02x01 - Episode 201

[bunniefuu]

Tonight Mark Cuban
joins the shark t*nk,

where hopeful entrepreneurs
come seeking an investment

from the sharks,

five powerful, self-made
investors worth billions.

In the t*nk, the sharks
are ready to invest

using their own money,

but only for the right person
with the right business.

Which one of you sharks
is ready to invest in us?

And if the sharks
hear a good idea,

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

I'm gonna go back in. Barbara.

Robert's giving me the eye that it's a loan. Robert
gives you the eye, but he doesn't give any money.

But first the entrepreneurs
must convince a shark

to invest the full amount
they're asking for,

or they'll walk
away with nothing.

If I could explain to you guys a little
clearer-- no, James, you gotta stop selling.

I could not speak to you.
You took forever.

Boom goes the dynamite!

Who are the sharks?

Kevin O'Leary knows
how to make money.

He started a software
business in his basement,

which he eventually
sold for $3.2 billion.

Barbara corcoran-- this
fiery real estate mogul

turned a $1,000 loan into
a real estate empire

worth hundreds of millions

in the shark-filled
city of Manhattan.

Daymond John turned
rags to riches

with his clothing brand
fubu, which has grossed

over $6 billion in
worldwide retail sales.

Robert herjavec,

the son of a factory worker
turned technology mogul,

sold his first
Internet companies

for over $350 million.

And Mark Cuban--

this self-made billionaire
started out as a paperboy,

and now is a media mogul

and the outspoken owner
of the Dallas mavericks.

♪♪♪♪♪

First into the shark
t*nk is Jonathan boos

with an innovative product
line for the well-dressed man.

Hi, everyone.

My name is Jonathan boos,

and I'm the owner of the
men's brand wurkin stiffs,

as well as the inventor
of power stays,

the world's only
magnetic collar stays.

I'm seeking $85,000 for


Now this all started back when
I was actually running late

for some dinner reservations.

My wife was yelling as she
threw a brand-new shirt at me

to put on, and I'd seen
that I had a-a big problem.

I looked like John Travolta
from "saturday night fever."

The collar was all
large and in charge,

and I couldn't
control this thing,

so I found some
ordinary paper clips,

and I found some magnets,

and I made the very first
magnetic collar stay.

I haven't worn a shirt
the same since.

So first you take
our power stay...

And you place it on the
underside of the collar.

There's a collar stay pocket.

Flip the collar down,

and we have a superstrong,
small magnet,

and this goes on the
inside of the shirt...

And instantly changed my shirt

into a hidden
button-down collar.

So wherever you put your collar

is where your collar stays.

And there's nothing else like
this in the menswear industry.

These are spectacular. Thank you. We
knew we had something pretty special

when we acquired three high-end
men's specialty stores.

What retailers do
you sell them in?

Nordstrom contacted us. We did
a test of our power stays,

which launched in 24 stores.

Within 3 months, we
went to 77 stores.

We had sold over 18,000 units.

We made them over
$600,000 retail.

We're currently in all


Jonathan, you're the real deal. Oh, yeah.
I-i am the real deal.

I design and produce
all this stuff myself.

The packaging, the displays,
the product--it's all me.

Jonathan, what are your sales
today in all the products?

Year-to-date today, I'm
at a half million.

I'm expecting $1.8 million next year.
$1.8 million? Wow.

What are you gonna do with the $85,000?
Daymond, out of anybody here,

you should know-- what
can I do with $85,000?

I mean, to really take this
brand to the next level,

I need to get someone that knows
what the hell they're doing

to get me there, so I
can continue to create.

I've got products on
the drawing board.

I've got products right now still in development.
Jonathan, let me tell you something.

Okay. okay. I love your passion. I love
your knowledge. I love your approach.

I'm waiting for the "but."
Yeah, there's a "but" coming.

I'm not the guy with
the connections.

I'm not the guy who adds value.

I'm just not the guy to help you.
I'm out.

Jonathan, I just--i really can't do
anything for your business... okay.

So I'm out.

The guy that's staying the
most quiet is the one

that can help me the most, but he's
staying quiet. I'll make you an offer.

I'll give you $100,000 for


I want a royalty on that money.

I want a 14% royalty.

So it's like a loan. No. I'm getting a ton
of equity, too. I want 30% of the company.

It's a loan, right?

No, it's not a loan.

Robert's giving me the
eye that it's a loan.

Well, you're paying


You know, I love Robert. He loves
to give-- I love Robert, too!

Robert gives you the eye, but
he doesn't have any money.

