カテゴリ
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テレビトランスクリプション
00:00Tonight on Shark Tank.
00:02Sharks, this is sport fashion.
00:04We are betting on the passion people have for sports.
00:08I was raised by a single mom who instilled the confidence in us to go after our dreams.
00:13What are your sales?
00:14$30,000.
00:15What?
00:16Okay!
00:17It's a brutally competitive space.
00:19I could have told you that.
00:20Duh.
00:20Hello.
00:21It's just not right.
00:30First in the tank is a company for an underserved customer.
00:42Hey, Sharks.
00:44My name is Cora, and this is my husband, Stefan, and we're from Atlanta, Georgia.
00:48We're seeking $225,000 for 2.5% equity in our company, Young King Hair Care.
00:54Wow.
00:55Sharks, did you know that?
00:56Uh, uh, excuse me, Sharks.
01:00It sounds like we may be getting a video call in.
01:03Hey, Sharks.
01:04I'm the real shark here.
01:06I'll let my parents handle it.
01:08I gotta take that.
01:10I gotta take a car.
01:12Bye!
01:15Well, Sharks, that's our son and chief inspiration officer, Cade.
01:19And as you can see, he's the one that really runs the show.
01:22We actually started this company because of him.
01:24Cade was born with a head full of hair.
01:27And we quickly realized that we needed to help style this hair because there was no plant-based,
01:32natural, or clean hair care products that were specifically crafted with young men with textured hair.
01:36So, we created Young King Hair Care.
01:39The first.
01:40The first.
01:41The fastest.
01:41The fastest.
01:42Growing, multicultural brand for young men.
01:44We currently offer five natural hair care products that promote textured hair health and growth
01:49and provide a simple regimen to make it easy for both parents and their sons to care for their hair.
01:54So, Sharks, if you believe multicultural boys deserve high-quality products really tailored for their needs,
02:00please join us on the journey of redefining male grooming by focusing on the next generation.
02:05We are Young King Hair Care.
02:07Very nice.
02:08Sharks, you'll see that you have samples in front of you for you guys to be able to try out.
02:11Can you tell us a little bit about yourselves?
02:12Yeah, absolutely.
02:14I was raised by a single mom who provided for me and my sister and instilled the confidence in us to go after our dreams.
02:21My sister went on to be a physician, and I actually worked my way up the corporate ladder
02:25and was a VP at one of the largest healthcare companies in the globe.
02:29When I had my son, as you saw, he had so much hair, and I was looking for products that I felt really reflected him as a young man of color.
02:39And so it just bothered me that I didn't find anything like that that existed.
02:43And my husband actually did a little mini Shark Tank with me.
02:48And I pitched to him, and he was like, yeah, you're on to something.
02:52And I was like, I could have told you that.
02:53Duh.
02:55And, Stephon, are you in the business?
02:57I am in the business.
02:58So my entire career has been within marketing.
03:00I have worked on some of the most iconic brands that you guys know.
03:03So working at General Mills, working on Nature Valley and Fiber One and Progresso,
03:07working at Coca-Cola where I ran Sprite for North America.
03:10Wow.
03:11Do you have any competition?
03:12So we have competition in terms of there being other textured kids' hair care brands.
03:17There are not a lot of products out there that focus on plant-based, natural, clean ingredients.
03:22But there are none focused on boys at all.
03:24Damon, when you were a little Damon, just a little baby Damon.
03:27We both had hair.
03:28We had a lot of hair.
03:30What did you use for your hair?
03:32You know, back then, it was either super natural or you generally just didn't care.
03:36We didn't have a lot of information back then.
03:38When we walked down an aisle, and I haven't been down that hair care aisle in a long time,
03:42and I walked back down, it hadn't changed in 15 and 20 years.
03:46There was nothing else.
03:46There was nothing but pinks and oranges.
03:48There wasn't anything that spoke to our son.
03:50It spoke to boys.
03:52I'm dying to ask.
03:54$225,000 for 2.5%.
03:56You got to have big sales.
03:59You guys like sales.
04:00So let's talk about $4,100.
04:03That's it?
04:04What?
04:04In our first year of sales.
04:06Oh, okay.
04:07And that was 2019.
04:08Okay.
04:09So then, obviously, we know a little thing called COVID kind of impacted the business.
04:13So we finished the year in 2020 at $362,000.
04:17Good for you.
04:17That's a good increase.
04:18That is growth.
04:19Yep.
04:19So far in 2021, we've been okay.
04:23Okay.
04:23We have okay.
04:24Okay.
04:25Okay.
04:25And we're on track to deliver $3 million so far this year.
04:36Did you make any money?
04:37You're going to do $3 million this year?
04:39That is correct.
04:41Are you making any money?
04:42Are we making any money?
04:43Now, we're not profitable yet.
04:45Oh!
04:46We're not profitable yet, but we've got a path to that.
04:48What's your average selling price across the line, and what's your average cost of good
04:52across the line?
04:52Our costs come in at about $235,000 to $350,000, depending on the skew.
04:56For wholesale, we actually sell that between $6,000 and $6,500,000 to them.
04:59And then on DTC, we sell up to $14,000.
05:02So where did the money go?
05:04Obviously, as a new brand, we had to drive brand awareness, right?
05:06So about 70% of our expenses go towards marketing.
05:09Wow.
05:10That's the problem.
05:11Yeah, that's the problem.
05:11So it's really high.
05:12But we had to introduce a new brand to an audience that didn't know about us.
05:15How much money or how much did you raise or borrow, and how much of the company do you
05:21own?
