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Shark Tank S17E18
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00:00Tonight, on the season finale of Shark Tank,
00:03money talks.
00:04Oh, you're making it rain.
00:05Sharks, let's talk about investing.
00:08Let's make some serious dough.
00:10I'm speaking my language right now.
00:11You love that word.
00:12Whose hopes will be dashed?
00:13Never let a greedy pig steal equity.
00:15Turn away from him.
00:16How much have you invested thus far?
00:17Almost a million dollars.
00:19Whoa! What?
00:20Oh, Lauren.
00:22And whose dreams will come true?
00:24All along, we've been invisible.
00:26We want to be more visible.
00:27You are not invisible.
00:28This is gonna be our American dream.
00:32It all starts now.
00:34Stop the madness.
00:43First in the tank is a way to invest like the rich and famous.
00:56Hi, Sharks. I'm Nikki.
00:58I'm Lucy.
00:59And I'm Victoria.
01:00And we're from San Francisco, California, where the rent is high.
01:04And so are our ambitions.
01:06We're seeking $250,000 for 2.5% equity in our company, Carrot Finance.
01:13Sharks, let's talk about investing.
01:17Right now, if you want access to the best investment strategies, you need to be rich.
01:22Like send a pop star into outer space rich.
01:25That's right.
01:26Wall Street is a gated community, while the rest of us are stuck outside shaking the fence like,
01:32Please sir, may I have a diversified portfolio?
01:36Meanwhile, the 1% are printing money and we're stuck with the Seams account collecting dust.
01:41And that's why we created Parrot Finance, an investing platform that lets everyday people mimic top tier professional investors like
01:50hedge funds, insider CEOs, and politicians.
01:53Because for decades, only the wealthy had access to these investing strategies.
01:58Now, you do too.
02:00Here's how it works.
02:02Connect your brokerage account.
02:03Discover and subscribe to high performing portfolios with proven returns.
02:09And view exclusive investment activity.
02:12So when Mr. Wonderful buys a stock, you get alerted and can choose to mimic that trade instantly.
02:19It immediately goes into your connected brokerage account.
02:22It's that simple.
02:23The rich keep getting richer and we let you in on their secrets.
02:29Now you can have your own mini Mr. Wonderful in your pocket.
02:32Only less grumpy.
02:35We partnered up with all the major North American brokerages to make it seamless and secure.
02:40Because smart investing shouldn't be just for the ultra rich.
02:44So, Sharks, who's ready to ruffle some feathers?
02:47And parrot the pros with parrot finance.
02:51Wow.
02:52Oh, jeez.
02:53Oh, my goodness.
02:54Oh, wow.
02:54Oh, my goodness.
02:56Oh, we're making it rain.
02:58Making it rain.
02:59Let me know.
03:00There we go.
03:01I love it.
03:03Good job, ladies.
03:05The first thing that comes...
03:06It's still going.
03:06He's still squawking.
03:09The first thing that comes to my mind is how are you getting information?
03:13And what about the privacy for the client?
03:16Yeah.
03:17So, we have two ways to get information.
03:19One through 13F filings, which is government data and reported.
03:23And the second is through bespoke custom partnerships we do with funds.
03:27So, you're just taking the public data, scraping it and saying this person either bought or sold.
03:32Correct.
03:33Okay.
03:33So, that's public information.
03:35You're just organizing it.
03:36But if I'm the brokerage company, I also sell advisory services.
03:41Why would I want you little teenagers telling me it's free?
03:45So, before you answer, I know this space so well.
03:49I invested in Robinhood and Coinbase and all these.
03:51They direct flow, trading flow, to these brokerage houses and get a commission every time they bring a client in
03:58that directs that flow.
03:59Is there anything like this right now, Rashawn?
04:02So, this is interesting.
04:04First of all, I'm fired up about it because I love FinTech.
04:07It's kind of like my thing, right?
04:08I'm trying to figure out if this is just a cool feature that a Robinhood can add or if you
04:12guys actually have a real business behind it.
04:14Do you have anything protectable about it?
04:16Yeah.
04:17So, the biggest thing here is with the 13F filings, it is public information.
04:20Yeah.
04:21However, it's extremely hard for the average person to be able to access this data because it's very messy and
04:27it's not aggregated well.
04:28Hedge funds do it right now.
04:29Yes.
04:29Retail does not do it.
04:30Retail cannot do it.
04:31You're trying to democratize it so that the average user can do it.
04:33And make it readable, digestible.
04:35So, people looking on their phones will get an alert.
04:37And actionable.
04:38And it's very actionable.
04:39You're able to basically take action by mimicking it and customize that trade.
04:43So, you're not blindly putting $5,000.
04:46There you go.
04:47You're parroting.
04:47I got it.
04:48It's funny.
04:49Why is it parrot?
04:50Because you're parroting it.
04:52So, it's customizable.
04:53I can choose to put $10 in this.
04:55And how many users do you have so far?
04:57Yes.
04:57So, we launched last year.
04:59And since then, we've gained 25,000 users with 85 million assets connected into parrot.
05:04That's very impressive.
05:05How do you make money?
05:06Yes.
05:07So, the biggest way we make money right now is through subscription model, a monthly fee.
05:10It ranges from $8 to $15 a month.
05:13Depending on the bundle, whether it's CEOs, politicians, hedge funds.
