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00:00tonight
00:04here i'll make you a trade you take this and i'll take this okay there you go good doing business
00:16with you aren't we here to negotiate no no because you told me that you're not oh i said that but
00:21that was just me like playing hardball we've seen like some great innovation for 20 years and this
00:27counts right up there among the top
00:31yeah
00:38yeah
00:43yeah we're we're we're so nervous but we're super chill
00:49walking into the den three babes looking for a dragon to scale up their skincare
01:04alarm hi dragons hey
01:10hi dragons i'm kelsey this is my sister lindsay and our mom debbie and we're from northbrook ontario
01:15we're asking for four hundred thousand for twenty percent of our company
01:19we're birch babe high quality skincare for the low maintenance babe
01:24ten years ago our mom hiked from the southern tip of patagonia to the northern tip of chile by herself
01:30it took her five months when she came home she was so inspired to do more for the planet and her body
01:36that she actually quit her job and went back to school at 60 and got two diplomas as an organic skincare formulator
01:41four years ago me and my sister lost our job so we joined birch babe and helped grow the business and so we launched a massive rebrand of all 60 products and the packaging you see today but something was missing we want to make skin care for the youngest member of the family too so last year we also launched birch baby because healthy skin care starts on day one
01:56dragons next to each of you is a curated selection of birch babe products and our birch babies are coming in with some of our favorite bath time essentials
02:03hello babies hi
02:07because healthy skin care starts on day one.
02:10Dragons, next to each of you is a curated selection of Birch Babe products
02:14and our Birch Babies are coming in with some of our favourite bath time essentials.
02:20Hello, babies.
02:21Hi.
02:24Birch Babe products retail from $20 to $68 online
02:28and in over 300 specialty stores across Canada, including Whole Foods.
02:33Keep it up, okay?
02:34Their all-natural products range from shampoos and mouthwash to serums and lotions.
02:40I tried the Birch Baby Nourishing Body Lotion.
02:43It's not greasy. It restored my manicure from two days ago.
02:46That was the plan.
02:47So how did you guys get started on this?
02:49Go ahead.
02:50Well, over the years, I just started making a few things for myself,
02:54doing a small business with local stores, and they've just blown it out of water.
02:58Like, now it's a huge burgeoning business. We hardly keep up.
03:00You said you had 66-0.
03:03Correct.
03:03The Birch Babe.
03:05Tell me a little bit about why so many.
03:07It's so many because we focus on being the elevated everyday brand for everyone.
03:12I would assume that between kids and adults, the whole family, you have different skin needs, though.
03:17We do have different... We have sensitivity to skin. We mature skin.
03:20But don't you think that's been done before?
03:22Like, honest with that.
03:23They had baby first, and then they went to the adult, to the mom.
03:27It's not that unique as you're making it sound.
03:29No, I don't think it's that unique. I think it just hasn't been done in Canada, and honest is a great company, but it's a U.S. company.
03:37We have a lot of people shopping Birch Baby from the U.S., and they told us they don't trust the regulations in the U.S., and they trust the voluntary testing that we've done, which is why they want to buy Birch Baby.
03:49I have heard a lot of that, too. Being from Canada, living in the U.S., I hear that a lot.
03:54Can we get some numbers? What are your salesmen?
03:56So, our sales last year were around $900,000.
04:00What are you projecting for this year?
04:02So, modestly, on paper, we've put $1.7 million, but we're on track to do $2.2 million with the growth that we've seen in the last four months and all of the new stores that we've signed with.
04:14And respectfully, getting to $2.5 million to $5 million in this space isn't that hard. It's the next step that is really, really hard.
04:23And we know that we don't know that we know that, which is that what we've got us to $1 million is not going to be what gets us to $5 million.
04:32Proven that we can make the product, we can make a really good product, we can sell a product with really bad branding, we can get a distributor, we can get into Whole Foods.
04:39Now we just want someone who's done it before so we can grow it.
04:42How much capital do you think you need to do the things that you want to do in the future?
04:46Because you're asking for $400,000, but I think that's a little light.
04:49We definitely need more, but we're not willing to give up more than 20% at this time.
04:56Kelsey, I could listen to you all day.
04:59Isn't she awesome?
05:00But here's my problem, is evaluation.
05:02And you put yourself in a box with that, because you told us that you're not going to dilute more than 20%.
05:09Which means that if I offer you $400,000 for 25%, you're going to say no.
05:14But aren't we here to negotiate?
05:16No, no, because you told me that you're not.
05:18Oh, I said that, but that was just me like playing hardball.
05:20Yeah.
05:21I mean, I have wiggle room.
05:22While Wes is contemplating what your deal strategy is, I'm going to go.
05:31Listen, I've invested millions of dollars into this space.
05:34There is a ton of competitive pressure out there.
05:38Like, you have no idea.
05:40You're almost too enthusiastic about everything being possible, and you need to be really focused on what is doable.
05:49Okay, so I'm going to be out.
05:52So, listen, I disagree with Arlene, right?
05:54I disagree with her because I think your enthusiasm is great, right?
05:58I think you need that in the business.
06:01But it's like the smart money, Arlene, is saying she doesn't want to join the cap table.
06:06I'm the dumb money, so I'm going to follow her, and I'm going to be out.
