All language subtitles for Shark.Tank.S12E01.720p.WEB.h264-KOGi

Since its launch...

I've made you a good offer.

What are you gonna do about it?

..."Shark Tank" has been
a champion for innovators,

inventors, and small businesses
chasing the American dream.

We don't like to give up.
We will do whatever it takes.

For me, this is
the American dream already.

And this season, in
an unprecedented collaboration,

we've innovated with
the Venetian Resort in Las Vegas

to create a protected
bubble environment

to keep our entrepreneurs,
Sharks, and crew

as safe as possible
from COVID‐19.

Three, two, rolling.

The world is
a much different place now.

Faced with a global pandemic,

many Americans
and small businesses

are struggling
to make ends meet.

Now, more than ever,
we're committed to supporting

and celebrating the best
of American business.

I got laid off due to COVID.

I looked at it as a blessing

'cause I got to work on
Go Oats full time.

I went out driving every day
to restaurants,

selling the product.
Hustle, hustle, hustle.

Cold‐calling distributors,
buyers,

trying to get
our product out there.

We are the most resourceful
people on Earth.

And tonight, Blake Mycoskie,

the founder of Toms Shoes,

who revolutionized how
a new generation does business

with his one‐for‐one
business model, joins the Tank.

I think what the customer
most cares about

is the story behind the product.

In the world today, you either
grind or you get ground up.

We believe American ingenuity...

The hottest category
in neuroscience,

transcranial electrical
stimulation.

...grit...

I sat the kids down,
I said no more eating out,

no more clothes for two years,

no more nothing.

...and determination...

My parents, they sacrificed
so much to send me to school.

They have given so much to me
just to be here right now.

...will prevail.

"Shark Tank's" back in business.

I wish I could help you,
but I can't, but let's go!

Yee‐haw!

Now we're talking.
Now we're talking.

I am a founder
of a billion‐dollar brand.

I want you to become
a unicorn, too.

Yes! Yes!

I don't want to make deals
with stingrays.

We came here to do business
with the great whites.

We want a Shark.
We want a Shark.

You've come to the right place.

First into the Tank is
an innovative storage solution

for a common household product.

Hi, Sharks.
My name's Carson Grill.

And I'm Jason Grill.
We're from Cincinnati, Ohio.

And I am the proud dad
to this CEO right here.

We are here today
seeking $150,000

in exchange for 10% equity
of our company.

Sharks, just a few years back,

Carson and I were doing some
touch‐up paint around the house.

With three kids,
fingerprints all over the walls,

believe me, there's always
touch‐up to be done.

Being a former Marine,

Carson knows I like
to run a tight ship.

The question to you Sharks is,
does your paint closet

look anything like this?

Ooh!

If so, you have
half a dozen gallon cans

with just this much paint.

We went to open
just a few cans, and oh!

The rust, clumps, and smell.

We looked at each other
and said...

"There has to be a better way!"

So that's why I invented the
patented TouchUp Cup for paint,

the most innovative solution

to all of your
paint storage problems.

It even has a stainless‐steel
blending sphere for easy mixing.

Just shake and paint, baby!

Say goodbye
to rust and clumps forever.

TouchUp Cup has extra threads

and an airtight silicone seal

to keep paint fresh
for over 10 years.

We sell a three‐pack
and an individual,

so whether you need a lot
or just a little,

we've got you covered.

But wait. There's more.

There is?

We're already in...

4,000 locations!

Whoo! Whoo! Oh.

Whoo! Whoo!

That is a whoo.
And we're not stopping
there, Sharks.

We'll keep going
until TouchUp Cup

is in every home, store,
and workshop around the world.

So, Sharks, who wants to come...

...shake and paint with us?

Sharks, in front of you
are your very own TouchUp Cups

to try out for yourselves.

How old are you, again?

I'm 15.

Wow.

‐That's great. ‐That's awesome.

Do you have a patent on this
or...?

Yeah, so we have
a utility patent

on the use of the shape
of the cup

and the use of this ‐‐

An application
or an actual patent?

Actual patent. Wow.

So, who is running the business?

And you said
you're in 4,000 locations.

Yeah. Tell us about that, too.

So, we're both running
the business right now.

We both have day jobs.
I'm in school.

I'm gonna be a freshman
in high school.

And my dad works
in medical sales.

We have a private label
partnership

with one of the most
recognizable brands

in painter's tape today,
and they are presenting us

to their 55,000
worldwide locations.

They have already gotten us
into 250 Meijer locations

across the Midwest.

And we are in all eight
distribution centers

of one of the largest hardware
co‐op locations in the world.

And our private label partner
is getting us

into 2,000 locations.

And it's important to note
that we don't have

an exclusive with this partner.

They're paying you a royalty
on unit sales?

No, it's a private label,
so we are the manufacturing.

So you're manufacturing
for them?

Yeah, so we do have
a strategic partnership

in Nashville, Tennessee,
that does all of our picking

and packing,
all of our EDI order entry.

And they do ‐‐ we're about ‐‐

I love this kid. I love him.

The vocabulary is insane!

EDI ‐‐ I didn't learn that
till my fifth year at Toms.

We're about 70% online

and 30% in retail right now
about our sales.

