01x02 - Episode 102

[bunniefuu]

These are the sharks--

five powerful self-made

investors worth billions.

Tonight they will make
or break the dreams

of hopeful entrepreneurs.

In the t*nk, the sharks
are ready to invest

using their own money,

but only for the right person

with the right idea.

Do you want to be rich or not?

I do want to be rich.

Well, let's get focused
on that, buddy.

- As of right now,
- you're nobody to everybody.

- No one can stop me from what
- I want to accomplish.

In these tough economic times,

- the sharks are the last chance
- for many entrepreneurs

- to get the financial backing
- they desperately need.

It was always emotional for me.

Money has no soul.

It doesn't care.

I'll make you a better offer.

I'll give you $1 million.

Who are the sharks?

Kevin O'Leary knows
how to make money.

- He started a software business
- in his basement,

which he eventually
sold for $3.2 billion.

Barbara corcoran--

this fiery real estate mogul

turned a $1,000 loan

into a real estate empire

worth hundreds of millions

in the shark-filled
city of Manhattan.

- Kevin harrington
- is the king of infomercials.

- His genius marketing
- of products

- such as the Obama coin
- and the rock 'n roll stepper

have amassed billions
of dollars in sales.

Daymond John literally turned

rags to riches

with his clothing brand fubu,

- which has grossed over
- $6 billion

- in worldwide retail sales
- to date.

And Robert herjavec, who sold

his Internet companies

for over $350 million.

Now this self-made
technology magnate

is a venture capitalist and runs

his own software company.

If the sharks hear a good idea,

they'll fight each other
for a piece of it.

Robert just offered you nothing
and told you to pound sand.

No, I didn't.

I didn't do that.

- I gave him a sh*t at the brass
- ring. you're giving him nothing.

You've just seen a guy
screw his partners.

That's what happened here.

But first the entrepreneurs
must convince the sharks

to invest the full amount

they're asking for
or they'll walk away

with nothing.
What would I pay for that?

Uh, $9.50.

Stop the madness.

Are you out of your mind?
Yes.

Ouch.

I'm out.

- I'm out also.
- He's out, I'm out.

♪♪♪

♪ 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 is Craig French,

who believes his business

- could be the next big thing
- in fashion.

♪♪♪

My name is Craig French,

from long island, New York.

- My partner deniz and I
- came up with a clothing company

called crooked jaw.

I came up with the name

after breaking my jaw

playing college lacrosse.

We started off just producing

a couple of t-shirts,

and immediately, we got

response from people.

- Some happy customers,
- they'll be getting this package

in a couple of days.

- Hey, Craig. How are you?
- I just wanted to come in

and show you a couple
new designs we got.

- I know we did well with them
- in the last color,

- so we figured we'd do 'em-- - oh, this is nice. This is sweet.
- This will sell really well.

Cool.

I think what the sharks

can bring to our
business is enormous.

- This one store
- is not gonna pay the bills,

that's for sure.

- Their experience
- in the business world,

their connections,

- the networking they could do
- for us is immense,

but in particular, daymond John.

- Daymond John is the founder
- of fubu clothing.

Started off in his mother's

house, similar to myself.

And it slowly turned into

a multimillion-dollar
clothing business.

I'm 26 years old and
still living at home.

- As all my friends
- are out partying,

- you know,
- living the bachelor life,

I'm home living with my mother

just to keep my business afloat.

Craig, you have to eat.

Okay, hon?

- My mother has been there for me
- from the get-go.

She's been amazingly supportive.

It would mean the world to me

- to be able to give back to her
- everything she's given to me.

♪♪♪

Hello, guys, my name
is Craig French.

I am here with my
clothing company

called crooked jaw.

We are seeking a
$200,000 investment

for 20% equity of the company.

We are targeting a market

that is booming right
now-- the m.M.A.--

mixed martial arts industry.

It's huge right now with

the young kids, and we believe

- that we could be the next
- big brand in the industry.

Have you sold any product yet?

We have sold about 1,500 units.

We're in about ten

- mom-and-pop
- surf-and-skate shops

on long island.

We just opened up, uh,

our own online retail shop

about three weeks ago.

What's on the t-shirt
there, the red one?

Can I see a design just to get

an idea of the flavor of it?

Absolutely.

That's a nasty-looking clown.

Show everybody.

- Craig, how did you
- come up with this?

Were you a designer guy?

I got my jaw broken.

- Uh, freshman year of college,
- I was playing lacrosse,

- and I sh*t and scored
- the game-winning goal.

Everyone celebrates.

I got hit at the same exact time

as I--as I scored the goal.

I've had extensive oral
surgery on my face,

had to cut off my
ear, go into my head.

Wow. you really got hit.

