Narrator:
Tonight on "Shark t*nk"...
Who's ready to become...
All: Legendary!
Putting on sheets is now...
Both: Fast, easy, neat!
Can you do this with the dog?
Can you carry it
with this?
No, no.
[ Laughter ]
What have you sold? No revenue.
Oh, my God. How do I make money?
Gassen: I sat the kids down.
I said, "No more eating out.
No more clothes for two years.
No more nothing." Unbelievable.
The future of your company
is truly in the balance
right now.
I think I've taken this business
as far as I can really take it.
Duane: Let's come together.
We came here to do business
with the great whites.
Daymond: No way in the world
you thought you were
coming in here
and getting a deal.
♪♪
♪♪
Narrator: First into the t*nk
is a product
to help make a dreaded
daily chore easier.
♪♪
Hi, Sharks, I'm Nita.
And I'm Judy.
We're from
Mandeville, Louisiana,
and we're seeking $150,000
for 10% of our company,
The Better Bedder.
Sharks, it's hard to find sheets
that fit your mattress
perfectly.
They're either way too baggy,
or they're too tight,
and the fitted sheet pops off
of the corner of the mattress.
And putting on sheets is hard.
Mattresses weigh a ton,
and they're too heavy
for seniors
or those with disabilities.
So, what if we told you
that there's a product
that solves these problems
and a whole lot more?
It's the Better Bedder --
the greatest bed-making
product ever invented!
The Better Better
is a giant headband
that wraps around
the sides of your mattress.
You put it on once,
and it becomes
a part of your mattress
for the lifetime
of your mattress.
And putting on sheets is now...
Both: Fast, easy, neat!
Show 'em, Nita! I will!
[ Chuckling ]
With the Better Bedder,
there's no more lifting
the heavy mattress,
and there's no more tucking
underneath the mattress.
You simply take
the Better Bedder,
flip it down,
put your fitted sheet in,
and flip the
Better Bedder back up.
That's it. It's that easy.
Nita, show them the top sheet!
I will!
Take the Better Bedder,
flip it down.
Put your top sheet in,
flip the Better Bedder back up.
Did you see her lift
that heavy mattress?
Judges: No.
No, you didn't,
'cause she has a...
All: Better Bedder.
That's right.
And wait, there's more.
You can store your book...
Cuban:
Oh, there you go.
Your phone...
Greiner: [ Laughs ]
...or your glasses.
Wow.
So, Sharks, who wants to join us
and put a Better Bedder
on every bed in the world?
[ Laughs ]
And there is a Better Bedder
in front of each of you.
How did you discover this idea?
We can thank
Judy's lazy son for this.
He actually came home
from college,
and he started sleeping
on her good couch.
And she's like,
"Why are you sleeping
on my couch?"
He said, "'Cause
the new bed you bought,
the sheets are horrible
to make the bed every day.
I'd just as soon
sleep on the couch."
And so, she called me and said,
"Hey, can you help me
think of a way
to make the bed easier?"
And I know from working
with Judy for 15 years
that when she's on a mission,
we gotta figure something out.
Judy's on a mission.
Yes. [ Laughs ]
I like that. Right.
And within six months,
we sold our first Better Bedder.
And you worked together
for 15 years?
Yes.
And what were you
doing then?
We have worked for 15 years
in the insurance industry.
I'm actually a lawyer
by education,
and I practiced law
for a little while,
and then I went and worked
in the insurance industry.
So, this is not
a full-time job for you?
It is.
I am actually putting in
my two weeks' notice,
and I'm cashing out my 401[k].
So, sometimes people's sheets,
especially at the end,
are longer.
You're saying
no matter the length,
it easily tucks down in?
Yes, ma'am. Yep. Yes, yes.
That's the beauty
of the Better Bedder.
Any sheets from any store
fit perfectly
'cause you only have to
tuck down about three inches.
So, ladies, quick question
on the Better Bedder.
The issue is,
I'm always going to see
a white band
around the mattress.
If I'm a fashionista
and I'm, you know,
designing a bedroom,
I'm worried about the color.
What if I don't want white?
Yeah, I was gonna
ask the same thing.
Does it come
in colors?
We do make it in colors,
but white is our primary seller.
We have sold a ton of these.
We've only sold it
for a little over
a year and a half.
Well, before we get to
how many you sold --
'cause that was obviously
a blanket statement --
what do you make it for,
and what do you sell it for?
The average cost
of goods sold is $33 --
I mean, $33.50.
Cuban: That's a lot.
To make it or sell it?
To make it.
It's made in the USA.
It's $33? Wow. $33.
Dang.
And the average
sales price is $63.50.
Daymond: Okay.
O'Leary: Okay, ladies.
I think there's an issue
on production costs,
because that sounds
very expensive...
Really expensive.
Cuban: Yes.
...for, you know, basically,
a rim to a mattress.
I'm gonna tell you --
this is a bad time.
COVID came, and so
it was hard to get material.
It was definitely hard
to get elastic.
The material we use on
the corner is more expensive.
And this is an industry
that's completely new to us.
We didn't know how to go
to China or to order fabric.
We're normally in
the insurance industry.
I could sell you
a policy right now.
[ Laughter ]
In the business jungle,
there's only one king,
and it's called sales. Yes.
Yep. What have you sold?
We have sold, year to date,
$476,000.
Whoa!
-Wow. -Year to date?
