13x03 - Episode 3

[bunniefuu]

Narrator:
Tonight, Daniel Lubetzky,

the founder of groundbreaking
snack company KIND,

returns to the t*nk.

When you build something,

you should build it
because you love it,

not for the "exit."

Why do we use something
just for a few minutes

if it's gonna take
hundreds of years to decompose?

-Oh!
-[ Gasps ]

This is more than just
getting a quick buck back.

We want to impact the world.

You're thinking too small.

You've got this game-changer
that made me ask myself,

"Why didn't I think
of that?" What?!

Bonar: This is the
biggest innovation in years,

All: And it'll blow
your mind. Boom!

Nice!

Your deal's from
the planet Zootron.

Both: Bzzzzzz!

So we actually sold our house.

-[ Gasps ] -He quit his job.

And how many kids do you have?

We have seven.

-What?! -Seven?! -Seven?!

-Oh, my... -Need I say more?

Narrator: First in the
t*nk is a business

seeking to spark
creativity in kids.

♪♪

Hey, Sharks. I'm Dwayne.

And I'm Tim.

We're childhood best friends

and co-founders
from Atlanta, Georgia.

And we're seeking $100,000

for 8% in equity in our
company, Sparketh.

A child's mind is
like a blank canvas.

There's no limit to the
magic they can create.

They're filled with curiosity,
ideas, and emotions.

But with art not being
a priority in schools,

they rarely get an
opportunity to explore them.

And that's why we created...

Both: Sparketh.

An online art education
platform for kids and teens

where they can learn art
anywhere and everywhere.

Each Sparketh membership
comes with access to our library

of over 1,000 art video lessons
taught by engaging mentors

within their specialized fields.

Sparketh is built
from the ground up

with awesome features that
cater towards kids and teens,

such as 5- to 10-minute
bite-sized video lessons

and a virtual art portfolio
that they can create

and share with our
global community.

With Sparketh's creative
spark, budding artists

from blank sheet of paper
to complete masterpiece.

Corcoran: You have us curious.

-Wow, that's
cool. -That is cool.

-[ Laughs ] -Wow!

So, Sharks, who wants to
help make the next generation

the most creative generation
by investing in Sparketh...

Both: Our work of art?

Bzzzzzz!

[ Laughter ]

I definitely wanted

to do a quick
activity with you guys.

-Yeah. -Okay.

Walker: We're gonna
draw a very quick and easy

step-by-step feather.

Take the toothbrush,
and you're going to

swipe away, going left to right,

just like that.

So you're gonna go from top.

Blend them as
you're coming down,

just like that.

-Damn. I'm talented! -Okay?

At the end, you're gonna
take the back of your toothbrush

and you're gonna
start at the top,

and you're gonna
slide all the way down

to create the stem.

So, I actually call this piece
"Man's Inhumanity to Man."

[ Laughing ] What is that, Mark?

It's a self-portrait.

It's a self-portrait. [ Laughs ]

-I have a tornado. -I like that.

That's the most abstract,
beautiful one in here.

You say that to all
the girls. Come on.

So, how do you sell?
Who's your audience?

And for how much?

Walker: So, to start
off, we started off

with the homeschool
market, and over time,

it branched off into any parent

who is struggling to
teach their kids creativity.

How do you reach those parents?

Samuel: The homeschool
market is really, like,

closed off and tight-knit,
so it's hard to get into.

So we kind of, like,
infiltrated ourselves into it.

We went to expos, so
when we started Sparketh,

we started off by
going to one expo.

And to get into that expo,
we literally had no money.

We were broke college students.

We started with $500. Yeah.

And after we built the website,

which we didn't have
the best technology --

So, I worked at a
graphic design job,

and so I snuck Tim into
the office after hours...

-Yeah. -...for days and months.

-I love it. -Yeah.

Yeah.

And we taught ourselves
PHP, CSS, and HTML... Yeah.

Just enough to build
out the MVP. Yeah.

I taught the courses. He
filmed and edited them.

That's my passion
-- film and video.

So he's the artist
here. He's gonna --

So where did you
guys go to college?

Kennesaw State University.

In Atlanta, Georgia.
Atlanta, Georgia.

But we ended up dropping out
when the business was... Yeah.

You know -- as it
started growing. Growing.

So how good is the business if
it's enough for you to drop out?

For me, I think that personally,

I just love entrepreneurship,

and I realized that that
was my passion early on.

And also, I was born
with sickle cell disease,

so that's been, like,
super-tough on me.

Sickle cell disease
is a blood disorder.

And so the average lifespan
of someone with sickle cell

is 30 years old.

And that's when it
really clicked in my mind

that I was, like, I
don't really have time

to take the traditional
path or anything.

I have to go for what I want,

what I'm passionate about,
and that's entrepreneurship.

I truly feel like
I'm very gifted in it.

And even if I wasn't
making a single dollar,

or I was a billionaire
tomorrow, like some of you guys,

I would be getting up every
day and doing entrepreneurship.

So how old are you now?

I'm 25 years old now, yes.

Wow. You look like a baby.

How did you guys
meet? What's your story?

Walker: Man, so we actually
met as kids growing up

through a mutual friend,

and through magic
tricks, actually.

Yeah, we love magic.

Yeah. Do you guys actually
want to see one real quick?

-Yes. Yes. -Sure. -For sure.

