15x12 - Episode 12

[bunniefuu]

Narrator:
Tonight on "Shark t*nk"...

Sharks, you ever wish your cat
could understand

what you are saying?

[ Meows ]
It's a great idea.

And so shipping out
of my parents' garage,

they were like,
"You got to get out."

O'Leary: Ouch!

Oh, wow!

That's ridiculous!

The secret sauce of your deal
is to figure out

customer acquisition.

The secret sauce
of this company is me.

You have no value yet,
and I'm choking on the price!

I'm freaking!

We get the point, Kevin.

Oh, oh!

You've lost it.

That's why they call it
the Shark t*nk.

♪♪

Narrator: First up is a better
way to care for

our feline friends.

♪♪

[ Laughs ]

Hey, Sharks.
My name is Ramon van Meer,

and this is my co-founder,
Kevin O'Purry.

[ Laughter ]
And we are the creators

of Genius Litter.

Today, we're seeking $250,000

in exchange for 4%
of our company.

Sharks, you ever wish your cat
could understand

what you are saying?

Well, that is impossible,
but with Genius Litter,

you can understand
what your cat is saying.

We love our cats.

They mean everything to us,

and that is why it is
so heartbreaking

when our cats get sick.

And the worst part
is we humans are clueless.

We don't even know
when they're in pain.

And that is why me and O'Purry
were sent on a mission

to find a better way
to monitor your cat's health.

Introducing Genius Litter.

Genius Litter is a super smart

health-indicating cat litter
that changes color

if your cat is sick.

It's like having
a health monitor

right in your cat litter box.

Are you "kitten" me?
[ Meows ]

It's that simple.

It is genius.
[ Laughter ]

But that's not all.

Our litter is also
super lightweight,

doesn't track in the house,

and traps all the yucky odors,
even Kevin's.

[ Laughter ]
And for each bag we sell,

we donate 10 meals
to pet shelters.

So, Sharks, who is ready to
cuddle up with me

and Kevin O'Purry
and help every cat

live a happier and longer life?

Before I move on, I'm going
to take my work clothes off

and I can answer
any of your questions,

because this is not
my real hair.

It's not real?!

It's not real.
What?!

What about the accent?

The accent is real.
I'm from the Netherlands.

So tell us how it works.

So our litter,
it's a silica litter,

and it's mixed with a pH tester.

So it tests the urine.

If it's a high pH or low pH,

it will tell you if there's
a potential health issue.

For example, if it turns red,
it could be a kidney problem.

If it's blue or green,
it could mean a UTI.

Greiner: So tell me, how much
does it cost you to make?

And how much do you sell it for?

We sell it at $24.99 per bag.
Cost to make is $4.71.

Is that fully landed?
Wow.

No, landed costs,
it adds up anywhere

between $1.30 and $1.56.

Grede: Do you have
any competition?

Because I feel like
I've seen an ad,

like, that does exactly this.

Is that you guys,
or is that your competition?

No, that is our competitor.

Okay, okay.
Herjavec: What?

What's different about yours?

Ours is better because we use
a different silica,

a smaller particle,
so it's better for the paws.

Mm-hmm.
It's also better

odor control and less dust.

And we are... More importantly,
we're cheaper.

I love cheaper.

Cuban: Now let's talk
about the business.

How much are you doing
year to date in sales?

Year to date
is $3.1 million.

Wow!
What?!

Are you making or losing money?

We are profitable. Here today,
we're at $465,000.

Good for you.

Grede: Wow.
What did you do

last year in sales?

Last year in sales,
$3.6 million.

And we did $145,000.

How much is going
direct to consumer?

How much through
traditional pet retail?

So our biggest channel
is the online marketplaces.


and Walmart.

Combined?

And then 20, 24% is retail.

The remaining
is direct to consumer.

It's tiny.
So it's a very small amount

direct to consumer
from your site.

Yes. Correct.
Now I ask you this

because there was a very famous

deal here on "Shark t*nk"
called Basepaws for cats.

It's not famous!
Very famous, Mark.

Very famous.
He's never heard of it.

Have you heard of Basepaws?

Van Meer: Yes.

The exit was huge,

but all they
wanted was the data.

That was it.

So how much did you raise?

I raised $1 million,

and I put $1 million
myself in it.

Your own money?
Greiner: Wow.

Where did you get
the million dollars to put in?

I had an exit.

I sold a company five years ago.

How much did you sell it for?

$9 million.

Good for you.

What kind of a company?

You will never, never
guess what it was.

Dog food!
No.

[ Laughs ]
I started an online blog

about soap operas.

No, no.

[ Laughter ]

Yes.
No.

That's crazy.
The American dream, baby,

I know.

Were you just a huge fan?

No, no.
At that time,

I was flipping content websites,

so I knew how to start a blog,
drive traffic from SEO,

you know, building communities
on social media.

You've been so successful.

So what's the plan
for this business?

Yeah, I want to build
and scale this business

and then sell it to a strategic.

Our competitor that you saw
on TV was sold for

a lot of money to...
How much is a lot?

Like, what is out there
in the news is $1 billion.

Oh.
For the same litter?

How big did they get to?

They must have had
the customer information.

There's 110 million cats
in America.