So, you could potentially get to
$1 million this year.
Oh, absolutely.
We think we'll finish
at $1 million this year.
Yippee-yi-yo-ki-yay.
Cuban: So, how are you
promoting this?
How are people finding you?
Well, first of all, we have
had no media or publicity
other than the small town
she grew up in.
Lillie, Louisiana,
did an article about
"Small-town Girl Invents
The Better Bedder."
We have not paid
any influencers.
We have done Facebook
video ads ourselves,
Nita at the corner of the bed,
me with the iPhone
with terrible lighting.
Those were our original videos.
We got over a million
views on those.
We got a million views,
and it has been a hit.
Tell me about you.
I was adopted when I was 5,
so I always knew
that, um [Laughs]
struggles and challenges
can be overcome.
I'll give you an example --
When I got divorced,
I left with a suitcase
and clothes, and that's it.
Not a fork, a Kn*fe,
a spoon -- nothing.
And immediately,
I went into debt,
and I said, "You know what?"
I sat the kids down, and I said,
"You know, we can't
live like this.
We're never gonna get ahead
if we don't do this."
So I said, "No more eating out.
If we do, it's 99 cents.
No more clothes for two years.
No more nothing.
We're moving into an apartment,
and we're gonna share rooms,
and we're gonna do this
for two years."
And we did, and in two years,
we were out of debt,
we had a house,
and we had
money in the bank.
Corcoran: My God.
And so, I do that
with everything I do.
I would like you
to tell that five times
to every woman
who's stuck somewhere
and is too afraid to move out --
kind of feels ashamed
of themselves
that they can't make that move.
Unbelievable.
Listen, you guys are terrific.
I deal with so many lawyers,
and you're the first one
I've ever liked.
[ Laughter ]
Like, that's fantastic.
Well, thank you.
I got it in 90 seconds.
Bingo. I know what it does.
But do I want to be
in the bed skirt business?
It's not a space
I need to be in.
Well, you know what,
let me just say this before --
Guys, I'm out, but not 'cause
I don't love you guys.
Thank you. You're just a joy.
Guys, let me help
clear things, as well.
Look, I did an analysis
at one point in my career
where I spent about
an hour a week making my bed,
and then I extrapolated
that out and figured,
"That's 365 hours a year."
Across 10 years, that's months.
And so, I vowed that I kept
my sheets and bedding clean,
but I would never make my bed.
And for those reasons, I'm out.
Okay. Okay.
Judy and Nita, I want to
make the first offer,
if I might, okay?
Okay.
I'm gonna give you three reasons
why you should choose me
as a Shark, 'cause I imagine
you're gonna see
other offers here today.
Number one, I'm going to
bring down your cost to $20
if you want to keep it
in the United States.
If you're willing to go out,
I'll bring it down to $11.
Secondly, I am great
at driving public relations.
My Comfy product that is
making $65 million a year
after being in business
less than three years
is making the money
predominantly because
I am great
at creating publicity.
And lastly, when you go on --
Oh, God.
No, one more.
I always pick
the same kind of people --
great people that I could trust,
people that love each other.
And so, you would wind up
being very happy
in the nucleus family
that I put together.
I'm going to give you
the $150,000 for 20%.
The reason I need 20% is,
I don't think
about my investments
if they're less than 20% --
honest to God --
no matter how nice you are.
And you don't even have to
answer me right now.
I wish I was a son of a bitch
who could say,
"You must answer me,
or I'm out."
What are you trying to say?
But I'm trying to say
you should take it from me,
but if you want to shop
other offers, certainly do that.
What are you gonna do?
♪♪
♪♪
Narrator: Two Sharks are out.
Barbara has made an offer
of $150,000
for 20% of Nita and Judy's
bed-making product,
Better Bedder.
Okay, I'll share with you
what I think.
Against all odds --
not having a lot of money,
having a lot of debt --
you said, "I'm gonna
take charge of my life.
I'm gonna fix this.
I'm gonna be happy."
Because money
doesn't buy happiness.
That's what a strong woman does,
and I love this concept.
It's very visual.
I think this could be
a great QVC item.
I also think it could be
a good infomercial item.
So, my offer's a little
Sharkier than Barb's.
I'm gonna offer $150,000,
but for 25%.
And that's because
I'm gonna have to
really get down in there
and do a lot of work with you.
All right. Okay.
Okay, guys, here's what I think.
I think my other two Sharks
are brilliant,
but, you know, they're just
such small thinkers.
I mean, all of us
have manufactured,
but I've been
doing it the longest.
Enough. Spit it out.
I see this being
a commercial product
that I take to AAHOA --
Asian American Hotel Owners.
They own about 51%
of hotels in the country,
and I think that this will be
saving them, their staff,
time and energy,
as well as their health.
Second of all, I work with
Purple, Casper,
and Leesa Mattress.
I think there's something there.
So I will offer you
the same $150,000 for 25%.
Okay. Thank you, thank you.
Wow. Wow.
You've got three
amazing offers.
We do.
You didn't see that coming.
Didn't. No. [ Laughs ]
What are you gonna do?
Um...
we -- we would like to counter,
because we were hoping
not to give up that much.
Is anyone willing to go to 18%?
I'll take that deal.
Corcoran:
I'll take that deal.
You got a deal. You got a deal.
Wait. Greiner: [ Laughs ]
Wait. I sa--
I took it first.
