12x08 - Episode 8

[bunniefuu]

Narrator: Tonight on "Shark t*nk"...
A fun and educational storytelling robot

built on modern
smart-home technology.

Let's get started.

This thing
is gonna be everywhere.

This is the next umbrella.

$800,000 for 8% of the company.

-Wow. -Hello.

[ Laughs ] Goodbye.

An elegant solution
to the safety problem.

I love it. It's brilliant.

I think it's a slaughter fest.

This, I see,
as a genius product.

You're gonna have
big companies crush you.

It will be big.

Would you be willing to
sell your whole business?

Narrator: And later, we check in
on how "Shark t*nk" companies

have been affected
by the coronavirus pandemic.

Childcare is a must
for working families

and to reopen this economy.

Scrub Daddy has had to change
every aspect of its business.

Rossiter Lewis:
Over 500 business owners
lost their livelihoods,

but we had an idea.

♪♪

Narrator: First into the t*nk

is hidden goodness
in a favorite treat.

♪♪

Hi, Sharks.

My name is Jessica Levisan,

founder of Peekaboo Organics.

We make super premium
indulgent ice cream

with a hidden ingredient,

and I want to challenge you
to a taste test

to see if you can figure out
what that secret ingredient is.

Placed before you
are our five original flavors.

Please dig in and see
if you can figure it out.

-Okay. -Alright.

-I love a challenge.
-That's interesting.

Levisan:
I want you to tell me all the
different things that you taste.

Lori, what do you taste
in the first flavor?

Chocolate.

Robert, tell me
what you're tasting.

Heaven. [ Chuckles ]

What if I told you
there was hidden veggies

in every single flavor?

I would say you're lying.
[ Laughs ] Peekaboo.

What's the one in the middle?

This is all vegetarian?
Levisan:
That's cotton candy.

It's dairy ice cream
with hidden veggies

that you cannot see or taste.

Really?

Absolutely.

So, it's real ice cream
with vegetables thrown in?

Absolutely.

So, the mint chip actually has
two cups of spinach

in every container
of the mint chip.
Wow.

The strawberry has 14
baby carrots in every container.

The chocolate
has 10 cauliflower florets.

The vanilla has the equivalent
of a zucchini and a half.
Greiner: Wow.

And the cotton candy
has three baby beets.

You haven't told us
what you came here for.
Okay. [ Chuckles ]

So, what do you want?

So, I'm asking for $800,000
for 8% of the company.

Wow. Hello.

[ Laughs ] Goodbye.
No, I'm kidding.

You must have enormous sales.

I'm excited
to tell you about them.

So, we launched
less than a year ago,

and to date, we're in
almost 900 stores...
Herjavec: Wow.

...and we're gonna be in 3,000
stores by the end of the year.

And what are sales?
Greiner: Wow.

Wow, that's remarkable.

So, the sales since
we've launched is $450,000.

That's it?

You're asking for
a $10 million valuation.

Innovative,
high-growth food startups

are trading at four to six times
revenue multiple.
Ugh.

O'Leary: Oh, come on.

This is ice cream
with carrots in it.

We're projecting to end the year
with $2.6 million in sales.

We're in Whole Foods, Safeway,
ShopRite, Weis Markets,

Lazy Acres --
How did you get
to all these places?

I hustle.
So were you at a show,
like a food show,

and all of a sudden,
everybody picked you up?

That's what happened.

Would you like --
I can hand out pints.

-Yeah, please.
-It's cane sugar, isn't it?

Absolutely.

So you're putting vegetables in.

I'm wondering
if you're lowering fat...
Here's the mint.

...if you're lowering sugar.

-It's indulgent ice cream.
-Okay.

O'Leary: So your pitch is,

"Look, you're gonna eat
the ice cream anyways.

Why not add
some vegetables to it?

Because particularly, kids have
a hard time eating beets.

So I'm gonna feed them beets
in a hidden form

of delicious ice cream."

I mean, it's a parenting hack.
[ Chuckles ]

How did you come up
with the idea

to put vegetables in ice cream?

Ice cream's always been
my passion,

but really, I created this
'cause I have kids.

I made it for my children
and parents everywhere

'cause the reality is
kids don't like vegetables.

Peekaboo really bridges the gap

between what we can't get enough
of, which is ice cream,

and what we don't get enough of,
which is veggies.

Jessica, I think my kids
would love this.

They for sure would love it.
[ Chuckles ]

Have you tried it
with kids? Like --

I would love to show you --

I have a commercial, actually,
that we filmed.

Oh.

Man: Here comes the next flavor.

Tell me all the different
things you might taste in it.

I think I taste strawberry
in there.

It's really good. [ Laughs ]

Creaminess -- it's just insane.

What do you think about
the spinach in this one?

There's spinach in this?

How do you like the beets in it?

There's beets in ice cream?

There's zucchini in it?
[ Laughs ]

There's not really
a vegetable taste in here.

There's just, like,
an ice cream taste.

I don't like spinach,
but I love this.

Girl: Peekaboo!

-Fabulous ad. -Great idea.

It's fantastic.

Jessica,
how much have you raised?

So, I did an initial round
earlier this year,

and I raised $1.2 million.
$1.2 million.

What valuation on that?

So, it was done -- it was
a convertible note round

since it was difficult
to determine a valuation.

