01x06- Episode 106

[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.

Come on, that woman put her life

into this for three years.

So what? Life is hard,

then you die.

Enough.

Get over it.

I've gotta change chairs.

The sharks are ready to invest

using their own money,

- but only for the right person
- with the right idea.

We make protective underwear

for flatulence.

I'm wearing them now.

They look good.

But first, the entrepreneurs

must convince a shark

to invest the full amount

they're asking for,

- or they'll walk away
- with nothing.

You gotta get

to my negotiating range.

My negotiating range is 25%.

I love him!

And if the sharks hear

a good idea,

they'll fight each other

for a piece of it.

- Barbara,
- are you making an offer?

I am. The offer is--

remember I'm a marketing

and branding genius.

♪♪♪

♪ 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 Jonathan Miller,

a young entrepreneur

with an innovative

Internet business.

♪♪♪

My name is Jonathan, I'm 29,

and I live in Chicago

with my wife Jenny.

- My company is element bars.
- We do custom energy bars.

So the inspiration

for element bars was that

- I used to eat an off-the-shelf
- energy bar and then crash.

So I'd look at the label,

and the label had a list

- of completely unpronounceable
- ingredients, and I was like,

there's gotta be a better way.

I wanted a bar that was

wholesome and natural

and catered

to my specific tastes.

So I started making my own

energy bars in my own kitchen.

And that was probably

about four or five years ago.

At the current facility,

we can make from 12 bars

to thousands of bars a day.

In fact, we're shipping

about a thousand bars per week,

- so we really have grown
- in our operational capability

but we're looking to grow

to the next step.

So today's order

is crispy cranberry.

So it's our crispy base

with Cranberries,

a little bit of peanut butter

in there

and some crunch from, uh,

some soy nuts in there.

Gets all mixed together

and, uh, then they're gonna

- measure it out and mold it
- into each individual bar.

I've put a lot into this.

- I've put a year and a half
- of my own time

and really been leaning on

my wife to be able to support us

in this very tough

economic time.

So there's a lot riding on it.

♪♪♪

Hi. my name is Jonathan Miller.

My company is element bars.

- I'm seeking
- a $150,000 equity investment

- in exchange for 15%
- of the company.

At element bars,

users visit our web site

to create their own

custom energy bar

by first selecting whole,

natural ingredients,

- personalizing a label, and then
- a fresh batch of energy bars

shows up at your doorstep

in seven to ten days.

Now I did my homework

and I created each of you

your own custom energy bar.

Thank you, Jonathan.

Thank you.

I appreciate that.

Thank you.

So the first thing

you might've already noticed

- is that the label
- has been personalized for you.

- So, Kevin's, for example,
- is called the "as seen on TV,"

and Barbara's is called

the "sweet and smart bar."

Y-you're also tasting

the customized bar

for your taste

and nutritional needs.

So as I said, we personalize

the label but we also customize

the ingredients

inside the bar for you.

It's very good.

So let me show you

how I made Barbara's bar

and how anyone

can use our web site

- to create their own custom
- energy bar. So you use

our build a bar interface,

and you first select a core.

Do you want it chewy?

Do you want it oaty?

Do you want it crispy

or do you want it datey?

So for Barbara's bar,

which we're showing here,

you select the chewy core.

Now we walk you through the rest

of the 5-step process

to select your fruits, nuts,

sweets and boosts along the way.

As you add

each specific ingredient,

- the nutrition label on the right
- side of the screen here

- continuously gets updated.
- I'm gonna not eat any more

till I know how many calories

are in here.

It's right on the back.

- It's right on the back.
- Yeah, you can check it out.

So I've just tried

the "Mr. wonderful bar."

Yeah.

And, yes, I am Mr. wonderful,

but the bar was quite good.

Why is this company

valued at $1 million?

Because that's basically what

you're telling me it's worth

- when you ask me
- for $150,000 for 15%.

Sure. so we started

in August 2008.

We've sold about 30,000 bars

to date, just 20,000 this year.

We're on track to hit 44,000

bars by the end of the year.

We've doubled our sales in--

just in the last six months.

We've grown 15% per year.

So you grossed how much

last year?

- So that--well, it was only
- a partial year--August 2008--

so we only grossed $12,000.

So this year

we're about $50,000 to date.

- It's an interesting business.
- Mm-hmm.

But the value

that you're telling me

your business is worth

is insane.

You've got $50,000 in sales, so

I believe the machine's working.

- You've sent some bars out.
- Got it.

That's all you have.

- You don't have
- a million-dollar business,

and yet, you want me to

give you my money as if you did.

- I understand your perspective.
- I've actually worked in v.C.

- My goal is-- - if you say you worked
- in venture capital,

then you know my job

is to squeeze your head like

a teenage pimple right now.

