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00:01Shark Tank
00:01é para quem está tentando dream.
00:04Há uma indústria-billion-dollar
00:05que não tem visto inovação
00:07em 5,000 anos.
00:08Eu estou aqui hoje
00:09porque a nossa terra é em crise.
00:11Olhe.
00:12Olhe.
00:13Quando eu come into a deal,
00:15eu amo ser o acelerador,
00:17não o spark.
00:18E agora,
00:18Rashaun Williams,
00:20Venture Capitalista
00:20e Limited Partner
00:21da Atlanta Falcons,
00:23joins the tank.
00:24Eu estou tentando fazer algo
00:25chamado VC Math,
00:26onde eu estou tentando ver se
00:27se eu posso fazer dinheiro.
00:28Eu estou tentando.
00:28Can we get a world-class athlete?
00:30All right, you guys.
00:31Coming in here,
00:32we did have our top point
00:33we could go to.
00:34We don't care.
00:35We're sharks.
00:44First into the tank
00:45are entrepreneurs
00:46who believe they have
00:47an important post-workout tool.
00:56Hi, sharks.
00:56My name is Anthony Genstead.
00:58And I'm Lauren Campbell.
01:00We're seeking $500,000
01:02for 2.5%
01:04of our company,
01:06Firefly Recovery.
01:07Sharks,
01:08did you know
01:08many athletes today
01:09recovery has become
01:10as important
01:11as working out?
01:12Athletes are talking
01:14about their recovery.
01:15They're tracking
01:16their recovery.
01:17They're even posting
01:18about it on social media.
01:19But recovery modalities
01:21have not kept up
01:22with the times.
01:23We see products
01:24like these pneumatic
01:24compression boots,
01:25but they're clunky,
01:27time-consuming,
01:28and they do not fit
01:28into the active lifestyle
01:30of today's athletes.
01:31But now,
01:32athletes have
01:33a better,
01:34easier,
01:35portable,
01:36mobile recovery solution.
01:38Firefly Recovery.
01:40Why don't we invite
01:41one of our loyal customers,
01:43five-time Olympian,
01:45Carrie Walsh Jennings,
01:46to join us
01:47and talk about
01:48how Firefly has helped her
01:49and show you how it works.
01:52Sharks.
01:53Hey.
01:53Hey.
01:54Hey.
01:54How are you guys?
01:55We're good.
01:56What an honor.
01:57Guys, you're crushing it.
01:59As you can see,
02:00the Firefly gently
02:01stimulates the perineal nerve
02:02in the leg
02:03to cause the foot to flutter.
02:04We call that
02:05the Firefly flutter.
02:06action acts as a natural pump
02:08to increase systemic blood flow,
02:10speed up recovery times,
02:11while reducing soreness.
02:13We move three times
02:15more blood flow
02:16than compression.
02:17Sharks.
02:18800 pro and college teams
02:20are already purchasing
02:21the Firefly.
02:21So,
02:22who wants to set
02:24the athletic recovery market
02:26on fire
02:26and join us
02:28on Team Firefly?
02:31So, where is the injury,
02:33per se,
02:34on Carrie?
02:35Yeah, no injury at all.
02:36We're talking about recovery.
02:38So,
02:38you work out,
02:39these athletes are training hard
02:40for their events,
02:41and then,
02:42after that,
02:43they want to recover faster
02:44so they can actually
02:45perform better
02:46the next day.
02:47You know,
02:47we used to think of recovery
02:48as a day that you take off,
02:50but recovery's a lifestyle.
02:51You want to eat better,
02:52you want to sleep better,
02:53all those things.
02:54But a big component
02:55of recovery is circulation.
02:57Anthony,
02:57can you pull
02:58those compression legs out?
03:00Yes.
03:00So, I'm a huge investor
03:01in Therabody.
03:02They're a percussion
03:04recovery company.
03:05that has massage guns.
03:06Okay.
03:06So, I feel like you're talking
03:07to me right now
03:08with those compression legs,
03:09and I literally wear them
03:11because I'm getting older.
03:12Are you saying
03:13that this device
03:14replaces the need
03:15to wear those compression legs,
03:17which I have to sit
03:18on the chair,
03:19crop my legs up.
03:21Exactly.
03:21My kids think I'm an alien
03:22because my legs
03:23get really swelled up
03:24and they come down.
03:25I can put that on my leg
03:26and just walk around
03:27and assume life is normal,
03:29and I don't have to wear that?
03:30Absolutely.
03:30Lord, have mercy.
03:31Can we get a world-class athlete
03:33to also tell us
03:34from her, you know, user side?
03:36Yeah.
03:37So, I have been a pro athlete
03:38for over 20 years.
03:40I just retired,
03:41which still hurts my heart
03:41to say out loud.
03:43But when I'm training
03:44and trying to be best in the world
03:45and win gold medals,
03:45I would use them.
03:46And I would notice
03:47my legs are lighter.
03:48I'm fresher.
03:49Is this only for legs?
03:51It's a great question.
03:51So, 70% of our blood
03:53is in our lower extremities, right?
03:54All we're doing is using
03:55your nervous system
03:56to pump it back
03:56to your heart faster.
03:57So, it's a systemic flush.
03:59It's called OnPulse Technology.
04:01That's the nerve stimulation.
04:03Do you have a patent for this?
04:04So, nine families of patents,
04:0647 patents in total.
04:08They are utility patents,
04:09and this product is very,
04:10very patent protected.
04:12All right, guys.
04:12Let's talk about
04:14the big shockeroo in the room.
04:15Come on.
04:16Two and a half percent
04:17for $500,000.
04:19Come on.
04:19There's a $20 million valuation.
04:21Why in the world
04:22do you think
04:22you are worth $20 million?
04:26Because you know
04:26I love to shred
04:27around valuation,
04:29and I'm getting
04:29the weasel out in me.
04:31Lifetime sales
04:32were at $7.5 million.