Oh, yeah. It was always
emotional for me.

Are these your partners?

These are my two
partners right here.

And this is our beautiful model.

- So it's a great story.
- Thank you.

- Love the t-shirt.
- I'm gonna buy that.

Would you give me that
t-shirt for free?

You could have it, yes.

All right. Daymond, how many

guys like that are out there?

There are a thousand
guys like this.

Ouch.

And if he's only in
stores in long island,

that means he never
went to a trade show--

yeah, we went to our
first trade show

about three months
ago in San Diego.

Do you have orders?

- Um, no. We came back with
- zero orders from the trade show.

But we made amazing
contacts at--

daymond, isn't that

a bad sign--zero orders?

Well, if-- I'm not a
fashion guy, but zero

orders doesn't sound good.

In... it depends.

Well, it's the economy.

It's usually horrific.

It's bad.

For right now, if
there's nothing there

that really lends
itself to m.M.A...

What about this?

Besides the jaw
idea itself, um--

is he one in a thousand?

Mm. 10,000, maybe.

If you go to the trade show,

you're gonna see various amount

of brands like this,
so unless he has

hard paper in sales

or some of the most key m.M.A.

Guys wearing the
product-- I can--i could

get into all that with you.

- Obviously with
- the bad economy right now,

- a lot of companies
- don't want to risk

a brand-new startup company,

but we have an online retail

shop that we could pursue,

as well as every major m.m.a.
event,

- we get opportunities to sponsor
- the most top-flight athletes

on that card.

Craig, they're asking
you for money.

Yeah, we all get those.

Yeah, I mean, that--i could

sponsor an m.M.A event.

- But you have to have a brand
- that the kids are gonna like

when the guy walks out--

no, they just want my money

for advertising.

They just want our money.

So, Craig, I'm gonna
summarize it for me.

Okay.

Um, you're not doing a good job

of impressing daymond.

So if--if Mr. clothing guy--

I would like to show
daymond my clothing,

- because he hasn't even asked - to see it.
- Show me. I-i, you know...

Daymond, I-i came--

because I came from where you--

where you came from,

so I do not want to be harsh.

Okay.

Oh, really?

I can't imagine what--

you asked me the question.

What are you like
when you're harsh?

Daymond, if you're not

impressed with this stuff,

then, you know, I--
I really like that.

Oh, that's cool.

We have our own zippers--

- you know, to be very honest,
- guys at your level,

you either have to have

a talent attached to the brand

or a retailer who is guaranteed

to put it out.

With your money,
daymond, I could go

- and fly to these places,
- we could have sit-down meetings.

- This--this day and age,
- you mail this to 'em,

- they're gonna send you
- the paper,

- they're gonna
- send you the orders,

and that's the way that

I would back this company.

We have to continue to build

the brand with your money

and make this a brand

that they can't resist.

And I think we have
an amazing brand.

We have built this
brand nationwide

- in three years
- with very little money--

I do think that you
may have something--

are you looking at
yourself ten years ago?

I'm gonna--I'm gonna read

you guys a little something

- I have
- on all of our hangtags.

- "There is no easy way to achieve
- what I desire most.

"Perseverance will allow me

to fulfill my dreams.

- No one can stop me from what
- I want to accomplish."

I wrote that quote.

It's on every hangtag

we give to our products.

Wait, wait, wait.

I've got something here.

- I'm money.
- I don't give a damn.

I just want to have more money.

That's what this says.

Absolutely.

I don't understand how
to make that happen

with what you're telling me.

Because, you know, I'm speaking

a little bit to daymond here.

- There's a million guys
- out there like me.

- I don't think there's
- a million guys like us

- that have the passion
- and pursuit that we have

that come from a real place.

I'm--I'm listening to you,

and it's very impressive.

- I mean, I like your,
- you know--

I would buy into the
brand because of you.

But the brand itself right now,

it needs more legs.

You don't have orders--

that's why I'm here.

I need to buy sweat equity that

you already have put in there.

- All you've done
- is manufactured something.

- I could manufacture it.
- That's not the problem.

I need you to have a following.

With very little money, we've

created an amazing following.

What are your sales?

What are our sales?

They're very insignificant.

Very insignificant.

Like what? Like what?

What did you sell?

What were your sales last year?

We've probably sold



Craig, you're--you're--

you're crashing and burning.

I'm out.

I'm out, too.

- Daymond, are you gonna
- invest in this?

If you're in, I'm following,

'cause you know
what you're doing.

Why are you making it
all my, you know--

you're Mr. clothing.

You're the clothing guy.

You're the clothing guy.

Daymond, come on.

You gonna invest?

With two sharks already out,

Craig needs daymond
to turn the tide.

You know, to be very honest,

as of right now,

you're nobody to everybody.

