- 6 hours ago
Category
📺
TVTranscript
00:00Tonight, Fawn Weaver, the founder of Uncle Nearest Premium Whiskey, returns to the tank.
00:06I think you're incredible. You're an absolute genius. Creative genius.
00:10I want to work with you so badly.
00:12Why would anybody buy this paint in the ass?
00:15Don't fall asleep at the switch.
00:17Hold on one second. Let me get there.
00:19Silence, please.
00:20The industry is a sea of sharks.
00:23This has never happened in Shark Tank history.
00:25You are living the American dream.
00:27You have no idea how crazy this thing is going.
00:32The drama.
00:38Good morning, everybody. Let's have a wonderful day.
00:41We're going to have a great day.
00:43Yes, we are.
00:44Yay!
00:45Here we go.
00:48First in the tank is an entrepreneur on a mission to help the world sleep more soundly.
01:02Hey, sharks. I'm Anders Olundsen. I'm from Eagan, Minnesota.
01:06I'm here seeking $400,000 for 4% of my company, Remplenish, a new solution for a solid night of
01:13sleep.
01:18Have you ever shared a roof with someone who snores?
01:22Then you know when one person sign logs, the whole house is losing sleep.
01:29It's like sleeping with a lumberjack.
01:38I'm here for a long time.
01:39Oh, no!
01:42No!
01:52So, what if I told you all those snoring struggles could be snoozed away with just one simple daily routine?
02:00I'm in.
02:01By playing?
02:01Yeah, right.
02:02I'm in.
02:03The didgeridoo, an ancient aboriginal instrument.
02:06What?
02:07Oh, my God.
02:13So it looks crazy, Sharks.
02:15I know.
02:15But studies have shown routinely playing the didgeridoo
02:18can improve snoring and sleep apnea.
02:20How?
02:21By exercising the upper airway muscles
02:23that collapse during sleep.
02:25What?
02:25But who wants to play a didgeridoo every single day?
02:30Sharks, you don't need a didgeridoo.
02:32You just need the Remplenish Mayo Nozzle.
02:37This patented innovation turns an ordinary straw
02:40into a powerful workout for your airway.
02:42Remplenish provides guided exercise repetitions
02:45with targeted resistance
02:46all through the natural action of drinking.
02:48Watch this.
02:54And that's it.
02:57Sharks, no more bulky machines, painful surgeries,
03:02or silly gadgets.
03:04Now, who's ready to ride this Rem cycle of momentum
03:06and wake up the world to a whole new way of sleeping?
03:10You have Remplenish products in front of you,
03:12so you two, how about you go get a good night's sleep
03:15somewhere else?
03:16And get that chainsaw to work.
03:18So before you start,
03:20so we'll just walk through a few different things.
03:21So these are our main product lines.
03:23We've got the Remplenish Mayo Nozzle,
03:25and then you have the steel bottle.
03:26So that makes it portable and convenient.
03:28So when you drink out of a straw,
03:30you're pursing your lips,
03:31you're using your cheeks,
03:33and your tongue's going back.
03:34I can't get any water.
03:35Yeah, so if you try and drink it like a straw,
03:37you're not gonna get water.
03:38You couldn't get any water?
03:40So how to use it,
03:41we'll have an animation video play.
03:43So there's three things.
03:44First is the spot placement.
03:46So this is where the tip of your tongue should normally go
03:49when you initiate swallowing.
03:50When you put it in your mouth,
03:51you're gonna go all the way to the large bump,
03:53and then you're using your tongue to create the suction.
03:56It's working.
03:56How does it feel?
03:58It's weird.
03:59It's not comfortable.
04:01Okay, so try doing this right here.
04:03Suction your tongue to the roof of your mouth.
04:05It's basically a workout for this area, right?
04:07So it's not supposed to be easy.
04:08So yeah, it's not supposed to be easy.
04:09It's targeting.
04:10It's like you're working out muscles
04:11you haven't worked out for a while.
04:12Anders, Anders, why would anybody buy this pain in the ass?
04:15Yeah, so people, there's over a billion people
04:18who suffer from sleep-related breathing disorders,
04:20such as obstructive sleep apnea.
04:21Listen, you had me at stopping snoring.
04:25Because I am married to the most incredible human being
04:29in the world.
04:29Yep.
04:29But the man snores very, very loud.
04:32And he would be perfect if it weren't for that, right?
04:36Yep.
04:37I just don't understand how my husband goes from sucking on this
04:40to me not needing to wear earplugs every night.
04:44Really, as you drink more of it, you'll feel it more.
04:47How long does it take before you see the benefits?
04:49Yeah, so people start to see results in one month.
04:52So in our original research, we had 37 participants.
04:55Usability study, 93% of snorers report improvement in snoring
04:59after one month of use.
05:00And that wasn't, we didn't measure if it was completely gone.
05:03Is that your only test?
05:04We also have, we did a feasibility study with Mayo Clinic.
05:07What happened with Mayo Clinic, though?
05:10Because 37 people, you know, is not a lot.
05:13Yeah.
05:13But Mayo Clinic did what?
05:15So there's statistically significant correlation
05:17between tongue strength and AHI reduction.
05:20So that's apnea hypopnea index,
05:22how many times you stop breathing at night.
05:24And what that means, it's a positive indicator
05:27that we should do an efficacy study.