We have sold $220,000 in sales
over the last two years,

with $150,000 of that being over
the last year and a half

and $70,000 of that
being this year.

We got another shipment,
and we are on track

to do $400,000 in sales
this year.

‐That's excellent.
‐Wow. Good for you.

The three‐pack costs you
how much landed?

$1.99 landed.

‐Including packaging?
‐Yes, and shipping.

‐So $1.99. ‐Landed.

The individual cup costs us
90 cents landed.

Okay, and what are you
selling them for?

The individual cup,
we wholesale for $1.89

and retail for $3.99 to $4.99.

And the three‐pack,
we wholesale for $4.25

and retail anywhere
from $9.99 to $12.99.

Normally on "Shark Tank,"
when you bring in your son,

usually, the father
gives the pitch

and the son does a little demo,
and then off they go

because things are gonna
get tough in the Tank.

So far, Carson's doing
all the talking.

You're not saying anything.

You know what?
I have all faith in him.

We run this business 50/50.

He knows what he's doing.

I've gone to trade shows
with my dad.

I've gone to buyer meetings
with my dad.

One buyer, we both walk in.

She looks me dead in the eye
and says,

"Oh, you brought your kid.

He can sit in the hallway,
I guess."

And I said, "Oh, no."

So that's when we pulled up
a chair out of the hallway,

and I led the meeting.

Oh, he went out,
he grabbed the chair...

Nice! ...he pulled it in.

He's being modest.
He has four patents, okay?

A utility patent on
the TouchUp Cup.
Wow.

And three design patents

on the Muffin, Bagel,
and Doughnut Fresh.

Hold on. You're 15 years old,
and you have four patents.

Yes.

These are three
of my newest products ‐‐

the Muffin, Bagel,
and Doughnut Fresh.

They are absolutely
a part of this deal.

They are ergonomically designed

to keep muffins, bagels,
and doughnuts fresh

for three to four days longer
than conventional packaging.

So you're throwing that in?

Yes.
You're not selling those yet?

Well, it's about 5%
of our sales.

Carson, this is super impressive
how much you know your stuff.

Blake, I learned
the words "purchase order,"

"private label," you know,
"distribution" around 27.

He just spits them out.

'Cause you didn't get to watch
"Shark Tank."

Yeah.

I would love to
help you grow this business,

so I would love
to make you an offer.

You're asking for $150,000
for 10%.

I'd like to give us some more
cash flow, some more runway,

so I'd like to do $200,000
for 25%.

Wow. Thank you so much
for that offer.

This guy just made a better
offer than I would,

and I was about to give $100‐‐

Let Carson hear
a bid‐ask situation.

No, but I was gonna give
$150,000 for 25%,

and now he did ‐‐ he did
$200,000 for 25%,

so I'm forced to do $200,000
for 17.5%

to cut his legs out
from underneath him.

Yes! Yes!

Are you serious? I'm serious.

Thank you for that offer.

That is
a really interesting dilemma

you've got there, Carson.

Oh. What a Shark.

So, I'll make it simple, guys.

I love you.
You guys are amazing.

But those guys
have made great offers,

so for those reasons, I'm out.

‐Thank you. ‐Thank you, Mark.

‐Congratulations.
‐Thank you for your time.

My dilemma is this ‐‐
I want Carson

to drop out of school
and become a CEO.

I just finished eighth grade.

I don't think that's
an option right now.

I'm out. And I'd have to agree.

Thank you, Mr. Wonderful.
But I do have to ask you
one question in regards to that.

Who will be running
the business?

'Cause I can't work on it
every day.

Blake can't work on it
every day.

Who's gonna work on it
every day?

Or will we have to hire
somebody else?

You know, if we were sitting
in your shoes,

we'd be asking
the same questions.

We want to get this to a point

where I don't have to
have the other job.

But the time right now
is not right to ‐‐

No, you're trying to keep
the lights on in the house.

I get it, right? Yeah.

But at some time,
when you're working at midnight,

the buyers in retail,

they're up Monday morning
at 9:00 a. m.

Calling people
saying "My shelves are empty."

And if you're not there to
pick up that phone at 9:00 a. m.,

they're calling your competitor.

So who's gonna
pick up that phone?

Do we want to get this
to a point

where I can be full‐time
in this business?

Absolutely. Absolutely.

But I can't at this moment.

I'm gonna have to revise
my offer to $150,000 for 20%.

Two Sharks are out.

Carson and Jason have an offer
from Blake and one from Daymond

for their paint storage product,
TouchUp Cup,

but the offers are changing
once the Sharks discover

that no one is working full time
in the business.

I'm gonna have to revise
my offer to $150,000 for 20%,

'cause I see right now
that at least for a year,

it's going to have to take
administering money

to other people to go out
and do some of these jobs.

That's absolutely right,
Daymond.

I'm not changing my offer.

You've gotten two very good
offers here from both of them.

Someone like Blake
or like Daymond could sit

and really work with you
and teach you

and give you some good advice,

whereas I would want you to have
someone else run it for you.

So I'm gonna go out.

Okay. Thank you for your time.

I have a question on your offer.

So, would you be willing
to fulfill purchase orders,

help us fulfill those
purchase orders on top of that,

if it got,
like, uncontrollable to us?

I don't know
until I get in there

and really understand
your business better.

