- 7 weeks ago
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00:00What the heck is going on here?
00:10What the hell?
00:12What have you invested in this to make it to this level?
00:15265,000.
00:16265,000.
00:17I had a house.
00:19I sold it.
00:21Sabrina, you started this company, right?
00:24We all did.
00:25When you talk, Stephanie, you say I a lot.
00:29How much time and money did it take you to come up with this?
00:32Yeah, so we built this in under a month.
00:34One month?
00:35Oh, come on.
00:36Whoa!
00:37Mic drop!
00:59First up.
01:00I've watched the show since the very beginning.
01:02I have wanted to have a good reason to be here, and what better reason than the 20th anniversary?
01:07Okay, superheroes.
01:08Let's slay some dragons.
01:10Light Squad!
01:12Do it, girls.
01:15Will this super entrepreneur from Barrie win over the dragons or leave them scratching their heads?
01:22Superheroes in capes.
01:23Well, hi, dragons.
01:25Hi.
01:26My name is Dawn Mucci, and I'm the founder of LiceSquad.com and Superhero Kids Hair with Care.
01:32We provide head lice removal services and specialized hair care across 30 franchise locations.
01:39Wow.
01:40I'm here today to ask for your mentorship and $150,000 in exchange for 5% of my company.
01:47Now, dragons, since you are the superheroes of entrepreneurs across Canada, I invite you to put on a cape and join me in my mission to build a children's hair care empire.
01:58I have a solution.
02:00What's the solution, Wes?
02:01Just no hair?
02:02No hair.
02:03Yeah, that's the solution.
02:04So I would like to invite each of you up for a complimentary professional peace of mind head check.
02:09A typical session with the lice squad takes around 60 to 90 minutes, while clinicians wash and comb out both the lice and their eggs.
02:18They also offer do-it-yourself kits.
02:20Ryan?
02:21Have you been around the kids lately?
02:23I have been.
02:24You have?
02:25Well, I think you have.
02:26Head lice!
02:27What the heck?
02:28What is going on here?
02:29Holy crap!
02:30Oh my gosh!
02:31Look at that lice in your hair!
02:32And I'm out.
02:33Oh!
02:34Superheroes, your work here is done.
02:36You can leave.
02:37Oh, superheroes.
02:38Well done.
02:39Dawn's franchises exist as storefront salons or as express mobile services.
02:54So Dawn, how long have you been removing lice?
02:59I started this business in 2001.
03:032001?
03:04Oh, so 24 years.
03:05Wow.
03:06Yes.
03:07And why?
03:08As a child I got lice a lot.
03:09I got, you know, teased.
03:10And then as a single mom, my son brought it home from daycare and I went right back to that negative space.
03:16I went looking for help and there really wasn't anything.
03:19I kind of resonate with Brian and his story being high school dropout.
03:24I was the kid with the lemonade stand.
03:26Always created things and solved problems.
03:29Back in Jamaica at the time they used to, because it was stigmatized big time.
03:33Yes.
03:34Yeah.
03:35They used to put kerosene in my head.
03:36That's correct.
03:37Oh my god.
03:38And then tie it.
03:39Yes.
03:40Oh my.
03:41What?
03:42Yes.
03:43They used to get the bugs out of their hair.
03:44What are people's options today?
03:46So the common go-to is you go to the drugstore and you get an over-the-counter
03:51permethrin or pesticide-based product.
03:53Okay.
03:54People are becoming more aware of the dangerous effects, obviously, pesticides on people,
03:59the planet and our agricultural system.
04:01What we do is called the Moochie method.
04:03We use medical devices.
04:04That's what this is.
04:05That's our comb.
04:06We use oils.
04:07We use minerals.
04:08We use, I actually didn't show you some of our children's hair care products here.
04:12But we use conditioners to help us with the combing.
04:16We use oils, the smother bugs.
04:18You know, if my child gets lice, I come into your salon and what happens there?
04:23So our average ticket's $250 per person.
04:26Yeah.
04:27Wow.
04:28Okay.
04:29That's not inexpensive.
04:30Anywhere else you could go to get this done or no?
04:32I pioneered the industry.
04:33You can find a Nancy Knit Picker in a basement somewhere or, you know, you might
04:37have...
04:38I love it.
04:39You might have, like, I think I have two or three competitors in Canada at the moment,
04:43but they're a one-off shop somewhere.
04:45What were your sales last year?
04:46Our sales last year were $2.9 million.
04:48System-wide sales was only $2.9 million?
04:50Correct.
04:51How about yours?
04:52And then your royalty as well.
04:53$1.5 million.
04:54And our franchisees, I would say basically each unit, the metrics are about $150,000 per unit.
05:01But that's not very much money, $150,000 after you take out all your costs.
05:05It's pretty darn good money.
05:06Really?
05:07What are they left with at the end of the day?
05:09They're probably left with about 25% of that.
05:16Yeah, that's a...
05:17That is not very good.
05:19They have product revenue on top of their service revenue.
05:24So we have about a 70% service revenue and the product revenue is 3%.
05:29Give me one number.
05:30Don't make me gassed on.
05:32How much does one of your franchisees earn to take home at the end of the day in one year?
05:38Net.
05:39So they would probably make about $45,000 to $50,000.
05:42But that's nothing.
05:43Okay, so they make about $50,000 a year to run this.
05:47And what are they paying to get into the business?