05:29So if I'm understanding right, that study told you
05:34that you should do more studies.
05:37A bigger study, yeah.
05:38Because it did, right, a bigger study.
05:39You didn't really get an answer out of it.
05:41It just said that this is kind of hopeful.
05:44Yeah, yeah.
05:45Okay.
05:46What are your sales?
05:482022, we did 450,000.
05:522023, we went up to 1.1 million.
05:55Wow.
05:55Last year, we had almost 300% growth for 3.9 million.
05:59Wow.
05:59That's incredible.
06:01What do you think you'll do this year?
06:02We're projected to do between 8 to 10 million.
06:05Wow.
06:05How did you go from, in 23, 1.1 million,
06:09to triple in a single year? What happened?
06:12Through meta-advertising, mostly.
06:14Well, let me ask you this.
06:15On the 3.9 million, did you make a profit?
06:19Yep, so we made 436,000.
06:21What does it cost you to make,
06:23and what do you sell it for?
06:24So the nozzle, it's about $6,
06:27depending on which version.
06:28With the bottle, it ends up being about $16 cost.
06:32Okay, and what do you sell them for?
06:33We sell it through our website for $90,000,
06:35for the two together.
06:36That's a huge margin.
06:38Wow.
06:38Let me kind of clear the field here a little bit.
06:41I love sales.
06:43I'll make you an offer.
06:44I'll give you the $400,000.
06:45I thought you were saying you were going to clear the field.
06:48Let's get an offer.
06:49Silence, please.
06:51I'll give you the $400,000 for 10%.
06:54No royalty?
06:55No royalty. Straight on.
06:57Wow.
06:57He loves his royalties.
06:59Anders, I love...
07:00Thank you for the offer.
07:01I love sales.
07:02You are absolutely living the American dream
07:06and building a great business.
07:084% just isn't exciting to me.
07:11Yes.
07:12I'm out.
07:13Congratulations.
07:14So, I'm a bit familiar in the sleep space.
07:17I did a deal with a company called Hug Sleep with Mark.
07:21They're at $47 million in sales,
07:23and we did do a trial with Mayo Clinic
07:25that showed that if you use the Hug Sleep,
07:28you actually do sleep better.
07:29We got results.
07:31Yep.
07:31To me, the biggest thing that actually gets a consumer
07:34to pay attention and buy
07:36is when you actually have those trials and those statistics.
07:39For me, it's just too early.
07:41You're great.
07:42I wish you the best of luck, but I'm out.
07:44Anders, don't fall asleep at the switch.
07:46You have an offer.
07:47Wait a second.
07:52I'm going to tell you a story that I don't think any of the sharks know.
07:56When I was 12 years old, I developed insomnia.
08:00And I think it had to do with when my dad talked to me about what he went through through
08:05the Holocaust.
08:06I could not put myself to sleep.
08:08And then I accepted that I was meant to have insomnia for the rest of my life.
08:13Only last year, I'm now 56, that I developed the ability to get a full night's sleep.
08:18And it's completely transformed my life.
08:21And there's a bunch of things that I did that helped me finally conquer it.
08:26I can already think of hundreds of ways in which I can help you.
08:29This has never happened in Shark Tank history.
08:32This is my seventh season.
08:36And Kevin signaled that he would do this together with me.
08:39And he's very complimentary to me.
08:41So if you want, we would do...
08:43Yeah, we'd split it.
08:44I like this space.
08:45I like you.
08:46We're pure investors on this deal.
08:48If you're putting up $200,000, how much equity?
08:51Because that's all it is, an equity deal.
08:52I was going to ask for more, but then you came with that 10%.
08:55If you feel, because two sharks is worth more, let's go for 15 and split 7.5 each.
09:01That's too high.
09:03I would do 12%, 6 and 6.
09:09How about 8% for the two of you?
09:11Oh, that's not enough.
09:12We haven't heard from you either.
09:14Yeah, so I'm intimately familiar with the problem.
09:18I would love for wives all over the world
09:22to be able to have a solution.
09:25So this is what I will say.
09:27I am going to take this home.
09:30I'm going to have my husband use it for the next three months.
09:34Yep.
09:34And if it works, I will put it all over my social media for free.
09:40But I think that they're the better sharks for you.
09:43I'm out.
09:44Yeah.
09:46What are you going to do?
09:49I'll do it.
09:50You know, and this is...
09:51I really value what you guys can bring to the table.
09:54And I'll do it for 10.
09:56You in?
09:59Are you in at 10?
10:04Let's do it.
10:05Done.
10:06Yay!
10:07Here we go.
10:08The drama!
10:10Congratulations.
10:11Thank you very much.
10:13Great presentation.
10:14Yeah.
10:14Woo!
10:19With Kevin's marketing expertise,
10:21and Danielle really building up a company
10:24and a strong brand and staying true to the mission,
10:26it's going to be amazing.
10:28So we're really excited to see where this will take us
10:30and excited for the future of helping more people
10:32on their airway health journeys.
10:34What will happen now,
10:36one will take a phone,
10:38give it to her husband,
10:40and if it works,
10:41humanity will be saved.
10:57Next up is a version of beer
10:59made for an overlooked consumer.
11:10Hi Sharks, I'm Caroline,
11:12founder of Beer Girl from Laguna Beach, California.
