01x04 - Episode 104

[bunniefuu]

- Tonight,
- five hopeful entrepreneurs

- who believe they have
- the next big business idea

will enter the shark t*nk

seeking the financial backing

to make their dreams come true.

I have a product

that people want.

They fall in love

with my product.

I just need some help.

- I never let emotion
- get in the way of an investment.

The sharks are ready to invest

using their own money,

but only for the right person

with the right idea.

I'll give you the $350,000

for 40% of the business,

and the 40% is nonnegotiable.

Take the money,

you crazy chickens.

But first, the entrepreneurs

must convince a shark

to invest the full amount

they're asking for,

- or they'll walk away
- with nothing.

This deal that you're

offering me is a shark deal.

You are dead to me

if you turn around.

Oh.

- And if the sharks hear
- a good idea,

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

Listen, this is my business.

I know this business,

and I need control.

Men always want the control.

Barbara, you are a black widow

in stilettos.

Who are the sharks?

Kevin O'Leary

is a venture capitalist

who started a software business

in his basement,

which eventually sold

for $3.2 billion.

Barbara corcoran

is fiery real estate mogul

who turned a $1,000 loan

into an empire

worth hundreds of millions.

- Kevin harrington
- is the king of infomercials.

His genius marketing

of products

- has amassed
- billions of dollars in sales.

- Daymond John
- turned rags to riches

with his clothing brand fubu,

which has grossed over

$6 billion.

And Robert herjavec,

a technology tycoon

who sold his Internet companies

for over $350 million.

♪♪♪

♪ the best things

in life are free ♪

♪ but that ain't really

good enough for me ♪

♪ I need money ♪

♪ that's what I want ♪

♪ that's what I want ♪

♪ that's what I want ♪

♪ that's what I want ♪

♪ that's what I want ♪

♪ what I want ♪

♪ that's what I want ♪

First up is kwame kuadey,

who's come to the shark t*nk

to fulfill his American dream.

♪♪♪

My name is kwame kuadey. I live

in ellicott city, Maryland,

with my wife

and our newborn daughter.

Coming to America was

a big achievement for me,

- because, you know,
- where I come from,

- there are
- very few opportunities.

I grew up in a small village

in Ghana, west Africa.

- When I was growing up, we had
- no electricity or running water.

- I remember I used to
- do my homework at night

with a-a kerosene lamp.

Right out of college,

I was recruited into

a management training program.

- Recently, with how the economy
- turned worse,

my position got discontinued.

♪♪♪

I was devastated

when I lost my job

- because I had a family
- to support

and I had a new business

that I just started.

I run my business

out of our home.

Uh, my wife helps out

with the business.

- And it's a great situation
- because, uh, we get to work

on the business together

and spend time with each other.

Wee! wee, wee, wee, wee.

Ooh.

- The thing I'm most worried
- about right now

- is figuring out a way
- to support my family.

- I desperately need
- this money from the sharks,

- because I've already
- put in a lot of money

into this business,

and if I don't get

this investment,

- I'll probably have to give up
- on this dream.

♪♪♪

Hello.

I'm kwame kuadey,

c.e.o. and founder

of giftcardrescue.

I am here seeking

a $150,000 investment

for a 30% stake

in my business.

Each year, 10% of all gift cards

sold in the United States

go unused.

For 2008, $80 billion

in gift cards were sold.

That means there's

an $8-billion industry out there

of unused gift cards.

Well, giftcardrescue has

a solution to this problem.

We help people

- turn unwanted gift cards
- into cash.

And here's how it works.

You go to our web site,

- you enter
- your gift card information.

We'll tell you how much

we'll pay for your gift card.

On average,

we pay about 65% to 70%.

We'll then give you an address

to mail your gift card to us.

Once we receive the card

and verify the value,

we'll wire the money into your

PayPal account within 24 hours.

We then turn around

and sell those gift cards

on our web site

at a discount of 10%.

- And we make money on the spread
- between how much

we buy the cards for

and how much we sell them for.

And with very little marketing,

we are on track to sell $120,000

in gift cards this year.

Walk me through

the numbers a little bit.

You're saying you have

$120,000 in sales.

Is that the face value

of the cards you've sold,

or is that

what your portion is?

If I buy a $100 card...

Right.

- For $65
- and I sell it for $90,

the $90 is what counts

towards the sales figure.

So on that $120,000,

what was your profit?

So far this year,

we've sold $55,000.

- But we are on track
- to sell $120,000

for the end of the year.

