- 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.
It's all about the money,
all of the time.
The sharks
are ready to invest
using their own money,
but only for the right person
with the right idea.
Nate, I want you
to go back to your class
and say "I went on shark t*nk,
they b*at me into a pulp"...
- "And I deserved it.
- I'll never do that again."
But first, the entrepreneurs
must convince a shark
to invest the full amount
they're asking for...
Sorry.
Or they'll walk away
with nothing.
Why should I give you the money?
I promise if you partner with
us, we will not let you down.
- Wow.
- Wow.
And if the sharks hear
a good idea,
they'll fight each other
for a piece of it.
- There's a million guys
- with passion.
Really? you believe that?
Yes, I do. What do
investors want, Robert?
They want their money back.
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
is Nate berkopec,
a young entrepreneur
with big aspirations
- for making the world
- a better place.
My name's Nate berkopec.
- I'm 19 years old, originally
- from eagan, Minnesota,
but I'm currently a business
student at New York university.
The goal of my company,
the factionist, is to be
- ethically conscious and make
- the world a better place.
My products target
that care about social issues.
- I think that my generation,
- more than ever,
- wants to just make the world
- a little bit better,
- and I think my company
- is the embodiment of that.
As a business student
at New York university,
- I think I've learned a lot
- about evaluating an idea
- and putting it into action.
- As an entrepreneur,
- it's really easy to do
- your market research
- if you are the market.
- So I really am
- a 19-year-old college student
- that cares about these issues,
and I think that my company
and its products reflect that.
- I know I have the passion,
- the drive, and the vision
to make the factionist
a multimillion-dollar company,
but what I don't have
is the capital.
- That's why I need
- to get in front of the sharks.
♪♪♪
Hi, my name is Nate berkopec,
and my business
is the factionist.
I'm looking
for a $30,000 investment
for a 20% stake
in the business.
I think that today's
young adults, like me,
- are some of
- the most environmentally
and socially aware in years.
Last year we had the highest
youth voter turnout
in over 30 years.
I mean, I couldn't even
sleep the night of last
fall's election
'cause of all the people
just running through
the streets of New York City
shouting "yes, we can!"
Now if we want to
carry through this mindset
into our clothing, we can't.
- Environmentally
- friendly clothing right now
is just bland and expensive.
The factionist is an ethical
- and environmentally friendly
- apparel brand
designed by
and for my generation.
- The factionist is clothing you
- can just feel good about buying,
not only because it looks good,
because you didn't spend
a lot of money,
- and it doesn't hurt
- the environment.
The bottom line is this--
the factionist is not
just another apparel brand.
It's a movement.
It's time for you to invest
in America's future. Thank you.
Wow. you're gonna save
the world?
Yeah, but I'm gonna
make money doing it.
What are your sales today,
Nate?
I've sold $3,000.
I just got started.
It's been six months.
Uh, I've been selling basically
through college friends.
- Are these your products,
- the t-shirts?
Is that the business?
It's t-shirts.
They're organic.
- Uh, the natural colored ones
- here are made in Uganda.
Um, but I want to expand.
But you don't make
the t-shirts.
I don't make the t-shirts.
You simply silk-screen
the logos.
Right. right now
it's silk-screening.
What do you do for a living now?
Right now I'm a student
at New York university.
So... there's
no business today.
You don't make the shirts.
You simply silk-screen
a good saying onto a t-shirt.
And what is so different
about you
than the million other
environmentally friendly
students from New York?
Look, I-i-I'm
a business student first.
So if you're a business
student, you would know
that's it's gonna
be very hard
to take the enthusiasm--
which is admirable...
Thank you.
Everybody wants
to save the world.
Me, too. Love that.
I want to make some money
along the way.
Oh, god.
The t-shirt business is
a brutally competitive business.
- You know that from
- the streets of New York.
Any guy and his dog
can stamp his t-shirt.
Margins are razor-thin.
Disagree.
Our margins are over 50%.
That's irrelevant.
I mean, that's
not even a business yet.
- You haven't even gone
- to private manufacturing.
How are you going to make this
environmentally safe?
You're gonna actually
have to do bamboo, correct?
You're right.
Bamboo--organic bamboo
is one of the best things
on the market right now
for, uh, for--
do you know how
much bamboo costs?
It--it's more expensive
than cotton.
- Nate, your graphics
- are not even unique.
- I-i--even--
- you could even say that.
With the $30,000, I want
to start grabbing artists
from countries,
like, um, Malawi or Uganda,
- and saying "this is designed
- by someone
"who has been
through this kind of thing,
- and this is what it's on--
- this--it's on the t-shirt."