Okay.

I'm--I'm... I'm out.

All right.

He's out, I'm out.

Four sharks have dropped out.

Kevin O'Leary is Craig's

last chance for an investment.

Craig, you know, look,

- I'm just an investor trying to
- scratch out a living here, okay?

- I'm listening to this.
- I love you.

I love your story--
the broken jaw,

the g--the winning goal,

all that stuff--i love all that.

But you got a tough
deal here, buddy.

I can't give you my money

- because I don't see
- how I'm gonna get it back

with more of it there.

It's all about investing.

I'm out.

But I want to buy
some of this stuff.

That's how--how conflicted I am.

What's this thing worth?

I'm buying this right here.

How much?

I don't want to take your money.

You won't take my money?

That's-- you can have it.

It's my gift to you guys.

This is what we do.

Craig, thanks for your time.

Thanks, guys.

- Good luck.
- Good luck.

Good luck to you.

♪♪♪

I like the guy.

I love the guy.

I love the guy.

Man, you are one tough guy.

I am not. This is a
black hole right here.

- And if he keeps spending
- his money, he's gonna spend

everybody's money,

and he's gonna be out of it.

I'm disappointed. I'm sad.

But I believe in what I'm doing.

I'm not gonna stop because of

a couple of sharks who
think that they know

everything about business.

♪♪♪

My name's Robert Allison.

I'm the inventor of life belt.

This is my son Michael,

- and he's gonna be
- showing us how it works.

- First thing I want you to do,
- son, is try and start the car

- without putting on
- your seat belt.

Did the car start?

No.

Okay.

- Once lifebelt's installed,
- the vehicle can't be started

until the driver fastens
their safety belt.

- Put on your seat belt.
- Gosh.

- The number one cause of death
- and k*ller of teens

in our country, hands
down, is car crashes.

Try it now.

As a parent, there's no way

I'd let my son drive
without the protection

that lifebelt offers.

- I believe that every parent
- in the country

- would want one
- for their sons and daughters

if they knew lifebelt existed.

♪♪♪

Good afternoon, gentlemen.
ma'am.

My name is Robert Allison.

- I'm the creator
- of lifebelt inc.

I'm here today requesting

$500,000 in funding for 10%.

Lifebelt, in short,

is a piece of safety equipment

- that prevents you from
- being able to start your car

without first buckling
your seat belt.

- The reason I've--I'm excited
- about this opportunity

- is that
- if I can get my product

- out in front
- of the American public,

then possibly we can
help to eliminate

- some of the teen fatalities
- that occur every year.

How does it work exactly?

Like I see a little black box...

The larger black square taps

into the vehicle's fuse box.

- The primary function
- is to make sure

that the driver has on

his or her seat belt.

- How did you
- come up with this?

About seven years ago, uh,

I had a loved one
that lost her sister

to a, uh, car crash.

- The leading cause of death
- in our country--

- resoundingly--
- is traffic crashes.

- If you have on a properly worn
- shoulder harness,

the chances of you walking away

from a traffic crash uninjured

or not deceased go
up by up to 86%.

I love the concept, Robert.

Walk me through the--the costs.

- What--what do you sell
- the unit for?

- What's it cost
- to get it installed?

Uh, installed, right
now in las Vegas,

- which is where I live, I've got
- two different shops there

that do it for $229 installed.

Could an average person

install this himself or-- yes.

'Cause $229 sounds a
little pricey to me.

Do you have a patent for it?

Of course. It's patented.

I own the patent, the copyright,

I own the fcc licensing.

- Why not go to the car comp--
- like, why build a business?

'Cause if we got--if you and I

got one of these in
every single car...

We'd be very, very rich.

'Cause I'll tell you,
I love the idea.

I mean, I love the idea.

But I am never gonna
buy one of these...

- And then take it to a mechanic.
- It's too much hassle.

If I'm a large car manufacturer,

and I want to put this in,

do I have to go to
you for the patent?

Yes.

- So--so that's the big elephant
- in the room.

Like, why aren't you doing that?

I-I have spoken to engineers

at all three of the major

automobile manufacturers

here in this country.

One in particular is
extremely interested,

but does it take another

five years to get to that point?

- There's
- two ways to sell it.

- One is to--at the point
- of manufacture,

the other is at the time--

the point of sale of the car.

The automotive aftermarket
business... Oh.

Is a huge business.

The problem is, just like

when I just walked in here,

- you didn't even know
- this existed.

- And so when I call on
- some of the bigger

- nationwide auto chains,
- they've never heard of me,

- they've never heard - of the product--
- but, Robert, we know that.

So what if they've
never heard of you.