Kwame, what do you think you'll

make on the $120,000, profit?

What will your profit be?

Our gross margin is 25%.

Wait a second.

That's where I'm stuck.

Okay.

There's a big issue

in your business model.

Okay.

What happens if all of a sudden

you have to buy

$100,000 worth of cards

and you only sell $30,000?

Who capitalizes the difference?

Over time, I have learned

which cards sell.

So you refuse people

that come to your site?

- You say, "I can't buy that card.
- I have no interest in it"?

Yes. there are about



It's mainly national retailers.

- There are certain merchants
- that I don't buy cards from

- because I know
- they don't sell.

- Your margin's good, and you've
- done a really good job

of answering all the questions.

Thank you.

So, kwame, you asked

for $150,000...

Mm-hmm.

For 30%.

Yes.

So that means 100% of it

is worth roughly $500,000.

Yes.

Why is it worth $500,000 today?

- Well, my valuation is based
- on three factors.

Number one is the sales

and--and--and growth potential

of the business.

Okay, so that's one--

potential.

That's one.

Number two,

I was contacted recently

by the biggest online retailer,

- and they wanted
- a partnership with me--

- do I know
- this online retailer?

- Yes, Amazon.
- Wow.

- Okay, - that's a good one.
- Because--yes.

That's a great one.

Give me the third one.

Give me the third one.

I think it's me.

Kwame...

I like you, I think

this is a great business.

But this is not the type

of business I love.

For that reason, I'm out.

Kwame, I'm not interested.

I don't think I'm the right

partner for you. I'm out.

Kwame,

I like the concept.

It's just not ready

for me to take the risk.

I'm really sorry,

but I have to say, I'm out.

I don't think you're worth

what you think you're worth.

So we're gonna start here.

I'll give you $150,000

for 50% of your business,

- because you're basically
- a start-up.

Let's start there.

I have a counteroffer.

Given the... work

I have done so far,

and the potential for it,

I'm willing to offer 40%

of my business for the $150,000.

I think 50/50 partners

is the right way to go.

I'm gonna write you a check

for $150,000

on an idea that's embryonic

behind a really good guy

that's willing

to work like a dog.

That's what I think.

But I'm not willing

to change my offer.

- Kwame, I have a twist
- to the deal.

I wanted to see

what you were gonna do,

but I'm glad you came back

with a counteroffer.

I think you're the real deal.

But I think you need more cash

than $150,000.

So I'm gonna partner with Kevin.

I'm gonna take it to $200,000

for 50% of the business.

And guess what. You get

two great guys to work with.

- This guy has screwed up
- my deal,

- but he's done it
- in a very good way for you.

I'll deal with you later,

Robert.

Every now and then in your life,

as you're trying

to chase the dream,

you get to a crossroad where you

have to make a decision.

This is one of those times.

Which way are you gonna go?

But he must give up

half his business.

So I'm gonna partner with Kevin.

I'm gonna take it to $200,000

for 50% of the business.

And guess what. You get

two great guys to work with.

Which way are you gonna go?

I will take it.

I think it's a great decision.

- It's a great deal.
- It's a good deal for you.

- Good deal.
- Congratulations, kwame.

- Thank you very much.
- All right.

- Appreciate it very much. - Yeah, good for you.
- Nice job, my friend.

- This is great.
- Thank you. I appreciate it.

- This is wonderful.
- Thank you.

Thank you all.

Good luck, kwame.

That was a good deal.

It's a great deal.

This guy is gonna pull it off.

Great deal.

You know what? We could've

gotten more from him.

Robert, you made me be

a nicer guy than I wanted to be,

and that's bad.

Deep down, Kevin,

I think we're twins.

I think we're both nice guys.

I think

you're the evil twin.

- This is what the American dream
- is about,

- and I'm very grateful for it.
- I feel very blessed.

Next up is Gina cotroneo,

who's in the business

of spreading happiness.

♪♪♪

My name is Gina cotroneo.

I'm from Dallas, Texas.

And my company

is soul's calling incorporated.

The purpose of soul's calling

is to add happiness

in the world.

- We are all connected
- with one another.

So the company exists

to make items

that remind people

to be at their happiest self

and--and their most joyous self.

The tagline for soul's calling

is "speak your heart."

So before I send

every package out,

- I put my special signature
- on it,

and that's a happy heart.

And then they get the hug.

And it goes out to the person

that receives it.

It's all part of my plan

for world happiness domination.

♪♪♪

My name is Gina cotroneo.