But did you put a cap on it?

It was a $5 million cap.

-$5 million cap.
-$5 million cap.

What are you gonna do in sales
next year?

A very conservative projection
for next year

would be $5 million.
Let's just think
this through.

Does anybody else sell ice cream
with vegetables?
You --

We're the only company
on the market that sells --
For now.

The big companies
trade at 7 to 11 times
free cash flow, okay?

When new entrants come in
and prove a concept,

the big guys say, "Oh, look.

Put beets in our existing
product already," and crush you.

The trend is
that larger companies

are really acquiring smaller,
innovative, high-gross startups

like Peekaboo Ice Cream.
Unless it's cheaper
to do it themselves.

I can innovate,
and I can pivot really quickly.

Is your goal to sell?

My goal is to sell.

This is something we hear
very often

with very savvy,
very smart people

that come on "Shark t*nk,"

that they're building so fast

and their end goal
is to sell it.

My practical experience to date,
without exception,

has been every single business
I invested in

that had that as an end goal

either went out of business

or, in the end,
almost folded up their shop.

I'm so suspicious of that. Okay.

You know, I just think
it's a cautionary tale

because I have learned to
interpret your pitch here

as a very bad sign,

and it's pretty scary.

So for those reasons, I'm out.

Thank you, Barbara.

The large players in freezer
that own that category

don't just roll over
when Jessica shows up.

"Oh, yeah,
take my freezer space from me."

And by the time you get
to $50 million in sales,

which is basically nothing
in the ice-cream space,

you're gonna have
two or three major players

crushing you
like a frozen cockroach.

I'm aggressive with you now
because the ask is a joke.

[ Chuckles ] It's a joke.

$800,000 for 8%?

B.S. Are you kidding?

$800,000 -- I would want 60%
of this company.

[ Chuckles ]

So, obviously, I'm out.

Thank you.

Jessica, it's -- it's incredibly
impressive what you've built.

My issue is, you know,
we're Sharks.
[ Chuckles ]

We're here to help you build
a business where we both profit.

This isn't a vulture fund.

To come out and say
that in one year,

you created $10 million
worth of value...

I struggle with the concept

of creating $10 million in value
in one year.

I'm sure it happens.
It happens in tech.

I-I don't see it here, and I --

I don't trust that piece of it.

I'm out.

Okay. Thank you.

Cuban: You know,
along those same lines, Jessica,

I have my rules for success,
right?

If you go online and look up

"Mark Cuban's rules
for success,"

number one is,
"Don't start a business

unless it's an obsession." Okay.

Rule number two is,

"If you have an exit strategy,
it's not an obsession."
Wow.

And for those reasons, I'm out.

Okay, I would just like to
address that because I --

That's a great rule.

Anybody that knows me
knows this is my passion.

Um, is everybody out?

Except you. But me.

But I would like to explain
the valuation.
And then there was one.

First of all,
I'm gonna explain to you,

do you know
how a diamond's made?

Why don't you just
make her an offer

without all the B. S.,
Lori?
Okay, a diamond is carbon --

[ Laughter ]

Greiner: Stop it.

Stop it.
You have no competition.

Just make her an offer
without all the B. S.
Your mythology stories.

Come on.
I want to tell her this.

Lori, tell us about
the diamond tomorrow.
Stop. Quiet.

If you squeeze it --

Greiner: I'm gonna tell you
how a diamond's made.

The way a diamond is made
is you take carbon

and you put it under intense
heat and pressure in the earth,

and it crystallizes.

And then they take that
out of the earth

and they facet it
and they cut it

and it turns into
a beautiful diamond.

I think sitting here today,
you reminded me of the diamond.

-Oh. -[ Groans ]

Because under intense heat
and pressure, everybody here --

You mean the valuation? No.

Everybody here threw
a lot of crap at you

and made it very difficult
for you.

I think that you were
put under intense heat

and pressure here today,
and I watched you.

And now you're a diamond.
And I think that you did
an excellent job.

Thank you.
I think that you had
smart answers for everything.

I think you held yourself.

I like what you're doing,
but I think that in my vision,

I think that you need to
improve it even a little more.

So you may not like my offer,
and you can tell me goodbye.

-Okay. -But you're a diamond.

-But... -I'm a diamond.

...I would want,
if I invest in you,

to have another version
that actually is low-calorie,

low-fat, healthier option,
add the vegetables.

You have to be willing to be
open to brand extension

and to creating something
that would fit

within your brand like that.

There are those that like
high fat and sugar,

and they'll always like that.

And then there are those
that want a healthier option.
I beg you,
give her the offer.

What I'm going to do
is this.
This year?

I'm going to give you a loan
instead of an investment, okay?

-Ouch. -Ugh.

Greiner: 'Cause it's risky.
Your ask is huge.

Everybody said it, right?

I'm gonna give you a loan
instead of an investment,



and I still want 5% equity.

You could really do well
with a strategic partner.
It's a great offer.

It's risky here.

I'm a believer in
when you go healthy, go healthy,

and I feel that
this is halfway there.

I think
that's a great offer.
I like the concept,
but I'm halfway there.

So you could say no.
That's fine.

But for me to do it
and step in with you,

that's what it's gonna take.
-Bam.

Only 5% equity you have to
give up. What do you say?

First, I'd like to thank you
for being the only offer.

