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Shark Tank Season 17 Episode 1
#SharkTank
#RealityInsightHub
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FunTranscript
00:0017 years ago, Shark Tank started a revolution of ideas.
00:07What if you could control the world around you with just a finger?
00:11Revolutionary technology automatically lowers entire structures underground.
00:15This is incredible.
00:17It's the thrill of a motorcycle with the magic of a flying carpet.
00:20That is wild.
00:22I am so excited. I want to scream from the rooftops.
00:25Empowering entrepreneurs.
00:27The unemployment rates for the deaf community are about 55%.
00:30We've been invisible. We want to be more visible.
00:33What you decide today will determine your destiny.
00:35The life-changing series returns for a new era.
00:39You're Mr. Wonderful, Ms. Perfect. She's definitely got her own money.
00:42With more exciting guest sharks than ever before.
00:45Chip and Joanna Gaines, founders of Design and Lifestyle Empire Magnolia.
00:50I can honestly see this living in our ecosystem.
00:53Alexis Ohanian, founder of venture capital firm 776 and Reddit, one of the most popular online forums in the world.
01:00I am so tempted.
01:02I love the store and I love the Reddit energy.
01:04Kendra Scott, creator of jewelry behemoth Kendra Scott Jewelry.
01:08I started with $500 out of my extra bedroom and I built a billion dollar brand.
01:12Fawn Weaver, founder of one of the fastest growing spirit brands in America.
01:16I invest in founders who will not under any circumstance give up.
01:21Rashawn Williams, financial literacy advocate and founder of Harbinger Sports Partners.
01:25I'm a venture capitalist. VCs sell rocket fuel so I'm looking for rockets.
01:29Alison Ellsworth came into the tank seven years ago with her healthy soda brand and now returns as a shark after selling her company for $1.95 billion.
01:39Getting a deal on Shark Tank changed my life. I think you should really consider this.
01:44And Michael Strahan, Super Bowl champion and beloved TV personality is also a seasoned investor and business mogul.
01:52You should have been a football coach because I would run through a wall for you.
01:59Every time you see a small business, someone made a courageous decision.
02:04I came here to do a deal, all right? I've been at it alone. I need someone by my side.
02:08I'm so excited!
02:10You've got the devil in red, totally greedy, and look at this one.
02:13Oh my!
02:14Boink, boink, boink, boink, boink, boink, boink.
02:16It's very old school in here. Kevin O'Leary called someone a pig.
02:19Come running at me, baby. Come running at me.
02:21Come on. It's gonna be worth it.
02:23It's not like it's gonna rain here in the tank or something, right?
02:26The new era of Shark Tank begins now.
02:39First up are entrepreneurs bringing some big sock energy into the tank.
02:44No!
02:45How's it going?
02:46Much better now.
02:47Wow!
02:48Hey, Sharks, I'm Ben from New York.
02:49Hi, I'm Pete, and we are seeking 500 grand for 4% for our company, Double Soul.
03:06Sharks, before Double Soul, buying socks felt like a major compromise.
03:10Yeah, you know, you usually get socks at Foot Locker.
03:13There's that big bin.
03:14You get a 20 pack.
03:15They're kind of lifeless.
03:16Sharks, this isn't an athletic sock.
03:18It's not a novelty sock.
03:19We took the best of both worlds and created the perfect everyday sock.
03:22Packed with features from a double cushioned bottom, a seamless toe, a perfectly aerated top, and perfect tension around the ankle.
03:29And they're made from a super soft, sustainable material.
03:32Yeah, I get sent a lot of crap, and I usually give it to my cousins.
03:36I got sent Double Soul a couple years ago, and I had to meet the team, and I wanted to be involved immediately.
03:42All right, Sharks, we picked out some great pairs for you guys to try.
03:46Excited to see what you guys think.
03:47What are they made out of?
03:48They're really soft, and you loved it.
03:50Yeah, so they're about 85% organic cotton and 15% recycled knowledge.
03:55And they're also, like, I don't know if this makes sense, they stay up.
03:58Yeah.
03:59Like, around the ankle, and they don't cut off the circulation.
04:01And they usually don't.
04:02Yeah, and they're, like, cute.
04:03Like, they work for both boys and girls.
04:06First of all, big fan.
04:07Oh, thank you, same.
04:08Thank you for coming out.
04:09Oh, thanks for having me.
04:10Are you an investor in this?
04:11Yes.
04:12How much of the company do you own?
04:1410%.
04:15Just out of interest, at what valuation did you get to buy 10% at?
04:19And when?
04:20Uh, I would say at least a year ago, and it was around, like, a mil or two.
04:25And now it's...
04:26And now it's what?
04:27Now it's 12 and a half.
04:28Okay.
04:29What?
04:30Stop right there.
04:31Stop right there.
04:32You just got to where I was trying to go.
04:33Let's talk about, and listen, I always give somebody a chance before I fry them, okay?
04:39Okay.
04:40Because you're about to get fried.
04:41Maybe.
04:42A year ago, this is worth a million bucks, but maybe you can convince me that it's now worth 12 and
04:46a half.
04:47Go.
04:48Stop.
04:49They have sales.
04:50Yeah.
04:51Well, let's hear about it.
04:52And be nice.
04:53He's like a really nice kid.
04:54Let's hear about it.
04:55Seriously.
04:56Let's hear about it.
04:57Yeah.
04:58So we started officially in 2022.
04:59We've done 5.2 million in sales on a lifetime basis.
05:00What?
05:01Lifetime.
05:02It was 360K in 2022, 1.7 million the following year.
05:052.3 million we did last year.
05:07On this year, we're on track to do 7.5.
05:09I love it.
05:10Okay, are we making money?
05:11Are you making any money?
05:12Yeah.
05:13So last year, we lost 380K.
05:14What are you going to make this year?
05:15I don't love that.
05:16This year, we're going to make 700K.
05:17So how did you explode?