06:09Okay.
06:11Kudos, Debbie, 66 years old, starting a business like that is so inspiring,
06:15and you're setting the stage for other Canadians to know they can do it.
06:19I worry that there's not yet clarity on who you are, what your brand stands for.
06:25So I wish you all the best, but I am going to be out.
06:29I would just say from my perspective, I'm glad that you're admitting that the branding is bad.
06:34But this is your new branding.
06:35Yeah, you're talking about the old branding.
06:36I don't like this because to me, this speaks to me as something that's organic,
06:41but I don't think this speaks to mom the same way or baby the same way that I would assume everything you're talking about.
06:46I don't know. I'm not a fan.
06:49So for that reason, I would be out.
06:52And to that point, I also just wanted to say we only launched this new branding a year ago.
06:57Look, I believe that all good innovation comes from iteration.
07:01Try this packaging, that packaging.
07:02It's literally a matter of trial and error for every single one of those.
07:05There's lots of work to do, but I don't like not backing people that are this tenacious.
07:12So I would give you $400,000 for 25%.
07:18Okay.
07:20Oh, boy. Thank you.
07:23So all this has happened in one year, and in one year, we were willing to innovate, which within a couple...
07:29Okay, Kelsey, you've got to stop selling.
07:30But Michelle's point on packaging, and you keep iterating.
07:37Every time you iterate this package for 66 SKUs, it costs you a ton of money.
07:44I wanted to agree with you, Arlene. You're 100% correct.
07:48It's okay. You don't have to. She's already...
07:50Oh, I didn't want to tell, but I told you.
07:51Okay, I'm going to go next.
07:52Okay, you go. You go next. So sorry. You go.
07:55Great pitch.
07:57I really love the family dynamic.
08:00Like, I work with my brothers, and I would bet on you guys any day.
08:05I want to be the fourth family member.
08:08Oh, my God.
08:08We have another one of these.
08:10I can help you with the distribution and marketing.
08:11I'll offer you $400,000 for 25%.
08:15Okay, thank you so much.
08:18That's so exciting.
08:20Do you mind if we take a moment?
08:21Yes.
08:26You can see from the back, the proud mom.
08:29You can see a super proud mom.
08:31They work well together.
08:32Okay, here they are.
08:33I'm sure.
08:34I'm sure.
08:35I'm sure.
08:36I'm sure.
08:36This is really hard.
08:42This is very, very hard.
08:43Yeah, yeah, very heavy.
08:44This is awesome.
08:45Quick question.
08:46Would either of you do 22%?
08:50Well, I'm going to stick with my offer at 25%.
08:54I'll do that.
09:00What?
09:01Oh.
09:02Oh.
09:02Okay.
09:03Well, go ahead, Lindsay.
09:05But then, then yes.
09:07We want to.
09:08We're going to bling you up on a cover-off.
09:10Right?
09:11You're not going to want me to.
09:12Oh, my God.
09:14What are you doing?
09:15Awesome.
09:17Are we, can we still see?
09:18Looking forward to it.
09:19Oh.
09:23Yay.
09:25Hey.
09:26Think you have an idea for the next billion-dollar big brand?
09:32Hello, dragons.
09:33Come on in.
09:34Ahoy, dragons.
09:35Ahoy.
09:36Auditions are open.
09:37And we want to see you in the den.
09:39There is a better way.
09:41This is so beautiful.
09:43What have you got to lose?
09:45Wow.
09:46Oh, yeah.
09:46This is our moment to shine.
09:48Yes, yes.
09:49Stop dreaming.
09:50Start pitching.
09:51Don't you want a bite of the next big thing?
09:53Yes, we do.
09:54Let's make a deal.
09:55Good luck.
09:55Cheers.
09:56Apply now.
09:58Coming up.
10:00So are you guys, wait a minute.
10:02Are you guys suggesting that this company is worth $2 million at this stage?
10:05No, but it's not that far off, given where his revenues are.
10:07It's far off.
10:08Next, an Alberta biker, here to light up the den with his safety innovation.
10:24Well, I haven't seen one of those in here.
10:29Hello.
10:30I like the license plate.
10:32Dragon's 20.
10:33One of us gets to take this home.
10:34Is that the...
10:35Not me.
10:36Hello, dragons.
10:37My name is David Bartell.
10:39I'm from Calgary, Alberta.
10:40I am the founder of Admore Lighting, a unique motorcycle safety lighting company.
10:45I'm asking for $200,000 for 10% of my business.
10:51Dragons, whether you've been on a motorcycle or not, I'm sure that you can agree that motorcycling
10:55is thrilling, but it does come with inherent risks.
10:59Today, I would like to introduce you to an exciting innovation in motorcycle safety lighting.
11:04Cool, customizable, Canadian-designed and Canadian-manufactured lighting that makes
11:10the rider safer on the road.
11:12I was a banker for over 20 years, but I finally saw the light.
11:18So, dragons, what I would like to do is show you how we light up your rear.
11:24How long have you been waiting to say that one, David?
11:27We have four customer motorcycles here.
11:29Each one of them has our flagship product, the Admore Light Bar.
11:33Each of the light bars works with the vehicle's electric.