Yeah.
And that's a very

valuable database
of users because they buy

a lot of stuff.

Oh, my gosh, we're back
to the database!

We get the point, Kevin.

I'll get you the database.
Kevin, uh...

But what's the plan?
Tell us your plan.

We have two new products
coming out.

Okay.
One is brand new.

Nobody is selling it.
It's a health-indicating topper.

You can sprinkle that on top
of your existing cat litter.

And then it will change color.
Same like our litter.

What's the second product?

It's the same concept.

It's a health-indicating
doggy pee pad.

It changes color
if there's potential issues

with the pH level.
That's a great idea.

Ramon, I just...
I want to tell you,

I think you're really
such an impressive man,

but this is just not a space

that I understand enough about.

And the idea of this competitor
that's already had

the big, fat exit...
Yeah.

Just casts a little bit
of a shadow over me.

So I hope you do
really well with this,

but I'm out of this one.
It's just not for me.

Well, but also...
You're wonderful.

Cuban: Congratulations
on what you've accomplished.

But it's just not a business
I want to be in.

So for those reasons, I'm out.

Listen, Lori and I've
been talking about this.

This may be one of these cases
where two Sharks are better

than one in terms of driving
awareness of this product.

Here's the deal.
We want 10% of the company

for $250,000,
but we want a $2 royalty

until we get back a million
bucks, and then it goes away.

We'll do everything in our power
to get more customers

buying direct,
because that's where

the exit value is extreme.

Royalty deals are just like...
Yeah, I don't think it's

in the best interest
for the company.

It always is.
Herjavec: Exactly, Ramon.

But if you believe in me,
then why not just equity?

Kevin only believes in money.

A lot more equity, maybe.

A lot more equity?

Look, I think the direct
to consumer is great.

I think it's always going to be

a proportion of your business.

I got to tell you,

most people still buy
their products in pet stores.

Are you going to go away
from retail?

No. No, not away from...

You don't have
to give up retail.

I wouldn't.
But when you get
a direct relationship,

it's far more valuable.

All right.
Here's an alternative offer.

The first one's on the table.
But we've talked.

Yes.
We've meowed
a bit together.

Okay.
And we'll do

all equity for 20%, 10% each.

And we go to work for you.


Yeah!

We're Sharks!

Wow.
That's ridiculous.

What does the cat think?

[ Cat meows ]
The cat is not happy.

Is the cat okay?

He's... O'Purry is not happy.

To give up that much equity
at this stage,

why would you even
start the business?

Yeah.

Truly, since he's profitable.

Exactly.

I'll give you
the $250,000 for 10%.

I can help you
go faster in retail.

We can help you online.

I think it's the right offer
for you.

But you got to pay more
for two Sharks.

What about three Sharks?

Narrator: Two Sharks are out.

Ramon has an offer on the table
from Kevin and Lori,

and another from Robert

for his health-indicating
cat litter, Genius Litter.

What about three Sharks?

What's your counter
for three Sharks?

For three Sharks, I can do...

I can do 10%.

Cuban: Whoops.

I'll do that deal on my own.

Greiner:
That's what he offered.

I know.

Yeah. I mean, that's
what I offered.

But why can't...
Then we have Lori and Kevin,

so we have a higher chance
of succeeding.

Ramon, mate,
don't lose your deal.

Why not 15%?
I would do it at 15%.

I think it's fair,
and I think it will help you

go faster and farther
than you ever dreamed.

Do we have a deal?

Van Meer: This is hard.
One second.

Ramon, do the deal.

What about 13%?


We'll figure it out.

We'll figure that out.

I mean, if we're
going to be successful,

it won't matter.

Ramon.
You're k*lling me.

Because I came in here with 4%.

But you're getting
three sharks.
Now we are at 15%.

That's why they call it
the Shark t*nk, love. Seriously.

No, it's like now I know
how it feels.

You had a deal for 10%.
You didn't want that.

Why are we talking about 2%?

$250,000, 15%.
Three Sharks.

Cuban: Ramon, you came in
asking for 4%.

I'm so tired.
I'll do $250,000 for 8%.

But you got to say yes
or no right now.

Oh!
Greiner: Wow!

I want in on that.
I want in on that.

Don't mess around.
It's either yes or no right now.

Hurry up!
Yes or no right now.

Mark, come on.
Yes or no right now.

Oh, my God.
Greiner: Don't do that.

Why? Go in?

Me go in?
No, it's either yes or no.

Don't lose your deal.

Greiner: I'll give you
the same offer.

Ramon, look at me.
Ramon, you know what...

I can't take it.
Here's the way
I looked at it, Ramon.

Ramon.
You're a content marketer.

That's what this
is about, right?
Yes.

Ramon, I'll do that deal.

Yeah, I'll do the same deal.

Robert? Kevin?

Would you do the same deal?

For 8%?

We'll give you the 250K
for 8% plus two advisory.

No, Lori.
Oh, now she...

He should not be able
to just come in and scoop it.

Yes, that's what I do!

I've been doing that
for 15 years.

That's literally what he does.

$250,000 for 8%.

Plus 2% advisory.
Plus 2% advisory?

Yeah, Lori and I,
I'll do that deal.

Kevin?

Why do we need Kevin?
Wait.