05:22So we raised $1.6 million.
05:24Hello.
05:25Wow.
05:26We raised $1.6 million.
05:28Now I know why you're bald.
05:29Let's go.
05:30On a convertible note that closed in March, and that was our seed round.
05:35Listen, I think you are right on the right trend.
05:38I definitely think you should put these gorgeous young men, your son's faces, on here.
05:43Because my biggest marketing thing is you should look at a quick glance and know what something
05:47is like that.
05:48And know what the brand is.
05:49But I feel this is a super competitive space.
05:52So I have concern for you in really growing it to be something enormous.
05:57It's just not the right investment for me at this time.
06:00I'm out.
06:03Thank you, Larry.
06:03I see the need for the product.
06:05You got investors.
06:06You have a responsibility.
06:07I understand asking for 2.5, but I can't get behind that for 2.5 shares.
06:13What can't you get behind, Damon?
06:14Huh?
06:14What can't you get behind?
06:15Ooh.
06:24One shark is out.
06:25Damon likes Cora and Stefan's hair care brand marketed to boys with textured hair, Young King.
06:31But he's concerned about the high valuation and small stake they came in offering.
06:36It's not about what I would want in one of these situations.
06:39Because a lot of things that we take in consideration, you offer me 2.5.
06:43I can't.
06:43It's an insult to go to 15 and 20 and all that kind of stuff.
06:46It's just not right.
06:48But what would you do?
06:49It doesn't feel good.
06:49What would you do?
06:50Yeah.
06:50I would say I'm out.
06:52Ah.
06:53Okay.
06:53Out of respect.
06:54All right.
06:54You know, it's obvious you came from a big company, because you market like a big company.
07:00Yeah.
07:00And that's tough when you step into an entrepreneurial environment.
07:03Yeah.
07:03Branding as a small entrepreneurial company is a completely different effort.
07:08And I'm not sure that you're going to be able to accomplish that.
07:13And I'm not sure that, you know, I'm a lean and mean, work your way through type guy.
07:17So I don't know if we'd be a fit.
07:18So for those reasons, I'm out.
07:20Okay.
07:21I got to tell you, amazing product.
07:23I believe in you.
07:26I believe in the future.
07:28I just don't understand the narrow niche aspect of it.
07:33Like, what I was hoping was, you were going to build a representative brand to take on all those products.
07:41So we are.
07:42So we are.
07:42We have to start somewhere.
07:43Yes, exactly.
07:44Our goal is to create holistic solutions from very early on, baby, all the way up until their team.
07:51Here's my challenge.
07:52You have a lot of...
07:53We're growing.
07:53We've got skin care that's actually launching.
07:56I wish you had all that.
07:57But at, you know, to Damon's point, what, at 2.5%, what am I going to ask for 3.1?
08:02And we're going to negotiate at 2.7, 2.9?
08:05I can't get there at the 2.5%.
08:08I wish you all the best.
08:09I mean, honestly, two of the most impressive people I've ever seen on that carpet.
08:15Congratulations.
08:17So I'll tell you guys, and I know one of the things that's important and one of the things that we teach our son, Kay, right, is the word can't, right?
08:25Can't is not in your vocabulary.
08:27And I understand, and I understand where you guys come from.
08:31We came here not to just be here, right, but to find and leverage your expertise to really help us grow.
08:36Is there any flexibility we're, you know, we're open to if it's a line of credit?
08:41Is there any debt vehicles that people might want to be interested in?
08:43Because we'd love to partner, because, again, we're still growing for the future, and we have a lot of runaway.
08:47Did I hear the word royalty?
08:50Actually, no.
08:51I don't think he said it.
08:52I thought I heard it.
08:53I thought I heard royalty.
08:54Yeah.
08:55I don't think he said royalty at all, actually.
08:57I don't know where that came from.
08:59It says young king.
09:01A king is royalty.
09:02That's what it is.
09:04Young king, royalty.
09:05Royalty, yes.
09:06You know, what I like about this, it has sales.
09:12Yeah.
09:13A lot of sales.
09:14And when there's sales, sometimes my hair starts to grow back.
09:18Because it can support a royalty.
09:22My favorite structure, as you know, you have the margins.
09:25I would give you the $225,000 for a dollar askew until I get back to $225,000, and then it drops to $0.50 in perpetuity.
09:36Kevin, what you're saying is, this is forever.
09:40So when Kay has kids, his kids will be paying their rent.
09:44I don't have any equity, so why would I do it any other way?
09:47Kay does sound like he's going to be working for Mr. Wonderful.
09:49Right.
09:49I'm not sure if Kay's not enough for that.
09:53I'm the only shark that believes in you.
09:57I just don't know that that makes sense for us.
10:01I love you guys.
10:02I love you guys.
10:03All right.
10:03I know you're not going to do that deal.
10:04I'll give you an offer.
10:05I think royalties are tough because someone's going to buy you.
10:09Yeah.
10:09But I'll do it for $0.50 until I get a 2x return on the money I give you.
10:16So I'm going to give you $225,000.
10:18When you pay me back $450,000, the royalty stops.
10:23I want a 5% equity that converts if the company gets sold.
10:29So I help you now, and if you grow, I convert to 5%.
10:35You know what?
10:36That's going to be much more expensive than my royalty.
10:38If you sell this business one day...
10:40It's much more expensive.
10:41If you sell this business one day for $500 million, you pay way more to him.
10:45You know what?
10:46If you sell the business for $500 million, you don't care.
10:49That's the key.
10:50I like that deal.