All right, cool. So, you
know, we did go through

a lot of dark times in life,

but, you know, this is
a very bright situation.

Yeah.

[ Laughs ]

[ Clears throat
] Yeah. [ Sighs ]

-Oh, nice! -Nice!

There you go.

It was black before, right?

Yeah, it was black
before. Yeah, it was.

-Good one! -Yeah.

All right. What are
you doing in revenue?

So last year, we
did 300K in revenue.

All direct to consumer?

All -- yeah, all B2C. And
it's all online art classes.

Yeah, it's a
subscription-model business,

so a parent will sign
up and pay $25 a month,

and then they get
two student accounts.

O'Leary: So you have to
acquire that customer... Exactly.

And then you've got
to keep them there.

What does it cost you
to acquire a customer,

and how many actually
stick with you past 12 months?

Yeah. So right now,
no one's sticking with us

past 12 months.

There's about more
around like $160

is the lifetime customer value,

which is about like
six to seven months

is around the time
that people are staying.

And $51.50 to
acquire a customer.

O'Leary: Whoa.

Corcoran: Hey,
Dwayne, you mentioned

you made $300,000 last year.

Was that your first
year in business?

No, it wasn't our
first year in business.

We actually started in 2015.

And what were the sales...
Not profitable, though.

Say, last year compar--
or the last two years?

How did they compare?

Last year, we did 300K.

The year before that was 75K,

and then the year
before that was 110K.

So something did
happen in there.

What happened is 2018,

we pushed ourselves
so hard, traveling nonstop,

we were going to
homeschool expos.

We started with one, then
the next year, we hit three,

then we did 11, then we did 22,

and the sickle cell and
just not getting a break,

every weekend selling
and being on my feet,

I ended up, like, putting
myself in the hospital.

Like, and Dwayne also ended up
putting himself in the hospital. Yeah.

We were both in the hospital. We
were both hospitalized at the same time...

Damn. At the
launch of the website.

So we went through -- You guys
will do anything for a vacation.

[ Laughter ]

What's the 100K for?
How are you gonna use it?

So, the 100K is for
content and to build out

a better version
of the platform.

Another quick question.

So, how much are
you burning per month?

We break even, so
we just spend all --

You're not making money, but
you're not really losing money.

Exactly. We could be
profitable if we wanted to.

We just are spending,
so we haven't...

-All right, guys.
-...tried to be profitable.

Is this a business,
or is this a hobby?

So, this is -- this
is a business.

Why? It makes no money.

We haven't tried
to be profitable.

You haven't even told us what
you're tracking so far for 2021.

Yeah, 2021, we're on track to do



Greiner: Well, listen,
for me, I love creativity.

I love opening up kids'
minds to be inventive...

-Yeah. -...and to create.

Thank you. But for me,

I'm not really the "app person."

Mm-hmm. So for that reason...

But -- I'm going to go out.

Okay, thank you
so much, Lori. Yes.

Thank you so much.

Hey, guys, I look at
it and say... And we --

how as an investor --
'cause I like what you're doing,

and I think there's merit in it.

$100,000 for 8% imputes
a $1.25 million valuation

for business that is
-- let's call it what it is.

It breaks even, right?

I give you $100,000.
How would I get that back?

Listen, Kevin, I'm gonna tell
you this, and I'ma be honest.

This is more than just
getting a quick buck back.

This is more
about a true vision.

We want to impact the world --
kids and teens around the world.

I should set aside my
traditional demands

for returns of money... Exactly.

And get something
else in return.

And use it to impact
and change the world.

I can't invest in this. I'm out.

-Yeah. -All right.
Totally understand.

Guys, look, I see where
you're going with this.

The real challenge I see
in this as a business --

you don't have that one
thing to hang your hat on.

You need something that says,
"This is why we are different.

This is what makes us unique."

Why am I gonna do this

instead of just watching
free YouTube videos?

You don't have that one
marketing thing for you guys

that's an accelerant.

And that's unfortunate. So
for those reasons, I'm out.

You guys are so charismatic
and endearing. Thank you.

And I listen to you, and I'm
looking for a reason to invest.

And you keep using
the same phrase --

"If we wanted to make
money, we could."

We can.

But you really have
to convince an investor

how to make money. We can.

But, 'cause I really love you,
I'm gonna make you an offer.

Cuban: Oh!

I'm gonna offer you $100,000

for 20% of your business.

O'Leary: Ouch.

But it's contingent on you
proving to me after six months

that you've been
able to make a profit.

♪♪

Narrator: Three Sharks are out.

Tim and Dwayne
are seeking $100,000

for 8% of their online art
education company, Sparketh.

Barbara has made an offer
but needs some reassurance

that they are focused
on making a profit.

We can.

I'm gonna offer you $100,000

for 20% of your business.

O'Leary: Ouch.

But it's contingent on you
proving to me after six months

that you've been
able to make a profit.

If you don't make the profit,
you don't get the money.

If you make the profit,
you get the $100,000.

Guys, I'm struggling
enormously because I can tell

that you're actually
holding it inside.

And I can tell that

the struggles are
probably even greater...

Yeah, they are.

Knowing the sickle cell
disease that you have

and standing up and
continuing to work

and not give up on your dream.

I'm getting chills just
thinking about your journey.

And at the same time,

you're treating
this as a charity

rather than with the seriousness

and respect of an
entrepreneurial vision. Well said.

