Narrator: Tonight on "Shark Tank"...
Whoa!
Hi, Sharks.
Whoa!
[ Gags ]
We're looking for a strategic partner.
But what's the plan?
I'm so nervous. Greiner: Okay, you know what?
Take a breath. Take a breath. I'm so nervous.
[ Gasps ]
[ Laughter ]
I am the Shark for this deal.
That's the ultimate flex.
Well, then what are we talking about here, Doc?
[ Cheering ]
O'Leary: We've never seen this on "Shark Tank."
Never. And we've been doing this
for 15 years.
Cuban: That's a big ass dog.
Herjavec: Did not expect that to happen.
Narrator: First into the Tank is a business seeking to lend
a helping hand to those in need.
Hi, Sharks.
I'm Dr. Aadeel Akhtar from San Diego, California.
I'm here seeking $1 million for 2% equity in my company Psyonic,
where we develop advanced bionic limbs that are accessible for
both humans and robots.
When I was 7 years old,
I met someone missing a limb for the first time.
She was my age, living in poverty in Pakistan,
where I was visiting, missing her right leg and using
a tree branch as a crutch.
That's what inspired me to go into this field,
and that's why I developed the Ability Hand.
It's the fastest bionic hand on the market.
It's the first to provide touch feedback to users,
and you can control it with your muscles,
like Sergeant Anderson over there.
It's also water resistant and USB-C rechargeable.
You can even charge your phone from your hand,
a superhuman ability.
The Ability Hand has made a huge difference
in the lives of our users.
For example, Sergeant Anderson can actually hold and feel his
daughter's hand again, something he couldn't do
with any other prosthetic before.
But he can also take Psyonic's Ability Hand to the extreme.
[ Cheering ]
Wow!
That was so cool!
So the Ability Hand isn't just for prosthetics.
It's also being used on robots around the world,
including at major tech companies
and even on missions into space.
So, Sharks, who wants to join our bionic revolution
and change the world one hand at a time?
I want to actually introduce you to Sergeant Garrett Anderson.
Hi, Sharks. I'm retired Sergeant Garrett Anderson.
I lost my arm in Iraq in 2005 from
an improvised explosive device.
I've used a lot of prosthetics in my
18 years of being an amputee.
They're too heavy, too slow, not functional and not durable.
So the Psyonic hand has really changed my life
and given me a new way to interact with society.
Thanks for your service. Thank you. John: Thank you.
Tell us about you and how you came up with this.
Absolutely. So after I had met that
7-year-old girl in Pakistan, I ended up getting
a bachelor's degree in biology from
Loyola University Chicago,
a master's degree in computer science.
From there, I got another master's in
Electrical and computer engineering,
PhD in neuroscience, and then I left medical school
because this was a bit more fun. Wow.
When I was a graduate student,
we started 3-D printing these hands.
What happens next? You raise a lot of money.
[ Laughs ] Yeah. How much have you raised?
So we've raised $3.6 million so far.
Okay. And we're actually
in the middle of a StartEngine crowdfunding
campaign where we raised $2.2 million.
What money have you raised in total,
and at what valuation?
Well, we raised $1.4 million at the $12 million valuation.
And then we raised $2.2 million so far on StartEngine
at the $50 million --
Over what period of time?
Just almost a year now.
A whole year, you've only been able to raise $2.2?
Well, we also get money from grants, as well.
How much?
We've raised $2.4 million in grant funding.
And then we should be getting another $2.7 million
next year from the DoD.
That just doesn't make any sense to me that you would spend
all that time on StartEngine just to raise $2.2 million
when given the impact, if what you're saying
is accurate, there's a thousand people
who would write that check.
There are several reasons why we decided to go
to the equity crowdfunding route.
So one of them is half of our sales actually come from
social media. From social media?
Social media.
You said sales? So you're actually selling?
We are actually selling this.
And so this is an FDA registered medical device.
We got it covered by Medicare in the US.
Oh, wow, okay. Wow.
Put that in perspective, before this hand came along,
only 10% of patients in the US could afford it.
How much does it cost, doctor?
Um, this costs $15,500.
What's it cost you to make it?
It costs us $1,800 to make it.
How many patients do you now have?
We have over 100 patients.
But our biggest problem is that we've got more demand
than we can produce, and so we want to start
ramping up our production so we can get these --
How many are you producing a year?
Um, so right now, we're actually about
a capacity of like 100 a year.
Why is your capacity just 100?
By next year, we're looking at potentially
doing at least 500 hands per year and then
a thousand and more.
Why aren't the doctors who specialize in
people in these circumstances, the VA,
why aren't they just all over you, just saying,
"We'll take all you can make"?
Yeah, they have been taking all that we can make.
And so that's why we're trying to build
our production capacity.
How much are you going to have to invest to
increase the manufacturing capacity to get
to a thousand units a year?
To get to a thousand units a year?
Um, up to 5 million in this round.
Doctor, did you ever pitch
equity guys that only specialize in health care?