11:36So, you can see it's in taillight mode right now.
11:38I'm going to hit the brakes.
11:39You can see how much brighter that is than the stock taillight.
11:43I'm going to put the turn signals on, and it flows in the direction of the turn to give
11:48two inputs to the driver's brain behind that the rider is making a turn.
11:52For those of you that have ridden a motorcycle before, you know what I mean.
11:56When you let go of the throttle or you downshift, the motorcycle slows down very quickly.
12:01The inattentive driver, who's often looking on their phone behind, doesn't even realize
12:06that you're slowing down because your brake light hasn't come on.
12:09Our light bar will come on automatically as it senses rapid deceleration.
12:13That's smart.
12:14That's ingenious.
12:15That's smart.
12:15Wow.
12:16Interesting.
12:16And you developed this all yourself as a banker?
12:19I did.
12:20I did in my spare time.
12:22And why?
12:24What's the story behind it?
12:25Like, what made you and motivated you to do this?
12:28Well, it goes back many years ago when I got my first motorcycle, and I put hard-shelled
12:34cases on the bike.
12:35And I looked at the back of the bike and realized, you can't see my lighting.
12:40And at the time, LED technology had not evolved.
12:43And then fast forward to 2005, I ran across some new LED lighting, and I made a light kit
12:51for my motorcycle.
12:52I went ahead and made a couple of more light kits, and I put them for sale on a very little
12:58known platform at the time.
13:01eBay.
13:01eBay.
13:02And they sold like that.
13:04I call it a hobby that went wild.
13:07What's the cost of the product?
13:08The product sells for $2.99 Canadian.
13:11For one of these?
13:12Yes.
13:12Whoa.
13:13There's a lot of technology in there.
13:15How much does it cost you to make it?
13:16Our margins are 60% to 65%.
13:19That's great.
13:19Have you priced out if you were manufacturing somewhere else?
13:22For me, early on, it was important to build a solid brand with high quality, and I didn't
13:29want to jeopardize that by manufacturing overseas.
13:32Good idea.
13:32And today, I am so thankful that I made that decision because Made in Canada has helped
13:38to pump our sales this year.
13:40Right on.
13:40And how many have you sold?
13:42Since 2005, we've sold over 10,000 light bars.
13:46We've done over 6 million in sales.
13:49Walk me through the last three years of sales.
13:52In 2022, we did $300,000.
13:55In 2023, we did $485,000.
14:00And last year, just shy of a million.
14:03That's quite the ramp up last year.
14:05What happened last year?
14:06Last year, we found out that marketing can make a huge difference to your business.
14:10I'm not saying it's so.
14:12What?
14:12What?
14:13Imagine.
14:15Okay.
14:15How much was your profit on that?
14:17$80,000.
14:18Net income before taxes.
14:19But David, where are your costs?
14:21Like, I'm trying to understand the cost.
14:22If you've made, let's call it a million-dollar business, 60%, 65% margin.
14:27You should be making close to $400,000 in profit, right?
14:31But you're only taking home 80 grand.
14:33Where's the rest of the money going?
14:34So one of the really exciting things that we've been working on for the last three years
14:37is a new patented product, light bands, that can be put on the rider's arms.
14:43And it integrates with the light bar.
14:46You choose to make a right turn signal, a right turn, the right turn signal comes on.
14:49That's brilliant.
14:50So to develop these products, close to $100,000.
14:54So you're putting a lot of money back into R&D.
14:56Absolutely.
14:56We are looking to launch this product later this year.
14:59You're actually doing too much right now.
15:02On your valuation, because we talk about numbers, we run over it.
15:05You're not making a lot of money.
15:07You have a $2 million valuation.
15:09Where'd you get that from?
15:10Our first quarter is already up 40% from last year.
15:14Before we release any new products, before we do anything differently,
15:17we're already tracking at about $1.4 to $1.5 million.
15:20So if I'm going to look at your last 12 months,
15:23that's pitiful because you only made $85,000.
15:26We are putting so much money into research and development.
15:29I get it, but it's about your valuation.
15:31But he's invested all that money into IP for not only the lights, but the other products.
15:36So are you guys, wait a minute,
15:37are you guys suggesting that this company is worth $2 million at this stage?
15:40It's not that far off, given where his revenues are, given that he's making money,
15:45and that he's got a lot of investment in the IP for multiple different products that have really healthy margins.
15:51Listen, to make $180 on that light is pretty damn impressive.
15:54And I think because it is a safety product, it has to be 100% safe, right?
16:01Because you've got people's lives at stake here with those lights.
16:04Here's the thing.
16:06I know this firsthand.
16:07So my father is a recently retired liver transplant surgeon.
16:11Sadly, where do most donors come from when you need a liver?
16:14Yep.
16:14People on motorbikes.
16:15And what do you hear most often?
16:17I didn't see him.
16:18So the visibility, this is a bright idea.
16:21But I'd love to know, like, how does the insurance industry feel about this?
16:25Could you partner with them?
16:27There's no question in my mind we could go to insurance companies
16:29and we could offer some kind of a program where riders would get 5% off their insurance if they install.
16:35Why haven't you done that yourself?
16:36Why haven't you gone to insurance?
16:38It's just stretched so thin.