That's the problem. In the
end, you need cash, my friend.

I'm making you an offer. Never disrespect
the cash. Don't like that deal.

You know why I like that deal?
Because I know

you're gonna need more cash.
You're gonna be calling me

every 90 days for a quarter
of a million dollars.

And if things are going
well, I'll keep doing it.

But not--not at--yeah, yeah.

Yeah, right, exactly. All right.
You have an offer.

That's on the table. Great. Anyone else?
Why don't you like his offer?

I need more than money. I need
someone that can help me.

Daymond, you--you sold hats.

One product, right? And then you
created this empire of a brand.

Ooh. so you're looking
at me like I can't make this

into a successful brand.
That's what I don't get.

I don't know where you're coming from. I didn't
say you can't make it into a successful brand.

I-- people who are successful
have thoughts of high value,

and people who are not have
thoughts of low value,

so you're valuing yourself high-- how
am I valuing myself high? 85 thous--

you should be, but if you're gonna
argue with me... all right.

Then I don't want a partner who's gonna
argue with me... I'm not--I'm--daymond...

So just--because of that... you, out of
anybody, should understand what I'm doing.

I mean, I don't-- I don't get it. I was
actually gonna throw an offer on the table--

- now he's gonna say because I was arguing...
- Let daymond talk.

You see his hand right there?

I still am not done talking.
I'm out.

I-I knew it.

Jonathan, you've
absolutely pissed him off.

To clarify what I was
trying to tell you

was the reason that
you will be wealthy

is because you have
thoughts of high value.

I was trying to give you
a compliment. Okay.

When I was trying to talk,
I could not speak to you.

You took forever. I'm--I'm
waiting for--

I'm just saying...
Boom goes the dynamite!

I'm sorry. And I'm sorry, and I
will never take forever again,

because I was gonna
give you an offer,

and you botched the offer.
Oh, what a baby.

My god. You want me to get on
the phone with him every day?

"Hey, can I talk to..." "Click." I'll put it
in the contract I'll never call you again.

How's that sound?

I cannot stand partners
that I can't even speak to.

If he would have shut up,
he would have had an offer.

I'm gonna apologize, for real.
I apologize. I didn't mean

to come off that way. If I've offended
you in any way... you did not offen--

then I would do nothing different. You
did not offend me. I'm not offended.

My feelings aren't
hurt-- I'm--I'm just--

I think you're missing out on a great
opportunity. Come on, daymond.

You're such a baby. Cut it out. Listen,
Barb. I have pet peeves. You do.

If this is a pet
peeve, get over it.

Wow, you really hurt his feelings, Jonathan. Let
me talk to Robert, my last chance, and then--

and then--sit there and just
think about it. I'm a nice guy.

Then I'll stop talking. Okay. Jonathan, it's
not the first time you've heard that, is it?

"No"? oh, yeah. I wouldn't be
here if I took no for an answer.

Next. I'm actually upset. You know why?
'Cause I like it.

Well, and I like... whatever.

See? "whatever." I
mean--no, I would talk to you, but you--

"you know what I think we
should do with the comp--"

"whatever." no, no, not whatever.
Daymond, I'm here to... all right.

Daymond, he's nervous.
He's a high-energy guy.

Why don't you cut him a little slack?
Why don't you cut him a check?

This is all wonderful. Let's
hold hands and say "kumbaya."

Jonathan, do you want
my $100,000 or not?

Jonathan has
an offer from Kevin,

but the one shark he most
wanted to deal with is out.

Do you want my $100,000 or not?

Jonathan, I'll
make you an offer.

I'll give you the $100,000
for 30%, no royalty.

Would you go $200,000 for 30%?

Wait a second. I'll drop
my equity asset down.

$100,000 for 20%, but I want
the royalty to stay in place.

That's different than what he wants.
He's a savage.

He's asking for a third
of your business.

You're a vulture!

Because, I mean, I should be
getting the royalty here.

I mean, I'm the one that's
creating the stuff.

Jonathan, I'll give
you $100,000 for 25%.

Uh, that's my final offer.

One more thing.

I'm gonna go back in.

Barbara!

What are you doing? Yeah.

I'm gonna give you
$100,000 for 20%,

provided daymond forgives you.

And I'll be your
front man, daymond.

You never have to talk to this guy.
You just enjoy his success.

And you know I'm a
great front man.

That's not enough. Oh, daymond.

That's not enough percentage on
the company. What--so what is it?

You want to match his at 25%?

Can't take less than 40%.

- Whoo!
- oh, my...

Wow.

Jonathan, come back to daddy!

