01x10 - Episode 111

[bunniefuu]

Tonight,

hopeful entrepreneurs

- who believe they have
- the next big business idea

will enter the shark t*nk

seeking the financial backing

to make their dreams

come true.

Is this a proprietary product?

Can you patent it?

Yes, um, the process.

No. the process, not the poop.

You can't patent poop.

The sharks

are ready to invest

using their own money,

but only for the right person

with the right idea.

You've basically thrown away



Nothing I have done here

is a waste.

But first, the entrepreneurs

must convince a shark

to invest the full amount

they're asking for

- or they'll walk away
- with nothing.

- He told you the truth,
- and you slaughtered him.

I'm ashamed of you.

Who are the sharks?

Kevin O'Leary

is a venture capitalist

- who started a software business
- in his basement,

which he eventually sold

for $3.2 billion.

Barbara corcoran

is a fiery real estate mogul

who turned a $1,000 loan

into an empire

worth hundreds of millions.

- Kevin harrington
- is the king of infomercials.

His genius marketing

of products

- has amassed
- billions of dollars in sales.

- Daymond John
- turned rags to riches

with his clothing brand fubu,

which has grossed

over $6 billion.

And Robert herjavec,

a technology tycoon

who sold his Internet companies

for over $350 million.

♪♪♪

♪ the best things

in life are free ♪

♪ but that ain't really

good enough for me ♪

♪ I need money ♪

♪ that's what I want ♪

♪ that's what I want ♪

♪ that's what I want ♪

♪ that's what I want ♪

♪ that's what I want ♪

♪ what I want ♪

♪ that's what I want ♪

First into the shark t*nk

are Michele and melisa,

sisters

with a homegrown business

designed to send a little fun.

♪♪♪

I'm Michele sipolt kapustka.

And I'm melisa moroko.

You have a great day.

We're sisters, we're neighbors

and we're business partners

in a company called

sendaball inc.

We operate sendaball

- out of our homes
- in Chicago, Illinois...

Out of Michele's garage.

This is our operation.

This really is

a family affair.

We have seven kids between us,

and after school,

the boys pitch in

for some extra cash.

Excellent.

- If we could just get a boost
- from the sharks,

- we could mass produce,
- automate a little bit more,

move into a real facility

and maybe get those kids

off the payroll.

- Who do you want
- to send the ball to?

- We are slammed
- with orders.

We need the sharks,

and we need them now.

♪♪♪

Hi. my name is

Michele sipolt kapustka.

This is my sister

melisa moroko.

We have a company called

sendaball,

and we're here

asking for $86,000

in exchange for 20%

of our company.

Sendaball is an Internet-based

greeting company.

We ship fully inflated

play balls through the mail--

no box...

- No packaging,
- no bubble wrap,

- delivered by
- your regular mailman.

Just like an envelope,

the stamps and the address

go right on the ball,

and the kicker is

so does the greeting,

like "have a ball

on your birthday"...

Or...

Or "bounce back soon."

Getting a ball in the mail

is so much fun that most people

who get a ball in the mail

order a ball for someone else

within 48 hours.

- And that's how we've been able
- to grow our business.

We've been able to ship double

the number of balls each year

since we started.

But the outsourced manufacturing

for these balls

just can't keep up

with what we're doing,

so what we need to do is bring

the manufacturing of these balls

into our little place in Chicago

so that we can fulfill

the orders.

We just can't seem to fill

the orders that we're getting.

We need the specialized

equipment on-site

in our sendaball headquarters.

Michele, why $86,000?

Why not--

like, it seems like

such an oddball...

Oh!

Such an oddball number.

We come from

a pretty lean growing up,

and you only ask

for what you really need.

So...

No, you ask for more.

Don't listen to him.

So I-i have, um, outs--

I have done so much research

on the equipment that I need

that I know exactly the amount

of money it will take

to--to build this machine

that will make us able

to print logos on the ball.

Hence the $86,000.

Right.

What are your total sales?

Um, our sales

have been $100,000 a year.

Walk us through an order.

So I call you up...

- Well, you would call me up,
- and you would say,

- "I want to send a ball
- to Barbara for her birthday."

Okay, costs me how much?

Costs you how much?

It costs--

well, it costs you $20.

Yeah.

It costs me about $5 to get it

in the mail to you.

So you make $15.

Yes.

Michele, how did you

come up with it?

- I'm standing in line
- at the post office,

- and this guy behind me said,
- "hey, what is that?"

And I said, "oh, it's a ball.