16:39And at this stage, there are so many opportunities for us.
16:42I would really love to have one or more dragons come in and help me to implement some of these strategies.
16:49You know, David, I have to give you a lot of credit because very few bankers become good founders.
16:55Bankers are used to criticizing businesses and they're used to protecting their downside.
16:59And being a founder takes figuring out that upside.
17:04It's very impressive what you've done.
17:06I just have too many war wounds from hardware.
17:08So I'm going to be out, but I wish you all the best.
17:11Thank you, Michelle.
17:12I always think in a situation like this is when is this going to become government regulated
17:15that this has to happen anyway and therefore it's going to become a manufactured component
17:19and then you're out of business.
17:20The reality is governments move very slowly.
17:22They put the minimum that they need to have on the bike to get it on the road, which is not enough.
17:28I like what, so again, I can build a house with my eyes closed,
17:32but it's a little outside of where I focus, so I'm out.
17:37If you've built a home with your eyes closed, let me know which one it is
17:40because I don't know.
17:42I'm not sure that's it.
17:43I got you.
17:43Yeah.
17:44I might have peaked a little bit.
17:46Okay, I got you.
17:49I come from a world where I'm terrified of motorcycles.
17:51I really am.
17:52But I also have so many of my friends who this is their number one passion.
17:56Yep.
17:56And if I can play a small role in helping to make the world a little bit safer,
18:01and maybe it's a multiple dragon deal.
18:03Are you interested?
18:03What are you thinking?
18:04What's the offer?
18:06I mean, I think a bigger percentage of the company between three of us, like 25%.
18:10I will come in at the $200,000 for 25% if Brian, Arlene, and I can do it together.
18:15I can certainly open up a ton of doors to the insurance company
18:18because I think that's where this is going to blow up.
18:22Manjeet's got on the distribution side.
18:23I mean, you might have a dream team here of four.
18:26I really do think that you have a market here for the wholesale.
18:31Huge potential there still.
18:33Huge.
18:33So I can really help you with the distribution strategy.
18:35I sell a lot of products to Canadian Tire and Apple.
18:37Hold on a second.
18:38That's too crowded for me.
18:39I'm going to be out on that deal.
18:42Okay.
18:42It's too crowded.
18:42Three of us.
18:43Okay.
18:44Three of you, $200,000.
18:47For 25%.
18:53That's a lot of equity to give up.
18:56Would you be open to $200,000 for 15%?
19:02Sorry.
19:02I don't get out of bed for 5%.
19:04Would we do 20?
19:0720 for three?
19:11We will do 20% for 200.
19:16Done.
19:18Wow.
19:19Thank you so much.
19:20All right.
19:20Yeah.
19:21I'm looking forward to working with you.
19:22Me too.
19:23Thank you so much.
19:24First banker I've met that I actually liked.
19:26No, I'm just kidding.
19:27I like all bankers.
19:28Didn't do a deal with one dragon.
19:30Didn't do a deal with two.
19:31Did a deal with three dragons.
19:33I'm pretty excited.
19:39Anybody can become an entrepreneur.
19:40So age or stage or education.
19:43It really doesn't matter.
19:44What matters is if you have a dream and you dare to pursue it.
19:48I'm a mom of five small kids.
19:50On an average week, I do 98 socks.
19:53So what I did was I came up with snappy socks.
19:56These socks help frazzled mothers keep it together.
19:58Oh, I see.
19:59They snap together.
20:00It's such a convenience not to lose the socks.
20:03I see it.
20:03I'm just wondering if we can sell a million pairs of them.
20:05Arlene, we can do anything.
20:07Nine kids between the two of us.
20:09You're an impressive woman.
20:10Thanks, Arlene.
20:10Yeah, really impressive.
20:11Yeah, thank you.
20:12A lot of people are afraid to tell their story.
20:15The hustle, how they started from nothing.
20:17But you've got to tell that story.
20:20I'm a police officer.
20:21A year ago, I was seriously injured on the job when I was assaulted and attacked in the line of duty.
20:27I was having difficulties adjusting to being sidelined and I reached out to my buddy, Will.
20:31I went on a tour of duty in Afghanistan and I had trouble kind of transitioning back to my civilian job.
20:36We shared some more stories.
20:37Thought the best way we can get through this is to build a business.
20:41So today we have RVs.
20:42So you've started Airbnb for RVs.
20:45Absolutely.
20:46I see it and I'm taken and I'm going.
20:48Yeah, good man.
20:50When you're a founder, your identity is your own personality.
20:54It's also your business.
20:56It's good to not be able to separate those things.
20:58That means you care.
20:59That means you're going to pour your heart and soul into building something.
21:02This dragon is our social enterprise.
21:04We employ immigrant women and I teach them how to sew.
21:08But most important, that we belong to this country and we can reinvent ourselves.
21:12Yeah.
21:13You're an entrepreneur at heart.
21:14I love it.
21:15In order to incorporate the business, I need to give the control of the company
21:19to a Canadian friend because you can't incorporate the business if you don't have the permanent
21:23resident.
21:24Oh, God.
21:24But I lobby with provincial government to show them we was creating employment and I became
21:29the first newcomer women to take control of a Canadian company without permanent resident.
21:33That's making positive change.