05:18When we launched the brand, we had people that were posting about the socks all over
05:21social media.
05:22Yeah.
05:23We were doing different outfits, making memes about the brand.
05:25And you didn't pay them.
05:26No, we didn't pay them.
05:27They just were.
05:28It was organic.
05:29Direct-to-consumer, business only?
05:30Direct-to-consumer.
05:31We're 95% online.
05:32I hear the 2.3, super exciting.
05:33I hear 7.5.
05:34When I hear 380,000, though, that you lost last year, right now, you're in the hole.
05:38So you've got to convince me, and I think probably my friends here, why this valuation
05:43is at 12 million, because it's not adding up for me.
05:46Before you do, I disagree with that.
05:48Businesses I invest in, I'm looking for rockets.
05:51I invest in rockets.
05:52If you are profitable, reinvest it into marketing and growth.
05:55I don't even care about the profit.
05:57I care about you growing to 25 to 50 million in revenue.
05:59Okay, I built an over-billion dollar brand, and I've always, once it started working,
06:04I have a beautiful, beautiful EBITDA, beautiful profits, right?
06:08And that's where I got the valuation going up.
06:11You know, they're looking at my top line.
06:12If I'm losing money, investors are looking at me like, hmm, I don't get it.
06:15So Pete joined us in December.
06:16Q1 2025 was four times the sales that we did Q1 2024.
06:20And I think that speaks to why we're going to be hitting 7.5 this year.
06:23Can we go back to just the economics of a sock?
06:26What do you sell them for?
06:27Are they bundled?
06:28Absolutely.
06:29What are the costs?
06:30What are the margins?
06:31So it costs us about $1.20 to produce the socks.
06:33We sell them for $11 on average.
06:35They range from 9 to 20.
06:36We have five silhouettes that, you know, we have a no-show.
06:39We have a mid-calf.
06:40We have a knee-high.
06:41So 70% margins, would you say?
06:43It's an 89% gross product margin.
06:46We just launched on Amazon Urban Outfitters.
06:48If you guys think about it in your head, like, there is no sock brand on Instagram,
06:52on any social media platform that has any...
06:54Well, Ben, is that really true?
06:56Well, okay, what's that?
06:57My friend Damon invested in Bombas on the show.
07:00Well, Bombas is a great company, but it's over $2 billion in sales.
07:04But it's, like, time for new...
07:06Like, they did it.
07:07You know what I mean?
07:08And they don't feel like this.
07:09They're not sexy.
07:10They don't feel like that.
07:11They don't feel like that, and they're not sexy.
07:12They're still doing it.
07:13They're still doing it, but, like, these are better.
07:15I'm ready to make an offer here.
07:16Alright?
07:27Oh, there we go.
07:28I have been dreaming about having a sock brand and being involved in the sock brand.
07:42I love a great sock, and I'm honestly going to tell you I haven't found one that I love.
07:47I don't want to take this sock off my foot.
07:49I want to wear it all day today.
07:50I'm just going to wear this sock.
07:51This is what you dream about.
07:52I dream about socks, Robert, I do.
07:54Okay.
07:55And I think you're right.
07:56It's time for a new player, and nothing would make me more excited than having something
08:00more successful than Daymond.
08:02And, think about it.
08:03I have 152 stores.
08:05Wouldn't it be great to sell these and those?
08:07Oh, you're good.
08:08There you go.
08:09Right?
08:10I get why you guys are the sharks.
08:11Exactly.
08:12So, what I'm going to offer you is I want 10% for the 500K.
08:16Alright?
08:17I think that is a hell of a deal.
08:20Hell of a deal.
08:21Five million valuation.
08:22But, hey, the people that invested, did they have 152 stores?
08:25To put immediate product in?
08:27No.
08:28No.
08:29Yeah.
08:30I'd like to know about your partners, your team, and your background, please.
08:34So, I went to the University of Pennsylvania, co-founded the business with my wife, Allison.
08:38We met at the University of Pennsylvania after school, went into different career paths.
08:42I was in private equity.
08:43She was on the operations side at a fitness startup, and we sort of came together around
08:47this mutual frustration around the sock drawer.
08:49So, she's in the deal.
08:51Yeah, she's the CEO.
08:52Pete, what's your background?
08:54Nothing that you can't Google.
08:57Born and raised in Staten Island.
08:59Still pretty much live there.
09:01Do comedy.
09:02Try to act a little bit.
09:03Is that working out for you?
09:04The acting kind of comedy will probably be what I have to do forever, but show business
09:10is not, it's not really reliable and sustainable.
09:13You don't say.
09:14And the reason why I wanted to get behind them is because, like, I think it's, you know,
09:19a lifelong job that I could do, and I actually really love coming up with ideas with them.
09:24It's, like, really fun, and then seeing them be executed, it's, like, a different high that I've never felt before.
09:31Well, you got to love the product.
09:33So, for $500,000, I'll do either one-third or half if others want to join me.
09:37So, here are my terms.
09:38You have a lot of risk.
09:39So, because of that, I need to do some structured equity here.
09:42So, what I would like to do is $8 million valuation, but I need a pick preferred with a 3x liquidation preference on it,
09:51and it is a participating preferred as well.
09:54I don't know what the you guys are saying.
09:57I have no idea.
09:58I'm adding downside protection.
09:59I'm just going to be cute, sir.
10:00That's it.
10:01I believe in the upside.
10:02Basically, he's going to get paid first.
10:03If you sold this business for $20 million, a 3x liquidation preference means we get three times our money back first
10:10before we split the rest of it, and then afterwards we participate pro rata based on our ownership.
10:15What do you say to that offer?
10:16Because I'm going to tweak it a little bit.
10:18Make it simpler.
10:19We go to the 25 cent royalty until we get 3x on the cash, then it goes away.
10:25That way, this cash flow coming in, you get the benefit of two sharks.
10:30I'm so shocked.