I'm mailing it

for my girlfriend,"

and he said, "could you mail one

for me? Here's 5 bucks."

- And then I call my sister
- when I get home, and I said,

"some guy just gave me 5 bucks

to mail a ball for him."

And she's like, "hello!

We're on to something."

Eureka!

- The postman must hate you. - Actually,
- the postman loves us.

- When we first started this
- business, we went to them

and said, "hey, do you mind?"

And they said,

"revenue is revenue."

Revenue.

Where are you guys

making 'em now?

It's on her property.

In my garage.

Your garage?

- Is that - where you blow the balls up?
- Yes.

Okay.

She has four boys.

Labor laws, perfectly fine.

- So you have your four
- boys blowing these balls up

after school?

Yes. they--they have to--

it's part of their chores.

It's sl*ve labor.

It is not!

- They don't blow
- all of them up.

If I just happen to have

a big order, I'll say,

"get your body in there

"and give me--fill that bin,

- and then I'll take you
- to soccer."

- You know what? For a mom
- to tell her four boys that,

she's got balls.

I do have...

I love the sl*ve labor part.

That's good.

It's not sl*ve labor.

- It's great. It's low cost.
- You can b*at them with a stick.

- It's not! Low cost? You know
- what I have to pay for that?

- You don't have to
- employ them.

- You don't have
- to pay that right now.

- That's not a cost you're
- incurring at the moment.

- No, they do get paid.
- They do get paid.

How much?

They get paid... I am

going to hell in a handbasket.

How much?

The little guys get $6 an hour

and the big guys get $8 an hour.

Oh, that's not bad.

So, Michele, if you moved out of

the house and rented an office

and you got equipment...

Yes.

And you had to pay yourself

and melisa, how big would--

- yeah.
- But she doesn't do anything.

- Yeah, melisa,
- what are you doing?

- How big would
- the business hav--

how big would the business have

to be for you to make money?

Well, we make money now.

Yeah, but you make money

because you're not

paying yourself...

No, because--

- you're not paying rent
- and you're not paying the kids.

- Well, the kids get paid.
- They really do,

- and that's really not a-- - no, but
seriously, - would the business have to do

half a million a year

for you to make a--

- no, I don't think so. Right now
- we ship 50 to 75 balls a day.

If we ship a hundred or more

balls a day, it's all profit.

Well, ladies, look, I think

it's a very interesting story.

Roughly $33,000.

Thank you.

No question about it.

- You're very pleasant
- to listen to, that's true.

- And I would never pay
- your sister any money.

- Get her for free. But, you know,
- as an investment,

it's, um, it's challenging.

I actually don't want to be

in the ball business.

Good luck with this,

but I'm out.

I'm not sure

you even need a partner.

Yeah.

Have you been to the bank

to try to get a loan?

Yeah, we have.

And what happened?

You know, one of the things

that the bank didn't bring

to the party were

what you guys have.

Was what you guys have.

Really?

So what exactly would

we bring to the party

- other than our hard, cold cash?
- You think we know a lot

about balls, shipping?

We think you know

a lot of people.

Barbara, you know

about balls.

Stop this.

You can't help yourself.

I know.

You guys,

what an entrepreneurial

story. I love it.

But there's nothing proprietary

about this, unfortunately.

I mean, anybody can get a ball

and ship it.

So as an investment,

I'm gonna be out.

Okay.

Okay. thank you.

Yeah, I feel the same.

- I have so much respect
- for what you guys are doing.

But you don't need me

as a partner.

I don't think it would be

advantageous to you. I'm out.

So what have we got left?

Uh, ladies, I-i, uh,

really enjoyed it. Uh...

Thank you.

Uh, very, very, uh,

inspirational story.

Maybe you'll send a ball

someday.

I will send a ball.

- And if you call me, I will give
- you the coupon code.

- And I had a ball,
- but I'm out.

- Thank you.
- Okay.

- Four sharks are out.
- Barbara is Michele and melisa's

last chance to bounce back

and score a deal.

I've changed my mind

back and forth

since you stepped

onto that stage there.

Oh.

You are definitely

gonna be successful.

So what are you doing?

I-I'm still changing my mind.

In fact, you know what?

I'm out.

And you know why I'm out?

- Because I don't want you hating
- me a year from now as you're

paying me off, and that's

exactly where it would go.

I hate you now.

I mean it.

We don't hate anyone.

You don't need me.

You're fine without me.

Ladies, very impressive.

Your honesty and your fun

shone brightly through.

Oh, come on.

