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00:02tonight on a special 20th anniversary celebration our most successful past
00:08pictures return to the den big show amazing I think we've officially arrived
00:13but this time as guest dragons for this final special episode our name and
00:21lights this is like the full circle moment sets in Tara Bosch was only 22
00:29when she entered the den and within three years she sold smart suites for 360
00:34million dollars this is actually a crazy view right here if you think about it
00:39Marc Lafleur closed a dragon deal for his locally sourced farm-to-door subscription
00:43boxes and went on to sell the company for nearly 17 million dollars my makeup might
00:49get messed up right now Barb Stegman was the first Atlantic Canadian to land a
00:54dragon deal for her social enterprise the seven virtues and now her sense are
00:59sold globally Wow this is great so comfortable Jay Klein took the pure
01:05company from door-to-door sales to the fastest growing gum business in North
01:10America these look real enough for me I'm happy with this okay I guess we're
01:14doing this and Joanna Griffiths pitched leak-proof underwear and went on to
01:19build NYX into a billion dollar brand now they're ready to invest their money in
01:25the next generation a full circle moment 20 years in the making
01:36first up I think it's incredible to see the dragons who have been in our position and
01:42to see that they have been so successful gives us really the momentum to continue
01:46to push now let's see if this Toronto based team can butter up the full circle dragons with their
01:52tasty offering hi everyone my name is Benson I'm the founder of four four four four means fluffy fluffy
01:58and my name is Sylvia today we're here to ask for $400,000 for 2% in our company okay
02:09back in 2017 while I was traveling Japan we discovered these incredibly fluffy pancakes
02:15I called a Sylvia right away let's bring these stacks of happiness home so I flew there I tried
02:22them and immediately we knew we had to recreate that moment traditional French souffle are soft
02:27while American pancakes are thick and dense so after months of trial and errors we have finally perfected the
02:34recipes a texture that blends the best of a souffle and a pancake together so in 2018 we opened our
02:40very first cafe in Toronto as a new immigrants building a brand wasn't easy but we have done it
02:47right now we are ready to scale let's get you guys to try some of our fluffy pancakes
02:53let's get fluffy be happy all right let's do it okay can't wait to try these 20 million dollar pancakes
02:58expensive pancakes yes our first meal together family this is wonderful so pancake crew let's bring
03:05out some pancakes fua fua dessert cafes offer more than 15 flavors of their signature souffle
03:12pancakes like classic tiramisu blueberry cheese and Nutella
03:16shall I be DJ
03:20I feel like I need to scoot my chair over here I'm interrupting something
03:23each plate of two sells for between 14 and 18 dollars this is probably the best pancake I've ever had
03:30yeah this is amazing I don't even eat pancakes what you don't eat pancakes not ever not ever and this
03:37no way you've converted me it's actually made with the majority of egg whites so we beat the egg white
03:42and
03:42then make it into soft peak and then blend it with them you eat the whole thing you still don't
03:47find it
03:48very stuffy so it's very aesthetic as well you guys go talk business I'll continue to sample this and give
03:55you
03:55some market research you have to ask before you eat someone's food fluffy fluffy pancake okay I feel
04:01like we're floating in fluffy clouds because I heard a 20 million dollar evaluation and I need to
04:06understand how did you get there so we opened our very first location in 2018 and we actually grew
04:12through a successful franchising model we have signed the like overs at about 68 total locations I
04:19just in North America itself oh my goodness you guys are the founders yeah we're the founders that's
04:25amazing what were y'all doing before this so I was a brand curation manager in a conglomerate in Hong
04:32Kong
04:32but like I I love making food and makes people happy because that gathers people together and I
04:38I quitted my job I went to Japan learn pastry I also got a degree of food and beverage management
04:43in George Brown while I immigrated to Canada wow it's incredible what a beautiful story and you
04:50Sylvia so I actually studied accounting and so went to do that but during COVID we decided we wanted to
04:55do
04:55something more exciting serendipity brought you together to make fluffy pancakes how are your franchises
05:03doing how are they performing the ring just depends on the size of the locations if it's a kiosk or
05:09like a like a 2,000 square feet location some can be like 1.2 million US dollars are they
05:16paying your
05:17royalty and they paying us like a six percent on royalty and two percent on like branding and marketing
05:23and what's the franchise fee fifty thousand dollars fifty thousand yeah for 10 years I think you guys have
05:28run a great business where I want to challenge you is you come to a sophisticated group of investors
05:34and you offer us two percent how do you think that's enough for us to get excited we're looking
05:39into hopefully in three years grow to 200 locations and I think that will bring us evaluation if we can
05:46increase like the like the unit per economics of each stores can you give us the revenue numbers from
05:53last year that you took into your pockets our revenues are about 15 million last year that's
06:00GMV though right that's across that's across that's across all the franchisees but what did you all take
06:06home okay so we actually only took home about uh three hundred fifty thousand dollars there it is
06:14wow 350k I think the air has deflated from these airy pancakes so the reason why is because we heavily
06:22invested
06:22back into the company so you guys are doing 15 million gross merchandising volume yeah right so how much of
06:29it is
06:30revenue to your business so the revenue comes from a few different streams so where's the revenue I think we
06:36just want the
