This is the shark t*nk,
where hopeful entrepreneurs
come seeking an investment
from the sharks,
five powerful, self-made
investors worth billions.
Last season, the sharks
invested over $5 million
in products and businesses.
This season, the stakes
are even higher...
Would you go to $4 million?
And the sharks are even richer.
What if I offered
you $1.25 million?
Hey, Mark, when I
become a billionaire,
can I negotiate with
people like that?
In the t*nk, the sharks
are ready to invest
using their own money... is
there a number you would take
to sell the whole company?
One check.
You don't have a
million-dollar business yet.
But only for the right person
with the right business.
I know that this is a
billion-dollar industry.
And if the sharks
hear a good idea,
they'll fight each other
for a piece of it.
Mark, you're saying,
"screw the other sharks."
Yep. that's kind of a bully,
"look at me, I'm the big guy
on the schoolyard" tactic,
and I don't like to play that way.
But first the entrepreneurs
must convince a shark to
invest the full amount
they're asking for or they'll
walk away with nothing.
I believe in this more
than anything else.
I had my eye on you
when I came in here.
We're about to make
you a millionaire,
just like that.
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.
Daymond John turned
rags to riches
with his clothing brand
fubu, which has grossed
over $6 billion in
worldwide retail sales.
Robert herjavec,
the son of a factory worker
turned technology mogul,
sold his first
Internet companies
for over $350 million.
And tonight--Mark Cuban.
This self-made billionaire
started out as a paperboy,
and now is a media mogul
and the outspoken owner
of the Dallas mavericks.
First into the t*nk
is Nikki pope,
with a money-saving idea
to help parents
entertain their kids.
♪♪♪♪♪
I'm Nikki pope.
I live in los
Angeles, California,
and my company is toygaroo.
Look what I have.
Yay!
I have 13 nieces and nephews,
and they absolutely
love playing with toys.
I call them my playtime
professionals.
The problem is, they get bored
with those toys really quickly.
That is what inspired me and
my husband to create toygaroo.
Toygaroo offers a
cost-effective way
not only for parents to
declutter their homes,
but to keep their kids
challenged and entertained.
My husband and I don't
have any kids yet,
but we would definitely like to,
and an investment from
the sharks would mean
that we would have the
stability we need
to start a family of our own.
My dream for my company is that
every family who has children
who love to play with toys
will use toygaroo,
and I really hope the sharks
will help make that happen.
♪♪♪♪♪
Hi, guys.
My name is Nikki.
My company is toygaroo.
And I am asking for $100,000
in exchange for 10%
of my company.
Toygaroo solves a problem
that millions of
families face every day.
I have 11 brothers and sisters,
and I am lucky enough
to have 13 outstanding
nieces and nephews,
all under the age of 8.
One thing that I've noticed
is that my siblings
are purchasing toy after
toy for their kids.
Their playrooms,
their living rooms,
their bedrooms
are cluttered with toys
that were purchased,
played with for a few weeks,
and now are left
completely untouched.
Toygaroo solves that
problem and more.
My company is the
Netflix for toys.
Consumers can go to my web site,
pick a plan that's
right for them,
fill their wish list with toys
that they would like to receive,
and I ship those toys
right to their door.
The great thing about
my company is,
when their kids get bored
with or outgrow those toys,
they just throw 'em in the box,
use the return label that we
provided, send 'em back to us,
and we send 'em their next box of toys.
Can I just see your snail?
I just want to see what the
quality is like. Absolutely.
And how many toys are
in your catalog?
We have over 300
different types of toys.
What is the
servicing of it?
You know, the toys come back,
obviously kids are not
the cleanest... right.
So you got drool on the
toys, you have bedbugs.
Would they have pee pee and
pooh pooh on the toys?
Maybe. there has
to be a process.
People have to be
hired to do this.
With our company, the cleaning
is the most important,
and so the--the toy
gets sanitized.
I sanitize it. And
you shrink-wrap it?
And we shrink-wrap it every time.
Who else is doing this, Nikki?
There is not another company
that is doing this.
So, n-Nikki, what about damage?
In six months, we had zero toys
that we had to
completely replace.
If a child does break the
toy, we sell it to the member
at a discounted cost. Nikki, walk
us through your business model.
How do you make money?
All of our members obviously
pay a monthly membership fee.
We have plans that start
at $35 a month...
Whoa. and they go all
the way up to $89 a month.
That's a lot. $35 a month?
Right. and how many
families pay you that?
Uh, we did a soft launch
with 500 members.
It was basically
like a test launch.
They were all paying $42 a month
for a box of toys
that's worth over $200.