- Thank you.
- Everyone should be this way.

- I feel like we're family. - Yeah,
- we're practically related.

- We're practically related.
- So you come over,

you got--you can stay

in my camper.

- Slavic, slavic. We all speak
- the same language.

But you can tell

we live and breathe balls...

Live and breathe balls.



seven days a week.

Stop it.

Well, good luck to you.

- Ladies, you brighten up our day. - Thank you.
- Thank you.

Thank you so much.

It was nice to meet 'em.

Yeah.

What a story.

Well, we had a ball.

That was fun.

Yeah, we had a ball.

Nice, nice ladies.

We got sh*t down

by the sharks.

- But that's okay, 'cause we're
- gonna bounce back soon.

- We have a ball business. - We're not selling pacemakers.
- We're gonna be fine.

And watched as he turned down

the largest offer

in "shark t*nk" history.

I'll make you a better offer.

I'll give you $1 million

for 100% of the patent.

I would have to say no.

Thank you.

Lifebelt, in short, is

an educational safety device

- that prevents people
- from starting their car...

Until they've buckled

their seat belt.

- Since I got the opportunity
- to pitch to the sharks,

- I've been on a mission
- to get lifebelt in front

of as many automotive retailers

across the country as possible.

- Today we're in Houston, Texas,
- meeting with

- the Gillman auto group,
- which is one of the oldest

and most respected automobile

groups in the country.

It's a pleasure to have

a product like this

in our dealerships.

- The deal that I'm putting
- together today

with Gillman automotive is

a multimillion-dollar deal.

Appreciate it again.

Thank you so much

for this opportunity.

All right, our pleasure.

- The Gillman automotive group is
- going to be offering lifebelt

- to all their customers
- in both new and used cars

at all of their dealerships.

I bought the lifebelt

because I wanted to make sure

that Brooke always wore

her seat belt,

and this is about the only way

I'd be sure of that.

- Thank you. You might save
- my daughter's life one day.

- These deals
- are just the beginning.

- Lifebelt will have sales
- in excess of $10 million

by march, and we're

only going up from there.

Next up is Mark burginger,

who hopes to share

his love of architecture

and inspire children

with his product.

♪♪♪

Hi. my name is Mark burginger.

I'm from bend, Oregon,

and I'm the creator of qubits,

the construction toy for kids.

I work as an architect,

but like many people,

I played with construction toys

when I was a kid,

and I think it influenced me

- to become an architect
- in the first place.

This is a qubit, and it's able

to build structures

by combining with other qubits.

Currently,

with the slow economy,

uh, architectural jobs

are hard to come by.

Once you start

to accumulate some debt,

- it's a load on me,
- it puts a load on my wife,

- and my kids, even,
- are affected by that.

So what colors are you guys

working on now?

I'm semi-employed.

I've got $60,000 worth of debt.

I've got a garage

full of product.

- Here.
- Put some in here.

- This is my last hope.
- It really is.

♪♪♪

Hi. my name is

Mark burginger.

My invention is

a construction toy

called qubits.

I'm here today to secure

a $90,000 investment

in exchange for a 51%

controlling interest

of our family company.

So what's so unique

about qubits?

Well, qubits is

a small, flexible toy

that can allow you

to create curved shapes,

unlike any other toy

in the world.

These toys are quite easy

to put together,

as you just secure 'em

with a connector.

Then you could use a panel

perhaps,

and there you go.

- You've already started building
- something. it's that simple.

- Can we see these?
- Could you toss something to us

- so we could feel it,
- put it in our hand?

We're too far away for us

to appreciate it, I'm sure.

- There's a part of me
- that's a little suspicious.

You seem like a credible guy.

It's very rare

that somebody comes out here

and voluntarily says,

"I'll give up 51%,

control of my company."

Why?

Well,

there's a couple of reasons.

One, I'm smart.

Number two,

I want to put together

the best board of directors

anyone could ever imagine

for this company,

and this is one way

of doing it.

- And--
- do you have a patent on this?

Yes, I do.

Are there other toys

that bend and twist like this?

No, not to my knowledge.

Mark, I'm so curious

how you came up with this.

- It was a creative endeavor
- that I've had in my mind

for a long time.

Once you create a form with this

type of geometry, they can

create natural structures

that relate directly to science.

Mark, how long have you been

working with qubits?

How long has this been

on the market?

It's been on the market

since November '07.

Okay. what are the sales?

I've managed to sell about

$8,000 worth of the toy.

Sorry, Mark.

$8,000 or $80,000?