06:37number I just want the number so our revenue is about 1.2 to 1.5 million and you're paying
06:43yourselves
06:43out of the 1.2 and then there's 350 left so we actually haven't really taken the salary how do
06:49you
06:49guys live we still have like international yeah we have like other other locations like that is out of
06:56like North America I don't understand what you mean by that we have master franchise for example to UK
07:03then that also bring us revenue oh are you only offering us two percent of the North American
07:08business yes the North American businesses yes oh wow that's news why not the whole company if you're
07:16wanting a partner because I think that like right now is not the time to really go other countries and
07:21scale the businesses most of our focus right now is to focusing but being global is part of your pitch
07:28this is way too complicated for me and you're losing me more and more by the second if I'm
07:33going to get in on something I want all of it yeah and so two percent of North America is
07:36just not it for
07:37me so I'm going to be out what are you bringing in in parts that you're not offering I'm just
07:43curious to
07:44know what you're generating in those countries we didn't put any numbers to calculate the other like
07:49revenue like globally because it's very difficult for is if you ask someone to add up your revenue
07:56together because they are in different currency different accounting system
08:01I'll tell you right now just because of that any founder that could not tell me what their revenue
08:10is I can't get behind it I'm going to be out on that yeah I'm with Joanna I'll be eating
08:14the fluffy
08:15fluffy but your business model is confusing and it's not really enough for us so I'm out
08:21I know what it's like to be in your shoes there we all do I think what's important is to
08:28come
08:28prepared to answer those questions and that was the miss for me here today so I'm out when you come
08:36into the den you have to know your business the art of the pitch is actually how you communicate what
08:41you do with the people you're trying to sell it to I'm out for that reason but I do wish
08:46you luck in
08:46the future take care guys I mean I think when all of us came on dragon's den we all knew
08:55that you
08:55had to lead with exact clarity on what you're asking for why you're asking for where the business is
09:01at and ultimately that's where they felt why it's so hard to when someone says they're an accountant I
09:06mean for me the bar also good I think she knew the numbers but can we take that to go
09:11my number one piece of
09:13advice honestly is to know your numbers I think every pitch that goes downhill goes downhill because
09:19the there just isn't a solid enough understanding or realistic understanding about how the business
09:24works how the numbers work confidence is everything in the dent next gender equality is a big part of the
09:46reason why we are doing what we do this is for the girls and women who feel like they should
09:51be ashamed
09:52out of the most natural thing that could possibly happen to your body this family partnership is
10:00bringing a sustainable answer to one of the world's biggest challenges hello dragons I'm Lisa Hertz I'm a
10:10staff sure goal and we are the founders of be free cup from Hamilton Ontario we're here asking for
10:15five hundred thousand dollars for ten percent of our company
10:21dragons did you know that there are 1.8 billion people around the world who have a period every month
10:27and
10:28500 million of those suffer the indignity of period poverty we're tackling the global period poverty crisis with an
10:35innovative market-based approach be free cup is the world's only physically antibacterial menstrual cup meaning it never needs to
10:42be
10:43boiled which can be life-changing for so many people there are no wings no strings and no sticky things
10:54be
10:55honest if men got their periods we would have been demanding a product like the be free cup decades ago
11:00amen Lisa and Asaf say the be free cup can be used for up to 12 hours of protection during
11:07menstruation and
11:09unlike other cups they do not require sterilization amazing she's so needed in the world it's available
11:16in three sizes and sells for 45 dollars online I think in an industry where the gender tax is a
11:23very real
11:24thing also where humans are inherently lazy and having to boil I love that you're making this feel so
11:31accessible to everyone before we get too deep give me the high-level overview of how it works simply
11:39you know the menstrual blood is coming down and trickling out of the vagina so with a be free cup
11:44you just fold it up you insert it push it up and it sits there and collects when you take
11:49it out you
11:50can just give it a light rinse or even just wipe it clean so we've done cleaning tests at the
11:54research
11:55institution in France and then you can use it again and again and again so basically the surface is
12:01super hydrophobic so a biofilm can't stick to it yeah the crucial point is it's not chemically
12:07antibacterial it won't wash out it won't like what's your background I'm trying to know how
12:14you got into this I was a healthcare worker but then I went into product design and development I'd
12:18known of research that was coming out of Harvard and it was being used on other materials and I
12:23said can we try it on silicone how did you guys meet the staff was in elementary school with my
12:28daughter
12:29and there was this immediate synergy and sense of social justice now he is the husband of my
12:37daughter the father of my grandchild Lisa needed help she was at the time my girlfriend's mom and now
12:43you're wearing the vagina suit we support days for girls to end period poverty around the world and I
12:49believe every country needs to cover this what is your model we are a social enterprise we've kind of
12:55started the opposite way from literally from sub-saharan Africa a menstrual cup is a nice idea but without
13:01access to clean water and fuel to boil it it's it's just another waste we have been working in Africa
13:10since 2013 we work with our local teams local NGOs on the ground in the countries where we're working