I'm just asking Kevin
because he has the list.

You have the list?
The database.

We forgot about the database.

Who cares?
We're getting 10%

split three ways?

Van Meer: It's going to be
a good return.

Ramon, I love you,
but I'm going to pass.

Thank you.
That's just not enough.

I'll step in for Kevin.

We don't need the database.

All right, Mark, you're in.

Let's do it.

[ Cheering ]

What's the deal?
$250,000.10%. Plus 2%.

Yeah 2% advisory share.

Thank you so much.
Thank you.

Lori, I love you.
Thank you so much.

Mark, thank you.

Congratulations.

Yes!

Now that I have
all three Sharks onboard,

I think we can scale
this brand to the moon.

They all have different types
of expertise and network,

and I think
it's going to be great.

I cannot wait to work with them.

Narrator: In Season 14,

Samuel Taylor pitched his
heirloom grain

Long Table pancakes
to the Sharks.

I source my grains directly
from organic

and regenerative farmers.

These pancake mixes are
hands down the best

I've ever had.

I have a lot of respect for you,

but the business is a little
small for me at the moment.

Narrator:
But he left without a deal.

Let's see what he's up to now.

Going into the t*nk,
I was really keenly aware

of what was at stake,
not just for Long Table,

but for my family.

My wife and I had
made a living onstage

for 15 years in Chicago,

but in the pandemic, that
entire industry just stopped.

Other industries adapted.

In the theater,
they didn't come back.

And we had an 18-month-old kid,
and we didn't know what to do.

So when "Shark t*nk" called,
I knew it was

the biggest opportunity
of my life.

Social media
is not my strong suit.

Oh, that's a problem.

O'Leary: If you told this story
on every platform,

your sales would be
in the millions.

Leaving the t*nk
without a deal was terrifying.

But what we did have
was some really good advice.

Getting the website ready
for our "Shark t*nk" air date.

When we aired on "Shark t*nk,"

we prepared for
a huge bump in sales.

We took all of the money we had
and poured that into inventory,

and that inventory was gone

before the segment
was done airing.

I am no longer the only
employee at Long Table.

We have a team,
and we are able to think bigger.

I've been able to hire a social
media and marketing manager,

and our social media
has grown by 10X.

I went into the t*nk
with $250,000 in lifetime sales

after six years.

We did that amount of sales
in seven minutes.

It was before the Sharks
even went out.

Since then, we've done
$1.25 million in sales

in the last eight months.

Man: Samuel?
We're now working

with 15 different
family farms in six states.

For me to be able
to help create a market

to support their small-town
economies is huge for me.

I will never be able
to repay the debt of gratitude

to all of the people
who watched and said,

"I'm going to try
those pancakes."

Those people changed my life.

It's allowed me to think
about my son's future

in a completely different way.

I've been able to take
the really good advice

I got from the Sharks and build
a dream that is coming true.

♪♪

♪♪

Narrator: Next up is a more
stylish way to enjoy your lunch.

♪♪

Hi, Sharks.
My name is Ali Kaminetsky.

I'm the founder
of Modern Picnic,

and I'm here seeking $400,000

in exchange
for 6.5% of my company.

[ Laughter ]
As a young professional

working in New York City,

I would go into the office
every day

trying to look,
feel, and do my best.

But when it came
to packing lunch,

my options were unprofessional
and definitely not stylish.

Sure, I could use
a brown paper bag,

but my mom doesn't
pack my lunch anymore.

And a plastic bag?

Definitely not sustainable
or functional.

Or I could carry
something like this,

but I wouldn't be caught dead
carrying this into the office.

Sharks, the outdated lunch box
needed a makeover,

so I gave it one.

Meet Modern Picnic.

Fashionable, insulated,
vegan leather lunch boxes

so you can bring your food
wherever you go,

and no one would ever know
it's a lunch box.

And we launched
with our first product,

the Luncher,
which, as you can see here,

chic, functional, and clean,

with the easily wipeable
interior

to protect against
those everyday spills.

But that's not all.

Since we've launched,
we've since come out

with a range of different shapes
and sizes for all of

your meal prep needs, whether
that be our Toter backpack,

because sometimes
bigger really is better.

Our Snacker, perfect for
the little things.

Or our newly launched
food containers,

designed to fit
perfectly inside.

So, Sharks, who's ready to ditch
those childish lunch boxes

and those wasteful paper and
plastic bags with Modern Picnic?

So I hope you guys are hungry,

because I packed
your lunch today.

Let's go!
In front of you,

you have some of
our best-selling products.

So let's open it up
and see what's inside.

Clever, Ali.
Super cool.

What are you going to do to

the purse-snatching industry?

Because when they steal this,

expecting to find jewels in it,

they're going to find
a ham and rye in here.

[ Laughing ]

It's a great idea.

I think it's worth noting,
I was 22 years old

when I came up with the idea
for Modern Picnic,

and was able to successfully
launch a company

within two years with absolutely
no prior experience,

connections, funding,
highlighting my ability

to make things happen
for not only myself

but most importantly,
the company,

and really just
figure things out.

Greiner: Good for you.
How old are you now?

I'm 29.

Amazing.

And what do they cost?
What do you sell them for?

So they range.
Our AOV is $155.