But let's bring

the white elephant in the room,

the 9,000-pound gorilla.

The market is owned by lego.

That's the construction toy

of the past, and so far,

it looks like, the future,

because it has

all the market share.

The trouble with this business--

and yes, it's a large business,

because every child likes

to play with these blocks--

is getting distribution.

Tell me that you've gone to see

one of the large toy companies

with this already.

Have you seen them?

No. I have--

I have not approached

a large toy company.

- How much of your own money
- have you put into this?

I have invested $60,000.

Of your own money?

Quite frankly,

I had to borrow much of it.

- Given the resources you have
- right now,

there's only one strategy.

This product either has

the merits of support by

a toy company or it doesn't.

There are four toy companies.

So that's four phone calls.

You can afford to do that.

They'll either like it

or they won't.

Till you do it, there's

no opportunity as an investment.

I'm out.

Mark,

what makes it hard is,

you've basically

thrown away 60 grand.

I don't believe that.

- It's a waste, Mark.
- It's not a waste.

Sure, it's a waste, Mark.

Nothing I have done here

is a waste.

Mark, one of the greatest thing

you'll learn about sales is,

- you gotta know
- where not to waste your time.

I'm out.

I think, right now,

you're competing

in a huge, huge industry,

up against the big boys

that have spent

tens of millions of dollars

in creating brands.

I don't see how you can compete

with them,

so I'm out, Mark.

And, Mark, I'm gonna join that

and say I'm out as well.

Four sharks are out.

Daymond is Mark's last chance

to save his toy company.

Um...

♪♪♪

Mark only has one sh*t left

to save his business.

Um...

- There are things
- that concern me.

- I do not know the toy market
- that well,

but...

I like the fact

that you came in here

offering 51% for $90,000.

Thank you.

You're an educated man,

you have drive,

and I like the way this

has branding all over it.

I'm into brands.

So here's what I'm gonna do.

I'll be a partner with you...



but contingent

on us calling the top four guys

and working a deal with them.

Okay? do you accept?

Yes, I do accept.

Okay. we're in business.

Fantastic.

Okay, man.

Thank you, daymond.

Thank you.

To get a dynamic investor

like daymond John--

he'll be able to help me

land a bigger deal

than I could on my own.

This is awesome.

My--my kids, my family--

they're all gonna be ecstatic.

Good job, buddy.

Got you guys!

He was waiting in the weeds.

Nicely done.

You shrewd little weasel.

- If he gets the deal,
- you got the deal.

- If he gets the deal, I get
- the deal. I don't, I don't.

- The bad news may be you make
- the four calls and they all say,

- "we have no interest
- in competing in this space."

- Then he's gonna get the answer
- right away, and he's not

- gonna get the runaround
- from these companies.

You got it.

- He's got a free option - is what he got.
- Yeah, that was a good deal.

- Yeah. - I wish I would have thought
- of that.

♪♪♪

I'm Nicole Jones

from Chicago, Illinois.

- I've been in love
- for a very long time--

in love with shoes.

And my business is called

pillars of slippers.

♪♪♪

Pillars of slippers

is a shoe-shopping experience.

I bring shoes

to the sophisticated shopper

in the comfort of her home.

And I'm not just about

bringing shoes to your house.

When I come over,

I'm bringing a party.

I roll out the pink carpet,

chocolate, champagne...

- I throw the ladies
- into a shoe frenzy.

Welcome to

the pillars of slippers

shoe party!

Everyone that attends my parties

love it.

And more importantly,

I sell a lot of shoes.

I need help from the sharks

to bring my one-woman show

to women all over America.

♪♪♪

♪ I feel ♪

♪ I feel good in my shoes ♪

Whoo!

♪ I work in my shoes,

I go shop in my shoes ♪

♪ I go out in my shoes ♪

♪ I'm loving my shoes ♪

♪ people talk about shoes ♪

♪ you can walk in my shoes ♪

Whoo!

Yeah!

Yeah!

My name is Nicole Jones,

and I'm here today to present

pillars of slippers.

I would like to request

from you $150,000

in return of a 15% equity

in this business.

Pillars of slippers is kinda

like a tupperware party,

but we are not selling

containers.

We are instead selling

what women love--shoes!

I am the shoe professa!

We bring the shoe to you--

a home-based shoe business

where women have

the opportunity

to get together

with all of their girlfriends--

roll out the pink carpet,

pop! pop! Open the champagne,

chocolate, strawberries

and all the fun things

that women love to do!