What we've seen in that space is that
it's either one or the other.
They like either go into robotics purely
or either go into the health care field.
But when you pitch the equity guys
who are into robotics...
Yeah. ...what was the feedback?
Why didn't they invest?
Um, so some of them didn't care for
the mission for humans, right?
They didn't care that --
I just cannot see that at all
for somebody who's in the health care space.
I mean, look, if you would have come to me and said,
"I just need $5 million, we can dominate this industry."
And I'm saying, "Okay, let's just negotiate
because $5 million is a lot of money."
Sure. But to try to
change people's lives like that --
In the scope of things, it's not.
Scope of things aside, this just does not add up to me.
So for those reasons, I'm out.
Understood.
Herjavec: Yeah, Dr. Aadeel, when I was on
"Dancing With the Stars", a good friend of mine
to this day, Noah Galloway, you know, great veteran,
uh, he lost his arm and his leg.
And I know the pain of this.
It's not just as simple as simply attaching it.
Absolutely.
There's a lot of infections, a lot of issues with it.
How do I attach this to the limb?
Yeah, absolutely. So this is the hand right over here.
Um, and so --
So I need that, the doctor --
Exactly. The clinician, the prosthetist
makes the socket, and then they attach our hand
to it with all of our electronics.
So how would they -- Custom fit it.
So that arm --
So you're making just the hand?
We make just the hand. Exactly.
I'm very bullish on this space.
I think it's going to change people's lives.
But that knowledge makes me skeptical,
that with a few million dollars,
you are what you are.
Perhaps it's my own skepticism.
I wish you all the best, and incredible mission,
but I'm out.
Thank you, Robert.
Doctor, I just want to clean up your presentation
a bit with some numbers.
First of all, lifetime sales.
Yeah, so lifetime sales is about $2 million.
Okay. And what were the sales last year?
So it was just over $1 million.
And you made money on that?
Yes. How much?
Uh, $100,000. Okay.
This year, what do you think you'll do in sales?
So we'll probably be around $200,000 at least.
My issue with this deal is I don't get out of bed
for 2% of anything, because what I'm worried about
is the more successful you are, the more you have to raise,
the more I get diluted.
I know what the answer is going to be.
I want 10% for a million bucks.
Uh, yeah, I mean, unfortunately that's going to be too high.
I mean, like, I got to wet my beak here.
Are there other offers here, too?
Greiner: Daymond and I love it.
We believe in it. We believe in you.
So we'd like to give you an offer.
Narrator: Two Sharks are out.
Dr. Akhtar has an offer from Kevin
for his robotic hand company Psyonic.
But Lori and Daymond are also interested.
We'd like to give you an offer.
We'd like to do $1 million for 6%,
but you get both Sharks. Both of us, yeah.
Got it.
But we don't want to be diluted.
That could be problematic.
So what do you think of that? Or do you have a counter?
So yeah -- So we want to protect our valuation, right?
Because we want to protect our investors.
So what if it were $1 million at 2% shares.
But then we can throw in advisory shares.
And so let's say an additional 1%
for each of you. Would that work?
So 4%? 4%. Yes.
No.
We can get into the details of how we structure it.
But the one important detail is...
Right. ...we don't want to be diluted.
Daymond, to be clear, you're asking for preference shares,
and for viewers at home, the problem with
preference shares is that, as more money is raised,
your percent is protected in perpetuity,
which means so you're never going to get diluted
while everyone else is.
You sit on the top of the stack.
But we bring an incredible amount of value.
O'Leary: But you understand
the problem for your shareholders. I understand.
You're going to have to disclose that to them.
We'd be willing to do the 2% with the 2% advisory
but non-diluted.
Which really isn't bad, considering what you get.
That's true. I mean -- but I mean,
we're going to be turning this into a $1 billion company.
That's why we're giving you an offer.
And we'll be helping you do that a lot faster.
Um...
Well, it is the Shark Tank.
You knew you were going to run into this.
You are in a difficult situation, doctor,
with this idea of putting preference above others.
My offer is $1 million for 10%.
But they're just standard common shares,
and I expect to have the option to invest
in the future more if I wish, but I will be diluted.
Anyway, you have two offers on the table.
I have to agree with Kevin on this one, where I can't --
I can't do the non-dilutive shares.
No way you can do that.
So what if we were at the 6%?
Yeah, I mean, then that's just too much.
That's just too much equity that --
Well, then what are we talking about here, Doc?
The offer that I'd given, the $1 million for 2%,
and then an extra 2% in advisory shares, that is dilutive.
So basically, Dr. Aadeel,
your counter is $1 million for 4%.
4%.
What do you guys want to do?
Why don't we split the baby?
[ Laughs ]
Go to 5% total.
Go to 5%, and you've got a deal.
I would do that deal at 5%.
No. Also.
Ooh. No, no.
Wow.
We'll do the deal together.
I got two Sharks. That's right.
And two is better than that one.
No, I am the Shark for this deal.
Would you want to go in with Daymond and Lori?