10:31And by the way, there's only one Pete, but there's only one Mr. Wonderful.
10:34And I love that guy.
10:35Thank God.
10:36Thank God.
10:37So, I'm telling you, what about that idea?
10:38We get 3x from the royalty.
10:40No, he's going to try to get two of them attacking you.
10:43I would do that deal.
10:44Six and a quarter.
10:45Six and a quarter percent.
10:46We're splitting it.
10:47I like the idea of a royalty.
10:48A royalty, you say?
10:49A royalty.
10:50Yes, a royalty.
10:51Because you have room there.
10:53Here we go.
10:54You have room there.
10:55I don't do it when I don't think there's room, but I think you have a lot of room.
10:57I like the preferred.
10:58Oh, now you're being an absolute pig.
11:01Are you kidding?
11:02You want the prep and you want the royalty?
11:04Yes.
11:05I've never seen greed like this.
11:07What else are they bringing on the table?
11:08We don't know what she's doing because she didn't finish talking.
11:10It's because you so rudely interrupted me.
11:12Oink, oink, oink, oink, oink.
11:13I can't believe what you're doing.
11:14Oh, my God.
11:15Unbelievable.
11:16The greed.
11:17I mean, can you believe it?
11:18You've got the devil in red totally greedy.
11:20And look at this one.
11:21Oh, my God.
11:22Devil in red.
11:23Let me tell you where I'm at.
11:24Where are you at, Robert?
11:26I love Kendra's offer.
11:28Thank you, Robert.
11:29I think I would love to come in with her if she's open to it.
11:34I mean, I kind of want it all to myself.
11:36There you go.
11:37I love you, Robert, though, so much.
11:38But I really, I know.
11:40It's just such a big ask at this point at $500,000.
11:44That's my stock.
11:45I don't play for second.
11:47I can't wait to be the number one stock brand.
11:49Let's kick some ass.
11:50I can't do $500,000 for a stock company at this point.
11:52I'm out.
11:53All right.
11:55You know, why don't you change the name of the company to Greedy Girl Socks and do a
11:59deal with her?
12:00Well, look, guys.
12:01You are funny, dude.
12:02I'm getting ready to pull my offer.
12:03Go ahead, Ben.
12:04Yeah, so the liquidation preference is tough for us.
12:08The investors that have already put capital into the business, it's not really fair to
12:12them.
12:13Loyalty.
12:14Yeah.
12:15Good job.
12:16We like loyalty.
12:17I'm out.
12:18Kendra, you made the first offer.
12:21Thank God.
12:22We finally got here.
12:23Yeah.
12:24We really appreciate that.
12:25I'm so excited.
12:26We want to counter.
12:27We're going to do...
12:28Oh, no.
12:29I'm not as excited anymore.
12:30Would you do $500,000 for 6%?
12:34Look, you're getting...
12:35You're not just getting the money.
12:37You're getting me.
12:38You're getting retail.
12:39Like, you want to be in retail stores.
12:41Honey, out of the box, we got you covered.
12:43We have opportunity to do amazing collabs with my other brands.
12:45I know every single other retailer.
12:48You name it, baby, we got it if you want to go that route.
12:51So, you're getting a lot more.
12:52Just like Pete, I got some earned inequity I should get here, too.
12:55So, I'm keeping my 10%.
12:56I agree.
12:57All right, Kendra.
12:58Do you mind if we make a quick call to my wife and co-founder?
13:01Uh-oh.
13:02Just to get her blessing.
13:03Call?
13:04You know what?
13:05I think that's smart.
13:06Do you want me to go and talk to her?
13:07Okay.
13:08All right.
13:09I'm going to come talk to her.
13:10Come with us.
13:11Allison, here I come.
13:14And, Lori, what are you doing?
13:16Nothing.
13:17Oh.
13:18Hey, Allison.
13:19Do you hear me?
13:20Hello.
13:21Hi.
13:22I'm here with Kendra.
13:23I'm going to put her on the phone.
13:25Allison, it's Kendra Scott.
13:27How are you?
13:28I'm great.
13:29By the way, I'm the happiest that it's you calling me right now.
13:32Oh, my God.
13:33I'm so glad.
13:34I can't wait to hear the offer.
13:35Okay, look.
13:36Like, you know, I got this, okay?
13:37I know this business.
13:38I know accessories.
13:39But I'm offering $500,000 for 10%.
13:41No other crazy things like royalties or whatever the other sharks were offering.
13:46Whatever.
13:47I'm just doing a straight deal because I know we can blow this thing up.
13:50So, what do you think?
13:51It sucks, guys.
13:52It's a total commodity.
13:53I know.
13:54You know what I'm saying?
13:55I know.
13:56What's happening back here?
13:57Okay, hold on.
13:58Here's your cute husband.
13:59Okay, hold on.
14:00Okay.
14:01All right, here.
14:02Keep coming.
14:03All right.
14:04What do you think?
14:05Are we good?
14:06We're good?
14:10Let's do it.
14:11All right.
14:12We're good.
14:13We're good.
14:14Yeah.
14:15Yeah.
14:16Up your ass though, Leary.
14:17What?
14:18What happened?
14:20All right.
14:21All right.
14:22Congratulations.
14:23Here we go.
14:24You got a deal.
14:25Congratulations.
14:26Congrats.
14:27I got the best deal.
14:28This was very nice.
14:30You guys are all lovely.
14:32Thanks, guys.
14:33All right.
14:34Good job, buddy.
14:35I'm so excited.
14:36You did good.
14:37See?
14:38The parks are really rude to each other.
14:39I mean, Kevin O'Leary called someone a pig and oinked.
14:43I mean, who does that?
14:45All right.
14:46Let's get the back to New York.
14:47Yeah.
14:48Now that we have Kendra, it's kind of like acquiring LeBron.
14:51It's a lot of, like, street cred, you know?
14:54I'm obviously, you know, cool to have as a part of a brand, but, you know, that can only go so far.