05:49How much are they paying for a franchise?
05:50The franchise fee is $35,000.
05:52$35,000.
05:53And then what do they pay for royalties?
05:5510%.
05:5610%.
05:57So they're broke.
05:58They're not making anything.
05:59And I have to say that a lot of my owners are multi-unit owners and they have two or three locations as well.
06:04I would lose my entire franchise system if they were taking home that per location.
06:09I'm going to disagree.
06:11If it sucked for them, we wouldn't have franchisees who have been with us for 20 years.
06:17We wouldn't have franchisees who have been with us for over a decade.
06:20They have bought themselves a really nice, meaningful job and that they feel is essential for their community.
06:27We've survived two recessions and a pandemic and we're in the headlice business.
06:32I think that's fair.
06:33I mean, are you sure your math is right, Dawn?
06:35I might actually be second-guessing myself.
06:38Because, like...
06:39I think I might be second-guessing myself.
06:40It honestly doesn't make sense, all the numbers you're giving us.
06:42I should have brought my accountant with me.
06:44Just got another error in the numbers here.
06:46How could the average store be doing 150k if system-wide sales divided by number of locations is less than 100k?
06:55I think I did some mistake of averaging out the per unit sales, where some units are smaller and some are higher in revenue, so that was my mistake.
07:03Dawn?
07:04Yes?
07:05The math is a method for me, so I'm going to be out.
07:11I can't be in partnership with somebody who doesn't know their numbers.
07:14I'm out.
07:17Dawn, as an investment, it just isn't making sense for me financially, so I'm going to be out.
07:22So, as a fellow high school dropout congratulations to you.
07:28We made it.
07:29I'm going to be out, but I will be cheering you on and rooting for a fellow franchisor.
07:34I really wanted someone to join me, mentor me, help me grow this.
07:38And whether it's a loan, or it's an equity stake, or it's a, I'll sing you my jingle.
07:43I don't care.
07:44Oh, let's hear the jingle, please.
07:45Let's hear the jingle.
07:46Let's hear the jingle.
07:47Let's hear the jingle.
07:48I need a beat.
07:49Yes.
07:50Come on, guys.
07:51Great.
07:52Let's go.
07:53When you start to scratch, and you're wondering why, and you find a bug, you start to cry.
07:58Pick up the phone, make the call.
08:01The Lice Squad will come and get rid of them all.
08:04There you go.
08:05When you want head lice gone, visit LiceSquad.com.
08:09There you go.
08:10Okay.
08:11How could you not say no?
08:12How could you say no to that, Brian?
08:14Did I get a deal?
08:15Brian, come on.
08:16Do I have a deal?
08:17How could you say no to that?
08:19I admire your spirit, your tenacity.
08:21Thank you, Brian.
08:22I appreciate it.
08:23And you have built something special.
08:24Yeah.
08:26Thank you, Dawn.
08:27It's you and me, Michelle.
08:28Put on a cape just for this.
08:29I actually think if you understand your numbers a bit better, you'll actually understand
08:33how to build this business a bit better.
08:35I swear I'm out.
08:36Okay.
08:37Well, Dragons, it's been an honor and a pleasure, as they say.
08:41Up, up, and away.
08:42I have a head lice empire to build.
08:44The spirit.
08:45Oh, I've got great, great, great enthusiasm.
08:48Dawn left the building like she just got a deal.
08:50I'll say great attitude.
08:51She's got such a great attitude.
08:52She's got an amazing attitude.
08:53I didn't know my numbers as well as I should.
08:55That's my bad.
08:56But there's such an opportunity, and I'm going to take the advice of the Dragons.
09:00So, would you mind if I ask what you pay yourself?
09:02Uh, 10K?
09:05Well, that's nothing.
09:0610K?
09:07Yes.
09:08So, you're living on $10,000.
09:09I don't even know how you're living on $10,000 a year.
09:11I don't know either.
09:12That's, that is commitment.
09:28Next, an entrepreneur looking to prove he's got a golden opportunity for a mouthwatering
09:34deal.
09:35Hello, Dragons.
09:36My name is Pierre St. Rose.
09:38I'm from Scarborough, Toronto.
09:40I'm the founder and owner of Crumbs Patties.
09:43I'm here seeking $175,000 for 20% of our business.
09:50Dragons, do you know what a patty is?
09:53Yes.
09:54Is this a Jamaican patty?
09:56Correct.
09:57It is.
09:58I love Jamaican patties.
09:59So does someone else.
10:01Over the last 50 years, the Jamaican patty has been the iconic snack of Toronto.
10:08Crumbs Patties is a gourmet patty company.
10:12We serve traditional and also specialty patties.
10:16And with that said, they're dragons.
10:18Who's willing to create a Crumbs trail across Canada?
10:21Let's taste these patties.
10:24Beef is a classic.
10:25The whole purpose of Crumbs is taking that single patty and creating five different things
10:30from it.
10:31So we have a breakfast patty.
10:32Then we have a beef and cheese, which a lot of people call a cheeseburger.
10:36Then we also have a pizza pouch.
10:38The pizza tastes, it's got the pizza and the patty flavor combined, which is pretty interesting
10:48because I'm not sure if I'm eating pizza or patties, but I like them both.
10:52I know a little bit about the patty space.
10:53There's like Michelin.
10:54There's Patty King.