- Nobody ever heard of me when I
- started my first business,

- and I sold it for $100 million. - Robert,
you're not making - any money right now

- doing this, are you?
- No, I'm not, no.

- Okay, so let's--let's agree
- on one thing.

- Just--i want
- to hear you say this,

- 'cause I'm not sure
- you're going to.

The only thing of value here

is the patent, yes or no?

Yes.

My biggest concern

is not so much your product,

but I don't see you
selling this thing.

So I, for one,

on that basis alone, I'm out.

Thank you.

Um, you know, the biggest
issue I have here

is--is the valuation.

Uh, $500,000 for 10%,
uh, is--is just--

right. that's nuts.

- I-i mean, it's--
- it's outrageous.

- On the valuation basis,
- Robert, I'm sorry,

but I'm--I'm out also.

Until there is a car company

licensing this thing,

this will be an endless

and fruitless journey

of, um, spending money.

I'm out.

Robert, I'll make you an offer.

I'll buy your patent
for $500,000.

One hundred per cent of it.

I want to separate
you from the patent,

and I don't want you
to call me ever again.

Robert, I'll make
you a better offer.

I'll give you $1 million

for 100% of the patent,

and you can call me once.

Robert, I'll make
you a better offer.

I'll give you $1 million

for 100% of the patent,

and you can call me once.

A million-dollar offer
is on the table,

and Robert is about
to make a decision

that could change his life--

a million-dollar decision.

I am gonna have to
say no, thank you.

Is there any price?

What's the price?

Make it a national,
recognized brand.

There you go again. Why do you

want to go back to the business?

May I please-- may
I please finish?

Because I'm gonna
answer the question,

- but it's not
- just about the money.

I know it is, I'm not
questioning that,

but if you told me...

"I'll give you $30 million,

- but I'm gonna put it on a shelf
- and never produce it"...

What you just said

makes absolutely no sense.

Obviously we're gonna

sell it to car companies.

Why would we put it on a shelf?

- I mean,
- that just makes no sense.

- Why would you say that? - That's crazy.
- He's not a corporation

trying to take your
product to hide it.

- He just wants to make money,
- so the more he gives you,

- the more
- he's gonna work harder

to make sure that product
hits the market.

Look, what do you think,

we--we want kids to...
I didn't mean

to suggest that.

I apologize... Think about it.
You're--

you're a business guy.

No, you don't have to apologize.

- You're a business guy. - You started from a good place.
- Mm-hmm.

But you're
unbelievably stubborn,

and I think everybody
here, all the sharks,

see the very obvious way to

make money at this except you.

And every time we
throw it to you,

- you acknowledge it,
- but then you want to go off

and run and build a business.

- I don't want to build
- a business.

I want to take the path

of least resistance.

And again, it's flattering,

but no, thank you.

Robert, we're done here.

Thank you very much
for your time.

♪♪♪

Great idea, wrong guy.

I'm--I'm shocked

that he turned down that money.

- Too bad. Lost opportunity.
- That--that was - really a great product.

Mm-hmm.

It was.

- Lifebelt is
- tremendously more important

in the ability to save lives

- than just a stack of money
- on a--on a table.

That's just not enough.

♪♪♪

Next into the t*nk
is Susan knapp,

who believes she has

a delectable opportunity
for the sharks.

Hi, my name is Susan knapp,

and I am the creator of

a perfect pear from napa valley.

I'm raising $500,000
for a 15% equity stake

in my company.

Ow!

I turned my passionate hobby

of making my signature product--

cinnamon pear jelly--
into a business.

It's evolved into a
line of extraordinary,

award-winning gourmet
food products.

But do you have sales?

We've grown to over
$700,000 in sales.

Well, well, well, well.

So what's the net profit?

At the end of 2009,

we expect our net
profit to be 2.43%.

That's about $15,000.

At the end of, uh, 2010,

we expect our net
profit to be 10.5%.

Thank you.

You're quite welcome.

Susan, it's fantastic.

Thank you very much.

Mmm. that's good.

Mmm.

How many total stores
are you actually in?

About 650.

- So what do you need
- the money for?

We need the money

to help us with production.

- I currently have over $100,000
- worth of orders

that our customers are
eagerly waiting for.

You can't get financing

from a bank or somebody else?

It's pretty difficult right now.

- Even a lot of
- the angel investors

- that are usually available
- in this market

- have been - pretty difficult to reach.
- That's the real problem

with what's happening
in America today

is people can't get credit.

Right, right.

- Deserving people with
- real businesses and real orders

- can't get credit.
- My concern is,

- is that you're not making,
- really, much profit.



that's projected for this year.

That's a $15,000 profit.

Don't you think
what you're asking

and valuing your company
for is too high?

I personally have over $800,000

invested in this.