Sure, I would, of course.
Um...
But here is my proposal. Okay.
If Kevin wants to come in with Lori and I,
we would all get two and a half shares.
Seven and a half, right?
It's two and a half, two and a half, two and a half.
You know that would blow you up huge on StartEngine.
Yeah, deal. That's a big deal.
Um, but then I'm giving away more equity
for the same amount of money.
But you're getting three Sharks.
I personally think on this deal, the more Sharks,
the better in terms of getting the story out.
So seven and a half, according to Daymond, three Sharks.
You'll have to take a few hundred basis points
out of your own stash to do it.
And these are common shares.
Sure. I mean, I would do it
for six because I think there's symmetry to that.
If he said six, would you do the deal.
For all three of us? Yeah.
Daymond, would you do it?
I mean, I don't want -- Take 200 basis points.
I'll agree with whatever you want.
Alright. I would do it.
Herjavec: $1 million for 6%.
You better take it because you can see
they can't agree on anything.
[ Laughter ]
Dr. Aadeel, what will you do?
I think we've got a deal.
Whoo!
Alright, there we go.
I'm confused. Do you give us the money?
[ Laughter ]
Well, you'll be making money, right?
You're not shaking me, my hand with that.
There you go.
Absolutely fantastic presentation.
Thank you.
Good job.
Thanks for your service, sir.
Yeah! Yeah!
Let's do it. Let's do it. Boom!
[ Laughs ]
This is great.
Akhtar: Making this deal with the Sharks is going to be huge
in terms of getting our production capacity up there
and really helping all the people
around the world that could use this hand,
and that's what I'm most excited about.
Narrator: In season 14, Jeremy and Kaitlyn Carlson
made a deal with Barbara Corcoran
for their European inspired ice cream treat, Crispy Cones.
I am the person that knows more about franchise
and food than anybody here. Jeremy: Totally.
Barbara, we'll take your offer. Okay.
Narrator: Let's see what they're up to now.
Crispy Cones is a traditional cinnamon sugar dough cone
that we grill rotisserie style
fresh to order right in front of the guest.
Coming into the Tank, we were looking for a Shark
who specialized in franchising.
Partnering with Barbara Corcoran gave us that expertise.
Within 24 hours of airing,
we had hundreds of franchise applications.
In fact, we had a franchise location
from every single state in the country.
The franchisees are the key to this whole operation.
The happier they are, the better they do, the better you do.
I knew it was a great product, but what I didn't know
is I had the makings of a great franchise.
I think these self-serving kiosks
are the best thing you did the first year in business,
and look what it's doing for you.
Crispy Cones became so popular that they needed a solution
to how many people who wanted them and wanted them fast.
So they used my money to launch the self-serve kiosk
so no customers would ever wait in line.
Hello, everybody!
Thank you so much for coming to the grand opening
of our Crispy Cones Tempe location.
Today, Crispy Cones has sold 18 locations in Arizona,
Utah, Idaho, Florida, and Texas.
Jeremy: Our new technology gathers data
which provides us valuable feedback
on store cleanliness, store experience, and quality.
It has increased our overall revenues 60%.
In the five years before "Shark Tank",
we were just under $500,000 in sales.
Kaitlyn: It's been seven months since "Shark Tank",
and we now have surpassed over $2 million in lifetime sales.
Jeremy: I have been watching "Shark Tank"
since middle school.
I basically grew up with Barbara,
watching her on television,
and never once in my life did I think
that she would become a partner in my business.
Whoo!
We were on top of the world
after we had left "Shark Tank."
Kaitlyn: That moment was one of the best
moments of our lives.
That is until a few months later
when we welcomed our first baby girl into the world, Macy.
Hey, how are you, Macy?
Our advice to other entrepreneurs is to dream big,
work like crazy for your goals, and never give up.
♪♪
Herjavec: Oh, this is dessert, Lori.
I think we will be chowing down.
Narrator: Next in the Tank is a professionally trained chef
with a line of surprisingly decadent desserts.
♪♪
Hi, Sharks. My name is Alejandra.
And I'm Rahmi.
We're from San Francisco, California.
We're seeking $100,000 investment
in exchange for 20% equity in our business.
Sharks, we create delicious, healthy,
protein rich desserts like this petit gateau,
concocted with ingredients like pasteurized chicken breast.
Greiner: What? Alright.
And even this beautifully mouthwatering
crafted cake made with wild elk,
fermented goat milk, and organic berries.
Was not expecting that.
Not at all.
Even nature inspired pastries
like this rose shaped dessert made with
wild antelope heart. Heart?
And organic beetroot cream.
Oh.
Sharks -- Don't take our word for it
that these are absolutely delicious.
You're gonna have to take it up with our head chef.
[ Whistles ] Achilles.
Greiner: Oh.
Come on, big guy.
[ Sharks "Aww"ing ]
Herjavec: It's a mastiff.
John: Oh, my God.
Hello. Hello.
That's a big ass dog.
Good job, buddy.