10:55There's a couple big.
10:56Okay.
10:57I know.
10:58You know Michelle.
10:59No, no, no.
11:00I'm just telling you, I know who makes patties in this city.
11:03And I like the creativity of giving people the ability to try Jamaican patty, but then
11:08also a lot of familiar flavors.
11:10And also one of the things that we also do is customization.
11:14So we try to let customers have an experience where they can choose and pick whatever they want
11:19in the patty.
11:20That's really unique.
11:22Is it corporate stores?
11:23Is it franchises?
11:24Is it just the patties that you sell frozen?
11:27So we've done a pop-up at Yonge and Dundas, and that's one of our highest traffic where
11:32in five months we amassed 140,000 K.
11:36And a pop-up.
11:37Holy.
11:38It's a lot of patties.
11:39And do you have a normal shop that's open all the time?
11:41So right now we have a store that's located in Kensington Market.
11:45It's a great area, but it's seasonal.
11:47Right now we're open three to four days a week.
11:50And how much do you sell them for?
11:52Our price point is from $5 for a standard patty up to $10.
11:56No, I don't want to pay more than two bucks for a patty.
11:58Well, that's you though.
11:59But I don't know if you're the clientele.
12:02Even with us, like a lot of people love our patties and we have a mass following.
12:06However, a lot of people come to the store $5 for a patty.
12:09They don't want to hear that.
12:10I totally see that.
12:11It's $5 for a cookie for goodness sake.
12:13People have been stuck at a lower price point in this space.
12:17If you go to the mall now, you would see that a cinnamon bond is $6.99.
12:23A pretzel is $5.99.
12:26However, a Jamaican patty is still seen as $2.50 and it has meat.
12:31I think it's really good that you figured out how to take basically the price point of a patty from $2.50 to $5.
12:37I appreciate that.
12:38I want to know what your cost is to manufacture each patty and where you're doing that.
12:42It's $1.92 and currently we're in a shared commissary area.
12:46Yeah.
12:47So how big do you want to get to this thing here?
12:49Great question.
12:50So we would like to get three or four more locations in high traffic areas in the GTA Toronto.
12:56And then from there, look at Vancouver and Montreal.
12:59Right.
13:00Right.
13:01And there's a saying, look, look, money makes nuff, nuff money.
13:03Okay.
13:04Meaning even though the product is so small and such, you make a lot of it, you can make a lot of money.
13:08Absolutely.
13:09Pierre, why wouldn't you just get a bank to finance it?
13:11So back in 2017, I went to the bank with a business plan.
13:16They said that I don't have any experience and they don't like lending money to restaurants.
13:21First of all, you're from Scarborough.
13:22I'm from Scarborough.
13:23Okay.
13:24I did the same thing, put a business plan together to start Kingsdale, went to the bank with it.
13:27They told me exactly the same thing.
13:29They turned me down.
13:30I mortgaged my house for $100,000 to do this.
13:32What have you invested in this to make it to this level?
13:35$265,000.
13:36$265,000.
13:37$265,000.
13:38I had a house.
13:39I sold it.
13:40So what were your sales in 2024?
13:43From 2022, we did $132,000.
13:462023, we did $178,000.
13:49And last year, we did $210,000.
13:52And again, as I said, we're only operating three days a week.
13:56But have you made money any year like last year on the 210?
14:00Last year, we made net $6,800.
14:05So do you mind if I ask what you pay yourself?
14:0910K.
14:11Well, that's nothing.
14:1210K.
14:13Yes.
14:14So you're living on $10,000.
14:15I don't even know how you're living on $10,000 a year.
14:17I don't know either.
14:18That is commitment.
14:20Appreciate that.
14:21And, you know, like it's not easy.
14:23It's really difficult to do.
14:25Do you think this can be big?
14:28I definitely, and that's why I'm here.
14:30Because we're right at the cusp where it can take to a whole different level.
14:34Again, it's just financial help, injection, as well as a little, probably some help of sightseeing of where it can go.
14:42But you've been at this quite a while.
14:44Like, when you're not open in your location, there should be other ways that you should be selling your product.
14:50And that is the piece of this puzzle that is missing.
14:53And I'm not willing to build for you.
14:55I'm out.
14:56You're too small right now to be investable from my perspective.
15:03I think you're a great entrepreneur.
15:05And I think you'll find a way forward.
15:07But I'm going to be out.
15:08Pierre, super tasty.
15:12I think you're too early for an investor.
15:14You've got some things to figure out.
15:15And for that reason, I'll be out.
15:17I actually like the patty business.
15:22I think there is going to be a surge in this category.
15:27I think you're right, though.
15:28It's a growing market.
15:29Here's what I like about the business.
15:30It's a really good protein snack.
15:32It's really not that expensive.
15:33And it's something you can get in a couple minutes.
15:36And it's real food, right?
15:37Correct.
15:38You're making this with real ingredients.
15:39Correct.
15:40I think it is at that point where it's like it has mass appeal.
15:46I would give you $175K for 40% of the business.
15:50Woo!
15:51Wow.
15:52Wow is the word.
15:56I appreciate you seeing the vision.
15:57I appreciate that.
15:58Yeah.
15:5940% is a huge stake.
16:04Is there anything that you would...
16:07It's steep, but it's also like...
16:09I mean, again, your revenue was $200,000 last year, right?
16:12Correct.