04:34That's not gonna get it.
04:35The last 12 months
04:36were $4 million.
04:37We are on track this year
04:39to do $5.5 million.
04:40We are growing
04:41at a very fast rate.
04:42The first few years
04:43of the technology
04:44was very focused
04:45just on teams.
04:47We didn't really have
04:48a direct-to-consumer business.
04:49One quick question
04:50about the product.
04:51Speaking of the consumer side.
04:52Lori, we're over
04:53the product merits.
04:54No, I'm over you.
04:55I just want to talk
04:56about valuation
04:57because it's the big shockeroo
04:59in the room.
05:00You are not worth $20 million.
05:02So rude.
05:03Listen, 25 years ago
05:05when I started
05:05in the investment space
05:06at Goldman Sachs,
05:07this is the first thing
05:07they taught me.
05:08There's no such thing
05:09as a bad deal.
05:09It's just bad prices.
05:10And right now,
05:11this smells like a good deal,
05:13but at a bad price.
05:14So let me ask you
05:14a couple questions.
05:15What was the total amount
05:17you raised in the past?
05:18Because I feel like
05:18you're jacking this valuation
05:20because you're trying to pee
05:21some old investors.
05:22In 2022,
05:24we did an athlete-led seed round.
05:26We raised a million dollars
05:27with professional athletes
05:29and friends and family.
05:31That was at a $10 million
05:32pre-money valuation.
05:34Oh my God.
05:35Wow.
05:35And that's all you've raised total?
05:37That's all we've raised total.
05:38So, how much does it cost you
05:39to make it
05:39and how much you sell it for?
05:41Landed cost is $17.30.
05:43Retail, these sell for $48 for one set.
05:48And how long does this last?
05:50If you did recovery every single day,
05:52like your athletes,
05:54they're going to get a whole month.
05:55Don't they get pissed off
05:56that you've got to keep on buying
05:58again and again and again?
05:59They're not unhappy with the product
06:01because you're going to get
06:0215 treatments per pack.
06:04Guys, I love the product.
06:06I like you guys.
06:07Carrie, congratulations
06:07on your success.
06:09Honoring the country this way.
06:10I love it all.
06:11Evaluation is a real sticking point
06:13for me on this one.
06:14I don't think you're worth 20.
06:18I wish you the best of luck.
06:19I'm out.
06:20Thank you.
06:21So guys,
06:22I think I'm a little confused
06:24on a lot of the things
06:25that were said here.
06:26I just don't,
06:26I don't know enough
06:28at such a high valuation
06:30with where this is right now
06:31to confuse it for me.
06:32So I'm out.
06:34Thank you, Damon.
06:37So guys, let me tell you
06:38where I'm at.
06:38Look, it sounds amazing.
06:39It sounds like it works.
06:41but at its price,
06:43$48 a month to get this recovery
06:46as opposed to maybe not quite as good
06:48with the leggings.
06:49It's different.
06:50We're going to ultimately.
06:51The idea of spending $48 a month
06:53is insane for 99.99% of the work.
06:56What would you pay to feel better?
06:57No.
06:58I mean, seriously?
06:59I think you're looking at it wrong.
07:00It's $3 a treatment, right?
07:03So if I'm training for a marathon.
07:04No, but it's not a treatment.
07:05Look, it's recovery.
07:06Yeah.
07:06Recovery is not a treatment
07:07unless you're a professional athlete.
07:08No, no, no.
07:09If you're training for a marathon,
07:10if you're a CrossFit athlete.
07:11But you've got to be rich to do it.
07:12What if you're just someone
07:13who pumps iron daily?
07:14Starbucks is $5 a cup.
07:15We're talking $3 a treatment.
07:17$48 a month.
07:17That's every subscription you have
07:19for every streamer that you have.
07:20You know, that's how people
07:22will think about it.
07:22for those reasons about it.
07:24See, I don't agree with that at all.
07:25Thank you, Martin.
07:26So I see a real market for it.
07:29And I see it, the real market,
07:31as being direct to consumer.
07:33Yes.
07:33As people age, if they've been active
07:36in their life...
07:36Seven people are turning 65
07:38every minute in this country.
07:40There you go.
07:40I think it's a great product
07:42and I think there's a lot of promise.
07:43Roshan and I were talking.
07:44He agrees with me.
07:46So we have an offer together.
07:47Yeah, yeah.
07:48So I'm actually gonna pull a cart
07:51from your deck here.
07:53I never thought I would do it, man.
07:55Every time I hear your deals.
07:56Don't go there!
08:07Three sharks are out.
08:08But Lori and Roshan are interested
08:11in Anthony's and Lauren's
08:12workout recovery product, Firefly.
08:15So we'll offer you $500,000.
08:18For 5%, we want a $1.50 royalty
08:22until we get our money back
08:23and then $0.50 in perpetuity thereafter.
08:26And we will make sure you guys
08:28take this to the next slide.
08:28You are wise, Grasshopper.
08:30Yes.
08:32So in terms of the royalty offer,
08:34first of all, we appreciate your offer.
08:36Yes, thank you.
08:36So we are already investing
08:39so much back into the business.
08:41We were not looking to add a royalty
08:44to the business right now
08:45because we want to be able to continue
08:48to invest and grow in the business.
08:50So what's your counter?
08:52Yes, we would come up from the 2.5%
08:55to 3.5% for the $500,000.
09:00Come on.
09:01Is the perpetuity royalty
09:02you have a problem with?
09:03We...
09:03Yeah, that always is an issue.
09:0550 cents is not going to ruin your business.
09:07Oh, 50 cents could ruin your business.
09:09So they made a counter, guys.
09:11What are you going to do?
09:12So, look, first, I think your last round
09:14with the athletes was mispriced.
09:16If the issue is the actual royalty,
09:18we can talk about that.
09:19Our concern is that we never get our money back.
09:21You guys never sell this business.