13:17always led by the government Ministry of Health Ministry of Education and the business model is looking at you
13:23know direct to government as someone who helped invent the period underwear category I know a lot
13:29about this industry there's a really exciting shift that's happening where more and more governments and
13:34institutions are starting to pay for these products then let's talk about the money part because now
13:40you're turning this into a business which I love because the seven virtues is a social enterprise it's
13:44about making money doing good in the world our sales to date have been 1.1 million and I would
13:50say
13:50that 75% has been that international through NGOs so we've had 1.1 million lifetime to date are we
13:58growing like what happened last year what do we think this year is going to look like so last year
14:02was 385 this year we are anticipating you know 500,000 were you break even or profitable on the 385
14:10I think the break even is going to be 2026
14:14so there's obviously two different business models here you've got the international sort of aspect of it
14:19for people that are in need but then also domestically you have the North American market that we want to
14:23tackle so what's your guys's focus so first of all say that you're right to look at it as these
14:30two
14:31different elements of the business the last few months have been really tough we're here asking for
14:35help because we've put millions into just the R&D we've raised 2.3 million at this stage how much
14:42have you invested
14:44everything oh we put in about 500,000 wow you've personally put in 500,000 dollars yeah we truly
14:53believe we're sitting on a gold mine not just in terms of menstrual cups but this technology the point
14:59is us getting out there and really having that money so that people are aware that the product
15:02actually exists I didn't know that this existed yeah so either you know when I came on dragon's den
15:09one thing that I really made sure to come in with was a really clear plan and I haven't
15:15heard exactly what that plan is I'm so rooting for all that you're doing but I'm out
15:25I don't necessarily think you guys need money I think you need somebody who very much knows the market
15:30for that reason I'm going to be out
15:33Lisa and Asaf I want to thank you for the education today on behalf of the dads
15:39the brothers and the the young boys growing up you have a period expert
15:45or should I say an expert period in Joanna but for today I'm going to be out
15:54what you've created is the solution and it should be taken care of it's a medical device I hope every
16:03government official is watching this episode and starts getting their together because this is
16:09unacceptable Joanna is your partner there's no question you're so passionate about I'm passionate
16:14but I'm not the solution I will lobby with you to get the changes made that you need to be
16:19the kind
16:19of progressive business otherwise we're just but this is the challenge with this category it was so hard
16:24to raise money yes because you sit at this intersection of social human rights right
16:31and commerce I wish I wish you were at the stage for me to invest in you but I'm out
16:43you know it's obvious that Joanna is such a great partner for you someone needs to write
16:49the Dane check right and that's such a big problem that nobody wants to be the first one I know
16:55that
16:55frustration and I think what you're creating is so important and so my feelings have evolved I know CBG I
17:02know retailers I know how to drive brand awareness and make periods cool again and if she'll have me I
17:09will come in with her as a partner okay so here's what I'm going to offer you there's a lot
17:15of work
17:15to do and I know that I can help you tremendously so I think Tara and I will go in
17:21together so
17:22we'll do 250k each but we want 25% of the business
17:31okay you say okay
17:37we're gonna do it
17:41amazing good job guys
17:51you know being it being validated that the work and the sleepless nights and the long days
17:58that the work was worth it
18:10next up I would say that my kids are
18:15the reason that I started this business
18:18I love popcorn
18:21but I really started it so that I could stay home with my kids
18:25now they're grown up
18:28I've got more time to put into the business and we're ready to scale it up
18:34this Yukon mom turned entrepreneur is popping with ambition
18:38to take her Klondike creation from the north to the nation
18:42hello dragons my name is Katie Young founder and CEO of Klondike Kettlecorn
18:47and I've come to you all the way from Whitehorse, Yukon
18:51in order to ask for $225,000 for 15% of my company
18:56I launched Klondike Kettlecorn at our local community farmers market 15 years ago
19:02and I'm proud to say that we are now in retailers across the Yukon, Alberta and BC
19:06I've developed 50 different flavors
19:09now I'm ready to take the Yukon's favorite snack across Canada
19:13and I'm looking for a dragon to join me on this exciting adventure
19:18dragons
19:18I've picked out five of my favorite flavors for you to try
19:22so feel free to share
19:23oh wow
19:24dark chocolate sea salt
19:25I love popcorn
19:27I'm pumped about this flavor
19:28Mark, try this one
19:29okay
19:32we were meant to do business together
19:34Katie says the dark chocolate sea salt and dill pickle are her top sellers
19:40but her unique flavors like birch caramel and spruce tip make the brand stand out
19:45I know a thing or two about popcorn but the coating on this
19:48this is very indulgent, there's a lot of flavor
19:52this is really good
19:53I'm glad you like it
19:54I can't stop eating it
19:56the spruce tip
19:57that's fascinating
19:58yeah, so spruce tips, they're an odd thing to put onto food
20:02but in the Yukon we seem to really like to use spruce tips in our cooking
20:06is it a bit of a hook for you guys, the idea that you have a lot of flavors
20:0950 skews
20:11yeah
20:11we've come up with a lot of different flavor combinations
20:14eight different caramel flavors, eight seasonal skews and then eight of our year-round skews as well
20:21but I still have others to pick from that we've already developed
20:25is everything made out of the Yukon?