- I'm the founder of
- soul's calling, incorporated.

And I'm here

asking for $150,000

for 25% equity in my company.

Soul's calling

is gifts and accessories.

- Everything has
- a positive message on it

and positive energy in it.

The line really kind of started

out of a healing process.

In 1997,

while living in Dallas,

I survived an att*ck

in my apartment.

And due to the nature

of the crime, uh,

it became very high profile.

And my story was told

lots of places.

And as that happened,

I noticed something--

that what this one person

had done to me,

this one negative action,

- really spread out
- as a ripple effect,

and affected

literally millions of people.

And I thought that if somebody

could affect millions of people

with a negative action,

- then somebody could affect
- millions of people

with a positive action.

And soul's calling

was born out of that.

In 2004, I decided

I could really, maybe,

potentially make

a business out of this.

And the first object

that I launched with

is the inspirella umbrella.

These all have

happy sayings on 'em.

This one says

"let your smile be sunshine."

You know, how many people have

walked down a New York street

and seen nothing

but black umbrellas?

- You know,
- that is kind of depressing.

- And if somebody were to carry
- one of these,

- and how many people
- might see this message

- and be affected by that
- in a positive way.

And after that

came the connection bracelet.

It comes in two pieces.

They snap together.

Each piece says

"we are all connected."

Thank you.

- So I'm just giving you those - as a reminder.
- Thank you.

Oh, cool. Thank you.

The next object that came up

were sole seekers sandals.

These leave words in the sand

when you walk.

What a great idea.

Lori is going to demonstrate

in the sand.

The bottoms are recycled

flip-flops and rubber--30%.

And the straps

are natural rubber.

- Gina, I get you've been
- doing this for years.

What are your sales like?

Just give me dollar numbers

for the last two years.

The last two years?

$11,000 and $18,000

respectively.

I mean, one thing I'll say about

you is you know your numbers,

except they're

really small numbers.

I know, I know.

That's why I'm here.

I need to be bigger.

How much money have you put

into this business so far?

Close to $100,000...

I believe that.

Of my own money.

- It's been every tax refund
- that I've had,

every, you know, bonus when

I had a job, every...

Is it important for you

to keep this going?

Absolutely.

Why?

Because it is part of

my mission on the planet.

Gina, is this a mission that

you believe in as a business

or is this a mission

that's a personal goal for you?

This mission is a business.

Happiness

is a serious business.

And, yes, I'm touchy-feely,

but I do think there's

something of value here,

- or I wouldn't keep going
- with it.

It's not just a labor of love.

I'm determined.

I am a determined person.

I have a product

that people want.

They fall in love

with my product.

And I know that I can

make money with that.

I just need some help.

Gina, your numbers--

your numbers are...

So small.

You know, I made myself a deal

after the--the last

trade show that I was at

that if I didn't make

my money back on the trade show,

then I was

going to take a break.

When I came back

from that trade show...

I hit the wall.

And I literally asked...

Universe, god, force--

whatever you want to call that--

sorry.

All right. What I'm doing

isn't working.

I'm doing everything

that I know how to do

to make this business work.

It's not working.

What do I do?

We have to deal

with the numbers.

That's the thing about numbers,

they never lie.

You told me that

I should give you $150,000

and I would own 25%

of your company.

Correct.

- That means you're telling me
- your company is worth,

- today, four times that amount.
- 600--$600,000.

$600,000.

I'm an investor.

I gotta be true to that

because I know money

has no soul, all right?

I never, ever, ever

let emotion get in the way

of an investment.

Your business

is not worth $600,000.

Here's what it's worth--zero.

That's because it doesn't

make any money.

Somebody has to tell you that.

It might as well be me.

No, I will not

give you any money.

And I don't think you should

go on with this. I'm out.

Well, I-i appreciate

your opinion.

Um, but...

You have a passion for this.

And I really believe

that you love what you do.

And I think

that it's a calling.

- I think that you can heal
- a lot of people.

But as a business, it's not

here for me, so I'm out.

Okay. thank you.

Gina, Gina, I-i admire

your entrepreneurship.

I wish you the best of luck,

but I'm--I'm out.

Okay.

I see you

not as a businesswoman.

- I see you as a minister
- of goodwill.

- I couldn't envision
- investing in your business

- because I don't see it
- as a business

that you even

really want to run.

This stuff is gonna

make you go crazy.

I'm out.

Gina, I--

before you think this isn't

a serious business, I--

no, no, no.

Hang on a sec.