11:16Today, I am seeking $125,000 in exchange
11:20for 10% of my company.
11:23Let's be honest,
11:24most beer has been made by men for men.
11:28For decades, women in beer ads were merely
11:30bikini-clad extras.
11:32We weren't the customer,
11:33we were the scenery.
11:35While running my family's brewery,
11:36I noticed time and again.
11:38Women would come in,
11:39browse our beer lineup,
11:40and then order a seltzer or cider.
11:42So I started asking why,
11:43and I kept hearing the same thing.
11:45Beer makes me feel too heavy,
11:47too bloated,
11:48and it just doesn't feel like it's made for me.
11:51So I teamed up with our head brewer to change that.
11:54Introducing Beer Girl,
11:56a light, crisp, Mexican-style lager
11:59that's made from corn, not wheat.
12:01It's gluten-reduced,
12:03contains zero sugar,
12:04and it has a low alcohol content,
12:06and yes, even bikini-approved.
12:09So what do you say, Sharks?
12:11Are you ready to grow the beer industry?
12:13One cute can at a time.
12:16Love you.
12:17Great job.
12:17What do we have in front of us?
12:18In front of you is our Beer Girl Light Lager.
12:22I'd love for you to give it a try
12:23and let me know what you think.
12:24Oh, it's really good.
12:25You like it?
12:26Really good, yeah.
12:27I like it, too.
12:28I like it.
12:28Really? Oh my gosh, thank you so much.
12:31And is this lower alcohol?
12:343.5%.
12:34What's the average beer?
12:36A light lager,
12:37you'd be looking at around 4.2.
12:39You said it's Mexican-style.
12:41All Mexican lagers are corn-based,
12:43so naturally they're easier on your digestive system,
12:45as opposed to wheat.
12:47Did you say you had a family microbrewery?
12:49I mean, where are you making this stuff?
12:51So my family has a brewery
12:52in the Central Coast of California
12:53called Wagamill Brewing Company,
12:55and that's where I had the idea for Beer Girl.
12:58We started contract brewing at my family brewery,
13:00but quickly hit capacity there,
13:02and now we're brewing at a contract brewing facility
13:04in Southern California.
13:06Tell us about you.
13:07My background's actually in music singer,
13:10songwriter, performer.
13:11I was an opening act
13:13for various R&B artists on tour.
13:15And when the pandemic hit,
13:17obviously the entertainment industry shut down,
13:19so I dove into business with my family,
13:22and we built it from the ground up.
13:23And Caroline, what are your sales today?
13:26In summer of 2023
13:27is when we launched the brand on draft.
13:29From summer of 2023 to summer of 2024,
13:31it was $140,000 in sales.
13:33And what about summer 24 to now?
13:35It's around that $140,000, $160,000.
13:38We're now in talks with all of the big distributors.
13:41What percentage of beer drinkers are women?
13:4325%.
13:44Okay.
13:44What will you do this year?
13:46With our retailer
13:48that's already authorized us
13:49for the 150 doors in the fall,
13:51and I do believe I'm very close to closing
13:54another 330 doors,
13:56we'll be at $1.1 million by this time next year.
13:58I'm in two categories of beverage.
14:01Yeah.
14:01Wine, which I now sell six million bottles a year.
14:04Yeah.
14:04And I've just launched tequila.
14:06I looked at beer.
14:07The only thing interesting about this is you,
14:10because the beer category...
14:12Not the category.
14:12There's no...
14:14It's all marketing as you figured out.
14:16Have you started to tell this story about you on social?
14:19I have not invested anything into social media.
14:21I've invested into field marketing and events
14:24because I knew to get the velocities up
14:26that I needed to get the attention from distributors,
14:29I needed to be in store every day demoing liquid to lips.
14:34So I've invested the capital...
14:35Liquid to lips.
14:36Liquid to lips.
14:37Liquid to lips.
14:40Field marketing.
14:40Yeah.
14:41So what are you selling this for?
14:43What does it cost you to make it?
14:44It cost us $4.60 to make a six pack.
14:46We sell in at $8.40 and the MSRP is $11.99.
14:51You're coming into an industry that is jam packed
14:54and the only thing that really will set you apart
14:57is great marketing.
14:58Yeah.
14:59Which is, I believe you have that here.
15:01I have watched this industry.
15:02You think this is a bunch of sharks.
15:05Yeah.
15:06Oh, yeah.
15:06Oh, yeah.
15:06The industry you have chosen...
15:08Yeah.
15:08...is a sea of sharks.
15:11And so you're going to need a roadmap for sure.
15:15One of the things that people didn't really understand
15:18with how did Uncle Nearest grow,
15:20we're not supposed to be here.
15:22You come into this industry, you have two options.
15:23You either fail or if by some strange stroke of luck,
15:27you're able to succeed a little bit,
15:29then you are forced to sail.
15:31And so I came into the industry and said,
15:34mmm, I'm going to create a third option,
15:36but I can't do that if I follow the model.
15:39Yeah.
15:39And so my distributor network,
15:41I went into all 50 states in 19 months.
15:43Amazing.
15:44With 17 distributors.
15:46Wow.
15:46I have the best distributors in every single state.
15:49Beer category is in so much trouble
15:51that every single one is looking for the next thing.
15:56Where I'm not sure here is,
15:58what is it beyond the marketing?