- Nate, there are millions
- of other people with a movement
who have more brand,
more credibility, more p.R.,
more everything.
Look, th--you can
say that. There could be--
- there's a thousand
- other companies out there.
- They have millions of
- more dollars than me.
- What they don't have-- - no, no.
Forget the millions - of dollars.
- Let him speak.
- What they don't have is what?
- But what they don't have
- is the authenticity, okay?
- What? - I mean, young--
- no, young adults--
- we can smell inauthenticity
- from a mile away.
If some big company comes in--
Nathan, have you ever
worked for anybody
in a successful business?
Have you ever--
my--my dad is
an incredible businessman.
He has a garbage company
that makes--
have you ever worked for him?
Yes, I work for him right now.
How come he's not
giving you $30,000?
- He's a good dad. He's not
- just gonna give his son money.
- No, 'cause he's
- a smart investor.
He's a good dad that's not just
gonna give out money to his son.
You see, if I was your dad,
it would be very hard for me
to say, "look, Nathan,
- find something else
- to put this energy into."
But I'm not your dad,
so I'm telling you,
this is a really bad idea.
I'm out.
Nate, how old are you?
- I'm 19.
- Wow.
- Nathan, I'm curious.
- Why don't you have your brand
on your t-shirt?
I think that people look
at this and they say "wow."
It's--it's
a conversation starter.
- People see this and say, "wow. - Where did you get that from?"
- I love it--
- but go to her point.
- How do I find it?
- I see that t-shirt. - I want to buy one.
- Yeah, and--
how do I know who it is?
You go up to the guy, you say,
"hey, is that really true?"
And you're like,
"yeah, I got it from..."
That is the poorest branding
comment I've ever heard,
because you know what--
when you walk by
- in the streets of New York
- and a million people pass you,
- they are not all gonna ask you
- where you found that.
- Nate, if I go talk to somebody
- on the streets of New York,
- they're gonna sh**t me. - Look--but
you guys are - saying that--i mean--
Nathan, you're at $3,000
in sales,
and you have a value
of $150,000 on your business.
You know, on $3,000 in sales,
there's no track record for me
to invest, so I'm--I'm out.
I understand I'm risky,
but it's a long-term investment.
This is
a short-term investment,
- because we will lose - our money immediately.
- I am willing to work.
It's already cash flow
positive. I mean, I don't have--
it's got 3,000 in sales.
Because you're not
paying yourself.
Nate, you're living
in a fantasy world.
- You have an incredible amount
- of passion,
- which is the only reason why
- you're still standing there--
'cause we all admire that.
Once you step over
into the real world,
you have to have real data.
And $3,000 in sales
on a t-shirt that you don't
make, you simply silk-screen,
is ludicrous.
I'm out.
Nate, the--for me,
the numbers don't add up,
so I wish I could say I'm in,
but I'm out.
Nathan, I know a little bit
about t-shirts,
and to have a graphic
that you didn't design,
which is very easy--
I did design all of these.
I'm saying
it's just a typeface.
- You don't make the product
- yourself.
- I'm just very afraid
- that my shirt would say
"I invested and lost 100%
of my money in Nathan."
I'm out.
Nate, I want you to go back
to your class,
to business 101, and say,
"I went on shark t*nk.
"They b*at me into a pulp...
And I deserved it.
I'll never do that again."
- I don't think it's a mistake
- to have confidence in yourself.
- Otherwise
- I'm not gonna get anywhere.
- You know what-- I agree with you - on
that, and that's why - you're still here.
Have you learned anything today?
Absolutely.
What did you learn?
Even though you can have
all this confidence in yourself,
doesn't mean that--you know, you
can't walk in without the sales.
- Wow. he's a lot smarter
- than we gave him credit for.
- Okay. so you know
- what that says?
- It's all about the money,
- all of the time.
- That's what - you've learned today.
- Don't misunderstand that,
because I think Kevin, uh,
is--is...
Absolutely right.
Has been sitting in the 75th
floor of his money tower
for far too long.
You--you--you are going down
the right path.
Oh, really?
- You simply have to build a great
- business. you got the passion.
Don't ever lose that,
because that's infectious.
Thank you, Robert.
And you'll go a long way.
Thank you.
I feel good that I--that I tried
as hard as I could out there.
And I also feel disappointed
that it didn't happen.
That guy was a good kid.
Excellent kid.
He just had nothing.
He had no brand.
He is the perfect example
of why,
when you dump on people,
it's so dangerous.
