bootstrapped, no debt.

Good for you. Good for you.
No investors. No equity partners.

Very impressive. Your timing was unique,
lucky, and perfect,

because all of a sudden,
you're into COVID.

Everybody's at home,

and you're getting this
huge ramp. Marcotte: Right.

What was your profit
on that $1.6 million?

We're netting 40%,

so this year on a
two and a quarter,

we're gonna make 900.

That's unbelievable. Wow!

So why do you need us?

So, I'm doing this alone.

I'm here for a partner.

The incumbents in this space

are following a retail,
kind of old-school playbook.

No one is digitally native.

No one is competing in
SEO and digital marketing.

It's like a land grab right now.

You're doing it all online?

This first year is going to be 60% D2C,


We were approached
earlier this year

by an upscale national retailer,

and we're going
to be in 215 stores.

What does a puzzle sell for?

So,
we retail these for $40 and $48.

Costs you what to make them?

$10. $10.

And how much
does the artist get?

The artist makes, on average,

$3,000 to $5,000
for our first run.

What percentage of the
buyers now are repeat?

First,
we surveyed our customers.

We are expanding this category.

Half of our customers had never
bought a jigsaw puzzle before.

Ever?




that they would want
even something monthly.


subscription membership.

You're suggesting there might
be a subscription model to this?

Yes. We would curate new,
monthly images.

What we're seeing is
people who do return

are buying, on average,
four puzzles.

What happens when COVID is gone?

These macro trends that
inspired me to start this,

of self-care and analog,

those have been
around for a long time.

We did a quarter million in our
first four months, pre-COVID,

and then we sold out. Wow.

You are great at
branding. Thank you.

Kaylin, first of all,
you're a supernova.

Thank you.

I'm trying to remember if
we've ever had somebody

go from zero to
your kind of numbers.

This is a great business,

but at the $10 million
value that you're implying,

I have to believe

that your sales are
gonna be tens of millions

for me to recoup my investment.

I don't see it continuing
at that trajectory.

I think people will
move on to other things.

I'm out.

Kaylin,
you're incredibly impressive.

One of the most
impressive people I've seen

in a very long time. Thank you.

I do think that you're
benefiting from the COVID push,

and the valuation is
not the right valuation,

but I also don't think
you need a Shark.

So for that reason, I'm out.

Thank you. I appreciate
that. And best wishes.

You know, I'm struggling with
how much of this is sustainable,

post-COVID.

I would give you an offer,

but I'd have to
mitigate my risk,

and I'd do it this
way. [ Chuckles ]

I would give you
$100,000 for 15% equity

and a loan for $400,000 at 10%

for 36 months.

[ Herjavec laughs ] Okay.

And -- Well,
I don't hear you putting up a check.

[ Laughter ] Thank you.

You are a Shark.

What I don't know
is tomorrow morning,

vaccine,
people get on with their lives,

and they're saying,
"What was that puzzle?"

I mean, that's the problem.

I don't -- Cuban: You know,
as crazy as Mr. Wonderful is,

he's right in one respect.

The problem is
just the valuation.

You've got to make
$10 million in cash flow

that you distribute

in order for that 5% of that

to come back as $500,000 to me.

Look,
there are a lot of great branders.

There's a lot of
great marketers.

What there aren't
are a lot of people

who are great
marketers or branders

who also know how to monetize.

That's what makes you
a great entrepreneur.

You know,
it's just not a great investment.

I mean, I would do anything

to be in business
with you going forward,

but only getting 5% for
every $10 million in cash flow

is not enough for
me to get excited.

I think you'd be an
amazing partner.

Is there a percentage that

you would feel like you
had skin in the game

and could be a
partner for me in this?

♪♪

Narrator: Two Sharks are out.

Kaylin has an offer
on the table from Kevin,

and Mark seems interested,

but he is struggling
with the small 5% stake

she is offering for her puzzle company,
Jiggy.

Is there a percentage
that you would feel like

you had skin in the game

and could be a
partner for me in this?

I mean, it'd have to be 15%.

Would you scale an
investment with that

at $1.5 million for 15%? No.

Because it's still the same math,
right?

It's linear at that point.

What would you counter for 10%?

It'd have to be the 15%,
'cause remember --

Kaylin, 15% is a good deal.

Yeah,
'cause that's the difference

between when you get
to $10 million in profit,

making $500,000 in return. Totally,
totally.

Yeah, you know the math.

But we have a
clear line of sight --

I thought he was
going to say 25%.

[ Chuckles ] I'm serious.

I haven't even told you about
what we're gonna do next year.

We're going to do $5
million and net 2 of that.

The unit economics work.

I want growth capital
and to accelerate it,

but the business is working,
and we're self-funding.

You just need capital,
is what I just heard you say.

No, Kaylin,
you do not need capital.