16:00I don't think I've heard that yet.
16:02It's that it's gluten-reduced.
16:04I will tell you, so I have Lyme disease.
16:06I struggle with sugar.
16:08I think it's the low sugar
16:10and then it being gluten-reduced and corn-based.
16:12Carolyn, look, I think it's a tough industry.
16:14I'm getting a master class in distribution from Fawn.
16:18It's not for me. I'm out.
16:20Robert, can I say that your story
16:22has been one of the biggest inspirations
16:24for me and my family.
16:25My grandmother was a refugee from former Yugoslavia,
16:29now Croatia.
16:31Walked on foot to Austria.
16:32Immigrated to the U.S. at 19 years old
16:35with nothing in her pocket.
16:36And now I'm standing here on Shark Tank in front of you,
16:39which is a definition of the American dream.
16:41And that's why, for any of you, I will work so hard,
16:45because the opportunities that I am given
16:47are a responsibility, not just an opportunity.
16:50You can see that.
16:51We can see it.
16:51I mean, it exudes from you.
16:52We can see it.
16:53Love it.
16:53I've been trying so hard, because I really like you,
16:55to get into this, but every time you speak
16:58and every time that Fawn speaks,
16:59I realize how little I know,
17:02and the gap is too wide for me to get there,
17:05so for those reasons, I'm out.
17:06Thank you so much, and I admire you so much.
17:10I think that you have something special here,
17:13so I'm gonna make you an offer.
17:17But my offer's going to be sharky.
17:33Two sharks are out, but Fawn is interested
17:36in Caroline's low-calorie beer brand, Beer Girl.
17:39I will give you the $125,000,
17:43but I want 20% of the company.
17:49I...
17:52Can I tell you something, Fawn?
17:53Absolutely.
17:54You are one of my biggest inspirations,
17:56and the re... I'm gonna cry.
17:58Oh.
17:58And the reason why you are
18:01is because of how you live out your faith every day,
18:03and I want to work with you so badly.
18:06I have to make a counter, right?
18:10And so what I really need
18:11is funding for my purchase orders.
18:13Would you do $125,000,
18:16a $500,000 line of credit
18:19that I would pay interest on?
18:21And I'll do it for 20%.
18:27I'm good with the offer that I've given,
18:31but getting your POs financed
18:33is not a very difficult thing.
18:35You're self-distributing, correct?
18:36Yeah.
18:36As your back-end?
18:37I'm doing all the back-end and logistics.
18:39My husband is running that,
18:41and we're doing deliveries at 3, 4 in the morning,
18:44and we have our own delivery truck,
18:45and two part-time delivery drivers.
18:47Wow.
18:48That's how I started.
18:48You are a winner.
18:49How much you guys put in yourselves?
18:51$200,000.
18:52Oh, you're all in.
18:54The offer I have on the table
18:56is the only offer that I'm going to give.
18:57I don't think anybody else
18:57is gonna give you an offer,
18:58and I'll tell you why.
19:00It's difficult, this space,
19:01and you've got a lifeline here.
19:03It's impossible.
19:04She is the perfect partner.
19:05This is an impossible space.
19:06I mean, some deals are meant to be.
19:07This one is.
19:08I'm out.
19:11I am the one person
19:12who can make sure that your brand is seen
19:16in a space that is so crowded
19:19that you will never get out of Southern California.
19:23I feel this will be a surefire winner.
19:25I would love to be a part of the journey.
19:27If you would like to have me.
19:29On the same offer.
19:30And if she would like to have me.
19:30$125,000 for 20%.
19:32What do you think?
19:33I think with this particular offer,
19:35I can definitely go at it alone,
19:37and I don't need Lori, but I...
19:39You know what? I'm gonna let her go at it alone.
19:41She doesn't really need a partner.
19:43She's a powerhouse.
19:46If you have an offer,
19:47what do you want to do?
19:56Vaughn, it would literally...
19:57I would be so humbled to accept your offer.
20:01All right.
20:03Oh, you are gonna be a superstar in this industry.
20:08There are so few women in the beer industry.
20:12They are going to love you.
20:14They are going to love you.
20:15They are gonna love her.
20:16Thank you so much.
20:17Now it's off to the races.
20:22I'm really emotional.
20:27My grandmother...
20:28I'm just, like, thinking about what she went through
20:29to be able to let me stand here.
20:32Like, I'm just...
20:33I'm proud of myself for doing it
20:36and for not being afraid.
20:38And for doing it even when I am afraid.
20:40The beer companies are in so much trouble
20:43that they have a need
20:45for something that can stand out.
20:47And this can actually stand out.
20:49Yeah, beer girl.
20:50It's cool.
20:52In season 15, Coco and Mafia Cabezas
20:55made a deal with Daniel Lubitsky
20:56for their frozen avrepas company, Toast It.
20:59A brand of better-for-you Latin American food staples
21:02that are ready to eat in under 10 minutes.
21:04Let's see what they're up to now.
21:06The night after our Shark Tank episode aired,
21:09my first daughter was born.
21:10So you can imagine how crazy the time was.
21:14The demand in stores was so high
21:16that we couldn't keep up.
21:17So we went from one to two co-packers,
21:20and from producing 4,600 units per month to 24,000.
21:24We've nearly tripled our distribution.