05:17What's your customer acquisition cost?
05:19So, of the 25,000 customers that require, about 60% of them came from organic.
05:24So, right now, we have about 50,000 followers across our socials.
05:26Oh, she's speaking my language right now.
05:27She is speaking my language.
05:29You love that word.
05:29Organic.
05:31Viral coefficient.
05:32I love it.
05:33I love it.
05:34So, we have 50,000 across our socials.
05:37Okay.
05:37And we have millions of impressions across all our socials as well.
05:4140% of that is through paid acquisitions.
05:43So, like, that's paid advertisements and influencer marketing.
05:47Just to understand a little bit about your backgrounds, because it's so impressive what
05:50you feel.
05:50So impressive.
05:51And you look very young.
05:52Are you as young as you look, or you just eat a lot of kind bones?
05:56I wish we were actually teenagers.
05:58Then I gave you a great compliment.
06:00So, we all have experience in top financial firms.
06:04I worked in the private equity world before this, and then I went into the consulting world,
06:08and then a hedge fund.
06:09So, it's at a $20 billion hedge fund.
06:11Amazing.
06:11And so, it really inspired me to go into the space and build for this.
06:14So, I actually worked at a large investment bank, where I actually partnered with a lot
06:18of hedge funds, working on the prime broker side.
06:20And Victoria and I are actually twin sisters, if you can't tell.
06:23Yes.
06:24I'm a third sister.
06:26So, I guess my background is very similar to Lucy's, but I come from an engineering background.
06:29It's a very male-dominated field, but the product and engineering at various companies,
06:33from small to, like, really large tech companies.
06:36You three are so inspiring.
06:38Thank you so much.
06:39What's really impressive is your valuation.
06:41Why do you think you're worth $10 million?
06:44Yeah.
06:44It's a great question.
06:45Well, we have the traction.
06:45You bet it's a great question.
06:47We have the traction in such short, little time with limited resources, and we have scaled
06:52our AUM up to $85 million in just a few months.
06:55So, we know the potential here.
06:57We can get billions of dollars.
06:58And your AUM is sitting on the brokerage account.
07:01Yes.
07:01But it's assets connected to Parrot.
07:03I understand why it's important.
07:05But in the real world, that doesn't really justify that valuation.
07:09What are your sales?
07:10So, we were founded just a few months ago, about five to six months ago.
07:13Really?
07:13Yeah, we launched.
07:14Congratulations.
07:15We were in development for quite a bit.
07:16So, a year before that.
07:17Actually, we were a freemium model till now, and we were kind of ramping up our user base,
07:22and now we just switched on pricing not too long ago.
07:25Okay, so you really don't know your sales yet.
07:27But we do have projections.
07:28What's your projections?
07:28And so we're on track for $1 million in the next 12 months.
07:32You know Warren Buffett, many, many years ago, made a bet that if you invested in an index,
07:38you would outperform all these hedge fund managers.
07:41And nobody was able to actually beat a standard passive index.
07:45So, why are you so confident that this is a better opportunity than just buying an index?
07:50So, these funds kind of offer diversification, risk hedging, and then in addition to that,
07:54there's just different ranges of investments that they can focus on.
07:57So, I think it gives people more personality into their investments.
08:01I don't think people are interested solely for returns.
08:04I think people are interested because they see politicians making trades.
08:07They see hedge funds making trades.
08:09Yes, exactly.
08:09People understand the volatility, and they don't trust financial advisors.
08:13Who invested and how much have you raised?
08:15So, we've raised to date about $2.5 million.
08:19Ooh, wow.
08:20Top Silicon Valley investors.
08:21And is it a safe note?
08:22It is a safe note.
08:23And what's the cap on the safe note?
08:25$10 million.
08:26Guys, I'm ready for an offer.
08:28Wow.
08:28So am I.
08:29Okay, let's go.
08:41All sharks are still in, and Rashaun and Lori are interested in Victoria, Nikki, and Lucy's financial tech company, Parrot.
08:49Uh, Lori, you want to come in with me on this one?
08:51I do.
08:51Okay.
08:51I really do.
08:52He knows I want to come in because I love ladies like you.
08:58And I just want to be there to be the accelerant along with him.
09:02So, yes, I'm in.
09:03So, I know this face like the back of my hand.
09:05And you guys solved the magic equation.
09:06You've been able to find virality in adding users, not just by spending money on advertising.
09:11Yes.
09:12Now, the first thing you need to understand is seed round valuations, which is what you raised, don't exist.
09:19So, I know you have this $10 million thing in your head.
09:21It's made up.
09:21That's not your valuation.
09:23That's the cap that it will convert to at some point in the future when folks like Lori and I
09:27help you get to the promised land.
09:29So, you don't have a valuation now.
09:31We want to offer you a valuation.
09:32So, for Lori and I, we'll split $250, but instead of 2.5%, which is a $10 million valuation, we'll
09:40do $250 for 10%, which is a $2.5 million valuation.
09:45And I'll share all the little tricks of the trade that I learned over 12 years with backing 10 of
09:50these fintech companies who did the same thing that you guys were trying to do.
09:53This is your shark.
09:54Thank you so much.
09:54I want to throw something out there just to make it more interesting.
09:57No, no, don't.
09:58So, I think there's a reason you put Mr. Wonderful in the presentation.
10:02I am the financial services guy.