So I would like to partner
with Barbara if she's up to it,

and I'd like to mentor
you together with her,

but give you the six months
to turn it into a business.

If you'd like me as your
partner, I would work with you.

It depends, Daniel. I
mean, it's only 20%.

For 10% equity, you're
willing to jump in here?

For these guys, yes. Okay.

I respect that. I think
that's a great idea.

[ Laughter ]

-I second that. -Well said.

I think that's a great idea.

You guys partner up
together, and we'll show you.

I truly believe that we
can accomplish anything

we put our minds to
together as a team.

Yeah. We can and we have.

And you're willing to
take a contingency deal?

As an entrepreneur,
there's no better deal

we could have gotten here
than a contingency deal.

So then I would say, yes,
you have the offer on the table.

Okay, all right. We'll take
it. We'll take it. We'll take it.

-We'll take it.
-Congratulations.

You are helping so many
young kids. Thank you so much.

-Yes, but we got to see
some -- -Congratulations, guys.

-Four-way hug. -Yeah,
come on, come on.

-Four-way hug? -Mm!

We got a new spark.

All: Bzzzzzzt!

Greiner: Congrats, guys.

Congratulations,
guys. Well done.

[ Both exhale ]

We did it. We got two.

Two! Yes!

When I think about
where I've started

and being sick in the
hospital so many times

and doubting my potential,

just to be here on "Shark
t*nk" and to get not one

but two Sharks --
Daniel and Barbara --

I realize that I've always
had this potential within.

Me and Dwayne,
we're unstoppable.

Narrator: In Season


Anthony Franco make a
deal with Kevin O'Leary

for his innovative office
products, M. C. Squares.



that's how many paper notes
are discarded every year.

A six-pack of M. C.
Squares can replace

over 12,000 paper sticky notes.

Narrator: Let's see
how he's doing now.

Franco: During the pandemic,
we saw a massive shift

on where people want to work.

It went from their cubicle
to their dining-room table,

and we were able to pivot
quickly to accommodate

those new working environments.

When I pitched to the
Sharks, we had done

$214,000 in sales.

Now, just one year from
striking a deal with Kevin,

M.C. Squares has done
over $3.5 million in sales.

We had to scale to a


We went from 4 to 20 employees

and have launched


We believe making an
impact is super important,

and we're doing our part.

We've kept 1.7 billion
sticky notes out of landfills,

planted over 40,000 trees,

and converted our factory
into entirely wind power.

Sustainability when you came
on "Shark t*nk" was just a rumor,

and now it's the whole deal.

O'Leary: I love companies
with mission. Why?

Because they connect
with consumers.

Consumers care
about sustainability.

They love missions that
actually help the planet.

They like things that help
their children's futures.

That's all happening
here with M. C. Squares.

You have to hand it to Anthony
because what he's done here

is built up a real company.

He has a mission. He has a team.

He's got manufacturing.
He's got distribution.

And you know what else
he has? Mr. Wonderful.

You know, I like
taking these things

and drawing just one
symbol, my favorite.

[ Laughing ] Money.

Ahhh!

As a dad, I want my
daughters to live in a world

that feels limitless to them,

and to see them watch
me make this journey

means they can do it, too.

I'm proud of the business
we've been able to create

and where we're headed,

the jobs we've
been able to create,

and hopefully the role model

that this little small
business can be.

♪♪

Narrator: Next up is a new
version of a tasty butter.

♪♪

♪♪

What's up, Sharks? I'm Ali.

I'm Eric. I'm Ari.

All: And we're Oat Haus. Whoo!

We're from the beautiful city
of Philadelphia, Pennsylvania,

and we're here seeking $375,000

in exchange for 5% of
our business, Oat Haus.

Sharks, are you sick of
dry, bland, boring granola

that just tastes okay?

Seriously, though, Sharks,
when was the last time

you looked in your pantry
and saw the same old spreads

that had been there since 1989?

Can you say... All: Boring!

Sharks, that's where we come in.

Say hello to Granola Butter,
the next generation of granola.

Booyah, baby! Booyah, baby!

What's Granola Butter, you ask?

It's the world's first
oat-based spread,

made with oats. Flax. Olive oil.

Maple syrup. Spices.

All: And it'll blow
your mind. Boom!

World-class, baby.

Let's go!

Bonar: Our granola butter
has the texture of a nut butter,

the tantalizing
taste of granola,

and best of all, it's
gluten-free, it's vegan.

All: And it's nut-free!

That means it's perfect for
all the vegans, the celiacs,

folks with allergies,
kids in nut-free schools.

Everybody's welcome
in the Oat Haus.

Come on!

Eat it on yogurt. On toast.

In a smoothie.

All: On a spoon!

This is the biggest innovation
the nut-butter category

has seen in years,

and we're on a rocket ship
going straight for the moon, baby.

So, Sharks, who's
ready to stir up a deal...

One oat at a time?

If this nut thing
doesn't work out,

you're gonna be dancers.

-Thank you. -It's fantastic.

So, can we open up
and try? We have --

Yeah, so Sharks,
in front of you,

you have our four core flavors.

You have our original with
cinnamon and cardamom.

You have our vanilla,

which tastes like
a sugar cookie.

You have our chocolate,

which reminds me
of brownie batter,

and our blueberry,
which is just like

my grandma's blueberry crumble.

At the Oat Haus, we want
to bring the play and fun

back into eating.