10:50He is driving you into the ground.
10:53That's a huge mistake.
10:54This is the balance between equity and royalties.
10:57It's a great lesson.
11:01Go ahead.
11:02You know, Stefan, I can't read lips.
11:03So you don't have to do that.
11:05We're going back.
11:06I appreciate it.
11:06I think, first and foremost, both Mr. Wonderful and Robert, I appreciate y'all.
11:10Our issue is cash flow, and because we're spending so much in other places,
11:15so royalty is a little difficult for us, for both of you guys.
11:18So respectfully, I don't think that we're going to be able to take a royalty offer.
11:20Good for you.
11:21Way to stick to your guns.
11:22Good for you guys.
11:22Well, we thank you guys.
11:24Congratulations, guys.
11:25Take care.
11:27We built this from the beginning from just us.
11:29I mean, we built it for our son, Kay, and I think that's the thing that we think about.
11:32We're doing everything for him.
11:34So, you know, we'll be back, hopefully.
11:36We'll be back, and then, you know, you'll see and hear young King for a while.
11:40You'll still hear young King.
11:41What you did there was sneak in a 5% of the exit price,
11:45which may ultimately cost them way more than 50 cents a bottle.
11:49You are sucking so much cash out of that.
11:51I can't believe the savagery, the greed you exposed them to.
11:54I can't believe it.
11:55I'm shocked.
12:00In season 12, we watched Michelle Jimenez-Megiotto and Andrea Megiotto make a deal with Lori Greiner for their gourmet snack, the pizza cupcake.
12:09This is delicious.
12:11You got to do it.
12:12Yes!
12:13Let's see what they're up to now.
12:15When the pandemic hit in New York City, everything shut down, and it brought our business down to $0 in revenue.
12:21But then we got the call to go on Shark Tank, which really saved our business and gave us the opportunity to share the pizza cupcake with the world.
12:29Prior to Shark Tank, our sales were around $300,000.
12:32And now, 10 months later, we've generated $3.2 million in sales.
12:38The pizza cupcake is now available in Whole Foods, Wegmans, Fresh Direct, and many other national retail chains.
12:46And now we expand it to five fulfillment centers that can allow the pizza cupcake to be shipped nationwide.
12:51Your appearance on The Ellen Show generated $100,000 in revenue.
12:56Pizza cupcake is the dream product for an entrepreneur and investor, and Michelle and Andrea are the dream partners.
13:03We're going into major grocery retail chains, and we just did a couple of major TV appearances.
13:09I really believe that this is just the start of when we get these nationwide in every grocery store.
13:15So all I would say is keep being who you are, and let's get that gold together.
13:22As an entrepreneur, you will be tested over and over again.
13:26And it is your resilience, integrity, and your great relationships that will be the thing that will continue to push you forward.
13:33Our advice to entrepreneurs is to find something that you love, do it with the person you love, and you will be unstoppable.
13:45Next up is a solution for one of a dog's biggest anxieties.
14:04Hi, Sharks. My name is Kirsten Brand, and this is Emma Brand.
14:08And we're here seeking investment of $150,000 for 10% of our company, Ponix.
14:14Now, Sharks, we love to celebrate.
14:18We love weddings, sporting events, New Year's Eve, and in America, we especially love the 4th of July.
14:25And do you know how we love to celebrate these events?
14:28You guessed it, with fireworks.
14:30But you know who doesn't love fireworks?
14:33Emma.
14:34They are not high on her favorite things at all.
14:37She, like millions of dogs around the world, is scared of thunderstorms and fireworks.
14:41So much so, that in 2017, during a fireworks celebration in Petoskey, Michigan, she busted out of her confines and ran away.
14:50Luckily, I got her back.
14:52But others aren't so lucky.
14:55So I set out to find a solution, and what I found is that there's not one single solution that all dog owners can rely on.
15:01So, we invented Ponix, noise-canceling headphones for dogs.
15:07Each pair of Ponix is made with active and passive noise-canceling technology.
15:16Oh, my God!
15:18Our system protects and counter-conditions our fur babies from the loud noises that also have the potential to damage their hearing.
15:27Ponix is a necessity for dog owners, especially ones that have dogs that are scared of loud noises.
15:33Emma and I have just begun, and we've already helped many dogs, and we're looking to help them all.
15:38So, Sharks, who's ready to join us and help other dogs tune out the loud, scary noises that scare them the most?
15:46So, Kirsten, can I ask you, when a dog is first strapped into the Ponix, do they freak out?
15:53Because I would think they really cherish their sense of hearing.
15:56Some of them do.
15:57You're right.
15:58Their sense of hearing is so much more sensitive than ours.
16:01So, we always encourage our pet parents to do a lot of treating beforehand so that they get accustomed to the headset
16:08and they don't associate the headset with the actual loud noises, and we can do a lot of counter-conditioning.
16:14How long did it take you to get Emma to let you strap this on her head?
16:17So, Emma being the muse for it and the guinea pig, she went through a lot of iterations of how this was going to work
16:24and how it was going to fit on her head, and so you can see she's...
16:27She's giving up!
16:29Kirsten, she's giving up!
16:30So, I'm going to let her be a little more comfortable.
16:33Woo!
16:33Does it play music or a sound?
16:35There's a whole chipset with the active technology that takes the sound in, converts it to a wavelength,
16:41flips it 180 degrees, and plays it back out to then counteract the original sound as it comes into your...
16:46That's how all noise-canceling works, though, right?
16:48Exactly.