Oh, he's so cute.
I did not see that coming.
Yeah, I didn't at all.
Rahmi: Sharks, we've always felt our dogs
are an extension of our family,
and celebrating their birthdays and special occasions
is something we love to do.
That's why we craft this line of cakes
and pastries specifically dedicated
to our animal family members,
inspired by my decades of culinary training.
That's right. I'm a professionally trained chef.
And I always knew my prestigious Le Cordon Bleu degree
would go to good use.
Not only do we offer incredible pastries
for our pups,
but Dogue hosts the world's first tasting menu
where your pup is the star guest.
That's right, Sharks.
Every Sunday at our Bon Appetit Cafe,
we offer a prefixed... Aw.
...multi-course tasting menu
with dishes made with
wild Moroccan sardines and cuttlefish.
Ew.
Wait, there's more.
Not only do we offer incredible pastries,
but we also offer prepackaged meals
where all of their food is made with fresh, whole foods.
Sharks, We've always loved animals,
and we decided to turn that love into a business.
So who wants to join our pack?
Bon appetit! Bon appetit!
Greiner: Oh, my gosh. Herjavec: Wow.
Wow. In front of you
you have some of our core offerings.
I know we're swimming with the Sharks today,
but if you feel like running with the wolves,
you can feel free to take a bite if you're brave enough.
Well, like, really, I'm kind of afraid.
[ Laughter ]
[ Gags ]
Are we supposed to eat it?
No, no, I said, if you're brave enough.
Greiner: Oh, we're really not.
Cuban: Daymond is.
It was disgusting?
Daymond, why are you eating it?
Alejandra: They're all human grade ingredients, too.
It looked good the way he was eating it, man.
[ Laughs ]
So it's a retail establishment?
So we've got a retail store in San Francisco,
a brick and mortar location. How many square feet?
So it's a little bit over 1,600 feet.
Ow, wow. Okay. It's your only location?
It's our only location. Herjavec: How long have you been there?
What do you gross a month? What do you gross a month?
So we've been there for just about a year,
and we're just starting to get up to around 20K a month.
Okay. You're profitable on a monthly basis?
We're basically breaking even.
So you're asking us to invest in a retail location
because you're not selling these any other way, right?
Essentially what we do is we manufacture dog food, right?
The core of our business, the core of our sales,
comes from prepackaged fresh food for dogs.
What I'm asking you to invest in
is helping us bring this to a much broader reach.
Our goals are to get our pastries
all over the country, basically.
How are you going to do that?
That's why we're here, guys.
[ Laughter ]
That's what we need from you.
Is all the dog food like this?
No. Absolutely not. Okay.
What is the --
The prepackaged meals look like slop.
With the bag of dog food,
what do you sell it for, how much does it cost?
So it's going to cost me, let's say,
about $2 per eight ounce pack.
To make it? Right.
And then you sell it for how much?
I'm going to sell them for about $8 or so, roughly.
Okay. Now let's go to an individual pastry.
What does it cost you to make it?
What do you sell it for? So that white one
in front of you, I think it's on your top right,
costs me about 85 cents to make. I sell it for $15.
What?! So higher margins --
$15?
So wait. Why would anybody --
For the grams.
For the gram. $15.
For the gram. On this.
So this is our secret sauce.
This is really what captures attention.
We know these days it's all about capturing attention,
getting eyes on what you do.
And it's beautiful, by the way.
Thank you. Herjavec: So the businesses
I've got an incredible Instagram worthy hook,
I come in, hey, by the way, buy our dog food.
How do you scale that then?
So the idea of scale is where we come to you guys, right?
We know what we're good at, and we see where we're lacking.
What percentage of your overall sales
are these specialty products?
Last month, we sold about 20 grand.
We made about 11 grand worth of dog food sales.
Okay. Right.
The rest were ancillary products,
including these pastries.
O'Leary: And that's where I come in and say,
"Give me --" So you're almost 50/50.
Let me buy some fresh dog food from you.
Not in a pastry form, just high quality food.
Right. How long does it last?
So if you keep it in the freezer, they're vacuum packed.
They last well over a year.
Oh they're frozen. They're frozen. Yeah.
The challenge you have is shipping refrigerated goods
is a problem, right? Right.
It's expensive.
So the problem for me is,
is I don't see this as something that is really scalable.
I see it as a great little business for you,
but I don't see it as something
that you'll ship nationwide and blow up.
I think it's too difficult and too costly.
And for all those reasons, I wish you very good luck.
Alejandra: Thank you so much. But I'm out.
Cuban: Guys, I agree with Lori. I think she nailed it.
It's a great business for you guys.
You love it, obviously, but it's going to be
really, really hard to scale to return any money
at all to an investor.
So for those reasons, I'm out.
Thank you, Mark. Thank you.
We appreciate your words. Thank you.
This side hustle with the pastries is absolutely crazy
and fantastic for social, I get it.
We've never seen this on "Shark Tank."
Never. And we've been doing this
for 15 years. Right.
