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00:00Tonight, things heat up in the tank.
00:03What's happening?
00:04I like it. I'm staying.
00:06Oh, David, don't do it in front of the sharks.
00:08That is borderline disrespectful.
00:10Can I share with you?
00:11This is not... Hold on.
00:11We're gonna be angry.
00:12I'm a little worried you're gonna instantaneously combust.
00:16I'll give you the $1 million for 20%.
00:18Wow.
00:18And a rare shark alliance is about to go up in smoke.
00:22I want 15%.
00:2315% divided?
00:24Yeah, split 7.5 each.
00:25I would rather have 20%.
00:26Let me do the numbers. I'll handle the numbers.
00:27You're so arrogant, you don't listen.
00:29It all starts now.
00:31Oh, boy.
00:39First into the tank is an outside-the-box solution
00:43for saving homes from devastating wildfires.
00:52Hi, sharks.
00:53My name's Mikey Pearson, former mayor of Malibu, California.
00:57And I'm Holden Forrest,
00:59founder and CEO of Hypertech Homes.
01:01We are seeking $1 million
01:02in exchange for 8% equity ownership in our company.
01:07Sharks in California,
01:09thousands of homes burned down every year due to wildfires.
01:12I was mayor dealing with the devastating Woolsey Fire,
01:16and it burned down over 14,000 homes in my local area.
01:20And just this year, over 16,000 homes were completely destroyed in Southern California alone.
01:27I've seen firsthand the devastation these wildfires can do.
01:30Even with professional firefighters and other preventative measures,
01:34wildfires are inevitable, and they're only getting worse.
01:37But what if I told you that we can make your house disappear,
01:42literally disappear, so that it can't be harmed ever again?
01:46I know, this sounds like a magic trick.
01:49Sounds crazy.
01:50Talk to me.
01:51But it's not.
01:52The trick here and the magic is really in our breakthrough engineering.
01:57Introducing Hypertech, the world's first ever truly 100% wildfire-proof home.
02:06Hypertech's revolutionary technology automatically lowers entire structures underground
02:10when wildfire threats arise.
02:12Wow.
02:13Brilliant.
02:14Wow.
02:14Before hydraulically lowering underground,
02:16the house's utility lines disconnect safely and compliantly via our patented mechanisms.
02:23A fire-retardant system sprays the immediate area surrounding the home as it descends,
02:28while a protective ceiling cover auto-deploys to safely seal the vault's enclosure.
02:33After the danger passes, Hypertech resurfaces the home to ground level.
02:38This entire process takes 15 minutes or less using an app on any smartphone.
02:43Our exclusive technology makes Hypertech both practical and affordable in wildfires and in tornadoes also.
02:51Wow.
02:51We're ready to save homes and lives, transform global construction,
02:55and to help solve the disastrous insurance situation in high-risk areas.
03:00So, Sharks, who's ready to build a future where homes protect themselves?
03:06Wow.
03:06Very interesting.
03:07So, the fire starts, I'm in the home, I get out like a remote and say,
03:11down, seals me up, and that's where they find me later.
03:15Nobody rides our home underground.
03:17Nobody.
03:18They don't have to, guys.
03:19Look at it going.
03:20Look at it going.
03:21Oh, my goodness.
03:21The way that we save lives is not because people ride our homes underground,
03:25but the statistics show that many fatalities occur because people linger too long at their home trying to save it.
03:32They're hosing the roof off, they're packing the SUV with their possessions that are so priceless, right?
03:37And they get tragically caught behind the fire line.
03:41With Hypertech, you can be at your office in downtown L.A. and find out that your Pacific Palisades home
03:46is under threat and simply put it underground.
03:49Safe and sound underground is one of our trademarks.
03:51We've been at this for five and a half years.
03:53Really?
03:53I conceived of this in 2019.
03:54Have you done one home yet?
03:56No.
03:56That's it right there.
03:59Well, yes and no.
04:00And look how safe it is.
04:01But let me continue.
04:03We spent all of this time to get our ducks in a row.
04:07We had planned to do a Series A in July to go out for $6 million to build our full
04:12-scale prototype hybrid tech home as proof of concept.
04:16Because of these fires that just happened in January, it caught all of us by surprise.
04:19We're supposed to be out of the wildfire season.
04:21So we just got thrown under the spotlight.
04:23We've never done a press release.
04:24We've done no marketing.
04:25We weren't trying to get customers.
04:27Do you have any pre-orders without all of these fires burning stuff down?
04:30We're getting deluged right now because what happened was in January, people found out about us without us even trying.
04:36So we were on national TV, the cover story of newspapers.
04:39We've got all the usual media.
04:41So what's the backlog now?
04:41What's the pre-order situation?
04:42Well, we're not taking pre-orders yet because they're only like a promise I can't keep.
04:46Well, why don't we look at this?
04:47Because you're not ready.
04:48I mean, basically what you're saying is you have all this interest, tons of interest.
04:51You know you'll have the sales.
04:53No question.
04:54But you're not ready.
04:55What a surprise for you.
04:55We want to build our prototype home to prove our concept.
04:58Once we do that, everything happens.
05:00You can start with my house because I lost my house on the Pacific Palisade.
05:04We know.
05:05Sorry for your loss.
05:07Sorry for your loss.
05:08Barbara, I was actually at your property less than a week ago.
05:10What is the cost per foot to build a home?
05:12$1,000 a square foot.
05:14Wow.
05:14The average homes right now in the Palisades are charging $1,000 a square foot.
05:18I was going to say, I don't know that that's that out of line.
05:20Do you know it's not out of line because they're building fire-resilient homes now and they're charging a markup
05:24for it?
05:24How much money have you raised?
05:26We've raised just shy of $500,000.
05:29The lion's share of it coming from yours truly.
05:31I sold my property myself.
05:33I am completely all in, my friends.
05:35You're all in.
05:35We've never made a pitch to a PropTech VC yet.
05:38We were thrown into the spotlight because of the fires that unfortunately claimed your home and everybody else's.
