14x19 - Episode 19

[bunniefuu]

Narrator: Tonight, Gwyneth
Paltrow, Oscar-winning actress

and founder of lifestyle
juggernaut Goop,

returns to the t*nk.

You guys are brutal.
This really is a shark t*nk.

So, Sharks, are you
ready to spice things up?

What decade would we
ever see our money back?

Is there a nicer
way to say that?

I want a deal, damn it!

The valuation is crazy.

Tell us what your sales
were since you started.

We lost $800,000. Wow.

And you should do the
deal for a million reasons.

Ay, Chihuahua,
caramba! [ Laughs ]

Your superpowers combined

could really help us
take this to the next level.

If you don't raise your
prices, you're in deep doo-doo.

Ooh! This is nerve wracking.

[ Greiner laughs ]

♪♪

Narrator: First in the t*nk
is a unique way to remember

your passed loved ones.

♪♪

Hi, Sharks. My name is Justin,
and this is my grandfather.

Gramps collected hobbies.

He loved painting
and singing and golf

and tennis and woodcarving.

And because of this,
from age 5 years old on,

everybody knew him as
"Fid," which is short for Fiddler.

My grandpa always told me
the most important thing in life

was to love everything I do.

And I've really based my
life based on that advice.

Gramps passed
away a few years ago,

and his death was
hard for the whole family.

Receiving his remains
after the cremation

didn't make it any easier.

[ Exhales deeply ]

Sharks, this is how 1.9
million Americans every year

receive the remains of their
loved ones following cremation.

This zip-tied plastic bag
is how I received Gramps.

And that experience was
awkward and uncomfortable.

Wow. And every year,

millions of Americans

have poor experiences
with ashes and urns,

just like I did.

And to avoid
them, they're hiding

one of their most
treasured possessions

in basements and
closets and garages.

And so my company,
Parting Stone,

invented a new form of
human and animal remains.

Following the cremation,
Parting Stone's service

returns the remains in
a form that resembles

a collection of smooth stones.

The appearance of
each collection of stones

varies naturally from
person to person,

returning different hues
and textures and colors

for each individual.

Now families tell us
about how they were able

to hold their loved ones again,

share the remains
with their community,

and spread the stones
in meaningful places.

Solidified remains are giving
families a comforting way

to remember their loved
ones every single day.

Sharks, I'm here
today seeking $400,000

for 5% of my company. Wow.

I believe that our passed
loved ones deserve better,

and your investment
can bring a new option

to the millions of Americans
who are struggling through loss.

Wow. So, Sharks,
in front of you,

there is a box
containing one stone.

Okay, so who's in the box?

These are the remains
of my grandfather.

Oh.

[ Laughter ]

It really is Gramps?
It really is Gramps.

I just want to say, I think
you're taking on something

that's a very uncomfortable
subject for people. Yes.

I mean, you're transcending

this idea of how we
relate to ashes or death.

My father was cremated.
I had the same thing.

I didn't know what to do
with the ashes for a long time.

But I just applaud you
for taking on something...

Yes. Well said... that's
new and uncomfortable.

Thank you. But how do you avoid

receiving the ashes,
Justin, if you have to then

mail them out? So,
our primary business

is working directly
with funeral homes.

Cuban: So what do you do with the
remains? What does this process cost?

It costs... Retail
for a person is $995.

And does that include
shipping and everything?

That's with shipping. Corcoran:
How many stones do you get, Justin?

How many stones
do I receive? Wow.

A person usually results
in about 40 to 60 stones.

How many funeral
homes are you currently in?

We're currently in
about 600 funeral homes

in the United States and Canada.

And how many are
there in the United States?


is B2B through funeral homes.



I have a company
called Basepaws,

which does DNA for cats. Mm-hmm.

And we've got hundreds of
thousands of registries of cats

that we've done DNA testing on,

and we know when Fluffy
is going to go snuff city.

How many stones would
Fluffy turn into on an average,

let's say, 12-pound cat? Gosh.

Yeah. So the average
cat is maybe 3 to 5.

And what do you charge
to turn the cremation

of a dog or a cat
into your stones?

Retail, dogs are $595
and cats are $495.

And what's your cost
to make each of these?

So B2B cost is $300.
And that's for a human?

That's for a human.

It's 95% humans,


And so we think there is a
huge opportunity in the pet space.

Justin, we've got to get
into the numbers now, okay?

Yeah, yeah, yeah. Let's
talk about the last three years.

Why don't you ramp
it up for us? Yes.


$350,000 in revenue.

Did you make any money in 2020?

No. How much did you lose?

We lost about $300,000.


$850,000 in revenue.

Okay. What did you make on
that or what'd you lose on that?

We lost $800,000. Whoa.

Wow. Whoa.


track for $1.3 million.

Yeah. And our loss
is about $800,000.

So why the losses? This
business model is broken.

You're not charging enough.

Let him explain, though.
Why these extreme losses?

We've had engineers
come through and say

the losses can be fixed
through automation with money.

So we've raised
money in the past.

We've raised $2.5 million total.

Hello. And with this
money that we're raising,

we're going to be spending
that on automating our process

so we can get to a
place of profitability.

How many partners?