- It's not dumping on him.
- Let me just finish.
- I'm telling him the truth.
- Robert--
- let me just--this guy may be
- in the wrong vehicle today.
But if he keeps that passion
and he keeps that energy,
he'll find a path.
This was not the right path.
There's a million guys
with passion.
- Really? really? - You believe that?
- Yes, I do.
- I think a lot of businesses
- have failed
- because people don't have
- passion. they have greed.
- What do investors want,
- Robert?
- We're investors here.
- What do they want?
What do they want back? Passion?
Talks about the world?
Saving the planet?
They want their money back.
I'm sorry. Were you talking?
'Cause I wasn't
listening anymore.
- That's what you should be doing. - You made a big mistake.
- Yeah, well...
- I'm Anthony calvert,
- and this in my wife, Tina.
- And together,
- we created the podillow.
I'm a deputy sheriff
for San Diego county.
Two years ago, I was injured
while, uh, assigned
to the sheriff's s.W.A.T. Team.
- It was during
- my recovery period at home
- that I came up with the idea
- for the business.
I thought it was a great idea,
and we decided to invest,
and we've been
working on it ever since.
We found that there is
a huge demand for the product.
But part of the problem
now is we don't
- have the available capital
- to keep up with the demand.
- We really need the sharks
- at this point,
and if we don't
get an investment,
it could mean that it will
be the end of our business,
- the end of the road
- for us.
- Hello, sharks.
- My name is Anthony calvert,
- and this is my wife, Tina.
- We're here today
- to introduce you to our product,
- the podillow.
We're here to ask for
an investment of $250,000
in return for 33% equity
in our company.
The podillow is a facedown
tanning and massage pillow,
and it has
internal storage pockets
to store
high-value personal items
such as your cell phone,
your car keys, or your wallet.
- On somewhat of a side note,
- I'm a 20-year veteran
- of the San Diego county
- sheriff's department.
- And I'm sure you can only
- imagine the razzing I've taken
from developing a product
that looks like this.
Trust me.
- My life would have been a lot
- easier if I was standing here
- telling you about some cool,
- black tactical holster
or the latest, greatest thing
in a prisoner control device.
Whether you're getting
a massage, you're tanning,
- or you're just trying
- to relax at home,
laying on your stomach
is tough to do.
- You keep turning your head
- from side to side
or you try propping your chin up
- on a rolled-up beach towel
- or your fist.
None of these techniques work,
and you usually just give up.
By using the podillow,
there's a hole
in the top of the pillow
that allows you to lay
on your stomach facedown.
- Anthony, did you get hurt
- on the job
- and then have to go
- for a massage,
- and it came to you one day?
- Like, how did you--
you're very close, actually.
Um, I-i had suffered an injury.
I was on my department's
s.w.a.t. team
and I dislocated my shoulder.
- As a result
- of the surgery...
This might be too much
information.
They--they had to shave
half of my chest.
Oh, that is too much.
That is too much.
Yeah, you're right. Yeah.
So I had to finish the job,
and noticed that I was
extremely pale on the chest
and decided to go lay out.
To lay out.
And I went and laid out, and I
just could not get comfortable.
- You would not believe my life
- in the last two years.
- You know, one minute I'm--when I
- was on the s.W.A.T. Team,
- we're planning
- a tactical as*ault on a house.
- An hour later, I'm on the phone
- talking about floral prints,
and daisies,
and what color pink--
have the guys been supportive?
Initially, no. They gave me
a pretty hard time about it.
But almost
every single one of 'em--
- when no one else was around--
- would come to me and say
"hey. how much are you selling
those pillows for?
I told my wife about it,
and she wants one."
So how many have you sold?
We've sold just short
of 6,000 units.
In how--in how long
a period of time?
- We're almost at exactly
- our two-year Mark.
- How much do you
- sell them for?
They retail for $29.95.
And they cost
how much to make?
My cost, um, is around $7.
Do you have any retail
or catalog distribution at all?
Yes, actually, um,
we're in two of the--the largest
mail-order catalogs there is--
uh, Lillian Vernon
and solutions.
- Both have sold out
- of product, and I'm--
and I have purchase orders right
now from them that I can't fill.
So you're saying
right now you have orders
that you cannot fulfill?
That's correct.
How many orders do you have?
- Well, the two biggest ones are
- by Lillian Vernon and solutions.
They made a fairly large
purchase in the springtime.
I told them that
"you're getting all I have,"
and within about
less than a month,
they called back and said
"we want to place another p.O.,"
and I had to tell them "sorry."