So we call ourselves
"attainable luxury."

You guys will love this.

Our product margins
are excellent,

averaging in the 80s.

Landed duties paid,
it drops down to the 70s.

And gross margin
is a healthy 60%.

Why not just give us
a dollar amount for this?

Yeah, the little one,
what do you sell it for?

What does it cost you?

So that is around,
like, $30, $35.

Okay, and what do
you sell it for?
What do you sell it for?

$159.

Wow!
Wow!

So, Ali, the issue is you can't
really sell this in retail

because people are going to
compare it to purses,

not understanding
the vision of the lunch box.

It's all online
right now, right?

So while our e-commerce
direct to consumer business

accounts for the majority
of our revenue...

What's the majority?



So we started going
wholesale this year,

and it's already accounted
for 20% of our sales.

We are now sold in Saks. We just
launched in The Container Store.

And actually this morning...
So good.

I got my vendor number
for Bloomingdale's,

which I think is a sign.

You're asking
for a $6.15 million...

Yes.
Valuation.

So you must have some sales.

Why don't you walk us
through the business?

So we've done just under
$6 million in cumulative sales

from over 40,000 units sold.

What year did you start?
What period of time is that?

We launched in 2018.

And what will you do this year?

So we're projected to do
just over

$2 million in sales this year.
And how much will you make?

So this year,
we're projected to lose

just under $100,000 in sales.

So why are you not profitable?

Where are you
spending the money?

The money's got to be
going somewhere, right?

Somewhere.
Because if you're...

You said you're going to do
how much this year?

Just over $2 million.
Okay.

And you've got 60% margins.
Mm-hmm.

So that's $1.2 million
in gross margin contribution.

Where is that
$1.2 million going?

Yeah, so in terms of how
we're acquiring customers,

in recent years,
we've really created an emphasis

on having a healthy,
diversified marketing mix.

We do affiliate marketing,
TikTok, e-mail, SMS.

We have
a very optimized website.

But there's definitely...

Herjavec: I love
how excited you are.

I just want to go back
to Mark's question.

Yeah.

$1.2 million
in gross margin.

Where did that money go?

How much did you actually
spend on advertising?

About like 25%

of our revenue is
going towards marketing.

That's where it is.

Ali, I'm still trying
to wrap my head around

how you're spending money
right now.

So, right, if 25% of your costs
are going...

Is that digital marketing,

and you're spending
additional money

in brand marketing?
That's correct.

So what is the total
cost of marketing?

When you look at
that $1.2 million, like,

what is the total
cost of marketing?

It's not 25%. It's actually
much more than that.

Yeah, and that's why,
like, we're really...

How much?

I would say it's probably 50%
on total marketing.

That is too much on marketing.

Yes. Yes.
Way too much on marketing,

because that's where
all your money's going.

It's, like, you are
way overpaying

to find customers right now.

And that's why you're not
putting enough money

on the bottom line,
because your margins

are pretty good for this
type of product.

Your margins are amazing.

You're actually overpaying
to acquire customers right now.

Greiner: Okay.
Do you have investors?

As I mentioned,
bootstrapped the company

for a couple of years, shipping
out of my parents' garage.

They were like,
"You got to get out."

And so, in 2020, I knew I had
to raise some capital.

I had absolutely no idea
what it meant to raise capital.

I went out in cold outreach
to 1,300 investors.

Oh, my God, you're amazing.

And ended up raising $900,000.

What?!
Yeah.

So, we currently
have a seed round,

like, proper seed round open,

which we've raised
an additional $900,000 for.

Oh, so you've raised
the first $900,000,

plus another $900,000.

Yeah.
O'Leary: So, Ali,

let me take a cr*ck at this.

You know, I applaud you
on what you've achieved here.

And your presentation
was almost flawless

until we got into the numbers.

You're spending so much money
trying to build a brand,

and I have zero interest
in funding a branded fashion.

That is so hard to do.

And pretty soon,
you're going to figure out

that's not a good pursuit.

I'm out.

Thank you so much.

Yeah, Ali, I would say you need
to have more confidence

in yourself and your product.

And I know that sounds
counterintuitive,

but when you're spending
so much on advertising,

that's typically because
the entrepreneur is afraid

that sales might fall
or afraid there won't be

the demand there if you stop.

You're having
to go out and raise money.

You have to be very,
very disciplined to spend less.

Yeah.

It's not for me.
I'm out.

Ali, you're a dynamo.
Great presentation.

Like Kevin said, I don't think
the numbers work right now.

Yeah.
I'm sorry. I'm out.

Thank you.
Greiner: What I don't love

is when a young company
does so many raises

so fast for so much money.

I'm a big believer in you
make money, you roll it back in.

And so I'm sorry.
I'm out.

Okay. Yeah. Thank you.

Shipping out
of my parents' garage,

we had to raise some money
because we had to move out

and we had to make some changes.

We were putting zero dollars
into marketing the first

three years in the garage,
and that's why we raised...

That's right.
You just said it yourself.

Go back to those times.
Yeah.

I think one of the biggest
lessons that I learned

when I started Good American...

And let me tell you, I had
two different sets of investors.

I had the old guys
and the young guys.

The young guys said to me,
"Spend, spend, spend, chase,

like, you know,
top line growth."