So there's probably
about 55 angel investors.

Oh, hello. Justin,
I'll simplify things.

I invested in a company
called Eterneva.

We turn ashes into diamonds.

We're a direct
competitor with you.

And so for those
reasons, I'm out.

Okay. Thank you. Well, I
just can't get past the losses

and the raising
that you've done.

And for that reason, I'm out.

Okay. Thank you. But thank
you for your presentation.

We're about two years away

from reaching a
break-even point.

Not at that pricing, you won't.

You're going to have
to raise your prices.

Yeah, if you don't raise your
prices, you're in deep doo-doo.

Why isn't it $2,000?
Then you'd make money.

Well, you have to test
price resistance, right?

Listen, I think you're going
to be really successful.

When one is in grief
over a loved one,

you know, especially
in that first year,

you'll do anything
to bring them back,

to kind of get them
personified and back.

And grieving is
such a long process.

And to have something
that's beautiful is so fantastic.

I have no doubt
that it will take off.

It's a little out of
my wheelhouse,

and I do think the
economics are hard.

So I'm out. Okay.
Thank you, Gwyneth.

So I think what you're
doing is really genius.

But your numbers.

I was hoping that I would
hear something fabulous.

And you have 55 investors.
It's a lot of investors.

But Kevin and I
were just talking.

He finds it interesting, too.

Yeah.

There's two areas
that I invest in

and have for decades...

Weddings and death
recession proof.

People die every day, regardless
of what the market's doing.

That's what I like about death.

And blowing up the pet side.

Going together, we'll
give you the $400,000.

We want 20%. 10 each.

That's what gets
us up in the morning.

And you should do the
deal for a million reasons.

Yeah. So we have other
investors to consider.

I can't do 20%. I can
do 7% for $400,000.

I wouldn't get out
of bed for 3 1/2%.

I wouldn't even die for that.

If you were sitting
in our shoes, right,

and we look at this, you're
losing money, right? Mm-hmm.

We're thinking, well, what year

or what decade would we
ever see our money back?

So do you have a counteroffer
that you could offer us?

And one other thing,
Lori... Hold it right there.

I think I'm going
to come back in.

I like everything I'm hearing.

♪♪

♪♪

Narrator: Three Sharks are out.

Justin has an offer on the
table from Kevin and Lori

for his ashes-to-stone
business, Parting Stone.

But Barbara has
had a change of heart.

Corcoran: I'll give
you the $400,000 cash,

not for 7%, but for 10%.

But I'd like a $20
royalty per dead person

and per dead animal.

[ Whispers ] Oh, my God.

Is there a nicer
way to say that?

Greiner: I know, really.
Right? How else could I say it?

I couldn't think of any other...

Per carton of ashes. So are
you willing to play with royalties?

I am willing to
play with royalties.

Specifically on
direct-to-consumer sales.

Okay, so if Kevin
and I were to give you

the $400,000 cash, 10%,

and do that same
royalty structure,

but you'd get two Sharks.

O'Leary: So we'd
do the same deal.

We'll match Barb,
but you get two.

So you'd come in for
$200,000 each? O'Leary: Yes.

Right. You haven't
questioned the royalty.

And then it would be the 10%...

Excuse me. The royalty
expires once I'm repaid.

I'm not sure
about their royalty.

I think that Kevin and
I should match that.

Because I like this,

and I like what you're doing,

and I want to get behind it.

It's the same deal. Mm-hmm.

It is. But you get two Sharks.
Which effectively makes it a loan.

You get two Sharks versus one.

But he also has already
a quite huge list for cats

because of Basepaws.

Would you guys
consider a higher royalty,

but on direct-to-consumer
sales only?

We think that the impact
that you guys can have

is on the
direct-to-consumer sales.

I would do that a
little bit differently.

I would say we do
the $400,000 cash,

Kevin and I, 10% equity,

and we'd still like
the royalty on both,

but we'll come down on your
business-to-business royalty.

Let's do $20 on consumer
and drop down to,

let's say, $12.5 on the other.

But we're going to
blow up your DTC.

Okay. I mean, blow it up.

That's a deal I'd do.

Crowe: Barbara, from
the royalty standpoint,

is that something you
would consider, as well...

The same structure as them?

I'll be honest.

I'm going to possibly go out.

Okay. Hold on. Okay.

I am into this royalty structure.
Why are you still talking to Barbara?

Come on, Justin.

You gotta know it.

Gramps is speaking to me.
He's saying, "Barbie..." [ Laughs ]

No, I've been holding Gramps
in my hand the whole time.

What do you think, Gramps?

♪♪

We'll take it.

Good. Whoo! O'Leary: Yes. Okay.

Oh, there went
my pen. [ Laughs ]

Oh, my God. I thought
Gramps went across the room.

Congratulations. That's a
spectacular idea. Thank you so much.

Looking forward to working with
you. Really excited to work with you.

Great presentation.
It's so good.

Really excited to
work with you. Yeah.

What a dream. Good luck.

Thank you guys so much.

Now that we have Lori
and Kevin on board,

we're going to
utilize their teams,

their expertise to blow this up

and make sure everyone
in the United States knows

that when you choose cremation,

you do not have
to receive ashes.

