- 10 hours ago
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00:00Tonight, we're here today to sell 6% of our business for $1,000,000.
00:08Whoa.
00:09Wow.
00:10Oh, yeah.
00:11Hello.
00:12Is that the wrong number?
00:13Arlene, you're at the heart of this.
00:15Oh, jeez.
00:16I told you not to tell anybody, Larry.
00:19How do we get faith that you won't get bored with this again?
00:23I don't know.
00:24How do you get insurance on what somebody is going to do with their free will?
00:30When you're having your hands up on the wheel?
00:36I'm a child.
00:40I'm a child.
00:51We are underestimated a lot, which we try to use to our advantage.
00:55Like, you know, I'm just a girl.
00:57But then slaying business.
00:59I think the part that I would be most nervous about is making sure that, like, our girl math is math and math.
01:07Now, let's see if these two friends can dish out a taste of success in the den.
01:12Hi, Dragons. I'm Joanna.
01:14And I'm Melissa.
01:15And we're from Taste the City in Calgary, Alberta.
01:17And we're looking for a $300,000 investment for a 10% stake in our business.
01:22Did you know that 100% of people hate deciding where to eat?
01:26Yep.
01:27So, Dragons, let Taste the City guide you via text message to three to five restaurants all within walking distance in a pre-timed, pre-paid, curated tasting experience.
01:37All right, we got the first message.
01:39Hey, Dragons, your tasting starts now at The Vault.
01:42Wes, Arlene and Michelle, we'd love to invite you to join for a tasting.
01:46Enjoy, Dragons.
01:48Through their website, customers can book their self-guided foodie tour for up to six people and select by city and neighborhood.
01:55They can choose to visit three, four or five restaurants.
01:58Cheers.
01:59Cheers.
02:00Oh, here's your first taste.
02:01Oh, wow.
02:02Albacore tuna tostada.
02:03This looks really good, actually.
02:04A little bit of avocado mayonnaise.
02:05Where they get to try one curated dish at each spot.
02:08We're fine over here.
02:09And each location is a mystery until they're notified of their next location through the text-to-customer platform.
02:16Delicious.
02:17Oh, I see another message coming.
02:19Time to take a hot girl walk, everyone.
02:21Your next location is the picture entrance.
02:24Packages start at $65 for food only and go up to $160 with an alcohol add-on.
02:31Taxes and tip are included.
02:33That looks really good.
02:34I'll take Wes's drink.
02:35He doesn't drink.
02:36Cheers again.
02:37Cheers again.
02:38And so now you would get your final text message, essentially.
02:41It says, go home.
02:43Say thank you.
02:44Brian, go to Manhattan.
02:46Oh, are you offering?
02:48Yes, please.
02:49Such a gentleman, Wes.
02:50Oh, service with a smile.
02:52Thank you, my friend.
02:53There you go.
02:54Great.
02:55So the concept, if I get it, is great for businesses because restaurants get new clientele who are sampling them.
03:02And great for the customers who go, wow, you're selling an experience.
03:07I love that you said that because when I first was pitching to restaurants, I was pitching as a tech company.
03:12No one would talk to me.
03:13No way.
03:14And so I dropped it and now we come in as a dining experience, a marketing experience.
03:18So why are you guys so fun?
03:21A can of energy.
03:23What's their story?
03:24I was a corporate event planner in my past life.
03:28Oh, okay.
03:29I got laid off when I was at home with my two young kids and decided to take the opportunity to go back to school.
03:35I was studying cultural sustainability in cities and how much local restaurants really support that pillar of sustainability in a city.
03:42And so I went and studied abroad in Italy and I wanted to do a food tour, but it was 125 euro plus tip.
03:50Whoa.
03:51When I tried to go and recreate my own hop around experience, it's impossible to do it.
03:54You have the rigmarole back and forth with what you want to order, waiting for the bill.
03:58Yep.
03:59And so I came back.
04:00I said, how can we digitize this process?
04:02Built it.
04:03Good for you.
04:04Amazing.
04:05Wow.
04:06Scrappy.
04:07Tested it out and we piloted it in Calgary.
04:08And what was your background, Melissa, before?
04:09I am a single mother of three, so I'm always working my butt off wherever I can make money, wherever I can hustle.
04:15Busy.
04:16I can't win awards and organic social media without spending any money.
04:19I was able to get a company 60 million views within six months and I've been able to take our stuff to the same level.
04:24Partnership made in heaven sounds like it.
04:26Honestly, like we really are.
04:27It sounds like an event planner meets storyteller.
04:29Yeah.
04:30So in Calgary, for example, how many restaurants do you guys have?
04:33So we started with five and now we have over 35, all in a concentrated area.
04:37Wow.
04:38How do you make sure, first of all, we as diners show up on time, the restaurant makes sure the table's ready and haven't sacrificed a high margin table?
04:44Yeah, I would say we're actually the opposite in the sense that we fit so well in between reservations for a restaurant so that when they're holding a table they know, oh wait, you know what, we can seat them because they're going to be about 40 minutes and we already know what they're going to be ordering and they can move on.
04:57So how much does each restaurant get?
04:59We're paying their menu price.
05:01So we're essentially paying their menu price plus 20% gratuity as well.
05:05And then we add our 40% margin on top of that.
05:07So they're not really losing anything by doing this, like the restaurants, right?
05:10No, it's free for them.
05:11They love it.
05:12And so we find that it's super helpful in that capacity to onboard more restaurants.
05:16So I get the concept, but let's go big picture.
05:18What are the overall sales?
05:19Everybody gets real hungry when they start talking to us.
05:21I know.
05:22We get it.
05:23We've taken our $25,000 MVP and we've 10X'd it to $250,000 in sales in our first year, mostly in Calgary alone.