So you have a hook here and a big one.
And America's going to see this and go nuts,
but you can't get it to them.
That's the problem with the deal.
Look, I like you guys, but this is not an investment for me.
I'm out. Thank you, Kevin.
Thank you.
You know, um, I think this is brilliant,
but there are the challenges, right?
It's refrigerated goods.
You will not be able to get space in the traditional stores.
A lot of complications here.
But I think that you're going to do good
if you just focus on this direct to consumer just by yourself.
Great business. I'm out.
Thank you. Appreciate it. Thank you.
Herjavec: I know the pet space very well.
Had one of my best exits out of it, one of the fastest.
But you know when you come into the Shark Tank,
you've got to have a game plan.
And what I heard you say is, "We don't know how to ship it."
We don't know whether we should do retail.
We don't know any of that. Help us."
But you got to have a game plan.
You got to come up here with some way
you're going to scale, and you stood here --
We're looking for a strategic partner
because we could raise the money that we're asking for
from friends and family. Like we --
But what's the plan? What's the plan?
We need help with getting the whole
packaging to do it right.
We don't want to just jump in to start shipping.
We want to do it correctly from the get go in order
to just save the integrity of the product.
I guess as an investor,
I want to know what the plan is, like Kevin said.
It's going to air.
Everybody in America is going to say, "I want one!"
Robert -- They're going to go to your website,
and you know what you're going to say?
"I can't ship it to you."
Look, guys, if you came up with an answer,
not the perfect answer, any answer,
I would have loved to get on board.
I love animals, but you don't have those answers today.
I'm out. Thank you, Robert.
But I'll buy the dog.
No, no, he's not for sale. No.
Never. Good luck, you guys.
Thank you so much. Thanks for your time, guys.
Really appreciate it.
Good job. Thank you so much.
Alejandra: Achilles, ready?
Come on, let's go, let's go.
Come on.
Let's go. Let's go, big guy.
It's really exciting to be able to come on to
a stage like this and hear such invaluable insight
from the Sharks, to be able to hear
their direction for us, to give their opinions,
honestly, is worth more than anything
we could put a price on.
Hello, "Shark Tank" fans.
We'd like to alert you.
There are a lot of deceptive ads out there
claiming to be "Shark Tank" products,
and in many cases, they are not.
To be sure, go to abc.com
to check out the full list of "Shark Tank" businesses.
If a business is not listed,
it is not a "Shark Tank" business.
Please be aware and stay safe out there.
♪♪
Narrator: Next in the Tank is a kinder way
to deal with a pesky problem.
♪♪
Hey, Sharks! I'm Justin from Orange County, California,
seeking $50,000 for 10% of my company.
Imagine you're hosting a dinner party,
and right as you're about to serve the food,
an unexpected guest arrives.
Go ahead, Sharks, lift your plate covers and dig in.
Oh.
[ Gasps ]
[ Laughter ]
That's right. Bugs.
Greiner: Oh, my God.
That scared the crap out of me.
Now, Mr. Wonderful might be all about crushing cockroaches,
but what about those of us who'd rather not take a life?
That's where Cup-a-Bug comes in.
We've made it...
uh, more convenient to catch a bug than to kill it.
There's -- there's --
That's okay. Start over.
Cuban: That's okay. You made it more convenient
to capture a bug than to kill it.
Than to kill it. Huang: That's right.
Using it is super simple.
Just place the cup over the bug and pull the handle back.
This closes the lid,
and now your bug is ready to be released back into nature.
Cuban: Good for you.
Or on your neighbor's doorstep.
It's up to you.
[ Laughter ]
Cup-a-Bug features, a long arm,
and a tilt mechanism that works like your wrist,
allowing you to catch bugs from floor to ceiling.
Oh, God!
We even included a brush
for getting bugs from out of corners.
Think of Cup-a-Bug as an extension of your wrist.
Um...
You're good. Greiner: It's okay.
You know what? Take a breath. Take a breath.
I'm so nervous. And then think of it again.
Whether it's catching bugs from off your ceiling
or catching cockroaches from your kitchen floor,
Cup-a-Bug is the hero we've all been waiting for.
So, Sharks, who's ready to see what all the buzz is about
and infest in Cup-a-Bug?
Good job, Justin. Good job.
Yeah! Thank you, thank you.
In my household, I am the bug guy.
My wife, my kids... Yeah, women freak.
...will not going anywhere near a bug,
so it's like, "Dad!"
Exactly. You know, from the whole house.
So, how much does this cost?
We retail it for $40, including shipping.
What does it cost you to make?
It cost us to make, uh, $10 landed
and then about $7 to make.
Herjavec: That's not bad.
Justin, do you have any sales?
We do. Yeah, we did a Kickstarter
that did about 800 units.
So that was $28,000 roughly.
Not bad. Yeah.
And when was that? What month?
That was last year, um, in, uh, March.
And then this year, we started selling our first
production run in beginning of June.
So it's been a little bit over three months,
and we've done about 1,200 units in sales.