Come back to daddy!

I'm putting a difference of
only 15% due to my knowledge.

That's all. That's
the difference.

Okay, I'll drop my equity
asset down to 15%,

but the royalty stays in place.

Would--would daymond and Barbara
be willing to do 30%...

The $100,000 for 30% equity?

Absolutely not.

The offer's a hard offer.

Jonathan, Jonathan. You have
to make a decision now.

Yes, I would like to do a deal
with Barbara and daymond.

Great. all right.

Thank you. Thank you. All right.
Thank you.

- Aw, that's a happy ending.
- Thank you.

You know what? I deal with
creative guys like designers.

You will never get a word in,

and you'll never get anything done. You
were spanking him like a baby seal.

I almost blew the deal with
daymond because of my big mouth.

Barbara, love ya.

Thank you for getting
that hook out

and getting daymond back into the game.
Appreciate it.

Last season, we
watched Mark furigay

make a $250,000 deal
with the sharks,

spearheaded by Kevin O'Leary.
You're a very wise man.

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

We're here at the number one
educational company on earth.

These are the headquarters of houghton
Mifflin harcourt. Due to the recession,

they were not open to
hearing Marc's pitch,

but with the recent
uptake in the economy,

I finally got us in the door

for a meeting with their entire board.
Mark, don't screw that up.

What is "classroom jams"?

"Classroom jams" are original
songs that deliver curriculum.

"Classroom jams" takes difficult
subjects like Shakespeare

and sets them to cool music
to turn kids on to learning.

♪ Whoa, I've got ♪

♪ lady MacBeth blues ♪

Being here means
everything to me.

I've worked really, really hard,
but I've only come so far.

Now, with Kevin's
help, I'm in front of

the top executives of the top
educational firm in the world.

This is a pretty
big opportunity.

♪ Whoa, what's a lady gotta do? ♪

Uh, I think, as a group here,

we're, uh, certainly receptive
to giving Marc a chance

to see if this has some, uh,
sustainability. Wonderful.

We have to be able to show
that students learn better

than a traditional method,

so the best way to do that
is for us to run a pilot.

I'd say that's success, Mark.
Thank you.

I am super-grateful.

This is a once-in-a-lifetime
opportunity.

I never could have gotten there
without Kevin. Congratulations.

Congratulations. looking forward to working
together. Thanks. Thank you so much.

He pulled it off, and we
have a national test.

I can smell the money already.

With an innovative way

for stay-at-home
moms to make money.

Hi. my name is Sarah nuse...

And I'm her sister,
Megan Reilly.

And we are seeking an investment
of $30,000 in exchange

for 5% stake of our children's
dance company, tippi toes.

One in five children
in America are obese,

and 80% of elementary
schools have cut recess.

Our fun, kid-friendly,
high-energy dancing and music

gets the kids moving and
feeling good about themselves.

Okay, kids, you ready
to do some dancing?

Ready!

Wake up!

Wake up!
Wake up, skippy!

Wake up, tippi!

♪ Jump out of bed ♪

♪ say hello to the sun ♪

♪ wiggle your body ♪

♪ and go for a run ♪

♪ it's a hoola boola, hoola
boola, hoola ti day ♪

♪♪♪♪♪

♪ I love tippi toes ♪

♪ and everybody knows
that's right ♪

- Yay! you guys did such a good job!
- That was perfect! More, more.

Yay. now we need you guys
to dance your way out of here

- before one of these sharks try to bite you.
- Say good-bye! Good job, guys.

Bye!

As a former professional
dancer myself,

and Megan being a
registered dietician,

we focus our business
on physical activity,

healthy habits,

and, most importantly,
the kids having fun.

And in 2009, we began
franchising our business

so we could reach as
many kids as possible.

And as long as people
keep having babies,

we're always gonna
have customers.

Now which one of you sharks
is ready to invest in us?

You said you sold 70 franchises?
Did I hear that right?

Seven franchises. Tell us a little bit
more about that. What do you charge?

It's $30,000 to get in.

Our vision is the
stay-at-home mom.

The great thing about tippi
toes is we go into preschools,

after-school activities,
um, day care,

so we don't have
overhead of a facility,

so it's a low entry cost,

and then, they pay a
monthly royalty fee to us.

Sarah, $30,000 isn't that low. What do I get for
that $30,000? $30,000-- we created our own music.

We have, um, our first
cd, "tippi's tunes" --

that's a lesson plan. Um, we
go out and do the business,

the sales and marketing
for them, they get our--

so I give you $30,000,
you give me a cd,

and I get pictures of the insects? They're not
insects. They're adorable little creatures.