So what you're
saying, basically,
is it costs them
about $500 a year.
Exactly, which is great,
because the average family
spends anywhere between
$1,200 and $1,400 a year.
And tell me again, the cost
per toy box that you ship
was $200, did you say?
Mm-hmm. and what's your cost on
the toys that you're shipping?
On the box of toys,
it's gonna be anywhere
between $50 to $85, $90.
That's two and a half months, you
break even, each customer. Right.
That's exactly right. Nikki,
how do you scale it up?
How do you make this
a big business?
All we need is more
marketing, more exposure.
In the small amount of time
that we had our 500 customers,
just by word of mouth,
we got a waiting list
of over a thousand
people ready to sign up.
Nikki, I think
that's a great idea.
Let me ask you this--if the
business begins to grow... mm-hmm.
Does it suck up a ton of cash?
Nikki, for every $1
million of sales,
how much do I have to put in
to buy inventory of toys?
Just in toys. Just in toys?
$64,000.
That's gonna cover
a year of toys.
Okay, Nikki. I've heard enough.
The problem is, you don't have
a million-dollar business yet.
You're asking me to pay
you as if your business
is worth $1 million,
and it's not.
But I want to be
an investor in it.
You have a good idea.
This is interesting.
So... this
is a leap of faith for me,
because I have to think
you're gonna grow this thing.
Do you have any partners? You're doing this
on your own? Uh, my husband is a partner.
And then I have a web designer
and two online marketers
that are partnering with me.
How much do you own?
I own 10% of the company.
You own 10%?
Who owns the rest?
- Where's the other 90%?
- We all own 10%.
And my husband owns
the--the bigger chunk of--
which is how much? He owns 50%.
Why does your husband
own a bigger chunk?
Um, because I--we--
that's how we decided.
How happily married are you?
I'm incredibly happily married.
Why would you, who came
up with this idea,
give so much to your partner? Why?
Um, he's worked with me,
and blood, sweat, and
tears with me every day.
Do you have a
prenuptial agreement?
No, we don't. Oh.
We were half and half
when we started, okay?
And you sold your piece
to all these others,
and you didn't
take any from him?
The way that we worked
the company is,
we wanted to make sure
our family as a whole
had the--the majority share, okay?
But to Kevin's point then,
why didn't you each give away some
of your shares? Yeah.
Um, I don't know.
Um, I've had a bad history
of speaking to people
who don't have controlling
of the company.
I'm out.
Nikki, you know,
I-i wish you owned more,
but nevertheless,
I'd like to make
you an offer here.
I'll give you $100,000 for 35%.
Rarely, Nikki, do I
not ask for control,
'cause I'm a control freak.
Okay.
But I trust you. You know
what you're doing. You do.
And I can help you immensely
in the toy space. Immensely.
Do you have the right
to sell 35%, Nikki?
Um, I have the right to do
whatever I want with
the company, yes.
I had my eye on you
when I came in here.
I have my eye on you.
Nikki, you are the first
person ever to walk
into the shark t*nk and
actually be attracted to him.
You know what?
He's got a tough exterior,
but I'm a Southern girl, and I knew
I could get him. And she's right.
- He's blushing. He is blushing.
- He really is.
Nikki, I've made you
an offer. What are you gonna do?
Nikki, just--just before
you--you answer that...
Mark, I see this as an Internet,
uh, logistics play. Would
you be interested?
I'd like to get in on
this one with you.
Would you be interested
in putting up more money?
Absolutely.
Because I think really
the key issue for me--
it's a web site, social media.
I'm in that world, but I
think you gotta go faster
than you're suggesting.
I agree 100%.
So Kevin's offering
$100,000 for 35%.
I'm thinking we
raise more money.
What do you have in mind?
I was thinking
$200,000 or $250,000
for maybe 35% or 40%.
I-I'd split $200,000 for 40%.
Okay.
Well, you just knocked me out.
I was gonna offer a lot less.
I'm out.
Two sharks are out.
Nikki has an offer from
Kevin for $100,000
for 35% of her company.
And another from Robert and Mark
for $200,000 for 40%.
I want you to
know something about me.
I am Mr. toy. I sold
my company to mattel.
I know it.
I lived in Fisher-price
for a year.
Those toys are my friends.
I speak toy.
I just think you need more capital.
Okay.
You gotta get going faster.
Okay. that's gonna be
your only advantage.
And you need someone with Internet
hypergrowth experience. Okay.
It wouldn't hurt to
start partnering
with some of the toy companies.
Let me tell you.
And there's 2 that own 90%,
and I know all their
board members.