And as the chef,
my only rule is that

there's no wrong way
to eat granola butter.

Greiner: First of all,
when you open it,

the smell is fantastic.

-Thank you. -I really like that.

-Yeah. -It's just got a great,

like, kind of toasted,
caramelized-granola smell.

Yeah. And it tastes like
a peanut butter to me.

-Yeah. -Exactly.

-Is it supposed to? -Yeah.

Yeah, it's supposed to have
that texture of the nut butter.

And you kind of use it
the same way. Mmm!

But it has that
taste of granola.

It's almost soup-like.

I mean, is that gonna be a
pushback from consumers?

Yeah, so it's slightly
more spreadable

and drizzly than a
normal peanut butter.

Is that intentional, or is it because
of your ingredients? But not a lot.

Yeah, it's intentional.

I mean, most people like it
that way so they can drizzle it

on yogurt bowls and smoothies

and acai bowls
and stuff like that.

Guys, what is your relationship?

So, Eric and I are dating.

We've been dating
for about eight years,

so he's wifed up at this point.

What are you waiting for, Eric?

That's a good question.

And then Ari and Eric
are childhood friends.

How did you come
up with this idea?

Granola Butter
actually came out of

my eating-disorder recovery.

So I struggled with food and
my body for over a decade,

particularly anorexia,
binge eating and orthorexia...

My gosh. which is sort of like
eating healthy taken to the extreme.

So it's an obsession with
eating perfectly clean all the time.

So one day, I just
hit my rock bottom

and decided to
reach out for help,

found an incredible
therapist who really set me up

on this journey of
self-love and food freedom.

And I did what any millennial
would do in my situation,

which was I started
an Instagram account

to document my entire journey.

I bet you helped
a lot of people, Ali.

Yeah, thank you.

I'm excited to share my
story because I felt so alone

when I was going through it.

And so if one person
watching, you know,

hopefully I can help
them feel less alone and --

Now, Ali, was then
this granola butter...

Yeah. something you said
it came out of that journey?

-Definitely. Yeah. -Explain.

So, where the granola
butter comes in is, you know,

part of my recovery journey

was adding my fear
foods back into my diet.

So, for me, that was peanut
butter and almond butter,

because they're a little
more calorically dense,

and so I avoided them
for a really long time.

And as I started to
add them back in,

my gut couldn't handle all
of the nuts, unfortunately.

So I started to explore
some of the nut-free options.

But for me, personally,
they just didn't resonate

with me that much.

And so I was in
my tiny SF kitchen

with just, like, a
blender, some granola,

and I had this epiphany
to do an oat-based spread.

And I saw what oat milk
had done and just exploded,

and I was so shocked that no
one had done an oat-based spread.

So that's where
the idea was born.

And then we brought Ari in,

and he put the chef's
kiss final touches on it.

Can you break down
the numbers for me?

So, lifetime sales
of the business,

we've done $2.7 million.

-Cash money! -And...

Over what period of time?

So we launched in March of 2018.

The first year, we did
about $156,000 in sales.

The next year, we did $435,000.

Last year, we did
$1.2 million. Wow.

And that was with
a marketing spend

of less than 5% of our
gross revenue. Good for you.

-Wow! -That's a lot.

-Thank you. -That's great.

And we're looking
to close this year out

at about $2.5 million.

How much money
have you guys raised?

So we actually
bootstrapped the business

for the first two years.

We put about 100K
of our own money

and raised 600K on
a convertible note.

What valuation?

So we raised that at
partially on a $5 million cap

and partially on
a $6 million cap.

The first part of that was
our true friends and family,

and the second piece
of that was from founders

who've had successful
exits in the space.

Tara Bosch, who's the
founder of SmartSweets --

she was a solo
founder... Bonar: Yeah.

And ended up
selling her business

for over $300 million
in just four years.

We have Jake Kasson,
who bootstrapped his way

to one of the most successful
e-commerce businesses,

MVMT Watches, and
they also had an exit

for over $300 million.

So what is the cost structure?

What does it cost
you to make a jar?

Yeah, so it costs us on average

$3.25 to manufacture a jar.

We sell a jar for between
$9 and $12.95 on our site.

Ooh. To distributors,

we sell for a
little under $5.50.

And then that lands on shelves

between $8.99 and $11.99.

So when you walk into
a store, what is it about it,

as opposed to all the
competitors that are out there,

that's gonna make it stand out

and make people
want to sample it?

Why people go to our
products is really different

based on who the
consumer is. Yeah.

So if they have a
nut allergy or they're --

Cuban: Oh, no, I get that,
but there's a lot of them now.

And just being allergen-free
and gluten-free... Mm-hmm.

That's not enough
of a differentiation.

And I just don't see that one thing
that makes it stand out. Mm-hmm.

You know, you guys have
had great success so far.

I'm sure you'll continue.
But for those reasons, I'm out.

-Okay. Thanks, Mark.
-You're welcome.

I love the team. I
love the branding of it.

I think it's a great name.

But I have to say, I don't see

what I could do for
your business. Mm-hmm.

Unfortunately, I'm out.

-Thank you. -Yeah.

Every Shark does food
deals. I'm no different.

This category is very
competitive. Mm-hmm.

But I'm still stuck
on the consistency.

I don't like it. Okay.

You know, I gotta love a product

because my strategy is
always, I have your back.

I'm sorry, guys. I'm out.

Okay.

I think that it
is great-tasting.