05:30And what will you do in 2025?
05:32Because we've been able to scale now with five cities across Canada, we're aiming for $1.2 million this year.
05:38Let's see if you have as good an answer to why you're worth $3 million today.
05:42Oh, wow.
05:43I love that.
05:44We're actually worth 10, so just so you know.
05:46We really feel like, especially the scalability of it, because often it's locals who are actually using our stuff.
05:52Oh, for sure.
05:53We haven't even tapped to tourism yet.
05:55And so the fact that locals are going and wanting to make full reservations later is huge.
06:00But you're not going to get there without the $300,000.
06:03You're asking us to participate in future opportunity that only will happen if we give you capital.
06:10That may happen.
06:11Yeah, that may happen.
06:12Well.
06:13So, like, your valuation is really crazy.
06:16Really, really off.
06:20I know you think that.
06:21That's okay.
06:22You're not just investing in Taste the City.
06:24You're investing in us as founders, and we're the kind of girls that are going to get the job done no matter what.
06:29Okay, so I'm going to give you a little bit of my gut reactions on this.
06:32Yeah.
06:33Because I spent a lot of time selling technology to restaurants.
06:35Yeah.
06:36We know.
06:37Restaurants are overwhelmed with the amount of technology.
06:41Absolutely.
06:42And marketplaces are notoriously hard to build because you need an equal number of restaurants
06:47in a geographic area, plus users in that geographic area.
06:51Yeah.
06:52What I'm concerned about here is that your margins are actually very thin for the amount of work you're going to have to do.
06:58So, for that reason, I'm out.
07:02Ladies, first of all, I think you guys have built a really great idea, a great concept.
07:07But my preference is to invest in the asset itself as opposed to the people.
07:12But I'm going to be out for that reason.
07:15I don't think your value proposition is worth $3 million today.
07:19And I don't see how this is proprietary yet.
07:21I'm out.
07:22Fair enough.
07:23Is there a franchise model here?
07:25We have thought about it kind of like in the affiliate platform side of things and like maybe not call it a franchise.
07:32And that's where we go through the food bloggers and we really work with the influencers.
07:36We eventually want to build an affiliate platform where they can build an itinerary.
07:40And it's kind of like, you know, hey, come with me.
07:43This is my day.
07:44These are my restaurants.
07:45And then you can like shop their day.
07:46What are you thinking, Brian?
07:48I'm thinking.
07:50Sipping that martini.
07:52I mean, from my perspective, I think there's I think the business model isn't yet proven enough.
07:59You know, you need somebody on side like, you know, the dragon sitting to my left here who can take this model and really scale it.
08:08So for that reason alone.
08:10Don't say it.
08:11I'm sorry, but I'm going to be out.
08:12I'm sorry.
08:13Your valuation is way too rich, I think, for where you're at right now.
08:19And I think I'd have to take a much bigger piece of the company to make this worth my while.
08:25I would do 300,000, but I would want 30% of the company.
08:32Wow.
08:34It's like a man's offer right there.
08:4030%.
08:42I think that's actually a very fair offer.
08:45We were wondering if you'd be interested in doing a 20% equity stake for the 300,000.
08:57I gave you a really, really fair offer right out of the gate.
09:00I have to stick to it.
09:02What do you think?
09:04You should take the deal.
09:06Okay, let's do it.
09:09Yeah, I think we'll take the deal.
09:10All right.
09:11Amazing.
09:12All right.
09:13Taste the City.
09:15Smart decision.
09:16Congrats.
09:18Lissa, thank you.
09:20Good job.
09:21Thanks so much.
09:22Woo!
09:23Cheers.
09:24Cheers to Taste the City.
09:25Cheers to Taste the City.
09:26Woo!
09:27Okay.
09:28We did it.
09:30We bonded a dragon.
09:32You just held firm.
09:33I had to.
09:34You know what?
09:35It's going to require a lot of work.
09:36There it is.
09:37And it's a risk.
09:40Just like a lot.
09:41Yeah, I know.
09:42I know.
09:43In a good way.
09:44In a good way.
09:45In a good way.
09:47Coming up.
09:49Yeah, I own the domain don'tstartabusiness.com because my advice, my advice to new entrepreneurs
09:54is don't do it.
09:55Don't do it.
09:56Don't do it.
09:57That is terrible advice.
09:58That is.
09:59Don't do it.
10:00Ready to put his best foot forward, a Calgary entrepreneur hoping his pitch will knock the
10:18dragon's socks off.
10:20Honey, have you seen my favorite pair of socks?
10:22They're the ones with the eggs on them.
10:23Oh, yeah.
10:24Good.
10:25Ugh.
10:26Wait a minute.
10:27This works.
10:28And that's how Friday Sock Co was born.
10:29Yes.
10:30Oh, I love Friday Sock Co.
10:31Hi, Dragons.
10:32I'm Adam Thompson.
10:33I'm from Calgary, Alberta.
10:34Yay.
10:35I'm here seeking $300,000 for 15% of my business.
10:40Friday Socks makes purposely mismatched socks for the whole family.
10:45We ethically manufacture in northern Italy through partnerships with five small family-owned
10:58factories.
10:59I started the brand 10 years ago with $5,000 on a credit card.
11:03And in the past eight years, we've done over $10 million in revenue while giving back
11:07over $200,000 to non-profits.
11:09I truly believe we're at the beginning of our journey.
11:12And with your expertise and investment, I'm confident we can take the next step.
11:17I brought a few pairs for each of you.
11:18I hope they knocked your socks off.
11:20My kids have never worn match socks their entire life.
11:25That's why I love this company so much.
11:27It drives me nuts when my girls do that.
11:29Grapes and wine.
11:31Mine have got an airplane and a cloud because I'm always on an airplane and flying.