10:04The whole idea is how much share can you get and drive users, but never let a greedy pig steal
10:09equity.
10:10So, I'm saying I'll do the deal.
10:12Turn away from him.
10:13I'll do the deal.
10:14I'll make it seven, around 7%.
10:18What do you want to do?
10:20So, Lori and Rashawn, thank you so much for your offer.
10:22Will you guys go in at $250,000 for 4%?
10:28How about we go $250,000 for 7%?
10:37Can you do $250,000 for 4% and 2% advisory shares, which brings it to 6%?
10:44I'll do that deal.
10:53I'll do that deal.
10:55Amazing.
10:56There you go.
10:57Oh, my God.
10:59Congratulations, you guys.
11:03So much to bring them to work together.
11:05Thank you so much.
11:07Thank you, everyone.
11:08Congratulations, you guys.
11:09Bye.
11:10Oh, my God.
11:14Here we go.
11:15Two sharks.
11:16We've got Lori and Rashawn, and they're the perfect fit for us.
11:19Yeah, I think they're great.
11:19They're so aligned with what we want to do, and they know what we want to do.
11:22Yeah.
11:23They see the vision.
11:24They believe in us, and we're so excited.
11:26We got a deal!
11:31Earlier this season, Ben Rosenbaum and Pete Davidson made a deal with Kendra Scott for their sock company, Double Soul.
11:37Do you mind if we make a quick call to my wife and co-founder?
11:40She's a CEO.
11:41I'm gonna come talk to you.
11:42What do you think?
11:43Are we good?
11:44Let's do it.
11:45All right.
11:45We're good.
11:46We're good.
11:46Let's see what they're up to now.
11:48The biggest change to our business is our son, Spencer, who was born just a couple months ago.
11:53He's the reason I wasn't able to pitch to the sharks.
11:55I was there to close the deal.
11:57I got a call from Kendra, and she was the shark I was really hoping to hear from.
12:00After Shark Tank, we experienced our biggest surge in orders ever.
12:03Within just an hour, we sold out of all of our Amazon inventory, and over the course of just a
12:07week, we sold over half a million dollars in sales.
12:10Before Ben and Pete pitched on Shark Tank, we were doing about $2.3 million in revenue for the entire
12:15year.
12:16And in just two months after Shark Tank, we've already done over $2 million in sales.
12:21The Kendra Scott socks that we did sold out immediately.
12:24I know, I can't even get one.
12:26An incredible testament to Kendra as a shark is we got to work right away designing a collaboration that was
12:31really inspired by her jewelry designs, both for one of her brands, Yellow Rose, and her other brand, Kendra Scott.
12:36And those are already available in store and online.
12:38Not only has Kendra been able to open up doors to some of the biggest retailers in the country, but
12:42she's given us access to her in-house merchandising team, who's been helping us build the infrastructure we need to
12:47just skyrocket and fly off the shelves.
12:49Selling to other retailers.
12:51I mean, that's really how I built my business and brand, where people can touch, can feel it in brick
12:55and mortar.
12:55And us starting to turn that on is so exciting.
12:58I'm proud of you guys.
12:59This is a great idea.
13:00With our baby at home and Pete also having a newborn, we knew what our next launch needed to be.
13:05We've been for years getting emails from frustrated customers.
13:08Why don't we have these in children's sizes, toddler, baby?
13:11Your socks actually stay on your foot.
13:13We're using EarthSafe dyes.
13:14We need a brand that we can trust.
13:16And that's why we're launching baby socks.
13:18It's gonna be really fun to have a baby soul sock play day together.
13:21There's so much more in store for us.
13:23We have an amazing collection coming out with Von Dutch.
13:26We're gonna eventually go into underwear, to sports bras, to lounge wear, and you'll be able to find our product
13:31everywhere.
13:32The projections this year were insane.
13:35When we take a look back at what we built, and we started packing socks in his mother's basement,
13:40and then we ended up on Shark Tank with Pete Davidson, it's proof of concept to every single person out
13:45there.
13:45You could get there. It's a matter of trying.
13:47Getting on Shark Tank was the best way for us to bring this product to millions of people.
13:51The sky's really the limit for us, and ultimately we see Double Soul being the next billion dollar brand to
13:55come out of Shark Tank.
14:11Next up is a guilt-free way to satisfy your sweet tooth.
14:23Hi sharks, I'm Santiago Arroyo.
14:26And I'm Diego Arroyo. We're brothers, and today we're seeking for $500,000 for 5% equity in our company.
14:35Don't worry, snacks.
14:37Sharks, let's be real. How many times have you tried a healthy snack that tastes awful?
14:43Or a delicious snack that is loaded with sugar, fat, and calories every day?
14:48Most of the snacks makes you choose between feeling good or tasting good.
14:52We set out to achieve the impossible.
14:54A snack with the lowest calorie and with the highest indulgence with absolutely no sacrifice in flavor.
15:01Introducing Don't Worry Snacks.
15:03Our melt-in-your-mouth meringue cookie are so airy, so lucious, that you won't believe it only has as
15:09little as one calorie per piece.
15:11No. One calorie per piece.
15:14Stop the madness.
15:15And our crispy quinoa bites, they are bold, they are craveable, and perfectly pop-able, like a crunchy little fiesta
15:23with zero sugar, low carb, and gluten-free.