15:00And I just think now it's like, it's real.
15:04You know what I mean?
15:05Like, it's going to go to the moon, as they say.
15:12Welcome to Barbara's Business Boot Camp.
15:15I invited all my best and brightest entrepreneurs to come to New York City.
15:19It's been a year of uncertainty for entrepreneurs.
15:21They're not only trying to build their new businesses, but they're also dealing with so much change around them.
15:26We've gathered together the best experts to teach our entrepreneurs what they really need to know to run a better business.
15:32We're talking about AI, public relations, and all the media skills that are part of doing business today.
15:37On top of that, I'm going to be teaching my entrepreneurs all the lessons I've learned over the years.
15:41The pitfalls to avoid and how to capitalize on the opportunities.
15:45You train AI the same way you would train a new employee.
15:47If you want to get it to sound like you, give it 30 emails that you've written and it will learn how you actually like to sound.
15:53There are a lot of products that try to help aggregate a lead list.
15:55You can redo your pricing strategy, talking about the specific differentiators of your company.
16:00There is a lot of value if you reserve $1,000 to try out a bunch of different tools.
16:05You have to have a story.
16:06If you're going on TikTok or you're going on Instagram, they have to know you.
16:09They have to feel what you're feeling.
16:10It's like the old game of telephone, how a story resonates.
16:14Hiring happy people is my guiding light.
16:16Complainers don't complain to themselves.
16:18They always need two people to make a pity party.
16:20The best way to make a team of anybody, have them have fun together and you've got yourself a team.
16:24When you make a deal with a shark, it's just the beginning.
16:27What you really get is an entrepreneurial family of like-minded individuals.
16:31You just have to accept that nobody is going to do 100% the same that you would.
16:36They'll probably do 80%.
16:3780% is good.
16:38And if they can do 80%, that's good enough.
16:40When these 11 companies came into the tank, they only had $12 million in revenue.
16:45Since closing the deal with me, they have over $103 million in lifetime sales.
16:50You've got to promise me you'll become friends to the team.
16:54There is a lot of uncertainty and challenges in the world right now.
16:58This was therapy just to even talk to people who are struggling with the same challenges that I am.
17:02With us being in such different worlds and different industries, you think there's not a lot of crossover.
17:06Then you start talking and you realize we're all dealing with the same stuff.
17:09One of the biggest takeaways I had from this week was the speaker on AI.
17:13It is going to help me with my graphics, my marketing.
17:16It is a whole game changer.
17:17Everyone here has been through so much.
17:20It's been really nice to know we're not alone.
17:22I'm leaving with so many new friends and learning from these amazing speakers, my other Shark Tank founders.
17:28It genuinely feels so magical.
17:30Thank you, Shark Tank!
17:45Next up is a father and daughter duo hoping to bring comfort with every step.
17:52Hi Sharks, my name is Lindley and this is my dad Andres.
18:02We're from Albuquerque, New Mexico and we're seeking $250,000 for 10% of our company.
18:08Whether you're working, playing sports, walking or hiking, we absolutely torture our feet.
18:13And that pain runs up our knees and into our backs.
18:16For years, companies and doctors have been trying to solve this problem in vain.
18:21Mainly turning to things like very expensive custom orthotics.
18:27I love it.
18:28Hooking people on pain pills.
18:29Oh God.
18:32And even surgery.
18:34Oh!
18:36We've solved the problem at the foundation and that's the reason we created an entirely new innovative shoe company called...
18:43Z-Coil Footwear!
18:45Ta-da!
18:46Wow!
18:47Interesting.
18:48Whoa!
18:49The future is here.
18:51Wow!
18:52That's right, Sharks.
18:53We're putting springs on your feet.
18:55Are you kidding?
18:56Z-Coil Footwear cuts the impact by 50%.
19:00Oh, I got it.
19:01With our technology, whether you're a nurse, a construction worker or a server, you'll be able to walk further, stand longer and experience significantly less foot, leg and back pain.
19:12So, Sharks, who's ready to spring into the future of footwear with Z-Coil?
19:16Wow.
19:17Wow.
19:18So, under here?
19:19Can we?
19:20Yes.
19:21Yeah, in front of you, each of you has a pair of our Z-Coils.
19:23Oh my goodness.
19:24We would love for you to try them on.
19:25To get the full experience, you really, really have to walk in them.
19:29Oh my gosh.
19:30This is not the best looking shoe I've ever seen.
19:32And again, I have a question.
19:33Is this like a prototype?
19:34This is not a prototype.
19:35Oh my gosh.
19:36I feel so weird.
19:37I feel like socks.
19:38I really don't.
19:39Yeah.
19:40You guys are walking.
19:41Woo!
19:42There you go.
19:43When you're walking, strike the back of your heel.
19:45Really take big strides.
19:46This feels kind of cool.
19:48Walk on your heel though.
19:49They just look really bad.
19:51I'm trying to get over to look.
19:53The feel is great.
19:54This really feels good.
19:55Runway.
19:56We need a runway little catwalk.
19:57Yeah.
19:58Very good.
19:59Yeah.
20:00So ugly, Robert, to your point.
20:01Ugly is in right now.
20:02Okay?
20:03Ugly is the new cute.
20:04We are the only spring-loaded shoe.
20:06I have a quick question because you know I'm loving it.
20:09The spring, you're not having the same impact on your feet and on your joints, etc.
20:1424% of Americans have foot pain on a daily basis.
20:18And so Z-Coils are really engineered specifically for people who have that feet, leg, and back pain.
20:22Andra, how did you even come up with this?
20:24Yeah.
20:25When?
20:26My father was in the shoe business.
20:28And when I was 12, my mother passed away.
20:31And my dad used to run a lot.
20:34So he raised eight kids by himself under the age of 16.
20:37Wow.
20:38One day he was actually running.
20:39Wow.
20:40And he just got this complete, you know, connection with the divine saying, make this shoe.