11:36I can rock these.
11:37Aren't there many mismatched brands out there?
11:40We're the only one in North America that does mismatched only.
11:43It's also a commodity, right?
11:44It is.
11:45People need socks.
11:46It's like the underwear business.
11:47You're going to sell lots as long as you build a brand.
11:49So why is it called Friday Sock Coat?
11:51I was in a corporate environment and Friday was my favorite day of the week.
11:55But I'm an entrepreneur now and I realize that every day is a Monday.
11:58Every day is Monday.
11:59It's so ironic.
12:00And so what did you do in the corporate world?
12:02I was a headhunter.
12:03I did sales.
12:04So you haven't always been an entrepreneur.
12:06No.
12:07What made you become one?
12:08It was lack of options.
12:09I left high school in grade 11.
12:11I lied on my resume to get some decent jobs.
12:14Ended up in sales.
12:15Me too.
12:16Yeah.
12:17And I love design.
12:18And so you just decided this was something you were going to pursue.
12:20Yeah.
12:21I had a different idea.
12:22And then this took off and started to like a snowball rolling down the hill.
12:26And next thing I know, I'm, oh, I've got a business.
12:28Can you run through your unit economics?
12:30Yeah.
12:31So cost of goods is $3.30.
12:33Shipping can be $0.50.
12:34How much does one retail for?
12:36$16.98.
12:37That's an expensive pair of socks.
12:40What did you do in sales this last year?
12:43So we did $1.7 million.
12:45And two years before that?
12:47$1.6.
12:48Okay.
12:49So sales are flat.
12:50Did you make money on the $1.7 million?
12:53Yeah, $325 after I paid myself.
12:56And how many retail outlets are you in right now?
12:59We're about 600.
13:00Canada and the U.S.
13:01So why are sales flat?
13:04We don't really do a lot of digital marketing, which I think is the huge opportunity here.
13:07I really think we've failed in getting the word out better.
13:10And I've acquired three other brands in the past three years.
13:14Oh, why acquire them?
13:15Because I want to build a wholesale distribution hub with multiple brands.
13:19The brands you're talking about are just other gift brands.
13:22So we have a candle company.
13:23We have colourful matches and apothecary jars.
13:26We have a couple greeting card lines.
13:28How do you finance those transactions?
13:30Cash flow.
13:31So tell me how much do you have in the bank?
13:32Over a million.
13:33A million?
13:34Mm-hmm.
13:35So you've got a million in cash.
13:37Are you trying to acquire businesses and become like a mass manufacturer of goods or what?
13:42So we're trying to be a distributor through having lots of different brands under one roof
13:47and at the same time grow a corporate gifting side of the business.
13:51Adam, my experience is entrepreneurs find shiny objects because they haven't found the one that they can go all in on.
13:58I've been through some life stuff in the last couple of years, which has really kind of had me struggling mentally.
14:03Not to any crazy degree, but I just feel reinvigorated now that that's been sorted.
14:09And that's fair.
14:10I think people underestimate how hard it is on you when you go through personal strife as well as trying to be an entrepreneur.
14:17Yeah, I own the domain don'tstartabusiness.com because my advice to new entrepreneurs is don't do it.
14:23Don't do it.
14:24Don't do it.
14:25That's terrible advice.
14:26That is.
14:27And it's like, it's the hardest thing ever.
14:28It's changed me as a human, for sure.
14:30Yeah.
14:31First of all, very empathetic.
14:32When I've had hard personal years, I've had hard business years.
14:35But like, what are we buying into as an investor?
14:38Yeah, I think first and foremost, you're investing in me.
14:41And secondary to that, it is the stock company.
14:43And then the additional thing is the wholesale distribution hub that I would really like to build.
14:47Adam, you're bored with the business.
14:49Yeah, totally.
14:50That's really what it is.
14:51I am bored.
14:52It's that I am in the weeds a little bit too much.
14:54They're stuck.
14:55I'm working on my attention deficit disorder.
14:57I'm like doing things to try to improve my impulsivity and all that stuff for sure.
15:02How do we get faith that you won't get bored with this again?
15:06I don't know.
15:08How do you get insurance on what somebody is going to do with their free will?
15:15I think what you would become, Adam, is a merchant.
15:18You have figured out some products that you can, you know, buy for low and sell for high.
15:23And that model was actually okay a decade ago.
15:27And then the internet and e-commerce showed up.
15:29And everything became a giant price commoditization engine.
15:32I think you have to build a brand.
15:34I think you have to focus.
15:35And so for that reason, I'm going to be out.
15:37Adam, I think you want to be a dollar store kind of guy.
15:39It seems like it, right?
15:40No, I disagree.
15:41Independent retailers across Canada are struggling.
15:43And we're able to, with a multitude of brands, really lower their costs.
15:47And incentivize them to come to one place.
15:49The idea is a good one.
15:51The only disadvantage to that is that the pitch is on socks, right?
15:56So for that reason, I'm going to be out.
16:00Adam, I can relate to you.
16:04I've spent, you know, the first 10 years of my business life looking for the next big thing,
16:09when really it was right in front of me.
16:11I don't think you need an investor.
16:13You need a partner.
16:14I think you need your implementer to be the hyper-focused, disciplined person that says,
16:19Adam, this is a great idea, but not right now.
16:22I'm going to be out.
16:24I just don't see a clear path or strategy to making this the Canadian sock company that everybody thinks of.
16:33So I'm out.
16:35I do think we can get there with digital marketing.
16:38You've had 10 years.
16:39I really appreciate your honesty.
16:44You've been very clear about the things that have gotten in your way, including yourself.
16:49It's not easy.
16:50Appreciate it.
16:51But I think you're ambitious.
16:52Ambition is really a good thing, but so is focus.