15:26So, Sharks, who's ready to turn Don't Worry from the American Dream into the next American Obsession?
15:34I don't believe it. I want to taste it.
15:36For the first time in seven years that I'm here, you're finally speaking English properly. Now you guys know what
15:41it feels like.
15:43Okay, this is one calorie?
15:45No, that's four calories.
15:46No, that's four calories because it's fulfilled with chocolate.
15:48But see, I could eat a whole time.
15:50Oh my God.
15:51I just want to speak to this because I am a meringue lover.
15:55Okay.
15:56I love that you make it with allulose.
15:58That for me is like ding, ding, ding, home run.
16:00So there's no cane sugar in here?
16:02No cane sugar.
16:03Wow.
16:03Which is phenomenal.
16:05What's your background?
16:06We always loved sweets.
16:08And when we realized when we get older, it was like...
16:12They don't love you back.
16:13No.
16:13We don't love you back.
16:14We like to indulge.
16:17So we said, okay, we have to make something that really tastes delicious and you are not worried about eating
16:23it.
16:23Right.
16:24And after two years, we knocked the door on ATV Mexico in Monterey and they opened us the door.
16:31And what year was that?
16:33That was in 2012.
16:35Oh wow.
16:362012.
16:36So that's a long time ago.
16:37A long time ago.
16:39We have been doing this for 15 years.
16:41Okay.
16:41The product was very sensational in Mexico.
16:44And then we opened Costco and other...
16:47Wow.
16:47Big retailers.
16:48Big retailers.
16:49Walmart.
16:49In Mexico or in Mexico?
16:50In Mexico.
16:51In Mexico.
16:52Until this is Mexico.
16:53Okay.
16:54And one thing that changed our life is we received a call on 2020 from ATV US.
17:02And they told us, I want to bring your product into the US.
17:06And I went with the AI and I said like, can you believe that?
17:10This is gonna be our American dream.
17:14We have to do it.
17:15Oh, I love this.
17:16We start on the retail.
17:18After that, we got viral on TikTok.
17:20And this explodes.
17:22What are your sales?
17:232021, 1 million.
17:252022, 1 million.
17:272023, 1 million.
17:292024, we did 2 million.
17:31And up to now, we have done 2 million.
17:34Wow, good job.
17:35All right, guys.
17:36When you impute a $10 million valuation, that makes us like, what do these guys think they're doing?
17:42They're pricing it like a rocket, but they're a motorcycle.
17:43The last 12 months sales is 3.3 million.
17:48In 2024, when you did 2 million, what was your net?
17:52It was 6% EBITDA.
17:54So what are you gonna do this year?
17:55Our objective is 7 million.
17:58How are you guys gonna do 7 million this year when you did 2 million last year?
18:02So right now, we are currently doing 2 million in five months.
18:06That will take us to 5 million, but we have a positive trend.
18:10For you to get from the trajectory of 1 million, 1 million, 2 million, to 7 million,
18:16you're gonna need to have recurring revenue and recurring miracles.
18:20I mean, it is a very aggressive projection.
18:23He's the king of healthy snacks.
18:24It's like Mike Tyson said.
18:26Everybody has a plan to get punched in the face, right?
18:30Yeah, but this year, definitely, we're gonna reach 5 million.
18:33Yeah, but you're not valued at net sales.
18:35That's for hyper-growth companies in the venture capital space.
18:39You're valued as a private equity investment, which is a multiple of EBITDA.
18:44Three to five times EBITDA.
18:45Profit.
18:46Prime did get those valuations, but we had 25% EBITDA margins.
18:51You have a 6% EBITDA margin.
18:53Right.
18:53In the retail is 50, gross margin 50% on e-commerce is 72%.
18:59What percentage of your sales are e-commerce?
19:02Direct to consumer is 90%.
19:04So what happened when you went into H-E-B?
19:06When they said, we're gonna bring you to America, land of opportunity.
19:09Yes.
19:10What happened?
19:11We tried to open doors in the other retailers, but it has been so difficult for us to get
19:16in front of the right buyers.
19:19There are too many brokers, too many people promising you that they will get you in front
19:23of the buyers.
19:24Limited shelf space.
19:24Okay.
19:25So what are the stores that you are in?
19:27We are in H-E-B.
19:29H-E-B.
19:29It's out of Texas.
19:30Texas.
19:31Okay.
19:31The rest is online.
19:33So guys, this is the value pen.
19:35It smells value.
19:36I just have to hold it to my head and it tells me exactly what you're worth.
19:40Here we go.
19:41You're worth between one and a half and two million dollars.
19:43Facts.
19:44It's tough because if you're only worth a million and a half, I gotta get a third of
19:48the business to even just make it realistic.
19:5133%.
19:52I don't want to fight that out with you, so I'm out.
19:57You know, when you came in, you had me at hello, and then you lost me with almost everything
20:03else.
20:04Oh.
20:04And for that reason, I'm out.
20:07Well, for me, I think you guys should be valuing this business as a multiple of EBITDA
20:13because you're not growing at the scale at a venture-backed company scale.
20:16So that's number one.
20:17Number two, I'm a numbers guy, and the numbers seem a little shaky to me.
20:20It's just not adding up.
20:21Unfortunately, guys, I'm out.
20:23I'm sorry.
20:25I dig your valuation.
20:26I greet the guys over here.
20:28I mean, it's too inflated.