16:13Is there ideally looking at a 30% to 35%?
16:23Wes, are you out here?
16:24Are you in?
16:26I'm not going to make you an offer.
16:28But I'm prepared to give you the advice that you need and introduce to the right people so that you can get financing in place to build this a little bit more.
16:38Got you.
16:39Right?
16:40I'll be out.
16:41I'll be out.
16:42But if you want that advice, I'll be happy to provide it to you and help.
16:45I appreciate that there.
16:46Okay.
16:47I'm actually going to stick with my offer of 40%.
16:49I know it seems steep, but you're at a very early stage of the business right now.
16:54Okay.
17:04Let's go, Michelle.
17:05Let's do it.
17:06Okay.
17:07And one of the things at our store, what we all do is we give a handshake and we also give a pound.
17:14Oh.
17:15So everyone that...
17:16Anyone that comes to our store, we give a pound.
17:18Perfect.
17:19It's just a way of saying thank you.
17:21I appreciate that.
17:22Congratulations.
17:23I appreciate that.
17:24Thank you very much, sir.
17:25Figure out.
17:26Great patties.
17:28I don't know.
17:29Call me crazy.
17:30I think there's something in patties right now.
17:31The patty is making a renaissance in this city, especially.
17:33The patty is making a serious renaissance.
17:38We are the proud co-founders of Bokeh Dating based right here in Toronto.
17:42So you guys, why don't you swipe through?
17:43Why don't we find out who it is?
17:44So if you swipe...
17:45And...
17:46Oh!
17:47Uh-oh.
17:48How do I...
17:50Like, is there a beep, beep, beep?
17:52Now taking the stage, an actor turned entrepreneur, hoping his app really connects with the dragons.
18:10Hello, dragons.
18:11My name is Ali Moomin.
18:12And I'm Carlos Saba.
18:13I'm Carlos Saba, and we are the proud co-founders of Bokeh Dating based right here in Toronto
18:19We are asking for
18:21$100,000 in exchange for 20% of our business
18:25We are the makers of Bokeh the revolutionary new dating app which helps people slow the swipe and choose with intention
18:33Who you date? It's one of the most important decisions of your life
18:37Yeah, we make it with such haste and only on the surface and no more is that evident then on dating apps
18:44You're choosing who to love based on a photo and a two-second scroll
18:48That's why with Bokeh every profile starts blurred as you swipe through thoughtful prompts and profile details
18:54The image gradually sharpens revealing more of the person aligning the eyes the mind and the heart
19:00We verify every user for safety and we even offer built-in support with Juno our AI-powered
19:06Relationship guide an industry first which helps users navigate everything from first messages to first dates
19:13So who's ready to slow the swipe?
19:15I mean, I'm the only single one up here
19:18So we've gone ahead and created a profile for you if you click on the B icon to see who we have next for you
19:26Okay, so your first suitor is a man from any town USA see who it is
19:30He's got a private jet, Arlene
19:32My private jet where we sip champagne and debate pre-nup clauses
19:36Oh God
19:37Yeah, no
19:37What do I swipe?
19:38So you guys, why don't you swipe through?
19:39Why don't we find out who it is?
19:40So if you swipe
19:40Okay
19:41Oh
19:41Oh
19:41Oh
19:42Oh
19:43How do I, like, is there a
19:47Beep, beep, beep, beep
19:48I mean, not my type
19:50So then hit the X if you want
19:52We have another suitor waiting for you
19:53Oh, okay
19:54Yeah
19:54Next
19:55Boom
19:55How would I spend an entire day with no technology?
19:59I'll be outside, morning coffee on the porch
20:01A walk that turns into a hike
20:03I've mastered the hustle
20:05Still learning how to rest without guilt
20:07This one, yeah, I like this one
20:09Now from here, you can start chatting with him
20:11If you choose the chat icon on the bottom there
20:13And he's already sent you a message
20:15Now we're matched
20:16Now we're matched
20:17And we have a little feature
20:18That's going to give you in-chat AI assistance
20:21So if you're like, listen, you know, we've been talking for a while
20:23And he hasn't asked me out
20:25What do you think I should do?
20:26It's like coaching you
20:27Yeah
20:27So I didn't need therapy all these years
20:29I just needed Juno to tell me what to do
20:31You did a bokeh
20:32So Ali and Carlos, could you not find dates?
20:35Why'd you come up with this?
20:37Well, I just got married
20:38Oh, congratulations
20:39Yeah, thank you so much
20:40Did you find her on bokeh?
20:42Yeah, you know what?
20:43We actually did meet on a dating app, my wife and I
20:45I was in the Broadway tour of Come From Away
20:47Come From Away closed
20:48And I was like, I want to learn how to code a computer
20:51I didn't really learn how to code a computer
20:53But I met Carlos
20:54Who on his own
20:56Basically created the front end and back end of this entire app
20:59Carlos, you did all the programming
21:00Yeah, all the programming
21:02I put no investment into myself other than the time
21:05So there's two differentiators, really, of your app
21:09Is that there's no photo until the end
21:11And that there's AI-empowered advice
21:14Yeah, but to be clear
21:16Lots of dating apps now have AI integrated into them
21:20Yes, of course
21:21Okay, so I had a failed dating app startup
21:24So I know a lot about the space
21:26There's a couple of, like, just really important things
21:30So the first thing with dating apps is it's easy to get men
21:32It's hard to get women on dating apps
21:34They're real
21:34Yes, I mean, we have 6,000 people who have downloaded the app so far
21:3740% of them are women
21:38Which is above the industry average of 35%
21:41Then the second challenge you have is
21:42It's a terrible business model
21:44Of course
21:45Because once you get, you know, married and settled down
21:48You're no longer a user of the app
21:50The industry trend is really fascinating
21:53So Tinder has been on a decline
21:54But Hinge has gone up 29% year over year
21:59And that one is a relationship-based app
22:00Okay, and how much do you guys charge?