16:48So, we have this state-of-the-art chip that is the same as the humans,
16:51and we scientifically and software tailor it to the loud noises that scare them the most.
16:56How tight do you need to put it on before they obviously try to take it off by themselves?
16:59Yeah, so we have the four different sizes,
17:01and we also will do custom fits because not all dogs' ears are in the same place.
17:06So, tell us what happens if a dog is hearing fireworks, really loud sounds.
17:11Does it actually really hurt them?
17:13Yes, they hear more than we do, and they hear it further away, so they're alerting us most of the time.
17:18But what also is going on is that they're having a stressful reaction, and just like us,
17:22they're releasing cortisol into their system, which then, over time, also intensifies the noise,
17:28so that it's a vicious cycle where they've conditioned themselves that since the noise is loud,
17:31then they're more scared.
17:33Tell us about you.
17:34What's your background?
17:35So, I was in the pet industry at Mars Pet Care doing research and development for the last nine years,
17:39so from a consumer side, I not only am a client, right?
17:42So, you have a ton of experience in this.
17:44Yes.
17:44What does it sell for?
17:45What does it cost you?
17:46It is $199 direct-to-consumer on our e-commerce site, and landed, it's $108.
17:52Oh, so you don't have tons of margins.
17:53Currently, I am buying all minimum order quantities,
17:56and I know we have a lot of room to bring down all the costs and increase the margins.
17:59So, why don't you sell it for more?
18:01I think $200 for doggie headphones are expensive.
18:04Yeah, but you've got to be able to afford it in the first place.
18:06It's not cheap no matter how you look at it, right?
18:08Yes.
18:08So, we wanted to start with a reasonable price point and get a minimum viable product out there.
18:13I have ideas.
18:14How long have you been selling?
18:15We're about a year in.
18:17And how much have you sold?
18:18$106,000 in sales.
18:19Okay.
18:19Wow, that's not bad.
18:20On your website, do I actually get some video of dogs that are now, you know, custom, like, is it Emma?
18:26Yeah.
18:27I mean, Emma's now used to that thing.
18:29Emma hates it.
18:30I guess the drugs are wearing off.
18:32This is so cute.
18:34She wants to know what's going on.
18:37I'm free, I'm free.
18:38Oh, she's hurt?
18:39What's wrong?
18:39She's 15 years old, and with that comes some ailments, like a little arthritis, but she's doing fine.
18:44She looks good for her age.
18:45I think she does, and absolutely adorable.
18:47Well, I mean, the credibility of it, I know, like, they're joking and all of that, but technically, I know, because there's other products on the market that are to calm dogs.
18:58Yes.
18:58So, I think that there's credibility in this.
19:01I just don't know the price point is what sticks me, because people might shy away from it because it's just too costly.
19:09Yes.
19:10So, at $1.99, we found that people then see that it's credible.
19:14So, as an engineer, you know, I wanted to throw the kitchen sink at it, too, which was going to make it very costly.
19:20But this also gives us a runway for a pipeline to have a 2.0 and a 3.0.
19:25Pearson, I love animals.
19:27I love dogs, especially.
19:29Emma is beautiful.
19:30I think the padding alone could work.
19:33I think if you sold this for $30 to $40, it would open up your market.
19:38I think at the price point, the noise canceling, you're a niche of a niche of a niche of a market.
19:44I don't see it.
19:45I'm out.
19:46Okay.
19:47Emma, I think your background fits this perfectly, and I think that this, honestly, this looks so cute on.
19:54I could totally see this just being passed on social media just for how adorable it is.
19:59But I don't know that you need to have the electronics in it.
20:03If your price point was something like $29, you'd sell thousands and thousands of them.
20:09And so, for me, just because where it's at right now, I just have a different vision for it.
20:15I'm out.
20:17That's okay.
20:18You may come back in, though.
20:19I think the trying to explain this in an easy way will be challenging from a marketing standpoint.
20:27I just don't think it's for me.
20:29I'm out.
20:31Okay.
20:31Fair enough.
20:32Emma, I look for three things in a product.
20:33One, is it unique and differentiated?
20:36Yes.
20:36That it is.
20:36Yes.
20:37Two, can the entrepreneur and founder sell it?
20:39You can.
20:40But the third part is I have to be able to sell it and be excited about it.
20:44And it's just not in my wheelhouse, so for those reasons, I'm out.
20:48Okay.
20:49So, when I actually saw it and you came in here, I thought, okay, this is a joke.
20:53It's funny.
20:54But you're serious.
20:55Yes.
20:56And I believe you as an engineer.
20:59I get it.
21:00I just don't need doggy headphones in my portfolio now.
21:03It's just not for me.
21:04I'm out.
21:06Okay.
21:07All right.
21:07Well, thank you.
21:08Emma, we're going to miss you.
21:10Well, thank you, everyone.
21:11Good luck.
21:14You did good out there.
21:16You tried to help me sell it.
21:18Baby, it's not for everybody.
21:20We're going to take into consideration all the feedback, and we're going to come back stronger than ever.
21:23Next in the tank is a business based on an ancient treat.
21:48Hi, Sharks.
21:49My name is Diana Gerard.
21:51I'm originally from Damascus, Syria, and I'm here seeking $150,000 in exchange for 10% equity in my company.
21:59Growing up in the Middle East, my beautiful homeland had everything to offer under the sun, including a sweet and indulgent treat.
22:06All you had to do was pick it from a palm tree.
22:09Sharks.
22:10I'm talking about the date fruit.
22:13These sweet, resilient, and wrinkly treats nourished my body and spirit with each and every single bite.