20:29There's no way you can base your valuation on top-line revenue.
20:32I love this product.
20:33I will be a customer, but I cannot be an investor for that reason, so I'm out.
20:39Lori?
20:40Come on, buddy.
20:40Am I the only one left?
20:41You are the only one left.
20:43Give them the money, Lori.
20:44I have a problem.
20:47Listen, I love you guys, and I love meringues.
20:50I love the name Don't Worry, and I think that could be great for a full brand of low-calorie.
20:55Then don't worry and give them a deal.
20:57Low-calorie.
20:58Here's my problem.
20:59I hate your valuation.
21:02Lori, remember what the pen said.
21:03One and a half million, that's what it's worth.
21:05The pen says one and a half million is what you're worth.
21:08So, that would be $500,000.
21:12For $33,000 and a third percent.
21:14For $33,000 and a third percent.
21:16What say you?
21:17What about doing the $500,000 for 10%?
21:24No.
21:24I understand.
21:25You're on the carpet.
21:26It's difficult.
21:27Now, I'm giving you a flyer, right?
21:29I believe in you.
21:30I like the product.
21:31I want to be a third partner.
21:34We don't want to be just merengues.
21:36That's what you want to do.
21:36We want to be a whole line of products.
21:39It is a ton of money on my part.
21:40It's going to be a ton of work for her.
21:41It's very risky for me.
21:49For us, part of the American dream has been people trusting in us, believing in our brand,
21:55and helping us out to achieve our dream.
21:58So, we want to take the offer.
22:00And thank you.
22:00Thank you very much.
22:01Great job.
22:02I love that.
22:03You made me start to cry.
22:05Good job, guys.
22:06Oh, my God.
22:08Great job.
22:09Literally, you made me start to cry saying that.
22:11Oh, my God.
22:13Yeah.
22:13Thank you for your trust.
22:15I trust you.
22:16I believe in you.
22:17And it's going to be phenomenal.
22:19I know.
22:19Definitely.
22:22Great job.
22:23Nice to meet you.
22:27And Lori will help us to get all over the U.S. and make our dream come true.
22:33And the most important thing, she trusts in us, in our brand, in our company, and we will
22:39make it happen.
22:52Next up is a solution to help lighten the load while traveling.
23:05Hi, Sharks.
23:06I'm Lauren from Salt Lake City, and I am here seeking $150,000 for 15% equity in my company,
23:14PACT.
23:14Okay, Sharks, let me paint you a familiar picture.
23:17You are wrapping up the vacation of a lifetime.
23:20You've hiked, you've lounged, you shopped like no one's watching, and now it's time to repack.
23:27Your suitcase exploding.
23:31Your dirty laundry is taking up half the space.
23:35True.
23:36And that adorable souvenir you had to have to commemorate the most important trip of your life is now a
23:43baggage fee liability.
23:44It's time to make some serious sacrifices.
23:47Or not.
23:49Introducing PACT.
23:51PACT bags are prepaid, pre-labeled, and eco-friendly mailer bags that let you take up to 10 pounds of
24:00your vacation clothing out of your suitcase and ship it directly to your doorstep from anywhere in the U.S.
24:07No need to hunt down a post office, buy a second piece of luggage, or sit on your suitcase while
24:14zipping it up again.
24:15Stuff it full, seal it, and drop it off at the front desk of your hotel or schedule a free
24:23pickup.
24:24It's that simple.
24:25You get more space, less stress, and maybe even one less suitcase to lug through TSA.
24:31And your stuff arrives at your doorstep in three to five days.
24:35So, Sharks, who's ready to help travelers ditch the dirty clothes and lighten up with PACT?
24:40Wow.
24:41Nice.
24:41I need that tomorrow.
24:43I do this a lot.
24:44I can relate to that suitcase.
24:45Oh, my gosh, yes.
24:46Like, all too well.
24:47It's like...
24:48I'm just wondering, I already do this with stuff from hotels using two giant delivery services.
24:55Sure, yeah.
24:55I just drop it off the concierge, say, take this and ship it to my home in Miami.
25:00Yeah.
25:00So, what...
25:01Why do I need you?
25:03I think that this is a more affordable option for more folks.
25:08So, what would it cost to ship that one pack right there?
25:11So, this bag for a customer is $35, flat rate.
25:16Whoa.
25:17Is that USPS?
25:18USPS, yes.
25:19Lauren, that sounds really high to me.
25:21It does.
25:22Yeah.
25:22So, a three pack, which is what we sell most of, is $90.
25:25Lauren, why is it so expensive for the bag, though?
25:26But why wouldn't I just go to USPS and get their bags?
25:30For free.
25:30For free.
25:31Just the convenience.
25:31They're not free, and their boxes...
25:33But how much are they?
25:34But they kind of are free.
25:35Like, sure, they're free to pick up.
25:37Most people go in and just pick up whatever supplies they want.
25:40Absolutely, yeah.
25:40The idea is you're not leaving a vacation location where you spent money to be in.
25:45Got it.
25:45There is some skepticism, Lauren.
25:47Yeah, of course.
25:48However, you can eliminate that immediately by simply talking about sales.
25:52So, last year we did $61,500.
25:57Okay.
25:58And this year we are already at over $41,000.
26:02Whew.
26:03Okay, that is not a lot.
26:05All of this to make $81,000 this year?