Thank you. I think
your packaging is great.

I like the Granola Butter.

It's intuitive. It's
instantaneous.

I knew just what it was before
you explained what it was. Yeah.

And you've done a really
great job with flavor profiles.

I just don't see it as
a business for me.

I'm out.

Thank you. Thank you. Yep.

Yeah. Thank you so much.

You know, I like you guys.
I like your product a lot.

There was one thing that,
when you were presenting,

I couldn't get out of my system,

and it was when you started
mentioning your investors.

You said, "This one
had an exit for this,"

and, "This one
had an exit for this,"

and, "We have an exit for this."

And, you know,
when I started KIND,

it never crossed my
mind that there would be --

I didn't even know what
the terminology is, "the exit."

When you build something,

you should build it
because you love it,

not for the "exit."

And I think there's a
desire to surround yourself

with founders
that had exits. Mm.

That is what my
gut is telling me.

I will buy the product.
I'll buy it for my kids.

And I'll recommend that.

I'm sorry, but I'm out.

-Okay. Thank you. -Thank you.

-Good luck, guys. -Thank you.

-Good luck, guys.
-Congratulations.

♪♪

Bonar: You know, honestly,
it just adds fuel to the fire.

Know, I want the
Sharks to really look back

and realize, "sh**t. I
missed a huge opportunity,

and now, you know,
Out Haus is on the moon

and I'm down here
on planet Earth."

[ Laughs ]

Daniel, I'm so
happy you said that.

I always feel that way.

If you focus on an exit
even crossing your mind --

It's just that word
bothers me so much.

"An exit, an exit." What are
you talking about in the flavor?

This stuff tastes like [bleep]

I disagree with Mr. Wonderful.

You think that's okay?

-It's not that bad. -When
you show it that way.

[ Laughter ]

♪♪

♪♪

Narrator: Next in the
t*nk is a way to have fun,

but keep it classy.

That's the same suit
I wore at my wedding.

[ Chuckles ]

Hi, Sharks.

This is my husband,
Ryan Moynihan.

And this is my wife,
Kelly Moynihan.

We are from Delray
Beach, Florida. Woot-woot!

Today we are seeking $50,000

in exchange for 10%
equity in our company.

Sharks, we have made
saying "I do" a lot more fun.

What if I told you I had
a margarita in my hand

or two glasses of wine?

Would you believe me?

So many brides hide their drink

behind someone
else's back for pictures,

but now the bride...
And her entire tribe...

Can sip in true wedding style.

Cuban: Yeah! Yeah! [ Laughter ]

That's what's up
right there! Oh!

Our company is
called Flasky Flowers,

and it's exactly as it sounds --

a flask within its flowers.

What?!

So now when a bride...

Or a groom...

is walking down the aisle,

they can hold a
beautiful bouquet

with a 12-ounce
beverage of their choice

in the palm of their hand.

Literally in the palm
of their hand. Brilliant!

And it's simple. You pick it...

They can be genuine.
They can be artificial.

Heck, it could be lollipops!

You snip it...

To the size that
works best for you.

You stick it...
Anywhere you want,

because you really
can't mess it up.

Fill it... Obviously,

with the drink of your choice.

[ Laughter ]

You snap it...

Oh, my God.

And... You sip it.

To stay hydrated all day long.

[ Laughter ]

So now, Sharks,
the real question --

who wants to raise
their flasks with us...

Yeah, baby! Walk
down this aisle,

Both: and say "I do"?

-Whoa! -Oh, my God. So cute.

-Yes. -Where's the straw?

-Wow. -Keep spinning it.

You just put it in
your mouth, Lori.

Okay.

I have to understand
the genesis of this story.

[ Laughter ]

So, I'm a hairdresser by trade,

and I was doing
a lot of weddings,

and I watched all
the girls getting ready,

doing their hair, and drinking

and then out the door

with their flowers
in their hand.

And that was my moment. I
came home and I said to Ryan,

"I've got something.
We've gotta do this."

And I made a
prototype that night.

And I used my
baby's formula bottle,

a plastic martini glass.

-Kelly and Ryan...
-All right, so Kelly --

you're proof that
anybody that says

America is not the
greatest country in the world

with the most
creative entrepreneurs,

you prove them wrong.
Ryan: Thank you!

Greiner: Kelly, tell me -- let
me see the product by itself

so that we know, under the
flowers, what's happening.

Where does the wine or
the alcohol go or the water?

It goes underneath, and
it's completely sectioned off?

-Yes. -Yes.

So the flowers are not
touching your drink at all?

-No. -Are you
selling any of these?

Our sales are $21,000.

And how long have
you been selling them,

and what do they sell for?

-Yeah, how long?
-They sell for $20.

They cost me $1.77 to make.

Yeah!

And do you make them
in the USA, or where?

They are 100% made in the USA.

-That's very cool. -Kelly,
how do you sell them?

Is it all online? Just online.

So how much did it cost you

to make the mold
and the tooling?

What did you have
to invest in this?

So we actually sold our house...

-[ Gasps ] Wow! -Whoa.

So we could get the money.

He quit his job...

-Double whoa. -Wow.

So he could take
care of the kids

and I could focus on
this and make it a reality.

I put in $60,000.

Triple whoa.

And how many kids do you have?

We have seven.

-What?! -Seven?! -Seven?!

Oh, my God! No
wonder he quit his job!