But if I own 25%
of this business

and we need to, you know, fund
purchase orders or inventory,

you know, then it's gonna be
in my best interest to make sure

that I help arrange a line
of credit at a bank for you.

Daymond, same question to you,

as far as
fulfilling purchase orders.

No.

I don't want to be the bank.

I want to use
other people's money.

Carson, what do you want to do?

Yeah, so, Blake, we really
weren't hoping to give up

25% of our company.

Would you be willing
to compromise and say 17.5%?

For $150,000, yes.

Could you do it
for the $200,000?

No, I don't think so.

I think my best offer

would be $150,000 for 17.5%,
which is what Daymond ‐‐

But I really encourage you
to give a little bit more away

but also get that extra
$50,000 in cash,

'cause I think it's gonna
help bring these ideas to life.

Okay.

Could you do $200,000 for 20%?

I love this kid.

I love that you're asking,

but I really think the value
that I'm gonna bring,

I need to own 25% equity.

What do you want to do, buddy?

Daymond, I would like to
thank you for your offer.

That was really kind of you,
and I really appreciate it.

But, Blake, you have a deal.

Okay. Great. Thank you.

Whoo!

Congratulations, guys.
Well done.

Thank you guys so much.
Thank you, everybody.

‐I really appreciate it.
‐Thank you, guys.

‐Thank you. ‐Congrats.

‐Well done, Blake. Good job.
‐Thanks.

Whoo!

We did it!

How do you feel, man? Amazing.

With Blake on our team,
the sky is the limit,

and we can reach
any level of success.

To all the kid‐preneurs
out there, just like me,

you know that you can get
to this spot

with a little hard work,
you can do your research,

and you can be right here,
where I am.

Get a deal with
one of the Sharks,

and it feels amazing.

I was born in Arlington, Texas,

and grew up spending most of
my life practicing tennis.

I wanted to be
a professional tennis player,

but unfortunately, I had
a career‐ending injury

that stopped my hopes
and dreams in the tennis world.

My first business was

a pickup‐and‐delivery
laundry service.

The only reason
I became an entrepreneur

was I had a need for someone
to come do my laundry

because I was on crutches

and couldn't carry my own
laundry down to the facility.

I went from knowing
nothing about business

to running a company in
three states with 40 employees.

By the time I was 29 years old,

I had created four businesses
and sold three of them.

Frankly, I was a little bit
exhausted and burnt out,

so I decided to go to Argentina.

When I was in Argentina
and traveling,

one thing in particular
I witnessed

was really intense poverty,
and that really stuck with me.

Many of the children
were in the streets

when they should be in school,

and specifically,
not wearing shoes.

That's when I had the idea
to create a shoe business

where every time
we sold a pair of shoes,

we would give a pair
to a child in need.

We told them our vision,

and they thought
we were totally crazy.

Every business consultant
I talked to couldn't believe

that I was gonna give something
away every time I sold it.

But because it was so radical,

it differentiated us
and allowed us to become

one of the fastest‐growing
shoe companies in the world.

Today, there are
thousands of companies

who have either emulated
the one‐for‐one model

or created a social cause
in their business.

To date, Toms has now
donated over 96 million shoes

to children around the world,

and we had reached sales
over $500 million a year.

After growing Toms
for eight years

and dedicating my life to it,

I realized I wanted to do more
as an entrepreneur,

and so I sold half
of the company in 2014.

Making small changes
in our lives

can truly transform them.

This led me on
a two‐year pilgrimage

to meet some of the top
scientists in our country

on the state of well‐being
and really thriving.

This experience led to me
launching a new company,

called Madefor.

Our hope with Madefor

is to teach everyone habits
and practices

that can truly transform
their lives

and help all of us
answer the question

"What am I made for?"

One of the things
I'm most excited about

is competing
with the other Sharks.

Most people know me
as this do‐gooder,

but I'm really competitive.

Success to me means feeling
that you've done your best

to make the greatest impact
you can while on this planet,

knowing that you have given life
everything you can

and you've held nothing back.

Next up is a solution

to a common anxiety
for electric vehicle owners.

Hi. I'm Chris. And I'm Josh.

And we're two of the co‐founders
of SparkCharge,

based in Somerville,
Massachusetts.

We're here today
seeking $1 million

for a 6% stake in our company.

Everyone knows electric vehicles
are the future.

They're better
for the environment,

and soon, they'll be everywhere.

But there's one major thing
keeping them

from growing faster ‐‐
range anxiety.

Range anxiety is the fear
of running out of charge

in your electric vehicle.

That's why I would love
to introduce you to the Roadie,

the world's first and only

portable, modular,
and ultrafast EV charger.

The anxiety of finding
a charging station

and the time wasted waiting
for a vehicle to charge

simply goes away
when the charging station

comes to you,
no matter where you are.

The Roadie has
three core features.

Number one ‐‐ modularity.

Units can be connected together

to give
the electric vehicle owner

the exact amount of range
they want.

Number two ‐‐ portable.

Our portable units
can charge an electric vehicle

anytime and anywhere,

making any location
a charging station.

And, of course, the most
important factor ‐‐ speed.

We can charge
an electric vehicle

at a rate
of one mile every 60 seconds.

So, Sharks, help us create
a more sustainable

mobile EV charging
infrastructure.