- I do think
- it's a serious business,

- and I--and I disagree
- with Barbara.

- I think you are
- a serious businessperson.

I just think that the business

is telling you something.

This idea may not be a good one

as a business.

And it may be time to change.

Don't you think that maybe

you've reached that point

with this business?

Not yet, no.

This will always exist

at whatever level

I can make it exist at.

Gina, I think

every great business was started

- with great emotion.
- Mm-hmm.

But as you know, the reality is,

you've got to adapt.

And you're not adapting to what

the business is telling you.

Okay.

You gotta let this go.

I'm out.

Well, I really appreciate

all of your advice,

and thank you.

Okay, great.

- Thank you, Gina.
- Good luck.



$18,000 in sales.

- I mean, that just...
- I think you're right.

I think, Barbara, it's probably

a passion and calling for her,

- not a business.
- A passion? It's a religion.

- As long as people
- need happiness,

soul's calling will be there

to provide it.

Who believes he has

an entire product line

for a huge untapped market.

♪♪♪

Hi, my name is Dan claffey.

I'm the founder

of coffee brand gifts.

I'm here today asking for

a $300,000 minimum investment.

I'm willing to give 40% equity

of coffee brand gifts company.

In 1999, I went to

a coffee trade show

called coffee fest.

Only 2% of the 500 companies

that were at the trade show

had coffee novelties

and gifts.

I said to myself, "wow.

- Why don't I develop products
- for this industry?"

So what I did was this--

contacted my patent attorney

and said, "can I trademark

the word cappuccino, Espresso,

"latte, decaf, mocha and java

for the toys, game boards,

plush toys?"

- And he said,
- "well, you got a 50/50 chance."

So I went for it.

No one has ever put

the famous coffee branded names

- on the plush toy industry.
- Did you get the patents - or not?

Yes, I got all the patents.

- So, Dan, you're the only guy
- in the world

that can make a Teddy bear

with the word "coffee" on it?

I'm only guy in the U.S.--

- all right, Dan, I'll buy that
- you have a trademark.

Why do I care?

Okay, I have done surveys

out at coffee shops--

extensive surveys--

and people who were kind enough

to sit and look at the game,

and sometimes play the game--

Dan, you gotta be kidding me.

Do you have any orders

for any of this crap?

I have--i have--

- do you have purchase orders
- from somebody who wants

- a thousand bears with the word - "cappuccino" on it?
- I have commitments from--

I have commitments

from a lot of companies.

Dan, what does that mean?

- Is that like when I was young
- and in a bar

- and a-a girl said
- she'd call me and never did?

- I haven't taken orders yet
- because I'm this close.

- I just need--just the capital to
- get the product off the ground.

- Don't you think you're
- doing it a little backwards?

Why not get the orders first?

- I haven't gone and--and, uh,
- put myself in a position

to where I would need

a lot of sales right now.

- That's the biggest position
- you need to put yourself in.

Let me get this right.

We don't have any orders yet.

I give you $300,000.

We make a lot of bears.

We make a lot of games.

We make a lot of stuff--

tchotchke stuff.

- It doesn't sell.
- Then I k*ll you.

How much do you have,

personally, into this business?

I probably have about

$400,000 or $500,000--

whoa.

Dan, Daniel, please stop. It's

painful for me to hear this.

You know what business

you ought to be in?

- The research business.
- You are so good at it.

- You've been researching
- this thing to death,

and you missed the Mark.

You don't have an order.

I am out.

Listen...

Everything I've done

- has been done
- in a timely fashion.

- This moment in front of you
- right now

is the perfect moment.

- Getting orders is the only thing
- you haven't done.

- And guess what. I--
- guess what.

- I didn't want to get orders
- and promise delivery

until I had capital

to get 'em done.

No!

No!

No, no, no, no, no.

- Daniel, what you just said
- was un-American.

It was un-American.

Then I agree with you--

I agree with you 100%.

From now on,

I'm gonna do it your way.

I'm gonna get the orders.

I'm gonna--and--and then

- we're gonna sell the product.
- Dan, are you afraid of sales?

- Absolutely not.
- You are!

- 25 years, I've been in sales
- and marketing,

- and I'm
- the top of my field, 5%.

And you have no sales here.

I'm out.

Dan, you said

you're top in sales,

but there--

there are no sales here.

I gotta tell you,

I-I can't go forward. I'm out.

Dan, I can't give you

my money.