Lubetzky: No wonder
she invented this.

So let me understand this.

So you come up with the idea,

you sell your house, you
both quit your jobs. [ Laughs ]

You're all in. Oh, my God.



You've sold how much to date?

-$21,000. -$21,000.

What are you living off of?

Well, I do hair.

We took off in 2019,
and it was awesome.

And then I was pregnant
with baby number seven,

and we didn't know,
but when she came out,

she needed
open-heart surgery, Aw.

So it took the wind
out of my sails.

But I said to him,
"January 2020,

I'm signing up for shows.
We're getting back into it."

And then COVID hit. [
Laughs ] Greiner: Oh.

And as we know, the biggest --

Yeah, the wedding
industry went nowhere, yeah.

And it just -- we're
in a place right now

where, with the
seven kids, we are...

skating by. [ Chuckles ]

What made you risk so much
with seven children to feed,

you quitting your
job, for this idea?

Why would you risk so much?

Risk it all, right? Because
I know it's possible.

I know. Yeah.

I know if I keep
moving forward with this,

there's a finish line,
and I'm gonna get to it.

And if it's a
million-dollar idea,

it's gonna buy me
a two-car garage.

It's gonna pay for my
kids' college education.

If you keep on moving,
you can't fall over, right?

How much inventory
do you have right now?

-1,500. -In today's world,

you can't just
go the extra mile.

You have to go
the extra marathon.

-Yes! -Yes! I like it.

-So that's what
you did. -I love it.

And you took a sh*t.
You took a chance.

Yeah. You got in here.

I think it's funny, novel, fun.

I think people will love it.

So I'm gonna give
you an offer. Oh, oh.

I will give you the
$50,000 for 20%.

Okay.

But wait, there's more.

Mark and I having
already done deals like this

with crazy-chicken ideas
and having made money,

have decided to go
together, all right?

So you get two Sharks
instead of just one.

Oh, and they're
tailor-made for this business.

Yeah. Well, I'm in
the wedding business.

Or we could even get
Lori to come in with us.

I'd love to put
Lori into this mix,

but we need at least each 10%.

You gotta realize that.

But we -- it was
gonna be 25/25, right?

So we can put in
another 25 to get it to 30.

Right? So 75 grand
that we'll invest

for 30% of the company.

We realize, since you're seven,

and you've got a
full-time job... Right.

You both have
full-time jobs. Yes.

Oh, this is gonna be
my full-time job, though.

Well, but we need to help
you get to that point first,

right, before you can
quit what you're doing,

because you're not in a
position to quit day one.

So for the three of us in there
at 25 grand each for 30%...

O'Leary: We're giving you
more money than you asked for.

We each get 10%.
You got three Sharks

on a very crazy-chicken idea.

May I make you a
stand-alone offer?

I can't believe this is
getting multiple offers.

I'll give you $50,000... What?!

For only 5% of the business,

but I want to choose two of
your children to take home.

Ahhhh!

[ Laughter ]

And I'll give you
that same offer.

You know what? You've got seven.

You're not gonna miss them.

Yeah, I will. I will. I will.

On a serious note, I'm not
gonna make you an offer.

You have great
offers here. I'm out.

Okay, well, thank you,
Barbara. Thank you.

So, what do you think, guys? Yes or no?
You shouldn't have to sell your children.

You guys, it doesn't
get better than this.

-No, it doesn't. -It
doesn't. It really doesn't.

I couldn't ask for
anything more than that.

I think it's amazing, and
I think we are so excited.

And 100% yes
to all three of you.

-Yeah! -Yes, yes!

-I say we drink to that. -Yes!

-Yes, drink to it! -Yeah!

-Oh, my goodness!
-That's fantastic.

-I can't believe it!
-Congratulations.

-Thank you! -Thank you.

I would have thought the chance
of this happening were zero.

Oh, my gosh. I
thought it was 100!

Oh, my gosh! Congratulations.

-Oh, my gosh. -Thank you.

-Thank you! Yes!
-Thank you so much!

This is incredible! Yes!

-Oh, my gosh!
-That's just sheer fun.

Well, we're outta
here. [ Laughs ]

-Thank you, guys. -Whoo-hoo!

-Whoo! -Ahhh!

-[ Laughs ] -Yes! We did it!

-Mwah! Yes! -Oh, my God!

♪♪

♪♪

Narrator: Next up
is a replacement

for millions of disposables.

♪♪

♪♪

Hello, Sharks.

My name is Dinesh Tadepalli,

co-founder of IncrEDIBLE Eats,

and I'm from Planet Earth.

I'm here to share 7% of
equity of our incredible company

for $500,000.

Sharks, across the world,

a staggering amount of
people are eating their food

with single-use
plastic utensils.

But why do we use
something just for a few minutes

if it's gonna take hundreds
of years to decompose?

Sharks, that's a
moment on the lips,

but a lifetime in a landfill.

That's why we came up with...

IncrEDIBLE cutlery,

the world's first
mass-manufacturable,

totally edible utensils. Edible!

-Oh. -Wow.

-Wow. -Well, Sharks...

-Wow. -...now you
may eat your spoon,

eat your straw,

eat your spork,

and even eat your chopsticks!

Need I say more?

My question is not who
wants to invest in us,

but who would like to
join us to save the planet

one straw or one
spoon at a time.

Huh. Okay, Sharks,
please try all our cutlery

and different flavors with
different types of food.