And the old guys said to me,
"You're going to need profit.

When the tides turn, you just
have to think about running."

Amen. Truer words
were never spoken.

And that is, you know, lucky.

I was like, "I'm going to listen
to these old guys

because they just look richer

and, like, they've done
more business," you know?

And I just think
about this all the time.

It is a curse
of so many young founders

that I know, that they have
plowed so much money

into the belief
that digital marketing,

coupled with brand marketing
and spending

these huge percentages, is
leading to all of these sales,

but never, ever
looking at, like,

the fundamentals
of the business.

What I will say to you and what
I've seen in my own experience,

if you look at whatever
you're spending on Meta,

on Facebook, on TikTok,
in any other platforms,

you start winding it down,

I'm telling you...
I almost guarantee it...

You will not see a difference
in your sales.

I think you're amazing.

I love the product.
I'll be a customer.

But for those reasons, I'm out.

Right.

Good luck, Ali.
We wish you all the best.

Thank you so much.

Cuban:
Good luck, Ali.

Thank you for sharing
this with us today.

Kaminetsky: The Sharks gave some
really great feedback,

and we'll, of course,
take all of it to heart.

We built a really
amazing brand so far,

and not getting a Shark today
is not going to stop us

from continuing to grow
Modern Picnic.

♪♪

Narrator: Next up is a luxurious
version of a newborn necessity.

♪♪

Hi, Sharks.
I'm Alexandra.

And I am the brains, heart,
and mother inventor at AU Baby.

I'm seeking $80,000
for 25% of my company.

Sharks, AU Baby
is the first clean,

sustainable baby
blanket collection

made with a performance fiber
built just for babies.

Here's the problem.

Babies are leaky, they're messy,

and they can't communicate
what they need.

What do they do when
they're too hot or too cold?

They cry.

But what if there was a blanket
that solved their most basic

issues and adapted
to keep them comfortable?

Enter AU Baby.

It took a knitwear
design expert...

That's me... to reinvent
this essential item.

Our blankets can stay clean
for up to a year,

so say goodbye
to weekly washing.

They're naturally stain-
and smell-proof.

Just dab away milk spills
and get on with your day.

What are parents'
other biggest issues?

Baby's sleep quality
and skin care concerns.

Our blankets help with both
by regulating temperature,

wicking away sweat.

Aw.
And keeping babies cozy

and comfortable all night long.

As a new mom myself,
I wanted to create a blanket

that I could trust against
my baby's sensitive skin.

A true security blanket for you
and your baby.

Sharks, are you ready
to cozy up to AU Baby?

Let's make a deal and say
good night to the competition.

Greiner: Good job.
Well done, my dear.

Did I hear you right when
you said you just wipe it off

and it won't smell at all,

it won't retain any of it?

That's correct. Yes.
Wow.

Alexandra, what are we...

I'm going to take you
on our product journey.

What you have in front of you,
Sharks, is our Popcorn blanket.

And I'm glad you've
gotten cozy with it.

Yeah, it is cozy, actually.

It's one of our best sellers.

And it's made with 100%
extra-fine Merino fiber.

What is Merino?

It's wool.
Wool.

So what... And, Sharks,

what you see next to you,

that is a sampling of our
Italian plant dye material.

So we make the first
purely plant dyed

natural-fiber blanket.

And it's guaranteed
to not fade with washing.

So, Alexandra,
what's your background?

Thank you for asking.
I'm a knitwear design expert.

I started in luxury fashion
at Prabal Gurung

at Opening Ceremony.
Oh, wow.

I spent the last seven years

as a hybrid knit designer
and engineer at Nike,

where I have designed and
engineered performance fabrics

for top athletes
such as LeBron James.

And I left that job
to reinvent the baby blanket.

So impressive.
Greiner: So I'm just curious,

you could do anything
with this fabric, right?

Like, why did you choose
that versus adult blankets?

Absolutely.

Babies are the most vulnerable
to environmental toxins.

The majority of baby textiles
are synthetic,

polyester and acrylic.

It's plastic.

Is that a cost factor?

Yes, Americans are pretty
much addicted

to cheap disposable fabrics,
so this...

Well, everyone, actually.

This material is
three times more durable

than cotton.

And is it three times the cost?

Um, it depends.

How much does it cost?
Yeah.

How much does it
cost you to make?

Per unit, it costs us $74
to make a blanket.

That's landed.
Oy.

Cuban: Oy, yoi, yoi.

We make them right here
in Los Angeles.

Right. What do
you sell it for?

We sell them for $160.

Ouch!
Grede: Oh, yoi, yoi!

So how were you
actually conveying

that message to customers
and conveying

all the added benefits
that you're talking about?

Because...
Messaging, yes,
is very important.

That's mostly storytelling
that we do

again and again and again
on social media.

Is it translating into sales?

Why don't you walk us
through last year, this year.

Lifetime sales are $62,000,
last year, $38,000.

Herjavec:
So far this year?

$14,000,
and we're still on track

to meet our target
of $100,000 this year.

Alexandra, how do you sell?

We are 100% DTC.

So what does it cost you
to acquire a customer?

What's the customer
acquisition cost?

So I wish I could give you
a very specific answer to that.