There is a
comforting alternative.

I got to tell you, I
like the idea so much,

I'm going to take it
to Adelle at Eterneva

and see if she can
do the same thing.

Oh, well, isn't that nice
of you? Why wouldn't I?

Look, what am I going to tell an
entrepreneur? You guys are brutal.

This really is a shark t*nk.

Yeah, they're brutal, right?

Unbelievable.

Narrator: In season 11,
we watched Rachel Connors

and Joe Demin make a
deal with Daniel Lubetzky

for their hammock company
with a social mission,

Yellow Leaf Hammocks. Yes!

Let's see what
they're up to now.

Connors: From the
first time that Joe

brought a hammock
home from Thailand,

we thought if we could
sell 2,000 hammocks a year,

that would be enough to provide

for this whole village of women.

And now we're selling over


Demin: In the six years
before "Shark t*nk,"

we had done $3.2
million in sales.

In the three years since
closing a deal with Daniel,

we've done $15.4
million in sales.

We're now at 400 weavers.

We've been able to infuse over
$2 million to the communities

where our hammocks are made.

Some of our weavers
are even sending

their children to college.

The more hammocks that we sell,
the more women we can employ.

It's such a simple way of
bringing people out of poverty.

Based off feedback from
"Shark t*nk" viewers,

we quickly realized
they wanted the ability

to take the hammock everywhere.

And we created the
Vista to do just that.

Vista is much more affordable,

you can travel with
it anywhere you go.

I think it's a game-changer.

Daniel is very confident
that Yellow Leaf Hammocks

is the next great
American lifestyle brand,

and he will not let us rest

until there is a hammock
in every home in America.

We have so many channels
that we haven't even pursued.

This is just the beginning.

I think you have a $100
million company in your hands.

Connors: Oh, my gosh! This
looks incredible. Demin: Incredible.

Today, we're stepping onto
a Virgin Voyages cruise ship

to see the very first
Yellow Leaf Hammocks

retail shop.

We love your
commitment to purpose

and empowering women.

Demin: Having
these retail stores

will allow us to
reach $20 million

in lifetime sales this spring.

Connors: And there's
a Yellow Leaf Hammock

in every cabin on every ship.

This means over a million
people a year are getting a chance

to experience how comfortable
our hammocks really are.

I didn't fully understand
how much "Shark t*nk"

was going to change the
impact that we have in the world.

To know that our customers
are supporting our mission

in this natural way,

it's beyond anything
that I can even describe.

You know, you can make money

and you can have
a positive impact.

Those two things should
be able to go hand in hand.

And we have absolutely no limit

to how far we can grow.

We want to say thank you.

All: Thank you!

♪♪

Narrator: Next in the t*nk is
a better way to travel in style.

♪♪

♪♪

Hi, Sharks. My name
is Ashley Sharma,

and this is my fiancé and
co-founder, James Baker.

We're from Oakland, California,
and we're seeking $200,000

in exchange for


Sharks, do any of you remember
the perils of commercial travel?

Oh. Mile-long sprints
through the terminal

to make your flight,

heavy bag on your shoulders
and back weighing you down,

or death-gripping your
luggage and bag handle

to try to keep it all
balanced together.

Not to mention,

I keep my prized possessions
in my personal bag.

And let's just say

[Strained] I have a lot of
prized possessions. [ Laughter ]

But do I have to
carry this huge bag

through the airport all day?

Naturally, my practical,
lovely lawyer fiancé

suggests a boring
bungee-strap-looking thing

to take the load off.

No, thanks.

Those things do not
make me feel put together,

and they definitely don't go
with my airport outfit. [ Laughs ]

If only there was something
functional and stylish

for the modern
traveler out there.

Well, now there is.

Introducing the
Cincha Travel Belt,

the world's most
stylish and functional

add-a-bag strap that
secures your personal bag

to your carry-on luggage.

The travel belts take the
weight off your shoulders,

making your trips more
comfortable and chic

as you get from gate to
get away and back again.

Using the travel belt
really is as simple as

slide, cinch, and go.

So, Sharks, who's
ready to help us

literally and figuratively...

But mostly literally.

Together: secure the bag?

So we have some
product in front of us here?

Don't leave me
hanging. Yes. [ Laughs ]

You have an assortment
of our best-selling products.

We actually monogrammed
our moneymaker for you.

Paltrow: Wow. Greiner: It's
very heavy duty. It's very quality.

It reminds me almost of like a
seat belt in a car. Sharma: Totally.

Greiner: It's that thick
and heavy and durable.

Will you tell us a little
about your background?

So, a bit about me. I
grew up, to start, homeless.

I'm the oldest son
of a family of six.

You were successful
if you didn't go to jail

and you got a job.

Any job would do.

You are a success. Wow. Amazing.

What I did have was two
parents who never let me

feel sorry for myself
because of my circumstances.

They never let me use that
as an excuse for my behavior,

for my appearance,
or for my ambition.

I literally went from 16...

We had just got off the streets

into Section 8 Housing.


The first of the family to go.

And then by 21, I was
at Harvard Law School.

Oh, my gosh. Wow. Good for you.

Baker: First in my family to
do that, as well. [ Applause ]

Flash forward a
couple years... Wow!