16:56I loved your brand before.
16:57I will continue to buy your brand.
16:59But I'm going to be out.
17:00He's making really good money.
17:06But he's bored.
17:07I'd say he's more stuck than he is bored.
17:09But I think he's also missed the moment to make this a massive company.
17:15You guys are here with your dads.
17:17He put $1.5 million of your inheritance into this business.
17:20How do you guys feel about that?
17:22I think he's gotten this far, and I trust his thought process, and I'm fully backing him through this whole thing.
17:29Next up.
17:42This is nice.
17:43I'm glad I'm here with the boys.
17:45I just told them, have fun with it.
17:47No matter what happens, just seize the moment.
17:49Enjoy it as much as you can.
17:50This is awesome.
17:51Let's play some golf.
17:52This father and his sons are stepping into the den with a pitch that's anything but par for the course.
17:58Hello, Dragons.
17:59Hi, Dragons.
18:00My name is Sam.
18:01I'm from Montreal, and I'm the founder of Break70.
18:03I'm here today with my two boys.
18:05I'm Sam Jr., the president of the company.
18:07And we are here today seeking $350,000 in exchange for 15% equity in our golf tech company.
18:13I'm Rod, COO.
18:14And as you all may know, golf is one of the most widely played sports in the world, enjoyed by people of all ages and skill levels.
18:23Putting is the easiest part of the game you can improve in order to better your overall school.
18:29There's hope for me.
18:30Yay.
18:31But here's the problem.
18:32Judging the greens.
18:33A lot of golfers rely on a combination of techniques.
18:37From getting low to the ground behind the ball.
18:39Yep.
18:40That's what I do.
18:41To walking along the putting paths.
18:43And some even try to feel the slope with their feet.
18:47All with one purpose.
18:48Figure out where to aim the ball.
18:50Or to try to look like a professional.
18:52So Break70 is introducing the world's first smart golf insole designed specifically to take the guesswork out of putting.
19:00A smart golf insole.
19:02I thought I had heard of everything before.
19:04And we'd actually like to ask Wes to come up and demo with us.
19:08The insoles are already in your shoes.
19:10Oh, they're in my shoes.
19:11Wow.
19:12Wes, how's your game?
19:14Well, we'll see after this.
19:16Oh, Wes got game.
19:18And your socks don't match at all.
19:20Don't match your shoes.
19:21Okay, let's do it.
19:22The sensors in each insole capture distance, slope, and aiming data.
19:27And is sent to the player's phone through the Break70 app.
19:30It tells you you have to aim the ball 11 inches right of the pit.
19:35So I have to know what 11 inches is?
19:37Exactly.
19:38Okay, got it.
19:39Yeah, you gotta know something.
19:41The app analyzes the data and recommends the best aim point for a successful putt.
19:47Okay, a little bit to the right.
19:49There you go.
19:50A little harder.
19:51I gotta hit it harder, okay.
19:52Try again with that other ball here, yeah.
19:53Got it.
19:54I'm just taking the slope into account.
19:55Huh.
19:59Get in there.
20:00Oh, baby!
20:01Okay, that's impressive.
20:02All right.
20:03Well done.
20:04Zach, can you do that again?
20:05This game is easy.
20:06This game is easy.
20:07Nothing to it.
20:09Take a bow, take a bow.
20:10Nothing to it.
20:11Chancellor.
20:12That's why they call Chancellor.
20:13We're not biting on that one.
20:15Did it just tell you the path to take on your phone?
20:19Yeah.
20:20It didn't buzz anything especially in your foot?
20:22Nope.
20:23With the algorithms that are proprietary to us, it figures out the exact slope.
20:27So if you missed like Wes did, you could take another putt and it would say, you idiot.
20:30You just had to kill you.
20:32But that was pretty impressive that Wes made that putt.
20:35Thank you, Brian.
20:36Isn't this cheating?
20:38Isn't this cheating?
20:40It felt like you were cheating.
20:42It's a training aid more than anything, right?
20:45A training aid.
20:46That makes sense.
20:47I just think it's like a lot of things to go right to use this training aid.
20:52The insole needs to be in your shoes.
20:53The insole needs to be charged.
20:54The app needs to connect.
20:55The Bluetooth needs to connect.
20:56The measurements need to work.
20:58Then you got to do the reading and then you actually have to execute the putt.
21:03So I didn't go ahead and drop the money foolishly without doing some research first
21:08and getting validation.
21:09It comes from the medical field.
21:11It's like one of the most advanced on the planet.
21:14It's used in orthotics.
21:16Well, smart.
21:17So you took the technology off the shelf and you used it in a different way.
21:21We taught it to play golf.
21:22Yeah, exactly.
21:23It's a big market because most golfers are horrible.
21:26Actually, we went to the PGA show in 2024 and we demoed it for the first time.
21:31We probably showed it to a thousand people and they were all dropping their jaw.
21:36They thought it was the greatest thing.
21:37Did they all buy it?
21:39So we don't have any product yet.
21:41We still haven't launched.
21:43It took effort and it took a lot of money.
21:45And I think we could sell a ton of these.
21:47How much have you invested here?
21:49How much has it taken to get here?
21:51Well, not that much actually.
21:53How much have you invested this far?
21:55$1.5 million.
21:58And you think that's not much money?
22:00Well, no, that's a lot of money.
22:02But to do something like this...
22:04Was this your personal money?
22:05Yes, ma'am.
22:06What does the product itself actually cost?
22:08What am I paying for the insoles?
22:10Landed for us is $60, but we plan to retail it at $299.
22:15Have you guys approached like Gulf Town and the golf stores to say,
22:19is this something that they would carry?
22:21It got shown to Dick's Sporting Goods.
22:23Okay.
22:24And they loved it.