Susan, don't care about

the past. Doesn't matter.

Okay, everybody
loves your stuff.

Your packaging's fantastic.

You present very, very well.

Put that aside.

Let's talk about the money.

We have to take the
emotion out of it...

And make it real.

How about this deal?



of your company.

Are you asking me if
I would accept that?

Yes.

No, thank you.

Okay, I have $500,000...

For 51%.





I control the company.

I'd go 50%.

Half a million for 50%.

I'd go in on that deal.

I think 50 is fair,

because at the end of the day,

you need the money,
we gotta have

some level of control.

- So I'm in with Kevin
- on that deal.

Do we have a deal?

Well, let's see--
Susan, let's be clear.

Kevin and I are
offering you $500,000

for 50% of the company.

- Why deal with two guys when you
- could just deal with one

for 51%?

I wouldn't throw out the 70%

that leaves you with 30,

'cause you get to work

with Mr. wonderful. That's me.

Susan, we have--
you have an offer.

What do you want to do?

You want to go in the dark

and think about it?

For just a second?

You want to step out one second?

Yeah, go ahead. Phone

your husband if you have to.

Does he own any of the business?

No.

He just put all the money in.

- Ooh, that's mean.
- I like her even more now.

- First of all,
- what is this 50% stuff?

We can get 70% here.

Easily. we can get 80%.

She said no.

She said no to your 70%.

She turned you down.

- Yeah, but, you know,
- I have 51.

- You guys are taking my deal,
- almost, for 1 point.

- No, but you guys, you undercut
- me by going down to 50--

and they undercut me.

Yeah, they undercut him.

It's all fair. Come on.

- She wasn't gonna--
- she's not gonna take that.

All right.

Let's get her back.

Susan, you want to come back?

♪♪♪

What do you want to do?

♪♪♪

Both asking for a bigger chunk

of her company.

- I love the fact that
- you've got $700,000 in sales,

you've got $100,000 in orders

waiting to be fulfilled.

I love that, okay?

My offer with Robert
as my partner--

we'll each-- together
put up $500,000

for 50% of the company.

My offer is... I will
give you $500,000

for 51%.

That gives me
controlling interest,

but you only have to deal with

one person instead of two.

You're all wonderful.

Now here's what I would like

to propose to you two
gentlemen or to you.

Would you consider 49/51 so I

maintain 51% of the company?

Can't do that.

- I don't want to speak
- for Kevin harrington,

- but I can't do that.
- No.

- And I'll tell you why - I can't do that.
- Okay.

In a small business,
the decisions you make

can really influence

which way we're gonna go.

And I just need to be involved.

But along with Kevin harrington,

- I'm willing to go with you
- 'cause I like you.

So I'm willing to
share responsibility,

but I'm not willing to give you

that responsibility.

Okay.

I-I have to control my money.

You've spoken for me

very well. Thank you, Robert.

You have not given me an answer.

Can I have controlling stake

of your company for 51%?

Do you know, I hate to say it,

but, um... but no.

And--and thank you very much.

Then I'm out.

Are you saying no to daymond

or are you saying--

I'm saying no to daymond.

And you two
gentlemen, I'm, um...

Susan, think about this.

You make no money.

I will-- oh, gosh.

I-I will say yes to.

- Yes.
- Hey.

- Good choice.
- Aha. aha.

- She's gonna say no, - huh, daymond?
- You took me for 1%.

She's gonna say no, huh?

She's gonna regret it.

Ah. Susan, you made
the right decision.

Well, and he loves
the product already.

- Congratulations.
- All the best.

- Thank you.
- Good match.

That is a-- that is a good deal.

That is a great lady.

Great lady.

- That is
- a good lady.

Ah! I shoulda got
in on your deal.

It feels a little bit scary

to give up 50% of my company.

But knowing that my intent

is to have this be a
$20-million company

over the next five
years, what's 50%?

♪♪♪

Next into the shark t*nk

is Mary Ellen simonsen,

who believes her product has

the potential to make millions.

Hello, my name is
Mary Ellen simonsen.

- I have created a product that
- will keep your sticky notes

in place and organized

while working at your computer.

I am here to ask for
$100,000 in-investment

for 20% equity in my company.

I created this product
because I was tired

of losing sticky notes

and having to reposition
them all day long.

This example here is
an example of what

we're all used to seeing.

There's been no change in it.

There's been no solution
to it until today.

You simply attach it

to your laptop or your
desktop, and you put

all your notes here.

- You can also attach it
- to this side.

Mary Ellen, you've created

a sticky pad for sticky pads.

I created an arm
for sticky pads.

That's worth half a
million dollars?

Yes.

Please tell me why.

- All you--
- all you simply do is--

is swing the sleeve in

when you're ready to go.