- And I absolutely
- understand that. I understand.

And you also understand

that on the other side

of the table--

that you're buying into

not only the business

but you're buying into me.

So let me ask you a question.

You're a v.C. Guy.

You're a smart guy.

- What's more important,
- the idea or execution?

I believe it's execution.

- I do, too. So how do you go
- in a year and a half

with an interesting idea

to $1 million?

Do you think

it's worth that today?

I believe it's worth it today.

No, you don't.

You don't really believe

it's worth $1 million today.

You can't.

You're too smart a guy.

- You--you sat around
- in your kitchen or wherever,

- came up with an idea,
- and a year and a half later,

you wanna say

it's worth $1 million.

I-I genuinely believe--

I mean, I ate the energy bar

for breakfast this morning.

- It's something that, once it
- enters your lifestyle--

how much of your own money

have you put into this business?

I put $50,000 of my own money,

and I haven't taken a salary

out of this company

in a year and a half.

Oh, cry me a river.

I believe in it so strong,

- that's what I'm willing
- to commit to.

- You gotta do that.
- You're a start-up guy.

- Everybody knows - you gotta work like a dog.
- Ab-absolutely.

- But I'm selling you
- my passion.

- I'm selling you
- both the horse and the jockey.

- Okay, let's say
- you're wonderful,

you did a great presentation.

You have $50,000 in sales.

If I said your company

was worth ten times that,

it would still only be worth

half a million dollars.

And you want...

Not 10% more than that.

You want 100% more than that.

Mm-hmm.

Are you being a savage,

greedy pig or not?

I'm doing what's in

the best interest

of the company

and the idea.

Well, maybe not because--

yeah, you may lose the deal.

There's nothing proprietary

about the process

- or what you're doing.
- What's unique--

- I-i disagree with you.
- What's unique...

- No, wait a second.
- Here's my question.

What do we need this guy for?

Yeah.

You need his formula.

Why do we need his formula?

We could find that.

You can just go to a factory

and get this done yourself.

You--unfortunately, you can't.

Why?

Especially not--

not at small volumes.

That's our

operational expertise.

You have to believe in me

and the business.

Give me the money,

know that I can do it,

and I will execute

and show you the numbers.

You came in here,

I ate your bar.

I got a sugar high.

I got excited. Now I'm crashing.

- With dates? There's no added
- sugar in your date bar.

- No, no. I'm just saying,
- you know,

I'll be the first

to say this.

This is the toughest deal

I've looked at--

'cause you love the guy.

I love the guy.

I've gotta be honest with you.

I'm really struggling.

I really am.

And that doesn't happen to me

very often, my friend.

But I'm... out.

- I-i--be--i would like
- to answer your objections,

even if you are out, okay?

- What you see
- on the web site

- is only the tip
- of the iceberg, okay?

- So what we have is the actual
- recipes behind the bars.

- What you tasted
- tasted great.

- Most of the energy bars
- out there taste like chalk.

That's where it starts.

Second thing is the actual

trade secrets that are--

go behind--

he's such a great salesman!

- He is great but he's not worth--
- he's not worth $1 million!

- That's the thing.
- I'm an entrepreneur.

Ugh!

- But I sell my business.
- I believe in it passionately.

- You're like a micro-- - a mini shark.
- Okay.

- But I don't get the business - personally.
- Okay.

- I just don't believe
- the market is there.

- Or if it is there, I think
- somebody's gonna knock it off.

So I'd be nervous at night,

you holding my money. I'm out.

I mean, there is a saying in

business that the first person

to say the number loses.

And you really did put up

a very high number.

- If a greater equity
- was out there,

- would that still interest you
- or--or period?

You're offering more equity?

Well, that's certainly

a possibility.

Why don't you

put out a number?

Put out a number, yeah.

Nah, I-i can't negotiate with

myself. you pull the lever.

I'm giving you the power.

The valuation is still crazy,

as he said.

I would have to have 75%.

Is that an offer?

- Oh, my god. This guy's great.
- I love this guy!

- He is. He is, right?
- Yeah.

- You should forget this business.
- Come work for me.

For 75% of the business,

I'll give you $150,000.

I-I mean,

I-I'm open to hearing

- what the different options are
- out there.

- Well, do you want to hear
- my offer?

I would love

to hear your offer.

- All right. Seven years again,
- I bought into

the customized nutrition

concept.

Okay.

- And it turned out, uh,
- this company is now taking off.

I believe they're gonna

be interested in this product.

- And contingent upon
- that execution of that deal,

I'd put up the $150,000

for 100% of the company,

and you'll get

a 4% royalty forever--

as we say, in perpetuity.

So there's two offers

on the table.