09:23But you're a VC, Rashawn.
09:24I know, I need my money back.
09:25You plan on exits and selling the company.
09:27Can I talk about the valuation?
09:28Prior to coming in here,
09:30we did have informal conversations with P.E. and Venture.
09:34And for this category,
09:36they were saying four to six times
09:37Rev is a good place to be.
09:40Lauren, I'll say it for him.
09:42We don't care.
09:43We're sharks.
09:44So we did come in below that.
09:47Because you are sharks,
09:48I don't want to negotiate against ourselves.
09:50We countered.
09:50It's only one thing that you're not anticipating.
09:52You're going to take millions of dollars
09:54and spend it on marketing
09:55and you're going to get a million dollars
09:55of marketing from us for free.
09:57I have a separate marketing agency
09:58that I would charge them an average
09:59of $3 million a year for this.
10:10So, we'll count on your offer.
10:13If we remove the royalty,
10:15we need our 5%.
10:17So, no royalty.
10:205% for $500,000 is our count on our final offer.
10:24Pretty clean deal.
10:25That should be easy for you guys.
10:26Thank you for that.
10:27We appreciate it.
10:27And that is clean.
10:29Coming in here, we obviously did have like our top-level point we could go to
10:33and we felt that was 4%.
10:36That would be unfortunate.
10:37You're going to let 100 basis points
10:39and you're going to walk out without a deal.
10:401%.
10:411% you're going to let Queer the deal.
10:42Like, that's crazy.
10:43Any investor in the country will tell you,
10:45don't be dilution sensitive, be success sensitive.
10:47And right now, that 100 basis points could cost you guys hundreds of millions of dollars.
10:53I see hundreds, if not thousands of pitches.
10:55It's impossible to get where you are.
10:57And you're going to walk out for 100 basis points, 1%.
10:59You're nuts.
11:01You're absolutely nuts if you do that.
11:02What do you guys want to do?
11:03Okay, we're going to take a moment.
11:07Thank you.
11:14So, we had a game plan when we came in.
11:17And like Tyson said, you know, everybody's got a plan until somebody punches you in the face.
11:22We appreciate the punch and we would love to take the deal with you guys.
11:26Wow!
11:27That's what you're talking about.
11:28It gives me chills.
11:30Very nice meeting you.
11:32Sorry.
11:33Thank you.
11:33Thank you.
11:34That was one of the scariest things I've ever done in my life.
11:37Congrats, guys.
11:38Well done.
11:39Woo!
11:40Oh, my gosh.
11:42Back to the grind.
11:44Honestly, we've been grinding since we started.
11:46It's not going to change.
11:47It's just going to add more fuel to the fire.
11:50And I'm sure they're going to be great at, you know, opening our eyes up to how to run this
11:54business differently and better.
11:56You guys crushed it.
11:58Wow.
11:58Thank you, Sharks.
11:59Thank you, thank you.
12:00You guys are champs.
12:03In season 11, Joe Altieri made a deal with Lori Vernier for his inventive window screen company, FlexScreen.
12:10The world's first and only flexible window screen.
12:13That's cool.
12:14Let's see what he's up to now.
12:16When I pitched to the Sharks, we were doing about $100,000 in weekly sales and our lifetime sales were
12:21$11 million.
12:22Since closing our deal with Lori, we are now doing about $600,000 of weekly sales and lifetime sales have
12:29grown to $160 million.
12:33You have a lot of speeches coming up and I want to show you a really cool tool to help
12:37you write your speeches faster and better.
12:39Since being on Shark Tank, I often get invited to speak at conferences and universities and high schools.
12:45So my tech savvy director of marketing introduced me to Google Workspace with Gemini to help develop a script for
12:52an upcoming talk.
12:53Help me write a speech that is for college students about starting a business.
12:58When I hit create, it's going to run through a whole sequence.
13:01It's going to actually break down the sections of questions.
13:03It's going to write you some bullet points of what to talk about and it will actually give you a
13:07place to refine it.
13:08So let's add in here, talk about my Shark Tank experience and we hit insert and it will add that
13:13Shark Tank experience in here.
13:15Dude, this is awesome.
13:16With Gemini, it's like having a personal assistant that knows exactly what I need.
13:21In the tank, Mr. Wonderful had mentioned licensing, but at that time, our manufacturing process was way too difficult and
13:28very, very costly.
13:29But two years ago, all of that changed.
13:31We partnered with one of the premier automation companies, Erdman Automation.
13:35Together, we built the fastest window screen line in the world.
13:39We can now produce up to 6,000 screens in one day.
13:42We are now licensing the equipment and the technology to window manufacturers across the country.
13:48Are you guys ready to see the fastest window screen line in the world?
13:51We only started this licensing initiative two years ago and we've already signed up 26 licensees and we're in negotiations
13:57with a lot more.
13:59Let's make this official.
14:00What is next for Flex Screen is really domination of screens in all homes and in the marketplace.
14:06Once you see something that is so much easier, so much smarter, why would you ever use anything else?
14:11Yeah, I actually think that Flex Screen may wind up to be one of the best and most successful products
14:16in Shark Tank history.
14:30Next up is an innovation to an ancient art form.
14:41Hi Sharks, I'm Joel Pennington, the founder and CEO of Black Dot.
14:46Sharks, there's a multi-billion dollar industry that hasn't seen much by way of innovation in over 5,000 years.
14:52And the first client on record was Oatsy the Iceman.
14:56I'm talking about the tattoo industry.
14:58And while people are getting more tattoos and at a faster rate than ever before, there's a significant portion of
15:04the population that has been considering a tattoo but is hesitant because of concerns around pain, design choices.
15:12Moreover, with social media, people are now able to see what top tattoo artists the world over are able to
15:17offer.
15:18And as a result, many tattoo seekers end up wanting to work with a tattoo artist that is out of
15:23reach.
15:23Black Dot has solved all of these issues and more.