21:26From 600 stores to over 1,500 stores
21:29were now available at Whole Foods, My Lamps, Palm Market,
21:32Keep Food, and many other amazing retailers.
21:35The year before Shark Tank, we had $200,000 in sales.
21:38It's been two years since closing our deal with Daniel,
21:41and we've made $2.3 million in sales.
21:44Our velocities have actually increased
21:46since we did the rebrand.
21:48Once we started working with Daniel,
21:50he mentioned that he loved our product,
21:52but he felt our brand could be much better.
21:54So we decided to rebrand to Kiosco.
21:56Daniel helped us from picking the name to the branding
21:59and to the messaging that we wanted to convey.
22:01We're connected to the name Kiosco
22:03because it's a place where we grew up eating when we were young.
22:06Kiosco is a space where the Hispanic community
22:09gathers to eat snacks,
22:10and Mafia and Coco chose Kiosco
22:12because they realized that the shared value of the product
22:15was Hispanic-paid goods,
22:18and Toasted was not conveying it,
22:19and they also wanted to go beyond products
22:21that were solely toasted.
22:22We're so excited to launch a completely new line of products
22:26focused on Tres Leches.
22:28Tres Leches is a traditional Latin dessert
22:30composed of a vanilla cake soaked in three milks
22:33and topped with whipped cream.
22:35Today, we've invited our friends, family,
22:37to join us in this celebration to launch our new products
22:41and have a taste for themselves.
22:42This product is literally part of who we are.
22:45They remind us of home, of our family, of our childhood,
22:47and we know many of you know that feeling too.
22:50When you think about it,
22:52it's so hard to immigrate from another country,
22:54come to a new culture,
22:56let alone give birth to a company,
22:58and Mafia and Coco demonstrate
23:00that the American dream is alive and well,
23:02and if you work hard enough,
23:03you can actually build something incredible.
23:05What I would say for entrepreneurs
23:07and for immigrants in the U.S.
23:09is you can bring your culture
23:10and be part of a new business.
23:12You can share it with people.
23:14Knock on doors.
23:15Apply to Shark Tank
23:16because we never thought we were going to get in,
23:18and we did.
23:19Ask people for help,
23:20and you can actually become a business
23:21you're very proud of.
23:51Hey, sharks.
23:52I'm Lauren Menard from San Francisco, California,
23:55and I'm here seeking $250,000
23:57in exchange for 5% of my company, Gov.
24:00Wow.
24:01So are anyone's ears ringing?
24:03I mean, I kind of hope so personally
24:05because that means that they're working, right?
24:07But that's what a live concert sounds like.
24:10Add on a snoring partner,
24:11a toddler that's screaming at 3 in the morning,
24:14or maybe you just live in a city that doesn't shut up.
24:17What's the usual solution for any of these scenarios?
24:21Earplugs, obviously,
24:22but here's the real noise pollution.
24:25The world produces 40 billion of these every single year,
24:31and nearly all of them are made out of polyurethane,
24:34which is a fossil fuel-based plastic.
24:37So they're single-use, toxic chemicals.
24:40It's like shoving oil into your ears, to be honest.
24:43And they take over 500 years to break down.
24:46So, what do you think the solution to this problem is?
24:50Well, how about...
24:53...mushrooms.
24:55What?
24:57So, Gov makes the world's first 100% bio-based earplugs
25:01that are crafted entirely out of mycelium foam,
25:04which, for those who don't know,
25:06that's the root structure of a mushroom.
25:07They are completely naturally sound dampening,
25:11extremely comfortable, hypoallergenic, and home compostable.
25:16So when you're done with them, they disappear forever,
25:19just as they should.
25:20So, whether you're at a music festival, on a job site,
25:24or you're hiding from a screaming toddler of yours,
25:27we got you.
25:28So, Sharks, who's ready to cut through the noise
25:31and plug into the future with Gov?
25:33How interesting.
25:34So, you simply place them into your ear canal,
25:37and you just push them in, and then that's it.
25:39When I put stuff in my ears, like earplugs,
25:41it's deeply uncomfortable.
25:43Yes.
25:44This is less so.
25:45This feels almost... enjoyable.
25:49I love that.
25:50That's very weird.
25:51That is weird.
25:53Okay, so how are these rated?
25:55So, a normal earplug ranges everywhere between 10 and 30 decibels,
26:00and ours is at 20, naturally.
26:02Now, I can still hear you.
26:03I can...
26:04Yes.
26:04Yeah, I can still hear you very, very well.
26:07Yes.
26:07I have a lot of experience with earplugs
26:09in that I have a snoring husband.
26:11Yes.
26:11So, I've been wearing them every night for almost 22 years.
26:13Okay.
26:14Wow.
26:14And if I had them on and you were talking,
26:16I wouldn't hear you.
26:17Mm-hmm.
26:18Right.
26:18But with these, I can hear you.
26:20Yes.
26:20But an earplug should really have strong efficacy.
26:25With normal earplugs, whether they're polyurethane foams,
26:28silicones, things like that,
26:29it actually knocks down the top frequencies,
26:33which is why music sounds bad.
26:35It's why, like, everything sounds muffled.
26:37But with our product, it's not full, full cancellation,
26:40but it's an improvement of sound.
26:43How did you wake up one day and look at a mushroom
26:46and say, I got it, earplugs?