Mark and I are offering
you $200,000... okay.
For 40%. Okay.
Mr. O'Leary's offering
you $100,000 for 35%.
What are you gonna do?
Nikki has two offers
on the table.
Robert and Mark have
offered $200,000
for 40% of her company,
while Kevin has offered
$100,000 for 35%.
But Nikki came in
targeting Kevin
for his experience with
big toy companies.
Where are you at
relationshipwise
with Fisher-price and mattel?
They're never gonna forget me.
I'll put it to you that way.
Are you holding at
your $100,000 for 35%?
I'm thinking.
I'm thinking.
Um, I don't know if you'd
be willing to go up anymore
on your number without
moving that percentage.
Um-- what's--why
compete with myself?
What do you want from me? She wants
you to bid against yourself.
Nikki...
I don't think the relationship
with the toy companies really--
oh, yeah? You don't think that matters?
No, no, no. Hang on a sec.
I never said it didn't matter.
It's not critical to get going.
And somebody who's been
through an online service...
Okay. that's built
around subscriptions,
someone who does
business with Netflix
and knows how they work, and
other online services... okay.
That is what's gonna
get you over the top.
We can get the door
opening to Fisher-price
or any toy company. Once
we have the customers,
I mean, my company
secures and services
some of the largest Internet
sites in the world.
Once we have the customers,
trust me, there's no problem
going to mattel or
these toy companies--
you know, there's so many
guys that provide...
Internet logistic services.
There's a whole industry
full of guys like this.
Dime a dozen.
I think I know exactly how
to build this business
and exactly how to exit
it, which matters to you.
That's how you
actually make money.
I would like $200,000.
Um, I-i was gonna ask you
guys if you'd consider
Are you saying, if I
match their offer,
you'll do the deal with me?
Done.
How about this?
I like what this guy brings,
so I'll split it with him.
I'll do that.
We have a deal. Done.
Wow.
You're out in the cold.
Ah-ha-ha! Robert,
he cut you out.
Robert, I'm so sorry.
I'm very excited. This is a great idea.
Me, too.
Thank you so much. I love it.
Robert, you were the toy
they were playing with
for a little while,
and she sent you back.
♪♪♪♪♪
Newfound respect. You broke up
with your potential partner
without even looking at him. Give
me some on that.
You know, it happens. And you
joined forces with the devil.
You're a savage, Cuban.
You're a savage.
- We got the steal of a lifetime.
- Why did she like him?
I've never seen anyone like him.
Whatever.
One of those mysteries of life.
Man, what it means for toygaroo
to be in business
with Kevin and Mark
is just, uh, it's the
perfect connections.
I had my eye on Kevin
when I walked in there.
Um, I'm thrilled.
I'm so thrilled.
It's gonna be great.
♪♪♪♪♪
Last season, Jeff Cohen
came into the shark t*nk
with his healthy energy
bars-- granola gourmet.
He left without a deal
and some harsh words
from Kevin O'Leary.
Jeff, let's be real.
You went bankrupt.
And no bank is going
to loan you any money.
To me, you're radioactive.
I'm out.
Let's see what he's up to now...
Kevin O'Leary calling anybody
radioactive on national TV
would be devastating.
But not for me.
Granola gourmet. This is Jeff.
Nothing has driven me more
than to prove Kevin wrong...
Oh, so you're ready to place
another order? Excellent.
And make him eat his own words.
♪♪♪♪♪
Today, we're doing a massive
scale production run
of about 80,000 energy bars
for safeway corporation.
That's $150,000 in retail sales.
They're gonna put our bars into
about 500 stores nationally.
Since the show, our
sales have doubled.
The outcry of support
from all of the "shark
t*nk" viewers was amazing.
We have a number of vendors
that we're doing business with
that have given us credit
where credit would not
have been available otherwise.
♪♪♪♪♪
It's extremely validating
when the big guys
like safeway and
vons and whole foods
put a product like ours
on the store shelves.
They're supporting small,
family-run businesses
at a time when our country
needs it the most.
He's bounced back.
That shows you the
power of "shark t*nk"
and why they call me Mr.
wonderful.
As a matter of fact, I think
I'm gonna send him an invoice.
I know the sharks missed
out on a great opportunity,
but I'm still very grateful for
my experience on "shark t*nk."
I'm proof that you should
never give up on your dreams.
My name is Matty sallin,
and I'm from San
Francisco, California.
By day, I'm a designer for
a big software company.
But in my spare time,
I'm always coming up
with new product ideas.
My product is a
device for the home,
and it's gonna change the way
Americans start their day.