So rather than taking them to dance
class somewhere else... correct.

You're--you have a licensee who
says to my kid's preschool,

"you keep the kids
there." Mm-hmm.

Right? I'm gonna charge the
parents independently.

The preschool or school is just
gonna let me use the facilities

because it's just a good
thing for them to do

to keep their kids there...
Yeah, exactly.

And then it's a win-win. It's very clever.
How much money does your company make today?

Last year we made $268,000.

And what was your profit?
Our profit was $29,000.

The $30,000 they have to pay
for the franchise... correct.

Where do people get that money?
Um, a lot of what we've done

is we've done it in-house, where
we'll finance it out for 'em.

Then, we can make money off
their interest, which--

so, you mean they owe you
the $30,000... correct.

And then you start char-- like, you
guys are unbelievable. You are sharks.

You march into somebody
and you sell them

$30,000 worth of liability they
start paying you interest on

'cause they haven't
funded it yet.

Forget this. Come and work for
me at O'Leary funds.

I can make you some real money. We're
gonna make you some real money.

What's proprietary about this? Why can't I--
doesn't matter. They're proprietary about this.

Other people have tried this.
People heard about us.

They make up a name that's
not nearly, of course,

as cute as "tippi toes." Yeah,
"uncle Kevin's wacky feet."

Exactly. but you know what?
You don't have this passion,

you don't have this drive, you
aren't this good with kids.

We have it. I mean, I-I'm
absolutely blown away you've got

a quarter of a million dollars of sales, 'cause this stuff--
but you know what it proves, Kevin? With a little bit

of hard work, a little bit
of passion, and a little bit

of vision, you can-- you can have a real business. You
know what? We have so many parents come to us who say,

"we did dance someplace else.

This is like nothing else we've ever
seen." What's your ongoing royalty

that you're earning back from the--the franchisee?
There's a minimum royalty payment each month, so--

tell me what your minimum royalty is.
It's $1,000 each month.

Wha--are you actually-- I can't believe
this! See, Kevin? These guys are good!

These guys are good, I'm telling you.
That's $42,000.

I can't believe people give you
$30,000 for these insects!

These guys are like
extortionists with tutus on.

I love 'em.

You asked for $30,000 for 5%.

Mm-hmm. talk to me
a little bit about

why this business is worth $600,000. We
walked in the doors a few minutes ago.

Since then, we have more
kids in "tippi toes,"

so we are growing at a rapid pace.
Love that attitude.

And why are you only giving us 5%?
If you want more, negotiate with us.

Boy, that's great.

Are these DVDs or cds? These are cds
that we have here. We hope to do DVDs.

So you haven't produced the DVDs yet?
That's what we're here--today.

Oh, I see. Oh, wow.

But guys, guys, why? You know,
why get into the DVD business,

whereas, you might make, $5
to $10 a DVD if you're lucky.

That's where-- that's our vision. It's down the
r--we're building a brand. We're building a brand.

Is that where you're going with it? That's
where we're going with it. Long-term.

Our big dream is to have the next Barney.
You guys are amazing, what you're doing,

because you're not
selling them anything

except your smiling faces. I
hope you see more behind it than that.

I don't, actually. The rest of
us do, but don't worry, guys.

If you keep on going
like you are,

he'll need a job, and you can hire him.
Yes, yes. That'll work.

Guys, you don't need me, but
you are great extortionists.

Um, I think you're gonna do well. I'm out.
Have any of the people you signed up quit?

As far as franchisees? Yeah.

No.

And how long is the--the, uh...

Ten years. Ten years.
Really? Okay.

Mm-hmm. mm-hmm. And then, at the end of


At the end of ten years, their
business is thriving. Wow.

They sign another... this
is un--this is unreal.

I don't know whether to applaud
them or call the police.

They're doing the hardest
thing in the world

for any small business. They're
executing on their idea.

How do you stop them from
following the DVD deal?

How do you stop them from doing that?
Well, then, that's the challenge, right?

You don't want to get too far
ahead of yourself... sure.

Okay. 'cause that's
how you screw up.

Sarah, it's fantastic, but you
got to grow one step at a time.

You know, you don't build a
great business overnight,

and I think you're just trying
to take too big a leap. I'm out.

I can't get near your valuation.
Doesn't make any sense for me.

Yet, I'm so stunned by what you've done...
To people--

you got them to sign
these contracts.

I'll make you an offer. I'll
give you $50,000 for 51%.