Jump start. Growth capital.
This is a very rare situation.

This is a very rare situation.

Take his half a million
dollars for 15% to you,

as secondary shares.

Doesn't go into the business.

It goes into your pocket.

Why is this a good idea?

Because you're gonna
walk more confident.

Because you're
gonna take more risks.

Because you're gonna
have that little nest egg.

The business
doesn't need the cash,

and you have a Mark
Cuban that's gonna help you.

Are you saying that Mark is
gonna give the money to her?

He writes a $500,000 check,

and it goes into her pocket.

Mark, what do you say?
Because her business is so great.

It's great having Daniel negotiate for you,
Mark.

Cuban: So, Kaylin, what do you
think? I've never seen that before.

Look, he's right.

$500,000 in your pocket,
living in New York,

when you've been
stressing this whole time

is not a bad thing.

But then, on the flip side,
how much of an accelerant

would it be to the business?

Because if you can get
enough of a multiple on that,

then it could be worth $10 million,
$20 million,

$30 million in your
pocket. Yes. Yes.

That's the decision.
But you own 100% of it.

Yes, I do.

If we could bring
the investment up

to get to that 15% --

It's not that you
need more capital.

It's something that
you feel you want

because you set a threshold,
right?

[ Sighs ]

You know, 15 is more than
I was hoping to go to today.

And... That's why they
call it "Shark t*nk."

[ Chuckles ] I know.
I watch the show.

I knew that. Um...

I have an ask on
top of the offer.

As you know,
we're a mission-driven company

dedicated to supporting artists.

Will you match our
fundraising efforts this year,

if I meet at your 15%?

And what do you
anticipate raising?

We've done 20 so far.

I want to go over 50.

So, just match the $50,000?

Okay, easy.

Okay. Got a deal?

We have a deal! Done!

Aaaah!

Great job,
Kaylin. Thank you all.

-I can't wait. -Good
job. -Thank you so much.

-Kaylin, you are amazing. -This will
be exciting. -Thank you. Thank you.

Congratulations. I didn't
get to give you my offer.

I know,
Lori. I'm sorry. All good.

Empowering female artists
is such a part of our mission,

and now with Mark on our
team and this wind at our backs,

we can scale that
impact across the world.

The only risk you've got is

does it roll over after COVID?

No, I invested in her.

Herjavec: She was phenomenal.

This business may roll over.

This business. Fine.

We pivot and go
to something else.

♪♪

Narrator: Last season,
Kelley Higney and her mom Ellen McAlister

make a deal with Lori Greiner

for their insect-bite relief tool,
Bug Bite Thing.

I don't do this often.

I'm offering you
my Golden Ticket.

We'd like to do a deal
with you. Thank you!

Narrator: Let's see
what they're up to now.

Higney: There is no
greater platform in the world

to launch a business
than "Shark t*nk."

The year before
pitching to the Sharks,

we did $500,000 in sales.

A year and a half
after making our deal,

we have done over
$11 million in sales.

We went from 2
employees to 30 employees,

and we moved into a 10,000
square foot warehouse.

We are going to be in
over 25,000 retail locations,

including Walmart,
Lowe's, Home Depot,

Ace Hardware, Jo-Ann Fabrics,
and so many more.

Can one product
change your life?

We're living
testimonials of that.

Bug Bite Thing is so superior

because it's not a chemical,

there's nothing
harmful about it,

and it actually really works.

McAlister: We continue to be
Amazon's number-one product

for insect bite relief,

and we have over 30,000
four- and five-star reviews.

That means it works.

It works. Exactly.

The feedback that is on
these reviews are not just,

"Wow, this works great."

It's,
"Where has this been my entire life?"

We're projected to do an
additional $15 million in sales

by the end of the year.



That's what everybody
dreams of. You guys did it.

Higney: This business
means everything to me.

I feel with the deepest passion

that this is what
I was born to do,

that I need to get this product

in every household in the world,

that people need a more
effective way to get relief.

It's a huge problem,

And we're out here
providing that solution to them,

and it's the most
rewarding thing.

I love my job. [ Chuckles ]

♪♪

Kessler: Alright, this is it.

[ Inhaling deeply ]

Ain't no better time than now,
boys.

Ain't no better time than now.

Ain't no better time than now.

Let's do it.

♪♪

Narrator: Next up is an
innovation in the cleaning space.

♪♪

♪♪

Hi, Sharks. My name's Matt.

I'm Jeff. And I'm Tyler.

And we're seeking $100,000

in exchange for 10% of our
company called the Scrubbie.

It's called the what?

The Scrubbie! The Scrubbie!

Now, Sharks, almost everyone

has a kitchen sink sprayer

and probably tried
using it to clean off dishes

at one time or another.

The problem is,
to get the last bit of food off your plate,

you're going to end up
scratching your fine china.