But because we don't do
traditional digital marketing,

I don't have an analytic tool
that could tell me

specifically per customer.

So there's no digital marketing?

You're just doing
a bit of social here and there?

No digital marketing,
but we have a PR firm...

But no paid-for spend?

That is specialized
in juvenile products,

and they've done
a fantastic job.

Look, I would buy this
if I had a child

that was,
you know, 3 months old,

if I could sit in front of you
for five minutes.

It's so credible.

Of course I want to pay
a massive premium for it.

But the magic
and the secret sauce

is when do you get
the mother at that exact time,

post birth,
to trigger the purchase,

and how do you reach her?

So customer acquisition
is everything

and I'm choking on the price.

I'm freaking.
It's so expensive.

Here's the thing.

This is a buy better,
buy less proposition.

I get it, but what's
the plan to sell it?

Let me tell you about the plan.

So I'm partnering
with some of the top

pediatric specialists
in the country.

I've been featured
on top 20 podcasts

talking about
textile wellness...

But it hasn't translated.

Herjavec: In general,
the higher the price point,

the consumer doesn't always
connect that value proposition,

and there's a cost for that.

Anytime you have to teach
a consumer, the price goes up,

and you haven't proven
the cost of acquisition.

I just don't see it right now.

I'm sorry. I'm out.

Alexandra, it's not about
the quality of the product.

It's not even about
it's sellable.

The question is, where is
the purchasing decision made?

If you don't get me

at the point where
I'm trying to decide

to buy something for the new mom

in the family, right,
you've lost it.

You haven't cracked the code
on how to market it.

So for those reasons, I'm out.

Thank you very much, Mark.

Greiner:
You know, Alexandra,

the product is good, but there's
a lot of competition.

For me, I think
the price point is a problem.

So we're already looking at
a production partner overseas.

And we can bring down this
cost tremendously as we scale.

Right now, it's just too early
to be investable.

Lori, this is a perfect match.

You are on a very short list
of people

that I would do a deal with,

and I'm here offering


Thank you. I'm flattered,
but it's just too early for me.

I'm sorry. I'm out.

Thank you, Lori.

You know, I actually
love this product,

and I love what you're doing,

but it's just too expensive
right now.

Everybody's telling you
the same thing over and over,

and you've got to listen.

And I do think that parents care
about sustainability.

Here's the thing, Emma...
Just hear me
out for a second,

because I think
this is important.

And it's also important
that you come into the t*nk

and you walk away
with something.

Absolutely.

You will get
the price down in time.

But it's just, as an investor,

I can't help you because you're
too early in your journey.

So for those reasons, I'm out.

Thank you.

Alexandra, I'm
the only Shark left.

I'm just wondering,
am I on that short list?

[ Laughter ]
You absolutely are.

Because if I'm not...

Tell him he was number one.

You have a fantastic
track record

with female entrepreneurs...
That's correct.

First.
Second, you love investing

in recession-proof life events
like marriage and death.

Right.
Why not add birth

to the portfolio?

Well, your pitch is phenomenal.

But if you could have
told me your

customer acquisition costs,
which means you figured out

how to find them
when they had to buy it,

I would definitely have
poured gasoline on this.

So many entrepreneurs
come on this stage.

They have impressive sales.

They also have raised tons
of capital, and they're in debt

because they b*rned through it
on digital marketing.

Right.
Which is more expensive

now than it ever has been.
Absolutely right.

So when I went
to mentors and said,

"How do I grow a direct
to consumer luxury brand,"

they said, "Forget digital
marketing, build community

by appearing on podcasts..."

You're not doing it wrong.

But it's not
translating into sales.

I've created a new category,
and I'm ready

to dominate it.
I need someone to share

this vision with me,
and there is every opportunity

to make a lot of money
back in just a few years.

It's...

Ugh, it's a tough one.

Kevin, what are you doing?

You know what's
happening right now?

My team is watching this,
and they're saying,

"What the [bleep] are you doing?

Are you out of your...
Are you out of your mind?"

Aren't they saying
that every time you do a deal?

Greiner: Yes.
It's very bad

when I'm suffering like this.

I'm very unhappy with you.

Cuban:
So ask for your royalty

and make a deal.

All right.
$80,000 for 50%.



Oh, wow.

Narrator: Four Sharks are out.

Alexandra has an offer
on the table from Kevin

for her luxurious
baby blanket company, AU Baby.

But he wants a much bigger stake

than the 25%
she came in offering.

$80,000 for 50%.



Oh, wow.

Well, it's going to go
to zero or it isn't.


get you up in the morning.

I know that.
Yes, it is.

But I'm generous,
and I'm here to make a deal.

I'm offering you 30%
for $80,000.

[ Groans ]

Kevin, that should
wet your beak, as you say.

Okay, listen, the only way
I'm ever going to get

my money back is I got
to work like a dog.

Your money? You're only
giving her $80,000, Kevin.

Lori, leave it alone.

Go 30%, Kevin, and it's a deal.

No, I'm not, Lori.

We have to do a ton of work.


because you have nothing yet.

Oh, do it.

That would value us
at less than $300,000.

You have no value yet!

The secret sauce
of your deal is to figure out

customer acquisition.

The secret sauce
of this company is me.