20:45And he thinks this from my mother.
20:46And I completely believe him.
20:47That's him?
20:48Yeah.
20:49So this is my father here in the center.
20:50Wow.
20:51How long ago did he come up with that?
20:52So it was really late 80s when I was in college.
20:54When did you start the company?
20:56We started officially in 1995.
20:58I was working, I was marketing Centrum Vitamins.
21:00It's been around 30 years.
21:01We just crossed our 30 year anniversary.
21:03Wow.
21:04It's not a new idea.
21:05Five years, no salary, $140,000 in credit card debt.
21:09That stress brought in an idea.
21:10I said, listen, we got to raise more money.
21:12I said, how about if we give free shoes with investments?
21:14So we give shareholders $1,000 in retail value if they invested $1,000 in Z-Coil footwear.
21:21Oh, that was terrible.
21:22No, that was terrible.
21:23In 12 months, we raised $5 million.
21:25$5 million?
21:26$5 million.
21:27We gave away $1.8 million in product.
21:29We seeded product all over the nation.
21:31Wow.
21:32We netted $3.2 million.
21:34You fast forward four years, we grew this company to $11.8 million in sales.
21:39Wow.
21:40Okay.
21:41Now I'm getting excited.
21:42That's impressive.
21:43What are your sales today?
21:44What are your sales today?
21:46We'll end up this year at $1.6 million in sales.
21:48Last year was what?
21:49Hang on.
21:50Okay.
21:51We went from really good news.
21:53Right.
21:54To 1.6.
21:55Right.
21:56At 30 years later.
21:57Right.
21:58What happened?
21:59So we built up a network of 450 retail stores nationwide, 12 of which were podiatrists,
22:03speaking to the efficacy of this product.
22:05They love this product.
22:06But 2008 came, we didn't see that coming.
22:09It just blew that entire network down like a house of cards.
22:12That was really.
22:13Why?
22:14We grew too fast is really the deal.
22:16But let's talk about this year and what profit will be in this calendar year.
22:20Okay.
22:21So let me just kind of go backwards here.
22:22So we'll end up this year at $1.4 million.
22:24We're going to lose $270,000 this year.
22:26Ooh.
22:27That's not very exciting, Andre.
22:29I've been really pushing the brand hard.
22:31Lynnie's been with me.
22:32Thank God she's here.
22:33She's actually a digital marketing specialist.
22:34I've been in the space for 10 years now.
22:36So that's why I'm here.
22:37I came in the last year and I've been trying to get all the information.
22:40And so I've been doing tons of serving.
22:4325% of our customers are in healthcare.
22:45Okay.
22:46That makes sense.
22:47Nurses.
22:48They're on their feet.
22:49It's brutal.
22:50Then you've got warehousing and logistics with our boots.
22:51And then right behind that we have retail.
22:53Teachers.
22:54And behind that like more service people.
22:56But those are our big markets.
22:57Yeah.
22:58We had a ROAS last year of 4.6.
23:01Wow.
23:02That's great.
23:03Yeah.
23:04And so we're, we're, I'm the one who's spending the money.
23:06That's why we're in the negative.
23:07Because I'm trying to drive content.
23:09How much are these guys gonna, if I want to get these for myself?
23:12Yeah.
23:13So that retails $279.
23:14And how much does it cost to make it?
23:16$65.
23:17$65.
23:18Yeah.
23:19Let me just ask you a question.
23:20Just understand it from the investor's perspective.
23:21One of two ways this goes, because you're going direct to consumer.
23:24You target these people that spend a fair amount of their day on their feet, which is,
23:29they don't give a damn what the shoes look like if there's comfort.
23:33And then that's the message.
23:34Yes, they're ugly, but you're going to feel great.
23:37My job as an investor is after you show me your CAC and ROAS, customer acquisition cost,
23:42return an ad spend, I just pour fire on it.
23:45Our CAC is a, is $100.
23:47Well, I don't like these numbers.
23:48I'm sorry.
23:49Yeah.
23:50I'm out.
23:51Oh, that's why we're here.
23:53We really need you guys.
23:54Well, you're not dead yet.
23:55And we're super excited about the future.
23:56You know, first of all, I get the comfort.
23:59They were super comfortable when I put them on.
24:01They were.
24:02I don't think I can help you with this product.
24:04So for that reason, I'm out.
24:08What we actually came here for was someone to help mentor.
24:12So think about your business as an airplane and there's a long runway.
24:17And in your case, the runway has been 30 years.
24:20Investors like to give you money to take off, right?
24:23Yeah.
24:24What I, what I'm hearing today is that your use of proceeds is for more runway.
24:28It doesn't provide take off.
24:30Yeah.
24:31You haven't solved that equation that you pour ad spend in and you generate additional sales
24:37and revenue lift.
24:38Yeah.
24:39Because I haven't seen it.
24:40Okay.
24:41I'm out as well.
24:42Here's my issue.
24:44It worries me that you've been around this long and you're not seeing that upside.
24:49And the sales are so low.
24:50I just, the 30 years worries me.
24:53I'm out.
24:54I am truly torn about this because they feel phenomenal.
25:00It's a better mousetrip, but I just, it seems like such a mountain to climb.
25:07It's challenging.
25:10I need help.
25:11I need help deciding where to take it.
25:13It, there's something about this.
25:16That's really great.
25:17I think you have an instinct.
25:18But it's, it's, it's, I am so, I am so afraid to jump into it.
25:23Not everything is investable that I love.
25:27I'm sorry.
25:28I'm out.
25:32We wish you the best of luck.
25:33Yeah.
25:34Thank you guys.
25:35Good luck.
25:36We really appreciate it.
25:37Glory.
25:38Oh.
25:40It's okay.
25:41Thank you for the opportunity.
25:42Good luck guys.
25:45Wait, come back.
25:46Come back.
25:47What?
25:48Come back.
25:49Wait, wait, come back.
25:50Wow.