Oh, no! Oh, no!

And you're probably gonna
get a little wet in the process.

The Scrubbie is a universal
cleaning attachment

that turns your
ordinary sink sprayer

into a supercharged
cleaning machine.

By harnessing
high-pressure water

and putting a scrubbing
attachment right where you need it,

the Scrubbie cuts
down cleaning time

and conserves water.

And since you're not
physically touching the scrubber,

you can clean using hot water

with no worries about
burning your hands.

Oh!

Not only that,
the Scrubbie's gonna adapt

to your newer,
pull-down style faucets, as well.

-Say what?! -You heard it here.

The Scrubbie's center
piece will pop out and reverse.

With its flexible,
tapered interior ridges,

it'll attach in a flash
and be ready to rock.

But wait, Sharks.

Together: There's more!

Darn right, there is.

Check this out.

The Scrubbie has
a threaded interior,

so you can take it outdoors

and screw it right
on your garden hose.

That's right, Sharks.

Use it to clean off your
outdoor tables and chairs,

your car wheels and tires,
your windows and doors,

your boat, your coolers,
your -- your birdbath.

Okay, Tyler. We get it.

Indoors or out,
the Scrubbie will handle the chore.

And we're confident
that with your help,

we can make this a success.

Now, which one of you Sharks

is ready to clean house with --

Together: The Scrubbie!

[ Chuckles ] Good job, guys.

So, is this interchangeable?

So this is your scratchy side,

this is your soft side. Yes,
exactly.

And then it's disposable.
You just throw it away?

Disposable as well. It comes
with... And you get refills.

It comes with three sponges.

How much does it cost?

$14.99 is what
we're selling it for.

And what are the
replacement sponges?

Well, we're selling them
for $9.99 for three of them,

and that's on a
subscription base,

so every two months,
you get three sponges.

A Scrubbie subscription?

Scrubbie subscription. I bet Scrub
Daddy doesn't have subscriptions.

They don't need to. O'Leary: Guys,
can I just make a comment about it?

First time I've ever seen it.

It's ugly.

I mean, it looks very,
very industrial to me.

Hosey: If we wanted to
spend more money on it,

we could have
created a better model,

but we wanted to get our margins,
costs lower.

So with this unit,
we're paying hardly next to nothing for it.

We paid $3.16.

Is it a prototype?

These are manufactured units.

O'Leary: What kind
of sales we got?

Okay, so 2019 --

the Scrubbie's an
amazing product.

It's one-of-a-kind.
It's the first of its kind.

Do you have a patent? When we get the
adjectives, there's no number, that's bad.

Yes, we have two patents,

and one in the application
process. Utility patent?

One utility patent
and one pending.

So, guys,
tell us about sales. Is there a number?

So, 2019,
we did a launch at a local trade show

in Wichita,
and we k*lled it -- everybody loved it.

What's "k*lled
it"? O'Leary: And?

So in those two days,
we sold a couple hundred Scrubbies.

How many dollars?

So, in dollar sense,
what we made at the show?

No,
just give me 2019 sales. What did you sell?

I've asked you five times.

So, total,
we sold 868 Scrubbies.

How many dollars is that?

That is right around $13,000.

Ohh.

Now,
what's this year gonna look like?

Yep, sales wise,
we -- we, business-wise,

we did some online marketing.

We didn't have
enough funds to do...

Last year... a successful online
marketing campaign and content.

It's never good when Mr. Wonderful,
who loves numbers,

asks you what
were sales in 2019?

What are sales in 2020?

I mean, just give me a number.

Right, so,
total sales to date is 868.

Dollars?



Tyler,
why can't you answer Kevin's question?

Yeah, no, so, totally -- Tell
us your forecast for this year.

Sales this year,
the forecast for this year,

if we are predictive
from other companies

that want to do
business with us,

their projection's
that we will do

around $320,000 this year.

Yeah, so they're just guessing.
There's no real there there.

Right? That's the problem.
That's why you're here.

So have you sold to any stores

and put these up at stores?

We haven't sold to any stores,
no.

We're not in retail.

Greiner: So, I'm curious.

Have you been watching
"Shark t*nk" a long time?

Yes. Yes, seen a lot of them.

Greiner: Seen a lot of them.

Who did your
packaging and your logo?

One of our graphic designers.
It was a friend of mine.

I want to go back to numbers. So,
I have a question.

And I only have two
questions -- Kevin.

Lori, I got the patent thing. Why
did you so rudely interrupt me?

Remember, Lori, I'm working on
anger management this season.

I know, and your anger
management classes are not working.

I just -- I can't
take it anymore.

I have to ask a question.
I have to ask a question.

Oh,
my God. You are so rude. Very simple.

Very simple. Just two numbers.

I'm begging for two numbers.

Lifetime sales to date.

$13,000.