20:27yes
20:28talk to us
20:28our production facility in the Yukon is really important to me
20:32and we will keep producing out of there and servicing all of our northern communities
20:37and our direct sales and our online sales
20:39but we have partnered with a co-packer out of Kamloops
20:43okay
20:44that's pretty key in order for us to be able to scale nationally
20:47very good
20:47what are your sales this year?
20:49so our sales this year were $420,000
20:52okay
20:53good for you
20:53and then are we break even?
20:56are we making money on that?
20:57this last year we're break even
20:59only because we decided to invest some money into our website
21:03we also hired a marketing team and a sales broker
21:08it sounds like this has been a great business for you
21:12why scale now and what is that big vision?
21:16absolutely
21:17Barb, I am reading your book and I'm on chapter one
21:21wonder
21:22and the theme is wonder
21:24and I have to say that is absolutely exactly why I'm here today
21:28I know we have a really solid product
21:30and I just feel like I have more to give
21:33Katie, where do you want to go nationally?
21:35what's your dream?
21:35I would like to be in major grocery stores
21:39I know it's a super competitive space
21:40but I think you can stand out on the shelf
21:43I don't want to crush the popcorn
21:45but you know building smart suites
21:47I had two SKUs until we hit well over $50 million in sales
21:53and having the discipline of having a small number of SKUs
21:57gets you in the retailers
21:59which ones are you ready to get rid of?
22:01for our national sales we've signed on with our first distributor
22:06and they've picked five of the SKUs to go with
22:08Jay, I want to hear this from you actually
22:10because popcorn is part of his business
22:12how big is this market?
22:13is this a big part of your business?
22:15the popcorn market
22:15what have you learned?
22:16the popcorn market is big
22:17and I can see a gourmet popcorn like this doing really well
22:21I would also like to hear a little bit about the costing
22:24because when you're making it far from your consumer
22:27so retail, the caramel corn sells for $10.50
22:30the wholesale pricing is $7
22:33how much does it cost for you to make a bag?
22:35$3 for the caramel
22:37great, so about a 50% margin
22:38yeah
22:39you've got a distributor
22:40so I'm just wondering what they're taking in terms of a percentage
22:44our profit margin working with our distributor will go down to 35%
22:48is that an act there?
22:51it's tight
22:52it's tight to be national
22:54what is the plan with your distributor and your plan together for distribution
22:57for Canadian domination with your Canadian product
23:01so our plan is pretty modest
23:02we're opening up BC first
23:04there's a lot of stores that wouldn't take us on until we had a distributor
23:08we didn't bring much to the table for a distributor
23:11because all of our stores are based in the Yukon
23:14Katie, I'm going to jump in quickly here
23:16you're obviously at this important stage where you are making that shift
23:18from being a lifestyle business
23:20and to go to something that's more venture backed
23:22for me, I want to see a little bit more clarity on the ambition
23:26of where you want to get things to
23:27don't be afraid to dream big
23:29to think big
23:30especially when you're bringing on board a partner
23:32but for that reason, at this moment, I'm out
23:34okay, thank you
23:35I think I'll go next after that
23:36so listen, it's difficult to build a business in Canada
23:39I think everybody knows that
23:40even more so in the Yukon
23:41what you've done is incredibly impressive
23:43but I'm not a huge fan of popcorn
23:45I'm going to be out just because I'm not a user of the product
23:49you know, Katie, when I hear you say that
23:52the distributor didn't think that you guys had enough to offer
23:56that gets me fired up
23:58because I'm like, you have so much
24:01you've been creating this for 15 years
24:03I think there's such power
24:04if you can't reach a retailer from the top
24:06to reach them from the bottom
24:08go into the stores, meet the store managers
24:10and that's also how you can get the merchandising
24:13and tell the story that you have
24:15in such a powerful way
24:17I love popcorn
24:19but I don't love sugar
24:21I'm out
24:25Katie, I love your story
24:27I love your innovation
24:30for me, it's a little bit uneasy
24:33for me to get into another popcorn business
24:36I'm going to be out on this deal
24:39Ever since I was little
24:40all I dreamed of was selling popcorn and iced tea
24:43two things that are of huge profit margin
24:45I'm in love, it's my favourite snack
24:47Fragrance is the hottest business right now
24:50it's the highest beauty category
24:51we're on fire outpacing all growth
24:54if we can do something fun
24:56with the popcorn candles and perfume and gourmand
24:59I think we shake it up
25:01and not do what everybody else is doing
25:02that sounds amazing
25:04is that an offer?