What is that in dollars?
That's $48,000, give or take.
Yeah. And that's all been organic.
Justin, how did you -- are you a bug guy?
Is this something you came up with for fun?
Or a bug hater?
Yeah. Tell us the story.
I would be more on the bug sympathizer side.
Um, I studied mechanical engineering,
and then afterwards, I went to work for my dad,
and we designed electric motors.
I decided that I wanted to follow in his footsteps
and become my own entrepreneur.
So every night, I would just keep studying engineering
through free online courseware.
My hero, my hero. I know you guys
are lifelong learners, too.
I'm the same way.
And eventually, I was able to get the skills
to design something like Cup-a-Bug.
I'm just terrified of bugs, even from a child.
I get it. And as I grew up,
I just started to feel bad, you know, squishing them.
I feel bad when I squish a bug, too.
That could be an ancestor of mine,
for all I know, coming.
Probably is.
I don't know if I feel bad.
What other things do you design?
Um, yeah, I've done a lot of board game accessories.
I did like planters, certain desk organizers,
basically anything that's under like the nerd umbrella.
You're a serial inventor. I like this guy.
Justin, is this one of them? What is this?
No, that's just something I specifically designed
for you guys today. You designed this?
Herjavec: You designed this?
Yeah. Greiner: It's a bug-a-pult?
That is so cool. It's a bug-a-pult!
It's a catapult for bugs?
Huang: Yeah, exactly. Yeah.
You guys are welcome to have it if you want.
Wait, it doesn't come -- You're not going to sell these?
I mean, we could expand the product line.
You could definitely.
Out of all your products,
are you most excited about this?
Yeah, this is really not just a product for me,
but it's a showcase of all the skills
I've put into my studies in engineering.
I love it. You know what?
So this includes you. It's 10% of you, right?
It's 10% of not just Cup-a-Bug,
but like the future of my entrepreneurial experience.
So I'll give you. 50K for 20%.
Ooh.
Wow. Yes?
Greiner: Do it. I'll do the same.
No, he's not gonna do it. Just me.
Why don't why don't we get one --
I'll give him a little bit more. 60K for 30%.
Are you guys in together? Greiner: Oh, you're going in together?
No. No! Yeah!
I want you to myself.
[ Chuckles ] Greedy.
Would either of you be willing,
since we're going up in equity,
would you be willing to go up?
I'll go up to 75K. How's that?
For 20%?
Geek to geek? Geek to geek?
All right, Mark, join me in my entrepreneurial journey.
Let's go! Thank you so much.
That's great, man. Let's go.
John: That's great. Greiner: Congratulations.
I love it, man. It's awesome.
We'll have so much fun. I appreciate it.
Well, I'll be throwing projects after you left and right.
Anytime you have an idea, you can run it by me.
Code, hardware. Fun stuff.
I love that. Thank you so much. Yeah.
I appreciate it. Thank you.
Herjavec: Great job. Justin, fantastic.
That you guys so much. Yeah.
You got paid 75,000 to get a filthy rich billionaire back
every idea you have that he agrees upon
for the rest of your life.
I know, it's amazing.
He's gonna be working for you later on.
I hope so. I hope so.
You know what? That is the power of the cockroach.
[ Laughter ]
That's the power of "Shark Tank."
All right, man, congratulations.
Congratulations. Congratulations.
Talk soon.
Oh my goodness.
I can't believe it.
Mark Cuban with me in my entire entrepreneurial journey
is honestly amazing, and I'm so happy right now.
Did not expect that to happen.
Entrepreneurship is honestly a tough road,
especially when there's not a whole lot of guidance.
And I thank you guys on "Shark Tank"
for helping me get a connection like this.
This is life changing, honestly.
Oh, my God. He's great, man.
hen he said that he designed this just for us.
Yeah, I know. I think you like
the catapult more than the bug thing.
Yes. No, this this is utilitarian, right?
Sharks, I love to create and invent.
When I was 7 years old, I invented the Baby Toon.
The Baby Toon is a combination of a baby spoon
and a teether all in one.
When Cassidy from Baby Toon came out, she blew me away.
I want to show other kids that they can be open
to opportunities they have at school,
or even at home to create and invent.
I just really hope I inspire them.
It's a dream come true.
She did the whole pitch herself, and I thought,
"I have got to just go scoop up this girl
and give her a deal and become her mentor."
You have a deal.
Cuban: Congratulations.
[ Applause ]
Greiner: Oh, my gosh, you are just amazing.
Thank you. Amazing.
♪♪
Narrator: Next up are entrepreneurs who believe
their product is cooler than the rest.
♪♪
Together: What's up Sharks?
I'm Dave. And I'm Joe.
And we're the twins that founded Coldest!
We started this company in Naples, Florida!
And, Sharks, it gets so hot out there.
And so we wanted to create the coldest things.
To help you stay colder longer.
How cold, Dave?
This much colder!
[ Laughter ]
Greiner: Oh, my God!