Let's bring it back
to numbers for a minute
- because actually, - that's why you're here.
- Okay.
$250,000 for basically
a third of your company
- is what you're asking for, - right?
- That's correct.
So that's $750,000 you think
the whole thing is worth.
You made about $21,000
last year.
You think there's a little...
Dislocation
between what you made and what
you're telling me it's worth?
Sure, I-I'll agree
with that statement.
But my--my--my--
so why would you come here
and--and ask so much for?
Because I believe
that those numbers
are... small
because of our limited ability
and--and resources.
But you want me to pay
as if you already had my money.
You're not letting me
wet my beak on the upside.
I guess it's a matter
of perspective.
Yeah. from this side.
Right.
That's a problem.
How do we fix that?
- I'm not sure.
- I'll be the first one to admit
I'm not a real numbers guy.
Yeah, that's obvious.
You've gotta have
a better answer than,
"gee, that's your opinion"
to Kevin's value proposition.
I-I guess my response is, you
know, the fact that Tina and I--
- I mean, you are looking
- at podillow incorporated--
- we--we--we package things
- in our garage.
- I have absolutely
- no--no marketing budget.
And yet, even given
those limitations,
in the last 2 years,
we've moved 6,000
of these things.
And I think that
with the proper knowledge,
the resources, the know-how,
- I truly believe this product
- could take off.
But, Anthony,
that's potential,
and I appreciate that,
but it's not worth $750,000.
If you went to a venture
capitalist company,
in this economy,
they would pay you a multiple
of what the company earns.
So if your company
earned $21,000,
maybe you're worth
$100,000 today.
So you'd have to sell me
That's the problem.
That's tough math, right?
I see the merits
of the product,
but this dislocation between
what your expectations are
for its value
and what I could pay you for it
is, um, the earth
and the moon.
I see.
That's how far apart.
So for that reason,
I'm out.
Anthony,
in my mass-market world,
we look for things
that can go in 50 states,
and year-round.
To me, it's a beachy
type of a product,
so that means it's gonna
be regional and seasonal.
On that note, I'm out.
Um...
I love the story.
I like the product.
I can make you filthy rich
with this product.
But daymond seems interested
in their product.
I like the product.
I can make you filthy rich
with this product.
But you made a tactical error.
And it's all gonna
come back to valuation.
At 250, I need
I'm very upset at you
for missing the Mark,
'cause you missed it
for me, too.
I'm out.
The idea that you didn't talk
to someone who knew
something about money
- before walking in here
- is a shame.
The money is wack,
so I'm out.
Anthony, uh,
you need a small loan today,
maybe 50,000,
maybe 100,000.
But how do I give you
$250,000
for any amount
of this business?
I can't get there.
I'm sorry. I'm out.
Thank you.
- All right.
- Thank you very much.
Thanks. good luck.
No pillow's
worth $750,000.
That's too bad.
You gotta know
your numbers.
- I think that the sharks
- are very close-minded.
- They are only wanting
- to deal with hard numbers.
They don't want to--
- it seems to me like they're
- unwilling to take a risk.
Just weeks ago, we watched
Kevin harrington and Barbara
- make an offer to cactus Jack
- for his push-up machine,
the body jac,
but there was one big catch.
I'd like the contingency
to be that you try
your new machine out,
you lose 30 pounds.
Cactus, do we have a deal?
I'll take your deal.
Good job.
Let's go make some dough.
- I got news for you guys.
- There's not a chance in hell
he's losing 30 pounds.
I can't wait to show you
my skinny cactus Jack.
Yeah. let's see that.
♪♪♪
We're here at our offices
at the corcoran group
in New York City,
and we are just sitting here
waiting for cactus Jack
to come in.
Cactus doesn't know it,
but I brought a doctor's scale,
and he's gonna have to prove it
that he lost 30 pounds.
When he jumps on that scale,
if he hasn't lost that weight,
the deal is off the table.
- Hey, Jack.
- Hey, cactus. How you doing?
Welcome.
- What did you weigh
- before we got started here?
- 275 pounds...
- Which means...
- So that means
- I gotta be 245 or below.
That's 200.
Should come out here.
Oh. oh. 243!
Wow.
Yeah!
Good job, cactus.
Now let's get down to business.
- Now that we've got the deal
- done with cactus Jack,
I'm ready to produce
the infomercial
that's gonna feature Kiana Tom,
celebrity fitness guru.
Oh!
Aloha!
- Unbelievable.
- Hi, cactus Jack.
We're gonna sell
- millions of body jacs
- on television.
- After being in the fitness - industry for 20 years...