26:50So, on top of my mom losing her hearing five or so years ago
26:54and watching her decline,
26:56I started thinking about protecting my own hearing,
26:59especially because my fiancé is in a hardcore band.
27:02Oh, my gosh.
27:03So, I am in loud spaces all the time.
27:05So, I was at a spin class.
27:07They handed me this jug of the polyurethane foam earplugs.
27:10There's something that happened in that moment
27:12where I was just like, oh, these are bad.
27:15But how mushrooms?
27:16We spent eight months looking for a material
27:18that could actually solve this problem.
27:21Our partners, they're called Ecovative.
27:23They're mycelium gurus.
27:25They contacted me and said,
27:27you're the first person we're letting know about this material.
27:30Try it.
27:31Okay.
27:31What have you sold?
27:32What are your sales?
27:33How much does it cost you to make it?
27:35We only launched about two months ago,
27:37but we've done 40K in sales organically,
27:39directly from our website.
27:41Okay.
27:41$40,000.
27:42$40,000 in sales.
27:43And you have a $5 million valuation.
27:46Let me get there.
27:47I'll get there.
27:48So, the reason why our valuation is so high,
27:50and this is actually half of the valuation
27:51that I'm raising venture capital at right now,
27:54is because we are ahead of schedule
27:57with a live entertainment company,
27:59one of the largest in the world,
28:01getting these into all of their venues.
28:03So, we will be the exclusive hearing protection on-site,
28:07and if we were to penetrate just 5% of the audience,
28:11we would be at $15 million in revenue per year.
28:1415?
28:14One-five.
28:15What are your cogs on this?
28:17So, cogs are great.
28:18Okay.
28:18It's a very high-margin business.
28:20Okay.
28:20Right now, we are at about under 10 cents per plug to make.
28:25What do you sell this pack for?
28:26There's four.
28:27So, that one, that's our B2B pack
28:29that you'll get at venues.
28:30It's an option there.
28:31That's $5.
28:31And your cost on this is how much?
28:34That's about a dollar.
28:35What do the ordinary foam ones cost,
28:37the ones that people use now?
28:38So, because they're made of a byproduct
28:40from the fossil fuel industry,
28:42they're, you know, pennies to produce.
28:44I have one issue that I want to point out to you.
28:46Before I started Kainat,
28:48I had a company called PeaceWorks,
28:49and it brought together Israelis, Palestinians,
28:52Jordanians, Egyptians, Turks,
28:53to work through business and make peace.
28:55And I was so enamored with my mission
28:58that all I talked about
29:00was how important it was to bring people
29:01together.
29:02And the minute that I pivoted
29:03and I started focusing on the products features,
29:06I started doing better.
29:08And then I had the idea for KIND
29:09by focusing on the benefits of KIND
29:11being delicious and nutritious
29:12rather than talking about
29:13how we wanted to foster kindness.
29:15And that made all the difference.
29:16In your case, you're very mission-oriented,
29:19but there's still a lot of work for you
29:21to develop that hero product.
29:23Yeah.
29:23And so, for those reasons, I'm out.
29:25Okay.
29:26I'm disappointed in that,
29:27but I respect that.
29:28I really applaud the mission.
29:31However, I think you're gonna struggle.
29:33This is one of those products,
29:35when they're at a concert,
29:36and it costs pennies versus dollars,
29:38they're gonna buy the pennies one.
29:40So I struggle with the concept.
29:44It's not for me.
29:45I'm out.
29:46I respect that,
29:47but I do want to address that note.
29:49People care a lot about what they put on their bodies
29:51and in their bodies.
29:53If it is comfortable and performs well,
29:56people will buy it.
29:57Okay, so I want to jump in.
29:59I think there's a big market you're missing
30:02that really wants no noise.
30:04They would like the sustainability and the mission,
30:07but the part that you have right now,
30:09I don't think is big enough.
30:10I think it's great that you're going on the path that you are,
30:13but the product's not for me.
30:15I'm sorry. I'm out.
30:16Okay, I respect that.
30:17I don't think you're worth $5 million.
30:19I don't want to get into a fight about it,
30:20because having been on Shark Tank 17 years,
30:24I've seen every movie twice now,
30:26and I hate the movies where there's already
30:28a huge market established
30:30with a really inexpensive option.
30:32I'm choking on the $5 million valuation.
30:36I mean, look, that often is the problem in the Shark Tank,
30:39the optimism you have versus the reality of the market,
30:42which will come and eat you alive later
30:44and you'll come back and say...
30:45I don't think that's going to happen respectfully,
30:47but thank you.
30:47Well, I hope it doesn't for you,
30:48but imagine how many people have stood where you are
30:50with that kind of optimism,
30:52and you should have it
30:53until the real world bites your ass.
30:55And that's coming to a theater near you very shortly.
30:58I really don't think so.
31:00Let me just get...
31:00So this B2B deal is not our only vertical.
31:04We're going retail as well, so sorry.
31:05Besides you will be the competition
31:07at a significant lower price.
31:08Look, I loved it.
31:09No chance in hell on investing.
31:11I'm out.
31:13Well, you still have one shark left.
31:16Listen, for me personally, I have used earplugs to eliminate noise for 22 years.
31:23Mm-hmm.
31:23I don't understand earplugs to make sound better.