We are talking about

affordable,

fantastic,

uniquely designed shoes.

Aah!

There is projected to be,

in the U.S., 97 million women

between the ages of 18 and 64.

And guess what. They all have

but one thing in common.

They have feet, typically,

and they love shoes!

So I would like to know,

which one of you all are ready

to give me that cash?

Whoo-hoo!

Congratulations.

Very good. Very good.

Wow. that was great.

I love it.

Thank you.

You have some sales?

- I have sales
- and I have distribution.

I own a retail store in Chicago,

and right now I have

three channels of distribution.

One of them is my retail store.

The other one

is our shoe soirees

as well as our Internet sales.

Right now, in this economy,

holding on to a piece

of real estate

- is what is hurting
- our business right now.

So what I am trying to do is

build a new, successful model

- where we utilize
- the two distribution channels

- that are working successfully
- for us.

- That is selling shoes
- on the web site.

I would like to be

a wholeseller, not a retailer.

- Wait a minute. You're telling us
- your shoe store is

- going to zero.
- It's going out of business.

Is that what you're saying?

No, it's not

going out of business.

Luckily, I've been able to stay

in business, but it has been

- a hard time keeping up with
- all the expenses relating to it.

- When I look back
- at all of my financials,

- where I made
- the most of my money

- was in the two distribution
- channels--

home parties

as well as Internet sales.

So I want to redefine

my business.

- You know, I thought
- you were crazy for a minute...

- Uh-huh. - But now I'm starting
- to hear something

that makes sense to me.

You're saying brick and mortar's

- not working for you anymore.
- It's not working.

You want to sell online, and you

want to sell in a pink s.U.V.

That's correct.

So do you have

online sales today?

- Yes, I'm made $70,000
- in Internet sales

and $64,000 in home parties.

Last year?

Last year.

Together?



to come from the Internet.

Mm-hmm.

You don't need

the franchisees for that.

Right.

The other 50% is Barbara

pays you a monthly fee--

she's gonna pay an initial

licensing fee, which--

how much is that gonna be?

That's gonna be $100,000.

Wow.

So that is going to include--

sorry, Nicole. Barbara is gonna

give you $100,000 up front?

Up front. And let me

tell you what that entails.

Without selling any shoes?

- Whoa. what do they get
- for $100,000?

Their s.U.V., the wrapping

of it, their pink laptop,

- all of their materials that
- they need for their shows, the--

- n-Nicole, do you think that's
- a problem in this economy,

that women are gonna have

a challenge

finding $100,000

to buy a pink s.U.V.?

Absolutely not. This is geared

towards the professional woman

who understands this market,

understands this business.

- Does it include inventory--
- $100,000?

It does include

their initial inventory,

- their bags,
- every single thing.

But, Nicole, I can't get beyond

a woman giving you $100,000

for a gas-guzzling s.U.V.

Do--do you think that you could

refine the concept

and maybe start with

a smaller car or--or something?

Like why $100,000?

That is so much money.

Let me tell you why.

Let me tell you why, Robert.

It's important for me.

If I'm gonna build a company,

there has to be uniformity.

We have to be able

to look the same, talk the same,

be the same.

Nicole, you know,

you're really intriguing,

because you get these shafts of

white light and pure thinking

in between a wafer

of nut bar factor six.

Like, you know...

- That is so funny.
- I'm trying to decide whether you

really know what you're

doing or you're just crazy.

How many dollars

of your own cash

have you put into this idea?

Well, in my storefront,

I've put in over $200,000.

And into

the pillars of slippers,

I've put in about $60,000.

Tell me

about the parties.

What's the average

amount of sales?

It's about $725.

And typically,

the expense is about $300,

and I made about $425

off of each party.

Hey, Nicole, I really believe

that you have the ability

to go out and make yourself

a lot of money selling shoes.

Okay?

Where I have a disconnect is

you taking $100,000 from people

and showing them how to go make

hundreds of thousands.

There's no proof to me

that you can do that. I'm out.

Okay.

I-I-i love your passion,

but there's nothing there

for me either.

I would have to say, I'm out.

Nicole,

would you say you are

the ultimate shoe "doctoress"

professor?

I am the shoe professa,

Robert.

- I agree with you.
- Completely.

I think you've gone

to the top of the mountain,

and you are the best.

Thank you.

Here's the problem--the best

shoe doctor lady in the world

made $64,000

for the entire year

with these parties.

But now she's gonna ask

other women

to give her $100,000.

Your concept is ludicrous,

with all due respect,

unless you sell one.