What are we eating here?

Who cares? I'm
gonna eat a spork.

Dinesh, how long does it
take for it to decompose?

Tadepalli: Yeah. So each spoon
stays firm for up to 20 minutes

in hot soups, like a hot food,

and about an hour
in an ice cream.

So they're pretty stable
enough for you to eat with it

and then eat it after.

-This is very good. -Thank you.

How many calories per chopstick?

Chopsticks are
about 15 calories.

I had one spoon here,
and it was fantastic.

It was like a spicy pizza...

-Yeah. -...flavored breadstick.

Corcoran: Tomato spicy. I would
actually want to buy and eat these...

-Uh-huh. -...not
even as the utensil.

Then this one was in ice
cream, and this one has...

-They have different
flavors. -...a vanilla flavor,

and it tastes like
a waffle cone.

So this is delicious.

Then we have here
-- what is this one?

-That's a straw. -And
what's the flavor?

It's actually flavorless.

So you are concerned
about the flavor of these,

in addition to
their functionality.

So our concept is
to keep them subtle,

because our initial
first year of our sales

is completely focused
on food service,

because that's where the
heaviest usage of plastic is,

and they wanted it to be very
subtle, not too overbearing,

because they don't want to
change the food you eat with.

Right. What is the
cost for you to make it,

and what are you selling it for?

About 20 cents to buy the spoon.

And our cost of
goods is 10 cents.

What cost
differential would it be

between very large
volume of plastic spoons

versus this edible spoon?

Yes, a plastic spoon trends
around 1 to 2 cents per spoon.

But our product has a capability

to make additional
profits to the company.

Let's say, for example, a
very large ice cream chain

ordered 100 million spoons.

If they upsell it to the
consumer for 5 cents,

they make $5 million profit,
and we also make profits.

But what would it cost
me if I didn't want to upsell?

As a large ice cream company,
I bought 100 million of these.

What's my delta? What's
my difference in price?

So we started with 35 cents.

We already brought
it down to 20 cents.

We're gonna bring
it down to 15 cents.

-That's pricey, I think. -But
have you sold anything yet?

I sold 1.2 million spoons
so far, 2 to 2 1/2 years.

What's that in dollars?

$170,000.

That's it?

And where are you selling them?

Yeah, so 2019, we're just
completely B2B food service,

because that's where
most of the plastic is.

And we were going great.
We had amazing traction.

And then the COVID hit,

and that was given
opportunity for us,

because we could explore
B2C and direct to consumer.

I spent two weekends,
read six books,

designed my own packaging,
designed my own website.

You don't know when
you see this that it is edible.

Nobody knows
that till you tell them,

so there's a fair
amount of education

that's gonna have to happen.

And going to the
side of scale here,

when you talked about


and I'm the ice
cream, whatever it is,

the B2B play,
business-to-business,

I'm gonna have to ask myself,

"Do I want to pay 2
cents for the plastic,

or do I want to pay


and then educate everybody

that not only can
you eat the ice cream,

you can eat the spoon that
you scooped it with. Ice cream.

There's a lot of work
there. It's cheaper.

Well, wait a minute.

If you were creative,
you would know

that you can impression an imprint
into the spoon... Cuban: Right.

And into every piece
that says, "Eat me."

But do I want to
pay 20 times more,

whether it has that sign
"Eat me" on it or not?

Dinesh, you seem so
excited to be here today.

[ Chuckles ] Yeah. So
this is my dream to be here.

I'm an immigrant from
India, and I still work,

and I've been hustling this
from like 7:00 p. m. to 2:00 a. m.

Every single day for the
past two and half years.

And I feel so proud that
I reduced or replaced

one million plastic
utensils, and...

-Mm-hmm. -You should be.

And I found the purpose of
my life. Yeah, you should be.

I found the purpose of my life.
That's what makes me more happy.

There's 100 million
plastic utensils

disposed of every single day.

And with our patent and IP,

our company's gonna
change the planet

and the way
people eat their food.

Okay, let's go back to money,

'cause that's a serious
chunk of change.

I'd really love to
know your background.

I love all this stuff about,
you know, how wonderful it is,

but I want to find out if
I can make any money.

You will love it more
after learning about me.

Money, money, money, money.

-Let's quit on Kevin. -I
will come back to money.

Kevin, it's very important. I
know money is most valuable.

So, okay, so Lori,
I was born in India,

and my dad taught me the
value of content and happiness,

and he said, "Happiness
is here, not here."

So I came to the U.
S. For my master's,

and then I graduated.

I started working at a
technology company

in the Bay Area.

-Your master's was in?
-Electrical engineering.

I decided I have
to take care of this,

because my kid's
future is at stake.

-Right. -It's not about me.

Like, yes, money is nice.
Money is good to have.

But imagine one ice cream chain

or one restaurant chain

changing this to edible
cutlery and making money.

It's gonna revolutionize
the entire world.

Your enthusiasm is
so absolutely delicious,

but I feel that you're blinded
by your own enthusiasm.

I think you're asking
a lot of a restaurant

to go into the spoon-selling
business, as well,

and to take their maybe 1 cent

or even half-cent
cost of their spoon

and up it to 20 cents a spoon.

And so I think you have
a lot of challenges there

that are against the
norm and super-creative,

which I commend you for.

But I'm not sure they're
practical enough to fly.

And so for those
reasons, I'm out.