I'm working as an
attorney at a great firm,

and I'm stable, I'm comfortable,

but in the back of my mind,
I'm thinking, "You know what?

My parents never had the
luxury to take any career risk,

to take risks at all."

Every decision they made was,

"How do we pay the bills today
to feed our kids?" Of course.

And I thought, "You know
what? I can take a chance

and still hopefully land
on my feet afterwards."

You know, this started out
as a box of belts, you know.

But every day
developing the business,

seeing the pride Ash had for it,

was really motivating
and kept us going.

Ash, what's your background?

My background... So, I
grew up in San Francisco

from two immigrant parents.

We lived in a
one-bedroom apartment

for most of my childhood

because they thought
investing in our education

was the most important thing.

Unfortunately, I wasn't
that great at school.

[ Laughs ] I was thinking in
Spanish and speaking in English.

So I struggled.

The fact that I'm here, like,
presenting and speaking out loud

is, like, such a
"pinch me" moment

because I hated
raising my hand in class.

So I knew things weren't
going to come as easy.

I knew that I was
going to have to hustle.

So, fast forward
I went to college

to study marketing,

and since then, I've been
working at some CPG brands,

many of them which are startups,

and that startup
experience has really helped

while we are trying to
build our own company.

Tell us what your sales
were since you started.

Give us kind of the ramp. Yeah.

So 2019, we had $5,000 in sales,


then travel shut down. Mm-hmm.


about $250,000 in sales.

And then year-to-date, we are at
$830,000 in sales. Greiner: Good for you.

Where are you selling?
Are you direct to consumer?

D2C. Yeah. You're D2C only?

Yeah. So walk us
through the stat.

What does it cost you to make?

What is your customer
acquisition cost?

What do you sell it for?

I've looked at all the pieces...
Beautifully made, by the way.

Thank you. Stylish.

Really kind of fits with
my persona... fashionista.

[ Laughter ]

So, you know... He wears the
same suit every single show.

It's, yeah... So for
our flagship product,

the travel, the
original travel belt,

we make it for $4.61,
landed, at the warehouse.

We sell it for $40.

What's the customer
acquisition cost?

Yeah, so the customer
acquisition costs

vary between $27.50 and 29 bucks

on an average order
value of about $61.50.

So it's high.

It's definitely something
we want to get down,

but we've still
been able to grow.

What is your strategy
in terms of channels?

Are you going to
go into wholesale?

Like, how do you envision growing?
Sharma: Yeah. That's why we're here.

We want to get into retail.

We want to get
into airport stores.

Are you the only team members?

We are the... It's just us.

Just the two of you.
So it's just us two.

We're still working
full-time to pay the bills

and also prove that if
we're hungry enough

to grow this thing with jobs,

we can grow even
further without those jobs.

I would just like to say,
like, I'm super impressed

with what you guys have built,

but it's a little out
of my wheelhouse

as an investor.

I think I'm out,

but I just... I love you guys.

Aw. Thank you.

Thank you so
much. Appreciate it.

Congratulations on what
you've accomplished.

I think it's an
amazing business.

It just doesn't fit,
really, to my strengths.

So for those reasons, I'm out.

Thank you, Mark. Thank you,
Mark. Cuban: But congrats.

We appreciate it. You blow
me away and amaze me.

Thanks, Lori. You've
done a fabulous job.

It's great quality. Thank you.

But I actually have a
partner in a business

that makes something
that is similar.

But I wish you the best
of luck. Thanks, Lori.

I'm sorry. I'm out.

Thank you, Lori.
Thank you, Lori.

Appreciate it.

What I've come to
so much appreciate

about any hardship

is they make the best
entrepreneurs. Cuban: Yep.

I can remember,
in grammar school,

not being able to
learn to read myself

'till I was barely starting
in seventh grade.

I sometimes even
think my whole career

has been one long attempt
to prove I'm not stupid,

as insecure as that might sound.

But what a gift it is to
have an early struggle,

to come through it... Yeah.

and then to play it
out in the real world.

I think you have the
ambition and the know-how

to take it where you want to.

I think you're already
past the first hump,

which is the hardest
hump in building a business.

I got to say, Barbara,

I don't know that the
first is the hardest.

We could continue
stumbling forward

and be successful at some level.

But I do know that
the right partner

can make the difference in
years of mistakes, pitfalls...

Yeah... and slower growth.

What we need more
than... Alright. Alright.

You sold me. I'm going
to make you an offer.

[ Laughter ]

You're a good talker.

I'm going to give you $200,000,

but I'm going to give you
half of it in a credit line,

half of it in cash up front, for


Whoa. Sharma:
Thank you for the offer.

Whoa-ho-ho. Thank you, Barbara.

That smile just dropped really,
really quick when you heard it.

Had to think and
talk at the same time.

Well, there is one Shark left.

So... Yes, there is.

Ay, Chihuahua caramba!

[ Laughter ] Exactly.

Exactly.

I've been wanting to say that.

So, I find your model
right now really attractive.

So here's my offer.

I'll do the $200,000.
I want 20%.

But this is definitely
a royalty deal

because there's no other
way to get my capital back.