I'm out.

You're too doggone exhausting.

You're ferocious

in your passion.

- But as a partner?
- I'd be on dr*gs.

- It's what women love. - They love the energy.
- In you.

Trust me. I'm telling you

it's what sells shoes.

No, it's a great thing,

but you're not gonna

- transfer that into people
- who are gonna pay $100,000

to get a truck and take

your shoes and go there.

It's--you're asking too much,

so I'm out.

So after listening

to you now for a while,

I'm gonna grade you

at 70% entrepreneur,



But to be successful, you need

to be 100% entrepreneur

with the elements,

the flair of nut bar--

wisps of it, essence of it.

You're too crazy.

That's the bottom line.

So look, no way I'm giving you

$150,000. I'm out.

Thanks.

Very entertaining.

Thank you.

Kevin, you are absolutely

a nut bar number ten. Okay?

And I will just tell you

that you made a big mistake,

missing out on working

with the shoe professa!

♪♪♪

We are Phillip and aida lough,

and our business is llama brew.

- Animals are a big part
- of our life,

- and we earn our living
- by putting on petting zoos

for children and fairs

and other events.

A few years ago, we had

a mountain lion att*ck

- that k*lled
- some of our livestock.

So I did some research,

and I found that llamas

were a great deterrent

to mountain lions.

So I asked my husband if we

could buy some, and we did.

- We ended up falling in love
- with our llamas.

They're wonderful animals,

- and it also inspired a great
- business opportunity.

This is Eden right here.

Eden's working right now,

giving us--

getting--getting ready to give

us some llama brew, actually.

Eventually it will be

llama brew.

- We need the sharks
- to invest in llama brew,

so we can make a living

that explores our interest

in animals, the environment

and also allows us to spend time

with our children.

♪♪♪

My name is aida camwich-lough,

and I'd like to introduce to you

my husband and my business

partner, Phillip lough.

Today we're asking

for $125,000

in exchange for 10% equity

of our eco-friendly,

green company,

llama brew.

Llama brew is an affordable

liquid organic fertilizer

that's currently being sold

for home gardening

- and also
- for commercial applications.

- This is llama brew
- right here.

And this is one of our

employees. her name is Eden.

She works 24 hours a day,



- So this is llama excrement,
- this stuff?

- Yes, it is.
- Llama doo.

Llama doo.

This is a tree that we bought,

- and it d*ed
- a week after we bought it.

I poured llama brew on it.

This is the tree today.

What makes somebody

go pick up poop

and want to make a juice

out of it?

We own llamas. We knew they

produced a fantastic fertilizer.

So it just kind of hit me--

let's liquefy and put it

in recycled bottles.

Do you do all the manufacturing

right there at your--your place?

Yes.

Right now we are

manually manufacturing.

You scoop it up?

I scoop it up from--

- scoop it up. Shovel it up. - We call
this business - green from the ground up,

because the pellets

come out green,

and we're a green company.

- What makes this better than
- other fertilizers?

Well, most fertilizers

are man-made chemicals.

Ours is not

man-made chemicals.

So this is right from the butt

to the plant?

Yes. yes.

"Butt to the bottle"

should be your motto.

Okay, so how much of this

have you sold already?

We've sold $4,000 worth.

You're telling me

your business

is worth $1.25 million,

and you've got $4,000 in sales.

You know, I could buy

a lot of llamas myself.

I could build a llama farm

with that money.

I could have a mountain

of llama crap... for less.

We have streamlined

this business

- to be the lowest overhead
- possible.

Yeah, but you're shoveling

for free.

That's correct.

- And we also have people
- that are shoveling for us.

- They're dropping at our door
- 'cause they need

to get rid of it.

Is this a patent

or proprietary product?

Can you patent this product?

Yes. we--we have, uh, filed.

We have a provisional patent.

On what?

On the process.

- The process, not the poop.
- You can't patent poop.

So is there a unique process to

take the poop and liquefy it?

Yes, there is.

No one's gonna mind the aroma?

- No.
- No, there is no aroma.

- Really?
- It's odorless?

People walk by, and they looked

and they said,

"it doesn't smell."

Now the big dollars have to be

spent on educating people.

Like, the--the process

of teaching

the average American consumer

that liquefied llama poop

is good for their garden is

gonna cost millions of dollars.

You'd have to educate people

turd by turd.

I'm out.

You know, I'm interested

in having llama manure

in my portfolio, because I can

now understand the benefits,

but $4,000 in sales

is absolutely nothing.