Whoo!
No, no, no, we both said it,
so choose between us.
I took it first.
There's no rules in the t*nk.
Let me flip a coin.
You want me
to flip a coin?
There are no rules in the t*nk,
but I did take it first.
Let me say one thing. Sure.
I'll go to 15%. Whoo!
Oh, my goodness.
Well, listen, I will just --
I don't want to pressure you.
I would love to be your partner.
You can get money
all day long...
Right.
...but I think what's
important is the value
that comes to you
for that money.
I was willing to do the 18.
I'm good at that.
Can you also get the
manufacturing costs
down for us, as well?
Oh, my God. That's all
I've done my whole life.
All of us can.
I've manufactured
over 1,000 products.
Why would you
even go with her?
I don't get it.
Am I missing something?
We love you, Barbara --
That's always a bad start.
I know, and that's why
I didn't want to
start off like that.
We love you, Lori.
You got a deal. Yay!
Ohh, I don't get it.
Whoo!
Super, super excited, ladies.
Yes! Thank you!
It's really smart.
Oh, thank you so much!
Congratulations.
Congratulations.
We did it! Whoo!
We did it! We did it!
Lori can do infomercials.
She can do... [ Laughs ] Yes.
Lori can get us on QVC,
and she can get our
manufacturing costs down.
And we just think Lori was
the right partner for us.
Yes, yes.
Although we love
Barbara and Daymond.
We're so excited.
I don't want to hear from you,
'cause you're the winner,
and I don't like you.
But what did I do wrong?
You waited --
You tried to be cool
by letting everybody else
get in and make an offer.
Corcoran: I mean,
I played too nice.
Yeah.
I should have just
closed the deal.
I'm pretty annoyed.
♪♪
Narrator: In Season 11,
Joe Altieri made
a deal with Lori Greiner
for his innovative
window screen, FlexScreen.
Greiner: Ah.
The world's first
and only
flexible window screen.
Let's see what he's up to now.
Altieri: The year before
pitching to the Sharks,
we did $5.1 million in sales.
In the year since "Shark t*nk,"
we have tripled sales
to over $15 million.
Because of COVID,
we've noticed an increase
because people want to
open their windows more
and let the fresh air
into their homes.
To support that growth,
all four of our
U. S. manufacturing plants
have been running
at full capacity,
and we opened our first
international plant in Canada
so that we can bring FlexScreen
to our neighbors up north.
Joe, you know,
with this partnership,
we're gonna take your
product to the masses.
Greiner: We just closed
a major deal
with Saint-Gobain,
the largest window
and screen manufacturer
in the world.
We're gonna to bring it
to Home Depot,
Walmart, Menards, Amazon.
You're gonna have
a huge presence
in each of these guys.
Greiner: What this will
mean for FlexScreen
is that they're going to be
in every major retailer
not only nationwide,
but internationally, as well.
When homeowners see FlexScreen,
they say, "I want it.
This is so much better.
I gotta have that one."
Altieri: So, the question
that we get asked is,
"Why FlexScreen?"
And I'm sure that's what
you want to know, as well.
Greiner: When a better
mousetrap comes along,
it takes the industry by storm.
Our goal with FlexScreen
is to replace the window screen
industry completely.
Altieri: One of the things
that I am most proud of
is all of the jobs that
we've been able to create --
all of the families that are
now supporting themselves
because of FlexScreen.
To invent something
in your garage
that gets the type of attention
that "Shark t*nk" brings
is so humbling.
And now, to see that
American dream come to fruition
is absolutely amazing.
♪♪
♪♪
Narrator: Next up
is a healthier version
of a favorite indulgence.
♪♪
Hi, Sharks. My name is Duane,
and I'm from Prince George's
County, Maryland.
And I'm Danita.
And we're here seeking $300,000
for 10% of our company,
Everything Legendary.
We all know the benefits
of a vegan lifestyle,
like lowering
your blood pressure
or lowering your risk
of heart disease.
But the problem with
a plant-based diet is,
sometimes you just want to
sink your teeth into a burger
that actually
tastes like a burger.
But most plant-based burgers
are created by scientists
in a lab, like this geek.
Wait a minute.
Wait a minute, Sharks.
I'm no scientist.
I'm Chef Jumoke Jackson,
the Head Chef
behind Everything Legendary,
with a plant-based burger
that's made in a real kitchen
by a real chef -- me.
Everything Legendary
is the wagyu
of the plant-based meats!
It's the caviar.
It's the Kobe beef.
It is the best!
At Everything Legendary,
we use the highest quality
hemp protein
and a proprietary spice blend
that focuses on taste,
texture, and appearance.
It is juicy, it is flavorful,
and most importantly,
it is healthy!
So, Sharks, who's ready
to join this team?
Who's ready to become...
All: Legendary!
Sharks, what we've
prepared for you,
is our premium Legendary Burger
along with our gourmet
Legendary sauce.
Enjoy.
Duane, I couldn't hear
a word you said.
[ Laughter ]
Can you say it again?
♪♪
That's good. Mmm.
Thank you. Thank you so much.
Hope everyone's enjoying it.
Greiner: Very good.
Nice smokey flavor.
O'Leary: You're right.
Very burger-esque.
Greiner: Burger flavor.
Yes, yes.
Thank you.
Cuban: Really good.
It tastes just like a burger,
but the texture is much softer.