21:34Every immigrant in our province can incorporate the business.
21:37I bet on strong women.
21:40I will offer you $60,000 for $25,000.
21:43Well done.
21:45Well done.
21:47Bye, Chinese.
21:48This is the kind of story that you want to hear.
21:50Yeah.
21:51Everybody should hear this story.
21:53If this show has taught me anything, it's that entrepreneurs are the reason we innovate
22:01and create change in our world.
22:03They are the people who don't take no for an answer.
22:05They are the people who continue to build for our country.
22:08You know what?
22:09Yeah, we make a good deal.
22:13Coming up, when my daughter saw that Korean doll, she said that she looked like a princess.
22:21You created a product that can appeal to 4.7 billion people.
22:25Absolutely.
22:26Only people that can do us are us.
22:35We are making such a big impact for children worldwide.
22:44I hope that little girls watching will really see this and know that they too are worthy and valued in this world.
22:53This Toronto-based mom is here with the cuddle buddy she never had.
22:57Hi, my name is Samantha Ong, the founder of Joey Dolls, and I'm here asking for $175,000 for 10% of my company.
23:08Do you remember your favorite childhood toy?
23:11Yeah.
23:12Growing up, I didn't see myself in my toys.
23:15I spent years wishing that I looked different and not feeling seen.
23:19And then it wasn't until the pandemic with the rise of anti-Asian hate where all those feelings came back again.
23:26But this time, I was a mom.
23:28And as a parent, I know how important it is to raise children who are truly proud of who they are.
23:34And I created the world's most diverse Asian doll line, Joey Dolls.
23:39So what better way to showcase the dolls than from the little kids that love them?
23:44Here we go.
23:44Oh, man, you're going for my heartstrings.
23:47Okay, we're all in.
23:48Joey Dolls celebrates seven different Asian cultures, with the Vietnamese doll being the top seller.
23:55I love the outfit.
23:56Hello, look at that, dude.
23:57I love that.
23:58They're currently sold online and come with a QR code that lets you explore and learn more about the different cultures.
24:05Oh, wow.
24:06This is so cute.
24:08That's a big topic.
24:09You need some help that up on the step.
24:12Here, I'll make you a trade.
24:13You take this, and I'll take this.
24:16Okay, there you go.
24:17Good doing business with you.
24:20Oh, my gosh.
24:21Look how quick he took it.
24:22He's like, I'm out of here.
24:23It's okay.
24:24I wanted to thank them for coming out and showcasing the different cultures.
24:27Bye-bye.
24:31Would you like to give your Joey Dolls a cuddle?
24:33I love the lingo on her.
24:34I have one almost like it on her.
24:36I'm glad you can see her and identify with her.
24:40Did I get two because you know I have a little boy and a little girl?
24:43Exactly.
24:44So what are the seven cultures?
24:46The one that you usually see in the market when they're trying to represent an Asian doll.
24:50It's usually the Chinese one in red.
24:52I have Japanese here, Filipina, Chinese, Vietnamese, Cambodian, Korean, and Indian.
25:00So we actually have our Indian one in two different skin tones, and that's something that I really
25:04am excited about to do more because even myself, I too have experienced colorism.
25:10Absolutely.
25:11And it's so deep in Asian culture.
25:14In India, a billion and a half people, there are no brand dolls.
25:17All the dolls are white.
25:18Really?
25:19They're fair, lighter skin equals pretty.
25:22And it's not often talked about.
25:25And what does Joey mean again?
25:26It was inspired by my daughters.
25:28I grew up in Australia, actually, and so we named her my daughter Joey.
25:32A kangaroo.
25:33When my daughter saw that Korean doll, she said that she looked like a princess.
25:40And that's something that I never imagined that I could ever be.
25:44I mean, they're adorable, but there are companies now there that can do that without any limitations.
25:49What's your differentiator then?
25:50Is there a price point that you're coming in at?
25:52So our larger dolls are $75, and our little Joey dolls are $29.99.
25:59Okay, but this doll, Samantha, is $75?
26:01It is, yes.
26:03And they're all handmade.
26:04Okay, that's pricey.
26:06The cost to make them is $15.
26:10So we have about an 80% gross margin.
26:13So do you have, within each of these cultures, do you have certain upsells for a number of outfits, or is it one outfit per?
26:20Right now, we only have them in the original outfits.
26:24Well, that's where you'd make the reoccurring revenues, by getting the different outfits on the same doll.
26:28Absolutely.
26:29Tell us about the brand building, because again, you search ethnic dolls, and there is a lot of things available on the internet.
26:36Yeah, actually, we launched in 2023, and within 48 hours, we sold over $100,000 worth of dolls.
26:43Bravo!
26:43And it actually crashed my website.
26:46And then in 2024, we did $240.
26:49When you search Asian dolls, we are up there.
26:53Are you paying for that?
26:54No, we're not paying for any searches.
26:56You are very high on search.
26:58And I am getting customers, even out in Asia, reaching out, like, do you ship out here?
27:03Because we can't find these types of dolls.
27:06Have you attempted any sort of mass distribution?
27:08That's our next step, and that's also why I'm here, to be able to fund that type of distribution.
27:15And how will you feel about this business in five years?