Okay, and walk us through it.

So, how would I purchase that?

Wait, wait, wait,
wait, wait, wait, wait.

Wait. Wait one second.

I don't know anything
about this. I'm out.

Okay. Okay.
Thank you. Thank you.

So, yeah, it's really simple.

So, we actually sell
directly to businesses.

So we work with OEMs,
roadside companies,

on‐demand companies,
and service companies.

They use the hardware,
and they go out there

and they charge electric vehicle
owners who request it.

So AAA would carry this?

Is AAA a customer right now?

We do have a program
going on right now.

The question is,
how much does it cost you

to make one of those per module?

What do you sell them for?

So, per module,
our cost of goods

are roughly around $2,500,

and then companies pay
a $1,000 deposit,

and then we charge them
a 150‐buck monthly fee.

Okay, so it's 150 bucks
per month per module.

Yep. Yes.

In the past six months alone,

we've done close to over
half a million in sales,

and we're on track
to do over $1 million
in sales this year alone.

By end of next year,
we're predicting

to do close
to $10 million in sales.

This unit itself, it's patented
through and through.

We developed it
from the ground up.

We also built our own
manufacturing facility

in Buffalo, New York.

We've also been really strategic
with our funding,

but we've won a lot of grants
and awards to get us there.

How much money
have you raised from investors

versus grants that you received?

I'd say we probably raised
about $3 million in venture,

and the rest
has been about awards,

which comes to about $2 million,
so about $5 million total.

‐That's fabulous. ‐Very smart.

And so what percentage of
the company do you guys own now

versus what the investors own?

We have a little over 50%.

But why do you believe
you'll go to $10 million?

You went from $500,000,
you double that ‐‐

congratulations ‐‐
to $1 million,

and now you're gonna 10x it.

Why do you believe
you'll go to that?

So, the electric vehicle
industry is growing rapidly.

Essentially, the reason
that we're here today ‐‐
and that's a great point ‐‐

is that we need to scale
to keep up with demand.

Obviously,
you have to burn some cash

to get to where you are now.

How much have you lost
to get to here?

Since the beginning,
I think the burn rate is

just a little over about 4 mill.

So you guys are in a bad spot
right now?

No. No, we have runway. No.

You've raised $4 million, right?

We've raised $5 million total.

Okay, and you spent 4,
so you got a million left.

Correct. And in order to grow,

you need to invest
to build more batteries.

Alright.

You're basically leasing
these things to people, right?

Correct. Mm‐hmm.

How much capital do I have
to tie up in inventory?

That's probably the best way
to ask that question.

About a third.

You're basically going to carry
a third of revenue as leased.

In other words, you own it.
It's on your balance sheet.

Wouldn't it be better
to simply sell this

and then let the attrition occur
in the market?

Because I think
that's a big issue.

So, you know, we could sell it,
but by leasing it out,

essentially,
we control the asset, and then

when the batteries come back,
we can also repurpose them.

Okay, so, tell me again
what it costs you to make.

$2,500.

And so your payback time is...

Approximately 12 months.

How much are you charging, then,
if it's 12 months

and if it's $150 a month ‐‐

They pay a $1,000 deposit.

Oh, they pay $1,000...
Is it a deposit, or is it an
actual $1,000 of revenue?

It's a $1,000 deposit.
It's nonrefundable.

So it's not a deposit, then.
It's actually a $1,000 payment.

Yes.

I really love
what you're doing here.

And I also think that
you can have

a direct‐to‐consumer end of this
down the road

where they can put in their cars
something smaller

but will give them
that little bit of peace of mind

where they can get to somewhere
where they're safe.

So, we are gonna be coming out
with a consumer product.

The technology inside
is somewhat the same.

It's just smaller size,
lighter package,

more consumer‐friendly look.

What will that retail for?

Depending on scale, we might be
able to get it for under $1,500.

How many units are being
used right now ‐‐ today?

Around 50. Yeah.

50. Oh, that's all?

Only 50 units?

You're backordered right now,
then?

Yes. Correct.

I hate the lease part
of the deal.

I hate owning risk.

That part ‐‐ you lost me there.

I'm out.

Thank you, Kevin.
We appreciate it.
Thank you for your time.

Like Lori,
I think the big opportunity

is developing a consumer unit,

but I find it
really hard to believe

that you're gonna deliver
a consumer unit

for 1,000 bucks or less

when your commercial units
are thousands.

And so for that reason,
I'm gonna be out.

Like I said,
I think it's super smart,

it is innovative.

Mark is Mr. Technology.

Like, I will always look to him
to understand things

that I don't
actually understand.

But this is more
a capital issue.

So, are you interested, Mark?

'Cause I'll go in.
Yeah, I like the concept,
right?

So, here's the challenge, right?

The challenge is
it's a lot of cash up front,

and you're gonna have to
borrow money, not raise money,

because if you raise more money,
then you guys aren't gonna have

any ownership left, right?

Unless you think it's gonna be
a multi‐billion‐dollar company.

We do believe it's gonna be
a multi‐billion‐dollar company.

According to our estimations,
we can get to profitability

without having
to raise additional rounds

by middle of next year.

So, here's the thing. Okay.

6% is nowhere near enough,

particularly for two of us,
right?