25:05Is there a deal?
25:06Is there a deal?
25:07Is there a deal?
25:07Is there a deal?
25:07Looking at the numbers
25:09it's a bit steep for me
25:10So we are just launching in TJX
25:13there's 500 stores in Canada
25:15by the end of 2026 we could double our revenue
25:19My only concern is that I do not have the food background
25:27When I was standing where you are
25:28I needed wisdom from my investor
25:31Barb, I feel like I really connected with you
25:34when I looked into your business
25:37and I feel like what you are trying to do globally
25:40is what I'm doing in my community
25:44I thought I was going to get through this without crying today
25:46but I do really connect with you
25:52Suspense is killing me
25:57225 for 20%
26:05You ready?
26:06Let's do it
26:07Yes!
26:12Barb, thank you!
26:13This is an amazing deal
26:14That was amazing
26:15This is a great deal
26:16Thank you, Katie
26:18Thank you so much
26:19I was like, I've never been in the food business
26:21but hey
26:22You are now
26:22I've never been so invested emotionally in a deal
26:26Like I was holding my breath
26:28That was unbelievable
26:30It's possible
26:32That's really what I want people to know
26:33is that, you know, you should be uncomfortable
26:35you have to get uncomfortable
26:36you have to go do things that terrify you
26:39but they're worth it
26:40because that's when you grow
26:41that's when you stretch
26:53Next up, a solo founder ready to milk an opportunity
26:57and make big moves in the dairy farming industry
27:00Hi dragons
27:02My name is Dr. Sherry Vanderpool
27:04I'm from Hamilton, Ontario
27:06I am the founder and CEO of Catalytics
27:09and I'm also both a large animal veterinarian
27:12and a computer engineer
27:14Wow, good for you
27:16I'm looking for $1.2 million for 10% of my company
27:22We are revolutionizing dairy software
27:25by creating smart solutions
27:27Now, dairy farmers work incredibly hard
27:31This is a really complex industry
27:33but they're using WhatsApp for management
27:35protocols are in a dusty binder
27:37and on top of that, their software was made in the 80s
27:40This is a $21 billion industry
27:43and we can do so much better than this
27:45So, I founded Catalytics
27:47We do management, team and data connection
27:50because farmers say
27:51I'm great with cows, not so great with people
27:53We help them be great with people
27:55So, everybody knows what to do
27:57how to do it and when to do it
27:59And now we have, dare I say
28:01the best dairy scheduler out there
28:03So, together we can be legend
28:05Dairy
28:07Hey!
28:08Oh, I love it
28:10Actually, there's a couple cows that need to be looked at today
28:14I'm wondering if anybody would want to be a dairy farmer with me
28:17Cows?
28:17Oh my gosh, who does not want to be a dairy farmer?
28:19Pumpkin and Spice?
28:21They need a checkup
28:22Oh, wow
28:23Real cows?
28:24So, I was hoping that you could do a checkup with me
28:27on these beautiful show ready cows
28:30Oh my gosh, they're real
28:31Oh my gosh
28:33Oh my gosh
28:34I've never actually been this close to a cow
28:37Do you want to touch it?
28:38Can I give it a try?
28:39She's beautiful
28:39Sherry says the platform is an all-in-one farm management tool
28:44that saves farmers time and money
28:46She's created a task manager that automates daily operations
28:50like training and staff schedules
28:52and tracks chores
28:53Yeah, yeah
28:54Never pet a cow before
28:56Oh, it's so fun
28:56Another component in development is a dairy management system
29:01which can track each cow's milk production and monitor its health
29:05And finally, that tracked data can help pinpoint where farmers may be losing profits
29:11through inefficiencies and offer potential solutions
29:16Aww
29:17Amazing
29:18Okay, let's get moving back to my chase
29:20Yeah
29:23Just being from Anna Ganesh, rural Nova Scotia
29:26and having a cow as a pet as a child, my cow Buttercup
29:28We know we're facing a lot of challenges in the industry
29:32We're seeing the kids are not necessarily taking over the farm
29:35And so, this kind of software is going to be really important for farmers
29:39Absolutely
29:40Like, it absolutely is
29:42So, just our task manager alone
29:44I mean, I called some of our clients and they're like
29:47Yeah, easy two hours a day, it saves me
29:50Wow
29:50It's massive
29:51And when I was going to dairies
29:52I started modeling things like lactation curves
29:55But one of the farmers I was talking to
29:57I was looking to his data
29:58And I said, you know
29:59Why is it that last October you made so much less milk?