And as you can see,
none of 'em fall off.

Oh, I see why it's worth

half a million dollars.

Thank you!

It folds into the computer.

- Of course that makes sense
- to me now.

You've sold how many?

I have sold none.

Excellent. excellent.

- I think we should keep this
- a secret.

It's so valuable that nobody

should know about this.

Come on.

Who's gonna buy this from you?

This year alone,



here in the United States.

And every one of them

doesn't need your sticky arm.

This year alone, over


will be sold worldwide.

How much is it worth?

What would I pay for that?

Uh, $9.50.

Stop the madness.

Are you out of your mind?

- $9.50 for one?
- Yes.

- Are you crazy?
- Yes.

- Who would give you
- 10 bucks for that?

A lot of pe-- a lot of people.

How do you know that?

How do you know that?

I've--I've done surveys.

There's so many bad
things about this,

let me count the ways.

I'm out.

Mary, convince me why this isn't

the worst idea I've ever seen.

This year alone, there'll be


okay, you gotta

stop that right away.

You know what? I can't tell you

how many people come to me

and say "if I can get 1% of 1%

of the billion"...

You--you... zero from
zero is still zero.

- So forget that. Let that go.
- Give me another one.

- Give me another reason
- why this is great.

This is solving a problem

that everybody has

- who uses sticky notes--
- I don't have that problem.

Who uses sticky notes

while working at their laptop.

- Have you shown this to anybody
- that said,

"I like this and we'll
sell it for you"?

I have not because I have not

secured a patent yet.

Don't waste your time

or the money on the patent.

I think no sales,

a useless idea. I'm totally out.

If you walked in here today

with some kind of
interest in this product,

- uh, I think you may be getting
- a little bit different reaction

from us right now.

So I'm out.

- I don't think your product
- is worth what you're asking,

- but I do think you have
- a product there.

And I think $10 a pop

on a qvc-type
station-- what planet

did you come from?

Yeah. no, let me tell you.

I think you could sell it.

I love this lady. You're solid

on your feet, all right?

- I just don't think you're gonna
- make a business of this.

You know, Barbara--
so from me, I'm out,

but not because of you.

- I think you need a new product,
- but I'm out.

Barbara, you gotta,
you gotta stop that.

- You know what?
- That's why she's here.

She's here with a horrible idea

because somebody in her family

- or her friends said that, too.
- I'm not her friend.

- "You're really nice,"
- and encouraged you.

Have you spent any of your own

money doing this?

I've spent about $1,000.

That's the good news. You should

stop. find something else.

Move on. I'm out.

Thank you for your time.

Thank you.

Good luck, Mary Ellen.

♪♪♪

Y, who believes his business

is an investment in
America's future.

♪♪♪

My name's Marc furigay.

I live in Chicago, Illinois,

and my product is gonna

revolutionize the way

things are taught in school.

I'm a high school
english teacher.

I've been teaching for
about eight years.

- I've always loved reading,
- and I love kids as well,

- so as a teacher, I wanted
- to share this enthusiasm

with the kids.

- Today we're gonna do an even
- deeper character analysis

of lady MacBeth.

It got pretty frustrating

when a lot of kids

- had a hard time getting into
- what they were reading,

uh, particularly Shakespeare.

They just tuned out.

So I figured there had to be

a better way to get them

into the literature.

So I created something
new, innovative,

and it completely changed

the class dynamic.

Who is the stronger,
harder character,

MacBeth or lady MacBeth?

- In all my years of teaching,
- I've never come across

anything that works
nearly as well

as the product I've created.

It was the circumstances

- that turned him into
- the ruthless king that he was.

- Their marriage was good. - You think
lady MacBeth - started off good?

- She started off good.
- It was all about her greed.

The title of the play is

"MacBeth" because he's better.

What I want to show the sharks

is that this is not just

an amazingly effective
teaching tool,

but it is an amazing
business opportunity.

♪♪♪

Hello, sharks.

My name is Marc furigay.

- I'm the creator and founder
- of classroom jams--

an educational record label

and publishing house

set to launch.

I'm here seeking $250,000

for a 10% stake in the company.

As a teacher in Chicago
public schools,

I saw a very huge need
for teaching tools

that actually worked.

No matter what resources

we had, kids kept failing,

and teachers kept burning out.

One day, uh, when I
was really struggling

to get kids interested
in Shakespeare,

a student of mine

summed up the problem perfectly.

She said, "Mr. furigay,

- why can't you give us something
- we can relate to?"

I took those words to heart.

The next day, I came
in with a song.

- I--I'll play you
- just the first verse.

It's called

"the jubilee of Juliet, part 1."