We embarked on a journey to create
the coldest products ever.
This is our water bottle.
We tested this bottle against
50 plus of the largest hydration brands out there,
and designed it to stay cold
for up to 36 plus hours long.
With thoughtful design features such as this
non-slip rubber bottom.
It's 100% leak proof.
And we're not just a hydration company.
We wanted to create the coldest everything store,
so we designed and developed the coldest pillow.
Because I was sick and tired
of sleeping sweaty at night.
We also designed and developed the coolest dog bed
and the coldest dog bowl because
dogs like to sleep cold, too.
We're seeking $600,000 for 2% equity in our business.
Hello! Whoa!
That's cold. What do you say, Sharks?
Ice cold. Who wants to get burred
in an avalanche of cash and join us on...
Together: Expanding the universe
of Coldest!
Greiner: Whoo!
[ Laughter ]
Oh, my gosh. Okay. Wow. What do we got here?
Yes, what do we have?
Dave: So that's a limitless series.
It comes with three lids that are fully insulated
and it stays cold 36 plus hours.
Cuban: Tell us about you guys.
It sounds like an interesting story.
So my parents are both immigrants.
My dad's from Jordan, and my mom's from the Philippines.
They're both engineers, and so all our entire lives,
like we thought engineering was the only route to go into.
They tricked you, huh? They tricked us.
And every day, I'd listen to business podcasts.
Because me and Joe, we've always been obsessed with business
our entire life.
I had these side hustles.
They were software businesses, building websites
for other clients, so we knew how to build brands.
But all of our side hustles, they kept on failing.
But every single one of them,
we've learned like a really cool lesson along the way.
And then 2015 came, and that's when Coldest begun.
And so I had $14,000 saved up.
It was all my money, and I put it into the Coldest.
The Coldest Water was what it was initially called.
I finally chose a factory.
I sent them the money, all $14,000.
It was for 1,000 water bottles.
And my older brother looks at me, and he's like,
"Do you really think you're going to sell
1,000 water bottles?
You know how competitive that market is?"
And I looked at him. "You're right."
And so I messaged to the factory, I'm like,
"We need to cancel that order."
[ Laughter ] And she responds back
in like a few minutes.
"We can't cancel the order. It's too late.
Your order's are already on the factory line."
And then two years later,
we're doing about 900K in revenue.
Okay, so what happened with the thousand dollars?
Yeah, you just casually threw that out there.
We'll get into the numbers shortly.
Yeah, but --
But what happened to that order?
That one order. The first order.
1,000 bottles.
They sold out. They sold out.
Yeah, we sold out. John: In how long?
You're horrible pitchers.
In what period of time did that sell out?
I would say it was probably within
the first five months.
We initially started on Amazon.
We were pure Amazon Play, digital e-commerce,
D-to-C company.
In 2017, I said, "Let's start up an alliance."
You create the best, coldest product,
and I'll work just focusing on the marketing.
And within a year, it was about 2018 now,
we had hit $1 to $3 million in sales.
What?
We're getting the numbers here,
because this is the part -- you asked for $600,000.
That's not chump change.
Give us year by year revenue, okay?
2017, we did 900K. Okay.
And then 2018, we did 2.5 mil.
John: Whoa.
2019's 5.9.
So 2020, we hit $9.3 million.
Whoa! What?!
Whoa. Nice. Dave: It started to scale nicely.
And then?
2021, it was $12.4 million.
Whoa. It just kept on growing.
And last year?
Last year we hit $15.1 million.
Ooh!
I've got to ask, why are you here?
What were your profits last year?
Are you making any money on it?
Hold on. So last year was negative-400K.
You lost 400,000?! Why?
Our inventory, it just keeps flying out.
of the warehouse.
Like it sells really fast.
And we keep buying a lot, too.
Joe: We keep buying a lot more.
We're adding more colors. More SKUs.
Yeah. Uh, obviously,
as you can see, we're adding more categories, as well.
All of our money since day one has been going
back into the brand.
What is your inventory worth right now?
Yeah, it's around $2.5 million.
How many SKUs is that?
There's over 350 SKUs in --
How many of those SKUs are over a year old
and just probably not going to sell?
I know this sounds weird, but all of our stuff moves.
It just a matter of when we want to discount it
and break even at that product.
And that is 2.5 retail or 2.5 meaning your cost?
Cost. Cuban: Cost.
That's cost. So what is the average margin on here?
How much does a bottle cost to to make,
and how much do you sell it for?
So that specific product retails for $55.99.
Okay. And we get it for
around $10 to $12 landed.
What do you think you're on track to do this year?
We're on track to do $22 million up to --
That's on the lowest end. Joe: On the low end.
You lost money last year? Yeah.
Why is it worth $30 million?
It's worth that because our growth
has just been scaling tremendously.
But the problem is, is you're not making money.
The way that I see this, honestly, you had clever idea,
but it's almost like you fall in love with the sales
that you get caught in that cycle of,
and let's get more and let's do more
and let's bring in more.