22:25We're at the point we just got to get it in the market.
22:27So, Rod and Sam, you guys are here with your dads.
22:30He put $1.5 million of your inheritance into this business.
22:34How do you guys feel about that?
22:38I think he's gotten this far and I trust his thought process
22:41and I'm fully backing him through this whole thing.
22:44The fact that you're giving back and you're doing the business with your family
22:49is really, it's very heartwarming.
22:51But to put a long story short, I'm going to be out.
22:55Thank you, thank you.
22:56She's hanging out with Brian too.
22:58This isn't a guaranteed hole in one, Arlene.
23:01I'm going to be out.
23:03Okay.
23:05You've built something in a really hard space.
23:07This one's not for me.
23:09Because of that, I'm going to be out.
23:11So, I'm a recovering golfer.
23:14I love, hate the sport.
23:16And so, I don't underestimate how much golfers actually spend on things
23:20to improve their game and make it better.
23:22You have $1.5 million of your family's money that you put into this technology
23:27and you're going to do whatever you can to make it work.
23:30So, I'm betting on that.
23:32Okay.
23:33So, I'm going to make you an offer.
23:35$3.50, 20%, but I'm going to need 5% royalty
23:39until I get three times my money back and then the royalty falls off.
23:42That's a good deal.
23:44There might be a better deal coming, but I'm a better partner.
23:48I do think that you have done all the hard work.
23:53You've taken the time.
23:54You've invested the money.
23:55And now you just got to sell, sell, sell.
23:58And I think I can help you.
24:00I'll give you $350,000, but half of it in a loan and half of it $175,000 for 15% of the company.
24:10Can I consult with my guys over here?
24:12So, she's really giving you $175,000 for 15%.
24:15Okay.
24:16In a sense, your valuation is cut in half.
24:18$350,000 from Wes.
24:20It's actually better than you gave them.
24:22You think so?
24:23Yes, because you gave them value once, plus you gave 5% royalty.
24:26So, essentially, you're at 25%.
24:28I'm only at 15.
24:30Okay.
24:31You got it.
24:32Let's do this.
24:33Let's go.
24:34All right.
24:35Okay.
24:36You have two offers on the table.
24:38What did you decide to do?
24:40Oh, we have a counter offer for Mr. Wes.
24:43Mm-hmm.
24:44Would you be willing to do the $350,000 at 17.5%, keeping the royalty at 5% until you get three times your earning?
24:53How about 18%?
24:59You got a deal, sir.
25:00Yeah.
25:01Thank you very much for the offer.
25:03Good luck.
25:04Truly, truly, thank you.
25:05Thank you all.
25:06You're wearing those all the time.
25:07Thank you so much, sir.
25:08Yeah, don't worry.
25:10Thank you so much, sir.
25:11You guys are great.
25:12Thank you, thank you, thank you.
25:13Take care.
25:14Have a wonderful day.
25:15Tino Gallery.
25:16But you don't have them on now.
25:17Let's go, Wes.
25:18Let's go, Wes.
25:19Let's go, Wes.
25:20Let's go, Wes.
25:21Let's go, Wes.
25:22See if you learn from that app.
25:23Look at the break on that.
25:24Going, going, going, going.
25:25Oh.
25:26See?
25:27See, he's not wearing the shoes, but if he was wearing the shoes.
25:28But, guys, that's a two, right?
25:29Right?
25:30Cheater.
25:31That's a par right there.
25:32I grew up watching Dragon's Den.
25:47I think Dragon's Den was a big part of how I learned to be an entrepreneur, how I learned
25:52to pitch, how I understood what investors were looking for.
25:56The successful ones, they're not afraid to go to their factory.
26:01I am.
26:02We've, like, totally taken over.
26:03They're not afraid to work all night.
26:04They're not afraid to deliver their product.
26:05Hey!
26:06Hey!
26:07You got your Cabal Fresh Dock food delivery.
26:08Those are the people that win.
26:10And when we see someone that has that fight, that's willing to iterate and come back with
26:15more enthusiasm and more energy, I don't like to bet against those people.
26:19We got a deal.
26:20You got a deal.
26:21We got a deal.
26:22The trouble heart of Dragon's Den is that being on this show has changed the trajectory
26:26of many of these businesses for years to come.
26:29I love going down grocery store aisles.
26:32Let's go!
26:33And seeing the dozens of products that we have supported that are now for sale and being
26:38bought by Canadians.
26:39Pure Gum.
26:40A million dollar deal.
26:41Love Child.
26:42Happy Pops.
26:43OMG.
26:44Smart Sweets.
26:45Tara's an incredible success story.
26:47Holy crap!
26:48We've either funded them, encouraged them, taught them lessons.
26:51It is honestly one of the most rewarding parts of this show.
26:55Well done, Dragon's Den!
26:56Woo!
26:57We've had some huge businesses that came through these doors.
27:00Nix wears high-tech underwear are every woman's new secret weapon.
27:05Very pretty.
27:06And D.
27:07Oh!
27:08Balzac's Coffee Roasters.
27:10We're coming to have a coffee.
27:11Great, come on.
27:12That's fantastic.
27:14Holy crap, is this ever good.
27:15Whatever you need me to do, tell me what you want.
27:17I just want to buy you into your car.
27:18Oh my God, you love this, Jim.
27:19I love it.
27:20The men's underwear evolution sacks.
27:22With $250,000 of cash, I can make another $250,000.
27:25Give me a chance, you know.
27:26These companies went on to get massive valuation.
27:29It gave our brand a huge boost.
27:31From a start-up in Toronto to over 60 countries worldwide.
27:35That's like one big giant wad of gum.
27:38And massive exits.
27:39All right, you have yourself a deal.
27:40Beautiful.