22:03So we charge $29 monthly for Bokeh Plus
22:07How much is the revenue so far?
22:08In one year
22:09Revenue so far is around just $1,000
22:10A thousand?
22:13It would strike me as a very difficult space to enter
22:16Because I think back to whoever bought the first fax machine
22:19Who do you send a fax to?
22:20That's a very limited amount of people
22:22That are actually going in the app trying to meet each other
22:24We are hoping that with the $100,000
22:27We can generate, let's say, 80,000 users
22:30Tinder came out with the swipe in 2012
22:33Bumble came out with women's come first
22:36And then I think this is the next step
22:37One of the dragons that used to be on the show
22:39Bruce Croxon invented Love Life
22:42And he created, I think, a couple million users
22:44Of that product long before dating apps were really, you know, big at all
22:49And I think there's lots of opportunity
22:51The problem is, is it's just going to be, like, AI prompts
22:55Talking to other AI prompts
22:56And then all these people are not going to be able to build
22:58A real meaningful relationship
22:59Aren't you glad we're married, Brian?
23:01Thank you, gosh
23:02How we have instructed Juno is to be like
23:06You are never to tell people what to say
23:09You are to encourage them to speak with their own voice
23:12I think Michelle said something that really triggered me
23:15Because the dating industry is a dirty business
23:19And I like that you're not
23:20Maybe there is room and this space to have some
23:22You know, an app that's actually ethical
23:25And does care about people
23:27And doesn't do the wrong things
23:28I think your big idea of slow down the swipe
23:32Is a big one
23:33I can't see this
23:35But it doesn't mean that you can't
23:37Or Arlene can't
23:38But for that reason, I'm out
23:41I think you guys are very efficient
23:46In terms of what you've done so far
23:47It's not a space that I've invested in
23:51And it's very competitive
23:52And so for that reason, I'm going to be out
23:55I honestly just don't see the future of it
24:02I don't see how I can make money
24:05How you're going to scale
24:06I'm out
24:07I'm going to make you an offer
24:11Wow
24:12I am not a tech entrepreneur
24:14This is to be clear
24:15But I am a really damn good marketer
24:18So I'll give you the 100 for 20%
24:20And if we don't hit 80,000
24:22I get 10% more of the company
24:25I want to know that you're that deeply committed
24:30To this being successful
24:32That there's skin in the game big time for you
24:35If she gets 30% is a lot, right?
24:40Well, we're not here to critique my offer, Michelle
24:43I'll make your own
24:44There's this line that goes around
24:47That's like, the internet was created by the three G's
24:50Girls, gaming, and gambling
24:53And they're the toughest, dirtiest industries on the internet
24:57I'm going to be out
24:58Because I think you're going to have to do things
25:01That are way more aggressive
25:02To win in this space
25:03Than you guys are prepared to do
25:04Okay, you have one offer
25:08Arlene
25:13We're not alone
25:16I'm not going to be alone either
25:20I'm going to be with you two
25:21You're good, Allie
25:22You're very good
25:23You really are good
25:24Thank you so much
25:26Well done, well done
25:27I just wish she wasn't doing this
25:29Thank you
25:30Arlene is alone
25:31No, I'm not alone
25:32Thank you
25:33Thank you so much
25:33Alone with Allie and Carlos
25:35All right
25:35Yes, all right
25:36I have had probably some of my silliest, biggest losses
25:42On teams falling apart for no reason
25:44We hit our rocky year
25:46And I think that as we've gotten to know each other
25:49We love each other
25:51As though we're in a marriage
25:53Why isn't the company bigger?
25:55Next in the den
26:10A Dr. Farmer duo
26:12Here to press the dragons for a deal
26:14An apple a day
26:18Keeps the doctor away
26:20Hi dragons
26:21I'm Sabrina Sudo
26:23And I'm Steve Sudo
26:24I'm Dr. Stephanie Liu
26:26And I'm Dr. Graham Mulholland
26:27We're from Edmonton, Alberta
26:29Dragons, we're here to ask for $100,000 in return for 10% of our business, PalmMD
26:36Dragons, in 2022, my mom was diagnosed with a terminal cancer
26:46During that time, she was constantly thirsty
26:50We searched for every hydration and electrolyte beverage
26:55Most of them had artificial sweeteners and additives
26:59So I made it my goal to find something that she could consume
27:05That was not only effective but tasted good in a time where she really needed it
27:11My mother-in-law's favorite beverage was our fresh pressed juices
27:15Because the apples came from our family farm, Sudo Farms
27:19I'm a surgeon with a background in biochemistry
27:25And my wife, Stephanie, is a family physician with a background in nutrition
27:29We've been longtime friends of the Sudo's
27:32And together we developed a delicious hydration beverage that's rooted in science
27:37And that's how PalmMD was born into this billion dollar hydration industry
27:41PalmMD is just fresh pressed apple juice and essential electrolytes
27:46Now this is hydration done better
27:47Dragons, you need to try it to believe it
27:50So I've had your drink before
27:55Me too
27:56I've had
27:57It's very good
27:57Yes
27:58My youngest daughter loves it
27:59This is delicious
28:05It's delicious
28:06Yeah, I think it's very refreshing as well
28:09And it's like you're eating an apple but you're drinking it
28:12Yeah
28:12Which is, it feels very natural
28:14So talk to me about the consistency of the apples
28:17How do you make sure that every batch tastes the same?