♪ The jubilee of Juliet ♪

♪ hasn't even started yet ♪

♪ but get the party on tonight ♪

♪ and yo there's
gonna be a fight ♪

♪ can you feel the feeling yet ♪

♪ of fiery tybalt capulet? ♪

♪ See, tybalt hated montagues ♪

♪ the family and
the feeling, too ♪

Well, the kids loved it.

- That was really good. - Very good,
- very good.

- Thank you.
- That was really good.

Okay. how do we make money?

We make money by selling

our, uh, class sets to
schools nationwide.

Marc, do you own a-a copyright

to that song? Like-- yes.

Have you written all
the shakespearean

classics musically?

I wrote and performed

all the songs on the album.

Wow. so you're selling us

the entire record label?

That's part of the business?

Yes, exactly.

And the rights to the songs?

Um, I am not selling

the rights to the songs.

Ooh.

I am selling a stake
in the record label

and the publishing house.

But why not the song?

The song is something that

I would like to keep control of.

You are a nasty man.

School is your
customer, correct?

Correct.

What's the cost to the school?

A class set costs, uh, $499,

and it includes 30 cds

and the teacher's guide.

- Why--why Shakespeare?
- Any other programs, like why--

- you're seeing ahead.
- Precisely.

The reason I chose Shakespeare

was because, uh,

he is the most widely taught

writer in the english language.

Probably one of the hardest

to understand, too.

Precisely, um, and
one of the things

that kids really
struggle with the most.

- So any other ones? Are you
- doing any other--

uh, the next three,
uh, we're planning on

will target different,

uh, different subjects--
history, science--

Marc, I'd like you
to do me a favor.

I'd like you to walk outdoors

for a minute. Leave us alone.

I-I like this deal.

- This is why I wanted
- to call a session together.

- Let's not
- bid against each other.

- First of all, there's no way on
- earth he's walking out of here

- without the publishing rights
- in the deal.

$250,000 for 100%

of the business, and
he gets a 5% royalty

after we recoup our dough.

- I love it, but I mean,
- I'd love to be taller, too.

I just don't think
he's gonna do it.

I'm not giving him any dough

unless I have total control

and I own all the rights.

That's it.

Mean guy.

But a royalty stream for him

can be worth millions of dollars

over the--over time,

so this is still a very--

a very good offer.

Call him back in.

Marc, come on down.

You know, I gotta
tell you something:

- You're a very lucky guy today,
- that we met.

- I'm gonna make you rich,
- I think.

But you're gonna have to

really think this through.

We form a new company.

We own it.

We fund it with $250,000.

It's a publishing
company for you.

- Just like a great artist,
- you're gonna make a royalty--

in perpetuity,

for the rest of your life, 5%.

The five sharks
have offered Marc

$250,000 and a 5% royalty

for 100% of the company.

Um... Fascinating.

I--it's a--it's a great--

it's great to imagine that the--

you would be willing to do that.

Um, but... I'd like to
build this company--

stop right there.

Do you want to be rich or not?

I do want to be rich.

Well, let's get focused
on that, buddy.

- But do you want to have to deal
- with the everyday aspects

- of sales, distribution,
- manufacturing?

Or do you want to be able

to do exactly what you do,

an artist and a teacher?

This--the latter sounds ideal,

although, I must say,

since I started to think about,

uh, starting a business,

the marketing, the sales,

uh, the networking is
also very exciting.

It won't be after a while.

How many times in your life

have five people said,

"let me give you $250,000

to start a company,

"of which you, for the rest

of the days you're
alive, make a royalty,

regardless of how hard

it is for us to sell it"?

I guess what I'm concerned

with is, 5% feels quite small.

In perpetuity? Forever?

The model of royalties

is a great deal for you.

Yes.

Why aren't you jumping
all over this?

I sense that you're concerned.

- Well, there is the--the question
- of the equity stake.

I like the idea of maintaining

equity in something--

- but that's not the offer
- on the table, my friend.

The offer on the table right now

is to set up a new company...
Mm-hmm.

That the sharks
own, and you get,

which is a great deal,

a percentage of those sales

for simply creating material.

Um, I would like to
make a counteroffer.

We're all ears.

I would like to be,
uh, six players

as co-owners of the company.

It's un-American,
what you're asking.

You don't want to take any risk.

- You want us to spend
- all of our dollars,

- give you free equity
- and get a royalty.

Do you see the
problem with that?

I-I don't see it as free--

and look at how we're struggling

to make it work for you.

I-I appreciate that very much.

Um, I don't see it
as free equity.

Don't try to be a shark.

- You--you either get equity
- or you do a royalty deal.

- I hear you saying
- "I love my business."

You have a passion for it.

- I'll give you the $250,000.
- I'll give it to you on my own.