Of course.

I'll take you out for dinner

and spend more.

We know that that's what

your perception is, because--

it's not perception.

It's reality.

No investor in their right mind

would ever give you $125,000

for 10% of $4,000 in sales.

I'm speechless. I can't deal

with you guys because of that.

I think you made

a fatal mistake.

I'm out.

Kevin has voiced

my concerns.

It's not an investment

that--that I would make,

uh, based on all the numbers

that we've heard,

so I'm out also.

For me, the, uh, numbers

just don't add up,

as I'm sure you realize by now,

so I'm definitely out.

Phillip?

Yeah.

- What's the cost
- of a single llama?

The cost of a llama?

Yeah.

$500 to $20,000.

My kids love them.

I may buy one, but I'm not

buying this business. I'm out.

Thanks, guys.

Thank you.

Thank you.

I gotta see if it smells.

Don't eat it, Robert.

Don't open it. It smells.

- Ooh. keep it over that way. - You sure
- you want to do it?

- What are you coming
- over here for?

Come on. I'm good.

I'm cool. I'm cool.

- Actually,
- it doesn't have a bad odor.

- It's not that bad.
- Here. smell it.

It doesn't smell that bad.

With an innovative twist

to a common product that has

been around for centuries.

♪♪♪

Hi. my name is Alan Kaufman.

I'm the founder and president

of a company called nubrella.

I'm seeking

a $200,000 investment

for a 25% stake in my company.

What I'm about to show you is

a new, revolutionary

umbrella design.

We are all well-familiar

with the inverted

and breaking umbrella.

My design introduces some new,

game-changing innovations

you never would have expected

an umbrella can do.

Nubrella is impossible

to invert.

Nubrella will keep the user

significantly warmer,

as it blocks wind chill.

And I've saved the best

for last.

Nubrella can be used

completely hands-free,

even in significant winds.

I can't wait to see it.

Wow.

- Oh, I gotta see it. - Let me show you
- how it works.

And then you would

simply snap this in here.

Oh, I didn't expect that.

Can I please try that?

Absolutely.

- Do--do you have another one, - Alan?
- Yes.

- Can I try one?
- Sure.

- Now you know what
- this reminds me of?

- "I'm
- going to destroy the earth."

Alan, what does that weigh,

that umbrella?

It weighs about 2.5 pounds...

Boom!

- But when it's on your shoulders,
- you won't even feel it.

It's really light. So--

that is so funny to look at.

It's different. It's

unique. it looks good on you.

Hello, Barbara.

It's an attention-getter,

for sure.

How many have

you sold so far, Alan?

I've sold 3,000.

How do they find you to buy it?

Uh, the media picked it up,

and it's all over the world.

I get calls every single day,

and I've never spent $1

- in marketing
- or advertising this product.

- What do they sell for
- on the Internet site?

- $49.
- Yeah.

- But get this--i just sourced
- a new manufacturer,

and right now, you can buy

this product for $29.

That's better.

$29?

What's your cost on that?

My cost is $14.

Do you have any orders

on this?

I have hundreds of orders right

now that I cannot fulfill.

From what, consumers? Uh...

All from the Internet.

- So, Alan, you've sold
- 3,000 units, one at a time,

- out of your house?
- Right.

- I'm assuming
- this has a patent on it.

I do have a patent.

It's been issued a U.S. patent.

I have a patent pending

in all of Europe right now.

My goal is to build

an extreme weather gear brand.

Everybody that's bought

this product

currently owns

a regular umbrella,

- but they clearly recognize
- this product

- for more extreme weather
- conditions

and for its revolutionary

hands-free feature.

I've got people right now

riding bikes with this

all around the world.

That's a home run.

How would you ride a bike

on it?

You just strap it on,

and it will not move

in 35-mile-an-hour wind.

Are you saying it's--

it's firm?

It won't move.

Alan, what are you asking for,

for how much?

I'm looking for $200,000

for a 25% equity.

I've already put in--there's one

investor for $400,000,

and I've put in $500,000.

$900,000?

So you've got $900,000

in the ground?

$900,000 in cash.

Alan, if you've put in

$900,000 already,

why do you need

another $200,000?

I'm out of money.

That's an honest answer.

Right.

I-I like that.

I've come here

with an aggressive option

for you guys, because I've seen

what you've been doing.

So far, I've got orders

from 47 countries.

I gotta tell you,

it grows on you.

- When you first showed it
- to us,

- I thought it was funny
- and weird.