28:22The family has been in produce for over 40 years with Sudo Farms
28:26I would say Steve knows every farm in the Okanagan
28:30And we know how to use whatever apples are on hand
28:34In order to mimic it consistently
28:36So this is apple juice, fresh squeezed, but then you add in the electrolytes
28:41Yeah, so the idea actually came to us
28:43So one of the ways I like to unwind in the evening is reading medical journals just to stay up to date
28:48That puts me to sleep
28:49Yeah
28:49Good one
28:51So we're not doctors
28:52A groundbreaking article was published and they actually found that dilute apple juice did just as good as those pediatric electrolyte drinks
29:00Stephanie, are you a pediatrician?
29:03I'm a family doctor
29:04You're a family mom?
29:04But my internet name is Dr. Mom
29:06I'm actually one of the biggest doctor bloggers in Canada with over 200,000 social media following
29:11Okay, well I'm curious as to how many stores you guys are in right now
29:15So we're at 160 right now
29:17And what are your sales to date then?
29:20Our sales in year one was 57,000 and then year two to date is 100,000
29:24And how much does it cost you to make one of these?
29:28So for the can it's $1.75
29:30$1.75?
29:31And then we sell it wholesale for three
29:33And what does it retail for?
29:34$4.99
29:35For one can
29:36Correct
29:36Wow
29:37And sorry, that sounds very high
29:39That sounds really high for apple juice
29:41We think about it as more of a premium product, right?
29:45I pay, you know, upwards of $5 for a fresh press juice
29:48I put us more in that category
29:50So Stephanie and Graham, you guys are both doctors, right?
29:54You're not going to do this full time
29:56So you're just investors and then, tell me
29:59I think one of the advantages for us is
30:01I will do a lot of marketing for this with my social media
30:04And I love this too
30:06So I just checked out your Instagram actually
30:08But you're never posting about the beverage
30:10So why is that?
30:12I have to really feel like we're like perfect in all aspects
30:15I wasn't crazy about our initial packaging
30:17The other part of it was the flavor profile
30:20I had to have it perfect
30:22And it's perfect now
30:23And for me, before I put my name behind it
30:25It needs to be compliance perfect too
30:27And now we've checked off all of those three
30:29And I will be beast mode sharing on social media
30:32Sabrina, you started this company, right?
30:37We all did
30:38We all did
30:38But when you talk, Stephanie, you say I a lot
30:41And I didn't mean it like that
30:43Okay, because you're saying, you know, I think we should do this
30:45I want to do that
30:46I'd like to have this happen
30:48We are a family business
30:49This is the first time we've ever brought any outsiders in
30:54Not going to lie
30:55We definitely had different levels of conflict
30:58Communication is probably the hardest thing that can happen behind the scenes in business
31:03I have had probably some of my silliest, biggest losses on teams falling apart for no reason
31:09We hit our rocky year
31:14And I think that as we've gotten to know each other
31:17We love each other as though we're in a marriage
31:22And we're committed to each other
31:23My question is, why isn't the company bigger?
31:26We don't want to make big financial mistakes
31:29We need someone that really has the experience, not just the money
31:34There's nothing wrong with taking your time at the beginning to get it right
31:37But you have to move even if it's not perfect
31:40If you wait for perfect, you will miss the opportunity likely
31:44Walk before you run, but don't crawl
31:46So how it hit me was wondering, you're in medicine, the two of you
31:51And then with the farm, who's spending their full-time focus on driving this business forward?
31:56Sabrina, you are all in, are you not?
32:00She is all in, yeah
32:01Thank you, Arlene
32:02Yeah, yeah, yeah, yeah
32:03Yeah, I mean, yes
32:05I help support the business
32:06Do you have a day job?
32:08Do you have anything that you do beside this?
32:09So, yes, I do
32:11What is it?
32:13I practice Chinese medicine and acupuncture for fertility
32:16Okay, so you're also on the medical side of it
32:20So you guys are all
32:21That is not my full-time job
32:22Still another job, though
32:23Yeah
32:24I think as an investable business, without one person 100% backing this up, I'm going to be out
32:30We have 30 companies in the WeShop portfolio
32:36The role that I play with those 30 companies is a mentorship role
32:39I can't play the same role with you right now
32:42I'm going to be out
32:43For me, the relationship between the four of you is just too complicated to invest in
32:53I'm going to be out
32:54We still want this
32:58We still want this
33:00You understand food and beverage
33:03Michelle, you have a thought process that knows how to pick up on the holes
33:08So, I get it, I'm hearing it, I'm listening
33:11We want a deal
33:15We want a deal
33:18I appreciate the persistence you guys are using
33:24I think there's challenges here with cost, the team dynamic
33:29I'm going to be out
33:30I'm making intense eye contact with you, Arlene
33:37Like, we can learn so much
33:39And we're very coachable
33:40I don't want you to think that we're underestimating
33:44Or underappreciating the skill set that you have
33:47You have a really good product
33:49I know how committed you two are
33:51You're just too early for an investor
33:54I'm going to be out
33:55Okay
33:57Thank you
34:00It's too complicated
34:03There was something, there was something there that was really
34:07There was tension that you could see
34:09You could feel it
34:10These apples are really good
34:12Are they really good?