No, all in.

So, lifetime sales is $13,000.

This business is not
worth a million dollars.

In February,
we got pretty excited at the trade show.

We were the busiest booth there.

We must have had 50
people come up to us

and tell us,
"You guys need to be on 'Shark t*nk.'"

Why didn't you sell it?

We got the call
the very next day

to get on "Shark t*nk." Cuban:
You still could keep on selling.

Look, guys,
do you know what a 24,000 box score is?

It's when a guy plays 24 minutes

and gets zero points,
zero assists, and zero rebounds.

Wow. It's noteworthy because

if you play 24 minutes,

something should fall in your lap,
right?

A ball should come your way,
roll your way.

You accidentally
trip and pass the ball.

You guys sold nothing.

You guys are a 24,000 box score.

Because just out of chance,

some lightning,
something should have been sold,

and you couldn't find
a way to sell anything.

Dakin: We had the opportunity.

We were approached by a company

that did want -- No, no,
no, that's not the point.

That's not the point. It's that
ourselves should have gone out --

Yeah.

We wanted to go out
and knock on every door

that we possibly could,

but we also wanted
to protect our idea.

So we went back
to our patent attorney

and claimed everything.
It doesn't matter!

-We wanted to -- -If I have
to tell you -- -It doesn't matter!

It's just another excuse.
Cuban: It doesn't matter!

Right. Look, I've heard every
eeny-meeny-miny-mo excuse, guys.

We wanted to... I'm out.

Does it not bother you that you
designed something that looks,

from a logo, name perspective,

almost exactly like another
product Lori invested in

that shall remain nameless?
You think it looks similar to --

It doesn't bother you? I mean,
the name kind of sounds the same,

but that's not the same.

Okay, so I'm glad that Robert
brought that up. Not necessarily.

I was about to before I
was so rudely interrupted.

Are you going to sue
them into the Stone Age?

So, wait,
here's the thing, guys.

Your logo is so close
to Scrub Daddy's.

You used the same font, right?

But Scrub Daddy? Scrubbie? Hosey:
For the record, we thought of this

before Scrub Daddy existed.

Did you think about this
while you were doing it?

Not at all. It never
crossed your mind?

'Cause it's really,
very coincidental... Really?

...that it's the same font. Honestly,
no.

When our designer
came up with this,

we thought it looked great.

When your logo's really close,
I don't like that,

and I don't want
confusion on the market.

-So -- -I'm out.

The -- The Scrub Daddy
doesn't have an attachment

that connects to
your sink sprayer.

And you also don't have to use your hands.
Our is not the sponge. It is the attachment.

The future of our product,
we foresee different attachments

for different purposes

to be able to screw
onto the Scrubbie.

Yeah, with a plastic thread,

you can have the car Scrubbie,
the dog Scrubbie.

Guys,
I actually found this intriguing.

But, you know, when I started
my first company out of law school,

PeaceWorks, to promote peace
between Arabs and Israelis,

there was not a period of one day,
let alone one year,

where I just waited.

Like, it was about survival.

I had to figure it
out. We didn't --

And I eventually decoded
it. We didn't have to wait.

And the fact that you
went for such a long period

trying to figure things out
concerns me a great deal.

And for that reason, I'm out.

Thank you.

Yeah, guys, you know,
to that point,

I mean, to me,
there's two types of entrepreneurs.

There's the hungry,
and there's the satisfied,

and you've been
doing this for two years.

You don't have that
desperation of hunger

that you wake up and you got to sell,
man.

Right. So --

I'm out.

Guys,
I-I really was underwhelmed.

I think you could have
done a better job with this.

One of you guys
has to sell this stuff.

I am an investor.
I have $100,000.

I have no reason
to give it to you.

I'm out.

So I know the decisions
that we make today

define us tomorrow, so, I mean,

we're gonna go out, and we're gonna
hit it hard. Take care, guys. Good luck.

You guys will figure it
out. You'll be seeing us.

I hope so, guys. Good luck,
guys. Really appreciate it.

Good luck, guys. Thank you.

Not quite how
they wanted it to go.

[ Chuckles ] No.

Get off your butt and sell.

It's good to dream.
It's better to hustle.

Well, darn. Yep.

Well,
we're going to sell more Scrubbies.

They compared us a
lot to the Scrub Daddy,

but the only thing
we have in common

is that the ability to make
hundreds of millions of dollars,

and we know within the
next few years or less,

we're gonna reach that goal.

♪♪

♪♪

Narrator: Next into the
t*nk is an indulgent version

of a health food trend.

♪♪

♪♪

Hi, Sharks, I'm Cassandra Ayala,

and I'm here today with one
of my three beautiful daughters.

Hi, Sharks. I'm India.

Both: And we're the Bumbling Bee
Vegan Junk Food and Burger Bar.