22:19And that's how Magic Dates was born.
22:22We've taken divine dates and blended them with crunchy walnuts, cacao nibs, coconut, and get this.
22:28We covered them in rich, 100% dark chocolate.
22:33And when it comes to our satiating treats, you can say no to added sugars, no to dairy, no to gluten, and yes to real, whole, flavorful foods.
22:42Sharks, I'm on a mission to bring my homeland's ancient secret ingredient to the world.
22:48So, will you join me on a magic journey with Magic Dates?
22:51In front of you are delicious treats to try for yourselves and nourish your bodies, or as we say back home, sahtayn.
23:00Which is the most popular?
23:01So, the triple chocolate crunch.
23:03That's the one I went right for first.
23:05Of course.
23:06Chocolate on chocolate on chocolate.
23:08Coconut's good.
23:09Oh, wow.
23:10The lush lemon one is fantastic.
23:12Oh, that's one of my favorites.
23:13I like the triple chocolate.
23:15Diana, how many calories?
23:16So, in our original line that's not covered in chocolate, per serving that's two bites is 100 calories, and the chocolate-covered variety is 120 calories.
23:22Is that a lot?
23:23That sounds like a lot.
23:25So, here's the thing.
23:26Nutrient density is about a lot more than just calories.
23:29These are no added sugar, and they're choked full of fiber, which we are a fiber-deficient country.
23:33And in just one serving of Magic Dates, you're getting 15% to 20% of the daily recommended value of fiber.
23:40How did you get into this business?
23:41I have a bit of a path, but I'll start at the end for you, Mark, because the point of inspiration for me
23:46was actually one of your entrepreneurs.
23:47So, several years ago, before I started Magic Dates, I had taken my L side.
23:50I was on my way to law school, and a friend of mine approached me to help him help an entrepreneur
23:56come up with a vegan recipe for her paleo ice cream sandwich company.
23:59Frankie?
24:00Frankie.
24:01Yeah.
24:01And Diana, just real quick so everybody knows.
24:03Yeah.
24:03Frankie came on two seasons ago with Coconut Girl, which were these amazing ice cream sandwiches
24:09that were healthy for you, and so she's doing great.
24:11We just sold part of the company.
24:13She's doing so well.
24:14That's incredible.
24:14So, I met Frankie.
24:16I went to her kitchen.
24:16I told my friend, you have me for a couple of months.
24:18I'm applying to law school.
24:19I'm going to study international human rights law, and I just fell in love with this.
24:23It was like a whole new world had opened up to me, and, you know, going back a little
24:27bit further, when I moved on my own to L.A. when I was 19, food became a connector for
24:32me.
24:33I learned how to make all my mom's best Arabic food recipes, and I would invite friends
24:37over, and that's how I would connect with them, and that's my intention with Magic Dates.
24:40And really, Dates are the perfect vehicle, because as you may know, they have a history
24:45in the Middle East of thousands of years of cultivation, and they came here just 100
24:49years ago.
24:50An agriculture explorer brought 11 shoots from Morocco, and they thrived in Coachella Valley
24:55because it was so hot and dry, and that's why we have 95% of the crop being grown here
25:00in California.
25:01You learn something new on Shark Tank every day.
25:03Give us an idea of what's going on in distribution, sales, margins, etc.
25:07Yeah.
25:07So it was a completely grassroots effort.
25:09I launched at the farmer's market, and in 2018, I got into the first 30 doors here in
25:15L.A.
25:15And what were sales in 2018?
25:17So in 2018, $30,000.
25:19And then in 2019, we did $100,000.
25:21And then 2020, we did $136,000.
25:24Yeah.
25:24So that was up 30%.
25:26This is all retail at this point?
25:28This is all retail.
25:29There's nothing direct to consumer?
25:31We did very little direct to consumer because I was just not focusing my resources.
25:35And Dana, this year, what are you tracking at?
25:37This year, we're projecting to close at $175,000.
25:41That's interesting.
25:42Dana, what do these cost?
25:43You never told us what they sell for and what they cost.
25:45So the cost out of the manufacturer out the door landed is $1.60, and they retail between
25:50$4.99, and $5.99.
25:52Oh, your margins are great.
25:53Yeah, we have 42% to 48% margins.
25:55Right.
25:55And we are focusing more on direct to consumer now.
25:58And what I'd like to share with you, I think this would be a good time to reveal a bit
26:01of a secret.
26:02What are you holding back?
26:04We have been marketing under a different look.
26:08Would you like to see it?
26:08Sure.
26:09Do you care?
26:10Sorry, these are the old.
26:11No, these are the new.
26:12Okay.
26:13I'm going to show you the old now.
26:14These are the Glangary bags.
26:14Ah.
26:15All right, let's see the old.
26:20I realized that with our old branding and packaging and messaging, we weren't quite
26:25hitting the values.
26:25So you upgraded your packaging, and is it proven to give you better sell-through?
26:30You're literally the first people to be holding it in your hands.
26:32I actually like this packaging better.
26:34You see what it is.
26:36It's light.
26:37And Magic Dates pops really well.
26:40I agree with Lori.
26:41I like the old packaging better for the same reasons.
26:44Okay.
26:44But when you change packaging, it's never an indication that sales are booming, right?
26:49It's an indication, like, okay, they're not where we want them to be.
26:51Let's try to do something.
26:53Yeah.
26:53Right?
26:54And so while I think it's a good product, there is just not that one thing that's in
26:59the headline that just says, I have to try these.
27:01So for those reasons, I'm out.
27:03Okay.