Annoying alarm clocks are a
horrible way to start the day.
So I've created something
that'll make you
actually look forward to waking up.
My product takes a
unique approach
on waking up in the morning.
It's pretty much the
only one of its kind.
I've taken my product as
far as I can on my own.
I need the expertise, the
connections, and the money
that the sharks have to help
me get this mass produced.
That would be a dream
come true of mine.
♪♪♪♪♪
Hello, sharks. My
name is Matty sallin,
and my product is
called wake n' bacon.
I'm asking for $40,000
in return for 20% equity.
So... while I was getting
my master's degree
at N.Y.U. University,
I took an introductory
electronics course
where we had to make a
device for the home.
And I wanted to remake
an alarm clock.
And so I canvassed
my fellow students,
asking them what their
ideal way to wake up was.
Now I can't say
what the number one answer
was on television...
But the close second
was the smell and
taste of bacon.
And so, inspired, I
went home and I built
the world's first alarm clock
that actually wakes
you up with bacon.
Here's how it works--
so the night before, you
open up the chamber,
and you put in a couple of
slices of precooked bacon,
and then you set the
alarm for say 7:00 A.M.
The next morning at 6:50, the
clock silently turns on,
and it heats up the
bacon to a crisp
so that the smell
is really strong
and can wake up any bacon lover.
You can then actually
just roll over in bed,
open it up, and eat
the bacon yourself.
You can cook the bacon
and then eat it.
That's right. Shut up.
I'm serious. I built this,
and I thought it was a lark,
so I posted it on my web site,
and wake n' bacon went viral.
I've been inundated with
hundreds and hundreds of e-mails
of people who are begging
me to sell them one.
And so with the money
I'm asking for,
I want to redesign this
for mass production
and get a functional prototype
so that I can go pitch
this to retail partners
and manufacturing
partners and investors.
I've actually got
an artist rendering
of what it could look
like if mass produced.
Notice the hooves.
And this is what it looks
like with the tray open.
And the cord is a
little corkscrew.
I thought of everything.
Can we try it? Do you have
any-- oh, absolutely.
In fact, um, I've got
some for you right now.
Hey, Matty, I-i love
the face of the pig.
Do you have a slogan for this or anything?
Rise and swine.
Oh, lordy.
Matty, how long
does it take to cook?
Uh, it takes ten
minutes to reheat.
So, Matty, what happens when
we've sold 10,000 of these,
and the ten thousand and
first catches on fire
and burns a couple to
death in their bed?
Well, it needs--it-- it has to be u.L.
Listed,
which means it's
safe for the home,
for any electronics device. Yeah, but I'm
gonna ask you-- you think they want an oven
cooking bacon next to a bed?
Well, you know, there's the
easy-bake oven out there--
but not next to somebody's
bed at 2:00 in the morning.
You don't know where a kid's
gonna put the easy-bake oven.
If they--if they made
it through that,
then I'm sure that
I can find a way
to get this u.L. Listed
and safe for the home.
This is fantastic. Do you
have any idea of pricing?
Do you know what your
margins will be?
So it'd be about $13 per unit.
I mean, you're
asking for $40,000.
So once you burn
through the $40,000
to make the prototype,
where's the money gonna
come from to sell it?
I want the money so that
I can then pitch this
to retail partners and
manufacturing partners.
Matty, let me see
if I get this right.
This is a novelty item. Yes.
You think you can
sell how many units?
I'm not sure-- I don't
have a projection
of how many units I could sell.
At least throw out a forecast.
Say 1.26 million in
the first quarter.
Even if you're lying to me,
at least that's interesting.
You got no projections
whatsoever.
You got a pig box that's gonna
catch on fire and k*ll somebody.
I'm gonna be sued
into the stone age.
I'm out, but I'll give you 100 bucks for
the pig box. Is the pig box for sale?
Uh, no. It's the
only one I have.
Matty, I
think your idea is whimsical,
and it's a great novelty gift.
Thank you.
That's my compliment. I don't
think anyone really wants
to have bacon that close
when they're waking up.
I think they like smelling
it in the kitchen,
that mom's making, so I'm out.
All right.
I'm taking my piece of bacon and I'm out.
All right.
I like pig-- I like bacon.
Get on it. In or out?
I'm out. All right.
Let me ask you this, Matty.
What do you think the
minimum production run is?
Um, I think it's--10,000
is the lowest I could go.
So that means if your
full cost for these
is 15 bucks a unit basically?
it'd be $130,000.
Where is that money coming from?
That's where I need to partner
with a retail partner
or a manufacturing
partner or an investor.