[ Chuckles ]

Sharks,
we're here today looking for $150,000

for 10% of our company.

Sharks,
when you think of vegan food,

do you think bland and boring?

Well, we are crushing that
myth that plant-based food

has to be just
twigs and berries.

Our vegan junk food

is unlike anything
you've ever had before.

Whether it's our juicy Clucker,

a double-dip fried chicken
sandwich... Mm. We got that.

...our award-winning Coney
Island chili cheese dogs

with the hand-cut Cajun fries,

or a fat,
juicy burger dripping with

our creamy cheddar
cheese sauce. Yum!

Don't forget to finish it off

with one of our sweet
nectar milkshakes.

The Bumbling Bee Junk
Food and Burger Bar

is the new
generation of fast food.

Whether you're dairy-free,
vegan,

vegetarian or flexitarian --

Or just a little
herbivore-curious.

[ Both laugh ]

Both: There's
something for everyone.

And, now,
our mom is our queen bee. That's me.

But we do need some
more honey to help us

pollinate hives across
the country. Sharks...

Both: To "bee" or not to
"bee"? That is the question.

-Aha. -[ Laughs ] Cute.

You've got some rapping skills there,
don't you?

[ Both laugh ]

Hang on. This is all vegan?

Yes. Cassandra:
All of that is vegan.



-Oh, my God. -Yay!

The mac and
cheese is really good.

We have won the award
for Best Hot Dog in our area.

And I don't mean
Best Vegan Hot Dog.

We won Best Hot
Dog. India: Hot dog.

But it's not your hot
dog. You must get...

It's not our hot dog.
It's what we do with it.

We put our magic spin on it.

So tell us about the restaurant.

Absolutely. We
have two restaurants.

India runs Virginia Beach,
Virginia.

My other daughter, Olivia,
who couldn't be here today,

runs Boulder, Colorado.

We decided to become
a vegan company

at the beginning of 2019.

What were you before that?

I was a real estate
investment broker.

Flipped a lot of houses
with my husband.

Unfortunately, I got trapped,

and that was the market crash.

So when the market crashed,

I had $10,000 to my name.

So I went and I said,
"What can I do with this money?"

So I started with a food cart,
a hot dog cart,

took my money
from the hot dog cart,

bought a trailer.

Took the money from the trailer,

bought a truck.

And I got it to the point

where I had four trucks plus a
backup truck. Four. [ Laughs ] Yep.

And I got to the
point where it wasn't

worth it to me anymore

to k*ll myself for
that kind of money,

if my kids weren't
interested in being part of it.

I needed something that my
daughters could be a part of.

So that's when I said to them,
"What is it gonna take

to get you passionate
about this?"

My other daughter, Lexi,
was a healthy vegan.

What's missing in the market?

Junk food.

Well,
can I ask you your economics? Yes.

Because in order to franchise,

you have to be able
to operate at about


profit per location.

We are at a 15% margin.

Last year,
switched over with our first truck in June.

Then we opened up
our brick and mortar,

which was my commissary,
in October.

That's what you want? You
want more brick and mortars, right?

No, I want both.

Tell me your
sales for last year.

$194,000 for one truck part-time

and one brick and mortar
that opened in October.

Now,
what's this year gonna look like?

$324,000 came from Virginia Beach,
Virginia,

which was closed
for six weeks? Yes.

And Boulder, Colorado,
which opened January 16th

and closed April 4th
and reopened July 25th.

And with that,
we also pulled back our food trucks.

Right,
we had to pull back our food trucks

because events were canceled.

And how are you doing
that? You're still open, or...?

Yes. Heck, yeah.

Greiner: You have
huge spunk... Thank you!

...and passion
and obviously grit.

I mean,
lots of words come to mind with you.

Firecracker. I love her.

Firecracker, right?

So where do you think
you get your drive from?

My parents separated
when I was very early.

My mother was a --

she's recovering now,
for almost 50 years,

but she was an alcoholic,

and I grew up in the
homeless shelters.

I learned how to dumpster dive

at 8 years old to get my food.

But that led me to understand

that I wanted to be
a stronger person.

I wanted to have control
of where I went in my life.

I will never be hungry.

I will never not know
how to make money.

And I don't think that I
would change anything,

because I would not be
the woman I am today.

That's a great story.
Good for you. Well done.

-Thank you. -Yeah,
good for you. -Congratulations.

That's, you know,
they say the strongest swords

are forged in the hottest fires.

You're beaming.

India,
how proud are you of your mother?

[ Laughs ]

I love her. She's
amazing. Thank you.

[ Voice breaking ] Like I said,
she's a firecracker.

Aren't my girls awesome?

Lubetzky: I find
you so inspiring

and the challenges
that you overcame,

but for me,
I don't see enough differentiation

between other
things that I've seen.

I'm not completely
drawn to the food.