But remember, I'm a marketing

and branding genius,

and I will put that stuff

everywhere.

What are you gonna do?

♪♪♪

On the table.

Daymond has offered $150,000

for 75% of the company,

while Kevin harrington

has offered the same amount

for 100% of the company

but with a 4% royalty

paid to Jonathan.

What are you gonna do?

So I'll start

with daymond's offer.

At 75%, you have to understand

from my perspective, too,

that would completely demotivate

me as an entrepreneur,

and it'd also limit me in terms

of growing in the future.

So 75% is way too much.

So you're declining me?

I-I think he's saying no.

Are you gonna

give me a counter?

I'm saying no.

I'm gonna give you a counter.

So I'll give you 20%.

Okay?

Yo, wait, wait.

Is there

some ruffled panties on me?

- Daymond, you know what
- I love about it?

Is he said it

with a straight face.

- I am very worried
- a very large lightning bolt's

gonna come down and just buzz!

And you're gonna be gone...

And there's gonna be a bar

shaking in the wind out there.

In--in this negotiation,

- you see how I'm also gonna
- act on your behalf when I'm

- negotiating with someone else.
- I wouldn't want them

- to walk away with
- the rest of the company

- if it's a supplier or if it's
- another equity partner

coming in after you

and trying to loot you.

Oh, this guy is good.

The best thing you've sold here

was Jonathan. You're a star.

Let's not waste

each other's time.

Let me just ask

a really simple question.

- Are you gonna go above 50% - or not? Yeah.
- Am I gonna go above 50%? No.

I'm out.

You're a great salesman

but you're not a great

business guy. I'm out.

I'm declining--I'm declining

the--the counter of 20%

and the--the--the--the insult.

But he's a beast.

- Okay. yeah, he's a beast.
- I like him.

- I like him a lot.
- I think he's an entrepreneur.

With that said, I'm out.

Four sharks are out,

- and Jonathan only has an offer
- from Kevin harrington

- still in play.
- I made you an offer.

- Right.
- Where do we stand?

So you're gonna pay

$150,000...

- And then you are gonna receive
- your royalty on those sales.

- And what do I own
- in terms of equity, too?

- Or all I get is a royalty?
- You get the royalty.

So no equity.

Life is hard, then you die.

- But the royalty stream
- is--is gross.

- I put up all the money.
- I take all the risks.

- I have all the overhead,
- okay?

You just collect a check

every week. That's how it works.

Do we have a deal or not?

I think it's gonna

have to be the hardest deal

that I have to turn down.

The, uh, 4% is, uh,

is something that, uh,

is not gonna keep me motivated

as a person.

And I want to

see this company grow.

Unless it's some sort

of better equity, um,

unfortunately, I think I'm gonna

have to turn down your offer.

Jonathan, I have one last

counterproposal. okay?

It's a do-or-die, okay?

I got it.

Um, I wanna license

element bars.

I'll put up the $150,000,

and you'll receive



and I wanna own



Is that a deal

that you can do?

It sounds nitpicky,

but you gotta get

to my negotiating range.

My negotiating range is 25%.

I'm sorry. I'm sorry.

I love him!

I-I'm sorry. I--'cause I have

to be able to walk away--

that's my b.F.F.

Jonathan, all right, I'll tell

you what. I'm a fair guy.

I will--I'll split

the 35% and the 25% at 30%,

but that's it.

All right, 30%.

We have a deal.

Okay. super.

- All right.
- Whoa!

- Whoo!
- Okay, buddy.

- It was a pleasure.
- Good, man.

- Come over here, man. Robert,
- get out of here. Take his seat.

Yeah, here, Jonathan.

Jonathan, sit there.

Thank you so much.

- Good job, Jonathan. Looking
- forward to working with you.

- I look forward to it.
- I'm really excited.

Thank you. Okay, me, too.

Outstanding,

you crazy chicken.

- I'm so excited.
- I-i think we all--it was long.

It was intense.

Uh, it felt like it was

teetering on the edge

for a while,

but now I'm just euphoric.

♪♪♪

Six weeks ago,

you met the first entrepreneur

to strike a deal

with the sharks...

Are you gonna

give us an answer?

Yes or no?

I'll take it.

Great.

Here's what's happening

with him now.

♪♪♪

- Hey, it's Mr. tod.
- I'm here at the pie factory.

As you can see,

business is boomin'.

What can I get for you?

The sharks have gotten me

into q.V.C...

Hey, congratulations.

- Those guys had a lot of faith
- in your business.

Oh, absolutely.

Thank you very much.

Within five minutes,

I sold thousands of pies.

Oh, man, tod!

Since I did my deal,

business has tripled.

I'm on course

to make millions this year,

all because of the shark t*nk.