34:12Too bad they weren't selling me as the apples
34:14Yeah
34:14You built this yourselves?
34:17Yeah, so we coded this completely all on our own
34:19You coded it?
34:20Yes
34:21That's awesome
34:22How old are you two?
34:23I just turned 18
34:24And I'm 15
34:25It's been a dream come true
34:45So whatever happens, it's one thing off our bucket list
34:47We've been watching this show since we were, like, five
34:52Last, siblings from Toronto
34:58Hoping the Dragons can verify the work that went into their business
35:02Hi Dragons
35:04We're Nico
35:04And Edlyn
35:05We're asking for $10,000 for 50% of our company, Adafi
35:10My friend was falsely accused of using AI to do his homework
35:14And was forced to redo it or get a zero
35:16Oh
35:17Current AI detective reports only give a percentage
35:21Predicting the probability of AI usage with no supporting data
35:25We started brainstorming ways to help him defend his work
35:28And that's how we came up with Adafi
35:30Adafi is a typing analytics tool
35:33That allows you to see a detailed playback
35:36Of all the edits you made to the document
35:38You can see any backspaces
35:39And any copy and pasted text from an external source
35:43It also shows when you worked on the document
35:46Which is useful to see time management trends
35:48For example, did I work on it throughout the whole week
35:51Or did I finish it the day before it was due
35:54Adafi is also great for group work
35:57This feature shows how much each student contributed to the group document
36:01And which parts they contributed to
36:03Go Nia
36:03Nia did all the work
36:04From that, teachers can see whether students copied their work with minimal effort or not
36:09Because student effort matters
36:11Verify with Adafi
36:12That's awesome
36:13Great pitch
36:15How old are you two?
36:16I'm in grade 12, so I just turned 18
36:18And I'm 15 in grade 10
36:19So this whole concept is
36:21You don't have to run it through an AI filter
36:23But you're just going to see how much time this person spends on each paragraph
36:28Or each aspect of their work
36:29That's interesting
36:30Exactly, so current AI detectors are using AI to detect AI
36:35Which can be extremely inaccurate
36:36As both just keep on getting better
36:38And it's sort of like a cat and mouse chase
36:40Docs does this time stamping
36:42And you can see when
36:44Who authored it
36:44Yeah, who authored it
36:46Where the changes were made
36:47Can't you just use a software like that?
36:49So Google Docs has version history
36:51Which just gives a date
36:53And then it shows what block of text was written
36:55You don't know if it was copy and pasted off of ChatGPT
36:58Or if they typed it themselves
36:59So we provide more features such as a playback
37:01What if I got ChatGPT to write my paper
37:04And then I slowly type it out into your software?
37:07Yeah, so if you do that
37:09First it will all be in one writing session
37:11Unless you split it up into multiple days
37:13You'd be clever, you'd write it in different sessions
37:15You'd look like you were editing it
37:16But you're really using a template
37:17Sounds like you've been cheating at school, Michelle
37:18No, I'm just thinking of how a student would think
37:21And how to game the system
37:23So when you see two essays side by side
37:25It's really clear when you delete a sentence
37:26You rephrase it and do that multiple times
37:28And we believe that at a certain point
37:30It's less effort to pretend that you're actively typing
37:33For four hours than just to do the work yourself
37:35So Edlin, how does it work?
37:37This is a Chrome extension
37:38So basically on Chrome
37:40You can just search it up and you get to the Chrome web store
37:43And really quickly in two clicks
37:45You can just press install, add to Chrome
37:47And it's automatically there
37:48So it's not even an app
37:49It's a plug-in
37:51It's a browser extension
37:52Yeah
37:53So that's like, that's really impressive
37:55You built this yourselves?
37:56Yeah, so we coded this completely all on our own
37:58You coded it?
37:59Yes
37:59Did you code with AI?
38:02No
38:02It was actually really difficult
38:04I don't think AI would be able to code this specific thing
38:06Because we had to go into Google Docs
38:08And like completely reverse engineer it
38:11And figure out how it worked
38:12So how do you guys make money?
38:15We're in the process of developing a premium plan for teachers
38:19And this premium plan is directly integrated into Google Classroom
38:22Teachers can automatically see how much time
38:25That on average a class took
38:27And it will flag out any outliers
38:28That they might want to look closer at
38:30At the individual report
38:31And for this premium plan
38:33We plan to charge $5 per teacher per month
38:35Which is much cheaper than existing competitors
38:37I'm just curious on that part of it, right?
38:40I'm a teacher
38:40I'm underpaid, right?
38:42And I'm going to actually pay for this
38:45It's going to save me as a teacher hours of my time
38:47I know, but a lot of these things are sold to the school boards
38:50Because it's their duty
38:51To try to prevent this from happening
38:53We found the most effective way right now
38:55Is that when we go to school boards and principals
38:57It often does not trickle down to teachers
38:59So we find that when we tell teachers about it
39:01They are able to get administrators to pay for it
39:03Have you had any hurdles with the school boards
39:06Or with people saying you can't sell?