And for that reason, I'm out.

Thank you.

There's not that one
thing that makes it

impossible to copy, right?

Your execution,
your relentlessness

will make it successful.

Anybody can copy McDonald's.

But McDonald's also
started in 1955... Right.

...and was one of the
first with drive-throughs.

Yes, and we're one of
the first vegan junk foods.

Well, yeah, and that's true,

but again,
you haven't gotten that scale yet

where you can say
to everybody else,

"We don't care what you do."

Right? Right.

Which just makes it very hard.

So for those reasons, I'm out.

Herjavec: Cassandra,
amazing job.

I mean, you know,
one of the great things about business,

it gives you the freedom
to do the things you love

and spend the time with your
family. Absolutely. Absolutely.

I will tell you, in California,
I've seen this.

Yes.

And it's a race -- Whether
you realize it or not,

you're not the first one.

You're not the only one.

There's lots of
them. That's right.

And I would never
bet against you

and the Bumblebee family.

But as a business,

I don't know if it's
ready for an investment

until you get to a
critical point of scale.

Only for that reason, I'm out.

Okay. Thank you. Thank you.

I think that it would be
smarter for you to not expand,

to stay solid and grow
what you have right now.

I'm not going to invest.

I'm sorry. I'm out.

We appreciate it.

Cassandra,
I really connected with your story,

'cause I lost my
father when he was 37.

I was raised by my mother,
and she was very tough.

But I learned from what she did,
that that gives you power.

So, for you, obviously,
you've earned that.

It gets me emotional
just thinking about it.

But your numbers,
they're not investable.

You need to make at
least $500,000 per location

on a 20% pre-tax profit.

And, you know,
I try and keep the discipline

of not letting my
emotions tug me into a deal

that doesn't make
economic sense,

and that's the
only reason I'm out.

Well, I do hope that you
will all come and eat at it.

Absolutely. Absolutely.

It's our pleasure to have been
picked by you. You guys are amazing.

Congratulations on all
you've accomplished.

Thank you. Thank you.

Bye.

♪♪

It's okay, right? Yeah.

I am the woman that I am today

because of what
I've been through

and where I've come from.

I've raised my daughters

to be the women they are today

based on that.

Yeah,
I don't think we're ever gonna stop.

♪♪

♪♪

Narrator: Next up is what
the entrepreneurs believe

is a better version of a
common household necessity.

♪♪

Hola. I'm Keidy.

And I'm Gene.

And we're the
makers of the XTorch.

We are seeking $150,000

in exchange for


Imagine the power
goes out at home

and everything goes dark,

or else you're camping
and your cellphone dies

just when you need it most.

Sharks, let us break the ice

and introduce you to the XTorch.

[ Laughs ]

Herjavec: Whoa.
Wow. Greiner: Wow.

Look at that.

After more than two days

of being frozen
in a block of ice,

it still works.

The XTorch is a super-tough
light and power device

designed to handle even
the most rugged of conditions.

It is solar-powered,
rechargeable,

and it has three functions.

It works as a flashlight,

a lantern,
and a cellphone charger.

And I know what you're thinking,
Sharks.

Another solar flashlight?

But the XTorch is so much more.

It can hold its charge up
to three years in storage,

supply up to 48
hours' worth of light.

It glows in the dark,
and it even floats.

Best of all, our company donates

at least 25% of our profits

to our partners
around the globe.

We want to see the
XTorch in every home,

workplace,
and campsite in America,

because when the power goes out,

everybody needs
reliable backup power.

So, Sharks,
who wants to partner with us

and help us light the world --

Both: With the XTorch?

[ Chuckling ] Good job. Ta-da!

So, how do you turn this on?

Oh, here, let me show you.

Well, here,
see this little button right here?

It's the on/off button.

At the top? Yeah.
Press it down one time.

Uh-huh. And that's a flashlight.

Uh-huh.

Press it again,
that's a room lantern.

Lubetzky: Whoa. Oh, I see.

Gene: Yeah. Wow.

And you press it a third time,

and you get a table lantern.

Keidy: Or a work lantern.
Or a reading lantern.

Oh, like this. Yes.

And if you notice,
press it one more time,

it all shuts off.

See these little
green lights here?

It tells you exactly
how full the battery is.

How long would it take to fully charge,
solar?

You stick it outside,
take about 22 hours.

For a full charge, but -- but

you can also charge
it with electricity.

How long does it take
you to charge that way?

Only one hour. About one hour.

But that's not all.

You can charge
your cellphone with it.

With a USB cable,
you plug it in,

and you can charge
your cellphone.

Greiner: I like that. [
Spooky voice ] Robert.

Robeeeeert. Maaaaark.

Keviiiin. Robeeeert.

Keidy: Oh. Oh,
look at that, huh?

Oh,
wow. You guys look very scary.