25:53I will give you the 250 K at 50%.
26:01Ouch.
26:0850%.
26:0950%.
26:1050%.
26:11I know it's steep.
26:12Bounce on those shoes.
26:13Say that again.
26:14Killed work with her.
26:19Guys, take the deal.
26:20This father daughter thing.
26:21Take the deal.
26:22Take the deal.
26:23Lori's worth more than that.
26:24Yeah.
26:27You've got a deal.
26:28Yeah.
26:29Are you serious?
26:30Woo-hoo-hoo.
26:31I'll bounce over.
26:32Good job, Lori.
26:34Lori, I love this.
26:35Great job, Lori.
26:36Thank you so much.
26:37Thank you so much.
26:38Oh, don't shake.
26:39You have an amazing partner in your room.
26:43We're going to figure it out.
26:44We're going to figure it out.
26:45They're like so floating on air.
26:47They're fabulous.
26:48Good job.
26:49Congratulations.
26:50Thank you so much.
26:51Lori, you did a good thing, Lori.
26:52You did.
26:53They're so ugly, Lori.
26:54You did a good thing.
26:55Oh, I don't like the camera.
27:02It was a thousand percent worth it to have Lori on board for 50%.
27:06She was our perfect shark, and she's everything that this brand needs and really wants right
27:10now, and she's going to help us take it to the next level.
27:25Next up is an exciting new way to experience freedom on the water.
27:37Sharks, I'm Mike Terry.
27:38And I'm Jamie Schlinkman, and we're from sunny South Florida.
27:41And we're here today seeking $800,000 for 4% of our organization.
27:47Wow.
27:48Sharks, did you know that over a quarter of Americans go boating every year?
27:52That's families, adventurers, and explorers all chasing that same dream of freedom on the water.
27:59Traditional watercraft?
28:00They're bulky.
28:01They're loud.
28:02They're expensive to maintain and store, and they pollute.
28:06True.
28:07What if we told you there's a better way?
28:10A way to fly across the water with no noise, no wake, no fuel.
28:17No way.
28:18Exactly.
28:19Just pure unbridled freedom.
28:20What?
28:21Sharks, it exists.
28:22Come on.
28:23It's real.
28:24Show me.
28:25I don't believe it.
28:26I don't believe it.
28:27The Hydroblade.
28:28Ta-da!
28:29Oh, my God.
28:30Wow.
28:31Is that a treadmill?
28:32That is wild.
28:33Wow.
28:34Oh, that is fun.
28:35That is so cool.
28:36So fun.
28:37So fun.
28:38The Hydro One is the world's first stand-up electric hydrofoil with intuitive steering.
28:43It combines the thrill of a motorcycle with the magic of a flying carpet.
28:47Wow.
28:48Offering four hours of silent operation and up to 40 mile per hour top speeds.
28:53Oh, my God.
28:54Wow.
28:55All with no localized emissions.
28:56Wow.
28:57Wow.
28:58Unlike jet skis that disturb the peace or e-foils that exhaust their riders, the Hydroblaze
29:05weight-free flight has three hydrofoil points that keep it stable and make it easy to ride.
29:12So, sharks, who's ready to ride the wave of change and help us take this revolution
29:18global?
29:19Let's go.
29:20Wow.
29:21Wow.
29:22Wow.
29:23How did this happen?
29:24How did you guys get to this?
29:25What's the story?
29:26Exactly.
29:27This is incredible.
29:28Jamie, that's you.
29:29Okay, that's me.
29:30When I was a kid, I had an original Kawasaki stand-up jet ski.
29:32I loved it as a kid, and it truly was that freedom on the water.
29:36In the mid-90s, I started a company, right?
29:39We build industrial automation, but I always wanted to come back and build marine products,
29:44and I came back to this jet ski because it meant so much to me when I was a kid.
29:47Jamie, when did you build this?
29:49Yeah, when did this company start?
29:50Okay, so we started in 2021.
29:51Okay.
29:52We built about $2,047,000 as of last week on the project so far.
29:56To be exact.
29:57And was that from you guys, or did you raise money?
29:59Pretty much self-funded.
30:00Now, we started a WeFunder campaign late last year.
30:03So you don't have production of these yet?
30:05We're not in production.
30:06We're on pre-order.
30:07We're not.
30:08So is this your prototype?
30:09This is one of the prototypes.
30:10How did you create that?
30:12Who built that for you?
30:13Yeah, okay, so we're a machine-building company, right?
30:15So we know we have mechanical, electrical, and software engineers.
30:18We have a giant machine shop.
30:19And this is a separate business then?
30:20It's one business.
30:21So your company that you have right now is including this.
30:24It's the one company.
30:25All of that company you are throwing in with this product to us.
30:28Correct.
30:29What are you going to sell this year with everything?
30:32So the last five years, let me just go through that.
30:34No, no, this year.
30:35Okay, this year.
30:36Well, let me just say, it's $3.5 million the last five years.
30:39Last year, we did $2 million.
30:41So far this year, we've done $1 million.
30:44So what is it going to cost to make, and what are you going to sell it for?
30:48We're accepting pre-orders right now.
30:50So we've sold 19 pre-orders so far.
30:53We just opened it up this year.
30:5419.
30:5519.
30:56To the consumer, it's going to be $25,000.
30:58Our cost to make, it's going to be $12,500.
31:01So it's $25,000.
31:02So it's $25,000.
31:03But Robert, we haven't had any pushback on the price.
31:05Hold on.
31:06A jet foil, any one today.
31:08Okay.
31:09The most high-end one, like the fastest one, is $15,000.
31:14Yeah.
31:15And now they've dropped down to about $5,000.
31:17Oh, wow.
31:18Why do you think this is going to sell at $25,000 price point?
31:20Right.
31:21None of those will offer four hours of battery life, first of all.
31:24We have a 50-mile range.
31:26Can you change the price point?
31:28Could you get it to half price?