-That's right. -[ Chuckles ]

I can give you an offer,
if you wish.
Ohh!

My fellow obnoxious Sharks
at this moment.

No, but the truth is, I think,
really, the lane for me

is indulgent ice cream.

I think there's other
competitors there

that do what you're describing,
and they do it really well,

and that's
a different market.
Maybe you're not a diamond
after all.

[ Chuckles ]
Hopefully I still am.

But you don't want to
go the --
But I really --
I appreciate your offer,

but I would decline
for that reason.

You just don't want to expand
the product line.

I believe, really,

we're positioned as
an indulgent, delicious, and --

And we had to listen
to all that first.
No, I get it. I get it.

And for me to be --
Jessica, just to give you
another offer

so you left with two,

I would do the $800,000 loan
at 9%,

and I want all 8% equity.

Then you get Mr. Wonderful.

That's actually
a pretty good offer, too.

But that's a real offer.
I'd do that deal.

There's no downside
to that offer.
Commercial lending's 13%.

I'm not putting
any covenants on this stuff

in terms of what you do.

I'm here really for equity
and equity investment,

not so much the loan.

Then you should've brought
a valuation

that was more realistic.
I think you got pushback --

I mean, you can counter
on the valuation.

The valuation's very difficult.

Everybody gave you
a hard time on that.
Right.

You're very impressive.
The product tastes great.
Thank you.

There are risks,
obviously.
Yeah.

But the way to approach this

given what we have to do
as investors

is it's got to be debt,

because there's
no realistic valuation

that makes sense at this point.

Greiner: But it also tells us
how bad you want a Shark.
Right, I --

You know, everything
that we're offering you...
Right.

...tells us something, as well.

But I can finance it.

You don't get
a Shark, though.
Yeah, but it's not
the same.

I want someone
that believes in the concept.

He's giving you $800,000.
Of course he believes in you.
Right.

It's his collateral
to get it back, his equity.
I want to get it back,
too.

You have no interest
in venture debt, right?

That's what you're saying? -No.

Thank you.
Thank you.
I really appreciate it.

Congrats. Good luck.

Levisan: I do think
the Sharks made a mistake today.

I mean,
everyone's got their jam,

and, you know,
maybe it wasn't theirs,

and, you know, obviously they
thought the valuation was high.

But for sure
they made a mistake.

For sure they made a mistake.

[ Chuckles ]

Narrator:
Next up is a product that makes
a dangerous activity safer.

♪♪

♪♪

Hi, Sharks. I'm Alex.

And I'm Henry.

Both: And we're
Brake Free Technologies.

We're here today
seeking a $200,000 investment

in exchange for a 10% stake
in our company.

Wow.

Some of you may know

how insanely fun
riding motorcycles is,

but we all know
how dangerous it is.

I am a husband and a father
of two beautiful little girls,

so returning home safely
from my rides

is always
my number-one priority.

Motorcycle accidents
can be traumatic

and life-changing
for everyone involved

and not just those
in the accidents.

So preventing
motorcycle accidents

should be the highest priority,

and improving rider visibility
is the best way to do that.

But it doesn't help
that many motorcycles

have just one brake light

positioned below the eye level
of car drivers.

Current offerings to this
critical visibility problem

falls way short of meeting
riders' needs -- until now.

Introducing Brake Free,

our ultra-visible and elegant
solution to the safety problem.

-Wow. -That's pretty cool.

-Wow. Cool. -That is so cool.

Unlike a regular
motorcycle brake light,

Brake Free mounts at eye level
so that everyone can see you.

It lights up brighter
any time you're slowing down,

no matter how --

braking, engine braking,
or down-shifting.

Turn it on, and it stays on

with its long-lasting
rechargeable battery.

It installs in seconds
to the helmet you already own.

Just stick our universal mount
to the back of your helmet,

and you're ready to ride.

No need to wire anything
to your motorcycle

or install any apps.

It's that easy. -Cool.

Brake Free was made by riders
and for riders,

and it's a smarter way
to be seen.

Now, which one of you Sharks

wants to take a safer ride
with Brake Free?

-Great idea. Great idea.
-[ Chuckles ] Very cool.

Beautiful.
-Does it have a sensor in it

that determines
when it's slowing?

Yes. Yes, sir.

You took the same senors
from a phone...
Exactly.

And put them
into the device...
Yes.

...and it does the a*t*matic
slow down, acceleration,

all that. Yeah.

So it knows, and then
it triggers the lights

that are in the device to react.

-Do you have a patent on that?
-Yes, we do.

-We absolutely do.
-Wow. What kind of patent?

We have a utility patent
on this technology.

What does it sell for, Alex?
I'm dying to know.

It's selling at retail at $169.

-Wow, that's a lot, actually.
-Not that bad.

Riders are expecting
to pay over $100

for anything that's quality.

So $169 is not very much at all

for somebody that values
their safety.

Where are you selling it?
How many have you sold?

What does it cost you
to make one?

Our cost is $42 per unit.

And we have $240,000 in sales
on Indiegogo.

So these are all pre-orders
at this point.

Okay, so you haven't
shipped any yet.
Ah.

-We have not shipped any yet...
-Right. Got it.

...but we are extremely close
to shipping.

And you need this $200,000
to build inventory.
Yes, we do.