15:27We've recently introduced the world's first automatic tattooing device paired with an online marketplace for high-end tattoo art.
15:37Licensed designs are uploaded into our platform and the Black Dot device tattoos at a level of precision that hasn't
15:43existed until now.
15:45We use fantastically small Black Dots, roughly the size of a human hair, as the pixel to create our tattoos.
15:51With Black Dot, we've created something that's scalable.
15:54So, Sharks, it's time to roll up your sleeves.
15:57And for $1.5 million for 5% equity.
16:00Oh!
16:00Oh, is that all?
16:02Boom!
16:02You can join Black Dot and be a part of the tattoo revolution.
16:05So, Joel, do you have a business behind this?
16:08We do.
16:08So, what we've done here is this is fake skin, synthetic skin.
16:12And these are tattoos by the Black Dot device.
16:15Okay.
16:15I just figured this was...
16:16So, it's down to a very fine level.
16:19Like, when you look at this here, it's extremely fine.
16:22Do tattoo artists hate you?
16:24Some do.
16:25Well, yeah, because you take their jobs, essentially.
16:27Well, that's not necessarily the case.
16:28Here's how it works.
16:29First of all, when we license designs, we license them from tattoo artists as well as visual artists.
16:36It's scalable for the tattoo artists.
16:38Every time a licensed tattoo is executed, that artist gets paid.
16:42So, actually, for tattoo artists, for the first time ever, we're enabling them to scale in an industry with a
16:48low ceiling.
16:49Right now, they just trade time for money.
16:51Yeah, I'm into the tattoos.
16:52I got over $300,000 worth of ink on my body.
16:56Do you really?
16:57Do you really?
16:57I do.
16:58I do.
16:59Because my tattoo artist is one of the top in the world, Arlo, and he's really expensive.
17:04Wow.
17:04What is your business model?
17:06Just give me the breakdown.
17:07First of all, this company was founded in 2019.
17:09We're venture-backed.
17:10I've raised $4.5 million to date.
17:12Oh!
17:13We launched the company formally in October of last year.
17:17And so, what we've done is we had three very different artists just to kind of prove the power of
17:23the platform.
17:23So, the first artist, we worked with Omar Tunka.
17:26He's a top artist out of Istanbul.
17:27So, he created a special exclusive collection for Black Dot.
17:31And for his tattoos, they range in the $2,000 to $3,000 price point.
17:36Is that expensive for a tattoo?
17:38So, Damon, how much would one of your tattoos have cost?
17:41Because he had to do it by the hour, right?
17:43One of my tattoos is $70,000.
17:46Okay, so why wouldn't we put you?
17:47Seven-zero?
17:48Yeah.
17:49The next artist that we worked with was Tyler Hobbs.
17:52Okay.
17:52And Tyler Hobbs is the number one generative artist in the world.
17:57Generative art is using algorithms and code to create work.
18:00His pieces that are in print, they're all six figures.
18:04They sell at Sotheby's, Christie's.
18:06I mean, he's tip of the spear.
18:07Okay.
18:08And so, the price points for his tattoos, $9,875.
18:12From your machine?
18:13From our device.
18:14You can make $100,000 of those, right?
18:16No.
18:16Right now, we're very supply constrained.
18:18We're based in Austin, Texas.
18:19I have one Black Dot device.
18:21Oh.
18:21Right?
18:22So, I don't have a fleet.
18:23Is there more pain or less pain?
18:25People rate it as two out of ten on a pain scale is the average.
18:29Whereas a traditional tattoo is five to eight.
18:31So, what are you selling us here today?
18:33So, originally, the business plan was to be able to create our own studios, Black Dot Studios, owned and operated.
18:39But now, what's up?
18:39But now that I've been out talking to the investor, we've only pivoted the business recently to make the Black
18:45Dot device available to tattoo studios.
18:48Do you purchase one?
18:49Do you lease one?
18:50So...
18:50He only has one.
18:52The plan, the model that probably makes more sense is to lease it.
18:55What does it cost to make a machine?
18:57What do you sell it for?
18:57And please talk about revenue.
18:59I'm dying over here.
19:00We have to get to revenue in a second.
19:01Well, there's not much, right?
19:01But go ahead.
19:01Because you have one machine.
19:02So, right now, our internal cost is about $120,000 to be able to build the device.
19:08Okay.
19:09That's why you want to lease them though, right?
19:10Because it's so expensive to get any type of markup.
19:13It's going to be really difficult for third parties to just come in and buy.
19:16$130,000 is what I'm doing with my engineering team now.
19:18As soon as we have a contract manufacturing come in, we have line of sight to be able to...
19:22Sorry.
19:23We have line of sight to be able to get this down to about $50,000 per unit.
19:26Got it.
19:26One machine.
19:27How many tattoos have you made with it?
19:30We've made over 100.
19:32How many paying clients?
19:33Most of them are test people as we've been testing the product.
19:36Test people.
19:37Okay.
19:37So, we know $120,000 to $30,000 to make it.
19:40To make the device.
19:40Now, if I wanted to buy it, I have my own tattoo shop and I want to buy it.
19:44I don't have a price for you right now.
19:45We've only recently been able to make this transition to be able to lease it, so...
19:49So, what have you spent the $4.5 million on if you don't have a business plan?
19:52And five years.
19:54This is exceptionally hard to be able to do.
19:55All my team on the engineering side are all Johns Hopkins, PhD...
19:58Yeah, look, it is hard.
19:59To make the machine, essentially, it took that long.
20:02Joel, am I wrong in saying this?
20:03There is no business plan.
20:04You want me to give you $1.5 million for 5% to go into a journey of chaos with
20:09you.
20:23All sharks are still in, but they are struggling to understand Joel's business plan for his robotic tattoo company, Black
20:30Dot.
20:30Joel, am I wrong in saying this?
20:33There is no business plan.