But the royalty is
going to be $4 a unit

till I get my capital back. Wow.

Wow. Wow. Okay?

Then it drops to 50
cents in perpetuity.

Cuban: You're allowed to counter.
Greiner: You can counter, too.

Yeah. Okay.

Thinking...

Barbara...

Would you do


terms, otherwise?

Well, let me ask you,
would Ashley throw in James

as my third husband
after you're done?

[ Laughter ]

Take him.

[ Laughter and applause ]

Corcoran: Remember
that's your charm.

Ashley, that was fast.

[ Chuckles ] Is that a deal?

I want a deal, damn it!

[ Laughter ]

Do we have a deal or not?

Do we have a deal?

For 25%?

Yeah. For 25%?

We have a deal. We have a deal.

And chances are, based
on our age difference

that you might not even have
to make good on that deal.

[ Laughter ]

There you go.

Come here, Prada girl. Ooh!

[ Chuckles ]

Thank you so much.
Congratulations.

Thank you so much.
Thank you so much, Barbara.

Happy working with you.

Congratulations,
guys. Well done.

Congratulations,
you guys. Good luck.

Bye. [ Giggles ]

We got a deal with Barbara.

We love Barbara.
We love Barbara.

Love Barbara.

So, I have to give
my fiancé away.

But... [ Chuckles
] It was worth it.

It was worth the equity.
It's worth the equity.

[ Both chuckle ]

♪♪

♪♪

Narrator: Next up
is a modern version

of one of the oldest
trades in the world.

♪♪

Hey, Sharks.

Does this look familiar to you?

Have you noticed that when

you buy spices at
the supermarket,

they don't have much flavor?

Gross.

I'm Ethan, chef
turned aid worker

from New York City.

And I'm Ori,

a marketing executive
turned entrepreneur

born in Israel and raised
in Baltimore, Maryland.

Together: And we're
the co-founders of...

[ Laughter ]

Burlap & Barrel.

[ Laughter ]

Burlap & Barrel
is a single-origin

spice company
and social enterprise

working directly with the best

spice farmers around the world

to get you spices
that are way better

than anything
you've ever tasted.

We're talking heirloom
royal cinnamon

from the mountains of Vietnam...

[ Laughter ]

and spicy, lemony
Zanzibar black peppercorns

that grow wild on remote islands

off the east coast of Africa.

We're taking on
centuries-old systems

that disconnect spice farmers

from home cooks.

And by bypassing
layers of middlemen,

our partner farmers
make more money,

and you get spices
that are fresher,

higher quality, and
traceable back to origin.

By sourcing directly,

we're able to pay
our partner farmers

a price that helps
support their livelihood,

and we're able to get
spices that have never, ever

been available
before in the U. S.

Our spices are guaranteed

to be your new
secret ingredients

in the kitchen.

We're looking for $500,000

in exchange for


So, Sharks, are you
ready to spice things up...

in the kitchen...

with Burlap & Barrel?

Now, Sharks, in front of you,

you'll see four of our
best-selling spices.

So, please, pick up the jars,

pick up the bowls,

give everything a good sniff,

take a little pinch
in your fingers,

or use the spoon
to actually taste

the spices themselves.

Royal cinnamon...

A very rare heirloom species
of cinnamon from Vietnam.

Super sweet and spicy.

Mmm! Wow. Paltrow: It
almost doesn't even taste

like conventional cinnamon.

Yeah, exactly. That's exactly
right. I mean, it's like, incomparable.

Yes, thank you.
It's really good.

Next is our black lime.

These are sun-dried
limes from Guatemala

that turn black as they dry,

and then they're
ground into a powder.

Super unusual. It'd
be great in a marinade.

Yeah, great in a marinade.

Really, really
distinctive flavor.

I really actually like this.

Yeah. It's very unusual.

And then, next is
our wild cumin...

Handpicked, foraged
in the mountains

of northeastern Afghanistan.

Wow, is that strong. Whew!

I lived there for
a couple of years,

and this was really the spice

that started the company.

Not eating the peppercorn.

Go for it. It's very hot.

I don't know.
Paltrow: I ate one.

You did?

It's excellent.

How many spices
in your portfolio?

We have about 75
individual spices.

Greiner: Are you online only?

We're 85% direct-to-consumer.

And the other 15%
is split as a wholesale

between bulk,
restaurant, and grocery.

Tell us about you.

Sure. I mean, what got
you to be the spice men?

We've been friends
for over 15 years. Yeah.

With Ethan's
culinary background,

I was the eating side
of the relationship.

[ Chuckles ] Whenever
he was cooking,

I wanted to be hanging
out there and eating.

And we really built a
strong friendship over that.

I left kitchens to go
to graduate school.

I got a master's degree in
international development.

I moved to Afghanistan,
where I worked for

one of the biggest
nonprofits in the world

managing a huge... Doing
what? What were you doing?

I was building over 200 schools

in very remote, rural areas.

I did logistics for
Doctors Without Borders.

But I tasted that cumin

that you have on the
table in front of you...

And Ethan's being modest.

You're talking to one
of the foremost experts

in spices in the world.

Very few people have
been to even a fraction

of the number of spice
farms that he's been to.