And you're confident
that this design as is,

you should go behind
and build more?
Yes.

Before you get any feedback
from customers.

I see a risk there.

This is not a product
that's for me,

so I won't b*at you up
on valuation,

although I love to do that.

You know that. [ Chuckles ]

But I'm out.

I should be, of everyone here,
the most interested party

because I had a younger brother
who was crippled

when he was run over
by a truck from behind

and the trucker didn't see
his brake lights.

Yes.
Wow. I'm so sorry
to hear that.

So I should be, like,
grabbing this, okay?

But I'm not hearing
anything clear

or that gives me confidence
that you can sell this thing.

So because I lack trust
in that aspect,

which I think is more important
than the product, I'm out.

Sorry to hear that.

I think Alex and I
are both great salesmen,

and that's why we're here.
-Yeah.

This, I see
as a genius product.
Thank you.

I think that
it is fantastically done.

I think it looks terrific.

My only worry is, um,

when products have a liability
issue that can go with them...
Mm-hmm.

...you know,
it's much more challenging.
Yeah.

I think it's necessary,
I think it's needed,

but because
it's not all worked out yet

and because there is
liability potential,

for me, I just feel
I need to sit this one out.

Sorry, I'm out.

Look, I love it. It's brilliant.

I think it's a great idea.

But just because
it's a great product...
It will be big.

...doesn't mean
it's gonna get to market. So --

I think we have all the money
we need to go to market,

and the money we need
from you Sharks is to scale...

Maybe.
But I think you need --
...to tap into that
economic of scale.

I think you need the expertise
to go to market with that.

And that would be great,
as well, yes.
Yes.

We are in this space.
We know this space.
Partially why we're here.

My friends are in this space.

One of my best friends
owned Harley Canada.

We've connected with Ducati.
We would love to be
in dealerships, as well.

Yeah, I mean, I think
you eventually have to go there,

but not today.

I'll give you $200,000 for 20%.

That's my offer.

This is gonna be on the back
of every helmet out there

'cause there is a passion
to riding motorcycles,

and this gives you that safety.

Absolutely. Thank you.
With style to match it.

Absolutely. Corcoran: [ Laughs ]

Well, I'm gonna be using it,
Henry, so...

What do you think of that offer?

I think Mark's been
a little quiet.

Yeah, look, I mean, Robert,
obviously, is more ingrained

in the motorcycle culture,

but I can tell you

I have a company, SURESTOP,
Guardian Bikes,

that has gone online
and just crushed it

with safety devices
for regular bikes,

but it's changing the industry.
Right.

Herjavec:
Guys, I think I made you
a fair offer today,

and this is what I do.

I mean, this is, you know...

Besides cyber security,
this is what I do.

Mark's a great guy.

If you want to pursue
a different route with him,

I'm happy to drop out.

But I think I made you
a fair offer.

Would you guys
want to collaborate together?

I think the brick and mortar
and the online together --
Cuban: I'm open to it.

I'm open to it.
I only have one condition.

When we're riding the bike,

Mark has to get on the back
and hug me.

[ Laughter ]
That's fair.
That's fair enough.

That says a whole lot more about
you than it does me, Robert.

[ Laughter ]

I'm open to it. Okay, let's go.

-Yeah, let's do it. -Nice.

-Alright! -Congratulations, man.

-Thank you so much.
-Thanks, guys.

-Great job. -Thank you.

Herjavec: Awesome. Great job.

-I'm super excited.
-Thank you, thank you.

-This is awesome.
-This is amazing.

Aah! [ Laughter ]

-Oh, gosh. -Yes.

-Thanks, guys.
-Thank you very much.

-Congrats.
-Thank you, thank you.

Congrats, guys.
Good deal. Great presentation.

Thank you.

[ Chuckling ] Yes. Yes.

Whoo-hoo! Flying, dude.

Yes. Whoo!

This has been our dream.

Mark and Robert, those are
the two guys that we wanted.

I mean, this is, like, the
game plan ex*cuted to the "T."

Like, this is a dream.
I-I couldn't ask for more.

♪♪

Narrator: Next into the t*nk
is a product

to make all your schlepping
easier.

♪♪

♪♪

Meckwood: Hi, Sharks.

My name is Kim Meckwood,

and I am absolutely thrilled
to be here.

I'm seeking $225,000

in exchange for 15%
of my company, Click & Carry.

We've all been there.

We just finished
grocery shopping

and now we're faced
with the burden

of getting
all of those purchases home,

from the cart to the car

and again from the car
to your house.

Now, if you're anything like me,

you insist on doing this
in just one quick trip

and you often end up with the
grooves in your hands and arms

from carrying so much weight.
-So true.

What if I told you that I have
the solution to this problem,

allowing you to be hands-free
while you do juggling?

[ Laughter ]

You could juggle all that life
has to throw your way.

[ Laughs ]

It's with this.
It's Click & Carry.

-Wow. -Oh.

You simply twist
the Click & Carry open,

you load handle bags
on each side.

The key is to
evenly distribute the weight,

and it's any bag
with a handle --

plastic, paper,
even your purse will do the job.

Then you click the top
back into place

and you can either carry it
in your hand, or better.

You're all set.

Wow.

So, Sharks, who wants to help me

to Click & Carry this gadget
into every shopper's hands?

Corcoran:
That's comfortable, right?