You're gonna have
to wear ankle bracelets,

and every time you mention--
you mention the word "DVD"?


That's what happens.

And you stay in the cars and
you sign those contracts.

The problem is 5%, even on
a business that's growing.

Okay. you guys are going to
have to come back to me,

and, very simply, if you come
back with the right number...

For $30,000? Man,
you do this all the time.

Well, I think the genius
of this whole thing

is that you've found a way
to tap into the working mom

while her kids are at school.
Mm-hmm.

I don't think there's a
limit to what you could do.

But I think the 5% isn't enough

to get me excited
to be in with you.

Okay. so I need a
larger percentage.

So rather than ask you to
name a number back to me,

I'm gonna say that I'd like to
get 20% of your business...

Okay.

For... what? $60,000?

What are you gonna do?

Um, thank you for your
offer, but no, thank you.

You sure?

Before you come back--

are you going to come back and
make a counter-offer? Mm-hmm.

Okay. before you come
back with a counteroffer,

here's the scenario. Okay.

I don't want to get into a
negotiation, and a competitive

negotiation, versus Barbara,
so if I say yes to whatever

your counter is, you have to
tell me that you will say yes

immediately, and we have a deal.
Okay.

I like that. That's exciting.

I know. My palms are sweating.
Yes? Is that a yes?

Yes. okay.

Okay. so $100,000...
Now wait a minute...

For 30%. Done. Done and done.

Crap. thank you and good night!

Oh, thank you so much.
It's gonna be fun.

I don't believe it.

Did you like that, Barbara?
I don't like it one bit.

That was so damn smart.
I--

no, but that's a
compliment to you,

because I did not want to get in a back-and-forth
with you. Well, thank you. It feels so good.

"Barbara, I screwed you, but it's a compliment
to you!" I feel really good about it.

I'm just a lean, mean
shark machine, baby!

Oh, my gosh. We're so excited.
This is unbelievable.

More than we ever imagined.
And they're--the sharks,

they're--they're tough, but
they're not that tough.

Felt good about it.
They got our vision.

I'm Shawn Davis, better
known as chef big shake,

'cause when I'm in the
kitchen, I shake it like this.

I learned how to cook growing
up with my Italian family.

You heard me-- my
Italian family.

I grew up in a pretty rough area
in New York. At the age of 12,

my mother made arrangements for
me to move in with the palmeros.

Giovanni palmero owned a very
successful Italian restaurant.

He taught me everything about
the restaurant business.

That's where I developed my
strong passion of cooking

and developing food products.

Not too thin. There you go.
Let the Kn*fe do the work.

Now I have a family of my own.

It was for my daughter that
I was inspired to make

this healthier alternative
to the burger,

and there's nothing
out there like it.

C.b.s. foods.

My dream is to bring a
little bit of chef big shake

to every single dinner
table across America.

♪♪♪♪♪

What's up, what's up,
what's up, people?

My name is Shawn Davis, better
known as chef big shake.

I'm the president of c.B.S.
Foods.

I'm here today to
ask for $200,000

in exchange for 25%
of my business.

Our flagship product is the
original shrimp burger.

We manufacture these burgers
today in four different flavors.

We have original,
teriyaki, cajun,

and jalapeño, if
you like it hot.

Today I brought some samples
for you guys to try.

Hey, shake, that's pretty good.
Thank you. Thank you.

Mmm. tastes good.

Thank you so much.

To date, we've sold over


to mom-and-pop stores
and the restaurants.

The sales have grossed
right around 30 grand.

This year, I recognized
the bigger picture.

My burger needs to be in
every single supermarket

across America.

These are the facts-- the
hamburger business is

a multibillion-dollar-a-year business.
Turkey burger--

a billion-dollar-a-year business.
Bankruptcy lawyers--

a billion-dollar-a-year business.

C.b.s. foods has
perfectly positioned ourselves

to grow the shrimp burger

to a billion-dollar-a-year
business,

just like its counterparts.

Who's ready to help me
help you add some zeros

to your bottom line? So walk
me through what a case costs to make

and what you sell it for. Um,
per burger, 87 cents a burger.

That's not cheap. And we retail it for
$1.63. It's protein. It's shrimp.

Little light on the margins there.
Well, let me tell you this.

This is not a
one-dimensional product.

You're buying a brand. You're buying c.B.S.
Foods. We're buying Shawn.

You're buying chef big shake. And
what other products are under c.B.S.?

The lobster slider, which
they've taken 300 cases of.

Collectively, all of my
margins, all put together,

all of our products, is
running right around 63%.

How is this business
worth $800,000 today?