26:0961.
26:10I hate to correct you and say it was lower, but I don't want to say it was lower.
26:14She is honest.
26:15Last year where you made $61,000.
26:17Yes.
26:18How much did you make or lose on that year?
26:21Um, I don't know about that year specifically.
26:23I haven't made any profit.
26:25So...
26:25It gets more exciting by the minute.
26:27I know, it's so fun.
26:28No.
26:28It's so fun.
26:29I think that this kind of goes back to the business 101.
26:32I've been learning a lot and I spent the first few years because it's all self-funded.
26:37How much have you invested thus far?
26:38Almost a million dollars.
26:39Whoa!
26:40What?
26:40What?
26:41You've invested yourself one million dollars.
26:45Stop.
26:45Oh, Lauren.
26:47Are you kidding?
26:47Where did you get...
26:48Where did you get a million dollars to invest in this?
26:52From a fam...
26:55Like, I'm married into a family that has...
26:57Money.
26:57...a very successful business.
26:59Okay.
26:59Okay.
26:59Okay.
27:00I want to talk about something different.
27:01So in 2023, we did a market research study and found that 44 million travelers in the
27:08U.S. fit into our bracket of folks that travel more than three times a year, make more than
27:13$150,000 a year, and then 85% of them that were presented with the brand, they watched
27:19an ad, they saw the website, they saw all of these things.
27:22And they know how much it cost.
27:23And they know how much it cost.
27:24And they know how much it cost.
27:24And they said they would buy it.
27:25Yes, absolutely.
27:26And so the issue has been reaching that audience.
27:29I need to put more money behind that.
27:30No, no, no.
27:31I forbid it.
27:31You already put a million dollars.
27:35What in the world did that million dollars go towards?
27:39Help me.
27:40Help me hug you.
27:40We were buying advertising for six years.
27:42Oh.
27:43It cost money to make the bag.
27:45Six years?
27:46Do you know what advertising is in this situation?
27:48Oh.
27:48It's a tax for the unremarkable.
27:51That's what advertising is.
27:53You're being taxed because your product isn't priced right, and people don't want it.
27:57So in this case, advertising is not a good thing.
27:59The problem is, I would not pay more than $10 for three of these things.
28:03So the problem is the pricing of it.
28:05Sure.
28:05I'm out.
28:06I'll pass it to the other sharks to see if there is.
28:07I'm out with extreme prejudice, and I actually forbid you to go on.
28:10There's nothing but pain and darkness ahead.
28:12I mean, you can't go on with this.
28:16I'm out.
28:17Lauren, listen.
28:18You have such a wonderful personality, and part of your challenge is your charm is probably
28:26helping you continue without hearing the feedback that you need to hear.
28:30This time, Mr. Wonderful's correct.
28:32Like, you need to adjust.
28:33I actually think if you listen, because of your incredible energy and personality, you'll
28:39figure it out, but you have a long ways to go, and for those reasons, I'm out.
28:45I don't personally think this is the right business for you.
28:49Now, think of other things, because you have a wealth of knowledge.
28:53I'm so sorry.
28:55I'm out.
28:57Lauren, I'm gonna share a story with you, okay?
29:00My first business, I went in the hat business, and I was convinced that I was going to make
29:06people wear hats again like it was 1940.
29:08Everyone in the world was going to wear hats.
29:11Guess what?
29:12Nobody wanted to wear hats.
29:14And I kept putting money into it until I was sucked dry, and I had nothing left.
29:18And I had to come to the realization, people are not going to wear hats, Kendra.
29:23Yeah.
29:24And I had to have the bravery, right, to say, enough.
29:27Yes.
29:28How much more am I going to lose?
29:29But that business was the foundation for the successful business I launched ahead.
29:35And I think you have that in you to be a successful entrepreneur.
29:39But you are so stuck right now in tunnel vision on this idea has to be the thing,
29:44that you're not opening yourself up to the fact that this may not be it.
29:49Something better may be waiting for you.
29:51I don't want you to drown.
29:52Mm-hmm.
29:53And I can't give you a life preserver.
29:55And I wish you the best, but I'm sorry I'm out.
30:00And this isn't the end.
30:02Right, yeah.
30:02This could be the beginning.
30:04That's right.
30:04I just want you to know you're incredibly courageous, and a lot of people would not have
30:10the strength that you have to have gotten this far.
30:12So you deserve appreciation for that.
30:16That means a lot.
30:19Oh, look at that.
30:21Very beautiful.
30:22Very fancy.
30:23And look, most entrepreneurs make most of their money on their second or third business.
30:27Right.
30:27You got to get this one out of your system.
30:29Lauren, we'll see great things from you down the road.
30:33Have a good one.
30:35Bye.
30:35Whew.
30:37So obviously I have some decisions to make.
30:41It would be stupid of me not to recognize the people in that room know what they're talking about.
30:47Um, so I guess I just have a lot to think about.
30:51Look, we just did her a huge favor.
30:52Yes.
30:53We need a moment of silence for a million dollars.
30:55A moment of silence, please.
30:58Please.
31:11Next up is a family that's serving up pies with a passion.
31:27Hello, Sharks.
31:29I'm Melody.
31:30And I'm Russ.
31:32I'm Tayshia.
31:33I'm Rylan.
31:35And together we are deaf.
31:37And CODA, family-owned business.