05:43What if I already have an existing home?
05:46Can you put that underneath the home that exists?
05:49Same question I was going to ask.
05:49Or is it only for new builds?
05:51Right now, we cannot because we're going for lowest hanging fruit for our business model and plan.
05:57Will we be able to in the future?
05:58Yes, of course.
05:59We can just simply lift the home up and then build our cavity underneath.
06:02This is really a basic basement, guys.
06:04This isn't like a time machine we're building here.
06:06And remember, everything is patented.
06:08How many?
06:09Three.
06:10So we've got every element covered.
06:12The hydraulics that we have masterminded, the way that the ceiling cover auto-deploys and what it's made out of,
06:17and the way the utilities disconnect.
06:18I wish this was around when I was growing up in the hood because when that bank came after my
06:22house,
06:22I would have tucked my house away for a month or so.
06:25What I don't understand is how you think in the markets where you should put this, which is California,
06:30how would you ever get a permit to do this?
06:32You're talking to the mayor.
06:33Yeah, I was planning commissioner for seven years before I was the mayor.
06:36And so I brought this to my planners.
06:39And basically, it's a basement.
06:41It's a basement with hydraulics.
06:43It's not as complicated as it sounds.
06:44Now, hold on.
06:45Are you a hydraulics company or are you a home builder with hydraulics?
06:48I don't want to be either.
06:49What we want to be is a licensing, Mr. Wonderful, and absolutely licensing our technology.
06:54To other builders.
06:55Yes, exactly.
06:55Okay, so you want to supply the technology to builders.
06:57Right.
06:58Here's our patents.
06:59Here's our technology.
07:00And what we want to do, we need to do, is be a fabrication plant to support the sales.
07:05The hydraulics, the ceiling cover, and the utilities disconnect has to come from HyberTech on a fabrication plant, which we'll
07:11put together.
07:11That's a much better business model.
07:12We have a PhD in thermal engineering.
07:14We have 10 engineers.
07:15We have 10 engineers that are all specialists.
07:17You know, I've never seen a person outspeak a politician in my entire life.
07:23Well, he knows I was there.
07:24I fought the Woolsey fire.
07:25I fought the Palisades fire.
07:27I've seen what happens in those fires.
07:29And, you know, even resilient homes, they burn down.
07:33They get so hot.
07:33They ignite from the inside.
07:36How much money do you need, and when will you be able to start delivering this license to builders so
07:41you can monetize it?
07:42Okay, great.
07:43We're asking a million from you, and you're going to say, well, a million dollars doesn't even move the needle.
07:46It's not enough to build one of our homes.
07:48We need $3.8 million to build an actual prototype home.
07:52Then when we start economies of scale, it can bring the price down.
07:54Our target is $400 a square foot.
07:56But initially, it will cost...
07:58It's going to be $1,000 a square foot, and that makes us at least somewhat profitable.
08:02It also is very expensive to sell.
08:04It is at the beginning.
08:05Yeah, but your beginning is your most important part.
08:07Getting the first few users in is the most important part.
08:10Getting the publicity on the good user and how happy they are is the important part.
08:14You've got to do that first, so you've got to contend with that.
08:17Most startups, one of their major challenges is to get eyes on them.
08:22This is not the problem here.
08:23I've got the New York Times, the Chronicle, CNN, everybody...
08:26You can see there's a lot of skepticism from people saying, well, how do I know it works?
08:30You've just got to build one prototype.
08:32Listen, I'm a little worried you're going to instantaneously combust.
08:36I want you to...
08:37Like, slow down a little bit, because you are definitely the guy that is the disappearing house guy.
08:43The huge roadblock here is Barbara detailed, I think, very eloquently.
08:47I have an offer for you.
08:48Oh, she has an offer.
08:50Oh!
08:50She has an offer.
08:51Let's hear it.
08:52Oh!
08:54I'll give you the $1 million for 20%, under the condition that the first house that's built is my own
09:00house.
09:02Whoa!
09:02Wow!
09:03Woo!
09:03Whoa!
09:04Whoa!
09:15All sharks are still in, and Barbara has an offer on the table for Holden and Mikey's home hydraulics technology
09:22company, HyberTech.
09:24But it comes with a big caveat.
09:26I'll give you the $1 million for 20%, under the condition that the first house that's built is my own
09:32house.
09:33Whoa!
09:34Wow!
09:34Woo!
09:35Whoa!
09:35On the Pacific Palisades.
09:37Wow.
09:37That would be amazing.
09:38That's a great offer, huh?
09:39Well, it's 8% to 20%.
09:4220%.
09:43I'll tell you why it's worth the 20%.
09:45Because I'm the queen of real estate.
09:47I can get media like you.
09:48Obviously, you're getting media, you know.
09:50But I'm going to give you credibility in the media.
09:53That's super true.
09:54Okay.
09:55If you can come down to...
09:57I can't.
09:58Oh, 20%.
09:59That's...
10:00That's...
10:02I'd go in on Barbara.
10:0350-50, if we can call it our loveness.
10:05I'm not living with you.
10:09But we have a licensing play here that's off the charts, guys.
10:13Let's focus for a second.
10:14By the way, we do have this offer.
10:16Do you have a counter or anything?
10:18Give her a counter.
10:20Barbara, I would say 12%.
10:21I'll do this deal.
10:22I will do this deal.
10:23I really appreciate that, but I'm afraid not.
10:25No?
10:26No.
10:26Is it only 20, Barbara?
10:27I'm giving too much to the deal.
10:29I'm giving you credibility.
10:30Do you know what that's worth?
10:31Yeah.
10:31I'm giving you a place to build it, to demonstrate it, to have people come and touch it and believe
10:36it.
10:37Do you know what that's worth?
10:38I mean, it's not crazy, but it's so much.
10:39I've got five and a half years, no paychecks.
10:41All right, so listen, listen.
10:42Here's where I stand with it.
10:43I think that what you have could change the world.
10:45It will.