27:17There is so much that we can do here.
27:20We have schools that are very interested in our dolls, too.
27:24They're also in cultural museums.
27:26And therapists are also purchasing our dolls for play therapy.
27:30So there's a lot of, like, licensing potential.
27:33We're actually working with a number of authors right now, so that we can build out education.
27:36Samantha, you seem like you're, like, drowning in opportunity.
27:40Oh, yeah.
27:41Like, you do need—the dolls are the focus.
27:43Yeah.
27:44You gotta stick to the dolls.
27:46I don't understand why you're three years in, almost, and you don't have tons of different outfits for each of them.
27:53Like, I think you're doing the hard stuff, trying to create new things first, before you actually build a $10, $20, $30 million company.
28:02Yeah, he asked me about my five-year outlook.
28:05Yeah, that's right.
28:06You're saying, yeah, you're asking a question about a long-term dream, right?
28:10You're not talking about now.
28:11You're talking about the future.
28:12Like, why is this worth $1.75 million?
28:15Many toy brands tend to take years to be able to break even, but profitable from year one.
28:23People are really buying into our brand.
28:26But your valuation is based in today's facts and today's numbers, right?
28:29Yeah, so brands who have emotional resonance and storytelling typically have multiples in the four to six range.
28:36Not of revenue, they don't.
28:37They might have EBITDA, but they don't have four to six times multiple on revenue.
28:41But I don't think your valuation is crazy.
28:43Should we see crazy valuation in a dent here?
28:45This is not one of them.
28:46That doesn't sound like Wes.
28:47That's a shocker coming from you.
28:49What?
28:49This is an almost $2 million valuation on $200,000 of sales.
28:53Have you lost any money since you started?
28:56No.
28:56Exactly.
28:56I had put in $19,000 of my own money and no debt.
29:01She's debt-free.
29:02She's capital efficient.
29:03You created a product that can appeal to 4.7 billion people.
29:07Absolutely.
29:08All the people that can do us are us.
29:11Okay?
29:11And that's what I love about your business, that you are looking at the Asian market and say,
29:16I'm going to bring this to my people.
29:20The category is just not my category, but I'm going to support you and wish you all the best.
29:26Thank you, Wes.
29:28I own one of the largest, if not the largest, unscripted production company in North America.
29:33And we look for opportunity to create stories around something.
29:36I don't see exactly what the story would be here.
29:38I'm going to keep an eye on you.
29:40But at this point, I'm out.
29:44I do love what you're doing, but I don't see it as an investment opportunity yet.
29:49I believe that Manjeet was right.
29:51You need to stay focused.
29:52And once you find that focus, you'll see whether this is a real opportunity.
29:56And until then, I'm going to be out.
29:58Sure.
29:58I applaud you, Samantha, for creating something that's more about human connection and kids going,
30:04that is me.
30:05I think it's a crowded space from what I'm hearing.
30:08And for that reason, I'm out.
30:09So, I like you, your business, and your margins.
30:14I just don't like your valuation.
30:16It's my mouth.
30:19Samantha, I love the mission.
30:20I wish you were out when my girls were small.
30:24But I think today, it's just not an investable business.
30:27And please focus.
30:28Don't drown in opportunity.
30:30Because it is intentional and it is well thought out.
30:33I wish you luck.
30:34But I'm out.
30:35Good luck.
30:35Thanks, Samantha.
30:36I want my money back from that little kid.
30:44He's long gone.
30:45Too late.
30:46That money's already spent.
30:51Back in season six, a memorable teacher schooled the dragons and set off one of the most iconic bidding wars in show history.
30:59Hello, dragons.
31:00My name is Elaine Como, and I'm here to tell you about my award-winning products called Easy Daisies,
31:04the Magnetic Daily Schedules for Children.
31:07Can you read those to us?
31:08Make bed, school, sport.
31:12You guys are so cute.
31:13Elaine turned her lesson plans into a business plan.
31:16I thought that if I've been making these visual routines for eight years and for free,
31:21there must be a market for such a product.
31:23And I can't keep up with the orders right now.
31:25And when it came to the dragons...
31:27I mean, you're a dream for selling it.
31:28I mean, it's just oozing out of you.
31:31Oh, thank you.
31:32She passed with flying colors.
31:34I think it's either those two or those two.
31:37What?
31:37Or it's me.
31:38Oh, my God.
31:40And the teacher picked her pet.
31:42Thank you very much.
31:43Am I allowed to hug you?
31:45With a $70,000 boost...
31:47So there's your check, ready to go.
31:49Elaine was ready to graduate from the kitchen table to offshore production and launch a line just for adults.
31:56So whether it's early dementia and early Alzheimer's, we're excited to help adults have easier days as well.
32:02Fourteen years later, this teacher-turned-entrepreneur hasn't stopped learning how to reinvent her business and herself.
32:09It's a still very new product, but it has won our 17th award.
32:14So when we went on Dragon's Den, I had said then that I just wanted to grow Easy Daisy's.
32:20Today, we are in Staples with Elastics and in different parts of Europe and Australia.
32:25And I'm honored to say now that Easy Daisy's is a bestseller in Staples Canada since 2013.
32:31And this is the adult version, the one that I used for a year, the My Day for Adults.