Besides the money,

it's the human element

that I like the most--

- the e-mails and the testimonials
- of people who were inspired.

- That kind of stuff
- will choke you up.

- Hey, if I hadn't gotten
- the money from the sharks,

- I don't know
- where I would be right now.

The doors could be closed.

I could be homeless once again.

But I got the money,

we got the deal done,

- and it's turned
- my life and business around.

,

who is hoping to get

an investment from the sharks

by appealing to the child

in everyone.

♪♪♪

I'm David.

I'm a 51-year-old toymaker,

and I have a wife

and two beautiful kids.

Every game has a place,

but this game's place

is the trash can.

I invent toys and games.

I love what I do,

because I've always been

a kid inside.

This isn't as kooky

as some of his other ones.

I'm very passionate

about my product,

- and I've spent over $50,000
- developing it.

I really need the sharks

to invest in my product.

That way I can recoup

my investment

and prove to my wife

that I can survive

off my silly inventions.

♪♪♪

I'm David chodosh,

and my product is called

the fizz.

I'm here to raise $150,000

in exchange for 25% equity

in the product.

I'm a toymaker,

and my mission is to create fun,

especially when it comes

to food.

I discovered

that the root beer float

had really been largely ignored

for 50 years,

so I wanted to wake up

that sleeping giant,

and I did, by creating the fizz.

I'll show you how it works.

The idea is built around

the bottled soda.

Open the soda...

And a straw goes into the bottom

of the fizz cup.

This one's preloaded

with ice cream.

The straw helps it, uh, draw

the soda in a little easier.

It screws on to the top,

and when you squeeze

the soda in,

it actually starts to fizz up

inside the cup.

And if you were in there,

you could hear the fizzing.

Just like that...

And you just drink.

Mmm.

That is good.

I knew you'd love it.

How do we--but how do we know?

Oh, well,

I'm glad you asked,

because I brought one

for each of you to try.

Oh, awesome.

So I have orange

and root beer. If you--

root beer.

- Root beer.
- Okay.

- Thank you, David.
- You're welcome.

Daymond.

Mm, good.

Yeah, it's not bad.

I think my kids would love it.

It's fun.

David, do you have sales?

Yes, I do.

Uh, last year,

sales were around $84,000.

Where did the sales

come from?

Ice cream stores, uh, vendors

at, like, state fairs.

I also have provided many of

them as promotional products.

I supplied, uh, uh, Coca-Cola

with a, um, an order.

So what did Coca-Cola say

to you?

They loved it.

They wanted to order them

for a, uh, giveaway promotion.

And?

- And, uh, but they're not really
- in the ice cream business,

- per se.
- Ah.

And the ice cream

comes from where?

The ice cream is provided by

either the customer himself,

who would scoop it in at home

or in

a best-possible scenario--

is an ice cream manufacturer

who would prefill these

and sell them

in the freezer section

in--in stores.

Now when you went to

the ice cream companies,

they said to you...

I haven't really demonstrated

big enough sales

to get them interested.

But, David,

for this to be big...

Mm-hmm.

Isn't the real challenge

that you're not a soda guy

and you're not

an ice cream guy?

Could sell it

in the freezer section,

like, at a convenience store.

With the ice cream

already packaged?

With the ic--exactly.

But then we're back

to the same starting point.

You're not the ice cream guy.

This is a sale that you have to

make to a big corporation.

That isn't my business,

so I gotta say, I'm out.

I'm an old-school

kind of guy.

I like to go and scoop it

and also be able to dig into

the ice cream simultaneously.

Sure.

So I'm out.

So I think you look the part.

You look like a guy that should

be selling root beer floats.

Yeah, you really do.

But here's the thing--

I think it's an ice cream cup

you ought to sell

to an ice cream guy.

That what I think. But I'm

not buying in. So I'm out.

Okay.

- There's only
- one strategy here.

The ice cream companies

license it from you

and prepackage it,

as you yourself said...

Mm-hmm.

Or they don't.

And if they don't, you're gonna

be fizzing around forever

as a little novelty

and never make any money.

I'm out.

Okay.

David, I tell you, I love it.

It brings back

my time in my life

when I was just beginning

to think about money.

♪♪♪

Four sharks are out,

and Kevin O'Leary is

David's last chance at a deal.

David, I tell you, I love it.

It brings back my...

Time in my life when I was just

beginning to think about money.

To me, this has to be bundled

with one of the products

that it uses.

And I think

it's the ice cream.

But I don't know

how to invest in it.

And so with the warm,

fuzzy feelings of my boyhood...

I have to say, I'm out.

Thank you.

Thank you.

Yeah.