You needed to know-- Mark, you're not
gonna put your name on this, 'cause I'm
gonna sue you into the stone age
after my bed catches on fire.
I know how to buy insurance,
so we can deal with that.
The bigger problem that
I have literally--
and being very interested--
is, you needed $170,000.
You only asked for $40,000.
I'm now asking for $170,000.
Mark, are you really interested in this?
I like the idea.
You really think cooking bacon
bedside is a good idea?
It doesn't matter.
'Cause if I had to guess,
the percentage of people
who would actually make
bacon, I'd say 10%.
And if had to guess
the number of people
who would make bacon
twice, I'd say 0%.
How many percent set
the house on fire?
Well, that's what I'm--
the point, though, is,
they're not gonna use
it to make bacon.
This is gonna be a present for
dad because it's so darn stupid.
And Mark Cuban
puts his dough into stupid ideas?
Is that what I'm hearing here today?
It's a gag gift.
The problem is, I'm not
gonna put up the $130,000.
That's the problem.
Because of that, Matty, I'm out.
All right.
Thank you for your time.
Okay. I'll give you 200
bucks for the pig box.
Listen, I think I'm gonna
save children by doing that.
We're gonna put that in my
museum of really bad ideas
that didn't k*ll people.
Okay. 300 bucks for the pig box.
Matty, thank you.
Thank you.
Good luck, Matty.
Good luck, man.
Thank you.
♪♪♪♪♪
I wonder if he has any
extra bacon on him.
So basically, Mark, if he
would've asked for $170,000,
you were in? I would've tried
to get you guys involved,
and I would've tried to sell you
all-- and we would've all said no.
I'm very persuasive. We
slaughtered that one.
People love bacon,
and bacon mania is
sweeping the nation.
I'm gonna find a way
to build wake n' bacon
and get it on every
nightstand in America.
Who believes his
product can be...
Oh, my god. The next big
trend in action sports.
That is so cool.
Wow. oh.
Oh! hello.
Oh, my god.
Whoa!
Dang.
Wow. wow.
Way to go, guys. Wow.
Wow. that was awesome.
Hey, guys. My name
is Brian Spencer.
I'm the founder and
chief test pilot
for vurtego pogo sticks.
And what we're looking for
is a half a million dollars
for 20% of the company.
All these kids and adults
that participate in things
like bmx and--and motocross
and stuff like that,
they're always looking
for the next big thing,
the next sort of evolution
of action sports.
This could be that thing.
We're gonna show you
a video right here
of some of the stuff kids are
doing around the world already.
By the way, don't
try this at home.
Uh, it's not something
that, uh, you should do
unless you're professionals
like these guys.
Let's take a look.
♪♪♪♪♪
Oh, cool.
Oh, that is so cool.
Essentially, what we've done
is reinvented the pogo stick.
How many have you sold? Uh,
we've sold about 7,000.
Nobody's injured themselves? Hey, you know,
skateboards-- people get hurt on skateboards.
These are, uh, deceptively safe.
And I say that because, um,
you're not dealing with speed.
You're dealing with
just going up and down.
And what's the typical retail price?
$330.
What's it cost to make it?
Cost about 100 bucks.
Obviously, there's
other pogo sticks.
There is a competitor that,
uh, uses rubber bands.
The biggest pogo stick company
in the world, by the way.
They sell millions of
pogo sticks every year.
We plan on replacing them
as the world's largest
pogo stick manufacturer.
Is this a
mass-market product,
or could you continue
doing what you're doing,
selling 300,000 to
but making specialized,
more exp--
'cause honestly, when you
told me it was only $300,
as a specialty product,
that seemed cheap to me.
The same reason why
most kids don't buy
a $5,000 mountain bike--
you know, their parents
buy 'em a $500 bmx bike.
Um, in order to make
money with this,
we do have to
approach the masses.
Why don't you stay in
that space, own it,
make fantastic margins...
We're gonna do both.
And build 'em in California and be
happy with that? We're gonna do both.
I mean, a strategy where
you want to go compete
and sell it in toy stores and
have mass distribution--
it's a completely
different business.
Look, I'll just tell you,
you can be a victim
of your own success.
I mean, when you're
cool and hip,
I bring you down to a mavs game--
we already are cool and hip.
Right. see, that's the point.
When you go mass market, you
loose a little bit of that.
To be able to maintain
your coolness
and segregate into an entire
different type of company
that goes mass market,
and to do it with, you
know, $500,000 only,
that's not an easy task.
Listen, you've got billions
of dollars of investors
on this side of these tables.