27:41I hope my story just inspires anybody out there to build a business
27:45because you might be able to sell your company for $16.7 million also.
27:50We set a new record when we sold the majority of Knicks at a half-a-billion-dollar valuation.
27:54I pinch myself almost every day.
27:56I really feel that I learned about entrepreneurship through Dragon's Den
28:00and how bold it was to go out there to put yourself out there in that way.
28:04Selling meant that I made more money than I need
28:08and that I get to keep doing what I love.
28:14Coming up, what do you need $75,000 for?
28:17Marketing, marketing, marketing.
28:19The first thing you need, Larry, is sales, sales, sales.
28:22Okay.
28:23Next up, this Halifax entrepreneur hopes the Dragons will think his new innovation is a breath of fresh air.
28:42Hi, Dragons.
28:44My name's Larry Lang.
28:45I'm from Halifax, Nova Scotia.
28:47I'm seeking $75,000 for 50% of my company.
28:52Dragons, I've got some bad news.
28:56If you're a dragon, that means most likely there's a good chance that all of you have dragon breath.
29:05Yes.
29:06Yes.
29:07From all the fire we breathe.
29:09Oh, yes.
29:10You know, I've been watching this show for 20 years,
29:12but I've noticed never, not once, have any of you ever had gum or mints in your mouth.
29:18It's unprofessional in a business environment.
29:21So that's why I invent it.
29:24Da-da-da.
29:25I see edible mouthwash.
29:27What?
29:28Edible mouthwash?
29:29Edible mouthwash?
29:30It's 99.5% natural.
29:32It's very easy to use.
29:34You flip the cap, just squeeze a little in your mouth.
29:37It's a gel.
29:38Oh, goodness.
29:39Let it melt.
29:40What makes it unique is you can swallow it.
29:43Wow.
29:44Oh.
29:45So that means you can use it anywhere, anytime.
29:48Larry, what's in the .005?
29:51It's kind of ironic because it's...
29:5399.5% swallowable.
29:55It's a thickener, and it comes from the cells of green leaves, which sounds natural, but the process that they use is not a natural process, so then I can't call it.
30:06Okay.
30:07There's a tube there next to each of you.
30:09Squeeze just a little bit.
30:10Just a little bit.
30:11You just need a little bit.
30:12Swish it around.
30:13Okay, just a little bit?
30:14Hmm.
30:15That's it.
30:16It does have an instant peppermint refreshing taste.
30:18Well, it made a big difference.
30:19Like, I don't smell your breath anymore.
30:21Oh, okay.
30:22It kind of works, but it's quite thick.
30:25Yeah.
30:26That's why, really, I stressed you just need a little dab.
30:29A little dab will do it?
30:30Yep.
30:31It's nice to have it on your night table.
30:33If you want a morning kiss, you don't want to have a bad breath.
30:36That's a good idea.
30:37Yeah, I agree with you there.
30:38You don't want to leave the moment.
30:40Is that how you came up with the idea?
30:41I love that you asked me that question, because Arlene, you're kind of at the heart of this.
30:46Oh, jeez.
30:47I told you not to tell anybody, Larry.
30:50Larry, just wake up in the morning and go, Arlene, where are you?
30:53Larry, it was between us, man.
30:55Like, we have you to thanks for this.
30:57This is what you once said a few years back watching the show.
31:00Come up with an idea, a solution to a problem that people will pay for and then prove it.
31:06And so I was running that through my head.
31:08You know, what's something I deal with all the time?
31:10I did door-to-door sales for a couple of years.
31:12Never wanted to have gum or mints in my mouth.
31:15So what about an edible mouthwash?
31:17And so how much does it cost you to make it, Larry?
31:19It's $1.08.
31:21I'm going to house sales for $2.
31:23The retailer's getting it for $3, and then they're selling for $3.99.
31:27$3.99 on the shelf.
31:29That's pretty pricey compared to a pack of mints or a pack of gum.
31:33Not the big packs.
31:35Do you think this will last that long?
31:37You only put a little bit in.
31:39There's like 25 uses in there.
31:41Oh, maybe I did it wrong because on the back it says swish and swallow 40 mils.
31:45Yeah, I thought you had to do as a typo.
31:48Maybe we can work on that, yeah.
31:50You wouldn't want to do that.
31:52How much have you invested in this, Larry?
31:54The loan was $25,000 and I have $25,000 of my own money in it.
31:57Wow, that's a lot.
31:58$50,000, wow.
31:59That's everything I've got.
32:00Do you have any of that left?
32:02Things are getting pretty tight.
32:05Have you sold any yet?
32:07We just literally launched two weeks ago online.
32:10And I kid you not, yesterday I landed a regional distributor.
32:14I can send two tubes for $6.99 coast to coast, Canada Post.
32:19Larry, let's run through your unit economics again, like online.
32:23Okay, so you have $7 minus $2 of product cost.
32:26You have five.
32:27Three for the shipping.
32:28Okay, so now you've made $2.
32:30A dollar on each tube.
32:31Right.
32:32But you understand that when you sell things on the internet, you have to acquire the customer,
32:37which is going to be 20, 30, 40 bucks.
32:40Wow.
32:41You don't have an e-commerce business here.
32:43Okay.
32:44You're building an almost impossible business.
32:48So I'm going to be out.
32:49The good thing about being brand new is let's make it different.
32:55Let's make it work.
32:56I'm wide open to your professional, you know, your experience and how we can make this better.
33:01What do you need $75,000 for?
33:04Marketing, marketing, marketing.
33:06The first thing you need, Larry, is sales, sales, sales.
33:09Okay.
33:10And you need to start proving out that there's a market for it.
33:14I've been getting into some stores, different drug stores and so forth, but people look at it.
33:19What is it?
33:20Well, that's the problem.