Especially
Mr. Wonderful. [ Chuckles ]

Herjavec: Look at this.

Look how bright that is. If the ceiling
were lower, it would be way better.

And that's just
the table lantern.

Okay,
best flashlight in the world.

How much does it cost?

It costs $55.95 on our website,
and it costs...



$55.95 on our
website. That's pricy.

It costs us about
$18.50 to manufacture,

but in our next
manufacturing cost,

it'll cost us $14.

Gene and Keidy,
I have a couple questions.

Please. Yes.

Most important,
you started, "Hola"...

Yes. but I can't tell if
you're Latin American.

Where are you from?

I am from the
Dominican Republic.

Ah, Dominicana. I grew up
in the Dominican Republic,

so I experienced
the lack of light.

And I'm sure,
because you grew up in Mexico... Yes.

...power outages are very
common in Latin American countries.

Greiner: How did
you come up with this?

I lived in Africa for a year.

We were working with
a food distribution NGO.

Where in Africa were you living?

I'm sorry? Equatorial Guinea.

And they speak
Spanish there. Yeah.

He came to visit there,
too, and I got really sick,

and they didn't know if
it was dengue or malaria.

They didn't know what it was.

So, I was there,
these doctors came in and they said,

"Hey, we don't know what this is,
but she's dying."

Ooh. So they put an IV in her.

Herjavec: Wow. She's
under this mosquito net.

There's no power in
this whole community.

And they give me this bag
full of different-colored pills

and says,
"You have to give your fiancée,

the love of your life,

these medications,
or she's going to die."

I'm in the middle of the night,
trying to read Spanish.

My Spanish was about
this big at that time,

and I've got this little,
pink flashlight

and I'm pounding
it against the wall

so I could figure out what
pills to give her at what time.

And then after awhile,
that flashlight --

of course,
we've all had this experience,

we ended up throwing it away.

So I ended up with a candle,

trying to read all of
this stuff. Greiner: Wow.

She's, like,
taking her last breath.

Well,
the end of the story is that she survived.

I survived. Yay!

That was the motivation
to make this unit?

It was. That may be
the most dramatic reason

for the birth of a flashlight.

So how is yours different

than any other flashlight out there,
or is it?

Ooh,
don't get us started on that.

Tell them. I'm getting
you started on this.

[ Laughter ]

Tell her! Tell her!

First of all,
this is not a flashlight.

This is a solar-power,
rechargeable

light and power device
that's used around the world

in the most rugged conditions
you could possibly imagine.

Otherwise known
as a flashlight. No.

No,
it's rechargeable. [ Laughs ]

It's a light and power
device that will keep you safe

and your family safe.

So it's the device formerly
known as a flashlight.

You are wrong. Greiner:
It's an emergency light.

Listen, you go down and you buy this $20,
this $10 flashlight

at your hardware store,
you bring it back,

tell me, is it going to work as a lantern,
a table lantern?

Is it gonna be solar-powered? No,
but a $55 device might.

Gene,
I don't think that's the point.

Where my head goes with this is,
it's a flashlight,

but I think -- Wait. [ Laughs ]

[ Laughter ] No!

Herjavec: Lori!

We've got to go to the
flashlight community

and ask them what they think.

Cuban: Okay, guys.

So, obviously,
this is a marketing play, right?

Because other people are
gonna say theirs is the best.

Yours is gonna be the best.

You know, the difference is
in how you market it, right?

So tell us what
you're gonna do there.

Well, right now, of course,

we are in 30
different countries.

You are already? That's right.

We are working with
nonprofit organizations

who use this to help individuals

who suffer without
light and power.

O'Leary: Do you sell
it to the nonprofits?

Herjavec: Or do
you give it to them?

Well,
we used to sell it to the nonprofit,

but we changed
our business model.

Are you a charity,
or are you a business?

No, we are both.

We are a profit business. Cuban: So,
okay, you used to sell to the NGOs.

Now you went commercial.

You want to sell these
to everyday people?

Yes. We want to go
to brick and mortar.

Before,
when our cost was higher,

we didn't have a
comfortable margin

to get into brick and mortar.

I would like to just get
to what you sold last year.

Last year,
we sold $53,000 worth of product.

$53,000? Yes, sir.

And then this year,
what do you think?

$90,000. $90,000.

So far, year-to-date,
or that's what you think you'll do?

That's what we think we'll do.

How much have you
done year-to-date?

$36,000. Oy.

When you started with
the NGOs in 30 countries,

when you were selling to them,
not giving it to them,

what were your sales then?

About $30,000
for the whole year.

For the whole year? Yep. Yep.

Is there anything
proprietary in this tech?

We went on and bought
every single flashlight, lantern,

cellphone charger,
solar panel out there

and took them apart.

And we took all of the bad
stuff and we threw it out,

and we kept the good stuff.