31:30Could you get it to $12,000?
31:32Our CFO actually said he thinks that we should, you know, make a smaller battery version that, you know, to get the price down.
31:39But you know what?
31:40So we started showing the shows and taking it to market, and everybody goes, yep, that's what I expected.
31:45Right.
31:46But you only sold 19.
31:48Well, that's pre-order, yeah.
31:49So we have to look at what is the consumer saying.
31:51Can I jump in for a second?
31:52I just want to...
31:53Yeah, sure.
31:54$20 million valuation is what you want.
31:56This is a very capital-intensive business, which has pre-orders, but no sales, requires a lot of money to manufacture and market.
32:05I can't even think of a structure that would make sense for me financially.
32:09For that reason, unfortunately, I'm out.
32:11So the pitch is a little confusing.
32:14I've got to be honest.
32:15The manufacturing, how do I figure it out?
32:17Love you guys.
32:18It's just not for me.
32:20Okay.
32:21Thank you guys.
32:22You guys are very credible on the manufacturing side.
32:24I get it.
32:25I would have preferred a different, pure structure.
32:28You're bending your head trying to figure out how to put it into this other company, which really has nothing to do with the pro or cons success.
32:35Well, it has everything to do with it because that's the company that manufactures.
32:38But the whole point is when you get to scale...
32:40All I hear on Shark Tank is landed cost, landed cost, landed cost, landed cost.
32:43No, no, no, no, no.
32:44But there are other...
32:45I feel that way too sometimes.
32:46You make things.
32:47Sure.
32:48You make things.
32:49Contract manufacturers, if you're going to get to scale, could make the whole...
32:51No!
32:52Absolutely not.
32:53Hey, well, look, look.
32:54We designed this for us to make.
32:56I got it, but you stuck it inside a really convoluted deal.
32:59It's still convoluted.
33:01Never argue with the investor.
33:04Yeah.
33:05Not smart.
33:06Yeah.
33:07I mean, that's...
33:08You know, they have an opinion.
33:09You may not agree.
33:10You're barking at me.
33:11I don't like that.
33:12No, I'm sorry.
33:13I saw something I don't like there.
33:14800K is a lot of dough, and it's not clear to me how I'm going to get my money back.
33:19I'm out.
33:20Listen, guys, I think it's very cool.
33:26I like the concept, but you are way out of your league for price.
33:31Mm-hmm.
33:32So I'm sorry.
33:33I'm out.
33:34Yep.
33:35Okay.
33:36All right, so I'm obsessed with the product.
33:37I want to order two right now for my beach house.
33:40Two problems.
33:41Okay.
33:42Okay?
33:43800K is just a little tiny, like, drop of what you're going to need.
33:47So what that means is your investors, if I invested, you'd be coming back to me, like,
33:51tomorrow for more money.
33:52Two, the way you spoke to my friend over here, that's a problem for me.
33:57Yeah.
33:58When I look at founders, I need a founder who's going to be receptive to input, who's going
34:02to be able to hear criticism and be able to have collaborative conversation.
34:06Yeah, I'm sorry for getting excited.
34:07It's okay.
34:08I'm an excitable guy.
34:09There's excited, and there's passionate, but there also can be disrespect.
34:12For me, I just can't do that.
34:14But I wish you all the best, but for that reason, I'm out.
34:19Guys, thank you very much.
34:21Thank you, guys.
34:23Thank you, guys.
34:24Thank you, guys.
34:25Good luck.
34:26It's a really tough pill to swallow when you know they love the product.
34:29Yeah, right.
34:30I think the Sharks missed out on a terrific opportunity.
34:31We're a great thing to bet on.
34:32We're just going to keep at it.
34:33There's a setback, but setbacks happen.
34:37Next into the tank is a cold one made just for the dads.
34:56Sharks, I'm Ryan from Washington, D.C.
35:08This is my friend and co-founding Father Craig from Clifton, Virginia.
35:11And we're seeking $250,000 for 5% of dad strength brewing.
35:19Sharks, we love craft beer.
35:22Craft beer doesn't love us the way it used to.
35:267%, 8%, 9%, 10% alcohol.
35:28It keeps getting higher.
35:30And the hangovers keep feeling lower.
35:33Guys, being drunk around your kids, not cool, especially off of one beer.
35:38So we partnered with a world beer cuff, gold medal winning brewer.
35:42And we created America's first, dedicated, low ABV craft brewery, Dad Strength.
35:48Brewed so you can crush a few without getting crushed.
35:532.9% alcohol.
35:55That is the magic sweet spot where you catch a little buzz.
35:58But you don't catch a little hangover.
36:00Did we mention it's just 94 calories?
36:03Dad Strength does not cause, Dad Bod.
36:05I love it.
36:08Which one of you sharks is coming with us?
36:10Now sharks, in front of you, you have our West Coast IPA,
36:14our Juicy IPA, and our soon to be released Hazy IPA.
36:20Ooh, this is very good.
36:22Glad you like it.
36:23Oh, that's really good.
36:25And how much of these two have you sold?
36:27So we've sold $230,000 to date.
36:30Since when?
36:31Ten and a half months.
36:33We've been in one market.
36:35Most of that time?
36:36What market is that?
36:37What market?
36:38Washington, D.C.
36:39We're the founding fathers of Dad Strength.
36:40In retail?
36:41In retail?
36:42Yes, sir.
36:43And where in Washington?
36:44How did you sell?
36:45Yeah, how did you sell?
36:46So these dads, after a year of product development, launch in D.C. where you're allowed to self-distribute.
36:50So we loaded up Ryan's pickup truck, and it was two dads selling to all the independents in D.C.
36:57And we're doing that strategically because you sell to the independents, you get a little data, a little momentum, and you throw a Hail Mary to Whole Foods.
37:05And?
37:06Then you're in Whole Foods, and that's November.
37:09Next thing you know in December, you're in Trader Joe's.