10:46But I do think it doesn't get any better than a person who, unfortunately, lost her possession there.
10:52I know.
10:52Is willing to rebuild and show you proof of concept, give you money, and be the face of the brand.
10:58This is the perfect person.
10:59I'm out.
11:02Well, look, I was interested in coming in with Barbara for the half-ownership and the love nest,
11:07but she doesn't want anything to do with me, so I'm out.
11:09Okay.
11:10And I'll tell you where I'm coming from.
11:11Um, there's natural disasters, and they're on the rise like crazy, but I wish you were
11:16a little bit further ahead, and I wish you good luck, but for that reason, I'm out.
11:22Guys, for me, I think I'm more so interested in being a customer.
11:27I'm out, but I really think you should really focus on getting a deal done with this wonderful
11:30shark here.
11:31Well, first of all, Barbara, I cannot thank you enough.
11:3320% was never anywhere close to where I thought I was going to go, especially with an $18 million
11:38valuation on the table.
11:39But I'll tell you what, I'm a broker in two states.
11:42My mom's a broker.
11:43We're all real estate people.
11:44You seem like a broker.
11:45You seem like a hustler.
11:46Yeah.
11:47I respect you so much.
11:49This is crazy.
11:50The good news is I don't have to ask anybody.
11:52I own 89% of my company, so if I want to do something crazy like this, and you and
11:57I
11:57are partners, and I know how tough you work when you believe in something, I'm taking the
12:01deal.
12:01Let's go.
12:02There we go.
12:03I'm taking that deal.
12:04There you go.
12:04All right.
12:05I am so excited for this.
12:06Barbara, I respect you so much.
12:08I respect you so much.
12:09I respect you for being an interviewer.
12:10Great job, guys.
12:11This is exciting.
12:12Really excited.
12:13Bye, guys.
12:15I wouldn't know how we were going to be received.
12:17Maybe I thought we were lunatics, but I think they get it.
12:20Woo!
12:21We've got Barbara.
12:23Wow.
12:23Great deal, Barb.
12:24God sent them in.
12:26It's amazing.
12:27Barbara's the most incredible partner that we'd ever want in real estate because she's got
12:31it all.
12:32She's been there.
12:33She's done that.
12:34She's got a reputation for being so creative and easy to work with.
12:36She's got the capital and the connections.
12:38Barbara's the best.
12:39Woo!
12:41In season 16, Matt Hall made a deal with Rashawn Williams for his custom sports mouthguard
12:46company, TrueFit.
12:47A sleek, slim profile cut so you can breathe and speak as clearly as I'm talking to you
12:52now.
12:52Let's see what he's up to now.
12:54I went in the tank because trying to change the way that things are traditionally done,
12:59take technology, they take know-how, they take wisdom.
13:01And so I was looking for a shark that could provide that kind of support to help get to
13:05where we're trying to go.
13:06Matt came into the tank with a product that some sharks thought were easily copied, were
13:10readily available.
13:11And I saw something different.
13:12I saw a brand and I saw an entrepreneur and I saw an opportunity.
13:15I'm in the sports industry.
13:16I know tons of athletes and I was tired of seeing them walk around with these bulky mouthpieces,
13:20can't talk.
13:21What most people don't know is half of them don't even wear mouthpieces because they like
13:24to talk on the field.
13:25TrueFit solves that problem.
13:27Since Shark Tank, we've exploded in sports.
13:30We are now serving 45 NCAA and NHL programs, the WWE and 18 NFL programs, even becoming the
13:38proud partner of the LA Rams.
13:39We've recently received investment from the Professional Athletic Training Society, who
13:43provide custom fit sports mouthguards of the NFL and the NHL.
13:47This deal positions TrueFit to provide our guards to 90% of the players in those leagues over
13:53the next three years.
13:54I love athletes stamping you, but you got the dentist stamping you now.
13:57This is going to help you scale without spending a bunch of money on Instagram.
14:00We've just partnered with one of the largest dental labs in the United States.
14:04This partnership allows us to provide to 14,000 dentists nationwide, allowing customers to
14:09be scanned for TrueFit sports mouthguards, nightguards, retainers, and whitening trays directly
14:14from their dentist.
14:14When I pitched the Sharks, we had almost $2 million in sales in three years.
14:19It's been one year since I've closed my deal with Rashawn and we've done $3 million in
14:23sales, totaling 5.4 million lifetime sales.
14:28We're here at the Brazilian Jiu-Jitsu Championship in Atlanta.
14:31Jiu-Jitsu is one of the fastest growing sports in the country.
14:34I've been walking around here and half of these guys don't have mouthpieces.
14:37I can't think of a better market for this and these guys are begging us for it.
14:40In fact, I'm going to buy everyone in here a mouthpiece on you.
14:43How about that?
14:45I like rockets and I sell rocket fuel and when I saw Matt in the tank pitching how me plus
14:50him could take this thing to the moon, that's when I invested.
14:53So we're super proud of Matt.
14:54We're super proud of TrueFit and you guys should be on the lookout because this one is definitely
14:58a rocket ship.
15:11Next up is a product designed to leave a lasting impression.
15:23Sharks, allow me to paint a picture for you, right?
15:27So you walk into a room and suddenly everybody starts sniffing the air like, what's that smell?
15:34One lady clutches her chest.
15:36The other looks at a man and says, you never smell that good.
15:43But you, you use the body butter cologne.
15:47My name is Daryl Spencer.
15:48I'm the founder of Crown Skin, the first ever body care brand that has men out here smelling
15:54so damn good that it's borderline disrespectful.
15:57Now look, this is not your grandma's cocoa butter.
16:00Our products are made with moisturizing ingredients and scent so elite.
16:06That they don't just moisturize, they magnetize.
16:11What's happening?
16:12Since launching, we've created a cult following online and we've created something that's more
16:16than just about skincare.
16:18It's an experience.
16:19But sharks, don't just take my word for it.
16:23Let's show the product in action.
16:25Oh my God.
16:27This really smells good.