♪♪♪

The fizz will, uh,

keep, uh, existing,

and hopefully, um,

- uh, it will inspire myself
- and other people

to continue, uh,

to create fun products.

Next up are

buck and Arlene weimer,

who created a product to save

their 40-year marriage.

♪♪♪

My name is buck weimer,

and I am president

of under-tec corporation,

and we make protective underwear

for flatulence.

And I'm Arlene weimer,

- and I've been wearing under-ease
- underwear for flatulence

for 15 years.

So we are asking

for $55,000.

And for this,

we're willing to give you

a 25% stake in our company.

For most of my adult life,

I've had crohn's disease,

which is an inflammatory

bowel syndrome

with excessive bad gas.

So in 1991,

on Thanksgiving Eve,

after a sumptuous meal,

buck and I were lying in bed,

and the gas was

particularly unbearable.

So as the odors were

reaching my nostrils,

I began to think of ways

to solve this problem.

For me personally,

divorce was not an option.

And I had an idea about

a pair of panties

that maybe could contain

the smell.

So after many months of

experimentation in our cellar,

I hit upon

a pair of underwear

that are made

from airtight material,

with elastic around both legs

and charcoal filtering

in the back/tush area.

In 2001, we opened our business

with a web site.

Most people, uh,

laughed a lot,

and, um, had some questions--

"uh, is this for real?"

So of course we said,

"yes, it is for real."

But this helped us understand

that there was humor

connected with our product.

Very good.

Are there sales since 2001?

Yes. last year,

our estimated sales

were $37,000.

However, the year before,

we had quite a bit

of advertisement.

- What were the--
- the gross was over $67,000.

- Arlene, you've been doing this - for eight years now.
- Right.

- Was that
- your most successful year?

The first year was, um,

the gross was $83,000.

- $83,000. so the sales have
- kind of been going down.

- Well, actually, every time
- we get publicity,

we know the sales go up.

So, Arlene,

how does the product work?

Is that a filter?

Yes. th-these are

a pair of the underwear.

They're airtight,

and they have--

but aren't they--are they

really snug on your legs?

I'm wearing them now.

They look good.

What are you making these for?

What are you selling them for?

Okay, selling price is $24.95

for the underwear.

For one.

For one pair of underwear

with a filter.

With a filter.

I'll tell you where I'm at,

Arlene and buck.

I think you've done

a fantastic job

for what could have been

a very touchy subject.

But the market is small.

I'm out.

Okay.

Okay.

This is really a supply

to a medical house

and/or mail order,

and so I'm out.

Okay.

- Arlene,
- I-i just don't see it here,

so I'm sorry, but I'm out.

I think you should

peddle happy marriage.

You look like the happiest

couple I ever saw.

Thank you.

- I'm sitting here thinking,
- would I rather have gas

and wear my sexy underwear?

Or would I rather eliminate

the gas

and wear that underwear?

And I think I'd pick

my sexy underwear,

because I think

I'd feel medical in those.

So I'm out as well.

You did a great job

on a very, uh,

different kind of product.

I wish you the best of luck.

I have to say I'm out.

Thank you very much.

Thank you. Thank you all.

Thank you all very much.

♪♪♪

- You know, - they did a great job...
- Great job.

- For what could have been
- a very uncomfortable topic.

They made light of it.

Great presentation.

I'm Kimberly cayce,

and my company is

kaylx technologies.

It's a business that was created

for women by women.

I competed around the world

as a professional golfer

for five years.

My experience

as a professional athlete

has truly inspired me

and my business.

After I retired from my career

as a professional golfer,

I also went through

a divorce.

I really felt a need

to reinvent myself.

I spent three years

researching our concept,

developing our prototypes

and beta testing our products.

Along the way,

investors have come and gone,

but right now my company

is really running on fumes.

I've invested almost my entire

life savings into this company.

I must get an investment

from the sharks

or I'm really not sure

how we're gonna be able

to keep the company

going forward.

♪♪♪

Hi there.

I'm Kimberly cayce,

and these are the lovely ladies

of team kaylx.

My company is

kaylx technologies.

Tonight we're seeking $125,000

in exchange for 20% equity

in our business.

At kaylx technologies,

- we believe
- that when a woman exercises,

- balls are the only thing
- that should bounce.

I know the subject

of bouncing breasts

- might be laughable
- to some people,

- however, exercise-induced
- breast pain is a serious problem

- that affects
- millions of women.

Every kaylx sports bra

is designed to be

as fashionable, feminine,

flattering

as it is functional.

As you can see,

we have eight bras in our line.

Each of these bras

- has been engineered
- to work with a woman's body

- depending on what type
- of activity she enjoys.

- Let me show you
- what I mean.

First up is

our enlightened line of bras.