You've only got
$30,000 in sales.

You're not making any money.
What I have is commitments

from two supermarkets
that said to me--

they flew me in after tasting
exactly what you tasted

and said, "you know what?
We want you in here."

So these are only 2
supermarkets out of 32,000

across this country. But
you don't have that order.

I will have this order within the next ten
days. And that order will be how big?

For the burgers, 600 cases, and
for the sliders, 300 cases.

What would the dollar
amount of those orders be?

$87,200.

So you've got $30,000 in
sales this year. Yes.

Let's say it's $100,000 in
orders this year. Okay. Okay.

How much money will
you make on $100,000?

I would make roughly 53%.

Man, I've gotta
say, I like the concept.

You've got a customer in me.
I'll--I'll buy the product.

But I really can't add value. I
don't know the food business.

I'm gonna have to
say that I'm out.

And, Shawn,
I have to say,

I just don't like shrimp at all,

so I'm just going
out on that basis.

You and I are
actually doing business

together right now. You
just don't know it.

I own the debt of one of
the largest manufacturers

of crustacean and proteins
off the bottom of the ocean.

I always knew you were a
bottom-feeder, Kevin.

Shawn, my concern
is your margins...

Yes, sir. Aren't high enough.

They have to be north of 70% in
seafood, because it requires

a heavy commitment to
refrigeration and storage

and also access to supply of
the protein you're using,

which is the most
expensive food we eat

and the most vulnerable to
price increases and decreases.

So at the end of the day,

um, to me, while it's an
interesting food concept,

it's probably one
of the more risky,

and, uh, for that
reason, I'm out.

Okay. okay.

Shawn, I
love the product.

$200,000 for your company--

I don't think your
whole company is worth

$200,000 to $300,000 today.

That doesn't mean you're
not gonna build it

and it's gonna be successful. This
is not a one-dimensional product.

These are shrimp burgers.
America loves shrimp.

It's the number one
seafood product.

I love the shrimp. I
hate the valuation.

The company isn't
worth that today.

For that reason, uh, I'm out.

Okay.

Four sharks are out.

Daymond John is
Shawn's last chance

to make a deal.

Daymond?

I liked those burgers. I-- look, I ate 'em.
Both of 'em.

And I'm gonna eat the other
guys' burgers when they leave.

I can't get around the
number that you're asking.

You're valuating your
company at $800,000.

I can't get around it,
so I have to say...

Well, I'm willing to--
I'm willing to...

Increase the percentage
to buy into my company.

I'm willing to do that.

What percentage?

I'm willing to go up to 30%.

You have somebody who's
passionate about the product.

You have somebody who
loves this business.

You have somebody who
studied this business.

I have the strong passion
and know how to do it.

What if I offer 40%
of the company?

Everything about you is right
except for that number,

and you're now at


so now you're valuating
the company at about...

Roughly $570,000. $500,000.

Yes, sir. $500,000.

I'd be buying more into you
'cause you're a great guy

than buying into the business...

So... I'm out.

Thank you.

Even if he
has those orders,

the business is not worth $500,000.
No, but he did have a business.

You know, he's-- he'll get there.
I hope he really makes it.

Well, when I get home

and tell my family that I
didn't get the investment,

I think initially they're gonna
be a little disappointed,

but you know what? Everything
happens for a reason.

This is not gonna stop.

I have a strong support system,
and I know they'll be there,

and we're gonna keep
continuing moving forward.

Is James Martin.

I live in beautiful
Oregon wine country,

and my product is copa di vino.

I come from a family
of cherry farmers,

and my family has lived
here for seven generations.

I worked in the
world of technology

and then moved back to
the small community

to try to raise a
family on the farm

and became passionate
about wine,

which is an
agricultural product,

and developed my own winery.

Copa! hey!

Copa di vino will make wine
easier and more accessible

for people to enjoy.

Our technology allows winemakers
to be able to package wine

in a way that they've never
been able to before.

I know that copa di vino
is gonna be so successful

that I hope to be the
first entrepreneur

to actually come
back and be a shark.

♪♪♪♪♪

My name's James Martin.

I'm c.E.O. And founder
of copa di vino.

I'm here today looking
for an investment

of $600,000

for 20% of my company.

I love wine,

and it's my favorite
way to celebrate life

with my family and friends,

and some of the greatest
places to celebrate life

are in the outdoors
or at events.

Unfortunately,

that's when wine gets
very complicated.

Just to have a simple
single glass of wine,

you have to have wine
bottles, corkscrews,

and fragile wineglasses.