So, Lori, I think
the best way to do this

is to let them make us an offer,
and we either say yes or no.

So you know what your number is.

Instead of us
trying to figure out your number

and us going back and forth,
in the interest of time,

just give us your number, right?

And if we like it, we say yes,
and if we don't, we say no.

How about this ‐‐
how about we do $1 million

for 10%, it's split 50/50,

but we'll also throw in 2%
adviser equity and a board seat.

2% each?

Uh...

2% each. We can do 2% each.

So we would go
$500,000, $500,000, 7%, 7%.

Right ‐‐ 5% and 2% basically.

Do we have a deal?
We got a deal.

We have a deal!
Let's charge this up.

Whoo! Let's charge this up.

We are gonna do due diligence.
That's for sure.

Guys, I thought the chance
of you getting a deal was zero.

No! Kevin! No! Come on!

I'm just saying.
I'm just saying.

I think the best person
in this deal is Lori,

who got a free ride
off of Mark Cuban's back.

She's a bottom‐feeder.

I like your style, Lori.
Congratulations, you guys.

Take care, guys.

It was the most
exhilarating ride of my life.

We really want to dig in
and start building this business

to be a billion‐dollar business.

With the power of Lori and Mark,

SparkCharge is now fully charged
to take over the world.

People don't realize,
when you raise money,

it's not an accomplishment ‐‐
it's an obligation.

Exactly.
But our media celebrates it.

They celebrate raising money
as if that's like profitability.

Next into the Tank

is a way to protect
against germs and viruses.

Hi, Sharks.

My name is Pete Badaway,

and this is
my beautiful wife, Bianca.

We're seeking $100,000
for 10% equity in our company.

Sharks, we want
to introduce you to Joe.

Joe here,
he's just like all of us ‐‐

gets up, gets himself ready,

puts his mask on,
and heads off to work.

The second Joe leaves his house,
these nasty little germs,

which are filled with odor,
dirt, grime, and even bacteria

are flying at him
from all different directions.

I love it.

Whether he's grabbing
a quick latte...

Yes! ...at a crowded cafe,

walking past
a sneezing co‐worker,

and let's not forget
all those nasties

he picks up during his commute
to and from work.

He's washing and cleaning
his hands throughout the day,

but what's he doing
about his clothes?

Nothing, Sharks.
He does nothing.

That crazy, nasty dirt that he's
collecting throughout the day

is still stuck on his clothes.

Let's face it, Sharks ‐‐
we can't all walk around

with these things on all day
to keep us protected.

There are products to wash
and clean our hands on the go,

but why not for our clothes,
which are even more exposed?

And that...

...is why we created GarmaGuard!

GarmaGuard is the first natural

garment and fabric cleanser
of its kind,

which uses natural propellants
to keep you safe

and your clothes
fresh and clean.

Applying our garment spray,
it's easy.

You simply just spray it
onto your clothes.

Helps eliminate odor,
freshen your fabric,

and keep that dirt and grime
under control.

There you go, Joe. Much better.

So, no matter who you are
or what you do...

GarmaGuard gives you
the freedom to live your life

without having to wear
one of these things on all day

to keep you protected.

So, which one of you Sharks
wants to team up with us

to help GarmaGuard the world?

Sharks, we have some samples
in front of you.

First, we're gonna
get out of these suits

and get Joe on his way
out of here.

I really enjoyed
that high school play.

Yeah, that was fun.

It was very good bad theater.

Okay, so, my very first business
was a pickup‐and‐delivery

laundry and dry cleaning
company.

Yes, we know that.

This could really save someone
a lot of money on dry cleaning,

'cause half of the reason
people would

bring their clothes to me,
especially in college,

their clothes
smelled like smoke.

So my first question is,

is, like ‐‐ will this
take away smoke smell

and not have to take it
to the dry cleaning?
Absolutely.

We're getting amazing feedback
from firefighters.

And I'm a police detective
myself,

so I work very close
to firefighters,

and they call me, they're like,

"Pete, this stuff's
really good."

Wow. It works.

I mean, the thing is,
is very few people

ever wear socks
when they wear Toms,

and if you don't wear socks,
they start to stink.

And there's no odor.

How does it work?
How does it extract the odor?

It actually eliminates
odor‐causing bacteria.

So it's killing the bacteria?

Yes, it is. Yeah.
It's lab‐tested.

It does kill bacteria,
kills 99% of germs.

We can't make those claims

because we're not
EPA‐registered yet,

so we're selling it
as a cleaner now,

but we know how effective it is.

Viruses, too, then? Yes.

COVID?

Uh... That's a big question.

Yeah, we don't have
that kill claim yet.

I mean, that's clearly
the way...
We're working on that.

...that your sales are gonna
grow in time, is if ‐‐

Well, with that in mind,
tell us about your sales.

We've been in business
for a year and a half now.

To date, our sales are $476,000.

Alright, half a million dollars
of sales is not a joke.

You know, that's a good number.

Is this your business that
you've always been in or...?

So, I'm actually a nurse.

I've been working
up until three months ago,

when we had
our third daughter, so...

‐Congratulations.
‐Congratulations.

Thank you. Thank you, thank you.

So, the idea came up,
actually, from being a nurse.