30:04And then when I talked to him about it, he said
30:06I know what it is
30:08I changed my feed
30:09And when we uncovered the amount of money that meant
30:12It was huge
30:13But because of the complexity on a dairy
30:15It's really difficult to actually tease out what's causing the difference
30:19But when we were able to do that, we were able to uncover so much
30:23How much money have you put into this so far?
30:25Did you say cow much money?
30:26I don't know if I'm just hearing that
30:28That would be a good one
30:29Yeah
30:29So cow much money?
30:31So it's taken about $1.4 million to get to this point
30:34Whoa
30:34Wow
30:35But we have no debts
30:36Where did you get $1.4 million from?
30:39This actually is a priority of the Canadian government
30:41And they have been so generous as well
30:44And they funded you as well?
30:45Yeah
30:45Good job
30:46That's very good
30:47And do you have any investors?
30:49No, we don't
30:50That's incredible
30:50Congratulations
30:51So it's you?
30:52Yeah
30:52That's amazing
30:53That's amazing
30:54And quite the feat to get to where you have
30:56And bootstrapped it along the way
30:58And to be a solo founder on top of that
31:00Like I am so inspired by you
31:03But you did this too
31:04I'm inspired by you guys
31:06So what's the revenue model?
31:08How do you make money?
31:09I knew you guys were going to get into that
31:11How do you make the money?
31:12I can only keep you distracted with cows so long
31:14So there's three tiers to it
31:17The first tier is really that direct to farmer software as a service
31:21So it's an annual $750 for farms that are less than 1,500 cows
31:27Okay
31:28The second tier is the one that we're building right now
31:31And that's the management
31:32And the market for that right now is $3 to $4 a cow
31:35And the third tier is really the data analysis
31:37Okay
31:37Tell us a bit about how many customers you have
31:41So right now we have 200,000 cows on our platform
31:45So are you making $4 at 200,000 cows?
31:48I'm just trying to get the math on this
31:50So there's the three revenue streams
31:51One is getting the data in and providing those team services
31:54That's a minimal amount
31:56So I get the streams
31:57Can you convert that to dollars?
31:59Okay
31:59Tell us the dollars
31:59I'm trying to do cow math over here
32:01Trying to do cow math
32:01It's last year we made
32:03So last year we made $120,000 off of that first piece that we had out
32:09Which was our team piece of it
32:12Did you guys break even then?
32:13Or?
32:14So we still didn't break even
32:15Our burn rate is probably about $9,000 a month
32:18Gotcha
32:18So you guys lost about $120,000
32:21Yeah
32:21Gotcha
32:22Okay
32:22So we do have
32:23Here's what I'm worried about with your valuation at the moment
32:26You've got one tier of revenue that is going well
32:30And then you've got two potential in the pipeline that we don't have proof for yet
32:35Yeah
32:35And if this doesn't go as planned
32:38It's going to be really hard to get a valuation that's higher than $12 million
32:42And I think to what Joanna is saying too
32:44I think if you choose a valuation that puts you in a pressure cooker
32:48That sets the expectation for growth and the pace that you're going to grow at
32:53Today I am passionate about petting your cows and hugging them
32:58But not as much about managing them
33:01So I'm going to be moving out of this one
33:07Here's what I'll tell you on that too
33:08This goes from being something that everybody here is really excited about
33:11That we can invest into you trying to milk a deal
33:13So I'm going to be out
33:15Okay
33:16But the thing is is that we talked about three streams
33:19But two of the streams have money set up for the next year
33:22So we still have an additional almost million dollars
33:25In matching funds from the Canadian government
33:28It's a lot of money, $1.2 million
33:30It's not a small check
33:31Right
33:32And I don't know enough about this industry to be helpful
33:35I just can't get behind it
33:37So I'm out
33:41I would challenge you to hang onto your equity a little longer
33:44And see if you can build your numbers
33:46Grow, convert, and add on more farms
33:49I'm out for that reason
33:51But I do wish you luck
33:52Okay
33:54Shiri, memory lane for me
33:56Buttercup
33:564-H Club
33:57My Cow Buttercup
33:58Looking at her big brown eyes
34:00Yeah
34:00And you know when I think about you
34:02And I think of my farmers in Afghanistan
34:04And Haiti and Rwanda helping them
34:06But I'll tell you when I stood right there
34:08And I know what it feels like
34:10Thinking you need all this money
34:13I really don't think you do
34:15I had one investor
34:16Brett Wilson here on Dragon's Den
34:18And then I bootstrapped for 15 years
34:21Wow
34:21Until I got my millions of investment
34:24You can bootstrap
34:25With the money you're getting from the government
34:27And this is yours
34:29And I want that for you
34:31Today I'm going to be out
34:34Okay
34:35Thank you, Shiri
34:36Okay
34:37Thank you
34:38Congratulations
34:40She's got this though
34:41She's a smart cookie
34:42She's got this
34:43Doing that as a solo founder
34:45It is truly nothing short of incredible