20:34You want me to give you $1.5 million for 5% to go into a journey of chaos with
20:39you.
20:41That's not fair at all.
20:43In fact...
20:43Well, what...
20:43Before we go off on a tangent, before...
20:45Okay.
20:45The hard part for us...
20:47And by the way, there's patents.
20:48We have four issued patents.
20:49So, what we're trying to do is get a real feel for how you would grow the business.
20:53Yep.
20:53So, what you're telling me is we'll give you the benefit of the doubt, $50,000 to make a machine.
20:57You're gonna then lease it to others.
20:59You're going to charge how much?
21:01Because you had to have done this math, right?
21:03To figure out if you could make...
21:03We have our internal math that I have.
21:05Yep.
21:06What is the revenue per machine, per month?
21:09On an annual basis, it's roughly a million dollars.
21:11And margins on that were like 79%.
21:15But you don't really know because you haven't really done it.
21:18Let's oversimplify it.
21:19I get a machine.
21:20I'm a tattoo shop.
21:21I run $2,000 a day on tattoos.
21:24$10,000 a week, $40,000 a month.
21:27So, okay.
21:28So, let's say, you know, that thing is running about an hour, right?
21:31And you're open eight hours.
21:33So, that's the model on probably how much a shop can do with the machine.
21:38How do you get paid?
21:40So, what we would do is, I mean, you'd have a flat rate, presumably, for a leasing piece.
21:45They would be able to go ahead and put their own artwork in it to be able to use it.
21:49There's probably a subscription service for being able to go ahead and leverage that.
21:53And then there's, in all likelihood, a marketplace, the marketplace that we've designed, which they would have access to as
21:58well.
21:58We get a piece of that as well as the contributing artists.
22:01Joe, Joe, Joe, can I jump in for a second?
22:03Let me just say something about this that is kind of rubbing me the wrong way.
22:07There are three levels.
22:09It's go to product phase, and then just go to market phase, and then just go to scale phase.
22:14I love the go to scale phase because now you have a product, you know what your market is, and
22:18you just kind of ramp up.
22:19You're still in product phase.
22:21And this costs a lot of money to build a two-sided market while simultaneously building these machines and raising
22:27all of this capital.
22:28But because of the complexity here and the stage that you're at, unfortunately, I'm out.
22:35You are here so early.
22:37You don't have any of this worked out yet.
22:39I feel like you are just figuring out what you're even going to do, what even is the business model.
22:45You're asking for a tremendous amount of money when you don't really have any actual support of sales yet.
22:53At a $30 million valuation.
22:54At a $30 million valuation.
22:56I'm so sorry.
22:58I'm out.
22:59Okay.
22:59Thank you.
22:59Joel, I'm going to grade you on this presentation.
23:03In terms of presenting a market that we've never looked at this way on Shark Tank in 16 years, that's
23:09very large, I'm going to give you a 10.
23:12I'm going to give you a negative six on presentation skills.
23:15Yeah.
23:15Because you're all over the map.
23:16I'm just being honest with you.
23:17You've got to deliver some essence of a pathway to where I give you a million five and somehow I
23:24get it back times X, maybe 10, 20, 30 times.
23:27That's why I'm a investor.
23:29But because you chose such a large number, a million five, I got to have some essence of a plan.
23:35It has to be buttoned up.
23:36And you didn't deliver on that.
23:38Very nice guy.
23:39Very interesting idea.
23:40And if I was going to get a tattoo, I'd want this machine.
23:42Because I like level two pain, not 10, I get that.
23:47But you just sucked in terms of presentation.
23:51I'm out.
23:52Yeah, Joel, I don't think you were that bad.
23:53But here's what I think you did leave out.
23:55Once you pivoted to having a machine, you talked about the end user as opposed to the customer who is
24:01a tattoo shop or somebody who wants to open up one, right?
24:04And you didn't define the value to them because they're the ones that have to make the hardest decisions.
24:10And so you have to be able to model all that out to sell them.
24:15And you didn't get into any of that in terms of the economic benefit to them so we can understand
24:20the economic benefit to us.
24:21Yeah.
24:22And that's what was missing because that's still confusing and uncertain.
24:25I'm out.
24:26Okay, fair enough.
24:26Thank you.
24:26You're welcome.
24:27Yep.
24:29Damon.
24:30Damon.
24:31Mr. Tattoo.
24:32Yeah.
24:34Whoo.
24:34Ah.
24:37I think every single shark here hit all the valid points.
24:40But I see such a massive opportunity because the tattoo market is a massive, massive opportunity.
24:47And so Mark was right in there.
24:49How would I do that as a shop?
24:51You didn't define that.
24:52Add it to what the other sharks said about a $30 million valuation.
24:56It's extremely hard for us to participate in this.
24:58It's like I love this idea.
25:00So much opportunity here.
25:03So many challenges at the same time.
25:05Yeah, fair enough.
25:06I'm out.
25:09We wish you the best, Joel.
25:10Really, good luck.
25:11Good luck, Joel.
25:12Good luck, Joel.
25:13Thanks, Joel.
25:14All right.
25:14Take care.
25:15Cheers.
25:17I'm looking for investors that are missionaries, not mercenaries.
25:21I'm looking for people that want to back the company because they genuinely believe in what we're doing.
25:25My advice to entrepreneurs is refuse to be discouraged and don't quit.
25:30Damon, $300,000 on your body.
25:32You've got to go in the ice.
25:34You've got to go.
25:34No, Kevin.
25:35In the ice.
25:35Think about how much you spend for some of those silly watches you have.
25:38All the little bottle of wine you have.
25:39All that swirl.
25:40That swirl.
25:41How much do you spend on that?
25:43Eww.
25:43I'm...
25:44You're missing the point.
25:45Tess to that.
25:46Tess to that.
25:47How much of your little cup do you got?
25:48Hey, everybody.
25:49Hey.
25:49So, listen.
25:50You know something?