It's very comfortable
on your shoulder.

Come up and try it out.

I want to see Barbara do this.

God, this weighs --
this is great.

Is it great?

-Raise the roof. -Clever.

-You can be a mule.
-[ Chuckles ]

But you know what's
particularly good about this?

It has a little flexibility,
so it feels soft on the bone.

Alright, Barb,
I'm going shopping later.

I'll meet you at the store
at 7:00.

-Great. -Kim, how much is it?

It's $9.99.
Let me get you some samples.

That's for you, Robert.
Thank you.

One for you, Lori. Thank you.

Mr. Wonderful. My mom said
you better be nice to me.

Oh, don't worry.
Herjavec: So clever.

And, Mark,
so nice to meet you.
Thank you. Appreciate it.

Herjavec: Kim, it's so clever.
How did you come up with it?

So, the idea came to me
in a dream,

but the truth of the matter is
I had this boyfriend,

and when we broke up,
I had to carry my own groceries.

[ Laughter ]

I really think
that your subconscious

finds the answers for you,
and it appeared in a dream.

Okay, Kim, I have a dream
that you have sales

because you're asking me
to give you $225,000, 15%.

Imputes a $1.5 million
valuation.

I'm dreaming that's crazy.

Over the course of my life,
the lifetime of Click & Carry,

I have about $625,000 in sales,
and it is not my only design.

I have so many other inventions
ready to go --

In the last 12 months, how much
did you sell in the last --
$70,000.

How long
have you been selling it?

Five years, but, I mean, listen,

if I had the opportunity
to do this full-time,

I have a million ideas
ready to go.
What do you do full time?

So I'm in
the medical-device industry.

I'm good at sales,
but it's not my passion.

This is my passion.

What does it cost you
to make it?

It's about $1.85 a unit.

By the way,
this is my seventh time here

trying to get on your show.

Wow.

You know, Kim, you've proven
there's demand for the product.

It's been around for years.

You have a full-time job,

and I don't blame you for that,

'cause you have to
take care of yourself,

and you're doing that. Right.

But this is not a company.

It's a hobby,
and it's an interesting one.

I don't want it to be
just a hobby, Mr. Wonderful.

No, I get --
I know what you want,

but you're asking me
to pay you a valuation

of a million-and-a-half dollars

for a product that is probably

in the eighth inning
of its current life.

It's not in the eighth inning.
Are you kidding me?

So, so many states --
Well, products
have life cycles.

No, but listen.

Imagine what I could do
if I had focused advertising,

if I had influencers,
mom bloggers,

if I had do-it-yourselfers?

Kim, you've done an amazing job.
I applaud you.
Thank you.

You're hustling this thing,
you're working full-time,

but you've got to really hustle

and sell a lot of these for $9.

I hope you turn
the corner on it.

It's just not for me. I'm out.

Thank you for your time.

Listen, every inventor
is a dreamer,

and every inventor
has the same type of M. O.

To their personality --

"Everybody's gonna love it.
Everybody needs it."

It's that dreamer
that makes you go.

But I don't think
it's going to be

the right investment for me.

Your ask is too big

for where I think
we'll need to go,

so I'm sorry.

I'm out.

Thank you, Lori.
I appreciate it.

Kim, you should've come out here

with 20 grand or $50,000
or something.

$225,000 for this $9 item,

it's so hard to make
your money back as an investor

and go down that road.

I wish you the best. I'm out.

I believe
that Mr. Wonderful's wrong.

This thing
is gonna be everywhere.

This is the next umbrella.
-Can I ask you something?

You seem so very nervous here.
-Sorry.

No, you don't have to apologize.
That can be a great asset.

You know,
it gets you to do a lot

or it could really
drive people crazy.

So, what percentage
of your customers

actually come back and reorder,
would you say?

Oh, I would say
a good 70% of them.
That's a very good sign.

Would you be willing to sell
your whole business?

♪♪

Narrator: Three Sharks are out.

Barbara may be interested

in Kim's bag-carrying aid,
Click & Carry,

but has a big question for her.

Would you be willing to
sell your whole business?

No, I-I would

if I would be able to
at least maintain

a certain percentage
and work for the company.

This is my baby.

I really have
so many other amazing ideas.

So, I'm gonna make you
an offer that --

I don't mean it
to insult you, alright?

But I see it -- it's a simple,
low-price product

that takes a lot of maintenance,

constant marketing,
constant pushing.

What if I reversed it
and offered you $225,000,

but you kept 15% and I took 85%?

No.

Not a possibility.

It is not. Kim, are you sure?

Listen, this thing
is something special.

Maybe you don't see
the spark now, but --

It's not even an issue
of special, right?

You're special, right?
Thank you.

You fought through. You went --

How many times did you audition
for "Shark t*nk"?
Seven times.

-That's crazy, right?
-Good for you.

But it shows
where your heart's at

and where your head's at, right?

You're an inventor.
You're a dreamer -- literally.
Right.

That's the challenge, right?

Somebody's gonna have to run
this business for you.

I would certainly be open
to that.

I would be open
to bringing in a CEO.

Normally, I hate Barbara deals,
but I like this one.

Well, because it looks
a little greedy.

That's why you like it.
No, it doesn't.
Not in this case.

You are not an operator, Kim,
period.

Why do you say that to her?
She got it to this point.
What do you mean?