Everybody's in sync
on the same place.
They don't see your
vision for the low end.
What's the matter with you?
Don't you see it?
As I'm--as I'm
listening to you guys,
uh, I-i-i agree. It's
hard not to agree.
I'll tell you what
I want to see.
I want to see the price of
these things go up by 100%.
They're $600 now. I-i
keep telling people that,
and people say, "no, you gotta go
mass market," but-- no, you don't.
It's nothing short of a miracle
that some kid didn't get
k*lled on this already.
Now maybe I'm a protective mom.
Granted, I am. Okay?
Well, if it's not mother approved,
that's good for us. No kidding.
Yeah. I'm out.
Here--here's
where I'm at--
once you bring one of us in,
especially this guy, right,
then all of a sudden,
it's not about cool.
No. you gotta make some money. It's not
about anything else. It's about cash.
Well, coming to the sharks,
I was expecting, you know,
um, for the mentality
to be more mass market.
We gotta sell a ton of these things...
And make a million bucks.
That's even worse, though, Brian.
That's even worse. Be you. When
you try to please everybody,
you end up pleasing nobody.
That's why I'm out.
Brian, I don't want to
crush the pogo guys.
I just want to make money. Yeah.
You should get out there, bring
out the boost at $1,200,
every kid and his dog
is gonna want one.
They're gonna figure out how to
sell their sister to buy it,
and you're gonna make
an obscene profit.
But I'm not gonna give you $500,000.
I'm out.
I have to sound like
the rest of the guys.
The product is great, you're
doing sales, you don't need us.
I'm out. Okay.
Brian, you are the ultimate
in cool--cool product,
your hair is cool, you got
the whole look.
Everybody's right. The minute
you try to go mass market,
it's a guy in a suit
selling on wall street.
I wish I was involved in
some way, but I'm out.
Can I buy that one
before you go today?
Sure. make you a special deal.
You're a shark.
All right, Brian.
Appreciate it, buddy.
Good luck with everything.
Well, the sharks
didn't give me a deal,
but they gave me some great advice.
I love what they told me
about, you know,
maintaining that position
as the crème de la
crème in the industry.
With a unique solution
to protect against
germs and allergens.
Hi, my name's Joe Moore.
I am the president and c.E.O.
Of the first defense nasal
screen corporation.
And I'm seeking $500,000
for 10% of my company.
Every day,
people flood emergency
rooms, doctor's offices,
and pharmacies seeking relief
from inhaling contaminated air.
And one out of every five
commercials on TV today
is about the treatment
of nasal allergies.
That's why I invented first
defense nasal screens.
First defense nasal screens
are the first and only
lightweight, non-inserted,
almost non-visible nasal
screen ever invented,
and they have been
clinically proven
to reduce the inhalation
of allergens, pollens,
pollutions, pet danders, molds,
viruses, and more by up to 99%.
And the next time you're
faced with unhealthy,
contaminated air,
remember, don't get sick.
Just peel and stick.
Thank you. Any questions?
Are you kidding me?
Um...
Um, I'm--I'm--I'm not.
Um, I just know that, like I
said, how big this really is.
$500,000 for 10% of the company.
How many have you sold?
Actually, right now
about 1.7 million.
million in total sales?
How much do you sell them for?
Wholesale was 60 cents.
So your sales last year
were how much, Joe?
Actually, we just--we're not--
we haven't gone to market yet.
Sorry, I'm confused. You're-- wait.
Wait a minute.
If you haven't gone to market, how have
you sold 1.7 million? Um, actually,
we have one big client out
of the United Arab Emirates
that has actually put in their
first order and given us
a contract for $8 million
over the next 6 years.
So you have an order for $8 million?
Yes, sir.
Right now?
Yes, sir. Matter of fact...
I have the contract right here.
That's a prepared man right there.
Good for you. Thank you, sir.
Well, all of a sudden, you
don't look that funny
with that stuff stuck up your nose.
Can I see that? Yes, you can.
You know, you don't sound like the bozo
I thought you were. Yeah.
Is this a product that perhaps
is--is going to be very popular
in other societies, where
face masks are more prominent
than they're here stateside? Definitely.
This is a worldwide product.
'Cause, I mean, you know,
you're wearing them right now.
I can see them. It's probably
an issue for many people
that are gonna look at that
and say, "what have you
got stuck up your nose?"
May I see the actual product?
Yes, ma'am.
I'm sorry. Thank you.
Robert. "the distributor
guarantees that he'll order 1--"
am I reading this correctly--
"1 million, 500,000 sets"?
Yes, sir. That's for
Saudi Arabia alone.