25:51What you're missing, Damon, is these watches can be passed on.
25:56Damon took the gloves off.
25:57The only way you can pass on your tattoos is you're going in the ice.
26:00Testifying it.
26:12Next up is an entrepreneur on a mission to preserve one of Earth's most overlooked resources.
26:26Hi, Sharks.
26:27My name is Paige Hanson.
26:29I'm seeking $250,000 for 10% of my company.
26:33I'm here today because our Earth is in crisis.
26:37A soil crisis.
26:39Sharks, soil is a very precious resource.
26:42But intensive monoculture farming is depleting it.
26:45Stripping its nutrients and biodiversity along the way.
26:49Leaving us with soil that can look like this.
26:53But Sharks, there is another option.
26:56Hey.
26:57Soil that is rich, healthy, and thriving.
27:00All we need to do is increase demand for crops that improve the soil naturally.
27:05Luckily, I know just the crop.
27:08Buckwheat.
27:09Buckwheat is a seed, not wheat.
27:11And farmers love this crop because it naturally regenerates even the most ravaged soil.
27:17It suppresses weeds, prevents erosion, and attracts beneficial pollinators.
27:21Let's give this crop its moment in the sun that it deserves.
27:25Introducing BAM Buckwheat Milk.
27:28Our milks are deliciously creamy and slightly nutty.
27:31They're organic, gluten-free, dairy-free.
27:33A complete protein loaded with antioxidants and magnesium.
27:37So, who's ready to invest in the cream of the climate-smart crop?
27:42Sharks, in front of you we have our samples of BAM Buckwheat Milk for you to try.
27:46And also some ways for you to enjoy them.
27:48So, we have three skews, original, hint of vanilla, and extra creamy.
27:52And then the ways to try them are a smoothie, a vegan chocolate pudding, and an iced coffee.
27:58So, I tried the hint of vanilla.
28:00What did you think?
28:01It's nice.
28:02I can taste the buckwheat-y taste.
28:04Like, when you drink oat milk, you get the oat taste.
28:06But this is not, but it doesn't taste like milk.
28:08It's a good taste.
28:09I taste something.
28:10It's really light.
28:11I like it, but I don't...
28:12It's very light.
28:12It's like almond milk.
28:13It reminds me of how almond milk is very liquid.
28:16But it's water.
28:16It's super watery, but I like it.
28:18What is this one?
28:19The smoothie is really good.
28:20Now, Paige, don't take this the wrong way, but in Burgundy, when we look at some very high-end wines,
28:25I'm a member of the Chevalier de Testevin, and we look for what's called the barnyard nose.
28:31Okay.
28:32In other words, translates for French into pig .
28:35And I'm getting a little bit of that barnyard nose in this.
28:39Well, I know, Mr. Wonderful, that you know that everyone has different palates, and buckwheat does have an earthier note
28:45to it.
28:45So, when you think about the plant-based milk market, first of all, this is a $2.9 billion market
28:51in the U.S.
28:52Now we're talking.
28:5343% of U.S. households regularly purchase plant-based milk.
28:57It has a 70...
28:58I'm sorry, I just keep looking at your face, Mr. Wonderful.
29:00Don't look at it.
29:01Do not look at it.
29:02You know what, it's hurt all of us for all these years.
29:04That's his normal phase.
29:05I worked really hard to keep this product super clean.
29:08When you drink those oat milks that have become so popular, the main ingredient after oats and water is oil.
29:15Is oil, really?
29:16Yes.
29:16Usually the second ingredient.
29:18Let's talk about the economics of your business.
29:19250,000, 10% imputes a $2.5 million valuation.
29:22Yes.
29:23I'm going to assume you've got some people buying this stuff.
29:26Yeah.
29:26So, I launched in November of last year, so I'm new to market.
29:30I'm based in San Diego, and I launched with about 25 stores as a pilot test.
29:34Okay.
29:34How much did you sell?
29:35So, I've sold, since November 17th of last year, 50,000 lifetime sales.
29:41In March, I launched into Whole Foods Market.
29:43Okay.
29:44So, let's go through your margins.
29:45What it costs to make it.
29:46$2.94 landed per bottle.
29:48I sell it for $4.95 per bottle to my distributor.
29:51Yeah.
29:51You'll find it on shelf anywhere from $8.29 to $10.99.
29:55I'm trying to do something called VC math, where I'm trying to see if I can make money.
29:59Okay.
29:59What are your use of proceeds?
30:01So, I'm not yet profitable, even though I have that.
30:04I don't expect you to.
30:04Yeah.
30:05Which is very confident.
30:06I'm not Kevin.
30:06I'm not going to bash you for that.
30:07Thank you.
30:07I want you to reinvest all the profits into growth.
30:10I'll bash you if you want.
30:10You can try.
30:11Yeah.
30:12You can try.
30:13So, just tell me your use of proceeds first.
30:15Yes.
30:15So, right now, because it's just me, I have outsourced a couple of positions.
30:19My distributor is outsourced.
30:20My co-man is outsourced.
30:21So, you need to hire some people internally.
30:23Yes.
30:23And what's your monthly burn?
30:24My monthly burn is about $12,000.
30:26Okay.
30:27And so, right now, I've only raised a little bit of money.
30:30I have funded this 100% with my savings.
30:32Yeah.
30:32Wow, good for you.
30:33My mission is big.
30:34Actually, a quick side note, because, you know, female founders get like 2% of VC money.
30:39Bad.
30:40Bad.
30:41See what happened?
30:43I was like, what the hell just happened?
30:45Let's see if we can change that today.
30:46Because, by the way, African Americans get probably about the same or less, right?
30:50Yeah, right.
30:51So, let's hear it.
30:52Go ahead.
30:52I've only raised $250,000 to date.
30:55And what valuation?
30:55That was a $2.5 million valuation, which is part of the reason I'm accepting that today.