- I use it in New York, okay,
- and I've had people

- come up to me and say, "where
- did you get that?" You know?

Have you talked

to any retailers at all?

I haven't. I, you know, I--

so you have blown off

- the traditional distribution
- channel completely.

I get hundreds of inquiries,

wholesale,

from outside of the U.S.

What--what are you doing

for a living right now?

I'm doing this right now.

So you're profitable, in regards

to you paying your own bills?

No. I've been getting funded,

still, internally from family

on the thing.

Oh, they must love you.

They don't really want

to talk to me anymore.

Alan, I'm gonna, uh,

I'm gonna--

I love this guy. He's honest.

No, he's an honest guy.

- With due respect, I think
- it's a great sports umbrella.

- I think it needs - that sports angle.
- Right.

But in lieu

of the standard umbrella,

- I don't think
- it's ever gonna be a go.

- It's--it's, you know,
- I never designed this

- to really compete
- with the umbrella.

To me, it's a new line item.

- But either way,
- I'm out.

- Alan, uh, I give you
- all the credit.

You came out here, and you took

a very odd-looking thing

that made me laugh and convinced

me you've got a real business.

But as far as myself, though,

I'm out.

Alan, I-i-i like the product.

I-I always look for something

that's very unique

and nothing like it

in the marketplace,

but I have a challenge

- with the--the amount of money
- you're looking for--

uh, $200,000 for 25%.

The best deal I could

come up with would be 200 grand,

uh, for 65% of the company.

- You know what really makes
- me mad is that harrington

has his own distribution channel

with this TV stuff.

Yeah, I know.

It just really pisses me off...

Thank you.

Because I can't

compete with that.

Like, it's a real problem.

I mean...

Are--are you in?

No. I'm out.

I've made Alan an offer.

I never got a yes, a no,

a maybe, a whatever.

That's true.

I mean--

uh, well...

I guess, with, you know,

with all due respect,

- I think the equity is
- just a little bit too high.

So that's a no?

Yeah. I think

I could go as high as 35%.

Ouch.

No. that would never work

for me.

Mm-hmm.

Kevin knows how to brand you

to the everyday consumer,

and I know how to do it

through retail as well as grow

this extreme weather gear

to a bigger program.

I don't mind

getting in with Kevin,

because I think that both of us

add certain areas.

You can get both of us

for 60% of the company.

W-we'd put the $200,000 up.

You'd have 2 partners...

Right.





my television power,

together,

- to take this thing
- to the next level.

I really want you guys in.

I think you're both gonna,

you know,

- really add a considerable amount
- of value.

- Um, I think
- it's a little rich.

- Would you accept 50%
- for that price?



We said 60%.

♪♪♪

- Daymond and Kevin harrington
- have offered Alan

$200,000 for 60% of nubrella,

but Alan has countered,

only wanting to give up 50%

of his company.

Would you accept 50%

for that price?



We said 60%.

You would have to control

because it's your money at risk

with the production.

Right.



we're partners on it.



Look at these savages.

I'm about to make it rain

on him.

We would like to state it very

clearly--$200,000 for 51%...

Right.

To us, 49% to you.

- Right. what does the 51% mean
- to you? You want control.

- I really like
- these guys.

We would like to control

because our money is at risk

manufacturing and producing

the product.

Right. my concern is,

you know,

- if it's something
- that does ramp up,

- it could ne--it could need
- additional capital,

and I don't know where

that's gonna come from if--

you won't need that.

You don't think so?

You won't need it,

because, uh, as long as--

this is why I'm saying it--

if you can show me valid orders

from a retailer...

Yeah.

Then I can finance everything...

Forever.

And my role would be?

You're gonna keep running

the business, you know.

Running the business.

Alan, I can't take it anymore.

What are you gonna do?

- I don't know.
- It's a tough decision.

- It is a tough decision,
- but you gotta make it.

So, Alan...

All right, look it. I'll live

and die with you guys.

You got a deal.

We got it. Good.

- All right. Okay, good job. - Thanks, Alan.
- Okay.

Okay.

I look forward

to working with you.

Okay, buddy. Good job.

Wow.

You guys slaughtered him.

You slaughtered him.

We left him as much meat

on the bone that he could have.

You--hey.

He told you the truth,

and you used it against him.

I ashamed of you.

The guy--the guy's a worker.

I like him.

- We're gonna make a-a company
- out of this.

I probably never would have sold



if it wasn't for daymond

and Kevin.

- You know, what they--
- what they bring to the party

is really more significant to me

than the money

to make this thing happen.