But, Gene, I give you credit,

you do better than anybody... -Hang on,
Mark.

...of talking around a
question and not answering it.

You tell me what
the question is.

Is there anything proprietary?

What is proprietary,
for example, is this --

see these little buttons
right here in the front lens?

Those are actually lenses
in there that we designed.

So you're saying that's
proprietary to you?

No, but we designed it. The firmware,
we designed.

So I feel like you're not
answering the question.

I'm not trying to
be rude to you,

but is it proprietary
or not? Absolutely.

Explain to me what
"proprietary" means.

Meaning you own the rights
to it and nobody else can use it.

Greiner: Is it
intellectual property?

No,
it's not. Do you have a patent on it?

I don't have a patent on it.

This product has merit,
good functionality.

It's way too expensive.

The way to make money
with this is to figure out a way

to go direct-to-consumer,
online only.

Forget retail.

$29.95.

That's probably the magic price.

There's no other way,

because you are in an
incredibly competitive space.

I think $29 -- it might
even have to be $19.

I don't know till
we test. Mm-hmm.

But I don't need a
job. I'm -- I'm busy.

I want you to do this -- I
want you to say "Make money."

Please say it. Okay,
"Make money."

"Make money." I'm out.

Okay. Thank you for your consideration. Oh,
okay.

So, guys,
you've got a great product. Thank you.

But you've got to be able
to sell that product. Yes.

And you haven't been
able to demonstrate yet

by your sales or
anything you've said

that you have a path and a plan

where you're going to be able
to blow these things out, right?

So for those reasons, I'm out.

I'm in complete
agreement. I like the product.

I think it's a good product,

but would I pay $60 for it?

I don't think so,
and for that reason, I'm out.

Okay. Okay.

[ Speaking Spanish ]

What she said.

Herjavec: What did she
say? [ Speaking Spanish ]

"Please make sure Robert
gives us a good offer."

Keidy, the sales are awful.

There's just a lack
of understanding

of how to get
this to the market.

You either have to be
the world's toughest torch

and go higher-end,

or be the world's
best low-end flashlight

with some features.

You're kind of in the
middle. Gene: Mm-hmm.

You can't be in the middle.
You're gonna get crushed.

I love the product,
but I don't want to be your partner.

I want to buy the
entire company.

Whoa.

♪♪

♪♪

Narrator: Three Sharks are out.

Robert is not impressed

with Gene and Keidy's
business acumen,

but he does see promise in
their solar-powered light, XTorch.

I don't want to be your partner.

I want to buy the
entire company.

Whoa.

I'll give you $400,000

for 100% of the business.

♪♪

No. We would take a million.

Whoa!

We have connections
and credibility

with nonprofit organizations,
all over the world --

But you don't have sales, Gene.

We don't have sales because
we have been timid... Yet.

...in pursuing that
because it's just us.

We've done no marketing.

Sales is not for the timid.

Sales is a contact sport.
That's why we need a partner.

That's why we need
a mentor to help us.

We need -- Lubetzky:
So they said one million.

You had said $400,000.
I can't get to a million.

I would go up to $500,000.

Greiner: Wow. Ohh!

It got interesting
all of a sudden.

-Seriously, Gene, this is not -- -Well,
maybe what I have to say

might help you with your
decision. Gene: Please.

I think it's a really
good product. It's clever.

You took all the things that you
thought somebody would want,

almost like a Swiss Army Kn*fe,

you put it all into this.

I think the problem,
for me, comes with

that there's a lot of
competition out there

that, you know,
you probably know do really big things.

Yes, but... And they're very,
very powerful.

It's just not investable for me.
I'm sorry. I'm out. Can we -- Okay.

Keidy,
there's nothing proprietary.

I know. There's no IP.

So why do you want it, Robert?

You've done $40,000
to $50,000 in sales.

So why would you buy it?

I see a vision of it.

I do see a branding
exercise with it.

Gene,
are you saying no to my offer?

$750,000.

-Oh! -Bam!

That's as low as we would go,
right there.

I'm sorry,
no. There's no way I'm going up to that!

Cuban: So what are you gonna do,
Robert?

Oh, I'm definitely out.

-Good luck,
guys. -Thank you so much. -Good luck, guys.

-Congrats on your success. -Okay.
Bye now. -Bye-bye. Bye. Thank you.

Lubetzky: Good luck.

♪♪

Gene: We feel like we've got
the best device in the world.

We're not ready to just say,

"Yes, here,
take our baby away from us."

No,
we wanted to be part of the process.

We wanted to grow the company
with a mentor, with a partner.

[ Chuckles ] Whoo! $500,000?

Are you out of your mind?

I like the product.

Like, come on.

[ Sharks laugh, scream ]

You want how much?

[ Laughter ]

♪♪

♪♪