So, Ethan, you
were in Afghanistan?

Yeah. Take me through
what happened next.

You went back to New
York with some cumin?

I put it in a duffel bag, yeah.

Really? [ Chuckles ] I
started carrying it home.

Truly. I was just
sharing it with friends

in the restaurant industry,

and the response
was overwhelming.

And so I just started

trying to put the
pieces together.

Out of your apartment
in New York?

Yeah, exactly.

We ran the business
out of my living room.

We've been in
business six years,

so we've evolved
quite a bit since then.

So now it's time to tell
us about the business...

Yes... and the numbers.

Give us a range of costs

and what your margins are
and your total sales, et cetera.

So, our spices,

typically, they
retail for $9.99.

Our landed cost is $2.50.

So we have, on average,
a 75% margin on it.

And lifetime, we've done

$12 million worth of revenue.

Can you walk us
through those six years

so we can see the sales ramp?

So, our first year, we
did $100,000 in revenue.

What year was that?




$250,000 in sales.



Yeah.

And, 2020, in the pandemic,

we ended up closing the year

at $3 million worth of
sales. Corcoran: Wow!

A lot of people
cooked, didn't they?


at $5.1 million in sales.

Wow.

And what about this year?
What are you on track to do?

This year, we're on
track to do between

$6 million and $7
million worth of revenue.

Good for you. Corcoran: Wow.

How much are you
going to make on that?

Bottom line is, around


So $690,000?

Yeah.

Hey, guys, what you
accomplished is amazing.

Unfortunately, this
is just not a business

I know even a tiny bit about.

To me, ketchup is the
ultimate spice, you know?

I just don't know. So for
those reasons, I'm out.

Thank you. Okay.
Thank you so much.

Listen, guys, it tastes great.

I think it does taste stronger.

I also think it's a
really crowded space.

There are so many
spices out there.

I like so much to be involved

with things that are a
little bit more unique.

So while I'll be a customer,

I'm not going to be an investor.

I'm sorry. I'm out.

Got it. Thank you. Alright,
we really appreciate it.

I wish you had come in
and asked for $250,000.

And we could have
negotiated you up a little bit.

But the valuation is crazy.

I'm out.

Paltrow: You know, for
somebody who loves to cook,

just the difference
in the spices,

you know, it's like a cacophony,
like fireworks in your mouth.

And when you're using
beautiful ingredients like this,

it's so easy to make food
that's much, much healthier...

Absolutely. Mm-hmm.

because the
quality is so fantastic.

I'm a little surprised that I've
never heard of the brand before,

which gives me a bit of pause,

because I'm very
active in the space,

which makes me
wonder if you're really

going to be able to
proliferate the market.

So I don't know

if it can grow at the
speed that I would like it to.

I think, you know, for
those reasons, I'm out.

But I do really love
what you're doing.

And I admire it. You're
breaking my heart.

I'm sorry.

Thank you so much.

What are you thinking,
Mr. Wonderful?

Well, I'm struggling with
it because $500K is huge,

and I don't see the
path to getting it back.

Plus, I don't send $500,000
out just to get it back.

Sure. Mm-hmm. I
want a multiple of it.

We came here
with an idea for you.

Okay. Okay?

Wow.

Let's hear it.

We do royalty deals
on a regular basis.

When we do a collaboration blend

with a chef or an
artist or an influencer,

we've found that to
be a very effective

customer acquisition strategy.
What royalties do you give?

We give a standard 20%

on an $11.99 retail product.

So that's $2.39 per unit sold.

I'll tell you... I'll make
you an offer, okay?

While we're talking about this.

I'll give you $500,000 for
a $2.30 royalty on an order.

What we'd really like to do

is a Mr. Wonderful
set of spices.

Ah! That's a different deal.

How about we... Oh, so
then you'd only get in on that?

We'd get the
royalty on that jar,

but you'll still get
it back anyway.

Oh, not all the jars. Just
on your new, specialty jar.

Oh, I'm not going
to do that deal.

Are you kidding? I'll
never get my money back.

You'll get it back.

[ Chuckles ] You're
not banking on you?

That makes no sense.

So, Kevin, what
are you offering?

I'll offer you $500,000
for 10% equity.

And I want a 20% royalty

on everything until I
get back a million bucks.

Then it goes away.

Greiner: That's quite
different. Cuban: Hello!

Listen, it's an offer, Mark.

There's your offer, guys.
What do you want to do?

Frisch: We have a counteroffer.

Sure.

We would do 20% royalty

on a Mr. Wonderful
branded line of spices

and count on you to
help promote them.

We would do a 10% affiliate cut

on everything that
you drive to us,

and we would do 5%
equity for $500,000.

Okay. There's no
way I'm doing that deal.

I'm out.

Frisch: Thank you so much.
Thanks, guys. Thanks, guys.

Good luck, guys.

Thank you very much. Thank you.
Greiner: Thank you for the spices.

♪♪

The Sharks are
going to regret it.

They put a fire under us,

and we are just going
to go even harder

to get even bigger, even faster.

♪♪

♪♪

Narrator: Next up is an
innovation for nursing mothers.

♪♪

Hi, Sharks. I'm
Dr. Berkley Luck.