31:28Hmm.
31:28I don't understand that, as a consumer, who that would be for.
31:32Yeah.
31:32So for that reason, unfortunately, I'm out.
31:38Okay.
31:38Thank you so much.
31:40Thank you, Lauren.
31:41Cheers.
31:42Cheers.
31:45One of the benefits of owning an earplug company
31:47is you get really good at tuning out the noise
31:49and tuning out, you know, unwanted things.
31:52And so, you know, Kevin was a tough critic,
31:54but, you know, I was able to pretty much tune him out
31:57and not let it bother me too much.
31:59Her mission is dictating her product.
32:01Exactly.
32:02As opposed to product pulling the mission.
32:04Yeah.
32:04She is going to get run over by a train.
32:07Well, isn't that cheerful?
32:09I know.
32:10Woo!
32:23Next up is an artistic way to express yourself.
32:36Hi, Sharks.
32:38My name is Susanna.
32:40I'm from New York City.
32:41And if you can tell, I'm an artist.
32:45One way I express my creativity is through the art on my nails.
32:50But getting your nails done can cost a lot of time
32:54and a lot of money.
32:55When you're in a pinch, you need to take your naked nails
32:58from zero to full glam in a minute.
33:01Press on nails are the way to go.
33:03But most press on nails just straight up boring, basic, and janky.
33:09That's why I created Never Have I Ever,
33:13an instant beauty brand that lets you slay anytime, anywhere.
33:19Our hero product lines of artist-licensed press-on nails are wearable art that you can collect,
33:25wear, and re-wear.
33:27We collaborate with influential, rising artists to create beautiful works of nail art,
33:33and monetize their art in a unique way.
33:38So, Sharks, never have I ever stood here in the tank asking you for $150,000 for 8% equity
33:48of my company.
33:50Sharks, I think I just nailed this pitch.
33:53Who's ready to nail this business with me?
33:57Good job.
33:59Well, that was great.
34:00Very good job.
34:01Sharks, in front of you, you each have your own custom sets of nails to try on for yourself.
34:07Are there stick-on nails in the market already?
34:10Yes.
34:11There are stick-on nails, but we are the first artist-licensed press-on nail brand.
34:16So, your advantage is not you're the first, you have the artistic design.
34:21It's a really cool idea.
34:22Can you walk me through the economics if I'm an artist?
34:24What does it look like for me?
34:26Every pair of nail that we sell, you get 5%.
34:29So, what do these sell for?
34:32So, each box sells between $18 to $20.
34:36And what's it cost you to make?
34:37$2 to $3.
34:39Tell us about you.
34:39Actually, I was born and raised in New York City.
34:44And I'm always that one odd Asian kid that doesn't know how to play any instrument and also bad at
34:52math.
34:56But I know how to draw.
34:57I love paintings.
34:59I love being creative.
35:00And I went to Parsons for full scholarship.
35:04Graduates for-
35:05Great design school.
35:06Wow.
35:07That's amazing.
35:07Yeah.
35:08Major in product design.
35:09Your $150,000 for 8% imputes at $1.875 million.
35:15What have been your sales and through which channels?
35:17Our lifetime sales goal has hit $900,000.
35:22Wow.
35:22How good.
35:23In how long?
35:24Our receivable, our receivable, our account receivables are $600,000.
35:28Wow.
35:29Waiting to come in.
35:30No, no, no.
35:31I, that is horrible news.
35:33That's not exciting.
35:35Wait.
35:35That's insane.
35:36If you have lifetime sales of $900,000 and receivables of $600,000.
35:40This is our year two and we already confirmed $1.6 million sales.
35:45$1.6 million.
35:47I'm so confused.
35:48How long have you been in business?
35:49This is year two.
35:50So-
35:51Got it.
35:51So last year, what were your sales?
35:54$400,000.
35:55And what will your sales be this year?
35:58We are projected $1.6 million.
36:00But what have you done that far?
36:01And so far year to date?
36:02Yes.
36:03What have you done so far?
36:04Year to date, in our business account, $900,000.
36:08And account receivable is nine.
36:10So-
36:10No, no.
36:11Susanna, let me explain something to you.
36:13You want your accounts receivable to be as low as possible.
36:17Accounts receivable is when you sell to the retailer and the retailer has yet to pay you.
36:23And if at any point you've delivered the product and you don't get paid, it can kill you.
36:27So AR-
36:28Well, we don't know what her AR is.
36:30Did you sell $600,000 in the last 30 years?
36:33Yes, yes, yes.
36:34I'm telling you.
36:35This category is a growing category.
36:37So, Susan, and so-
36:38It's projected more than $50 billion by 2030.
36:42You have no idea how crazy this thing is going.
36:46We just started.
36:47We focused a lot on wholesale because we got very lucky.
36:50We got picked up right away with this concept.
36:53By who?
36:54By Urban Outfitters, actually.
36:56So you're in Urban Outfitters every store?
36:59Every store.
37:00More than 200 stores.
37:01So you're in 200 Urban Outfitters.
37:03What other retailers are you in?
37:05We're in Paxson.
37:06Paxson.
37:07How many stores is that?
37:08200 stores.
37:09Listen, I really enjoyed the presentation, but for me it's not buttoned up enough.
37:14I just want to be able to give you $150,000.
37:16I wouldn't do it for 8%.