37:12Oh, come on!
37:13Then, in January, we are in giant.
37:17February.
37:18Wow.
37:19Safeway.
37:20And how is the sell-through going?
37:22It's going quite well.
37:23Our chain rebuy rate is 100%.
37:25Hello.
37:26Because, you know, guys, there's no competition in the beer space.
37:30Wait, wait, wait.
37:31There's no competition in the low ABV beer space.
37:35You walk down the beer aisle, and it's like 9, 8, 7, 6, 5, 0.
37:41It's like having no 2% milk.
37:43It's crazy.
37:44Getting a few stores and getting share in the beer business, that is a tall order.
37:50It's brutal.
37:51So, I mean, what's the game plan, big dads?
37:54Well, you bring up a great point, right?
37:57So, Craig and I have known each other a very long time.
37:59We went to college together, so we've known each other over 20 years.
38:02Craig ran restaurants prior to this.
38:04Hey, Graham, come on.
38:05I built a chain of restaurants that I sold for experienced entrepreneurs.
38:09What were they called?
38:10Big buns, damn good burgers, but I have a knack for picking really hard businesses.
38:17Did you do well with it?
38:18Well enough.
38:19Not well enough to be sitting in your all's chairs.
38:22And you?
38:23What were you doing before?
38:24So, I worked in advertising and branding.
38:26I launched my own agency.
38:27I worked with giant brands, and I rode shotgun for a lot of rocket ships.
38:31And I said, I want my own rocket ship.
38:33So, that's when we came up with this idea.
38:35Speaking my language now, bro.
38:36Yeah.
38:37No motorcycles, baby.
38:38Only rocket ships.
38:39Why is this business worth $5 million today?
38:43It goes back to that growth story.
38:45This week was a 500 case week.
38:48What does that translate to for a revenue?
38:50So, this year we're going to be projected to do $500,000 in revenue.
38:54I'm in the wine business.
38:55I'm in the tequila business.
38:56I know how tough they are.
38:57I don't have beer.
38:58But if I was going to do beer, you're as good a crap shoot as anybody.
39:02I will do this deal for $250,000.
39:05I want a third.
39:0633 and a third.
39:07Talk about greedy.
39:08$250,000 for 33%.
39:10Are you entertaining that?
39:11Yes.
39:12No.
39:13Oh.
39:14No.
39:15Do you want to think about it?
39:16I would buy Ryan's third for $250,000.
39:18And I wouldn't sell it.
39:19I don't hear any other offers.
39:21I'm trying to get to an offer.
39:23So, I'm thinking this is a $250,000 for 10% type thing.
39:26But I don't want the risk on the whole $250,000.
39:28I'm looking for someone who agrees with me on $250,000 at 10%.
39:32So, $2.5 million valuation instead of five.
39:35I'll go in with you.
39:36Like, I'll split to $250,000.
39:38So, $125,000 from each of us for 10%.
39:42But let me jump in.
39:44Make it a little spicy.
39:53All sharks are still in.
39:59Craig and Ryan have two offers on the table from Kevin and Rashawn and Robert for their low-alcohol beer company, Dad Strength Brewing.
40:06But Lori also seems interested.
40:08I would like to be a part of it because I think that I can help it.
40:11But, um, you guys tell me.
40:14Where were you at?
40:15We were $250,000 for 10%.
40:17So, uh...
40:20If we get a third shark in now, now I'm way down.
40:24I'm, like, I just don't...
40:25That is true.
40:26I don't own enough at that point.
40:27It needs to be at least 15% if we add a third shark.
40:29Yeah.
40:30I think we need to lift that floor up just a smidge, though, because we've done a lot of work.
40:34Which floor?
40:35The money or the equity?
40:36The valuation.
40:37Well, we can also...
40:38How about we do $300,000, $100,000 each, and we get our 15%.
40:41Ooh, I like that.
40:42Ooh.
40:43Ooh.
40:44Yes.
40:45Lori, would you do that?
40:46Yeah.
40:47All right.
40:48So, I understand that's a nice number.
40:49100, 100, 100.
40:50Amazing to have three sharks, by the way.
40:51Yes.
40:52Dad shark.
40:53Would you all be open to $100,000 each, $300, or 4%, 4%, 4%, and I know what you're thinking.
41:10You are investing in us, and you're looking at two dads who are not going to stop building
41:17this thing.
41:18Guys, I have seven-year-old twins, so as a dad, I mean, you hit my sweet spot.
41:23I don't know about the two of you, but I'm okay with the 12%.
41:27I am, too.
41:28You started at 5%.
41:29I'm okay with 12%.
41:30Yeah.
41:31Well, then.
41:32I'm in.
41:33Can we have a deal?
41:34Congratulations.
41:35Let's go, man.
41:36Oh, my God.
41:37Listen, you guys are so good at sales, man.
41:38Thank you so much.
41:39I just want to drink a beer with you guys.
41:40Let's have a beer, man.
41:41Let's have a beer.
41:42Whoa, man.
41:43Where's your beer?
41:44Here.
41:45All right.
41:46Oh!
41:47That's great.
41:48Cheers.
41:49Cheers.
41:50Good job, man.
41:51Cheers.
41:52Let's do it.
41:53Great.
41:54Now Rashawn's going to just get the checkbook out.
41:55I should negotiate before I drink.
41:56Oh, my.
41:57That happens quick.
41:58I cannot believe it.
41:59Good job, Beth.
42:00We got three sharks.
42:01One big deal.
42:02One small set for death.
42:03One giant leap for death.
42:04One big deal.
42:05One small set for death.
42:06One giant leap for death.
42:07One big deal.
42:08One big deal.
42:09One big deal.
42:10One big deal.
42:11One big deal.
42:12One big deal.
42:13One big deal.
42:14One big deal.
42:15One big deal.
42:16One small set for dads.
42:17One giant leap for beer kind.
42:18Yeah.
42:19Ha, ha, ha.
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