- Two years from now,
- we're gonna be sitting around,

and you're gonna have a million

reasons and a million excuses

why my money's gone, and we're

not gonna have any orders.

I'm out.

So I'm completely out because I

didn't get a purchase order?

Daniel, stop.

Wake up and smell the coffee.

A million people drink coffee.

Not a million people

may want to buy bears.

"The New York times" published

an--an article two weeks--

then why are there no orders?

Two weeks ago--

why are there no orders?

You've completely wasted

my time.

I'm out.

That's fine.

Was it--thank you.

And I-i thank you.

But I'd say this, that--

what are you

thanking me for?

What's happening here

is your perception of me.

You're making a judgment call,

and you have--

no.

- You have the right to that.
- You have no sales.

Thank you so much.

Thank you.

♪♪♪

Oh, my.

That was so frustrating.

Imagine not having one order.

Not even one.

Well, he's all over the place.

Yeah, but any order, anything.

He claims to be

a super salesman.

I wanted to fire him,

and he doesn't even work for me.

What I've done is huge.

Nobody's gonna minimize

what I've done.

They don't have a clue,

- and I'm just gonna
- prove 'em wrong.

That's all there is to it.

My name is Paul watts.

I'm the founder and owner

- of graffiti removal services
- in Sacramento.

This is my dog Lexie.

She comes to work with me

every day. Come on.

My business is a mobile

graffiti removal service.

- I used to work for the city of
- Sacramento painting light poles,

- and then I would always see
- graffiti on the light poles.

So then I decided,

I'm gonna start a service

to remove the graffiti.

I'm gonna start taking it off

from top to bottom.

Graffiti in the United States

is a huge issue.

- I mean, it's blighted
- our communities everywhere.

- And that's it.
- Come on, Lexie. Come.

I want to franchise my business

and get a mobile

graffiti removal service

in every city

across the nation.

- There's a huge market out there
- for graffiti removal.

- That's why
- it's a great opportunity

for the sharks to get on board.

♪♪♪

Good evening.

My name is Paul watts.

I'm the founder and owner

of graffiti removal services.

G.r.s. is the nation's first

completely mobile

graffiti removal franchise.

I'm here this evening

asking for an investment

of $350,000

in exchange for 15% ownership

of my company.

Back in 1998, I was employed

with the city of Sacramento

as a facility

maintenance painter.

But it wasn't until

a Saturday morning

- when I was volunteering
- for a community cleanup

that I noticed a huge sense

of civic pride.

And it was at that moment

I had an idea.

- That I could create a service
- that could not only

benefit the community

I was living in,

- but also make a little
- part-time money on the side.

Today I'm gonna show you

how graffiti can be removed

easily and effectively

with a biodegradable product

that's nontoxic

and non-damaging.

Our proprietary products

can be applied

to the graffiti...

Safely, effectively

and easily.

So, Paul, I'm impressed.

Thank you.

But why are the trucks here?

- Is the business
- your proprietary chemical?

The--the business is

the graffiti removal system,

- not the product.
- The product is proprietary.

It complements the business.

It works hand in hand.

But you invented that product.

No.

Oh.

I invented the system.

- The product comes from - another manufacturer.
- Ahh.

- It's proprietary to--you can't
- own a g.R.S. Franchise

- without using this product,
- because--

- but can anyone else
- get that product

without the g.R.S. Franchise?

Not in a retail outlet.

They could buy it

from the manufacturer,

but they don't know

about it.

- So I get the civic duty piece,
- and that's great.

- But what about your duty
- to make money for investors?

How would I make money

giving you $350,000?

Off royalty fees

and franchise fees.

Have you sold any franchises?

No, sir. I've only been approved

the last month and a half.

Have you got

any revenues at all?

Yes, sir, I do.

- I have my company-owned location
- in Sacramento

that now generates

$230,000 a year.

What are you netting

out of that $230,000?

$75,000.

Paul, how much does it cost

for me to start-up--

to buy the truck,

buy the machine?

Like, that stuff's gotta

cost a lot of money.

Our low end to get into

a g.R.S. Franchise is $60,000.



Okay, I-i-i buy that there's

a business here, all right?

Yeah, and I buy it.

But the problem is,

you're telling me

that I get 15% of your business

for $350,000.

I multiply what

the whole business is worth

- based on what you're telling me
- 15% is worth,

- and that's over $2 million.
- Yes, sir.

And you haven't sold

one franchise yet.

No, I based that

- off my company location
- in Sacramento

and the rate of growth.

It's a huge number

you're throwing out here.