16:31Come on, bro.
16:32Now this is powerful.
16:35This smells sensual.
16:36Okay.
16:38Who gets this away from me?
16:44Sharks, I'm here asking for $500,000 for 5% equity in my company.
16:49Oh, man.
16:50Wow.
16:50To make more people stop in their tracks and say, hold up.
16:54What's that smell?
16:56Okay.
16:57Come on over here, big boy.
16:58I can smell you over here.
16:59Yes.
16:59I can smell it from over here.
17:01So you guys are receiving our body butter colognes and also our body oil colognes.
17:05Oh, yeah, that's good.
17:05A giant pasta.
17:06And you guys can smell.
17:07You get a feel for what we produce and what we create.
17:10Now, is there just two scents here?
17:12We have five different fragrances.
17:14Come in a little closer, right here.
17:15Okay.
17:16Come on, Barbara.
17:17Right here.
17:17Right here.
17:18No, please.
17:19Have a seat this morning.
17:20I think he needs something on his arm, Barbara.
17:22Yeah.
17:26Oh, I like it.
17:27I'm staying.
17:29I'll get my own, man.
17:30Yo, tell your man.
17:32I'm feeling no way, man.
17:33Tell your man to put his shirt back on.
17:34I'm good.
17:35I am.
17:36I ain't intimidated.
17:39Appreciate you, John.
17:40I like this one the most.
17:41Which one is that one, Lori?
17:42This one is Prince.
17:44Prince.
17:45Yes.
17:45Wow.
17:46This one's good.
17:46Okay, so this smells amazing.
17:48So this is cocoa butter, but it smells like cologne.
17:51Yes.
17:52So imagine rubbing over your body your favorite cologne in the world, right?
17:55And it's a moisturizer.
17:57What is the contents of this?
17:58Oh, we're clean.
17:59We're all naturally derived.
18:00There's no harsh chemicals inside of you.
18:02So that's my co-shirt.
18:03Yes.
18:03So we have shea butter, we have sunflower wax, we have jojoba oil, mango butter.
18:08So now I get it.
18:08This does two things at the same time.
18:10Two in one.
18:11Daryl, do you know who the competition is?
18:12They sell the oils in the hood, the little Nubian oils, and we used to rub those.
18:16Yeah, Blue Nile and stuff like that.
18:17We haven't told you.
18:18I'm from Chicago.
18:19I'm from Chicago.
18:20Yeah, so High Park, you go.
18:21On 87th Street, yeah, they would sell the little oils.
18:24Does it smell like High Park?
18:25You go to High Park now, so they have to do the Perkins or the Rolls on.
18:26Absolutely, I know.
18:27Daryl, tell us about yourself.
18:29I'm born and raised in Chicago.
18:30Came from the most hardworking, driven parents that you could ever think of.
18:36My father is actually a retired commander for the CPD in Chicago for the police department.
18:42My dad is like, that's my hero.
18:44I saw him work day in and day out my entire life.
18:48And then my mother, she's my hero as well.
18:50But I think they're both just a true testament of not ever allowing your circumstances, right, to lead your path.
18:58So in high school, I really worked my hardest to get a scholarship for college.
19:02I didn't want to have to take out loans and worry about finances because they'd done so much for me
19:08all my life.
19:09So I left college.
19:10I started out working at Meta, and I went to Google, LinkedIn, and Pinterest.
19:15Wow, that's a lot.
19:16What was your role there?
19:17Account manager.
19:18I was in media sales.
19:19Got it.
19:20So my role there was to consult with some of the biggest companies to help them drive revenue across paid
19:26media.
19:26And then I realized, I'm like, I'm gaining some really tangible skill sets that I can literally utilize.
19:33Now we're about to get to that valuation.
19:35Yes, that I can literally utilize for myself personally.
19:38So that's when I took the leap.
19:40I actually launched this company in March of 2024.
19:44Oh, that's getting scary now.
19:45You got that valuation, and you launched it in March?
19:48Well, we don't know his sales, Damon.
19:50Yeah.
19:50Do you see this movie coming?
19:52It's going to be either a surprise or we're going to be angry.
19:55So, Daryl, you asked for $500,000 for 5% imputes a $10 million valuation.
20:00Drum roll, please.
20:01I feel badly for you at this moment.
20:03Tell us about sales.
20:03Yes, so we did $2 million.
20:06Whoa.
20:07Last month.
20:08What?
20:08Whoa.
20:09What?
20:10What?
20:10Yes.
20:11What?
20:11Last month alone, we did $2 million.
20:14Oh, my God.
20:15What did you do all of 24?
20:17So in all of 2024, we did $3.8 million.
20:21I said it was coming.
20:23So he said he did $3.8 million in 2024.
20:26Year-to-date, where are you right now?
20:28Year-to-date, we are at $7.5 million.
20:30Oh, my goodness.
20:30So in about since March in 2024, for about a year and four months, we did a total of $10
20:36million plus in sales.
20:37And are you profitable or no?
20:38We're very profitable, yes.
20:39Is it all direct-to-consumer or are you going through retail?
20:42Strictly D2C right now.
20:43We're only direct-to-consumer.
20:44Are you generating your own social media to acquire customers?
20:47Yes.
20:48Yep.
20:48So we actually have a cult following online.
20:51We're the number two men's personal care brand in all of TikTok's shop.
20:54And how much have you raised and who are your investors?
20:56We have raised $0.
20:59Oh, wow.
20:59We have completely bootstrapped this company from day one.
21:02When you say we, is it just you?
21:03Are you the royal we?
21:05It is.
21:05Yes, it's me.
21:06And I say we because...
21:07Well, you're one impressive dude.
21:08I say we a lot.
21:09He's from Chicago.
21:10Come on.
21:11What do you guys expect?
21:12I have to ask you, what does it cost you to make this?
21:15And what do you sell it for?
21:17Absolutely.
21:18So land it, $5.
21:19And then we retail it for $36.99.
21:22What are you going to do this year?
21:24$14 to $15 million.