But I want 100% of the business,

and I'll give you an option

to work back to 49%.

Robert has made Marc
his own offer--

$250,000 for 100%

of the company with an option

to buy back 49% of
it with profits

made from the business.

Uh, uh-- excuse me. Your deal

has no royalty in it.

No royalty.

So you get nothing.

May--may I take notes?

No, see, it's very simple.

You don't need to take notes.

Robert just offered you nothing

and told you to pound
sand for a long time.

No, I didn't.

I didn't do that.

I think you did.

I gave him a sh*t
at the brass ring.

You're giving him nothing.

What do you want to do?

All five sharks made Marc

an offer together, but Robert

had a change of heart

- and made him an offer
- on his own.

I would like to make

a-a per--a counteroffer.

Just before you make that move,

- maybe your other deal
- is gonna evaporate.

- Just like a dog
- with a bone in his mouth

- looking at a reflection
- in the river,

you better make sure,

before you open your mouth,

the bone doesn't drop out here.

He's not gonna do the deal.

He's not stupid.

- I didn't hear that yet.
- I mean, I went along with it

- because I thought, sure,
- if he does the deal,

- I'm happy to go along with it,
- but he's not gonna do the deal.

- Are you gonna let that bone
- drop out of your mouth?

- Because maybe I'll evaporate
- on that.

- Obviously I'm getting cut out
- in Robert's scenario,

and that really makes me

quite unhappy, Marc.

I'm less interested
in, um, just one.

I like the idea of
having five resources.

Now I'm offended.

What's wrong with me?

Nothing is wrong
with you, Robert.

I-I really like the idea of

having five business partners.

You know what, Marc?

Forget that.

- That's just
- way too complicated for me.

I'll give you $250,000.

Um, I get 51%, you get 49%.

You gotta be kidding.

What happened there?

- Robert has just sweetened
- his offer

by giving Marc the 49%
stake of his company

without having to buy it back.

You've just seen greed.

That's what you've seen, Barb.

You've seen a guy
screw his partners.

That's what happened here.

- Yeah, but you-- - I won't forget this,
- Robert.

And you know what?

Do you need a hug, Kevin?

- You're not gonna get - any help from me on this deal.
- Ay-yi-yi.

Marc, you have to start

making a decision. Which one?

That--that was why I
wanted to take notes.

- You know, the big risk is
- you're gonna walk out the door

- singing the blues in "e." - You know what
- the big risk is?

I'm gonna say I'm out

in less than a minute.

- We've been here - for way too long.
- It's getting more comp--

it's way too many deals.

Yeah, if stuff is not simple,

I'm about to be out.

And I'm a simple guy.

I just want to make money.

Um, I really like the idea--

I-I really like the idea of

having five business partners.

Marc rejected Robert's offer

in hopes of securing a deal

with all five sharks together.

Can you, uh, redescribe

what your new company
would look like--

okay, one more
time with feeling.

- You don't even have to write
- this down. It's this simple.

We fund the new co.

With $250,000,

you start making 5% for the rest

of your life on sales,
regardless of what

our costs are.

He has no equity.

Has no equity.

If you want-- okay--

- after we've recovered
- the $250,000 investment,

we let him use his
royalty stream

to acquire the equal equity

amongst ourselves.

That makes sense to me. That's

real dollars for real equity,

- 'cause by then-- - is that something
- you'd consider, Marc?

Um... that would be something

I would consider,

but I would like the royalties

to be, um, much higher
to be able to, uh,

attain equity much more quickly.

Can we do 8 1/2%?

- No.
- No.

Okay, so it would--
Marc, are you sure

you're just an english teacher?

Or really, did you do an m.B.A.

And you just didn't tell us?

Uh, I am sure I
am-- he looks like

an english teacher.

I'm an english teach--
an english teacher.

You're trying to drive

a deal that's impossible to get,

in this room or
anywhere else on earth.

Do we have a deal, yes or no?

♪♪♪

Let's go into business.

Whoo! all right.

Marc, congratulations.

Great idea, man.

Thank you.

Like a really,
really great idea.

You're a very wise man.

That was very good, Marc.

Good job.

Thank you.

Okay, that was a good deal.

- I take it back.
- That was a good deal.

- He should've never
- gone for that deal,

but I'm happy to do it.

That was good.

I feel invigorated.

I don't know. You know--

every time you'd
say "I don't know,

I'd hit you with an
electric cattle prod.

You gotta know this stuff.

I-I-i really can't believe

that you are not appreciating

what I've done.

You see any problem with that?

I-I see no problem with it.

I think-- I see greed.
I see greed.

Wanting to make money

is what this is all about.

You have no business being here.

Some of this comes from belief.

You're your own worst enemy.

That's the problem.

Save your breath.