These are comfortable

and supportive

- but they're
- a little bit sexy.

Next up

are our extreme ladies.

These are bras designed

for women that like to go fast

and aren't afraid to fall down.

Last up are our elite athletes.

These bras

are designed for women

that are going for the gold.

Each of these bras incorporates

our patentable

kaylx power sling,

- a wireless mesh insert designed
- to restrict breast motion

across multiple planes,

making it possible for women

to exercise without pain.

And, Kimberly, do you have sales

or is this a brand-new start-up?

We're a brand-new company.

- We have been about three years
- in development.

Right now we have a waiting list

of over 250 women

who are eager

to buy our products,

and we just got our first order,

uh, from a retail store

- a few days ago,
- called the full cup.

Do you have a projection

of what your sales will be

this year or next year?

We--we've had

a rough go of it.

- Some people might not want
- to admit what I'm about to say.

Kaylx is really

running on fumes right now.

I've put my life savings

into this business.

How much have you put

into this?

I've probably put

over $100,000 of my own money.

There are many,

many sports bras out there.

There are many sports bras.

I was wearing sports bras

that would come

all the way up my chest

or that would smash my breasts

into this awful uniboob.

- They were uncomfortable.
- They were unattractive.

I don't have to play like a girl

but I can still look like one.

- Kimberly, who's the leader
- in this market right now?

There's really

five key competitors--

champion, Nike, under armour,

Adidas and moving comfort.

Oh, they're not well-known.

We definitely have

our work cut out for us.

But before we started

developing our products,

we interviewed

over 250 women.

Found about 90%

of those women

are really dissatisfied

with sports bras

that are on the market.

But, Kimberly,

as an average consumer,

I walk into a large retailer.

I've got these five companies

that spend billions of dollars

telling me that

they're the best product.

And here you are,

on your own, little company.

How in the world are you gonna

compete against those guys

that have distribution,

have billions of dollars

in marketing,

and every woman out there

knows their brand name?

Well, first, every one

of those companies started

right where we are today.

I can't decide if I'd rather

stick needles in my eyes

or give you $125,000.

Do you know

how tough it's going to be

to gain any market share?

Do you have a patent

on any of this stuff?

We don't hold the patent yet.

Right now, as I mentioned,

our company really is

running on fumes.

And we have our provisional

patents ready to file.

What would you use the money

for, the--the $125,000?

What are you gonna do with it

when you get it?

- Largest percentage
- of that money

would go towards

our manufacturing costs. Um--

but you have no orders yet.

What are you gonna manufacture?

Well, that's part

of our go-to-market strategy.

We intend to take our products

dir-directly to the consumer

through our go kaylx

web site.

Kimberly, I see

tremendous competition,

so... I'm out.

If I took $125,000 of my money

that I waited on tables for,

k*lled myself

to get my hands on,

when would I see

that money back?

Most likely by year five.

By year five.

Much too long for me.

I'm out.

You know,

it's a little too early

for me to jump into this.

I'm out.

Well, one thing

I can share with you

is that our brand identity

is pretty strong. Um...

Kimberly,

you're just starting out.

Not only are you going after

this big a market,

you're going after this part

of--i... I'm sorry. I'm out.

Kimberly, the problem is

- I'm not sure the world needs
- another sports bra.

The truth is, you're

a nothing burger in this market.

Nothing. you have nothing.

And $125,000 isn't going

to get you anything.

You need

huge marketing dollars

to make that brand

even mean anything.

That's the problem.

You know that.

You know what I think?

- I think you know you're dead.
- This is over.

Now you came here

to hear the truth.

I just gave it to you.

But I cannot put my money

in harm's way here.

There is no hope.

You're going to zero with this.

I'm out.

Thank you, all,

for this opportunity.

Thank you.

- Don't cry.
- Thanks. no.

It's the beginning

of something else

and the end of this.

That's yet to be seen.

♪♪♪

I thought that the sharks

might've been able

to see the opportunity

and how much... passion

was behind this company

and how many women it means

the world to, not just me.

He broke her heart.

Look, I told her the truth,

and that was the truth.

Does anybody doubt that?

- I mean,
- come on, that's crap.

When you started out,

nobody looked at you and said,

- "Kevin, that's a bad idea.
- You should stop"?

- Nobody ever said that
- to you?

- When I started out,
- there weren't five competitors

- that owned 100% of the market.
- Really? when I started out,

- there were
- a thousand competitors.

- You do something
- that's so different

- nobody else in the world does? - Give me a break.
- You don't think--

- there's a million guys
- like you on wall street.

- You know, shame on you--shame on
- you for not telling the truth.

- She has hope. - She's just too soon.
- There's no hope.

- If she gets a patent on that
- and then she licenses it...