I would come home,

and I wouldn't
want my girls touching me.

I wouldn't want Pete
giving me a hug yet.

I felt so dirty after my shift.

And just watching this
day after day,

I knew that we needed a product

to use on our clothing,
on our uniforms,

on our scrubs throughout our day
before we come home.

And if none exist,
we need to make one.

So, where are you
selling it right now?

What are you doing
to amplify your sales?

So, right now we're selling
on our website,

as well as
a couple other websites.

You're only online right now?
Yes.

Okay, so, how much
do you sell these for,

and what does it
cost you to make?

So, we sell them for $12.99,
and they cost $1.85 to make.

Okay, so you got enough
margins to support...

‐Nice! ‐Yeah, nice margin.

So, guys, you made these sales,

but the golden ring here,
it seems to me,

given where we're at
in this pandemic,

if this said "Kills COVID
on your clothes,"

I think that would be
a really good message.

We're gonna get it. 100%.

What's the timeline to get that?

'Cause I think
that's the question

that we're all gonna ask
and we're all gonna focus on.

Because that will change
your business dramatically.

Six months to a year, I would
say, if I had to estimate.

Look, guys,
look, it's a great product.

It smells good,
obviously works real well.

But every day, I get an e‐mail

from somebody saying
they have this new,

whiz‐bang formula, and you guys
hear about competition

all the time, I'm sure,
right?
Yeah.
Yeah.

So the reality is, you have to
be a great marketing company,

and you're just starting
to learn how to do that.

So I don't think you're quite
ready for my investment.

I'm out.
Alright.
Thank you, Mark.

You're welcome. Appreciate that.

Guys, I understand why you can't
give me what I want.

What I wanted was a little
picture of the coronavirus

with a big red X through it.

That's why
we need your help!
We're working on it.

I know, I know.
We started this in 2017.

To me,
that's the marketing dream.

But it's not just COVID,
Mr. Wonderful.

I mean, this feeling
of cleanliness

and staying sanitized and clean
isn't going anywhere.

No, I get it. I get it.
That's gonna be there
for a long time.

Listen, guys, it's not for me,
but you two are terrific.

Thank you.

Anyways, I'm out. Thank you.

Thank you. Thank you. Thank you.

I think that this is
a good enough business

that you may not need a partner.

I think you guys can scale this
to being $1 million, $2 million

and doing it without a partner.

So I'm out.

Appreciate that, Daymond.

You know, I think that
this is a really good product.

I think it smells fantastic.

And I think you're right
on the money right now.

People would just love to take
something fresh and non‐chemical

and spray it
on their clothes afterwards.
Right.

I'm absolutely going
to be a customer.

I like it a lot.

But it's just so early.

I think you're gonna do great,
but I'm sorry.

I'm out.

Thank you, Lori.
Appreciate the feedback.

Thank you.

Then there was one.

Yeah.

Man, it's tough.

Laundry days. Laundry days.
Come on.

Before I make my final decision,

there's one question I never
got answered, and that is,

your total sales
have been $476,000

over the lifetime
of the business.

What's your sales gonna be
this year

and what's your profitability
gonna be this year?

'Cause you have
huge margins.
Yeah.

So, we'll hit at least
$500,000 this year,

and our margins are around 20%,

so we'll make $100,000
off that $500,000.

You know, I think you have
a great business here.

I think you have great margins.

I actually don't think you need
the equity investment

if you're gonna make
that profitability today.

For many, many years,
I never took investors,

and that's how I was able
to have a very big exit.

My recommendation, you guys,

is get this approval
and whatever you need

so that you can say
"This can kill COVID,"

and your sales
are gonna take off,

and you're gonna be able
to fund it

with the cash flow
of the direct sales.

So ‐‐ But you're buying in early

before we make that claim,
right?

Yeah, I know, but I ‐‐
I mean, our valuation's
gonna go up.

We got 14,000 customers ‐‐
loyal customers.

Our conversion rate's 6.6%.

Our return customer rate's 33%.

The COVID claim
is just the cherry on top.

Man. I'm telling you.

I think the statistics
you keep throwing out

are just making my case
even stronger for

you don't need an investment
right now.

You just need to keep grinding,

and you're gonna look back
and you're gonna have

millions more dollars
in your pocket

because you didn't
give up equity right now.

And then you're gonna
take me to dinner for
giving you that advice.

I love you guys, but I'm out.

Alright.
Appreciate it.
Thank you.

Congratulations on
all you've accomplished, guys.

Thank you
for both of your services.

Thank you. Thank you.

Thank you, guys.

You know, Blake,
I didn't have any investors.

I scrapped it all out. I kept ‐‐

With all the money that I made,

I kept putting it back
into the business,

and the business
was always mine.

And I think that's such
an important message

for people watching to hear,

because I think
we glorify investing.

And, I mean, this show
is all about investing,

and there's times
when an equity investment,

especially from a Shark
and a great partner,

is critical to your growth.

But in this case, I think
they're gonna be great.

They don't need to.

Next up is a product
designed to bring

a little bit of comfort when
you're in the great outdoors.

Hi. My name's Wylie,

and I'm here to tell you
about my company, Rumpl.

But first, Sharks,
I got to ask you a question.

How do you sleep at night?

I'm guessing it's under
a cozy, warm blanket, right?