27:03Thank you, man.
27:03So good luck and congratulations.
27:04I appreciate it.
27:05Thank you so much.
27:06Yeah, Diana, you're definitely on trend.
27:08But as an investor, I don't see the growth or the early hit.
27:14I don't see the catalyst right now.
27:16I'm out.
27:18Dates are really not my space.
27:20It's just not something for me at the moment.
27:21I'm out.
27:22Thank you, Damon.
27:22Appreciate it.
27:23You know, Diana, you gave up international human rights law.
27:27That is something so needed and so important.
27:30And in this arena, there's tons of date-like products and treats.
27:35I've seen lots of them.
27:37If it were me, I would say I think the other career path is something that was really just
27:45so important and something you'd be so great at.
27:48Lori Grenier is saying to walk away from your business and take it out behind the barn?
27:54Honestly, I honestly am saying go with your passions.
27:58Do what you want.
27:59But I feel because this is such a crowded space, I'm sorry.
28:03I'm out.
28:04Thank you, Lori.
28:05I really respect your feedback.
28:07Diana, it's very impressive.
28:08Your passion is clear.
28:10Obviously, I have a similar background, being half Lebanese.
28:15I'm very familiar with the region.
28:17And you're very impressive.
28:19I'm sorry, but I'm underwhelmed with the sales.
28:22I was actually sitting on the fence trying to figure this one out.
28:25We've been at Whole Foods for almost over a year now.
28:27And it moves really well there.
28:28I've reshifted Focus this year.
28:30So instead of going out to get more retail accounts, I wanted to approach the digital
28:34marketing and e-farmers space.
28:35I get it.
28:35But this is such a tough slog.
28:37I mean, I love your story on e-dates.
28:39I understand the merits of them.
28:40I get it.
28:41Yeah.
28:41I'm just having a real hard time with it.
28:43You know, I'm going to make you an offer of commencement with the risk.
28:47$150,000 for 33 and a third.
28:50It's like a third of the business.
28:51Yeah.
28:51That's actually not horrible.
28:52That's not a bad offer.
28:54I don't want to give up a third of my company.
28:55I came in here.
28:55I'm like, don't give up a third of your company.
28:57Because the thing is, I have to also value what I know I can do.
29:00And I know that that's not something you may see yet.
29:02I do.
29:03I'm sorry.
29:04Look, it has to be, you know, at the end of the day, I got to go to work.
29:07This is a brutally competitive space.
29:10Dates are a commodity.
29:11Yeah.
29:11It's tough.
29:12It's really tough.
29:13Well, it's a commodity, but there are new ways to represent them.
29:15Nobody has covered dates in 100% dark chocolate.
29:18They have an offer.
29:19Would you do $150,000 for 20%?
29:22No.
29:23Would you meet me at all in the middle?
29:25No.
29:26You're completely from a 33%.
29:2833 and a third.
29:29And a third.
29:30One third.
29:32Oh, that's really tough.
29:33I really cannot give up that much of my company.
29:35Because, again, I believe in my...
29:36Sure you can.
29:36You can just say yes.
29:37You really have to think this through.
29:38You don't have a great story on revenue, okay?
29:40I'm sorry I'm telling you the truth.
29:42I agree.
29:42I agree.
29:43I can see that.
29:44And so, you know, this is a flyer for me, and I'm willing to help you out, and I'm willing
29:47to get behind it.
29:48I do not put my name on deals to fail, okay?
29:51I don't do that.
29:52And I'm not going to be flexible in terms of what I want.
29:54I want a 33 and a third.
29:56You're going to help us blow it up, Mr. Wonderful?
29:57No, I'm going to help you fail after I give you $150,000.
30:01Of course I'm going to do that.
30:02Okay.
30:03Okay.
30:04Yes?
30:05Yeah, let's friggin' do it.
30:05You have a deal.
30:06Good job, Diana.
30:08Oh, my God!
30:09Don't make me regret this.
30:10Okay.
30:11Can we hug?
30:12Don't make me regret this.
30:14Awesome, Diana.
30:15I appreciate you.
30:15Let's do it.
30:17Great movie.
30:17Thank you so much all for your feedback and time.
30:19I appreciate you.
30:20Take care.
30:21Good luck.
30:21Bye.
30:21Bye.
30:22Congratulations.
30:23Oh, Mr. Wonderful's incredible.
30:25I think 70% of something big is better than 100% of something really, really small.
30:30And I want to work with Mr. Wonderful.
30:31He was my number two choice.
30:33But he's my number one now.
30:35Don't show him this.
30:47Next up is a brand that merges art and sports.
30:51Hi, Sharks.
31:00My name is Jasmine Maeda, founder and CEO of Round 21.
31:04I'm seeking $250,000 for 3% of the business.
31:09Wow.
31:09Sharks, sports is a universal language.
31:12It communicates emotions and beliefs, style, and creativity.
31:17Athletes now use their voices as a platform for what they believe, putting an end to the
31:22idea that they should just shut up and play.
31:25This is why I created Round 21.
31:28We partner with an awesome group of creators, athletes, artists, and tastemakers to unlock
31:34sport as a canvas.
31:36We extend and promote creativity through digital sporting goods as well, through viral NFT
31:41collaborations that extend their digital engagement, the digi, with our physical sporting goods,
31:48the fizzy, a business model we call Digi-fizzy.
31:52We've launched across four sports, have a pipeline of artists, athletes, and tastemakers, and a
31:58growing community aligned to our mission of making standing out the new standard in sports.
32:04So, Sharks, we think it's time you feel free to play with the art.