31:39CODA means children of deaf adults.
31:41That's me and Tayshia.
31:43We're here seeking 200,000 in exchange for 5% of our company.
31:49I've always wanted to be a professional chef, but because I was deaf, no one would hire me.
31:53So I trained in Italy and became a master Neapolitan pizza maker.
31:58So almost 15 years ago, these two crazy kids decided to open up their very own Neapolitan pizzeria.
32:04And after many years of watching our parents sling dough, we decided to band together as a family of four.
32:09In the form of frozen pizza.
32:11With...
32:11Paioa!
32:13Paioa is the first frozen, handmade, globally inspired Neapolitan pizza company.
32:19It's light, chewy, crisp, restaurant-quality pizza made in minutes within the comforts of your own homes.
32:26Each pizza is hand-stretched and made from imported Italian 00 flour, which is considered to be the gold standard
32:33in dough making.
32:34Paioa isn't just about pizza.
32:38Although our pizzas are amazing.
32:41We've also created a mission that matters.
32:43We're providing job opportunities for the deaf community and building businesses that are inclusive and impactful.
32:49We put in the work.
32:50The passion.
32:51And the time.
32:53And now we're here looking for the right shark to help us scale.
32:58Let's make some serious dough.
33:00Yay!
33:01Good job!
33:02You guys are the most beautiful family.
33:05Thank you so much.
33:07Sharks, in front of you have our four current frozen pizza flavors.
33:09We have our margarita, quatra fromagi, soppressata, and of course our miso eggplant.
33:14Plus, you also have in front of you our spicy chili crunch to put on top of the pizza.
33:19Oh, my goodness.
33:20This looks very attractive.
33:22Oh, my gosh.
33:23It smells so good.
33:24This was frozen?
33:25Yes.
33:25This is frozen.
33:26This tastes like a fresh pizza from a restaurant.
33:29All right.
33:29Wow.
33:30This is incredible.
33:31Thank you so much.
33:31This is really different and really special.
33:34What is this?
33:35That's our miso eggplant.
33:36This is off the charts.
33:38Oh, my God.
33:39You guys enjoy it.
33:40This is so good.
33:41The quality is excellent, but are you still making them by hand now?
33:46Currently, yes.
33:47How can the economics of that be viable?
33:49Right.
33:49Yeah, we have a great team that we work with to do that by hand.
33:52How many can you make a day by hand?
33:54About 250 right now.
33:55And where are you guys selling the pizzas now?
33:57Right now, we just launched our first larger retailer, Earth Fair, in the Carolinas,
34:01but we're actually going to be launching into a couple of natural retailers in Southern California.
34:05Whole Foods, Bristol Farms, and Mother's Market.
34:08And you're delivering them frozen?
34:09Yep, frozen.
34:10And does it come packaged like this?
34:12Yes, exactly like that.
34:13I want to get my head around if you hire a new employee that is a master pizza maker,
34:20how many can they make in a day before they just drop on the floor?
34:25So, the two of us, Russ and I, we are the first certified professional Napoleotano pizza makers.
34:31So, we do hire a deaf team.
34:33We teach every one of them how to make these pizzas.
34:36Why is it called Pio?
34:37Yeah, so Pio is the word pizza, replacing the Z's with double zero, which is the type of flour we
34:42use.
34:43So, instead of all-purpose flour, semolina flour, we use double zero flour, which is imported from Italy.
34:47So, that's where Pio comes from.
34:47There are two things that I know really well.
34:49Number one is pizza, because I'm from Chicago.
34:51We eat deep dish pizza.
34:52Me too.
34:52But the other thing that I know really well is numbers.
34:55So, I would love to know how much you guys are selling, what revenue, and when do you start?
34:59We started about two years ago.
35:01Our lifetime sales are at $422,000.
35:05Last year alone, we earned $222,000.
35:08Currently, we've made about $125,000 with the goal of meeting $350,000 by the end of the year.
35:16Our food cogs right now are $3.64.
35:19Okay.
35:19Our wholesale pricing is $6.50.
35:22MSRP is $13.99.
35:24Were you profitable last year on that $222,000 in revenue?
35:29No, we haven't made a profit at the moment.
35:32The profit margin right now is at 30%.
35:34With the funds we're seeking and with scale and increased automation, we can increase that to about 50% profit
35:40margins.
35:40And have you raised money?
35:42We have invested about $250,000 of our own money.
35:44Wow.
35:44We have raised $300,000 so far.
35:47Wow, that's a lot.
35:47That is a lot.
35:47What do you need from a shark?
35:49We need capital to assist us in terms of purchasing the equipment.
35:52That's a key part of our process.
35:54And we will be able to streamline our process with that equipment, with that automation, and go to scale.
35:59So we'll be able to go nationwide.
36:00We'll be able to meet the demand that is already there.
36:03Yeah.
36:03Receiving a lot of opportunities.
36:05And unfortunately, we can't say yes to all of them.
36:07Like what opportunities?
36:10$1.4 million in revenue that we've had to turn down.
36:13Really? From who?
36:15From food services.
36:16Sports stadiums.
36:17Sports stadiums.
36:18And I also just want to add, my kids are beautiful people.
36:22They've dove in and are full-time.
36:24Myself, I support as much as I can.
36:27I'm the company's best cheerleader.
36:29I also work full-time at a deaf university.