- $2 million? You haven't sold
- one franchise yet.

- I mean, does that
- really make sense?

So what would you think

a fair price would be?

I think I'd get 110%

of your business for $350,000.

I think the franchise

is already developed.

It's already approved.

And the company has no debt.

What I don't get here is,

the guy you sell

or the woman you sell

who drives that truck,

how are they gonna convince

a municipality

to even change their ways

and try a new product

in a government system

that's nothing but red tape?

I don't get that. I don't

buy it. And for that, I'm out.

Paul, I have

a fundamental problem.

Your success is gonna be based

on you getting franchise fees

paid on a monthly basis, okay?

Once you put a guy

into this business,

- why is he gonna send you
- a check every month?

He knows the business.

He's getting his accounts.

What does he need you for?

And I-i don't think

the franchise concept

is gonna work

for this business.

On that note, I'm out.

- You have
- nothing proprietary here--

- not--not the machinery,
- not the idea

or not even the chemicals.

I'm sure sooner or later,

as soon as you

make this more popular,

that chemical company is gonna

make it available for retail.

So I can just go and pick up

that bottle for $2,

spray the crap on it

and wipe it away.

And with that... I'm out.

Three sharks are out,

but Paul still has two chances

to make a deal.

I'll give you the $350,000,

but I'd have to--

I mean, I want 75%

of the business.

Robert, I'll go in

on your deal.



of ours. He works for us.

It's a fantastic deal.

Re out,

but Robert and Kevin

have teamed up

to offer Paul $350,000

for a 75% stake in his company.



of ours. He works for us.

It's a fantastic deal.

Thank you, but no.

Wh--

no.

What do you mean "no"?

There's no "no."

No.

You're making a mistake, Paul.

I gotta tell you.

- I think you're making a mistake. - When you walk
out of here, - I won't even think of you again.

- I want you to know that.
- Yes, you will.

- No, I won't.
- You are dead to me.

- Every time you see graffiti
- on a sign...

You are dead to me.

You are dead to me.

- You're gonna say, "I should've
- invested in that company,

'cause he can go to

the municipality"...

Nope. never gonna think--

"and he can be

their contractor."

Paul, there's a million deals--

a million deals

in the naked city.

- The next guy's gonna
- walk in here and get my money,

- and he'll get rich,
- but not you.

- You are dead to me
- if you turn around.

Are you certain you don't

want to think about it?

No. there's nothing

to think about.

I--

this deal that--this deal

that you're offering me,

it is a shark deal.

Oh.

All right. Opportunity knocked.

No one was home.

Turn around. Get out of here.

Paul, you're a good guy,

but, uh, you're gonna get

run over.

♪♪♪

Overvalued the business.

What an opportunity.

Great opportunity.

We could've helped that guy.

- Everybody wants to get rid
- of their graffiti.

This is a great idea.

Anyways, look,

he's dead now. He's gone.

Their offer would have made me

an employee of my own company.

And there's no way

that I'm gonna have somebody

out there telling me what to do

when I know best.

Next into the shark t*nk--

Amy feldman and Allison costa,

who need an investment to grow

their fledgling business.

♪♪♪

Hello, I'm Amy.

I'm Allison.

And we're from coverplay.

We're here today to ask

for a $350,000 investment

for 15%, uh, equity

in coverplay.

This is a play yard,

and they are used

in people's homes,

they're used on cruise ships,

they're used on--in day care,

and they are

a disgusting mess.

Uh-oh.

Oh.

They spill in there.

They poop in there.

Oh, stop the madness.

Ew.

Baby food, snot.

That's disgusting.

Ah! oh, my...

Oh, that's disgusting.

This is a petri dish...

Ugh.

Of what goes on

in a typical play yard.

So then, wait.

Your precious little baby

goes in here.

Ugh!

Oh, not the baby.

We actually have

the only solution.

Coverplay.

Let's go over here.

Coverplay is the first

and only...

Slipcover for play yards.

- So you bring that with you
- wherever you go?

Is that the idea?

Well, the hotels can provide it

for the guests as well.

So, Amy, who--

who's the customer?

Is it the hotel or the parent?

We have multiple--

multiple customers.

- The, um, on one end,
- it's the retail.

It's the actual consumer.

- So it's the grandparent
- or it's the parent using it.

But then it's also--we can sell

to the hospitality industry.

They can use it

as a retail outlet as well,

because they can offer it

to their guests to--

for purchase.

We launched our product, um,

it hit the shelves in August

of this past year,

and we launched in target.