- Yeah?
Trying hundreds of products,
the body jac is genius.
Well, thank you.
I love it.
I'm really excited to be here.
Well, we're excited to have you.
I have a message
for Kevin O'Leary,
who said that cactus
would never lose the weight.
Well, guess what, Kevin.
Eat your heart out.
Look at him now.
- I'm gonna be laughing
- all the way to the bank.
Hello. my name
is Kimberly foley.
My name is Matthew foley.
- We live
- in hawthorne, New Jersey,
and we are the proud owners
and creators of wee can shop.
Wee can shop is
a whimsical town
where children shop
for the ones they love.
Let's go find a gift for dad.
Kids use pint-size
shopping carts
- in search of the perfect gift.
- We're teaching kids
to think of other people
at gift-giving time,
and that's what makes
wee can shop so unique.
- All right, now we're gonna
- gift bag your gifts, okay?
- It is a family business,
- and we have no other
competitors out there. We're
the first and only of its kind.
Opening wee can shop
- has been one of our
- biggest accomplishments.
- We truly believe
- wee can shop can be
the next big retail chain.
- I know the sharks
- are gonna love us.
- They're gonna hopefully give us
- the investment we need
and the business know-how
to take wee can shop
to the next level.
♪♪♪
Hello, sharks.
My name is Kimberly,
- and this is
- my brother Matthew.
We are here today to tell you
- about our family business,
- wee can shop.
- We would like to ask
- for $200,000
in exchange for 30% equity
in our company.
- And now my sister would like
- to tell you our story.
Thank you, Matthew.
"Once upon a time,
"Kimberly and Matthew came up
with a brilliant idea
"to open a gift shop
- "where children shop
- for the ones they love.
"They called this magical store
'wee can shop.'
"upon entering the whimsical
town of wee can shop,
"children use
kid-size shopping carts
"in search of the perfect gifts
"and stroll through
charming storefronts.
"Once children have remembered
everyone on their list,
"and their carts are full,
- "their shopping experience
- is not complete
"until they pay the cashier
"and gift bag and tag
their gifts with love.
"This magical shopping
experience can become a reality
"for millions of children
across America.
- "So with a little help
- from the shark t*nk,
we could all live
happily ever after."
What do you sell in the shop?
As you can see, we have
different storefronts.
Mom's kitchen has everything
for the kitchen and baking.
Sugar & spice bakery
is all pie-shaped candles
and things that you bake with.
Has anybody approached you,
saying, "listen. We don't like
the way you're teaching children
to become consumers
at an early age"?
Is there a mothers against
child credit?
- I cannot tell you
- the overwhelming response.
- They love the experience
- it teaches their children.
In fact, when they come back
time and time again,
now they start saving
their own money. Everyone--
- since the day we opened--
- said, "you should franchise.
- We can see you in every mall.
- Why didn't I think of that?"
- How long have you
- been in business?
About 3 1/2 years.
And how much are you
grossing each year?
Um, every year we've
increased our income 100%.
What was it last year?
We had basically 13,000.
We did have--
oh.
Kimberly, I admire
anybody who's passionate
about what they do.
But if you can't make
enough money from the store
to earn a living,
what makes you think that you
could sell this as a franchise
to somebody else?
Well, when we started out
- we did--we found a retail space
- we could afford.
Um, and we do think that
in a prime retail location,
it could do
nothing but flourish.
So opening a second location
would give us the experience--
wait a minute.
The first location
isn't making money yet.
So how long
are you going to let this run
before it makes a profit?
Going into this,
we didn't have any retail
or business experience,
and doing a lot of research,
we'd always been told--
about three to five years--
- it's gonna be tough,
- and you're going to struggle.
- Okay, you're in year four
- coming up now, right?
Correct. so it is something
we do think about.
- How much money have you put in
- from the beginning?
Um, about 120,000.
Where did you
get that money from?
Um, help from family.
Friends, family, small loans.
What is your history,
and--and why do I believe
- there's a passion
- you have in this?
- My mom and my sister
- are both teachers.
I adore children.
And I haven't found a...
Sorry.
Why are you crying,
Kimberly?
I'm not sure,
'cause I am passionate about it.
I haven't found a job
that I've wanted to do
since the day this opened.
I truly enjoy
the shoppers coming in.
I have a great time with them.
And I think it can succeed.
Kimberly, look,
I get the--the passion piece,
but you know what
I'd be crying about?
The fact you're
not making a profit.
I know. I-i don't like
to think that way
because I really
believe it can. Um...