We have infused
the best vegan cheese in
the world inside of our burgers.
Corcoran: Oh, that's cheese.
Oh, that's what it is.
The cheese inside of the burger.
Yes. That is infused cheese.
Can you tell me
the nutritional profiles?
Okay, so, it's a slim and trim
For this size?
How many ounces is this?
How many ounces is this patty?
This is an oversized patty.
Those are six ounces
that you have.
The fat content
is only 15 grams.
Do you sell this frozen?
It does come frozen.
We ship it.
This is a mail-in service
that we had to do.
In the midst of COVID,
we had to pivot
our business model.
So we wanted to bring it
from our kitchen
right to your kitchen.
We have our four-pack,
and we have our eight-pack.
So, let's talk about
our cost of goods.
It costs us $20
for our four-pack,
and we sell that for $45.
Then, we have our eight-pack
that costs us $40 to make,
and we sell that for $75.
So our average profit margin
online is 53% right now.
Daymond: Okay, can I
back up a little bit?
Why don't you tell us
a little bit about your story
and how you guys got together
and then came up with this idea?
Duane's mom has lupus,
and unfortunately,
my mom passed away from cancer.
And we tried to get her
on a healthy diet.
My mom just didn't like it.
I called up Danita.
I called up Chef Jackson.
I said, "Guys,
let's come together.
Let's do something great."
And we came up with
Everything Legendary.
Her mom was one of our
biggest supporters.
This is one of her
favorite shows.
That's how I know Honey's
looking down on us right now.
She told us we were
going to be on "Shark t*nk."
That's the crazy part.
She was in the hospital.
She was watching "Shark t*nk,"
and she was like, "You need
to get yourself together,
because y'all are
going on 'Shark t*nk.'"
[ Laughs ]
This burger is priced 30% more
than the big competitors,
but do you get
any pushback on that?
The reason why
the price is higher
is because this is the wagyu.
This is the Kobe beef.
[ Laughs ] The wagyu.
It sounds like you're right at
the very premium top price.
It's a premium
plant-based product.
There's wagyu,
there's Kobe beef.
That's what we stand by.
I can't race them to the bottom.
One of the largest
vegan restaurants
based down in Atlanta --
they tried to buy us early on,
but they weren't any Sharks.
I don't want to make deals
with stingrays.
We came here to do business
with the great whites.
We want a Shark!
O'Leary: Break down
the numbers for me.
We've been doing this
since June 2019.
We had $165,000 worth of sales.
We lost a couple of months,
obviously, because of COVID.
$53,000 of that was profit.
In a COVID world,
as we've found all our
Shark companies doing,
what you care about
is customer acquisition.
Yes.
Yes.
Do you have any
data on that?
Yeah, so, to this day,
we have spent no money
on customer acquisition.
This has all been word of mouth.
This has been bootstrapped.
This has been social --
Jones: Pop-ups.
You haven't bought
a single digital ad?
No, we have not. No.
How did you do
last month in sales?
Last month, we did
$15,500 in sales.
We had 100% growth
from our first month
when we started.
You know, what you're asking for
is $300,000 for 10%.
You're saying, basically,
it's worth $3 million.
Why do you feel
it's worth that value?
So, 4% of the country
right now are vegans.
However, 8% of black people
are vegans.
What does the African-American
part play in it?
Is it just like we're making it
for a certain community
because we want to
reduce diabetes
and hypertension
and stuff like that?
Is that -- Is that
what you're saying
you're positioning it at?
Yeah, I can say that
that's where we started.
I mean, like,
that's who we are.
Jones: Yeah.
But it is growing
to people from all
different nationalities.
But your pricing
is premium...
Yes.
...and plant-based products
are not just for vegans.
So, guys, I'm not
wrong when I say
yours is 10 bucks
and the competitors' are 3.
There's a big
difference there.
Yes.
Your price difference
is a huge challenge, honestly.
I think you have
a lot of work to do,
so for that reason,
I'm going to go out.
Okay. Can I ask how much money
you have invested
in the company?
So, we started off with $17,000
that came out our own
personal savings.
Since then, we took out
a credit card for $30,000,
so a total of $47,000.
Oh, damn.
Have you ever been
in retail?
Yes, we started off
doing our pop-up,
so that accounted
for 80% of our sales.
Daymond: 80? Yes.
All right, so, then,
the rest is follow-throughs,
because after they tasted it
at the pop-up, they --
And then we did retail,
so 2.5% was retail,
and then the other 15%
now was online,
and everything shifted
to be online.
You were selling in grocery
in the frozen section?
Yes, we were.
We were selling
Greiner: Wow!
So, 16 cases a week
is how much money?
So, that accumulated
for $30,000 in our sales.
So, what was the price
that you were selling
to them the four-pack?
We were selling it
to them for $10,
and they were
selling it for $17.
And your cost was 10 bucks? Yes.
So you were making no money.
Exactly.
No, we were
getting k*lled.
Ohh, it was such a great story
until that part.
O'Leary: The product's
great, okay?
This is the best burger
I've ever had...
Thank you so much.
...that's plant-based.
Here's the problem
I got with it.
For me to play with you,
just to get in the game,
I got to put up $300,000.
This is a crazy valuation
for where you are right now.
I wish you had some idea
of customer acquisition cost,
but I don't know that here,
all right?
I think the mistake for me --
You asked for 300K.
I'm out.