Wow.

I'm impressed.

And the number is?

And the number is, uh,

we've done $200,000 so far.

We got into the largest

hotel distributor in the world.

We're shipping marriott--

Hilton...

Hilton--

best western, wyndham,

royal Caribbean,

carnival cruise line.

- What are the sales
- through all those channels?

Well, this is collectively.

It's up to $200,000.

And that was

the initial opening order?

Yes.

- Did anybody reorder?
- Yes.

- Yeah. - We're getting reorders
- all the time.

All the right answers.

Do you have a patent on this?

Two.

Yes, we have

two U.S. patents.

You have distribution.

You have sales.

- You have a patent.
- Why do you need any money?

Nobody knows we exist.

It's a brand-new product.

- We just need
- more product awareness.

And that's what

our accounts have told us.

Nobody is going into

a store right now...

And looking for coverplay.

Saying "I need a coverplay.

I need a slipcover

for a play yard."

Give me a real, tangible reason

why you need $350,000

for your business today,

besides marketing.

How will you spend it?

How will you--

how will--

break down the $350,000

really quick.

Operation--operational costs.

Operation means salaries,

you're saying?

It means salaries. It means--

employees, sales reps.

Ware--warehousing.

What's the--the age group

of--of the--

zero to 2.

- That's the concern that I have
- from me in my business,

because what I do

is television advertising.

I can't afford to buy

mass-market TV time

to go to somebody that's got

a zero to 2 year old...

But it's a--

but--but--but--just--

which is--which is

too niche for me,

so I'm gonna say I'm out.

Okay.

Thank you.

Thank you.

Amy, how much cash

do you have into it?

We each are about, uh,

what, $50,000?

Yeah.

Into it.

Each of you put up

$50,000?

Mm-hmm.

How long ago?

A year ago.

Okay, so a year ago,

let's say...

It was worth $100,000.

It was worth $100,000.

- With no sales, no nothing.
- And the patents - were pending, too.

Just an--just an idea.

- And a year later,
- there's $200,000 in sales.

You're offering me



for $350,000.

That means

you want me to believe

your company

is worth $2 1/2 million.

That's a lot of peepee

and pooh pooh.

- We've gotten into tar--target
- doesn't take unbranded products.

- I get it, but, ladies, - don't be--
- but--but--hear--hear--

hear me out. Hear me out.

Don't be savages.

We're the sharks, not you guys.

This is unbelievable.

It's not worth

what you're asking.

Oh, really?

But I'm looking

at the two of you,

- and I'm thinking
- you got that spunk

that's gonna drive this train

right to the finish line.

Now here's the offer--

I'll give you the $350,000

for 40% of the business,

and the 40% is nonnegotiable,

all right?

And the $350,000 is to be used

only for the development

of the product--

not for salaries,

not for little vacations,

not for special promotions.

$350,000--the full amount

you're looking for...

- Mm-hmm.
- For 40% of the business.

That leaves

both of you in charge.

Okay.

I'll give you $350,000,

and I will hand it to you

towards the manufacturing

on your orders.

And then I will be willing

to finance

- all the other manufacturing
- and production

- for the existence
- of the company.

But that comes

with a 65% ownership.

Amy, there's two offers

on the table.

Barbara's offer is $350,000

for 40% of the business.

- It's got
- some problematic conditions

on how to use the money.

Daymond's offer is $350,000

for 65% of the company.

But mine rolls over to you

having a strategic partner

who will finance for the rest.

That means you get

my warehousing, trucking,

billing, shipping,

everything.

- Amy, Allison, why don't
- you guys go in the hall...

Okay, okay.

And discuss it

and think about it?

- That we'll do.
- Okay.

Thank you.

We just need pen, paper,

calculators.

Thank you.

Oh, god.

Allison, what are we

gonna do?

You don't--you don't care

so much about the control.

Barbara--

- these girls are capable.
- They're totally ca--

- Barbara, you're being
- too generous.

You're being too generous.

You're being

way too generous.

Barbara, this is my business.

Listen, this is my business.

I know this business,

and I need control.

It's a pretty cool patent.

A very cool patent.

It's a fantastic patent.

Yeah.

Ta-ta-ta-ta-ta.

Sorry for the delay.

What do you want to do?

Here's our thought.

Okay.

We don't want to--we don't want

to give up controlling interest

of our company.

I could ask for 50%

and say let's be even.

I asked for only 40%

out of respect for your talent.