32:08We've hand-picked products for each of you.
32:13Robert, we gave you a soccer ball that will continue to promote creativity on the pitch.
32:19Lori, a ping-pong paddle, YOLO, You Only Live Once, what you inspire in every entrepreneur
32:25who's chasing their dreams.
32:27Mr. Wonderful, a football.
32:28Anyone chasing greatness would appreciate.
32:31Beautiful.
32:32Damon, a sports product that is symbolizing how sport is also a platform for social justice.
32:39And, Mark, for you, we have a performance basketball that symbolizes five players on the court coming
32:44together for a greater good.
32:46But in addition, we also have a digital NFT basketball inspired by your unique background
32:52through color and symbolism that acts as membership to Round 21.
32:56Nice.
32:57An NFT, so everybody knows, NFT stands for non-fungible token.
33:01It's a completely unique digital file.
33:04It can be bought and sold like any collectible.
33:06Effectively, it's a digital version of a piece of art.
33:09That's cool.
33:10Yeah.
33:11So, Round 21's NFTs act as two things for our community.
33:15It acts as your social brand, and it acts as membership to Round 21.
33:20And what that gives you is access to early product drops, physical events that we're
33:25launching.
33:25Jasmine, are you selling NFTs today?
33:27We are.
33:28Or are you selling physical products?
33:29Both.
33:30Got it.
33:30Can you walk me through a typical sale?
33:33And maybe put from the perspective of an actual athlete.
33:36Let's say Mr. Wonderful is a rock star athlete, which I am.
33:38Obviously.
33:39I come to you, Jasmine.
33:41I say, okay, I want to make a statement about entrepreneurship.
33:44I'm an athlete.
33:46I got a million followers.
33:47What happens?
33:48We bring in artists from the outside.
33:50How do you split the revenue between you, the artist, and the athlete?
33:54This basketball, as an example, is $15 to make, and we sell it for $59.99 retail.
34:01The artist gets two options.
34:03They either get a flat fee up front, or they get 10% share in revenue of every unit sold.
34:08And so can you walk us through your overall revenue?
34:11How much have you sold in physical goods and NFT?
34:14Yeah, so I've sold $354,000 life to date, which is 15 months of physical goods.
34:20Units or dollars?
34:21Sorry, that's dollars.
34:22Okay.
34:23And how much is NFTs on top of the $354,000?
34:26Right now, the NFTs are growing into $20,000 of our total revenue.
34:31That's above and beyond the $354,000.
34:33So it's small?
34:34It's very small.
34:34Very small.
34:35So tell us about you.
34:36How did you come up with this in the first place?
34:38So I have to go back to my roots.
34:41I'm born and raised in small-town Oklahoma, two parents from India, where being different
34:46sometimes meant you didn't belong.
34:48And I found who I was through basketball.
34:51I played in high school.
34:52I played overseas.
34:53And then I coached at the collegiate and high school level.
34:55I then transitioned to the marketing side of sports, which led me to marketing leadership
35:01roles at Reebok, Hasbro, Under Armour.
35:05I led marketing for six years, and most recently was vice president of a brand at Peloton.
35:09Wow.
35:10What are your sales year to date?
35:12We're on track.
35:13Our run rate is $510,000.
35:15How much are you going to make on that?
35:17We're currently at a gross profit level, $73,000.
35:21Gross profit or net profit?
35:22Gross profit at the product level.
35:23Netting, we are not profitable as a company.
35:25So how much are you burning?
35:27We're burning about $10,000 a month right now.
35:29How much money have you raised?
35:31So I just closed around at $1.39 million.
35:35I raised on a safe at a $6.25 post money.
35:38What are the terms of your safe?
35:40$6.25 post money safe.
35:42Standard Y Combinator safe.
35:44You know, I think you are so impressive and so spot on.
35:48And as far as an investment for me, I think that some of my fellow sharks might be a better
35:53partner for you because they know more about sports than I do.
35:57For those reasons, I think I will go out because I think you'll have even someone stronger to
36:02help support you.
36:05Jasmine, I have a huge amount of respect for your background.
36:08Really, really impressive.
36:09And what a unique business model.
36:13Is it going to work?
36:14I don't know, but the road to revenue is not clear for me.
36:19Before you go out, before you go out, I want to talk about our strategic partnerships at
36:23the wholesale level for volume.
36:25Yeah.
36:25Jasmine, I'm not your guy for this.
36:27I'm sorry.
36:28I'm out.
36:30Okay.
36:31You're the real deal.
36:32I think NFTs are going to be around forever.
36:34Everybody's going to own one, but I'm trying to educate myself still on them.
36:38And at a buy-in price of $250,000, I'll be giving you that for tuition.
36:43I wouldn't add any value at this moment.
36:45It's a little too early for me to get a full grasp.
36:49Damon, we are betting on the passion people have for sports.
36:53The revenue is rooted in physicals.
36:56The NFT is upside.
36:57It's in the physicals.
36:57This is sport fashion.
36:59This is absolutely self-expression.
37:01And the NFT part is the really attractive part, but I don't know enough about it, so
37:07I'm out.
37:10Jasmine, why aren't your sales higher?
37:12We actually are on our third PO with the largest sporting goods retailer in America.
37:17They want to co-create product with us in 2022 and beyond.
37:21They also have an open order for next year that just came in this morning of $100,000.
37:27But see, but those numbers aren't big enough to scale, particularly with your valuation.
37:30Look, we do some of this stuff with the Mavs.
37:32I do a lot of stuff with unlocking NFTs.