There's no hope.

That's going to zero.

- She has hope. - If everybody stopped when
- some guy told them to...

- Oh, you know, then why didn't
- you write a check, Robert...

- A hundred companies
- wouldn't have started.

- If you're so nice? - There's a
difference between - being an investor

- and being an entrepreneur.
- You insulted her.

I gave her a huge opportunity

to stop wasting money...

No, no, no. I'm not saying--

- and put it into a new business,
- one that might succeed.

- Look, look, I'm not saying
- you told her the wrong thing.

- What I'm saying to you is,
- you could see in that wom--

oh, you're saying my style--

- you don't like my style
- of telling her the truth?

- Hang on a sec. You could
- see in that woman's--

- I don't like to waste words. - Come on, that
woman put her life - into this for three years.

You could see it in that.

Robert, so what?

This is business.

Life is hard,

then you die. Get over it.

Well, maybe in your world.

In my world

and everybody's world.

Enough. calm down. Calm down.

Well, there's a different way

to say the same thing.

No, I don't want...

- Absolutely. - To give encouragement
- where there is none.

- When you're dying,
- you have to be told the truth.

You can k*ll the idea but you

can encourage the person.

I told her truth and I'm proud

to do it, and I'll do it again.

Well...

- That's it. End of story.
- We swim in different waters, - my friend.

I don't want

to talk about it anymore.

I've gotta change chairs.

I'm Heath hall. I work for

a think t*nk on capitol hill.

I'm Brett Thompson.

I'm a lobbyist on k street.

We've decide to take

useless pork barrel spending

- and put our money to good use
- to create our new company,

pork barrel bbq.

Pork barrel bbq is

- an all American barbecue sauce
- and spice rub company,

and we're hoping to bring

our monumental flavor

- to the entire nation. Heath
- and I are both conservatives,

- and, you know, we've watched
- as Washington seems

to be bailing everything out.

- And, you know, we wanted to
- prove, if you had a good idea,

you could still

use the American dream

- to build something great. - Our all
American-spice rub - is great on meat

and even vegetables,

which we think our liberal

friends will appreciate.

We're gonna be smokin' up

some ribs and pulled pork.

- We're hoping the sharks
- really love

our barbecue and our sauce

and our rub.

- And we think they'll salivate
- over the millions of dollars

they could make

with our company.

♪♪♪

I'm Brett Thompson...

C.e.o. of pork barrel bbq.

And I'm Heath hall,

- president of pork barrel bbq,
- a Washington, D.C.,

- gourmet dry rub
- and barbecue sauce company.

- We're seeking an investment
- of $50,000

in exchange for a 10% stake

in our company.

A small price to pay,

we think,

to be partners

with an American company

- that isn't owned or operated
- by the federal government.

Heath and I love two things--

making great barbecue

and making lots of money.

In six short months,

- we've successfully developed,
- branded and marketed

- our all American spice rub
- and our pork barrel bbq sauce,

which was recently voted

one of the best

barbecue sauces in the nation.

Our inaugural product,

pork barrel bbq's

all American spice rub,

is a bipartisan blend of

all-natural herbs and spices.

You know, it's great

on pork, chicken, beef.

- Heck, Brett and I even think
- it's great on shark.

- You know, our friends
- thought we were crazy

to start a company at the peak

of an economic crisis.

We saw it as our chance to grab

a piece of the American dream.

You know, Brett and I

are both from Missouri,

the show-me state,

- so we wanted
- to let our products show you

just how great they taste.

- We've been told
- by competitive barbecue teams,

veteran chefs and, most

important to us, home cooks

that our rub and sauce

is the best they've ever had,

and we think you'll agree.

Whose recipe is this?

Uh, this is our recipe. I-i like

to eat, so I like to cook.

And so it's

a real passion of mine.

- And so I'm always
- experimenting in the kitchen.

And this is one of the, uh,

marinades and--and rubs

- and sauces that I've come up - with over the years.
- You guys are starting out

with a pretty good product.

It taste great.

Thank you.

- But it's completely unknown
- as far as I can tell.

I've never heard of it before.

Well, if you notice on the,

uh, far side of the table,

we've got a couple trophies

there. just about a month ago,

we were at the national barbecue

battle in Washington, D.C.

Over 50 teams were there

at the competition.

We took second place

in the nation

in the best sauce

in the nation contest.

Not bad.

And, uh, you're valuing

your company at this point

at half a million dollars.

They're just joking about that.

I know they're not serious.

One other thing

about this product

is that it's all-natural

with no preservatives.

I love the way he did that.

He didn't answer your question,

just like a politician.

Oh, no. No, he went right on.

He went to the next one.

What--why don't--

why don't you answer his

question about your valuation?