33:21Edible mouthwash.
33:22It's confusing.
33:23Right.
33:24But that's all fixable, as you said.
33:26You're a gem, Larry.
33:27You really are.
33:28You're a real gem.
33:30I love that you're a 20-year fan of Dragon's Den and that you said, yeah, I'm going to go create something, find a need and sell it.
33:36But my biggest challenge, I think, is the product and the marketing.
33:40You're too early.
33:41I'm going to wish you well, and I'm out.
33:44So, Larry, you haven't sold it yet, right?
33:47Very little.
33:48Very little.
33:49Sales saves all sense.
33:52Okay?
33:53You put a lot of money into it, and you have to figure out the marketing plan to get it known to the customer.
33:59I'm going to be out.
34:00I see this pitch coming down to one question.
34:04If Tic Tac rolled across here before it was Tic Tac, would you guys have invested?
34:09Probably not.
34:10But if they came with sales, we would have been like, okay.
34:13That's a great, great answer.
34:14Fair enough.
34:15Because we're here to put accelerant on businesses, right?
34:18We're not here to build businesses for the entrepreneur.
34:21Right.
34:22I'm out.
34:23I love that this show inspired you and that it made you think about what else you could do with your life.
34:28And whatever part I played in that, I'm grateful for that.
34:32But as an investment right now, it's too early.
34:35Too early.
34:36Okay.
34:37Larry, I'm going to be out, but I will tell you what.
34:39I will sponsor you into my accelerator program called Venture Park.
34:43It is a six-month course.
34:46You'll get all the help you need in terms of getting into retailers.
34:49I will pay for your entrance into it.
34:51Wow.
34:52Arlene, I will take you up on that for sure.
34:54Thanks very much.
34:55Good luck.
34:56Bye now.
34:57Wow, that was really generous.
34:59You know what I like about him?
35:01He's got a great attitude.
35:02He does.
35:03That he does.
35:04You've got to go up to the plate and sometimes you strike out.
35:06But I'm not going to stop.
35:07I'm not going to quit.
35:09This debt isn't on San Diego's books.
35:12It's personal debt all by us.
35:13Personal debt.
35:14There are security guarantees on us personally.
35:16Yeah.
35:17Okay, so you owe your parents $6.3 million.
35:20Yep.
35:21Yeah, exactly.
35:38Coming in with cups half full, these entrepreneurs say their big innovation is here to filter out the competition.
35:46Hello, Dragons.
35:49My name's Matthew Gohl and this is my business partner, Michael Hutchinson.
35:53We're from Vancouver, BC, and we're here today to sell 6.25% of our mineralized water filtration business, Santa Via, in exchange for $1 million.
36:02Wow.
36:03Oh, yeah.
36:04Hello.
36:05Is that the wrong number?
36:06A million dollars, right?
36:07We talked about this.
36:09No, that was tap water.
36:12Oh.
36:13Oh.
36:14Hey.
36:15You know, not all water is equal.
36:17What?
36:18Actually, tap water can be filled with harmful contaminants and ordinary filters actually remove the essential minerals that your body needs.
36:26But Santa Via is different.
36:28Our patented two-stage filtration process first filters contaminants and then we add back healthy minerals or otherwise known as electrolytes.
36:37And today, we would like to show you the Santa Via difference.
36:40Okay.
36:42Ooh.
36:43Santa Via.
36:45I own that one on the left.
36:47Do you really?
36:48It's really cool.
36:49I love that.
36:50Cool.
36:51I love that.
36:52So, to do our demonstration, we actually have a special mineral indicator that when added to water is going to change color and reveal the presence of essential minerals.
37:02So, we're going to do a comparison of the current market leader and let's see what happens.
37:08Ooh.
37:09That's not a pretty color.
37:10As you can see, it turns yellow, which means that there is low or no mineral content.
37:15So, now let's add our mineral indicator to Santa Via water.
37:19Ooh.
37:20Ooh.
37:21Ooh.
37:22It turns Santa Via blue.
37:24Woo!
37:25Woo!
37:26Woo!
37:27So, remember minerals or otherwise known as electrolytes are good for you and optimal drinking water has lots of them.
37:33Santa Via offers a variety of filtration products from glass tabletop systems to shower and bath filters as well as filter replacements.
37:43They range in price from $25 to $300.
37:46It tastes like water.
37:47It does.
37:48But if you were to have tap water and Santa Via water side by side, you could definitely pick it out.
37:53So, fellas, tell me about your background.
37:55My family started this company in 2008.
37:58So, I literally grew up with this company.
38:00I know it through and through.
38:02And actually, Michael and I, we purchased the business from my family.
38:05Oh.
38:06And so, now it's basically us running it.
38:07Yeah.
38:08When did you do that?
38:09And for how much?
38:10So, the transaction went through in the middle of last year for $6.3 million.
38:15Wow.
38:16Okay.
38:17Ooh.
38:18How do you finance that acquisition?
38:20This debt isn't on Santa Via's books.
38:23It's personal debt held by us.
38:24Personal debt.
38:25There are security guarantees on us, personally.
38:27Yeah.
38:28Okay.
38:29So, you owe your parents $6.3 million.
38:30Yep.
38:31Yeah, exactly.
38:32Yeah.
38:33But it's done incredibly well from 2024 to 2025.
38:36Yeah, because look at your valuation.
38:37It's gone from $6.3 million to $16 million.
38:39So, I can't wait to hear what's happened.
38:41Let's see.
38:42We can talk numbers.
38:43Yeah.
38:44Yeah.
38:45So, 2022, we finished.
38:46Top line revenue was $5 million.
38:482023 was $8.
38:50And 2024, we finished at $12 million.
38:52Whoa.
38:53Some nice growth.