31:00That was a year ago, and that was as a convertible note.
31:02A $2.5 million cap on a convertible note is not a valuation.
31:08That's where the note caps at, and then it converts from debt to equity in the future.
31:13So, there's no real valuation.
31:14I haven't done a price round.
31:16You borrowed money that converts.
31:17Got it.
31:17There's no price round.
31:18Last question.
31:192024 projections for this year.
31:21What is that?
31:21So, I'm projecting $200,000 in sales this year.
31:24Good for you.
31:25Good for you.
31:25Let me take a stab at it, Paige.
31:26Okay.
31:27I understand everything about your product now.
31:29I just can't get behind it, because I don't like the way it tastes.
31:32Not for me.
31:33I'm out.
31:34Aw.
31:34Okay.
31:35Paige, I'm in the same boat.
31:36I mean, your mission's great.
31:38You're great.
31:38I think you need to build a community, because culture and soil is good, but that's hard to convey at
31:43retail.
31:44Okay.
31:44You've got to build a community of like-minded people who think the soil is more important than the price.
31:50Mm-hmm.
31:51More important than, okay, I'll get used to the taste.
31:53That's what you've got to build.
31:54That's what you didn't bring in.
31:55And so, for those reasons, I'm out.
31:57Okay.
31:58Sorry, Paige.
31:58Thank you, Mark.
31:59So, Paige, I can see how hard you have worked on this.
32:02It's just not the right investment.
32:04I wish you continued success, but I'm sorry.
32:07I'm out.
32:09Paige, this is the most critical time for a founder.
32:12In the earlier you asked for capital, the more it costs.
32:15And I'm going to have to give you a valuation where I'm asking for 20, 30, 40, 50.
32:20I just don't think that it's the right thing to do.
32:24You are too early for me, but you're in a great place for you.
32:28All right.
32:29I wish you the best.
32:30I'm out.
32:31Thank you, Damon.
32:32I really appreciate that.
32:34One thing that I want to mention also is I am launching with a big retailer in January.
32:39That's when my costs will drop 60%.
32:41Why didn't you bring that up earlier?
32:43Because I forgot because you're making so many faces.
32:48You're great, Paige.
32:49Paige, you're great.
32:50You really are.
32:51Paige, I'm here.
32:53Rashawn.
32:53So, I am a very active beverage investor.
32:57I know.
32:58I was the first investor in Happy Viking, plant-based protein drink for women.
33:03Mm-hmm.
33:03And I invested in Zen Water, Casa Azul, Recover.
33:06And I know the beverage space extremely well.
33:09When I come into a deal at this stage, I love being the accelerant, not the spark.
33:16Okay.
33:17Because there's not a lot of spark here with the revenue and the traction, I can't really
33:24do my thing yet.
33:25Right?
33:26So, for that reason, I'm out.
33:30Oh.
33:31Congratulations, Paige.
33:32Congratulations.
33:32Good luck.
33:33Thank you very much.
33:34Good job.
33:34Bye.
33:35You did a great job.
33:36Thank you.
33:36So, of course, I was disappointed that I didn't get a deal, but honestly, I'm more motivated
33:42than ever.
33:43I think I captured the shark's attention, and it wasn't the right time, it wasn't the right
33:46fit, but Bam Buckway Milk is here to stay.
33:49Damon, the percentage of women and minorities who raise venture capital, you brought up a
33:55good point.
33:55So, every morning I wake up, I have 25, and I'm sure all of you guys have this, pitches
34:00from people who are trying to raise money from something.
34:02It's 99% men.
34:03I very rarely see a woman.
34:05You know what's interesting on Shark Tank after 16 years?
34:07Why do you think that is?
34:08I don't know.
34:09We don't have that problem on Shark Tank.
34:11It only is one thing.
34:12Can you make money?
34:14Why do you think I'm here?
34:15This is the best thing ever.
34:16You can sit here and get all the best deals.
34:28Next up is a father-son duo with a way to make a dangerous sport safer.
34:35Come on.
34:41Hello, Sharks.
34:43My name is Martin E., and I'm the CEO.
34:45And I'm Martin A., the CEO D., the CEO's dad.
34:48We're from Mutual, Puerto Rico, and we're asking for $200,000 for 10% of our business.
34:53Sharks.
34:54Hockey has all the elements to a blockbuster sport.
34:56Intensity and speed.
34:57Drama and energy.
35:01And even the occasional fight.
35:03My team.
35:03What, I was just trying to defend my teammates, dad.
35:06And players do this all while skating at full speed on top of sharp knives.
35:10Yes.
35:11Sharp knives.
35:12Yikes.
35:13And despite all of their added protection, hockey players still face critical vulnerabilities
35:17on the neck, arms, and legs, making blade injuries a serious concern.
35:21With limited options for protection being too bulky and mostly for adult players, we decided
35:26to design our own.
35:27Meet Duster Hockey.
35:29Compression base layers with cut-resistant fabric designed for youth hockey players.
35:34Take a look.
35:35Our armor compression shirts offer added protection around the neck and arms without compromising
35:40comfort or mobility.
35:42Our pants help players play hard and play safe by offering protection around the ankles
35:48and the tights.
35:49So Sharks, who wants to make this sport safer and join this power play with Duster?
35:55Good job.
35:56So in front of you is a sample of both the arms and legs.
36:00And please take your time as I have to change some of my gear.
36:04Cut protection is rated A1, A2, A3.
36:07And then the standard for hockey is A5.
36:10And all of our products are certified at the A5 level.
36:13Mr. Williams, we would like to invite you to show our demonstration.
36:16Uh-oh.
36:18I'm nervous.
36:20So this is just a basic pool noodle.
36:23Okay.
36:23So here's my skate.
36:25Try to cut the pool noodle with the blade of the skate.
36:28My son Cooper would love this so much.
36:30What is this representing?
36:31This would be the equivalent of the arm.
36:34But in the absence of an arm.