Kimberly, I'm gonna
assume 50% gross margins.
You need to do 200,000
in this store to break even,
to pay yourself
and your brother
a salary.
- More, Kevin. They need
- to do far more than that.
- At least. I'm saying if you
- just took out 30,000 each.
It's a huge issue.
- From an investment
- point of view,
it has no merit...
Because you haven't proven--
before you build
a second store--
the first one makes money.
- I love kids, but they're
- the hardest things to sell to
- 'cause they don't have
- their own credit cards.
Once we get the parents
in the store,
- they're happy to let
- their children spend money,
and then they're picking up
things, as well.
There's nothing more evil
than a business
that doesn't create a profit.
- And the only way to fight evil
- is with evil.
You have to shut it down.
I'm sorry.
It's the truth.
- And for that reason,
- I'm out.
You still leave,
at the end of a year,
with $13,000, no salary.
You owe your relatives money.
I just feel like this
is a hobby that you love.
But by no means
is it a business.
I am definitely, uh, out.
Kevin, I-i disagree
that she should
shut the business down.
I think you've grown
the business, correct?
- 100% every year.
- Yes.
- So take--take the next year.
- Don't go franchise the business.
- I'd bring my son there to shop,
- and he'd probably love it,
but as an investment, it--it
wouldn't be for me, so I'm out.
Shame on you
for encouraging her.
Well, at this point,
you're failing.
But failure, to me,
is just an opportunity
to begin again more wisely.
I regret to say it--
I'm out.
It's an admirable idea.
But part of what Kevin
says is--is right.
All of what he says
is right. 100%.
But...
No, 122%.
It's hard to call something
geared to children "evil." Uh--
the business is evil.
But, really,
there isn't any data
that supports expanding
this business today.
I'm out.
Kimberly, I'm your
only friend up here.
- I'm the only one
- telling you the truth.
All this encouragement
for you to go on is folly.
It's a huge mistake.
Somebody's gotta tell you that.
It's not gonna be your family.
It's not gonna be
these people cheering you on.
It's me.
I don't think I-i don't
think we're cheering her on.
I think that--
I don't care, Robert.
It makes no money.
I think the only mistake
that Kimberly's making
is that the data is telling her
to perhaps change direction.
Is that another way of saying,
"shut it down?"
At the very least,
go home tonight,
write on a piece of paper
- the date that you
- have to be profitable,
and be honest with yourself.
You have got to
put a timeline on this
- because it's your family's
- money you're burning,
and that I find evil.
I appreciate
all of your, um, opinions,
and we appreciate your time.
Good luck.
I mean, she was
really passionate.
You know, that is an anchor
on her life. It's a tragedy.
Give her one more year.
Why?
- She made $13,000.
- That was her salary.
You can't live off that.
Well, maybe you can't.
She can't either. She's living
off her family's money.
The business wants to die.
Say that to
that innocent little girl
standing there looking at you.
That kid has no credit card.
That's the problem.
Seeing a family's money
being burnt,
and nobody dealing
with the truth...
- Even you guys were offering her - encouragement.
- Not true. Not true.
- It's terrible.
- I don't think so.
- I don't think anybody here
- gave her false encouragement.
- You know, I will be able
- to sleep tonight,
- and you will all
- toss and turn.
- I think you need passion
- to succeed.
There is no shortage
of passion in me
or anyone involved
in wee can shop.
So I think,
you know, our future is great,
and, um...
We're gonna be okay.
♪♪♪
I'm Tim stansbury, and this is
my business partner Erin whalen.
Erin and I are both
recreational cyclists.
- We met several years ago
- through a training group,
- and we've been close friends
- ever since.
A lot of our rides
are over 100 miles,
- and many times you need to make
- on-the-road repairs
in the middle of nowhere.
It was on one of these
when I got a flat tire.
- Tim came over
- and he helped me fix it,
and once we got going again, we
talked about having a solution
that would make on-the-road
fix-it problems a lot easier.
After doing a lot of research,
- we've come up with
- the perfect product and found
a really fun way
to market it.
Got your order for ya.
All right!
Been waitin' on this.
Cool.
- What's great about our product
- is, it's not just for cyclists.
There are so many other
everyday uses for it.
I think the sharks
are gonna love us.
- Everyone that we've ever talked
- to really likes the product.
- We just have to get it
- in front of them.
♪♪♪
Hi. I'm Tim,
and this is Erin.
- And we're with
- grease monkey wipes.
And for $40,000,
- we're willing to give you
- 40% of our company.
Have you ever found yourself
completely covered
in grease or grime
with no easy way to clean up?