21:25And what do you think you're going to make on that?
21:27Yes.
21:27What are you going to make?
21:28Here today, we're currently at $350,000 in net income.
21:31Yeah.
21:31So profit.
21:32So we're expected to do about 5x of that.
21:35In this market, the margins are so high.
21:38Profits generally are as high as 20%.
21:41So you're at 4.6.
21:43I think you should be making more than 4.6% on the $14 million this year.
21:47Shouldn't you?
21:48Well, I'll tell you.
21:49Some of our biggest overhead will be our fulfillment fees, right?
21:51So we're working with 3PL.
21:53The fulfillment fees, they're pretty high.
21:56So they store, and then they pick and pack per order, right?
21:59Absolutely.
22:00What do they charge you for that?
22:02About closer to $2.
22:03And then we've discussed with others, right?
22:06And which is also why we're transitioning as well from our 3PLs to bring down that overall cost as well.
22:11Daryl, very impressed with your presentation.
22:13Very good.
22:14Valuation's a little rich.
22:15I think you're going to make around $500,000 this year, kind of keeping it at, you know, the 4
22:20.65% profit margin.
22:22But you're asking for a 20 multiple on that.
22:27That's rich.
22:28But what's freaking me out is you're going to have to ship 300,000 units this year to hit that
22:33$14 million.
22:34$500,000, half a mil.
22:36Getting that capital back is only available on an exit unless you're going to take a royalty.
22:40If you just want to put in $250,000, but I need a lot more stock, like 20% on
22:45it.
22:45But I want a royalty.
22:47Oh, that's great.
22:47I'll go for the ride.
22:48See, what I would do, let me tell you what I'm thinking.
22:51Barbara may come in with me.
22:52If we do $500,000 together, I want 15% split between us on stock.
22:58That reflects a real value.
23:0015% divided?
23:01Yeah, it's at least 7.5 each.
23:03I would rather have 20%.
23:03No, 7.5 each.
23:04Let me do the numbers.
23:05I'll handle the numbers.
23:06No, we'll handle the numbers, my dear.
23:08It's my money.
23:09Write these down.
23:10Don't flatter yourself.
23:11Write these down.
23:11Okay, so let's do it again.
23:14$500,000.
23:15Barbara and I split it.
23:16We get 15% equity.
23:18You get 20%.
23:18You want 20?
23:2020%?
23:20You're not listening.
23:21You're so arrogant, you don't listen.
23:23Okay, I'm going with 20%.
23:25All right.
23:26And a royalty of $2 a unit until we get our capital back.
23:31And then it drops down to $0.25 in perpetuity.
23:39Darryl, you ready to do a deal, man?
23:41Absolutely.
23:42I got the deal for you, but I'm not going to negotiate it.
23:56All sharks are still in.
23:58Darryl has an offer on the table from Barbara and Kevin for his scented body butter company,
24:03Crown Skin.
24:04But Rashaun is also interested.
24:06Darryl, you ready to do a deal, man?
24:09Absolutely.
24:09I got the deal for you, but I'm not going to negotiate it.
24:13I'm just going to give you this offer.
24:15I already know it's a good offer, so I'm just going to wait for you to say yes.
24:18Here's my offer for you.
24:19You're from the same place I'm from.
24:21Your story is very similar to mine.
24:23I'm from the south side of Chicago.
24:24I went to Hyde Park High School.
24:25What's the offer?
24:27I'm going to tell you, but I'm going to tell you why this is personal for me and why I
24:30could pay better than you.
24:31My father was a drug addict.
24:32My mom was on welfare.
24:33But I went back to Chicago, started a nonprofit to teach financial literacy and worked at
24:38Goldman Sachs downtown, worked at Wachovia downtown, and I love your story and I connect
24:43to you.
24:44Here's what I want to do for you.
24:45I will give you your $500,000 and I only want 10%.
24:50I do need $1 royalty until I get two times my money back, which should be at the end
24:55of next year based on your sales projections.
24:58And in return, what I will do for you already has six names that I want to introduce you to.
25:03And of course me, I'll help you with influencers and financing and any additional rounds you
25:08need to raise.
25:09And I withdraw my offer and I'm going to kill you if you don't say yes immediately.
25:12Wait a sec.
25:13I just want to say I went to Bartonfield High School in Champaign-Urbana, close to Chicago.
25:19Well, that changes everything.
25:22Rashawn, you got a deal, brother.
25:24Let's go.
25:25This is so happy.
25:28Let's go, my man.
25:29Congratulations.
25:30I'm excited, man.
25:31I appreciate you.
25:31You did a great job.
25:32I'm so excited.
25:33Yeah, your growth is, it speaks for itself.
25:35You got me out here smelling good now.
25:37All right, thank you so much, man.
25:38Have a good one.
25:39Thanks, guys.
25:39I appreciate you.
25:42It just feels like a dream.
25:43You know, I feel like I'm in a dream and I haven't woken up yet.
25:46But I'm most excited about just really being a beacon of hope and beacon of life for other
25:50black men to see that things that you probably never thought or envisioned that you can do,
25:55you can absolutely do it because I'm a living witness to it.
25:57But you know something, Rashawn Grasshopper, you're learning on the royalties.
26:02Yeah.
26:13Next into the tank is an entrepreneur who believes food is a matter of life and death.
26:24Hi, Sharks.
26:25My name is Dina Mitchell and I am the founder of Power Soul Cafe.
26:29I am seeking $750,000 for 5% equity in my company.
26:33Whoa.
26:34Wow.
26:35Sharks, a gluten-free lifestyle is a trend for people who want to eat healthier.
26:40But for others, it's a matter of life and death.
26:42And for people with celiac disease, eating just a trace of gluten can cause severe consequences
26:47to their health.
26:48And we all know how dangerous nut allergies can be.
26:51Going out to dine means asking a lot of questions.
26:54And in fear that that one bite might cause you to get sick.
26:58Sharks, it's wrong that more restaurants don't take the extra step to protect people.