That's why I created

copa di vino--

America's first premium
wine by the glass.

Just open...

And enjoy.

Cheers.

Customers of wine
love my product,

but for businesses, this
is the game-changer.

For a stadium that
wants to offer

a premium wine-by-the-glass
product,

this product is the only
vessel that allows you

to have premium
wine by the glass.

I have the largest retailers
and venues in the country

begging to serve my product.

I just need your help to
create more inventory.

This is the most
revolutionary wine packaging

created in the last 20 years.

Are you selling us on
a packaging system,

or are you telling
me you want to enter

the very competitive
wine business?

I have a winery. In my winery...

Thank you.

Currently we make about


and we're now currently in
market with my product.

In the first 6 months, we've
sold product into 26 states

with the largest
distributors in the country.

Cheers, Barbara. Wait up for me.

So you grow your
own chardonnay grapes

and cabernet sauvignon?

I buy fruit from my friends
that have vineyards.

Cheers. cheers.

A toast to all of you. Whoops.

So was that the
easiest glass of wine

you've ever served yourself?

It's a little hard to take off.

No kidding?

James, am I buying
a wine label here,

or am I buying a
packaging system?

We're--actually have three
different revenue streams.

We have the ability to license

and--and collect royalties,

we have the ability to
bottle for an industry,

and we have the ability
to go ahead and launch

our own consumer brand. And which of the
streams are bringing in sales today?

At first, right now, our own
consumer brand, copa di vino.

And what are sales in that today? Well,
we've been in the market for five months,

and we've had a half
million dollars of sales.

We've had over $800,000
worth of orders.

Wow. that's quick.

So people are buying your wine because it's easy
to carry? Absolutely, and they're also getting--

when they're
drinking my product,

they're also getting a-a--

don't come and tell me this
is premium wine. It's not.

It's just industrial wine. Yeah, but
you're a wine snob. Let's be real.

So what? To me, I wouldn't buy this wine.
That's just me.

You're going after mass-market.

I think the packaging is the play.
Right.

How long does it stay fresh?
We're good for a year.

The challenge with anytime

that you reduce it down
to a small amount,

is that the shelf life
is very, very short.

Usually, 30 days. Well...

You're getting a year out of it.

Have you patented this packaging?
Absolutely.

Not only did we create a way to
atmospherically package liquid,

we've created a way that
when alcohol volatilizes

under heat or pressure,
it won't blow the seal.

We're talking about
the top laboratories

in the--in the world that
have worked on this project.

Where are you selling it? All the
kroger chains, ralphs, 7-Eleven.

Um, we're in discussions with them.
Why are we even in the wine business?

Why aren't we licensing
this to all the wineries?

Why aren't we going to mondavi
and everybody else and saying,

"buy this"?

We are. But right now
we're working on projects

with two of the nine largest
wine companies in--in the world.

Yeah, how much money are you
gonna make off those deals?

Estimates next year is about $3
million to $5 million. Of sales?

Of sales. Now I have a
different question.

Why do we even need to be in
the packaging business at all?

Mm-hmm. why is this not a patent
asset that we go and market to

the largest packaging
companies on earth?

You know, the wine industry
right now needs companies

like mine to service them
for these niche needs.

They don't want to invest into
equipment and have to learn--

especially this process. This is an art.
This is not--

this is a proof of concept
is what you're saying.

They want to know it works,

'cause they've seen it fail so many times.
Oh, absolutely. Yeah.

So this is his way of showing that
it works. Listen, there's a belief--

pioneers get slaughtered,
and settlers prosper.

With that said, you're just
too early for me. I'm out.

James, is there a way
to take the patent

out of copa di vina--di vino?

Mm-hmm.

I really like your patent.
Can we pull the two apart?

Can we separate the
licensing, I.P.--

for clarity, I.P.-- The
intellectual property.

I.p. as a separate entity

and leave you with the wine business?
We can.

So if you can come
back to me and say,

"Mark, here's how I'd
value the patent,

"the intellectual property,
here's how much cash I'd like,

and here's how much stock I'm
willing to offer"... mm-hmm.

I'm wide open to that. Yep.

And then you can own and run with
your wine company... mm-hmm.

And build as big a brand as you like.
Mark, you--you have--

your attendance in your
stadiums every year is rising.

Oh, no. It's not lost to me that I
could resell these. Absolutely.

Not lost to me that I could still be a
customer. I mean, if you made a few calls,

how many stadiums would this product be
sold in? I'm not questioning that at all...

Absolutely. but I don't want to be
in the commission sales business.