For me, it happened
on a 100-mile bike ride.
I got a flat tire,
and after changing it,
my hands were covered in grease.
I tried to get the grease off
in the grass and on my shorts,
but nothing seemed to work.
It was then that Tim and I
decided it would be great
if there was a portable
cleaning product
that would easily remove
grease, grime, and dirt.
So we created
grease monkey wipes.
I'd like to pass 'em out
for you guys.
- Thanks, Erin.
- Sure.
- Thank you.
- Can I open it?
Absolutely.
Thank you.
- Grease monkey wipes
- are individually packaged
degreasing cleaning wipes
that utilize a natural,
nontoxic, citrus-based cleaner
to handle
heavy-duty cleaning.
Our wipes aren't any ordinary
antibacterial wipe,
as they're designed to clean
the heaviest messes
of grease and grime.
Take this nasty, disgustingly
greasy car engine part.
- Now if I was cleaning this
- with a normal wet wipe,
it just wouldn't work.
This is a normal wet wipe.
Nasty.
It's pretty gross.
- But a grease monkey wipe
- would clean her up.
What is the ingredient
that's breaking down oil?
Uh, citrus oils.
- When they squeeze the oranges
- for orange juice,
uh, the leftover oils are used
as a cleaning agent.
Tim, how did you
figure that out?
- Uh, we did a lot
- of product testing
prior to the product launch
and came upon one
that we knew was natural,
- and would be safe
- for the environment,
and wasn't harsh chemicals.
Not only can it
clean the grease,
but it can also clean permanent
marker, paint, and crayon.
So grease monkey wipes
are perfect
for that mom whose kid
is always getting into a mess.
Erin, can you hold your hand up?
I wanna see how clean--
yeah. absolutely.
- So I can smell the orange oil - from here.
- Correct.
It smells good.
It's quite concentrated,
isn't it?
- Yes.
- Yep.
If it's--if it's
a common, um, commodity,
a derivative
of making orange juice,
couldn't I make uncle Kevin's
cleany uppy wipeys?
Like what stops me
from doing this?
Well, first of all,
the portable nature
of the product is really
our unique, um,
selling point.
- Is that patented?
- No, it is not patented.
- Is there any patent here?
- No.
We decided not to patent it
really for two reasons.
One, we're
a brand-new company,
- uh, so we didn't really have
- the resources to patent it.
- And second,
- once you patent a product,
you have to put, um, basically
your formulas out there.
So it kind of protects us
and, you know,
gives us some lead time, um,
- to get some market share
- and get in the public mind view
before someone could copy us.
Don't these exist pretty much
- in a lot of
- different categories already?
The other stuff is very
industrial-chemical heavy.
Right.
- Yeah, that's one of
- our greatest differentiator--
is the citrus formula,
the citrus smell,
no harsh chemicals,
- and the fact you can buy
- one or two at a time,
- throw it in
- your glove compartment.
I like the color combination
you have there.
But is there any trademark?
Our logo is trademarked.
It's the best logo
I've ever seen.
Thank you.
I love the biking shirt.
Thanks for saying that.
- Actually, we get a good response
- from kids, too.
All this wonderful logo stuff
has translated
into what in sales?
- We've only had the product
- on the market for a few months,
and we have sold 7,600
grease monkey wipes.
And how--what--
in dollars, what is that?
- Uh, our gross revenue is--
- has been $7,400.
It's $1 a package?
Yes.
Do you really think
that's sustainable?
We--actually, we do.
I mean, there's 285 million
registered cars in the U.S.,
and over 6 million motorcycles.
So that exponentially
grows our marketplace.
Frankly, we've had
a lot of luck so far
- in little niche markets--
- for instance, cycling.
We have a 75% success rate
of stores that we pitch
this product to.
- So-- - and then they reorder
- again and again...
- Yes.
- Or it's too young to tell?
- Um--
- we've had approximately 40%
- of the shops
- we've sold into reorder,
- but a lot of them
- are really new
- and have just received
- their initial order,
- so they haven't
- b*rned through it.
And since we are new, we don't
have the huge name recognition
to really drive, uh,
that part of the sales.
Guys,
great presentation.
I love the branding.
I love you guys.
It's just not
a business for me.
I'm out.
Tim, I feel I'm being
fooled a little bit,
not intentionally so,
by the look you have going on.
- You look like a grease monkey--
- you know, the beard,
- the whole look--
- but I feel like your,
- uh, presentation's
- pretty buttoned-up.
- Do you have
- a business background?
Yes. I have an m.B.A.