And I'm Pedro Silva.

We're a husband-and-wife
team from Houston, Texas,

and we are here today

seeking a $400,000 investment

in exchange for 10%
equity in our company,

Milkify.

Sharks, breastfeeding mothers

often store their
milk in the freezer

to save it for future use.

But frozen breast milk

takes up a lot of
space in the freezer.

It's a pain to use
and transport,

and the nutritional
quality starts to degrade

in as little as three months.

But what if I told you
that we can preserve

a mother's milk for future use

without using a freezer?

At Milkify, we
are revolutionizing

the way that
breast milk is stored,

used, and transported.

We've designed the
first-ever contact-free process

for safely freeze-drying

individual bags of breast milk.

Our service enables moms
to save their own stash

as a safe and convenient powder.

And the best part?

With our process,

freeze-dried breast milk

lasts on the shelf
for three years...

Wow... without any
refrigeration needed.

And freeze-drying saves

the vital nutrients
present in breast milk,

which make it the gold standard

for infant nutrition.

To make a bottle,
just add water.

Or sprinkle on your
toddler's favorite solid foods

for a nutritional boost anytime,

even as they grow older.

Parents across the U. S.

Are calling our service
a game-changer.

But we need you so that we
can help parents everywhere

take their stash from
freezer to freedom.

So what you see in
front of you is an example.

So these are not
product samples.

We don't do that.

[ Laughter ]

But we wanted to give you a feel

for what it's like for a mom

to get her milk back

after she's used our service.

I do have a sample of
my own milk here today,

and we'd love to show you
a quick demo to show you

just how quick and easy
it is to make up a bottle.

So on the back of every pack,

we have custom labels.

So the back of each custom label

will tell the mom

exactly how much
water to add back

to rehydrate this pouch
to its original consistency.

And all you need to do

is empty the entire contents

of this pouch into the bottle.

Give it a quick swirl.

And then you're good to go.

Greiner: Wow.
Corcoran: Wow. That's it?

That's it.

Cuban: That's amazing.

Women breastfeed
so that the baby

will get all of
the nutritional...

Everything that she has in her,

from immunity
things to nutrition.

When you freeze-dry it,

are you losing any
of those benefits?

So the research shows that

there's no significant changes

after you freeze-dry
breast milk.

We've done our own testing

to validate this
with our process.

Gwyneth, would you have
used this when you had Apple?

Well, I was like a milkmaid...

[ Laughter ]

so I could have, like,
fed the whole neighborhood.

And, luckily, I was
able to stay home.

Had I had to go
straight back on set,

I would have really
loved something like this.

Especially, you know,

I'm very interested
in the gut microbiome

and the percentage
of the immunity

that the child gets
through the breast milk.

But can I ask a question
about how this works?

Absolutely.

We ship mom a
complete shipping kit,

so it comes with a pharma-grade

insulated cooler.

It comes with a
return shipping label.

It's prepaid.

And it comes with
a really detailed

set of packing and
shipping instructions.

What is the cost overall?

It's based on the
volume that a mom sends.

So it's about $1.60 per ounce.

Our average order value is $475.

That equates to between


ounces of breast milk,

which if you're using this

to provide to a
caretaker or a daycare,

that's about a month
to 5 weeks of doing that.

Many of our customers
have actually been able to get

their employers to
pay for the service,

especially if they're
relocating for work

or traveling for work.

I'm curious, what's
your background?

How did you come up with this?

Yeah, so I'm a
research scientist.

I have a PhD in
molecular microbiology.

We also have an


but I had the idea for Milkify

a long time before.

In my research, I was studying
the infant gut microbiome.

And so I jumped
headfirst into this idea,

and I spent the next
year and a half learning

everything I could
about freeze-drying

and leaning on my
experience to design a process

that was safe for doing this
with breast milk in specific.

And do you work with
her in the business?

We're both full
time in the business

for the last three years.

And what's your background?

He married her, that's what.

O'Leary: You're the husband?

That's right. I'm the husband.

So, my background...

I was a private-equity investor,

so, initially, I seeded $40,000

into the business
for her to do R&D.

I thought it was
kind of a crazy idea,

but I knew how smart she
was, and I believed in her.

Let's get into the numbers.
What are your sales?

So, right now,
we have $2 million

in registered preorders.

Our lifetime sales are $525,000.

Our first year
selling nationwide

was 2021, in January.

We did $184,000 that year.

This year, so far,
we've done $340,000,

and we're going to
finish out the year

at half a million.

Okay. What are you going
to make on the half a million?

So, on the half a
million this year,

we're about breaking even.

We've been investing
a lot into a new facility.

So, in aggregate, this company

hasn't made any
money yet, right?

We've broke even in aggregate,

but we will have a 20%
to 25% net profit margin

in Q2 of next year.

Our main challenge right now is,

we set this up with money

that me and Berkley put in.

So $60,000 from us,

$120,000 from our parents.

That got us to a
proof-of-concept facility,

but it was small.

Our next facility, we
will have the ability

to do $3 million in
revenue next year,

with space to continue
adding equipment.

How are you acquiring customers?

Right now, customers
are finding us.

We do have a preorder wait list.

You spend any money
on digital advertising?