36:32Amazing.
36:33I am the director of an entrepreneurship program there.
36:36Oh, wow.
36:37Really?
36:37The unemployment rates for the deaf community are about 55%, very high.
36:41So it's super important for us as a family, as deaf community members, because we experience a lot of rejection.
36:47We want to apply for jobs.
36:48We do apply for jobs.
36:49And that rejection rate is so high because people don't want to work with deaf folks.
36:53So this is an opportunity to grow.
36:55This is an opportunity for us to have stores all across the nation for people to see that, wow, we
37:00can provide opportunities for work for people all over the place.
37:03Wow.
37:04You standing on this carpet today is showing them that it's possible and what a representation of what family looks
37:10like.
37:11Yeah.
37:12Really, I'm going to get emotional because just to see the love between the four of you, your commitment to
37:17each other, and this dream is just awe-inspiring.
37:20But this is just not, I don't know anything about grocery.
37:24I just don't yet.
37:25And I don't want to do something that I know I couldn't absolutely do something amazing and help you deliver
37:30what you need to deliver.
37:31But I will be your biggest fan and supporter, but I just don't think I'm the right shark for this
37:36deal.
37:37So for that reason, I'm out.
37:38But thank you for inspiring me today.
37:40Thank you so much.
37:41Thank you so much.
37:42Pizzas are a very competitive space, very competitive.
37:45Freezer space, very competitive.
37:46And so I wish you the very best, an amazing story, but I'm out.
37:54I think you guys are an amazing family.
37:57And this pizza was so good, but I don't know much about frozen food.
38:00There's way too much competition in this space.
38:04Sorry, but I'm out.
38:06We appreciate it. Thank you.
38:07Guys, I really, like everybody here, feel so touched.
38:11It's so clear the love that you guys have for each other.
38:15And there's something about Corda families, the unity, the love, the commitment of the kids to the parents.
38:21Stop.
38:22I'm not crying, you're crying, but I'm also crying.
38:25You're going to make me cry.
38:26There's just something really beautiful.
38:27And it's a dream of any parent to have your children love you so much that they want to partner
38:31with you and work with you.
38:32And I really commend both generations for what you guys have built.
38:36Like it's so clear how united you are.
38:39Yeah.
38:39But I just don't see this business as investable right now.
38:43There's way too much competition in this space.
38:45For that reason, I'm out.
38:50Thank you so much.
38:51Well, there's still one shark left.
38:53Okay, Lori, what are you doing?
39:08Four sharks are out.
39:10Lori is the Stein family's last chance for a deal for their deaf and Coda family owned pizza business, Paioa.
39:18I'll tell you how I feel.
39:21I look at you and my heart fills up.
39:25I mean, there's certain people that come here and touches me.
39:28When you said that only 50% of people that are deaf get an opportunity to even work, that broke
39:36my heart.
39:37Because it's so unfair.
39:41You deserve a deal.
39:43I want to be the first shark to have a deaf founder and family as part of my family and
39:52give you that opportunity and lead by example.
39:55So I'm going to make you an offer.
39:58I'm going to go 200,000, but I'd like to get 15%.
40:03And I will help blow you up in the best way imaginable.
40:08What do you say?
40:11Thank you so much.
40:17Can we have a second to talk?
40:18Yes, you can.
40:19Yes, you can.
40:20Give us just a second.
40:25I see a billion dollar exit in the future on this one for you.
40:28Yeah.
40:29I hope for them.
40:34Okay, so first of all, thank you so much.
40:37We definitely appreciate this offer.
40:39We have been working so hard.
40:41All along, we've been invisible.
40:43We want to be more visible.
40:44And so we definitely need a shark's help to get nationwide to have people to see us finally.
40:51And so we do want to thank you for the opportunity.
40:54We would like to counter offer if we might.
40:57So can we say 10%?
41:02Let's say 12 and you have a deal.
41:12Okay.
41:14I'm happy for you guys.
41:16Thank you so much.
41:18Oh my gosh.
41:19Thank you so much.
41:20Thank you so much.
41:22Amazing.
41:23Oh my God.
41:24I see you.
41:25I see you.
41:26Amazing.
41:27You are not invisible.
41:28Oh my God.
41:29I see you.
41:30And the world's going to see you and they're going to know this pizza.
41:33And they're going to love it.
41:35Yes, they will.
41:36Thank you so much.
41:37Congratulations.
41:38Thank you so much.
41:39Bye.
41:39Oh, you're crying.
41:40Oh my God, I never see him cry.
41:43Very moving.
41:44I never see Kevin cry.
41:47All you have to do is start with a dream.
41:49And then chase that dream.
41:51And not let anyone tell you no, you can't do it.
41:54Persist.
41:54Persevere.
41:55Break through those obstacles.
41:56Break through those barriers.
41:57And show people that you can.
41:59You are worth it.
42:01You know what?
42:02It's got to start, right?
42:04Like it starts little places.
42:06People be seen.
42:07They were seen today.
42:08Oh my God.
42:09And I hope this brings such awareness.
42:11I hope so too.
42:12To everybody watching.
42:13That's why we're sharp.
42:14I'm so happy they got you.
42:15Great job.
42:16You are the right shark for this.
42:18My goodness.
42:58I'm so happy.
42:59I'm so happy.
43:00I'm so happy.
43:00I'm so happy.
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