27:05That is why I've created Power Soul Cafe.
27:07Power Soul Cafe is 100% to go.
27:11Drive-through, 24 hours, and pick up lockers.
27:14We provide a safe place for people with food allergies, disabilities, and celiac disease
27:19to let their guard down and eat anything off of our menu without worrying about being sick
27:24or going to the hospital.
27:27Sharks, I call it fearless dining.
27:30People can filter my entire menu based off their allergies or avoidances.
27:34We have many different options.
27:36Let's select oats, peanuts, and strawberries.
27:41Show me my results.
27:42There is everything safe that they don't have to worry about it.
27:45They don't have to read the packages.
27:48Sharks, join me in protecting people with food allergies.
27:51With powerful, soulful...
27:57And that's all I have.
27:59I'm so sorry.
28:01Great job.
28:02As you can tell, this means the world to me.
28:04Yes, of course.
28:06Everything that you have is certified gluten-free.
28:08You have a gluten-free pizza there.
28:10I have a barbecue chicken.
28:12Yes, that's made on a wheat-free crust.
28:15You have a keto pizza.
28:16That's very good.
28:17Very good.
28:17My pizzas are made with ingredients imported from Italy, grown without pesticides.
28:23This is good.
28:23So, Dina, the gluten-free gorilla in the room is this valuation.
28:28750,000 or 5% and it's a $14 million value.
28:33Even worse.
28:33$15 million.
28:34Even worse.
28:35Sorry, it's even worse.
28:36And now today went to $30 million because we just raised our price.
28:41Okay, but hang on.
28:42What?
28:42Yes.
28:42Wait a minute.
28:43To you, it's the same.
28:45To you, it's the same.
28:46But I just closed out my fourth PPM and now we're offering $30.
28:50Wow.
28:50Ooh.
28:53I opened three locations and our food manufacturer in four months.
28:57This isn't just a restaurant brand.
28:59What you're looking at...
29:00It's adorable.
29:00The investment is, it looks like a franchise, but it's not.
29:04Whereas my previous brand, which I helped to build to over 1,500 locations that sold
29:09last year for $2 billion.
29:11Whoa.
29:11What was the name of that brand?
29:13What was that?
29:13Tropical Smoothie Cafe.
29:15Oh, wow.
29:15You were part of the startup of Tropical?
29:17Yes and no.
29:18I bought the rights for Nevada and parts of Southern California.
29:21I brought it to the West Coast, but all the reasons you would buy into a franchise did
29:26not exist because it was brand new.
29:28So I was on my own.
29:29So I opened our very first location, opened March 1st of last year.
29:34The second one, March 22nd.
29:35The third one, it wasn't fully up until July 28th.
29:38Corporately owned.
29:39We own them all.
29:40I got it.
29:40So what's the revenue?
29:41You own all of them.
29:42I created a million dollar store in seven months.
29:45So that's a million annually?
29:47It will do now.
29:47Yes.
29:48When you say it will do now, what has it done?
29:50It'll be 1.4.
29:52So wait a minute.
29:53I'm very confused.
29:55The valuations actually, I don't even understand it.
29:58Because it's based off projections.
29:59It's based off of what I know the company would be worth.
30:02All of my investors have invested in what they think that I can do.
30:07Can we give you projection money too?
30:10No.
30:11You want real money today.
30:12We want real numbers today.
30:14Why do we want more money?
30:15Because we need to open more stores.
30:17Because it doesn't just need to be in Las Vegas.
30:19I know, but you got to understand.
30:20We're just talking about reality, right?
30:21Yeah.
30:21So let me explain the valuation.
30:23This comes from my 15 years experience building a similar brand.
30:27Yeah.
30:28That brand who just sold last year for $2 billion.
30:31And my experience is going to be losing money on 9 out of 10 deals.
30:34So I'm going to bring that experience to you as well.
30:36Yeah.
30:36Right?
30:37Because not one entrepreneur ever sat there and said, I'm going to mess up.
30:41I don't have to.
30:41This isn't based off.
30:42Sorry to interrupt you.
30:43It's not based off hopes and dreams.
30:44Okay.
30:45My previous brand just sold for $2 billion.
30:47Their average ticket is $2.
30:48Can we talk about your brand right now, your sales right now?
30:50Their valuation is only based off less than 6% royalties.
30:53Can we talk about your brand right now?
30:54Of course, we have more than a 30% profit margin on each individual store.
30:58Okay.
30:58I got it.
30:58I got it.
30:59I'm out.
31:02Okay, Dina, this sector you're in is very, very mature.
31:06There are many comparables that are public and private.
31:09Thousands of them.
31:10And so when investors are approached for restaurant concepts, they go back to the market.
31:14The public markets like McDonald's, Giant, Behemoth, and then private ones with only three locations.
31:20But those are brands that protect people and offer a safe place.
31:22No, I get it, except it's all based on one thing.
31:25There are profit margins that fall to free cash flow per location, per square foot.
31:30I want to know if you have that information.
31:33I would like to get real numbers from you, Dina.
31:33Yes.
31:33The actual sales.
31:35That would be very helpful.
31:36You have three restaurants.
31:37I know they've only been opened a short while, but what are they so far?
31:40Due to company structure and restaurant technology, we have reduced labor.
31:45What are the actual numbers?
31:47So currently, our labor is less than...
31:51No, the total number.
31:52Revenue, revenue, revenue, revenue.
31:53Oh, sorry, what do you want?
31:54What are your sales so far, actual sales?
31:56Pick a location and give us revenue per month.
31:59Revenue per...
31:59So it depends.
32:00It depends on the weather.
32:03So annual, the very first store should do 1.4.
32:06Should do or did do?
32:08We'd like to know what they've done.
32:09This month, what did it do this month?
32:10We just turned a year old March 1st.
32:11So we just want to know...
32:12So very politely, everybody's barking, I know.
32:14But what did you do this year?
32:17So just tell us that.
32:18So far this year?
32:19Yes.
32:20Uh, I believe it's $600 and something thousand dollars.