And the problem is, you're so heavily inventoried
that you said yourself
you're going to sell it off to break even.
So -- A business should run
where you're lean and mean.
For me, it's not a model I like, so I'm sorry, I'm out.
Alright. Thank you for your feedback, Lori
So -- Cuban: What percentage
of your sales do you spend on advertising?
A lot.
So last year, we did almost $3.3 million in advertising.
Wow.
So, guys, you guys are a marketing company, right?
Correct. But in order to be
a great marketing company,
there's got to be science behind it.
There's got to be more than just,
let me just try some ads on Amazon,
because while I get that you're trying to scale, right,
if you really want to scale to be a household name,
you've got to be the best at analytics for advertising.
I don't see that from you guys. So I'm out.
Okay.
Herjavec: Look, you've got the growth.
You started a business from zero.
You're going to do $20 million. I mean, that's incredible.
But I still don't understand why you're losing money.
So it was definitely cold. It wasn't very hot. I'm out.
Why do you believe that,
you know, the inventory is a plus?
I mean, because one of the biggest things
that slowed FUBU down was when we were doing,
you know, $400 million a year,
well, with broken boxes, broken sizes,
styles that people don't like, it starts to add up, right?
And that is your profit.
You're headed down a road that I do not want to join you on.
I think is a very dangerous road.
Be careful. I'm out.
So we're willing to go up to 10% equity.
O'Leary: I thought your presentation absolutely sucked
until I heard the sales.
[ Laughter ] Herjavec: Yeah.
Because to me it was,
oh, another water bottle guy, please.
I've seen so many water bottle guys.
The challenge is return of capital on your deal
because you're not worth 30 million bucks.
I definitely have to have a royalty on this
to get my capital back.
And you can get a little better at how you're spending.
Here's the deal. I want 7% equity.
I'll give you the $600,000. I want $2.25 an order
until I make back $3 million on the $600,000.
Then the royalty goes away, and I ride the pony on the 7%.
We're not super interested in a royalty deal,
but what we would be interested.
Well, you should get super interested
because it's the only offer you have right now.
Narrator: Four Sharks are out.
Dave and Joe have one offer on the table from Kevin
for their brand of cold products, Coldest.
O'Leary: Here's the deal. I want 7% equity.
I give you the $600,000. I want $2.25 an order
until I make back $3 million on the $600,000.
Then the royalty goes away, and I ride the pony on the 7%.
We're not super interested in a royalty deal,
but what we would be interested --
Well, you should get super interested
because it's the only offer you have right now.
[ Laughs ] Yeah, so, what if we
offer this counter.
If we pay you back 1.5-X of what you're offering,
say 600K, we'll give you 900K in three to five years.
Oh, that's so uninteresting.
It's a guaranteed payback.
Oh, I fell asleep on that one.
[ Laughter ] You're gonna make 50%
more than what you're investing today.
Where else can you do that? Listen, guys.
I put up $600,000.
I can't buy a watch with what you're offering me, okay?
That's no good.
I'd rather just take the $600,000
and buy a watch right now.
Like, you have to think in terms of how many watches
can I get out of your deal? That's what I'm thinking about.
What's wrong with my offer? It's so reasonable.
So the 7% for $600,000,
you know, it's definitely on the very low end.
But think of the opportunity here for your brand.
He has the coldest heart of any human being.
I have total respect for what you've done
in growing revenue.
That's impressive. There's a lot of
fine tuning you can do to make that more profitable.
I'm not sure you're doing the best job in terms
of digital spend right now.
The only guy you have left is Mr. Wonderful.
Last offer, 5% equity.
$2.25 in order till I get back $3 million.
And then I ride the equity with you.
What do you want to do?
We'd like to counter. Yeah.
Uh, for $1.5 million, for 5% equity, and at,
like, the three year mark, if you wanted to get out,
you could give us the equity back,
and we would pay you out at one and a half times.
Greiner: They're getting colder.
I'm falling asleep again. That's not the offer I made.
Cuban: So, Kevin --
Dave: We don't like the royalty deal.
Yeah, we don't like the royalty.
Yeah, they need all the cash they can get.
We got to figure out what makes sense for the brand.
What makes sense for the brand is me giving you $600,000
under the terms I just dictated.
Um...
I think...
[ Whispering indistinctly ]
Okay, so our answer to that is no.
Tomorrow morning when you wake up,
you're going to be cold.
Hey, guys, one of my favorite sayings is
"It doesn't matter how many times you fail,
you only have to be right one time,
then everybody can call you lucky."
You both talked about how many times you failed
and you finally got your one time.
Don't screw it up.
Appreciate it, Mark. Herjavec: Make the most of it.
Greiner: Good luck, you guys.
Thank you so much. Cheers.
Dave: I think the Sharks are going to regret 100%
that they didn't make an offer.
Mr. Wonderful is going to regret that
he was too greedy, you know?
And, uh, we'll just have to prove them wrong.
-- Captions by VITAC --
♪♪