So, guys, have you done
anything with local delivery?
'Cause, to me,
if this was in Dallas...
Jones: Mm-hmm.
...and I pulled up Uber Eats
or DoorDash or whatever,
I would buy this
all day, every day.
In the beginning,
we were delivering it
fresh to the customers,
but now --
Yeah, 'cause if you could
train other chefs,
you would be just k*lling that
out of cloud kitchens.
So look, guys,
I'll make you an offer,
but here's the things
I want to test, okay?
Okay. Yep.
I get why you pivoted, right?
You guys have had to
chase the money to stay alive.
That's just the reality
in the real world, right?
Because frozen's so expensive,
you can continue to do that,
but that's gonna be
really hard to scale.
Jones: Yes.
But I think
short-term path to money
is local kitchens,
working with DoorDash
and Uber Eats.
Yes.
I think people are
gonna love these.
So I'll give you the $300,000.
But because there's
so much work, I want 25%.
♪♪
But I'm worth it.
So, what do you guys think?
Thank you so much!
Thank you for that offer.
Thank you for the offer. Is it
okay if we hear everyone else?
What do you think? [ Laughs ]
$300,000.
Can we bring that to 20%?
Do 22%, we got a deal.
Deal. Done.
Greiner: Whoo! Daymond: Yeah!
I should have gotten -- Yes!
I should have asked
for more burgers!
Myko: That's what
I'm talking about, man!
That's what I'm talking about!
We did it! Thanks, guys.
Thanks, guys.
Jones:
Thank you so much!
Congrats.
Greiner:
Congrats, guys.
That's what
I'm talking about!
Yes, we did it!
Yes! Whoo!
Believe in your dreams. Whew.
They're gon' tell you no
a million and one times.
Keep going.
We'd have been broke-broke.
I done had a house repossessed.
I done had a car repossessed
on the way to going to church
before.
Believe in your dreams!
[ Laughs ]
♪♪
♪♪
Narrator: Next into the t*nk
is a way to keep
furry friends safe and clean.
♪♪
Hi, Sharks.
My name is Lisa Baronoff.
I'm from New York City,
and I'm seeking $150,000
in exchange for 5% equity
in my company, Walkee Paws.
So, a couple of years ago,
when my dog got sick
from ingesting
snowmelt chemicals
on the sidewalks of Manhattan,
my vet recommended
he wear booties.
The problem was, he hated them.
It was incredibly challenging
trying to get four
individual booties
onto his squirming paws.
He was so uncomfortable...
[ Laughter ]
...and invariably,
one of them would fall off
and get lost during our walk.
It was a frustrating
experience, to say the least,
and I knew there had to be
a better way.
And that is why
I created Walkee Paws.
Walkee Paws are the world's
first doggie legging
and a better bootie.
Why?
Because they're designed
to stay on.
All four leggings
connect to each other
over your dog's back
so you will never
lose a bootie again.
[ Laughs ]
Our waterproof rubber booties
protect your dog's paws
from harmful chemicals,
hot pavements, rain, and snow
while preventing dirt,
germs, and allergens
from entering your home.
And best of all, Sharks,
they are super easy to get on.
You just slip your dog's paws
into each of the four
paw openings.
Connect with the adjustable
connector over the back
for a perfect, customizable fit.
It's as easy as one, two, three.
So, which one of you Sharks
would like to make
a doggone good investment
and join our Walkee Paws pack?
Can you do this with the dog?
Can you carry it
with this?
No, no.
[ Laughter ]
I would not recommend that
at all, Kevin, no, no, no.
Lisa, what do you sell one for?
The size extra-small
sells for $29.99
up to $39.99.
What does it cost to make it?
So, it ranges from $4.40
up to $5.20.
I mean, I'm always fascinated
by a new product.
I mean, tell me about you.
So, I grew up in South Africa.
My mother was a very well-known,
very successful
fashion designer,
and it was really fascinating
living with her
because I saw her
grow her business
from literally our living room
into a huge, big corporation.
She was just eccentric.
She'd do whatever
she wanted to do,
say whatever she wanted to say.
People thought she was
a little crazy,
and she was fabulous.
You just described Barbara.
O'Leary: I love kumbaya,
but I want to get back
to Walkee Paws.
Yes.
$150,000 for 5%
imputes a $3 million value
for this thing.
So, we launched in 2018.
November and December,
straight out the gate,
we did $64,000.
In 2019, we did $542,000.
O'Leary: Ooh, okay.
That's more interesting.
And how was that broken down?
Was that primarily
direct-to-customer?
So that's all
direct-to-customer,
but about 54% on Amazon
and the rest on my website.
And how much are you
gonna make this year?
This year, we're
looking at $1 million.
Good for you. Good for you. Wow!
And what are you gonna bring
to the bottom line?
$250,000.
And I haven't even expanded
into any other online venues.
Like, I haven't
expanded into Chewy,
which would be
really natural for me.
So, there's just
one product now,
but we have a whole lot
of new products
and new, exciting news
coming out.
And what kind of new products
do you have in mind?
I had consumers
emailing me and saying,
"Can we use this product indoors
to give my dog traction --
prevent them from slipping
and sliding?"
So I am launching a product
in about two months
called Walkee Paws Grippy Socks,
and that is going to be --
Greiner: Oh.
[ Laughs ] I love it.
Actually, that's
an example of --
That's my dog having
a really hard time getting up,
And that's the Walkee Paws
Grippy Socks.