32:24What location?
32:25No, no, that location.
32:26Okay, $600,000.
32:28Did it make any money?
32:29Yes.
32:30How much?
32:31Yeah, so in January, we had a 26% profit margin.
32:34This is a no-manager model.
32:35We make all of our food in our food manufacturer.
32:39Blast freeze it.
32:40Deliver it to the stores frozen.
32:41The employees are simply reheating frozen food.
32:43Our speed of service is a drive-thru.
32:45And that's how you save costs.
32:46So that's what you were saying.
32:47That's what I haven't had a chance to talk about,
32:49is that I have fixed things that I felt were broken.
32:52Yeah, it makes total sense.
32:54I can hit a 10% labor.
32:56You can't do that in any other restaurant.
32:58So the idea is fantastic.
33:02What's hard for me is that you came in $750,000 for 5%,
33:07and you've only been up and running a tiny little bit,
33:11and you don't really have great sales.
33:13You don't yet.
33:14I believe in you, but I also like concrete proof and evidence.
33:20I'm out.
33:23Dina, unfortunately, you're in a sector that's very competitive,
33:26and your valuation is insane.
33:29I'm out.
33:32You know, for me, I'm a very short-kirt person by my nature.
33:37I'm very direct.
33:38And your communication style is very lengthy.
33:41And I wouldn't have the patience to communicate with you as a partner.
33:45So simply because our styles are so vastly different,
33:48I'm afraid I'm going to say that I'm out.
33:51Okay.
33:52Listen, it's exciting, and you're doing a very noble cause,
33:56and you're making money, and you have a track record of doing it.
33:58It has all of the parts in the recipe.
34:02Can I share with you?
34:03But it's just not...
34:03Hold on.
34:03It's just not coming together,
34:05and it's giving me a few red flags.
34:08So unfortunately, I have to be out.
34:12Thank you very much.
34:14I appreciate your time.
34:15Thank you, Dina.
34:16I appreciate you.
34:17All right.
34:17Take care.
34:18Bye.
34:19Bye.
34:22She had two great things about her.
34:24She knew her numbers, the factual ones of how it operates, right?
34:28And then her passion and her drive.
34:30And the product.
34:32I get it.
34:32The bad part was her passion was overbearing.
34:37Yeah.
34:37Yeah.
34:38Yeah.
34:38Didn't get a deal here today, but that's okay,
34:40because the universe gives us exactly what we need.
34:44I know that we have other investors out there that want us to open.
34:58Next up is a product to keep athletes safer while competing.
35:10Hi, Sharks.
35:12I'm David.
35:12And I'm Michael.
35:13And we're from Denver, Colorado.
35:15We're here today seeking $50,000 for 5% equity in our company, Stomp Athletics.
35:22Sharks, picture this.
35:24It's the fourth quarter of the big basketball game.
35:26The crowd is electric.
35:28You're dribbling the ball.
35:30You're about to make the highlight play of your life.
35:32And you slip and you miss.
35:37It's not because you suck.
35:38It's because your traction failed you.
35:41For years, athletes have relied on old tricks to give them traction.
35:45Whether it's using this soggy wet towel.
35:50That's gross.
35:51But the worst thing an athlete can do, they...
35:55Oh, David, don't do it in front of the sharks.
35:57They lick their hands and wipe their shoes.
35:59It's disgusting.
36:00It's true.
36:01There has to be a better way.
36:02So I invented Stomp Shoe Armor by Stomp Athletics.
36:07This patented, reusable traction product gives athletes traction wherever they go.
36:12Simply slide the Stomp Shoe Armor underneath your laces.
36:17Velcro it down.
36:18Run your laces through the top eyelets.
36:21Flip it back.
36:22Tie your sneaker.
36:23Now you have traction wherever you go.
36:26Michael, can you hit the sharks with a demo?
36:28Once you have the shoe armor on your laces,
36:30you simply swipe over the top of each shoe armor,
36:33removes all dirt and debris,
36:34you get instant traction.
36:36Oh, that is cool.
36:37You hear that chirp?
36:38That's wild.
36:38That's the sound of Stomp Traction.
36:40We also created the Stomp Traction mat.
36:43Simply place the mat on the court,
36:45wipe your shoes over the top,
36:47and instant traction again.
36:49That is cool.
36:50So, sharks, who's ready to start making money
36:52by stomping out the competition?
36:54Rashawn, we'd love for you to come up and try this out.
36:57So throw those sneakers on
36:58and come on up here.
37:00I want you to try the mini mat
37:01and just feel the grip.
37:03That is just a great idea.
37:05Hop on here.
37:06Okay.
37:06Just give it, you can get rough with it.
37:08Wipe your feet good.
37:09Yep.
37:09And then hit the traction board
37:10and just feel that pivot.
37:13Wow.
37:14Oh, yeah.
37:16That works.
37:16It's sticky.
37:17It's real grip.
37:18Now, feel the mat.
37:19It's not sticky.
37:20How does that work?
37:21So, here's the simplest analogy.
37:23If you had a pair of glasses on
37:25and they were dusty
37:27and you clean one side with a microfiber
37:29and one side with sticky tape
37:31and put them on,
37:32one side's clean,
37:33one has residue.
37:34These companies spend millions of dollars
37:36making the composites
37:37for their sneakers to have grip.
37:38We just have to keep them clean.
37:40So it wears down.
37:41So when you're on the court
37:42and you're running,
37:43it starts to wear off,
37:44you're saying.
37:45You start picking up dust particles.
37:46So how much does this product cost?
37:48So we have three products, okay?
37:50We have our large mat.
37:51That cost us $35 landed.
37:53And what do you sell it for?
37:55That retails for $99.
37:56And you're selling those to gyms
37:58and to teams and stuff, right?
37:59Yes, exactly.
38:00Then we have our second product,
38:01which is our mini mat.
38:02That cost me about $14 to $15
38:05and that retails for $55.
38:07And then we have the shoe armor
38:09that costs us just under $7
38:10and that retails for $29.