34:47She is amazing
34:49To be part of the Dragon's Den legacy
34:52Is a huge honor
34:54I could never have imagined
34:55When I watched the show obsessively
34:59In my early teenage years
35:00That I could maybe be capable of acting on an idea
35:03The advice that I would give to entrepreneurs
35:06Think big and then pause
35:08And think even bigger
35:24And finally
35:26These university grads from Montreal
35:28Are here with their natural performance solution
35:30Designed to keep athletes buzzing
35:33Hi Dragons, I'm Jeremy
35:34And I'm Maddie
35:35We're here today asking for $150,000 for 10% of our company
35:40Jeremy is a long time gym goer
35:41And I used to play competitive soccer
35:43We never really liked taking chemical free workouts
35:45Instead, we just used honey
35:47After testing different markets
35:48We realized that runners are the biggest gel consumers in the world
35:51Most gels on the market right now
35:52They either taste bad or they're filled with chemicals
35:54But Hornet Energy is different
35:56Made from pure honey and pink helium salt
35:58With the optional caffeine coming in from black tea
36:00And the 100% natural flavors
36:02Hornet Energy tastes amazing
36:03Digests clean
36:04And fuels you naturally and optimally
36:06Dragons, how about we go for a quick taste test
36:08There's all three flavors
36:10Blueberry raspberry
36:11Original, which is matcha
36:12And apple cinnamon
36:14And the three gels under them
36:15It's the same flavors
36:16But just the caffeinated 50 milligram version
36:18Jeremy and Maddie
36:19Say the honey's natural sugars
36:21Deliver about 30 minutes of boosted energy
36:24While the pink salts help keep electrolytes balanced
36:27I'm obviously gonna go for the caffeine so I can be buzzing
36:31A single serve pouch sells for about $3
36:35Well, the apple cinnamon's really good
36:36It is actually good
36:37It just tastes like honey in a pouch
36:39Yeah, don't like honey?
36:40It's the purest Canadian honey we can find in large volume as well
36:42It tastes better than other gels in the market for sure
36:44Like there's no question about it
36:46Do you use these a lot when you're running?
36:48I use these a lot
36:48So I run essentially every day
36:50You know, we'll be doing 90 kilometers a week in training
36:52Wow
36:53And I want to find a more natural alternative
36:54So this is filling a need flavor-wise?
36:56Mark, I drove 90 kilometers last week
36:58Yeah
36:59So guys, now that you've tasted it
37:01How about we put it to the test?
37:04In the Hornet Energy Gym
37:05Hornet Energy Gym
37:07Oh my goodness
37:10Mark and Jay, how about you guys go get in your gym clothes?
37:12Jay, you ready?
37:13Mark, I'll see you in the gym
37:15All right
37:15Fall in the eyes
37:16Jay, write the muscles
37:17Let's go
37:18Let's go
37:19Are you intimidated?
37:20Yeah
37:20Keep those away from me
37:22Three
37:22Two
37:24One
37:25Go
37:25Peace
37:26They're putting two dragons to the test for a three-minute run
37:30To see who finishes strong and who's left winded
37:33A minute down
37:34Mark, how you doing? You tired?
37:35We're good
37:36I've got a secret weapon here
37:37Where are you going?
37:38With Mark as the only one powered by Hornet Energy
37:41Oh
37:42Gotta pick it up there, Jay
37:44I'm trying
37:44Does anyone need a towel?
37:46Some water?
37:47Mark doesn't look like he's fading
37:48Stay focused
37:50Five
37:50Four
37:51Three
37:52Two
37:53One
37:54Stop your treadmill
37:56Woo
37:57Who did it?
37:58Congrats guys
38:02And the winner by unanimous decision
38:05Mark
38:06Yay
38:08I present to you the Hornet Trophy
38:11Thank you Tara
38:12Yay
38:13I'd like to dedicate this to the Hornet guys for getting me through that run
38:17Thank you so much
38:18Well done
38:19Congrats
38:22I was waiting
38:23I was waiting for that
38:26Cheers
38:29How did you come up with this?
38:31I was in university with Madi
38:33And we saw this trend on TikTok about this honey and pink salt challenge
38:36People going to the gym ingesting honey and pink salt
38:38And that gave them a pump
38:40I looked online
38:40Not many options
38:41Like well we gotta commercialize this, right?
38:43Yeah, just became a co-founder and the rest is history
38:45That's a great story
38:46How many competitors do you have?
38:48Direct ones with honey
38:48Yep
38:49One in Canada
38:49I'll say this is a better product
38:51Yeah
38:52Here's the thing
38:53Somebody's gonna win in this space
38:54This is gonna be who can market better
38:56Who can get into the running community better
38:58Right
38:58Because there are a lot of incumbents in the space that are doing a good job
39:01Why don't you tell us a little bit about your business and your financials and your sales
39:05Lifetime revenue so far in that year and a half has been close to 100,000
39:07With more than half coming in this year alone
39:10Wow
39:10We have a distributor that we just launched like about a month ago with 800 stores across Canada
39:14So the stores that they have access to they basically have all the sports checks all the sports experts
39:18That's already a huge market
39:19Those alone are six-figure deals
39:21What's your production in the factory?