In marketing and--
I won't hold that against you.
Okay, thank you.
I appreciate that.
Before doing this
full-time, uh,
- I've been in product management
- and product marketing,
so I do have
a solid business background,
but I'm more passionate about
- this area, and cycling,
- and things of that nature.
And it just seems to,
you know, balance out
- and work perfectly together.
- He's the real deal.
My problem with this
is the, uh, lack of
proprietary content.
Um, the--the only thing
that's unique,
and I think, Mr. m.B.A.,
you know this,
is that, um, your logo...
Is your logo--
is your logo,
and it's proprietary.
Nobody can take that away.
But everything else
could be knocked off.
I-I love the whole story.
I mean, it's terrific.
- But it doesn't have one of
- the most important attributes
that I look for
in an investment,
and that's proprietary content,
so for that reason, I'm out.
I look for something
that's very, very unique,
- and that has
- a unique selling proposition.
I just don't see this being
unique enough in the market,
so I'm out.
Okay. thank you.
I think you're, uh, did
a great job PR-presenting today.
Great logo.
I think your product's
a clever little devil.
Um... but I don't think I've
ever gotten my hands dirty...
And that's in the way of me
warming up to this thing.
So I'm going to... be out.
Well, thanks, Barbara.
Thank you. Appreciate it.
Well, Robert?
Robert is Tim and Erin's
last chance to make a deal.
Well, Robert?
These can be, uh,
in every glove compartment
all over the country,
all over the world.
- Well, just in my cars alone, - we could do--
- yeah.
He owns motorcycles,
boats, cars.
- This is your ticket. - Oh, stop it, Barbara.
- You're embarrassing me.
And the exotic
cars you have,
they don't have
a lot of extra space.
- So one of these small,
- little things would be perfect.
That's true. I...
- Erin, I really don't know.
- I just don't know.
I just don't... i-i...
You--you--
you did such a great job,
- and you answered
- all the questions.
- And, Tim,
- you're the real deal.
I just look at the, uh--
I can tell you, Robert,
Tim and I,
we work great together.
- I have my bachelor's - in business.
- Tim has his m.B.A.
We are very, very passionate
about this.
Absolutely.
We want to create
a global wipe empire
and we want this monkey
to be seen all over the place.
Love the monkey.
I promise,
if you partner with us,
we will not let you down.
Wow.
Wow.
I-I just--I'm--
I promise you, Robert.
- We will make this work.
- I promise.
Look at that face, Rob.
Come on.
Erin, one sentence--
why should I give you the money?
I promise you, Robert,
I will not let you down.
I will make grease monkey wipes
be a national,
fantastic, successful brand,
and a successful company.
And I'll even make it
an international brand.
So all those figures
were just U.S., too.
So extrapolate that
across the world,
and that would easily
get your money back.
I promise,
this is gonna be fantastic.
It already is fantastic.
Whether you're on board, that's
the--that's the question.
I'm on board.
Wow.
- Excellent.
- Thank you.
- I was just
- gonna jump back in.
I love this girl so much.
What do you say
I do it 50/50 with you?
Welcome on board.
Terrific.
Erin and Tim, you got
your 40,000 for 40%.
- Sounds excellent.
- Do we have a deal?
- We have a deal.
- Absolutely.
- All right.
- You can come in.
- Okay, you got two of us,
- 'cause I was regretting it.
Wow.
Thank you so much.
We won't let you down.
Promise.
Thank you. Good job.
- Thanks again.
- Wow.
- Great salespeople. - Appreciate it.
- Thank you very much.
- Thank you - so much, Barbara.
- Both of you, fabulous.
- Bye. thank you, guys.
- Thank you very much.
Great job.
You rocked it in there, Erin.
Great job.
- Wow. that was--
- wow.
- That was one good salesman.
- Wow.
- I was thinking - about getting in also.
- Oh, my god.
That's how good they were.
I gotta tell you.
She just kept--
- coming back and coming back. - That's how good they--
- you couldn't say no.
- It's not all about the money.
- You got a little heart - on that one.
You betcha. A huge heart.
She was great.
We're going to make this
a national brand.
- We're gonna make it
- an international brand.
It is going to be
on store shelves everywhere.
♪ 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 ♪
01x13 - Episode 113
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Shows entrepreneurs making business presentations to a panel of five venture capitalists (investors in start-ups) called "sharks" on the program, who decide whether to invest in their companies.
Shows entrepreneurs making business presentations to a panel of five venture capitalists (investors in start-ups) called "sharks" on the program, who decide whether to invest in their companies.