Kim, that's not
fair to you.
It's true. It's true.

Look, I love Barbara.
That's a crazy offer.

You're a fighter.

You've set a record
on "Shark t*nk."
[ Chuckles ]

No one has ever applied
seven times and gotten here.
What does that have to do
with the product?

Are you gonna fight
all those years

and all that work...
What's that?

...to give up


I-I can't. I-I really know
I have something here.

It's not a business.
It's a product.

For now. [ Chuckles ]

Mark is left.

Yeah, I'll do that. Yeah.

So here's what we're thinking.

Okay.

What we're willing to do
is come in together

for the $225,000... Okay.

...but we want 40%
of the company.

Now, we'll figure out
the operations

and the inventory.

You focus on
creating new products.

Which you have to bring to us.

♪♪

Yes. Yes. Yes.

Deal. And yes.

[ Laughs ]

I am so excited.

You were the Shark I wanted.

-Oh, I appreciate that.
-I am so happy.

Thank you, sweetie.
We're happy for you.
Thank you so much.

Thank you. Thank you so much.

Thank you.

You did a great job.

Oh, thank you so much, Barbara.

I'm gonna get you a massage
once a week.

[ Laughter ]

And Mr. Wonderful,
thanks for being nice.

Greiner: Eh. Kind of.

I'm so misunderstood, Kim.

[ Laughs ]

Meckwood:
I'm in charge of Click & Carry,

and I can invent

all these amazing new items
to help people,

and I get to
work with Barbara and Mark.

I am the winner.

Seven years in the making
[Chuckles] so paid off.

[ Exhales sharply ]

♪♪

In the face of incredible change
and hardship

like we have right now,

you have to pivot.

You've got to find
the path to success.

Change is inevitable,

but our "Shark t*nk" companies
have continued to impress us

on how they've been able to
adapt in this challenging time.

Rossiter Lewis:
Overnight, our over 500 business
owners lost their livelihoods,

but we had an idea.

We launched
virtual flower arranging events

and sold out in 24 hours.

We're now hosting
thousands of people,

allowing our business owners
to be thriving.

We know that the office
will look very different
when this is all over,

and there will be a need
for employers and visitors

to access PPE.

Bolos: So we partnered with
a local design firm

to offer the world's first
glass-mounted PPE station.

Childcare is a must
for working families

and to reopen this economy.

We launched
a new learning platform

to help schools shift
to online learning.

At a time that we can't gather
for funerals,

we're humbled
to offer communities

one of the only digital-first
grieving experiences

to celebrate someone's life
during these challenging times.

Lomac: We took this opportunity
to launch

the Cousins Maine Lobster
mobile app

for all of our franchisees
throughout the country.

Tselikis: Instead of
event-driven business,

we now take our trucks to
neighborhoods and communities.

We've had to focus on
opening ourselves

to new points of distribution --

restaurants with takeout
to specialty groceries --

and we're also offering pallet
discounts on our product.

We've pivoted our farm creamery

into a full-service
drive-through farmer's market,

allowing our community
a safer way to shop

than in crowded grocery stores.

Sean: During
the stay-at-home orders,

our large-group scavenger and
treasure hunts weren't possible,

so we launched the Adventure
Hunt Quarantine Challenge

to help people have some fun
and stay active at home.

Here at Wine & Design,

we're selling paint kits
and offering virtual classes.

It's actually helping
our franchisees

keep their doors open.

We're helping couples
get married online

with a directory of services
like videographers, florists,

and home-decoration kits.

Everyone's stuck at home

trying to learn
how to cut their own hair.

We've done eight times
the amount of sales

that we normally do.

But it's about giving back,
so we've hired over 50 barbers,

we would give them some income

in exchange
for social-media content.

This pandemic forced me
to close my physical locations,

so I took my gyms online,

and business has been
better than ever.

Whoo-hoo!
That's what I'm talking about!

Krause: In order to stay open,

Scrub Daddy has had to change
every aspect of its business,

including temperature checks,
wearing masks,

and safe distancing.

The result has been a happy
and safe work force.

Under the Weather has created
a new health-care line,

including
the brand-new IntubationPod

which protects first responders
and medical workers

from airborne contagions.

You'll never succeed at business
unless you welcome change.

Herjavec:
You've got to adapt to survive.

Don't be a dinosaur.

Not many of those around.

Greiner:
The more creative you are,

the better your chances
to stay successful.

As we emerge from
the pandemic of 2020,

there's gonna be two types
of companies --

those that think that
they can do business the same

and those that are agile
and adaptive

and realize
the world has changed,

and this is when we step up,
this is when we innovate,

this is when we create.

Narrator:
Next up is a way to engage
children using technology.

♪♪

♪♪

My name is Dayu,
and I'm a technologist.

My name is Chris,
and I'm a toy maker.

My name is William,
and I'm an educator.

Together, we're the founders
of Pillar Learning...

Together: The creators of Codi.

And we're asking for $500,000
for 10% of our company.

Like most parents, I'm concerned
about too much screen time,

but it was so hard to keep my


with anything else.

It's crucial for a child
to be exposed to great content,

especially content that supports
social and emotional learning.

Social robots have shown to be
more engaging for children,

and they avoid all the negatives
of a screen.

That's why we created Codi,

a fun and educational
storytelling robot

built on modern
smart-home technology.