36:36Just cut it.
36:36Just cut it.
36:38And there you go.
36:40Oh, man.
36:42And now we're going to try the same thing, but with our protection.
36:47So let's see how this works.
36:48Okay.
36:49So this is the area that has the cut-resistant fabrics.
36:53There you go.
36:55Just get in this thing, man.
36:56Okay.
36:57So let's see.
36:58So now you see that there's only a mark.
37:00And if we move...
37:02Oh, wow.
37:02Then there's no damage to the noodle right there.
37:05That's very impressive.
37:06Wow.
37:06So that's how our product works.
37:08Thank you very much.
37:08Thank you.
37:09I really try to cut it, too.
37:10I didn't know this was that dangerous.
37:12I did.
37:12There was a guy who got killed not long ago, right?
37:15Really?
37:15Back in October, there was a lethal accident.
37:18Oh, my God.
37:18And as a result of that, we sold out in two days after the accident happened.
37:23What type of weave is this?
37:25Because it's really thick.
37:27My background is in engineering.
37:29And some of the products that are available are based on the use of Kevlar.
37:33And Kevlar doesn't do very well with heat and humidity.
37:37Our material is a polymer base that doesn't change when you wash it, when you heat it,
37:42when you can put it on a dryer, and the properties remain where they are.
37:45We also have three patent applications for our product in order to protect our design.
37:51Oh, that's good.
37:51Have you sold anything yet of this?
37:53Lifetime, which is less than two years, we have around $326,000 in sales.
37:59You're selling direct to consumer only?
38:01And who are you selling to?
38:01We're doing both.
38:01Direct to consumers, and also we're selling through pro shops.
38:05What's the cost to make?
38:06What do you sell it for?
38:07So the shirt for youth players is around $26.
38:11To make it?
38:11Yes.
38:12And what do you sell it for?
38:13$85.
38:14There are three giant players in hockey equipment, whether it be the skates, the helmets, the pads, the sticks.
38:23No one's ever been able to crack that oligopoly of hockey equipment.
38:28Why aren't you just going to one of those players and just saying, look, we have this patented technology,
38:33you could put your brand on it and pay us a royalty and get instant distribution,
38:37both at the professional, semi-professional, home leagues.
38:41Those guys don't let competitors into that space.
38:44There hasn't been one in 30 years.
38:47They're not going to stop them, right?
38:49See, Kevin took too many hits.
38:50He played before there were helmets required.
38:53How are you going to acquire customers at scale?
38:56That's my question.
38:57There are six teams already testing our products, and our products already saw action during the NHL playoffs.
39:03I must remind you, Martine and Martine, Nike got crushed like a cockroach in the hockey equipment business.
39:10Nike!
39:10Nike!
39:11That is not going to stop us.
39:12We're already in six NHL locker rooms.
39:15And for an NHL team, right, where cost is not the issue, you said you're working with six of them.
39:19Have they committed?
39:20We're working with teams that are already testing.
39:24You're testing.
39:25And then next week, we're going to meet with all the NHL equipment managers and all the AHL equipment managers.
39:31Oh, good for you. That's smart.
39:32So let me get it started.
39:34This is super technical.
39:37I don't think I could be able to help you from the manufacturing side as well as the passion side.
39:42I'm out.
39:43Understood.
39:44Guys, I look at it looking at the last 30 years in the hockey equipment space.
39:49There are very, in fact, there's none I know, new brands that build scale.
39:54What they all did was they licensed to one of the big three because they control the distribution of the
40:00product in all the major cities.
40:02You're going to go that path.
40:03This will have a big boy logo on it one day because it's great innovation.
40:07Good luck to you.
40:08100%.
40:08I'm out.
40:10Well, I'm super inspired by this.
40:12I have a five-year-old son, and he and I are so much alike that it's scary.
40:16And you guys are like what every dad and son aspires to be, right?
40:21It's so inspirational to see you guys partner together and build generational wealth and entrepreneurship.
40:26Love it.
40:28One thing that I'm struggling with is I don't know the industry.
40:32It's a sport that I'm not that familiar with, so I don't think I can bring that much value.
40:37And looking at how early you guys are, unfortunately, I'm out.
40:41Thank you.
40:42Thank you very much.
40:43Listen, what you've done is very hard to do.
40:46I think that you've made a beautiful product.
40:50Thank you.
40:51I agree with Kevin.
40:53I feel that this would be an easier road for you to license it.
40:57And I hope that that is what you do because it's just so good.
41:02I can't see them not wanting to jump on it.
41:04But for those reasons, where you are right now, I'm sorry.
41:09I'm out.
41:10I don't disagree with the licensing option.
41:13It's just that we cannot see that as our first step.
41:16No, I agree with you.
41:17What do you guys need?
41:18What we need, in terms of my background, I manage multi-million dollar programs every day.
41:23And I can go from need, design, production, everything.
41:28What we need is someone to mentor us, not to do the work for us.
41:32That's what we're here for.
41:33Cool.
41:33Okay, you guys ask for $200,000 for 10%.
41:37I'll do the $200,000 for 20%.
41:41Okay.
41:42Come on.
41:43That's a very good set.
41:44Come on.
41:44Thank you.
41:45Would you be willing to counter?
41:47No.
41:50Guys, you're getting Cuban.
41:51Come on.
41:54Mr. Cuban, welcome to the Doctor's Club.
41:56Yay!
41:58Come on.
41:59That's a very cute guy, right?
42:01Thank you, guys.
42:02My pleasure, guys.
42:03Thank you.
42:04Thank you so much.
42:05I appreciate it, guys.
42:05Thank you.
42:05Thank you.
42:10Now that Mark Cuban is part of our team, I can transition from the day job that I have
42:16to doing the business full time, and I can work with my business partner, my son, and
42:21my best friend.
42:27Thank you.
42:28Thank you.
42:35Thank you.
42:57Thank you.
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