39:07Yeah, so at first when we tried to sell it
39:10To the Toronto District School Board teachers
39:12They banned all extensions and apps
39:14To be installed on teacher accounts
39:16Because for safety reasons
39:17So we had to email the head of IT
39:19To try and get it unblocked
39:20But they immediately dismissed us
39:22Obviously because we're high school kids
39:24And they say they only trust big corporations
39:26People who are not taking you seriously
39:28Because of your age
39:29Big mistake because you're super smart
39:32We sent a lot of emails
39:33And we had to get trustees to advocate for us
39:36But in the end when we were finally able
39:38To get it unblocked
39:39It was a huge win for us
39:40Yeah, huge win
39:41How much time and money did it take you
39:44To come up with this?
39:45Yeah, so we built this in under a month
39:47One month?
39:48Yes
39:48Oh my, okay
39:49I've been coding since I was grade 5
39:52Wow
39:52I'm in grade 12 now
39:53Love it
39:54So in terms of the money that we spent so far
39:56Currently it's $20 per year for domain and hosting fees
40:00And we haven't spent any other money
40:01Except to create these t-shirts
40:02This is for the t-shirts
40:03Wow
40:03This is the power of
40:04So you've invested $25
40:05No
40:06It's the power of being able to code, right?
40:08Yeah, in our bank account right now
40:09We have $18,000
40:10That's from pitching competitions
40:13That we've won for $8,000
40:14Oh, come on
40:14Whoa
40:14Mic drop
40:16Good job
40:17Why are you prepared to give 50% of your company away for $10,000?
40:22So currently we are almost going to launch the premium plan
40:25The feedback would be really invaluable to helping us with marketing and advertising
40:29We're good at building things but it's our first time doing any business related stuff
40:34And having a mentor would help us go to market a lot faster
40:37So impressive
40:38Wow
40:39Okay guys, I would bet on smart software developers any day
40:43I'm so impressed with what you guys have built so far
40:45I will give you the $10,000 for 50%
40:48Thank you
40:50I will also give you the $10,000 for your 50%
40:55I think what we should do
40:59Because I think you're going to get all of us saying that we'll give you $10,000
41:01You are the future of Canada
41:02So maybe if we get everybody we give you $50,000 for 50%
41:07Wow
41:08There's going to be so much software around AI detection
41:14Created in the next 12 to 24 months
41:17You're at the exact right time to double down on this versus weight
41:20So what do you guys think?
41:22Each of us give them $10,000?
41:24I agree
41:24We see the future of Canada right in front of us right now
41:27So we're going to give you enough money so you can actually concentrate on building something
41:30Build this
41:31So we're offering you $50,000 for 50% and you get all five of us coming in
41:38That's five times the ask
41:39Thank you
41:41Thank you
41:42I actually think you undervalued what you've built here
41:44Do you want to take some time to think about it?
41:48No
41:48Do you want to take some time to think about it?
41:49Do you want to take some time to think about it?
41:50That's a good answer
41:51That's a good answer
41:52Thank you so much guys
41:53Deal?
41:54Of course
41:55Deal
41:56Deal
41:57You guys are incredible
41:58That was great
41:59Great job
42:00Thank you
42:01That's amazing
42:02You guys are awesome
42:03Thank you so much
42:04Congratulations
42:06Congratulations
42:07You guys are so smart
42:09You are going to inspire so many young entrepreneurs
42:12Thank you so much
42:13Bye
42:14Oh that was fun
42:15Wow
42:16That makes me feel good
42:17They were really good pictures
42:18They knew what they were talking about
42:19That was great
42:20They were so good and clear
42:22We were not expecting that at all
42:24We're so excited to share with so many more teachers in schools
42:27And we think this can make a real difference
42:37Come back next week
42:38Dragons
42:39Our birch babe
42:40And birch babies
42:41Are coming in with some of our favorite bath time essentials
42:45Okay
42:46I've been looking for a good solution in the bedroom
42:49Or sorry
42:50What?
42:51What?
42:52I've been married happily for many years
42:53I can give you a solution for that
42:55And later this season
42:58The most successful past pitchers return
43:01To take their seats as dragons
43:03Joanna Griffiths
43:05Jay Kline
43:06Barb Stegman
43:07Mark Lafleur
43:09And Tara Bosch
43:10Are ready to invest in Canada's best and brightest
43:14In a full circle moment
43:16That's pretty special
43:17I remember standing where you were not that long ago
43:21You are sitting in front of a billion dollars in value
43:23A lot of planning
43:24A lot of heart
43:25Missing the hustle
43:26The celebration of season 20 continues with two exclusive episodes
43:31Geez
43:33Starting February 26th on CBC
43:37NBC
43:38Put some money in your mouth
43:42And your hands right upon the wheel
43:47Put some money in your mouth
43:49Put some money in your mouth
43:50And your hands right upon the wheel
43:54Share your hands right upon the wheel
43:57And your hands right upon the wheel
43:59And your hands right upon the wheel
44:00Let us know
44:01Maybe there's no hard to come
44:03If you're not there
44:04It will be one of the many other questions
44:05And you will see
44:06Little girl
44:07That's unusual
44:08You
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