Oh, my God.
And, essentially,
it's the same --
Greiner: They're like the socks
that we wear
that have the little pieces
of rubber on the bottom...
Exactly,
the little sticker.
...so you don't slip.
Exactly.
Why do you value the company
at $3 million?
So, the first thing is,
I have patents.
I have a granted utility patent
on Walkee Paws.
I have three design patents,
and I have
patents pending.
Greiner: Wow.
I've really
protected myself there,
and I own the category
of dog leggings.
All right, so,
let me just tell you
how I think about this.
You're gonna do $1 million,
gonna net $250,000.
Let's say you pay yourself
$75,000 a year.
Average out, right? Mm-hmm.
After Year 1,
you'd probably have
around $175,000
to distribute, right? Right.
I'd have to wait
probably about, uh...
[ Sniffs ]
...8 1/2 years
to get my money back.
Not necessarily,
because I believe
that we're right at
the tip of the iceberg.
Now, I really haven't
done that much
to grow the business.
Cuban: Yeah, but Daymond,
that doesn't assume the fact
that the company
is increasing in valuation.
It doesn't assume that it's not
gonna be perfect tomorrow
and something's gonna happen.
O'Leary: Okay, Lisa,
let me take a s*ab at it.
Yeah, but then don't invest.
If I may have the floor
for a moment.
Huh?
Don't invest then. Wait, sorry.
What did you say? Daymond --
I said, "Don't invest
if you don't think" --
Thank you for
answering my question.
I'm out.
Okay.
O'Leary: Okay... Thanks.
I, too, have a problem
with the valuation...
Yes.
...but people are spending
a lot of time with their pets.
I'm gonna make you two offers
so you can choose
to solve my problem
in two different ways. Mm-hmm.
Number one --
I'll do the $150,000...
for 5%, but I'm putting
a royalty on it of $2.70 --
'cause I've done
the math in my head
of how many units
you're selling --
until I get my $150,000 back
and it drops down to 50 cents
in perpetuity, okay?
Or I give you
the $150,000 for 20%.
You choose.
What you're doing's incredible.
I mean, look, valuation's hard
when you've created
a new category.
Right.
The challenge is...
I'm just not
a Walkee Paws-type guy.
You know, that's just
not my thing.
Congratulations, but I'm out.
Okay, thank you. Thanks, Mark.
What would you
use the money for?
I would use the money
to scale, in particular.
I think I've taken this business
as far as I can really take it,
'cause I've made a few
mistakes with my business,
and I just don't want to make
bigger mistakes as time goes by.
I'd rather have the advice
and the clear direction.
From a Shark.
You know what?
I don't really think
you need a partner here today,
so I'm out.
You made a better
mouse trap, right?
That's the mother of all
invention -- necessity.
I love the product,
but I don't think
it's the right
investment for me.
So I'm out.
Okay. O'Leary: Well --
I guess it's all roads
point to the badass.
They always do. [ Laughs ]
Lisa, you just figured that out.
But you have two offers,
not one.
You choose between the two.
Would you consider doing 10%
for $150,000?
I can't give up more
than 10% of my company.
Sure, you can.
You own the company.
I know I do, but I
wouldn't want to do --
Well, that's why
I made you two offers.
Stick with your g*ns.
I wouldn't give up
a percentage more than 10%.
No, no, no, but I'm --
Look, commensurate
with the risk,
I mean, 5% -- What risk?
Explain what the risk is.
There's no risk
in this business.
Well, then, why didn't you
make an offer?
Because it's not my cup of tea,
but you're saying
there's a big risk.
So it's easy for you
to say that, Barbara,
when you're not putting
a dime on the table.
Look, I'm giving you
two ways to go.
Now you say --
I'm gonna say neither
of them work for me.
I don't want to give
money up in perpetuity.
Well, then, we have
nothing to talk about.
Cuban: Good for you, Lisa.
Then we have nothing
to talk about.
Thank you. Okay.
Thank you guys. Take care.
Congratulations on
a great company, Lisa.
Greiner: Lisa, congrats.
Well done.
Thank you so much.
Thank you guys. Appreciate it.
Daymond: Congratulations
on your business.
♪♪
I didn't really want to give up
any more of my company than 10%,
and I feel good
about my decision.
I think I have a good business,
and I'm going to
make it happen on my own.
♪♪
♪♪
Narrator: Next up is a business
hoping to inspire budding
tech-savvy entrepreneurs.
♪♪
Hi, Sharks.
My name is Samantha John.
I'm here from
Brooklyn, New York,
seeking $400,000
for a 4% equity
in my company, Hopscotch.
Wow.
Back in the day
when you were little Sharks,
did you ever run
a lemonade stand
or mow your neighbor's lawn?
Kids love running businesses
because it's a way
to make their own money
and participate
in the real world.
But in today's digital economy,
lemonade stands
are a thing of the past.
That's why I created Hopscotch.
It's the best way
for young entrepreneurs
to build and run
their first business
on the Internet,
all from their mobile device.
They use the kid-friendly
programing language I invented
to make incredible games
that rival anything
you see in the store.
And that's not all, Sharks.
By selling those games
to the hundreds of thousands
of children in our community,
they can turn their creations
into real currency.
And the best part --
they're learning
real coding skills
that will be valuable tools
in their future college classes
and even careers.