37:17I'm out.
37:19Susana, I could not get clarity to understand where your numbers are actually at.
37:26I apologize, but I'm out.
37:29Susana, I think you're incredible.
37:31You're an absolute genius, creative genius.
37:34It's not for me because I'm just not into nails, right?
37:39Unfortunately, I'm out.
37:41Um, you know, I love products that have a big audience, and unfortunately this just is too niche.
37:47I'm sorry. I'm out.
37:53Um, I want to give you an opportunity.
37:56Whoa.
37:57Wow.
37:57Didn't see that coming.
38:00Thank you, Robert.
38:01Here's what I can do for you.
38:03I have a social team that I've been working with for the last year.
38:07They're incredible.
38:09You are made for social.
38:12I think their retail will pull through.
38:13It's a bit of a flyer, but I need a bigger stake.
38:16I'll give you $150,000 for 25%.
38:22That's my offer.
38:23Whoa.
38:24That hurts.
38:36Four sharks are out.
38:38Susana has an offer on the table from Robert for her nail art company, Never Have I Ever.
38:43But he wants a much bigger stake than the 8% she came in offering.
38:47I'll give you $150,000 for 25%.
38:52That's my offer.
38:54Whoa.
38:58I would like to counter.
39:01What's your counter?
39:02$150,000 for 10%, plus the royalty of 50 cents per box until it capped at $150,000.
39:12I just heard royalty.
39:14Ooh.
39:17I'm thinking, I'll do the deal.
39:20I'll drop the equity down to 10%, but I want that 50 cents a box until I make three times
39:28on my $150,000.
39:29You've got two offers.
39:30Susana, I'll modify my offer.
39:32Do you want a counter for me, or do you want to do a deal with Kevin?
39:35Well, you have two offers.
39:36You have to decide.
39:38Do you want to hear back from Robert?
39:40Yes, I would like to hear back from Robert.
39:43$150,000 for 20%.
39:46So I'll come down from the 25.
39:48That's my offer.
39:49$150,000 for 20%.
39:50So that's twice the amount of equity you've got to give up.
39:52And if your business is going to be successful, you can afford giving me 50 cents, but royalty goes away
39:57after 3X.
39:58Wow.
39:59That's a tough, tough decision.
40:04You've got to make it.
40:05Here you are in the shark tag.
40:06Make the decision.
40:10$150,000.
40:1310%.
40:16And royalties, 2X.
40:19No.
40:21Susana, all due respect, I'm out.
40:26No, I...
40:26Look, you can't, like, I believe in you, but you come in here and make you an offer.
40:31You've got to make a decision.
40:33You're negotiating with Kevin.
40:34No, I made the decision, Robert.
40:36Actually, I go for you.
40:37No, I'm out.
40:37Because thank you so much for believing in me.
40:39No, no, no.
40:39I actually really...
40:41I...
40:42Susana, I can't do it.
40:43I'm sorry.
40:43I can't do it.
40:44You...
40:44I gave you a chance, with all due respect, to make a decision.
40:48I take...
40:48You deflected from me.
40:49You wanted to do a deal with Kevin.
40:51I'm okay with that.
40:52My feelings aren't hurt.
40:54I...
40:54I...
40:54I can't do it.
40:55I'm sorry.
40:56I wish you all the best.
40:57I'm out.
41:00Well...
41:01The sharks!
41:04You're in the tank.
41:06All roads lead back to Mr. Wonderful.
41:15Okay, I take the offer.
41:17Yeah, no kidding.
41:19Oh, my God.
41:20Thank you so much.
41:21Congratulations.
41:22Just great together.
41:25You got it.
41:26Thank you, Robert.
41:27It's a simple idea that's working.
41:29Take care.
41:29Thanks.
41:30I'm sure we couldn't do a deal.
41:32Good luck, Susana.
41:32I'm gonna put my nails on now.
41:35It was so hard.
41:37It was so hard.
41:39Oh, my God.
41:40These sharks.
41:42Robber's great.
41:43I really want to go for a robber.
41:45I don't know why I did.
41:47I...
41:48Yeah.
41:48I don't know if it's the right decision.
41:50But I'm...
41:51I made it.
41:52Because of your chirping, she lost a good deal.
41:56She lost a really good deal.
41:57Let's be honest with each other.
41:59The greed.
42:01Listen.
42:01No, no.
42:02She tried to take his deal.
42:04Thank goodness I was here.
42:05The lesson here is there's a time to sell, and there's a time to close.
42:09Yeah.
42:10And she had an opportunity to close.
42:12She had it, and she should have closed.
42:12Robert.
42:13She should have closed.
42:13It's sour grapes for you.
42:14Wow.
42:15It was Mr. Wonderful to the rescue!
42:18Oh!
42:18That's it.
42:49I'm so hungry.
42:50He could have won the risk for you.
42:50He could have come on the risk of his poison.
42:50And he's totally having never seen any other stuff.
42:50I don't think so.
42:50You're stung some money.
42:51You're still not getting away from him.
42:52Who's going to die?
42:53Who's going to die?
42:54Who's going to die?
42:55Who's going to die?
42:57No, no, no.
43:00These sharks have children.
43:01I'm just going to die.
43:02And they're on the same way.
43:03It's going to be a big light.
43:03This is going to be a STUD.
Comments