32:40So in 2018, I had a stroke.
32:44And I had seven months of stroke rehab.
32:46And one of my last appointments with an occupational therapist, she said to me,
32:51Elaine, we need a tool to help you.
32:53And she said, have you heard of Easy Daisy's?
32:55So full circle, completely humbled and just really grateful.
33:00Can you say hello?
33:00Hello.
33:01Nice to meet you.
33:02Nice to meet you.
33:03Nice to meet you.
33:05There are so many milestones in our journey.
33:08And if I can say, I know it's like separate from business, but it isn't.
33:12And I'm going to say, I'm so proud of my kids.
33:14And they are my greatest cheerleaders and my husband, too.
33:17And I couldn't do it without them.
33:19And I did it because of them.
33:20I have Easy Daisy's and so can you.
33:23I have to say it.
33:26I remember that one.
33:27Oh, I love that.
33:27It's just incredible that something
33:30that we made off our kitchen table is impacting lives.
33:35I'm so honored to be a part of the Dragon's Den legacy.
33:40Coming up.
33:42I've been looking for a good solution in the bedroom.
33:44I've been married happily for many years.
33:48I've been working on this for nine years, and this is the time because I have everything ready.
34:10Now, this Montreal entrepreneur is hoping to expand his team with a Dragon partner.
34:16Hello, Dragons.
34:17My name is Daniel Shriak.
34:18I'm from Montreal, Quebec.
34:19I'm the inventor of the shrinkable sofa.
34:22And I'm here to ask for $200,000 for 15%.
34:26So, we all know that in real estate, the most important thing is location, location, location.
34:34But sometimes, to have the best location, you need to sacrifice on space.
34:39Today, in Toronto, the average condo size is 40% smaller than it was 30 years ago.
34:46So, simply put, the space is shrinking, but the furniture didn't get the memo.
34:52So, I'm here in my living room.
34:56I chose to have an armchair, and I have more space to exercise, to play with my kids.
35:02But what happens if I want to invite a friend?
35:05Drew, you want to join me for a hockey night?
35:08Okay, Drew.
35:08Where are you going to sit?
35:09I'm a big judge of innovation in furniture.
35:13Yes, I know.
35:13I'm going to show you how my design actually works.
35:17Expand.
35:18One.
35:19Wow.
35:19Okay, pretty cool.
35:21Daniel says the shrinkable sofa expands in four simple steps and requires just one person.
35:27Two.
35:28It's also designed to be a self-storing unit.
35:31So, I have...
35:31Oh, you did it.
35:34Not bad.
35:35I have the backrest also.
35:36Please, take a seat.
35:39Arlene, do you want to join us?
35:41I'm feeling really lonely.
35:42Wile and cheese?
35:43Yeah.
35:44So, you see me as a beer guy.
35:45Arlene is refined.
35:47So, I can actually expand this even more.
35:50Of course you can.
35:50Oh.
35:52Wow.
35:53The party gets bigger.
35:54It's the gift that keeps on giving.
35:57It's the transformers of sofa.
35:58It's actually comfortable.
36:00It is comfortable.
36:01Honestly, I'm pretty impressed.
36:03I'll take it.
36:03And just like that, we could have somebody else come down.
36:05Oh, wow.
36:06That's pretty cool.
36:07So, I need my space back.
36:09So, in seconds, in seconds, I will have my space back.
36:15That is very innovative.
36:16Very innovative.
36:18And it looks good in all three positions.
36:20Daniel, how long have you been doing this?
36:23Working on this?
36:24Yeah.
36:24Nine years.
36:25What have you done all your life?
36:26So, I'm a senior mechanical engineer with a master's degree in design.
36:32Oh, master's degree in design.
36:32Functionality.
36:33Okay.
36:34I started this because I saw how much space my sofa would take, but how much space is wasted
36:41inside a sofa.
36:42Daniel, the biggest innovation of the sofa was the sofa bed.
36:46Yes.
36:46Right?
36:47And you took this to a completely different level.
36:49Yes.
36:50I agree.
36:50The transformer table is something that I love.
36:52I have one in my house, and it expands and contracts the dining space for entertaining.
36:57I've been looking for a good solution in the bedroom.
37:00Or, sorry.
37:00Whoa.
37:02I've been married happily for many years.
37:04I've been looking for solutions in the living room.
37:07Because, like you said, the sofa takes up so much space.
37:11So, I love that you have something new that I see here that doesn't look like you're trying
37:16to hide something.
37:16Yep.
37:17And how much have you spent in that nine years?
37:19I spent about $100,000 to get the patents.
37:22And what kind of patents do you have on it?
37:23It's a utility patent.
37:25Wow.
37:25For functionality, not design.
37:27For functionality.
37:28Yes.
37:29That's impressive.
37:30I have it granted in United States, Canada, and I'm pending in Europe.
37:35Okay, Daniel.
37:36Are you single?
37:40I'm ready with two kids.
37:42Those are some of the smartest words I've heard in a long time.
37:45Daniel, you're the inventor.
37:46Do you have a team who does sales?
37:48No, I am pre-revenue.
37:51This is the only piece in the world.
37:54I'm the inventor and I reached this point alone.
37:56But I'm looking to actually have some help for manufacturing.