Through our fun educational app,
parents will be blown away
with what their kids can make.
They'll learn concepts
from game design
to graphics, animation,
and so much more.
So, Sharks,
you've all talked to kids
about how they are the
entrepreneurs of the future.
Here's your chance to put
your money where your mouth is.
Which one of you
wants to hopscotch with me
into the digital age?
Your last name is John?
My last name is John.
I feel such
an affinity to you.
And you are from Brooklyn?
Yeah.
We -- We might be family.
I might have to call my mommy.
[ Laughter ]
So, in front of you,
you have an iPad,
and I've chosen two of my
favorite Hopscotch games
in a demo version of Hopscotch
for you to try.
You didn't pick the ones I did?
That I posted to Hopscotch
with my daughters?
Oh.
So, the first game
I want you to try
is called Kaleidocosmos,
and it's a drawing game
where everything you draw
will be repeated eight times.
So you make this really cool
kaleidoscope drawing.
And this game was made
five years ago in Hopscotch.
It's since received
over 2.2 million plays.
Heck, it's a lot of fun
to do, isn't it?
Yeah. Can I see your drawing?
Well, I'm not sure
I'm so proud of it,
but there it is.
Oh, I love it!
Oh, I like that!
It's like a logo.
Ooh, Kevin, I like that!
Lori, that is really pretty!
I call it
"Man's Inhumanity Against Man."
[ Laughter ]
Daymond, what you got?
That is really cool.
It kind of looks 3D.
Oh, Daymond.
Yeah.
The second game
is a platformer game,
and that was created
more recently in Hopscotch.
This game was made by a kid
who has been on Hopscotch
for over four years.
I got up to the first level.
Greiner: Oh, I gotcha.
-Um... -Oh, my God.
Well, I'm not winning this game.
This is child's play --
literally.
Ohh, just missed it.
I'm so ill with mine.
I actually want to
show you guys a demo
of how the coding
in Hopscotch works
so you can just
get a sense of it.
So, this is the coding editor,
and you're coding
with these cool characters.
I'm just gonna walk you
through making this game
where the crocodile is
gonna go after the octopus,
and then it's gonna eat it.
And then, you can do --
With just a little bit
more code,
you can start to see
how this turns into a game.
So, now, the crocodile
has all these other people,
and it's getting bigger
as it eats more.
That's pretty cute. Thank you.
That's awesome, yeah.
Greiner: Samantha,
tell us about you.
How did you come up with this?
You know, when I was a kid,
I never thought
that coding was for me.
I was like, "Computers?
Those are for boys."
And it wasn't until
my senior year of college
that I took my first
computer science class,
and it was so empowering,
and it was so creative.
And I was like,
"Why didn't I know
that programing was so fun
and creative and interesting
and I could make things that
people actually care about?"
So, Hopscotch actually
launched in 2012,
and at that time,
it was all free.
And our first week,
we got 20,000 downloads.
So we got a lot of press.
You guys were
on top of the world.
You were dominating
for kids' programing
languages at the time.
Totally.
O'Leary: And there was
no revenue at that time?
No revenue, no revenue model.
Continued to build.
We were first-time
entrepreneurs.
We were like,
"Grow, grow, grow!"
Honestly, guys, like, when it
comes to kids and school,
there's some other
alternatives...
Yeah.
...but Hopscotch is
the go-to name.
They crush it, right?
And by the way,
when I said I used it
and posted an app,
I meant it, right?
Yeah. I use Scratch.
And then, when my kids first
got into it at school,
we used Hopscotch
and developed games.
That's awesome.
It's intriguing.
How do I make money?
So, we have a currency
that you can buy
in Hopscotch from the App Store.
And then, you'll be able to
use that currency
inside another kid's game.
So, that'll be the revenue?
You'll keep the 2/3
of the revenue
from the app you'll sell? Yes.
And then, eventually, we want to
let kids share
in the revenue, as well.
So we would eventually
let kids cash out
that they earn in their game.
What the active user base?
Our active user base now
is about 200,000
active users a month.
What was your peak?
Our peak was in 2015, I believe,
and we were at about 400,000.
♪♪
So, what happened is,
we raised our first round
of venture capital in 2013
after we launched the app,
and then we raised
our second round in 2015.
And then, we saw
the trajectory we were on,
where it was all about growth,
and we were gonna have to
continue raising capital.
And we didn't want to
run the risk
of just going out of business
if we couldn't raise money.
So we started switching
to a subscription model.
So we are profitable now.
How many subscribers
do you have?
We have about 6,200
subscribers right now.
What's their cost per month?
Hopscotch costs $8 per month
or $80 per year.
Corcoran: How profitable
are you now?
So, we're basically
not really burning cash,
not really making cash,
but that's kind of a decision
to have a team that...
So you're breaking even.
...matches
with our revenue.
And that's kind of why
I'm coming to you, Sharks.
Right.
We have this
subscription business,
and it keeps us in business,
but it's not really
the right business model
for Hopscotch.
We want a little bit
more capital
so that we can start
getting rid of that paywall,
letting everyone in for free,
and playing the long game
where they can start
buying into our currency --
O'Leary: And you hope
that gets traction
because by taking down
the subscription paywall,
you give up that
revenue stream in perpetuity.
I'm not really crazy
about your business model
of giving up what you've
worked very hard to achieve.
You know, 6,000 people
paying you every month
is a good business.