38:12So if there was ever a product
38:14that would be demonstrated
38:16and get a lot of people interested,
38:17it's this thing.
38:19We actually, last year,
38:20we were the traction mat
38:21at the All-Star game
38:23for professional basketball.
38:24What about the shoe thing?
38:26That's harder to get in the NBA
38:27or any illegal league.
38:28Is it illegal in the NBA?
38:29It's not,
38:30but they all have sneaker deals.
38:31Right.
38:31So you would have to strike a deal.
38:33Can't cover the logo.
38:34They can't modify the sneaker.
38:35So why wouldn't you go
38:37to the sneaker manufacturer,
38:38the big guy,
38:39and say,
38:40look, why don't you take
38:41a piece of our company
38:42and we'll work together
38:44to blow this up everywhere?
38:45If I had your superpower,
38:47they would call me back,
38:48I would love that.
38:49But how protectable is it?
38:51So we have several patents,
38:52design patents
38:53on the large mat
38:54and the mini mat,
38:55and we have utility
38:56and design patents
38:57on the shoe armor.
38:59What's your background?
39:00So my background
39:01is in engineering.
39:02I had a full career
39:03in oil and gas.
39:04I was very fortunate
39:05to build and sell
39:06several oil and gas companies
39:07over the course of a decade.
39:08Did you create this?
39:09I did.
39:10And one of my investors,
39:12I told him,
39:13I need a good sales guy.
39:14I need somebody
39:15with just a killer instinct.
39:17And he connects me
39:19to this guy.
39:19There he is.
39:20And here we are.
39:21So I was actually in college
39:22at TCU in Fort Worth, Texas.
39:24Yeah.
39:24Met with him
39:25and took a bunch of product
39:26in the back of my trunk.
39:28And within the first week,
39:29I sold it out.
39:29The entire Fort Worth
39:30Catholic School District.
39:32From that point forward,
39:32we started increasing
39:33our inventory.
39:34Have you taken on
39:35other investors?
39:36So right now,
39:37I own 90% of the business.
39:38I have two investors.
39:40How much have you invested?
39:41I'm probably around
39:42half a million
39:43between all the patents.
39:45You said half a million?
39:46Yes.
39:47Wow.
39:47Patents, manufacturing,
39:49inventory,
39:50and then a couple
39:50of years of business.
39:51What would $50,000
39:53do for you?
39:53We wanted to price this
39:55because we want a shark.
39:57This opportunity
39:57is unbelievably rare.
40:00Tell us how rare it is
40:01in terms of revenue.
40:02So lifetime sales
40:03were just under $220,000
40:05in sales.
40:06This year, though,
40:07we're on pace
40:07for $250,000.
40:09How big do you think
40:10the market is, Dave?
40:12Because, I mean,
40:12you only need one mat
40:14for each team, right?
40:15The athletes buy...
40:16Michael, tell them
40:17about the size.
40:17There's 30 million
40:18participants for basketball.
40:20Every player can have
40:20a mini mat.
40:21A team can have
40:22that large mat,
40:23but when you're going
40:23to practice at the rec center
40:25or at your local gym,
40:26you bring that mini mat
40:27in your backpack.
40:28So, guys,
40:29I've been listening
40:29to you very intently.
40:31I think it's much
40:32too early for an investor.
40:33I'm sorry.
40:34I'm out.
40:36So, I don't love
40:37niche businesses.
40:38I like things
40:39that are really broad.
40:41Love you.
40:42Don't love that
40:42it's too small a market,
40:44so I'm out.
40:45Listen, I think
40:46this product is superb.
40:48It is very unique.
40:49I think that may be
40:51a problem
40:51because you have
40:52to communicate
40:52and find your customer,
40:54which you will,
40:55but it's just not for me.
40:56I'm out.
40:58Have you guys ever heard
40:58of VC math by any chance?
41:00I need returns
41:01on my winners
41:02that are large enough
41:03to make up
41:04for the losses.
41:06And I'm just not sure
41:07that you guys
41:08can grab a big enough
41:09part of that market
41:10in time
41:11for me to make my return.
41:13I don't think
41:13I'm your shark.
41:14I do think you can get there,
41:16but I'm sorry.
41:17I'm out.
41:19Look,
41:19I think it's so niche-y,
41:20so vertical,
41:21so unusual,
41:23so shark tank-ish.
41:24Here's an idea.
41:26I give you the 50 grand
41:27for 15%.
41:28No royalty,
41:29no anything.
41:30I don't know
41:31what's gonna happen.
41:32This is a total flyer, guys.
41:34Would you be willing
41:35to meet us in the middle
41:36and do maybe a 10%?
41:39No, Dave,
41:40because I'm Mr. Wonderful.
41:41There's only one Mr. Wonderful.
41:42I think it's a fair offer.
41:44It's the only offer.
41:50Mr. Wonderful?
41:50You gotta deal.
41:51You gotta deal.
41:52Good job, Kevin.
41:53I think it's really interesting.
41:55I really do.
41:56Congratulations, guys.
41:56Thank you for the opportunities.
41:58That was a surprise.
42:00Yeah.
42:01Thank you, guys.
42:01Thank you, Sharks.
42:02Good luck, guys.
42:03Do you think Kevin
42:04ever wore a sneaker?
42:06Got it, baby.
42:06Come on.
42:07Mr. Wonderful.
42:09He's gonna help us
42:09take over everything.
42:10Taking it to the next level.
42:11Basketball, volleyball.
42:12Here we come.
42:13We gotta deal with Kevin.
42:15We're gonna work extra hard
42:16to make him proud,
42:17but most importantly,
42:18make him some money.
42:27We gotta deal with Kevin
42:30we gotta be!",
42:35Eric Geithy,
42:35We can get him tonight.
42:42We gotta keep his name,
42:43the whole marathon.
42:43We're gonna do that.
42:44The couple of times,
42:44In heroes' show,
42:45is dongling along,
42:48in people with three books.
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