Blankets are the best,
and they've been keeping people

warm and comfortable
for centuries.

But it's been decades
since anybody's thought
to give them an upgrade.

Meanwhile, we've seen
a textile revolution happening

in outdoor gear
and athletic apparel.

Sharks, Rumpl has taken
these proven new‐age materials

and created a line of durable,

weatherproof,
lightweight blankets.

They're extremely versatile,
warm and cozy,

and can travel with you
from the home

to the outdoors and back.

They repel pet hair...

...debris...

...and stains.

Come on.

Don't waste wine.

It's cheap stuff. Don't worry.

That's the best stuff.

Rumpl blankets
will keep you protected.

But the thing
I'm most proud of, Sharks,

is protecting the planet.

Each of these blankets
is made using

60 recycled plastic bottles

that might otherwise
end up in landfills.
Awesome.

Additionally, we offset 100%

of our carbon footprint
every year

and donate 1% of all sales
to environmental causes

because we care about
protecting the places

that inspired the idea for Rumpl
in the first place.

I'm seeking $600,000
for a 4% stake

of this booming company.
Of course you are!

Of course you are. There we go.

There are samples for you
on your tables in front of you.

Please, let's get cozy
and get to it.

And where do you sell?
Where do you sell and how?

We're selling online.

Amazon. We're in every REI.

I actually bought one in REI.

Oh, right on.
You know the product.
I'm a customer.

What do you think?
Do you like it?

I think the product's great.

I don't really like
the valuation right now,

but we'll talk about that more.

I got to tell you,
this is on me right now.

Yeah. It is really warm.

Yeah. To be so thin is amazing.

Daymond, you look
like a grandmother.

I'm happy, though,
looking like a grandmother.

What is in the inside?
What is the ‐‐

So, the ones you guys
have right there,

they have a hollow
fiber synthetic fill.

It's basically like
a bucatini pasta tube.

But it's a fiber fill?
Yes. Exactly.

Instead of just looking
at the technical aspects
of the blanket ‐‐

I mean, it's great.
I have one. I'm a customer.

But this reminds me a lot ‐‐
when I started Toms,

like, we had a shoe
that a lot of people could copy.

So there's nothing in this
blanket that doesn't mean

that I can't start a company
just like it tomorrow.

Sure.
But what's most important
to me, Wylie, is like,

why did you get passionate
about blankets?

Sure.

I was on a ski trip with
a friend just outside Mammoth,

and our car froze.

It was, like, the coldest night
on record in Mammoth.

And we woke up the next morning,
car wouldn't start,

and we were several miles
up a dirt road.

We had no cell service.

So it was kind of a sketchy
situation we found ourselves in.

And we bundled up
in our sleeping bags,

and we started talking
about how,

"Man, you know,
I really like these materials

so much more than
my comforter back home."

And we decided, you know,
"When we get out of here,

we're gonna make
a sleeping bag blanket."

We bundled up
in our sleeping bags

and just waited
for somebody to show up.

It was several hours
before somebody eventually did.

So, what does one cost?
What do these ‐‐

100 bucks.

And what's your landed cost?

$25. 25 bucks.

So it's a good margin.
And then are you selling
it wholesale? What?

$50. $50? Okay.

$49.50, actually,
'cause it's $99.
And can you just take us
through, like,

the year you started and
what the sales ramp‐up has been?

Yeah, so, we started
end of 2013.

2014, we did 450K in sales,

then $950,000, 2.7,

Ohh.

Wow!

...6.5.

Oh. Ouch.

And I'll explain that.

And then this year,
we're on track for 8.

What happened to that big drop?

Bet you lost
a wholesale account.

No ‐‐ Well, yes.

Yes. Of course.

Actually, what happened is,

in 2018, when we did 8.8,
$3 million of that

was really just with
two large corporate accounts.

How many competitors are doing
pretty much the exact thing

right now in the wholesale
channel and direct channel?

There's probably
a good 15 companies

doing something similar
to what we're doing.

Whoa.
15. This is the big problem,
I think.

Yeah.
Because, I mean, no disrespect
to the business right now,

but to have this level
of valuation

and have zero barriers to entry
and 15 competitors,

that makes me really scared
as an investor.

And before you leave,

because your valuation
is $15 million,

you do have to bring up
how much money

you're going to make
off the $8 million.

Oh, yeah, we're gonna peek
under the blanket on that one.

It's gonna be about
5%, 6% this year,

so $400,000 to $450K.
Only 5% to 6%?

Pre‐tax? Pre‐tax?

That's the profit?

Yeah, pre‐tax.

So, how much money
have you raised?

Yeah. I really want to talk
to you guys about this

because I know this is gonna be
a sticking point here.

No. You don't say.

Rumpl has raised
a good amount of money.

We've done two seed rounds.

Both of those equaled
about $1 million.

And then in 2018,
we did a proper A round,

and we raised $3.8 million.

So, that leads
to the next question.

How much cash
do you have in the bank?

$3.5 million.

Whoa.

Why are you here?

All Sharks are still in,

but with a big sales
and plenty of cash in the bank,

the Sharks are skeptical
about why

Wylie needs an investment
from the Sharks

for his outdoor blanket company,
Rumpl.

How much cash
do you have in the bank?