Daymond: It looks like
you want to scale,
but I just don't think
it's figured out yet,
and, uh...
it's a little dangerous for me,
so I'm out.
♪♪
Greiner: I really love
what you're doing.
Thank you.
I personally don't know
how I would help you
to blow this up as a business...
so I'm going to say I'm out.
Um, Samantha, I'm not gonna
take a journey with you.
I've been in your sector
and spent many, many years
of my career in it,
and I swore that when I left
and I exited
that that was it for me --
that I would try other things.
I'm out.
♪♪
What I see here is
you are a tremendously
brave young woman.
You reinvented
your business from --
what I'm counting here --
roughly three times.
You're going into
another new model.
How sure are you
that your new model
is going to work?
I don't believe
that you are sure.
I feel like I'm watching
someone who's frightened
and not quite sure
which is the right way to go.
Am I reading that right?
Um, it's not that
I'm not sure --
I am sure that this is
the right way to go.
Of course, I'm frightened.
I, naturally, am a very
conservative person.
I'm like, "No,
don't spend the money.
Hang on to everything."
I don't call that conservative.
I call that smart. [ Laughs ]
Thank you. Yeah.
But I also realize
that to make Hopscotch
what it needs to be,
we do need to take this step.
You should trust your gut, and
I'm sure you're gonna do that.
I wish I could
give you the $400,000
[Clicks tongue] just because
I believe in you,
but I don't know
enough about it,
so, sadly, I'm out.
♪♪
Cuban: So, first,
I want to ask you a question.
Can a kid do this
on a lower-end iPhone?
Yes. Okay.
So, honestly, I mean,
I've been a Hopscotch
fan forever.
I mean, just talking to you --
Like, I look up
to you...
Oh, my gosh.
...for what you've been
able to accomplish
and what you've been
able to do...
Thank you.
...for my daughters and my son.
I mean, thank you.
Doing these games with them
was thrilling to me.
That's awesome.
So I'll make you an offer.
You're not gonna like it.
♪♪
♪♪
Narrator: Four Sharks are out.
Mark is Samantha's
last chance for a deal
for her kids' coding app
and marketplace, Hopscotch.
So my foundation --
the Mark Cuban Foundation --
we do something called
the AI Boot Camp,
and we want to introduce kids --
to high school kids, primarily,
in minority communities,
'cause they don't
get the chance, right?
I could work with you to do
a coding camp for kids --
how to make money
with your phone.
Yeah. Right?
How to create games
to make money.
Yes.
And go in even if
we have to provide them.
I'd love that.
So I'll give you the $400,000,
but I want 16%.
Yeah, and I'll
tell you why --
because this is a lot of work
and I'm gonna be that person
you call or email.
Mark...
I would love to have you
be one of our investors.
Can I negotiate with you
on the price?
No.
Mark, you know, if you're
valuing this as a startup,
it's like a startup with
an experienced entrepreneur
with eight years of experience
building programing
languages for kids,
who's proven that
she can get earned media,
who's proven that
she knows how to run
a profitable business,
has proven she knows --
It's doing $35,000
in revenue per month
after eight years.
And I'm not trying to
take anything away
from you at all.
Obviously,
I'm incredibly impressed,
but the future of your company
is truly in the balance
right now.
You know, Hopscotch is my baby.
I need to value my company
for all the amazing assets
that it has.
So, fair enough. So -- Okay.
So, only because
I'm a softie...
Corcoran: [ Laughs ]
Okay, what would you do
knowing that I don't
want to come off the 16%?
What would you do?
So, how about, uh...
$600,000 for 5%?
I'm out.
O'Leary: Ooh.
Ouch.
I'll give you one more chance.
Um... We're not close.
You've got to
at least be close.
Yeah, we're not close.
I think that maybe
it might just be
that the way I value Hopscotch
just isn't quite --
There's no way
in the world
you thought you were coming
in here and getting 4%.
And if 5% is your end,
then you really
did not want to do it.
Uh, yeah.
Okay, wait --
You don't need to
talk to me about it,
but, come on,
let's be realistic.
Actually, I think
I did the math wrong.
I'm sorry, I was gonna say
$600,000 for 10%.
♪♪
[ Sighs ]
$500,000 for 11%,
and you've got a deal.
How about...
[ Laughter ]
...$550,000 for 11%?
Rule number one
I'll teach you --
don't over-negotiate.
$550,000 for 11%.
Done. You got a deal.
Greiner: Yay.
Yes! Good for you!
I can't believe I got a deal.
[ Laughter ] Oh, my God.
Daymond: You know... Yes!
...do Johns always
figure it out?
-Good for you, Samantha.
-Oh, my gosh.
Yes! There you go.
Congrats. I'll see you
at Thanksgiving dinner.
Thank you! Thank you, everyone.
[ Laughter ]
Samantha: When Mark Cuban said
he looked up to me,
my heart stopped.
I -- It -- I felt like
I wasn't even myself.
It was such
an incredible moment.
And then, the fact that
we got a deal with him,
I just -- I --
I've lost all my words.
12x15 - Episode 15
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Shows entrepreneurs making business presentations to a panel of five venture capitalists (investors in start-ups) called "sharks" on the program, who decide whether to invest in their companies.
Shows entrepreneurs making business presentations to a panel of five venture capitalists (investors in start-ups) called "sharks" on the program, who decide whether to invest in their companies.