39:23You're going all across the country and how will you keep up with that?
39:26We own a production facility
39:27We now make close to 500 gels per hour at maximum capacity
39:30But we are in very heavy talks with the supplier to make new machines that will make up to 2
39:35,000 gels an hour
39:36Which is eight million dollars a year in potential revenue automated
39:39And how much does it cost you to make one of those?
39:41Per gel is about 30 cents
39:4330 cents?
39:44Have you guys thought about doing this as a subscription?
39:47Because I'm always looking, same thing
39:48We actually launched it recently and we've amassed over 100 subscribers
39:51And since our subscription model entails a three-month commitment
39:54Those 100 subscribers is basically 300 guaranteed orders
39:57Which is basically $15,000 of guaranteed money at 50% margins
40:01Wow
40:01Great
40:02What does five years look like from now, revenue-wise?
40:06Well, five years will be the biggest natural gel in the market
40:08Like our only goal right now is to make 50k next month
40:10Step by step
40:10Look, I think that it's so important to, yes, take it step by step
40:15But also to know where you're going
40:16I mean, it's a bit of a funny question
40:19Because right now operations are going to get pretty lean
40:21And our goal is just to get into the room
40:23You're financed though, so I'm sure you run the model, right?
40:25Yeah
40:25Like, I'm hoping you have a financial model
40:27Yeah
40:27You do, right?
40:29I can tell you, year one, 500,000
40:31Year two is two million
40:32Year three is five
40:33And year three is where we get to Europe, United States and all this
40:35How are you guys differentiating yourselves?
40:38I'm thinking about brands that are scaled way beyond where you guys are today
40:41That you will inevitably sit on shelf next to them
40:44We go viral on a weekly basis on Instagram
40:46Our ads are insanely good
40:47We tend the most run clubs out of any of our competitors
40:49And we actually show up and run with them
40:51We don't say, hey, I'm a product
40:52We just run and talk
40:53As a runner
40:54Because we are runners
40:55We actually came and sponsored the Toronto Marathon
40:58I think Mark was running it actually
41:00I don't know if he had to
41:01They have been there, yeah
41:01This is the kind of spirit we want to see in entrepreneurs
41:04I don't think I would see anybody like you two
41:06I love how you guys show up
41:09Me too
41:09I think so much of entrepreneurship is just showing up
41:12Absolutely
41:13Jeremy and Maddie, we see ourselves in you guys
41:17And we know we can bring this thing full circle
41:20And get you to scale your company the same way we have
41:23Today we'd like to present you with an offer for $150,000
41:27And all five of us are going to split 30%
41:31There's a big gap in valuation
41:33We come here with a $1.5 million
41:34You guys offer $500,000
41:37But we are willing to budge to $250,000 for 25%
41:42I think the valuation that you're bouncing back to us
41:46Is just not rooted in reality of where you guys are today
41:48Or in a way that I think any of us would feel honored
41:51In participating in your journey
41:53The reason why is that if we are to sell 25% of the company
41:56I would then have around 51%
41:58I want to retain that because I want to control my own company
42:01I'm the founder of this
42:02Think about the multiple that you're asking us for though
42:04On a numbers perspective
42:06We are honored to be here
42:07But we're very adamant on that 25%
42:09We're literally doing what you did with Pure
42:11And what you're doing with Smart Suites
42:13In the gel industry, in a booming industry
42:14This market is going to exponentially just grow
42:16How are you guys going to get to that market without some help?
42:20We're very confident in our ability to do it ourselves as well
42:23But the thing is
42:25You guys want founders that are also going to always look for a better deal
42:28And listen to our gut
42:30I did exactly what you did just now in my pitch
42:34And I don't want to speak for everyone
42:36But I'm going to here
42:38I think 5% each is a fair trade-off
42:40Yep
42:44I'm happy to throw in one of my percent
42:46Yeah, I'll do it for sure
42:47Yeah, I'm in
42:49Tara, are you okay?
42:51Tara, let's see
42:54I mean
42:57I think there are those moments where you are taking a bet on the person
43:03And I believe in you
43:05So yeah, let's get buzzing
43:17Let's do it
43:18Awesome
43:18Thank you so much
43:19Love what you guys are doing
43:20Thank you
43:20Thank you
43:22We came here like with the mind that perhaps we would get a deal
43:24But who knows, right?
43:25And now all five dragons
43:27And I'm happy that we stuck to our guts and you know, stood our ground
43:30This is a great deal
43:31Great founders, like this is what you want to see, right?
43:33It's what you want to see
43:34You know, these guys are going to do great things
43:35Oh my god
43:36We get to stay together forever
43:41Oh my god, we get to stay together forever
44:05Thank you
44:07Thank you
44:08Thank you
44:09Thank you
44:09Thank you
44:10Thank you
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