Not right now.

I'll also say, mom groups

are a very powerful thing. Yeah.

Guys, I think it's
a great product,

but I see it more as a luxury.

It's there for people
who can afford it.

But I don't see it as something
that would become something

that most mothers could
even take avail of, right?

And so, for those
reasons, I'm out.

So, guys, look,

I'm very impressed
with what you're doing.

I just... I don't know how I...

How this talking
about mother's milk

is really going to be
great for me or you.

So... I don't like your
valuation, by the way.

I was going to b*at you like
a piece of veal on this thing,

but no point in
doing it. [ Chuckles ]

I was looking forward to that.

But thank you,
Mr. Wonderful. [ Laughter ]

I understand, but it's
not a good fit for me.

I'm out. Thank you.

Thank you.

I think I see the business

as a supplementary business.

My concern with it is
it's an affluent mom,

quite an affluent mom,

for supplementary milk
to spend $500 a month

or a portion, even, of that.

So for that reason, I think
the universe of appeal

is more limited
than I would like.

So I'm out. Thank you.

Paltrow: So I have a
question about that customer.

Do you have an
idea around the TAM?

Well, we estimate that there are

over 2 million moms
with breast milk

stored in the freezer right
now in the U. S. alone.

So you'd be surprised to find

that 60% of our total sales

have come from middle- and
lower-income households. Corcoran: Really?

So, Gwyneth and Lori,
what are you going to do?

At the end of the day,
breast milk is a commodity,

and I think mothers all over
the world would eventually

just be so thrilled to
have something like this.

What concerns me is I
think the valuation is high.

I believe in this, but I would
love to see it get further along

before I commit
that kind of capital.

Okay.

Would you like to do some
kind of a different structure

to maybe be able
to follow our progress

without putting in equity, like maybe
a debt deal, just something like that?

You're a regular hustler.

Yeah, no kidding,
right? You are a PE.

[ Laughter ]

Lori, you're still in.

Are you interested in maybe

coming in together with Gwyneth?

You guys, your
superpowers combined

could really help us
take this to the next level.

♪♪

♪♪

Narrator: Three Sharks are out,

and Pedro is campaigning
for Gwyneth and Lori

to go in together on an offer

for their breast milk
freeze-drying service, Milkify.

I think that it's a really,
really smart product.

To have something freeze-dried

that retains all of the
health benefits is great.

But your valuation, it's high.

It doesn't fit how
much you've sold.

I'm going to have a little
moment with Gwyneth.

Okay? Please.

Paltrow: [ Whispering
] Here's what I think.

I think that we could
do it as a loan structure...

Cuban: You guys might
discuss what you're willing to do,

because it's probably
not going to be cheap.

[ Laughter ]

[ Whispering ] ...we're
going to get it back,

with our expertise
together and our...

It's only a 60-minute
show, guys.

Hey, wait just a minute.
This is a lot of money.

We got to talk this through.

That's right. You tell him.

O'Leary: I do feel that
the ask was heavy...

Okay... on the cash.

So...

Ooh! This is nerve wracking.

[ Laughter ]

So, we've talked.

We'll give you the
$400,000 as a loan.

Three-year loan.

But we would like 20%.

- Wow.
- Whoa.

But you get both of us,

and we will help you to
take it to the next level.

Okay, guys, what
do you want to do?

I have no doubts about that.

You guys would be
amazing partners.

Thank you so much for the offer.

There's a little bit

that concerns me with the loan.

It's going to be a big
drain on cash flow,

as we plan to reinvest
that into the business.

And so we'd rather not have,

you know, an
interest rate that we...

You can make a counter.

Well, you were the one
who offered the loan.

We're okay with the 20%.

Could we make it
a convertible note?

$400,000. In three years' time,

if you don't like
where it's going,

we pay you back.

If you like where it's going,

you get 20%.

A little rich for me.

Yeah.

[ Laughter ]

Greiner: It's good.

Yeah?

Yeah.

I'd be good with that.

Okay. [ Chuckles ]

You got a deal. Gwyneth
and Lori, you have a deal.

Whoo! There you go.

[ Laughter and applause ]

Cuban: Congrats, guys.

Luck: Oh, thank
you guys so much.

I think it's so smart.

Thank you so much.
Thank you so much.

You're such a...

I think it gives such agency
to moms, working moms.

It empowers them, it's great.

We're so excited.

Congratulations, guys. Well
done. We did it. Thank you, guys.

Well done, guys.
Thank you very much.

♪♪

Oh, my God!

Luck: I-I can't believe
that just happened.

It's a dream team,
Lori and Gwyneth,

to help us grow this company

and help us take it
and make it available

to more moms.

I can't believe we're here,

and I can't believe we
have this opportunity.

Paltrow: I really
didn't expect to do that.

Cuban: Well done. Nice job.

Thank you. It's a
good deal for you guys.

I'm excited. I mean,
I work at a company

with so many women,
nursing mothers,

and breastfeeding really
factors in for women.

And I think it makes working

less of a guilty experience for a
mother. Corcoran: Oh, absolutely.

Which is great. Would you offer
that as a benefit to your employees

when they're pregnant?
Yeah, for sure.

Good job, guys. Well done.