We just scored a huge deal

to have our products distributed

in major grocery store chains,

and we actually have 10,000

units in production right now

- heading out to stores
- next month.

For that 10,000 units,

what's the dollar size?

- It costs us $2
- to produce the rub,

$1.80 to produce the sauce.

And, uh, we have

a 50% profit built in.

Over a full year,

we anticipate,

- based upon
- very conservative estimates,

$4.1 million worth of revenue

and over $1 million worth

of profit.

Your barbecue sauce

tastes great.

But I'll tell you

a little secret.

- I was an investor
- in a barbecue sauce company

- because I thought
- it tasted great.

And you know what happened

to my money? It's gone.

I don't mean to doubt you

because you're politicians...

- Ha!
- But I just wanna be clear.

Heath, you've got $30,000 today,

hard copy orders.

Right.

- You said that you believe - conservatively...
- Correct.

That will come out

to $4 million.

- That's right,
- over the first year.

- Tell me what you're gonna do
- from stocking

$30,000 worth of orders

to get to $4 million.

We chose the best distributor

on the east coast,

from New York to Florida.

He has 22 years experience.

He's used his revenue

projections and his experience

to come up with real

and conservative-based numbers.

The challenge with this

is purely one of distribution.

And it's

all about marketing.

And at your size,

you're--you're this.

I'm out.

I think Robert

hit the nail on the head.

The key to this

is distribution.

You're projecting

$4 million in sales,

but what if the 10,000 units

doesn't sell?

If it flies, you may

go to the moon. Okay?

If it doesn't,

you may be out of business.

I just see it, uh,

sinking or swimming here

on this distributor.

The risk doesn't work

for me really, so I'm out.

Probably

every one of us up here

can think we can make

a barbecue sauce

whether it's good or not.

And you know this is

a crowded space. I'm out.

Two problems with it--

valuation,

- which has been pointed out,
- uh, ad nauseam here,

because it's--it's huge

for a start-up.

But you're not full-time.

You guys are politicians/

hobbyists with sauce.

That's basically it.

And if--if I may, you know,

it's the goal of every American

to be able to own

and run their own company.

- This is about making money
- for us and for our family.

- No, I understand that.
- But, I mean,

without having the focus

of a full-time team or guy,

- at least one of you
- getting up in the morning,

nose to grindstone,

making rubs and sauces,

it's very difficult

until you prove this thing

- beyond the embryonic state
- it's in right now.

For that reason, I'm out.

I'm sitting here,

looking at Brett and Heath.

Heath, I have to tell you,

I can't look at you without

picturing you in a pig costume.

- The mascot?
- And you're--the mascot.

You're a very handsome man.

- I'm not saying that you look
- like a pig. I'm just saying--

- oh, I thought
- that's what you were saying!

No, I'm saying you would look

adorable as a real-life mascot.

- I guess I'll take that - as a compliment.
- It's a compliment.

I don't know how else

you can take it.

Only a politician would

take that as a compliment!

You know, um, actually

I'm interested in your business.

But, of course,

the numbers are crazy.

What about the $50,000?

I don't see that as a lot of

money to produce much product.

What happens when

the $50,000 runs out?

I think the--the revenue

that we'll generate,

plus we actually have another

$100,000 of our own money

that we're prepared to invest.

Oh, really?

We're very committed to this.

This is not a hobby.

Barbara, are you making

an offer?

I am.

The offer is

I'll be happy to give you

the $50,000, all right?

But for 50% of the business.

Would you be willing to do



No.

You're very lucky

I wasn't asking for 51%.

- We'd love to accept
- your offer.

Are you with him on that?

I'm with him on that.

You've got a deal.

Great.

You've got

a great sense of humor.

Thank you very much.

Thank you so much.

Thank you. Thank you

so much.

We look forward to this.

- You know, the truth is,
- he doesn't even need a costume.

He just needs the ears.

You just called him a pig

on national TV.

- I didn't call--no, not at all.
- I think you did.

- I did not.
- I think you did, yeah.

We went into the t*nk

facing five sharks.

In the end, there was

one shark standing...

And one pig.

But, you know,

we're so excited we got a deal.

Catch all-new episodes

- on a new night and time
- beginning

Tuesday, September 29th

at 8:00 P.M.

- I'm the world's - most accurate Kn*fe thrower.
- Wow.

Mommy!

You are nuts, daymond.

Edwin, are you a vampire?

Enough chatter.

Let's do it.

Let me sweeten my offer.

We all know Kevin's deal

is a waste of time.

No, it isn't.

You're out.

- No, no, I'm not finished.
- I wouldn't take his offer.

- Noise! noise! - You're like
- high school boys--

Barbara, I'm offended

by your sexism.