I just want to bring my 35 years

of savvy business experience--

I took 1,000 bucks and turned it

into $66 million,

which was no accident--

and bring it to your table

to help you.

- But when you start talking
- about experience,

we talk a different language.

She could run circles

around me

in any aspect of real estate.

Which has nothing to do

with this business.

We are talking a different

understanding of business.

I'm with you, daymond.

What if you got

a little more cash?

If you have an issue

with the 65%,

what if I came in with daymond

and gave you $450,000

instead of the $350,000

for the 65%?

It's the 65%

that bothers us.

$500,000.

Take the money,

you crazy chickens.

Take the money.

One of the things--

I know you want the 40%.

Would you be willing

to come down on your percent

and take part of that

as ownership in the patent?

Whoa. hold it a minute.

This includes the patent.

The patent's

the heart of this business.

I didn't know you had

put that to the side.

- Amy, the patent wasn't
- part of the company?

- No, the patent is--
- the patent is separate.

- Allison owns the patent.
- The patent is--

- why have you wasted
- our time?

My--my offer is retracted.

Mine, too.

Yeah, my offer's

off the table.

♪♪♪

But a new wrinkle

could jeopardize everything.

The patent wasn't part

of the company?

No, the patent is--

the patent is separate.

Allison owns the patent.

My--my offer is retracted.

Mine, too.

Yeah, my offer's

off the table.

Ladies, please,

for this kind of money,

- you have to vet the patent
- into the company.

- Wait. who owns the patent?
- Allison owns it.

- 100%?
- No, I own 60%.

Where's the rest of it?

Amy owns a portion

and my ex-husband

owns a portion.

Oh, my.

You have to bring that

into the company.

Retracto!

We needed to know that.

Yeah, but it's not

very difficult--

Allison--

retract.

But since I own--

the first four words out of

your mouth should've been that.

Wait, wait, wait, wait.

Is your ex-husband

a friendly ex-husband?

Yes.

Will he vet this

into the company

for a piece of your equity?

Yes.

- Now wait, wait, wait, wait.
- Can you--

just so we can decide what we're

gonna do with our time today--

is this patent--is it available

to put into the company?

Yes.

Okay, Allison, just tell me

you'll throw the patent

into the company.

We'll throw the patent

into the company.

Okay.

Oh!

- Are we--
- are we back, then?

- I don't know.
- Are we back on?

- I love these girls. These are - crazy, crazy chickens.
- Well, hang on--

wait. let's modify

this deal a little bit.

Let's leave it at the $350,000.

- I want to go a third, a third,
- a third with daymond.

- What's the dollar amount
- that--that's on the table?

- $350,000.
- No. it was up to $500,000.

It was up

to $500,00 before.

$350,000 cash.

You get daymond

and the back office,

which is amazing.

You uncle Kevin and you get

Robert when you need more cash.

But we gotta start at 51%.

Well, let me just make

a couple of comments here.

One, men always want

the control.

They'll package it this way

or that way,

and it makes great sense,

but in the end,

they want the control.

I, too, had a majority partner

at one time,

and he only wanted



And seven years later,

he married my secretary.

- He left me high and dry
- and almost broke my back.

So I've been there.

Barbara, you are a black widow

in stilettos.

Barbara is great.

Barbara's fabulous.

I think she makes total sense.

You're fabulous.

One offer is three sharks,

$350,000, for 51%.

The other offer

is one shark...

- An honest shark.
- A sharkette.

For--for $350,000 with lots

of conditions on the money--

for 40%.

One.

We have to make

a decision.

♪♪♪

What do you

want to do?

You want to do it?

All right,

Barbara. you're in.

Ladies...

- All right.
- Ladies, ladies, ladies.

- Thank you, guys. - Ladies, ladies,
I think - you made a mistake.

You made a big mistake.

You did not.

- Horrible mistake.
- You made a huge mistake.

I don't think we did.

You know what you're gonna do?

You're gonna be successful,

and you're gonna be happy.

Wait and see.

We made a great deal.

Ladies, it's over between us.

Okay, good-bye.

Oh, my god.

Oh, my god.

- You got 'em. You sh--
- you out-sharked 'em.

Barbara against

the three of you guys?

How did you guys let Barbara

take down the three of you?

You know why?

They were too greedy.

Well done, Barbara.

Unbelievable.

Thank you.

I can't believe I'm crying.

- You know, the opportunity,
- it just gave us hope, you know,

- that there's somebody
- willing to help us.

And they believe

that our product is just...

It has something.