No, I get it. What happens
if you get run over by a truck?

I own a sheep.

[ Laughter ]

I made you an offer.
You don't have to take it.


this deal with you.

I'll do it at 35%.

Amazing.
You have a deal.

[ Cheering ]

Good job, Alexandra.

You should be proud of yourself.

Thank you so much.

It's... It's you, it's you.

I'm so excited.

It's a hell of a presentation.

Congratulations, Alexandra.

Well done.
Congratulations.

Ulmer: I did give up more equity
than I initially intended.

You know, our valuation
was very appropriately priced

given where we are today.

That being said,
I did come here to make a deal,

and I understand that part
of a deal is negotiation,

and I feel good about it.

No, no, no, no, no,
Sir Richard Branson.

Branson: I'm asking
a question.

It has to be 600.

I think the water just has...

[ Laughter ]

Let me tell you what I think.

[ Gasping ]

[ Laughter ]

When Richard threw the water
on me, I was surprised.

I mean, I did not
see it coming at all.

Now, a lot of people might have
thought that was scripted.

Nope.

Greiner: Oh, my God,
I'm out of here.

[ Laughter ]

I mean, if the show can't go on,
the show can't go on.

I rarely get mad.
I just get even.

Narrator: Next in the t*nk
is a product

designed for women warriors
of all kinds.

♪♪

Hi, Sharks.

I'm Haley McClain Hill,

United States Air Force veteran

and CEO and founder of
TORCH Warriorwear.

Today I am seeking $150,000
for 10% equity in my company.

The first time I wore my uniform
was 10 years ago.

I was an Air Force ROTC
cadet for five years.

I then served as a lieutenant
on active duty for four,

and at the same time,

I was a professional cheerleader
for two NFL teams.

Herjavec: Wow.
This is my opportunity

to give women in the m*llitary
the opportunity to wear

not uncomfortable uniform
T-shirts catered towards men,

but the opportunity to have
both comfort and fashion

without
sacrificing functionality.

Introducing TORCH Warriorwear,
home of the Fearless Bodysuit.

I have created

the first-to-market
base-layer bodysuit

m*llitary women
can wear in their uniforms.

They come in two styles... a
long- and short-sleeve option...

And every color required
for each branch

of the m*llitary.

And our fabric, it's breathable,
stretchable, and snappable.

Let me show you.

[ Chuckles ]

TORCH is not just for
the m*llitary community.

We are now expanding
to include our sisters

in law enforcement,
fire fighting, and health care.

So, Sharks, who's ready to join
our fearless TORCH team

and start a female
uniform revolution?

O'Leary: Wow, Haley,
I got a big question

about m*llitary protocol.

Sure.
I mean,
right out of the gate.

Yes.
In the m*llitary,

is it okay to look hot?

[ Laughter ]
I'm not sure.

Are they okay with that?

Sir, absolutely.
That's all I have to say.

The thing is,
is the m*llitary requires

certain standards
for our uniform.

It has to be a certain cut
and a certain color.

So as long as it's the right cut
and color, you can wear this.

So we don't have to worry
that it's not any standards?

It's not an issue?
Not at all.

Talked to the Pentagon.
We're good to go.

[ Laughter ]
Because I'm thinking

you want... That's great.

Hello, Pentagon.
Is this okay?

I'm like,
"Are we good to go here?"

Yes, we are.

The fabric feels really nice.

It's got softness.
It has stretch.

The length of
the bodysuit itself

seems to me a little longer
than usual,

which I think is important
because bodysuits

usually drive you crazy
when they're too short.

Exactly.
Cuban: Haley, first...

Good job.
Thanks for your service.

McClain-Hill: Thank you for
your support, Mark.

Thank you.
But what made you

decide to be an entrepreneur?

Because obviously it wasn't
your first track.

It wasn't, it wasn't.
So my grandmother

actually served


Wow.
And she was the one

who told me to look into it
in the first place.

I was looking to go to college,
and she was like,

"This ROTC thing,
you can get it for free.

You can go, just serve
four years after."

Herjavec: Oh, wow.

Haley, you need
to educate me a little bit.

So you aren't allowed
to wear any old bodysuit?

I mean, I make millions
of bodysuits

at SKIMS and Good American
every year,

but you wouldn't be allowed
to wear those bodysuits?

We're not, no, because
it has to be the exact color

that we are authorized
to wear in our uniforms.

And then our shirt sleeves have
to be a certain length, as well.

And the cool part about what
our vision for the company is,

is it's not just a bodysuit.

And there's women at every stage
of their career...

Maternity, nursing... who are
in career fields such as,

they need
a fire-resistant bodysuit.

So we want to get into
the tactical and blend

that thing together
that I feel like SKIMS...

God, I love your brand.
I mean, it's just amazing.

But I think we could
open the door

to tackle this whole world
of women who are in these

tactical career fields, and we
understand what they need.

Is that required?

For pilots, maintainers,
and firefighters,

they are required to wear
a base layer that's FR, yes.

Yeah, that makes sense.

I love how nice
you're being to SKIMS.

Thank you.
But the elephant

in the room is, fundamentally,

are you going to make
a competing product?

I mean, why couldn't you enter
that market and vice versa?