Codi is engaging, beneficial,

and, let's face it,
incredibly cute.

Codi's growing library
includes 130 stories

with age-appropriate
recommendations,


that make your kids move,

and even a slow playlist
for calming down or sleep.

Plus, Codi can respond
to simple questions

designed just for kids,

and parents can control
and monitor all of this

from the Codi app.

Don't our children deserve the
best in smart-home technology

in a package that's designed
just for them?

So join us in bringing Codi
into every child's home.

I've got a lot of songs
and stories for us to hear.

Let's get started.

We've got some samples
to pass out to y'all.

So, here you go, Robert.
You can grab the monkey.

-Alright. Is this Lori's? -Yeah.

-Yes. [ Chuckles ] -Lori.

-[ Laughs ] -Thank you.

Kevin, we're gonna give you
this one here.

-Monkey. [ Laughs ] -Thank you.

-Why do I get a monkey?
-[ Laughs ]

Yang: It might be a good idea
to show a brief video

of how Codi is actually getting
used in a real family.
Greiner: Okay.

Man: Near a deep, dark forest,
not far from a tiny village...

♪ Got a plan to take a stand ♪

♪ Before a sticky situation
gets out of hand ♪

♪ So close your eye-- ♪

Boys, it's time to come down
for dinner.

-We're coming right down.
-That's cool.

-♪ Clean up everywhere ♪
-[ Chuckles ]

You did an awesome job
cleaning up.

See you later!

I don't get
the interactive piece.

For example, in that video,

the boy was being congratulated
for cleaning up.

How does the child interact
and get a conversation,

a sociability back and forth?

So, the parent would actually
control through the app,

and there will be different
steps for each habit.

So it's time
to start cleaning up,

and whenever
they're done with it,

the mom or the dad
could press the button,

say they're done, and
that's when it gives them the --

-So they have to police it?
-Exactly.

And what's the age target
for Codi?

Children ages 1 to 7 years old.

What does Codi cost?

Costs the customer $99.99
in retail,

and the actual cost is $25.76
for us to manufacture.

That's not bad.
How many have you sold?

We've sold
approximately 2,500 units.
Wow.

We've done $260,000 in sales

selling on our own website
and Amazon.

We started selling
in November of last year,

and we started our first
deliveries to customers

in December for the holidays.

How are you
getting it out there?

Right now, we're primarily using
direct advertising

through Facebook
and Instagram ads.


have seen our ads already.

We're roughly making
a 10% margin,

including customer-acquisition
cost, as well.

How do I get new stories?
Is it free downloads?

It's no charge
for all the content

that we have on Codi right now.

Although,
by the end of this year,

we do want to test out
a paid-content model.

What's your background?

So, I grew up with technology.

I went to Stanford
for my undergrad,

and I joined a top social-
and mobile-gaming company

where I launched products
that reached millions of people,

and I got my MBA
from Wharton afterwards,

and I spent two years
at the Boston Consulting Group,

and that's where I really
refined my business acumen,

operation strategy --
So you have no credibility
is what you're saying.

[ Laughter ]
Not at all.
Not at all.

-So basically a real slacker.
-Yeah, pretty, you know --

I could do better.
I could do better.

-Yeah, I mean, you know.
-And Chris and William?

I went to Stanford with Dayu.

I studied international
relations and Chinese.

After graduating from Stanford,
I got into the toy industry,

I brought thousands of toys
to market,

from concept to shipment.

I actually went to high school
with Dayu,

and after I graduated
from UC Berkeley,

I worked in international
curriculum design

as well as education consulting.

So as I was working with
all those students,

I saw there were gaps
in their learning --

not just when it came to
English or STEM subjects,

but, really, when it came to
social and emotional learning.

So right after that,
I decided to change careers

and find where the roots
of those gaps were,

and I became
a kindergarten teacher

in Washington, D. C.,
for two years.
Good for you.

So, actually, on Sunday,

I graduate from Stanford,
as well...

Congrats.
...with a master's
in education.

Thank you.

This category is, uh, very,
very competitive because --

Brutally competitive.

I mean, if you could get a child
to play with this

for even 12 months,
I'd be amazed,

'cause you don't have
that data yet, right?

Herjavec: Chris,
my challenge with it is,

like, if I took this home
right now,

my twins would absolutely
adore it for two hours.

I guess what
I'm struggling with is,

is the audio component
of the content

enough to continually stimulate
the kids?

Because, visually,
nothing changes.

There's been a lot
of research out there

showing that a social robot,
which is what this is,

or some kind of, you know,
smart-toy device,

is more engaging than even
animation sometimes in a TV.

Parents have been telling us,
"This is amazing.

My child hasn't used her tablet
last week.

My child is finally
going to sleep by herself."

But you guys know what
your competition is, right?

Amazon is already working on
Alexa for kids, right?

And you've seen some of it,
I'm sure.

That's your competition,

and that's big companies
competing with you.

Now it's just a question
of form factor.

Form factor is really
your only true differentiation,

but other people are gonna
come up with "cute"

the minute they see that this
is having the success it is.

Now what happens to you?

How do you guys
compete with that?

I would say
other than a technology,

we really have this human touch.

So every interaction
and every story you're hearing,

Codi is directly acted
by a professional voice actor.

We really want Codi or our
products to be in every home.