38:01As I, I'm an outsider.
38:02I had zero experience before starting this.
38:05If only somebody up here had that kind of connection.
38:07You know, I've always been looking for someone with that kind of experience.
38:10Or what's your cost on making this and what's your retail?
38:12Right now, because this is new and to start the assembly line, it's about 780 Canadian dollars.
38:18What do you think you would sell it for?
38:20Probably $2,000.
38:22Do you want to be in the long game for this or do you want to be able to sell your invention with what you've created?
38:26This is my baby.
38:28Yeah.
38:28This is not just this sofa.
38:31This is the technology that goes into this.
38:33Isn't it probably best to just sell this idea, get some money in your pocket, get someone to take your next love and then continue to do something else?
38:40And get money every year for an invention you created.
38:43I'm looking at every possibility and everywhere with this technology could go.
38:48I'm looking at kids room.
38:50You can go in waiting rooms.
38:51You can go in conference rooms, balconies.
38:55So it could be licensing, could be direct to customers, could be retail, could be anything.
39:00You really have like every piece of this.
39:04You've really thought it through.
39:05With home, this is the thing.
39:07You're right.
39:08There's an affordability crisis.
39:10Most people who talk about tiny home living.
39:12Yeah.
39:12You're not living.
39:13You're struggling to survive.
39:14You're doing something from your experience as a mechanical engineer that has helped you do the things that I haven't been able to do seamlessly because I want people to function and thrive.
39:24Sure, we get it.
39:25You love it, Drew.
39:25Are you landing the plane?
39:27Is there an offer coming?
39:28I think what would be more interesting to me, I want to buy your company.
39:34You're doing something from your experience as a mechanical engineer.
39:51That has helped you do the things that I haven't been able to do seamlessly because I want people to function and thrive.
39:59I want to buy your company.
40:00I would like to give you your $200,000, but I'd like to give you a 5% royalty.
40:06So you're buying the whole company?
40:08My brand could get this in store and get a lot of attention with this product very, very fast.
40:13You'll get a 5% royalty on everything sold for the rest of the time.
40:16That's a great offer.
40:18I will join Drew if he'll have me as a partner and bring the D2C part of this business to life.
40:25Danielle, I think it's really inventive.
40:27I've been sitting in this chair for 11 years and it is really interesting, the furniture space right now.
40:33I can absolutely help you with the distribution.
40:35I can help you with the marketing.
40:36I can definitely help you with getting this made overseas.
40:39But I want to be an equity partner.
40:41I want you to get the upside of this too.
40:43She's really selling you on this.
40:45I would offer you $200,000 for 17%.
40:49Caroline?
40:53It's almost impossible to compete with what Drew's offered you.
40:56This is the guy that's going to take furniture to the masses.
40:59So I think I'll ball out.
41:03We've seen some great innovation for 20 years and this counts right up there among the top.
41:09You're innovative beyond belief.
41:10Like to pour yourself into this for nine years and take something complex and make it look so simple is genius.
41:17You've got incredible offers here and I'm out.
41:20Daniel, I think this is Canadian innovation at its finest.
41:25So I'm going to compete with Drew.
41:27I'm going to give you $500,000.
41:31Okay?
41:32To license you and everything that you know in that brain of yours.
41:35I'm going to give you a 5% royalty on not only this but everything else that you produce in the future.
41:42So you just upped Drew's deal, $300,000?
41:45Very interesting offers.
41:49Can I get a second?
41:50For sure.
41:51It's a big decision.
41:52I really appreciate Wes' offer but I really like Drew and Michelle's offer to actually help me build this.
42:08Is there any way that you could work together to actually help me with this?
42:13You want to huddle?
42:15Let's huddle.
42:15Where do we do this?
42:16Right here.
42:20I'm not good at this.
42:21Marketing negotiations is really hard for me.
42:29Drum roll.
42:32So Daniel, $500,000 and you get a 5% royalty not only on that product but everything else that come out of your brain that we're able to put to the market.
42:43You got three of us on that deal.
42:46Okay.
42:47Let's make a deal.
42:48Got a deal?
42:49Got a deal.
42:50All right.
42:50All right.
42:51Congratulations.
42:52Let's bring it all in.
42:53All three of us.
42:53Bring it in.
42:54Let's bring it in.
42:55Let's bring it in.
42:55Well done.
42:56Well done.
42:57All right.
42:58Thank you very much.
42:59Well done.
42:59Congratulations.
43:00The incredible shrinking team.
43:03It was an expanded team.
43:04It was an expanded team.
43:04It was an expanded team.
43:05It was an expanded team.
43:08It was an expanded team.
43:08In a transitional team.
43:08Everyone was an expanded team.
43:09It was an advanced team.
43:10It was an expanded team.
43:10And now, we'll be able to have the choice.
43:11Next time on Dragon's Den.
43:12dragon stand so the suits um you know it's like our little fishing mullet you know like dressing
43:23for the job you want which is part fisherman and part business person right exactly when you're
43:28coming here asking for money and the money is gonna be to defend a lawsuit okay i'm making it
43:34very simple you may want to contact your lawyer when this is over
43:42put some money in your mouth and your hands fly up on the wheel
43:56you
43:59you
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