$3.5 million.

Whoa.

Why are you here?

I am here because I would like
to take this product

and this brand
into sports licensing.

Worst excuse ever to be here.

You could have bought as many
licenses as you want with that.

You just call Fanatics,
you call the NBA.

You know how to get a license.
You've done ‐‐

I don't. I don't.
Seriously, I don't.

You have 3‐point‐something
million in the bank.

You got enough to hire people
to go out and do licensing

and to acquire the licenses.

Where my team is focused...
You know what? I'm trying
to figure out ‐‐ Listen.

Listen, listen, this ‐‐
...where my salespeople
are focused is in outdoor.

Wylie, listen ‐‐
I don't want to distract them
for this other channel.

- Worst excuse ever.
- Mark, what do you think?

Do you think he's here
for the exposure? s

No.
Or do you think
he really wants us to invest?

Yeah, Wylie, look,
I'm not buying the whole

"I can't get sports licensing
help without you guys."

So for those reasons, I'm out.

You know, Wylie,

it takes my breath away
that you would come in here

and ask me to pay you 50 times
free cash flow for blankets.

We don't really need the cash.
What we need is a partner.

And what I'm willing to talk
about is a loan with a royalty.

Did you say "royalty"?
I said "royalty."

Was I being nasty to you?
I take it all back.

No, no, it's all fair. Okay.

Do you know why, Wylie? 'Cause
you have something called sales.

Hit me. What do you got?

Alright, so, I would like
to potentially structure this

as a $600,000 loan,

10% interest
paid back over 2 years,

and then 5%
of all revenue generated

in the sports license channel.

I'm gonna make you an offer.

A loan at $600,000 at 10%

and 5% of sales for 2 years.

That's crazy. Hold on.

So when my Sun‐Staches guys
came on here, they had nothing.

I got them all of Disney,
all of Marvel,

Pokémon, sports license ‐‐
all of that stuff.

Daymond, I think we should
do this together.

If you can help
grow those channels,

I know I can help in the DTC.

Blake and I will give you
$600,000 at 10%.

That's a loan.

I would go
after licenses for you.

Blake, you're gonna go
after wholesale.

Yeah, I mean, I can literally
grow his wholesale

by 500% tomorrow.

So, 2.5% to each of us

for two years on all sales.

And then that's done.

And we get 4% equity.

I'll give you the $600,000,

I'll take 4%,

but we're not gonna
call it a loan.

I'm just gonna say
give me 10 bucks a blanket

till I get back $1.8 million,

and I keep the 4%

because I became your partner
in my "Shark Tank" portfolio.

And I'd rather just take the 600

and pour it onto direct sales.

That's it.
You don't have to go nuts.

I'm gonna tell you
what I'm gonna do.
You're paying half
your free cash flow.

What do you got, Lori?

I'm out.

Good call, Lori. Alright.

Yeah, so, Daymond,

I think we need more equity
after doing this math.

We're gonna do a ton of work
on this business.

So, the deal is
$600,000 loan at 10%,

2.5% to me and to Daymond
for two years,

and 10% equity.

The deals keep on
getting worse for you.

I mean, that's ‐‐

No. That's a ‐‐

I like the Mr. Wonderful
offer better.

I like the Mr. Wonderful offer
better than that one, as well.

How about this, Blake?
I'll be honest.
That's fine. There's gonna be
a lot of deals today.

I was really excited when
I learned that you were
gonna be the guest Shark.

And I'm stoked on you.
I've admired you
as an entrepreneur

and an individual
for a long time.

Thank you.

What if we do $600,000
as a loan,

10% interest
paid back over two years,

2.5% royalty on sales
for two years...

Okay.

...and 4% equity?

So it's the same offer
I came in...

Now he's back to
where you were before.
...plus the royalty.

You're gonna have to
give up 10% to get two Sharks.

And really, you've already said
you want to be dating Blake.

You're not going to the dance
with Daymond.
I have.

Yeah.
I mean, you can throw
Daymond under the bus,

which you're about to do,
'cause there's no way
you're giving up 10%.

That's right.
I'm not giving up 10%.

What do you want to do?
That's the decision.

Alright, so, I'm gonna
give you clarity for this one.

I don't want to get in the way,
so I'm out.

I appreciate that, Daymond.
No disrespect, honestly.

No disrespect taken.
Look, the thing is,

is I was excited to do a deal
with Daymond on the licensing,

but I also just have to look
at the value of my time.

And I'm only gonna focus on two,
maybe three investments a year.

I'm gonna get involved
like a founder,

and so I need to be treated
like a founder.

And unless I have 10% equity,

I just won't feel
like a founder,

and I won't be motivated to
help you as much as I want to.

And that 10%'s
just as low as I can go.

What are you gonna do, Wylie?

Guys, I'm sorry.
I can't do these deals.

I apologize.

I really, really appreciate
this experience, though.

Thank you so much.
‐Good luck.
‐Yeah.

‐Good luck. ‐Alright.

I came in really wanting to do
a deal with Blake.

I'm bummed that
it didn't happen.

I don't think he was being
totally reasonable about
the value of the company.

I think we could have got
a lot of value out of that.

But ultimately, I just don't
know that it was the right fit,

given the valuation
he wanted to put on the company.

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