They've already ordered those. And
how much is he guaranteeing you?
Uh, he's guaranteeing
me the 8 million
over the next, um, six years.
How does the filter work?
Basically, how the filter works...
Is, as you breathe in,
it's a non-woven
material, so it closes,
and as you breathe out,
it flushes itself.
Does it stop viruses,
bacterial in-- it does.
What's to stop you from taking
the germs in through your mouth?
That's a great question.
through our nasal passages.
Also, viruses do not grow in
the mouth, the esophagus,
or lining of the stomach. They
grow in the nasal passage.
Is there a patent
that protects this?
Yes, sir. I have--
what's patented?
Uh, we have a patent pending
in the United States,
Canada and Europe, and
have been for three years.
And what would you
use the money for?
The money for right now is so
that I can keep producing it
because of the raw materials
I have to buy upfront.
So basically, you
need the $500,000
to make the order. Correct.
Okay, tell me if I'm
putting these in right.
So I just take it-- the best way to do
it--put it on your finger like a contact,
touch your nasal passage, slide
it around on the outside,
slide it on the inside.
Joe, let me ask you a question.
Why not just go license it to
one of the big drug companies?
Um, because I-i did
that originally.
I went to one of the biggest
in the United States,
and they told me we were
actually a competitor,
and if they took the product,
they would shelve it.
Because why would they
prevent it for $1
when they could
treat it for $14?
How much money have
you put into this?
We have almost a mil-- $1
million into this product.
And where'd that
money come from?
Um, about $600,000
of it was mine,
and the rest is from
friends and family.
I think I'd have a very hard
time understanding at all
what the product is about
unless you had these big
photos with the noses
and unless you're standing
there pitching it,
because I think the cost
of educating people
is the big kahuna here.
Joe, based on that, I'm out.
Okay.
I'm intrigued, I gotta tell ya.
Let me throw an
offer out to you.
I'll give you the $500,000,
and I want a 15% royalty
on every unit sold until
I recoup my $500,000.
Okay, just the royalty, no equity?
Are you kidding?
Of course I want the equity.
I took the risk.
Now here's my
equity-- I want 20%.
You have an offer from me.
What do you want to do?
I would definitely like to hear
what everybody else has to say
before I would even consider-- they're
not interested. They're not interested.
They never told
me they were out.
Because of their silence, you
know they're not interested.
Not necessarily true.
Not necessarily true.
We can work together on this.
Hmm.
Okay, you got a deal. Yeah.
I like that.
I like how cuddly they are,
but I want to give you
$800,000 for 30%...
With 10% royalty.
Oh, come on.
Screw that.
I'll give you $1 million for
the whole company right now.
I... can appreciate, uh,
and I appreciate the
offer, I really do,
but, um, I would definitely-- you
just turned down $1 million.
Yes, sir. I-i-i couldn't
take $1 million.
I know that this is a
billion-dollar industry.
Is there a number
you would take...
To sell the whole company?
One check. Not, uh,
without a royalty? No.
With a royalty? Very possibly, yes.
What's the royalty?
I believe that with
the statistics
and the research we've done,
the royalty would have to be 10%.
Whoa.
And then what's the
number on the company?
I would like to stay a part
of it, to be honest with you,
because it's my passion. I, um, I'm gonna
show you something. No, I don't wanna see.
I am a cancer--i am a canc--
I am a cancer survivor. Oh.
I'm a cancer survivor. By the
time I was 19 years old,
I'd been through the army, I'd
been through the marine corps,
I'd been halfway
around the world.
I fought all my life in
doing different things.
I believe in this more
than anything else
because I've gotten testimonials
from people saying,
"you've changed my life, you've
changed the quality of my life."
I'll give you $1 million.
I want 30% of the company
also 10% royalty until
I recoup the money.
Joe, I'll give you $2 million
for the whole business...
And the 10% royalty you
asked for back to you.
I just love this whole thing.
We're about to make you a
millionaire, just like that.
But I have three offers
and I'm kind of confused.
I'd like to have 'em a little
bit more clear if I can.
The first offer was
$500,000 for 20% equity,
you're still the 80% owner,
and my partner Mark and
I apply a 15% royalty
just till we get
our $500,000 back.
That's all.
And that royalty--
the second--
excuse me. And the second
offer is the same thing.
Excuse me. Before you start,
let me finish with one thought
that's gonna stick in
the back of your mind.
There's only two sharks here
that have ever sold a company
for over a billion dollars. I'm one.
Cuban's the other guy.
All right? It's billions. "B."
Everybody else is an "m."