Grede: Well, I'm just trying
to understand why someone

in your shoes just can't go out
and buy any bodysuits,

so long as it makes
the right requirements.

We're also not the only people
that make bodysuits.

So that's the bit
that I'm trying to understand.

How do you protect it?
Because it's a commodity.

That's what Emma is saying.

You've got a commodity.

McClain-Hill: Yes.
So let's hear that.

The biggest thing I would say
is, as a small,

female veteran-owned,
minority business,

the government specifically
wants to do business

with them first
before they buy bulk orders

from a larger manufacturer,
such as SKIMS or Under Armour

or something like that.
Let's talk about that.

Have they done that for you?

Absolutely.
We just booked and became

an official vendor for AAFES,

the largest retailer
for m*llitary around the world.

So we are officially
launching that next month.

Haley, do you have sales?

We do, yes.
What are your sales?

We launched in June of 2021,

when I was still
in the m*llitary.

We finished the year
with $16,000 in sales.

The next year, we quadrupled
our sales to $86,000,

and on track
for $500,000 in sales.

All bodysuits?

All bodysuits, yes.

Cuban: So what do you
sell them for?

So, Haley, what do you
sell them for?

What do they cost you to make?

Yes, they cost $13.

And we're retailing
the short sleeve for $60

and the long sleeve for $75.

And how does that compare
to others like SKIMS?

Pretty bloody good.

Yes, we're around
the same as SKIMS.

It's pretty good.

We are way more expensive
than, like, the normal...

Like Shein
or something like that.

We're more...

Well, it's much better quality.

You have to tell us a little bit
more about the product.

And I noticed that you've got
this little embroidery.

"Fearless."
Why do you have that?

So when I was starting
the brand,

I knew women in uniform,

we need those little
extra morale boosts

throughout the day.
Oh, I love that.

I mean, it's just tough.
So that's my handwriting.

And I was like,
"All right, girls"...

Like, how my grandma
passed the torch on to me,

I want to pass that torch
on to the women,

the future generations of women,
and say, "You can be fearless."

I really want women to feel
more confident in their uniform,

because we're so proud.

We're so proud
to wear our uniform,

but we want to feel part of it
and we want to look great.

My concern with this deal
is you get an Emma

or somebody else
that's already a behemoth,

and then they just crush you

like the cockroach
you are at this point.

Clothing is a total commodity
and really driven

by large unit volumes.

Good luck to you.
I'm out.

Greiner: What is your
financial situation?

So have you taken any loans?

Who are your partners?

So it's all me.
I have put $50,000.

I liquidated my...

Your own money?
My own money,

my retirement from
the Air Force,

and put it all into this.

My grandmother put $50,000
into it, as well.

How does your grandma feel
about you being here

today and pitching to us Sharks?

I mean, you guys would have...
You think I'm cool?

She's like... She's way cooler.
She's the best. You'll love her.

Like, look at her face.
I can't with her.

Um, she is just my ride or die.

And when you're in the m*llitary,
I feel like as a woman,

it's hard to find mentors.

I mean, she's just my rock, man.
She's my rock.

So she's so incredibly proud.

And she's like, "Make us
m*llitary women look good.

Finally, please, we need this."

And it's just...
I'm going to call her

as soon as we finish here.

I'm going to call her.
Cuban: Okay.

What you've been able
to accomplish is amazing.

It's just not my thing. It's not
my ride or die business.

So for those reasons, I'm out.

Thank you.

Herjavec: Haley, you've got
a great business.

My worry about it is,

to me, it seems like
a narrow market,

and just don't see it
as something for me.

I'm sorry. I'm out.

You know, Haley,
you don't need everyone here

to tell you how amazing you are.

And I think it's really
impressive what you've done.

When I start a business,

and I've started
many businesses,

the first thing I think about
is, like, what's my moat?

What actually makes me different

from anything else
that's out there?

And that's what I worry about
the most with this business.

There is no reason
that a SKIMS or a Good American,

or anyone else for that matter,

couldn't just jump
in this business and, like,

take over from where you are.

And, actually, I think
it's a good point,

because that's what
you need to think about.

How do you ward off
everyone else

who's already in this business

coming and encroaching
on your territory?

So for those reasons, I'm out.

Oh, Emma... Oh, but, Emma...

But I do wish you
the best of luck.

Listen, I literally
just am in love with you,

your energy, your commitment,

the fact that you serve
our country.

So I am going to take
a flyer on you, my dear.

Cuban: There you go.

I am going to give you an offer.

Uh, it's going to be higher than
what you came in asking for.

So I am going to
offer you the $150,000,

but I would like 25%.

What do you say?

Lori, thank you so much
for your offer.

May I counter with 20%,
and you've got a deal?

All right, let's do 22.5%,
and you've got a deal.

Lori, let's do this.

Whoo!
Cuban: Yay!

Yay!
Thank you.

My Sagittarius sister.

Oh, I knew... I knew.

I was like,
"There's something about her."

Congratulations, Haley.

Thank you.
Well done.

Thank you, guys.

Thank you!

[ Laughs ] Whoo!

Grams.
Woman: Haley?

I got a deal!

[ Laughs ]

I'm so...

[ Laughing ]

happy for you!


♪♪

♪♪

♪♪

♪♪