37:35It'd be somewhat competitive, and so for those reasons, I'm out.
37:39Okay, Jasmine.
37:40The sporty shark is left.
37:43I own the domain for NFT.
37:45I own the URL.
37:46I've built a business around it with lots of partners.
37:48We have reserved all the S&P 500 companies.
37:51And so that part fits with what I'm doing and I've already invested a lot in.
37:55I'm trying to figure out how to make that work so that when you offer any athlete an NFT profile, it goes up on the website.
38:03But if you own all the 500 companies, you didn't get all their permission, are you a troll?
38:08We've reserved it for them, and they can decide to use it or not.
38:11You reserved it for them.
38:12Yeah, right?
38:12There's no score.
38:13You are witnessing a troll in real life.
38:18Look, I have those domains, and my point is I don't steal it from them.
38:22If they want to work with us, great.
38:23But I'm not going to go to work for you, Jasmine, for 3%, because your business is nascent.
38:28It's early.
38:29It's startup.
38:30You're very impressive, but I'm not doing it for 3%.
38:33Okay.
38:34Okay?
38:34That's just not enough to get me out of bed to go work for you.
38:37Give her an offer.
38:38So I'm going to make you an offer.
38:40I'm going to do the $250,000 for 15%.
38:42You've got to say yes to that.
38:45You should take that deal.
38:46You've got to.
38:47I don't have any flexibility, but basically I'm giving you a quarter of a million dollars and then going to work for you.
38:54What do you want to do?
39:06Four sharks are out.
39:07Jasmine has an offer on the table from Kevin for her physical and digital sports art company, Round 21.
39:14I'm going to do the $250,000 for 15%.
39:17Oh, you've got to say yes to that.
39:20You should take that deal.
39:21You've got to.
39:22First thing that happens is we figure out a strategy to blow you up.
39:26I'm not saying it's going to be easy, but that means I'm working for you, Jasmine.
39:29I'm working for you.
39:30I wonder if I can get a paycheck.
39:31Can I get on payroll?
39:33Like, every day I'm going to get up and work for you.
39:35You work for minimum wage because that's what he's worth.
39:37The thing is, I come in with physical supply chain.
39:39I got all that.
39:40Digital credibility.
39:40Nothing proprietary about that.
39:41I also have artist and athlete relationships.
39:44I have digital.
39:44You also have an offer.
39:45Jasmine, you can counter.
39:47I am thinking about what would be respectful.
39:49Would you do $250,000 for 5% with an advisory share and...
40:00You've got to get me to 15%.
40:02You can structure it any way you want, but I'm going to help you build this business in
40:07a very competitive space.
40:08Would you consider $250,000 for 5% with an advisory share and 1% of every NFT ever sold?
40:22Okay, so, Jasmine, you're talking about a royalty deal, and that resonates with Mr. Wonderful,
40:26okay?
40:27All of a sudden, I'm loving you more now.
40:29So, I would do this deal, okay?
40:31I'll do $250,000 for 11% and 2% of every NFT sold.
40:41At the 11%, it is a down round for my current investors.
40:48I understand, and I respect the investors, but I'm Mr. Wonderful.
40:50You knew that coming in, though, Jasmine.
40:51You knew that coming in.
40:53I know, I know.
40:54Look, I respect your investors, but I'm going to bring something they can't bring, okay?
40:57They just can't.
40:59I think the URL is very valuable for you.
41:02I think the infrastructure that I have already to build out this NFT complex for you.
41:06I literally...
41:07I know you're struggling with it.
41:08I would take the 11% deal and the 2% NFTs.
41:11I would do that if I were you.
41:12I really would.
41:13All your investors, they get a discount, right, to the next round.
41:16They do.
41:17So, if this price is at a lower amount, they actually get more of the company, right?
41:23So, you lose.
41:24I know.
41:25They don't.
41:25I know.
41:26Right?
41:26You've got to make a decision.
41:27But I'm willing to do it at 10.
41:29I don't care how many advisory shares are in that mix.
41:32And I'm at 1.5% of the NFT.
41:35Then you have a deal.
41:36He went to 10.
41:37I did go to 10.
41:42He went to 10.
41:42I understand exactly your problem.
41:43I'm giving you more, okay?
41:54Let's do it.
41:55Yay!
41:57I'm so glad you did it.
41:59That was really funny.
41:59It's still going to be tough.
42:00Thank you so much.
42:01It's still going to be tough.
42:01You know that, right?
42:02I know.
42:02I have done a lot of work to fuel what's going to be an incredible relationship.
42:08Thank you so much.
42:08You got it.
42:09Congratulations, Jasmine.
42:10Thank you, guys.
42:10Thank you so much.
42:11Appreciate it.
42:11You are going to do phenomenal.
42:15To have Mr. Wonderful come through is an incredible opportunity.
42:18With his knowledge of the crypto space, it's going to help us impact so many more people
42:25in such a bigger way.
42:48Thank you so much for joining us and we'll see you next time on the show and we'll see you next time on the show and we'll see you next time on the show and we'll see you next time on the show and we'll see you next time on the show and we'll see you next time on the show and we'll see you next time on the show and we'll see you next time on the show and we'll see you next time on the show and we'll see you next time on the show and we'll see you next time on the show and we'll see you next time on the show and we'll see you next time on the show and we'll see you next time on the show and we'll see you next time on the show and we'll see you next time on the show and we'll see you next time on the show and we'll see you next time on the show and we'll see you next time on the show and we'll see you next time on the show and we'll see you next time on the show and we'll see