So retail is important.

So you want to be in Walmart,

you want to be Target, wherever.

Exactly, and if we don't
make money, that's fine.

Because if you're gonna sell it
at $99 retail,

your margins drop like a rock.

We already have a road map

for cost reduction of 10% to 15%
within the next year

with no changes to the product.

Greiner: Listen,
you are brilliant guys.

What worries me is
the competition

and the cost are brutal.

I'm sorry. I'm out.

Guys, I think you've done
an amazing job

from a product-management
perspective.

But at the end of the day,

I just worry that the kids
are gonna get bored

of the actual
delivery platform --

the hardware Codi.

When you first came out,
I thought it was super cute,

but I got to tell you
what I thought.

I thought that
this was a screen,

that the screen would change.
-Oh.

I worry about the interactivity

with all the stimulus that kids
have today with the iPad.

I'm out.

You have the right combination
of brain power here

to pull out a product like this
and make it work,

but I don't feel
it's ever gonna make money,

and so for that reason, I'm out.

Cuban: I love your execution.

I'm still not sold on the scale,

and you guys
haven't convinced me.

And so for those reasons,
I'm out.

O'Leary: I've often told people

that if you've done something
bad here on Earth,

you go to Hell and you work in
the toy industry down there.

That's what happens.
Oh, it's not that bad.

It's pretty bad.
It's pretty bad.

Both Google and Amazon have
product coming in this category.

I think it's a slaughter fest.

I mean, you guys are going into
a battle from Hell.

I'm out.

So, next year, we're projecting
$16 million in revenue.

That's the sale
of 240,000 Codis.

-But what changes?
-Why do you project that?

'Cause that's pretty
pie-in-the-sky.

Yes, it is --
And why would you say that
after every Shark is out?

That's a --
It is an extremely
ambitious goal,

but we're an ambitious company.

But, Chris, how are you
gonna fund that?

Like, the amount of inventory
and cost to do that...
Sure.

So, I have
a very good relationship

with our manufacturer.

They're actually our biggest
investor in our company,

and so our incentives
are highly aligned.

I'd like to start
as a direct-import program,

and we would be getting
P. O. s then

directly from these retailers,

and I would be servicing them
as direct imports

selling straight to --

Guys, it's too late.
We're all out.

-That's interesting.
-We're done.

Yeah, guys.

Herjavec:
So, you would bring them in

and you would sell
directly to them?

Effectively,
you're gonna build to order?

Right.
Yeah, and so, Mark,
this is how you can help.

You can help us
with your connections,

you can help us get into --

accelerate
these retail discussions --

Guys, we've told you
all the reasons it doesn't work,

but I got to tell you,

every time
we've given you a reason,

you -- you have
a good answer.
A good answer.

I don't know
if I believe your answer.
You've thought it through.
That's not the issue, right?

And I don't really believe
in the form factor,

but, man, you guys are great.

I mean, it's like the dream team
of toy product.

Guys, it was very close.
Didn't happen.

We wish you the best.

You got to turn around --

Hang on!

I'm back in.

What?

♪♪

♪♪

Narrator: All Sharks are out,

but it seems Robert
has had a change of heart

about educational robot company
Pillar Learning.

I'll make you an offer.
I'm back in.

-Go. -What?

-I want to make an offer.
-There you go. Who knew?

I have no idea whether
it's gonna work or not.

I don't believe in
the form factor,

but I believe in you guys.

I think you'll figure it out.

But I got to make
an aggressive offer

because I see it as a huge risk.

It's an all-or-nothing.
Corcoran: [ Chuckles ]

I'll give you the $500,000
for 25%.

Yowza!

You know what? Codi's freaking.

So, we want to make it fair
for our investors, as well --

our current investors,
and also, obviously --

you know we want some more
equity skin in the game

so we continue to be motivated.

So would you be okay with 15%?

No. No, I got to tell you, man,
like, I --

Well -- Or if we can meet
in the middle.

If we can meet in the middle,
right?

You know, just somewhere in
the middle, give us something,

and we can make it work.

I like the end I'm at.

I mean, seriously, I think...
I was out.

It's an aggressive offer,
absolutely,

but it's a pure flyer.

I've done well
with these things before.

It's $500,000 for 25%.

It's what
I feel comfortable with.

Yep. Yep.

How about 20%?

No, no. It's $500,000 for 25%.

I mean, you guys
are the three owners.

Talk amongst yourselves.
-[ Chuckles ]

♪♪

Alright, Robert, you got a deal.

-Wow. -Alright.

Wow.

-Thanks so much, Robert.
-Congrats. Yeah.

-Thank you. -Yeah. Congrats.

Thank you, thank you, thank you.

-Congrats, guys. Good job.
-Thank you so much.

-Thank you. Thank you. -Bye-bye.

Yang:
The decision to give up 25%
was definitely difficult,

but we're getting a deal
with Robert,

who we believe can bring
a lot of value for us.

Oh, man, I can't believe
everyone went out.

We didn't expect him
to drop out first

before working with us,

but, you know, we're really glad

that, you know, he had faith
to come back.

Yeah! Yeah, we got it! Yeah!

We got it. Yes.

When you come to the Shark t*nk,

you're not dead in the water

until you're flushed out
to the sea.

Surprise ending. My God. Whew!

♪♪

♪♪