Yeah. let's get focused on that,
so that at least I can understand,

if I gave you a
check for $600,000,

how much of the I.P. Company
and bottler I could own.

How much is that?

How much are you willing to
sell me for $600,000? 20%.

Not enough. You've already devalued
the brand to worth this much...

They didn't devalue it. No, no, no.
We didn't devalue it to zero. Not at all.

They just said they're not
interested in it. Or a negative.

No, no. It's just that we don't want to be in that business.
I don't think anybody said it's not worth anything. We--

yeah. yeah. But I think for me, I'm
not gonna try to talk you into

splitting one from the
other, and my gut feel is,

it's not the direction
you want to do today.

I'm not a wine guy.

I don't want to build the brand,

so I'm out for that reason.

James, I don't think

I can bring anything
to the table in this.

I'm out.

The real value in all
of this is the I.P...

Uh-huh. because if you really own
it, this category could explode,

and you will make something
off every time somebody rips

the top off one of these
plastic or glass-- sure. Yep.

That's a business, my friend. That's
how you get rich. Absolutely. Yep.

Now can you focus on that

and tell me how much of that
you'd sell me for $600,000?

E sharks are out.

Kevin isn't interested in
the brand copa di vino,

but he is interested in the
patent for the packaging.

Can you focus on that

and tell me how much of that
you'd sell me for $600,000?

The reality of what
you're asking is,

some of the competitive
advantages

that I have as a brand
and as a bottler,

I'm gonna be offering and
giving away to another entity,

and currently I'm not
ready to do that.

I feel a huge opportunity
being lost here.

I understand business.

I understand numbers.
I've run the numbers.

The amount of money I'll make on the I.P.
Side is far smaller

than the great amount of money

that I'll make on the bottling side.
Okay.

Really? absolutely.

Isolate the I.P., all right?
Yep.

I'll buy 51% of it for $600,000.
I'll take control of that,

and I'll take my chances
in terms of licensing this

to everybody in the industry.

I'll worry about your darkest
fear of not making any money.

I'll still sleep at night.
Don't worry. Mm-hmm.

And then you can run the brand,
you can run the bottling,

but I will license this to them.
But every time that happens,

you'll be getting 49% of what
I bring home every month.

Sure. the opportunity
is greater than that.

The opportunity is far
greater than that.

His deal is far better
than what I would offer.

Reason being, you can take
the $600,000 and use it

as you please and accomplish
everything you wanted

to accomplish on the other end
and invest in that... mm-hmm.

However you want to invest and
get all the upside. Mm-hmm.

I would never do a
deal like that,

so for that reason, I'm out.

I-I honestly think

that if I could explain to
you guys a little clearer--

- don't. you're hurting yourself.
- Don't say any more.

No, no, no, no, no, no, no. James, James, James--
stop selling, James. You gotta stop selling.

I'm a dream come true for you.

Do I believe this has a great opportunity?
Absolutely.

Have I put over a
million dollars

of my own money into this?
I have.

And is that worth going ahead
and selling, at this point

what we've--what we've
created, off to somebody else

to control that portion of it?

That's the special sauce.
We all know that.

Why give away your special sauce
when you can have it integrated

into the other aspects
of your business

that right now are successful?

I'm working on--on--on,
right now,

contracts of over $15
million to $20 million

on private label projects
with 7-Eleven, with target,

with some of the biggest
wine companies in the world.

- Will he get an answer at any point?
- Look, James--

the answer is no.

Well, then counter me.
What do you want for 51%?

$3 million.

Forget it. Not a chance.

James, listen to me,
I am going to go buy

a thousand-dollar
bottle of wine tonight,

and I'm gonna drink it,

because I'm weeping for
the opportunity you lost.

It's the only way I can
feel better about it,

and then I'll never remember
it again, and I won't care,

because there's a
million opportunities

that are gonna come to me tomorrow.
This was your moment. Mm-hmm.

You turned around. It's gone.

You looked a gift horse
in the mouth, James.

Ohh. you really did.

Cheers. cheers.

Thank you, guys.

The guy needed me to get focused
on what really mattered.

You could've--look, you could've
made money on that side of it,

but he had a grand slam, and he didn't know it. I
forget who he is. I don't care now. It's over.

He's a dead man walking,
just another deal. Right.

Kevin totally missed the Mark.

The value on our
product is the brand.

We're the first to do
wine by the glass.

It's a huge opportunity
and a huge market,

and we've already proved
that, so the idea

that we're gonna break it
down to one little component,

and that is sell the patents,

would be selling the life
out of the opportunity.