Dinesh, I disagree with
Barbara on that point,

and let me tell you why.

That passion is exactly

what's gonna make you succeed.

The reason why
I'm struggling is,

you know, you have not proven
that this really cool concept

is scalable to the point
that Mr. Wonderful says.

But you've imputed a valuation

that's proven
that it's scalable.

The gap between your vision

and your expectations from
us as investors is way too,

way, way, way too high.

I have to valuate
it not as a dream,

but as a business with
$170,000 in lifetime sales.

It's not worth $7.1 million.

So, Daniel, I have not
spent anything on marketing.

I have a huge capability
of making it viral

because it's such
interesting product.

I just spent two years to make
the best product that there is.

I think you're gonna win,

but I'm not gonna come in
as an investor at this valuation.

I'm sorry, but I'm out.

Thank you. Thank you for time.

I really wish you
can think again.

I mean, to me,
the idea is brilliant,

and I love engineers,

and I'm sure your journey
got you to where you are

'cause you're passionate.
I believe all that.

But I am, like Daniel,

choking on this
$7.1 million valuation.

I like you, but there's
no way on Earth

I'm giving you half a
million dollars for 7%.

You said you are from
the planet Earth. So am I.

Your deal's from
the planet Zootron.

That's the problem.
Makes no sense.

I'll give you the $500,000.

I want 35% of the company.

That's about the right deal.

Thanks for the offer, Kevin.

Dinesh, you're
thinking too small.

You've got this
game-changer-type product

that made me ask myself,
"Why didn't I think of that?"

♪♪

Narrator: Two Sharks are out.

Dinesh has an offer
on the table from Kevin

for his edible utensil
company, IncrEDIBLE Eats.

And Mark also seems interested.

Dinesh, you're
thinking too small.

You've got this
game-changer-type product

that made me ask myself,
"Why didn't I think of that?"

Because it makes perfect sense.

The brilliance of what you're
doing beyond the product

is that every single online

and in-real-world
brick-and-mortar company

is always looking for upsells

that are relevant to the product
that's being sold underneath it.

So if you buy a salad,
if you buy ice cream,

if you buy whatever
at a grocery store,

you're right next to
the prepackaged foods.

And there it is -- want
to save the planet?

Put a barcode on it
and sell it individually.

You just upsell it, right?

So I'm gonna make you an offer,

but it's gonna take
a lot of my time.

There's a lot of expense
involved from my end, right?

So I'll offer you the $500,000,

but I want 20%.



I like my offer better.

-And I have an offer for you.
-That's a super-good deal.

Mark is saying you're
not seeing it big enough.

I think Mark's not
seeing it big enough.

I see that it could
be in grocery.

I see it could be upsell.

I think it's a fantastic
product as it is.

So I see it in
grocery everywhere

right next to the
plastic utensils,

but with revamped
packaging that just screams,

"I'm delicious. Eat
me. Save the planet."

But I also think that you
could be doing food service.

I think you can be doing it
all. You just need the right...

I'm not saying don't
do one or the other.

I'm just saying your
path of least resistance.

The right Shark in which to help
you. Is anybody else doing this?

-Hello. -Sorry.

You just need the right
Shark in which to help you

blitz the market.

And I'm that Shark.

So here's what
I'm gonna offer you.

I'm gonna give you
$500,000 for 15%.

-15%? 1-5? -15.

So you now have
three offers to consider.

-Wow. -What a lucky guy.

That's quite rare in Shark t*nk.

So you've done a good
job pitching. Thank you.

You've got Mark at 20%,
which is a discount offer.

You've got the full-value
Mr. Wonderful offer at 35%.

And then you've got Lori at 15%.

What do you want to do?

Dinesh, you are so deliciously
adorable, and -- What do you want to do?

"Deliciously adorable."

I'm going to go ahead
and come back in.

Corcoran: Oh, my gosh. I didn't
want to offend you with a lowball offer.

Oh, it's a feeding frenzy.

But I will do it for 25%.

Wow.

What do you want to do?

[ Breathes sharply ]

Am I allowed to counter?

-Counter? -Sure. -Of course.

[ Laughing ] You can
do whatever you want.

You just don't
know what we'll do.

Would any one of you
do 12% for $500,000?

[ Chuckles ]

No.

-You need a sh*t.
-Dinesh. Dinesh.

It's not that you're not driven.

You're all -- you've
got all the elements

of a great entrepreneur.

But you came in with
a preset number, right,

which tells me you're
not really listening to us.

When someone comes in
with a hard-set threshold,

a limit, that tells me

that they're not truly
going to value us.

I'm out.

You're gonna have
to make a decision.

You've got three offers still.

What do you want to do?
Now's the time. Let's hear it.

Um...

Dinesh, I gave you the closest.

I'm wondering why
you're not taking it.

[ Sighs ] Uh...

So, Lori, you have a deal.

-Ah! Good. Yay! -Wow.

So thank you. Thank you so much.

Thank you so much.
Congrats. I love it.

Thank you. It's so
smart, and it's delicious.

Thank you. Thanks.
Congratulations.

-You're incredible.
-Congratulations.

Ooh!

This is a dream
come true for me.

And now with Lori, it's
gonna be changing the planet.

At one point in my life
when I didn't have a job,

I held a sign at the
entrance of the freeway

asking for a job.

And 10 years forward,
I have two things now --

a job and a successful business.

♪♪

♪♪

♪♪