Millions. small. Big.
Big difference.
You want the
billion-dollar partners
not the small fry.
I've sold billions.
I've sold billions of
dollars worth of product,
and still doing it now,
actually, in Asia right now.
So I have the offer
of $1 million,
and the same royalty fee,
but less than theirs--
recoup the money.
Joe, a fundamentally
first difference
in the three offers is, one is
to sell your whole business.
My offer is $2 million
for the entire business.
You get a 10% royalty.
You're the guy that runs it.
Any interest in selling the
entire business today,
which is the road that
I'm trying to go down?
Not for $2 million.
Would you go to $4 million?
♪♪♪♪♪
Any interest in selling the
entire business today?
Not for $2 million.
One is the largest
sum of money offered
in "shark t*nk" history.
Would you go to $4 million?
Um...
I would consider taking the very
first deal you were offered.
You own 80% of the company.
We only get 20%.
All right? We're not pigs.
We're sharks. We just
want our money back.
Is--is--is that
your final offer?
Think about it. We're leaving
you with 80% of the upside...
So you're gonna make a
lot more than $4 million
down the road with
us as partners.
I understand that.
I understand that.
That's why I-i haven't said yes.
That's why I'm--
Joe, are you gonna sell
this business today or not?
Possibly. very possibly.
I b--
believe that, um, the $4
million is a little low.
But I think we're very close.
Um, I think if you went
to $5 million and 15%,
and whether you want
me as an employee,
which I would really like to do
as an employee and contract,
because I want my royalty
to be as much as I can.
I can get my mind
around the $4 million.
I can't go up to the $5 million.
So I'm out.
Dang.
Listen, would you
excuse us for a moment?
Okay.
So listen, it's a very simple
discussion amongst us.
Very often, the best strategy is
to take a competitor like you,
even though sometimes, I
find you distasteful--
I say bring him into
the deal at our price.
Get him backed out of this.
What do you think, d.J.?
Uh, but we need to go up on the equity.
You guys wanted 20%. That's interesting.
Well-- bring him for a
third and go up to 25%?
Well, no, no, I-i think
you gave away the farm.
You--you--it was so
unkevin-like when you said
our money back.
Once we bring daymond
into our tent,
we--we're the only offer left,
we can change our deal.
So what do you want to do?
♪♪♪♪♪
Okay, before
you say anything,
you know the currents
constantly change
in the rough waters
of the shark t*nk.
That's why I love this place.
Your enemies become
your friends,
your friends become your
enemies, and sometimes
they bite you in the hiney
and sometimes they don't.
So what's happened is,
daymond has decided to join
Mark and I into one offer.
It's great news for you because
there's gonna be more money,
but I'm gonna let
my partner, Mark,
explain exactly how
great it is for you.
Okay, so what we're going to do
is raise our offer to $750,000,
and then we're gonna ask
for 30% of the company
and a 10% perpetual royalty.
That's our offer.
Um, I would consider your offer.
I would--the only thing
I would ask you to do
is if you'd go to $1.2
million, for the simple reason
that will give me enough to fill my
first order. We don't have to do that
because if we own a
piece of the company,
we're your partners, then
we have to finance you.
But we don't have to
pay for it right now.
If you need more money to fund
new orders and grow the company,
you think we're gonna let
our equity disappear
because we couldn't fund a new order?
Of course not.
So you get us without giving up
any more equity with this deal.
Don't sell yourself short.
Joe, listen... Joe, you
gotta say yes or no.
This--life is like business,
it's 20% what happens to you
and 80% how you respond.
You have a moment right now
to take this deal.
Will you take it?
Does it come with season tickets?
Absolutely.
- Then you got a deal.
- Amen.
Congratulations.
Thank you. Congratulations.
Congratulations.
really great job.
Appreciate it. I'm looking
forward to working together.
- Absolutely.
- good job, Joe.
Thank you. Pleasure meeting you.
Did you give
him the season tickets?
Think about that. That's remarkable.
I just offered a guy
$4 million, which is about
as high as I was gonna go--
but that's the
beauty of this show.
This guy we've never
seen before walked in
and had the choice to be a millionaire...
And he stuck with it.
And he stuck to his g*ns and
he believed in himself.
That's what makes
this country great.
I feel warm and fuzzy. I
just made some money.
I would have to say, to
turn down $4 million
was probably something I
never thought I'd say I did.
It was something I
never thought I'd do.
But at the same time,
at the end of the day,
I still got three-quarters
of a million dollars,
and I still own 70%
of the next biggest thing
that this world's ever seen.
02x02 - Episode 202
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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.