38:54What was your profits on that?
38:56We're at $1.7 bottom line after tax.
38:59And what are you going to do in 2025?
39:01We're already on track for $15.
39:03Wow.
39:04Our focus is the glass water system.
39:07We launched this about a year and three months ago.
39:11And it is by far the fastest selling product that we've ever had.
39:14It's very pretty.
39:15It's super pretty.
39:16It's beautiful.
39:17This is what will get us to $15 this year.
39:19Yeah.
39:20Yeah.
39:21The shower filter is going to get us to $20 next year.
39:22So, where do you see this in five years?
39:24$100 million.
39:25$100 million in five years.
39:27Yeah, definitely.
39:28Yeah.
39:29So, you guys bought this entire company for $6.3 million.
39:32Mm-hmm.
39:33You know, selling a portion of it a year later at a $16 million valuation.
39:37That is extremely opportunistic.
39:41I personally would feel like a sucker coming in at this valuation,
39:44so I'm going to be out.
39:47I don't think this is a business that I could help you grow
39:50to the number that you believe, the $100 million.
39:52I'm worried your competition's going to get onto this,
39:55and I'm going to be out.
39:57What are you going to use the money for?
40:00Retail expansion.
40:01So, when I joined, I saw that retail was maybe too big of a line item,
40:07and we really scaled back and focused on digital so that we could grow.
40:10We feel that this is the time to turn retail back on.
40:13No doubt.
40:14And that's where we come here today.
40:18You have it all.
40:19Utility, design, price.
40:21And the product just makes so much sense.
40:23And now you've just got to get it out to the masses, and I can definitely help you.
40:27I would offer you a million dollars for 7%.
40:30Okay.
40:31Okay.
40:32That's great.
40:33That's a great offer.
40:34I think so, too.
40:35So, I bought your product independently.
40:40I became pregnant.
40:41I did a lot of research on water and what you need to be drinking, and this is the product I chose.
40:45You know, I drove to Costco in Ottawa last summer, and I pitched them culture myself because we were determined to get them into every Costco store.
40:54So, I have some decent retail relationships.
40:57I don't need to drive to anybody.
40:59I sell about $100 million worth of product to Costco.
41:02I am Costco.
41:04I know what I know.
41:05I also sold billions of dollars of products online.
41:11I would do it for 8%.
41:14Okay.
41:15One more offer on the table?
41:20It's the Canadian innovation that just, it's really impressive.
41:24What you've done is so impressive.
41:26So, depending on my fellow dragons, if they want to go in on it together, I would say that we would do 1.25.
41:37For 10%.
41:38For the 10%.
41:39For three of us.
41:40Which is at a $12.5 million valuation.
41:42Which is what you did last year.
41:44Mm-hmm.
41:45Wow.
41:46Okay.
41:47Okay.
41:48Can we have half a minute to discuss?
41:50Is it okay?
41:51Yeah.
41:52Turn around and...
41:53Okay.
41:54Okay.
41:55Look at your options.
41:56Because we have basically...
41:57You have a million for...
41:58You have a million for...
41:59You have a million for...
42:00I want three dragons, but 10's too much.
42:02Yeah.
42:03I want to say...
42:04Three...
42:05For seven...
42:06And eight...
42:07For seven...
42:08And eight...
42:09For seven...
42:10So, we want to propose a counter offer.
42:13Um...
42:14And it would be $1 million for eight percent.
42:17Hmm.
42:18Okay.
42:19So, the value...
42:20So, we want to hold onto the equity, so you don't want to give up...
42:23Two percent.
42:24But the extra...
42:25It's not too far off.
42:26Yeah, it's not too far off.
42:28Yeah, I'd be willing to do that.
42:32Yeah, I'd be willing to do that.
42:34That's okay.
42:35Yeah.
42:36You okay?
42:37Yeah?
42:38We have a deal?
42:39We have a deal.
42:40We have a deal.
42:41Oh my gosh.
42:42I'm so excited.
42:43Thank you so much.
42:44How are you doing, guys?
42:45Congratulations.
42:47This is so exciting.
42:48Thank you so much.
42:49Congratulations.
42:50Thank you, guys.
42:51I appreciate it.
42:52Yeah, cheers.
42:54I literally did the research on this stuff myself, and this was the product I came to.
43:02Next time on Dragon's Den.
43:09Oh, man.
43:10Oh!
43:11And next time, you take the deal.
43:13All right.
43:14Property brother Drew Scott is back.
43:17Don't mess with our new dragon.
43:19I do hope that somebody sitting here understands that we are worth investing in.
43:26But we can't value you on a dream and a hope.
43:29Don't you think that your first step would have been to do all of that hard work up front?
43:35With what money?
43:36Beg, borrow, and steal.
43:37Entrepreneurs got to figure out a way.
43:39Put some money in your mouth that your mama said that you know it's real.
43:46Put some money in your mouth and your hands up on the wheel.
43:54Oh!
43:56Oh!
43:57Oh!
43:58Oh!
43:59Oh!
44:00Oh!
44:01Oh!
44:02Oh!
44:03Oh!
44:04Oh!
44:05Oh!
44:06Oh!
44:07Oh!
44:08Oh!
44:09Oh!
44:10Oh!
44:11Oh!
44:12Oh!
44:13Oh!
44:14Oh!
44:15Oh!
44:16Oh!
44:17Oh!
44:18Oh!
44:19Oh!
44:20Oh!
44:21Oh!
44:22Oh!
44:23Oh!
44:24Oh!
44:25Oh!
44:26Oh!
44:27Oh!
44:28Oh!
44:29Oh!
44:30Oh!
44:31Oh!
44:32Oh!
44:33Oh!
44:34Oh!
44:35Oh!
44:36Oh!
44:37Oh!
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