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00:00Tonight, global business tycoon Peter Jones returns to the tank.
00:04Peter is the most seasoned investor on Dragon's Den,
00:07the UK's version of Shark Tank, with 18 seasons under his belt.
00:11I've been sitting in a chair like this for a long time,
00:13and you have a chance now to change your life forever.
00:16You basically knocked somebody else off and took over the category.
00:19I wouldn't call us a knockoff, though.
00:21This is a lifesaver.
00:23At least show us the respect of knowing where the value is that we're going to bring.
00:26What you've done here is quite amazing.
00:29I'm going to help you sell these things.
00:30You're going to see the power of what the shark can do.
00:32I feel like you're a little bit all over the place.
00:35You are a bit of a crazy chicken.
00:36I'm not a crazy chicken.
00:38I'm really driven, but I know I can improve in some things.
00:43I think that this could be huge.
00:44What's your profit?
00:45We're running a loss at about $400,000.
00:47Uh-oh.
00:48First in the tank is an innovation to a common household tool.
01:08Whoa!
01:08Oh!
01:09Are you all right?
01:11Oh, my gosh.
01:12Oh, hey, no problem, Jay.
01:13No problem.
01:14Looking good.
01:14Looking good.
01:16Hello, Sharks.
01:17I'm Trevor Lambert from Champlin, Minnesota.
01:19And I'm John Vadness from White Bear Lake, Minnesota.
01:21And we're seeking $350,000 for 2.5% in our company.
01:26Sharks.
01:27Messes are everywhere.
01:29Whether your kid throws half their snack under the table, or your cat Fluffy trailing litter
01:33out of the box, or me taking a spill on the tank, all of us deal with messes every day.
01:39But for quick cleanups, who wants to lug out that bulky vacuum, or break their back bending
01:44over chasing that last line of dirt with a dustpan?
01:46Come on, now.
01:47There's got to be a better way.
01:49Well, Sharks, there is.
01:50Introducing Vabroom, a smarter way to clean your floors.
01:53No more dustpans or bulky vacuums required.
01:55With Vabroom, just sweep dirt and debris into a pile, then tilt to the side.
02:00The pressure-activated nozzle quickly and easily cleans up any mess.
02:03See, it's a vacuum.
02:09It's a broom.
02:11It's the broom.
02:12It's quick and complete with just one sweep.
02:15All of that power, and it's just over two pounds.
02:18So it's easy to maneuver and handle in those hard-to-reach places.
02:21And when done, just empty the trash.
02:24Clean and easy, bombs away.
02:27Oh.
02:31Bombs away.
02:31So, Sharks, let's not sweep profits under the rug.
02:36It's time to suck them up with the broom.
02:38It's a vacuum.
02:39It's a broom.
02:40Now, Sharks, say it with us.
02:43It's the broom.
02:45Now, who would like to give it a try?
02:47I'd like to try it.
02:51All right.
02:52So sweep it normal, just how you normally would.
02:55Yeah, so into a little line, right?
02:57Yeah, or a pile.
02:59And you line it up.
03:00Yeah, like this.
03:01And it's pressure activated.
03:02Oh, I see.
03:03So when you engage the floor, it'll turn on.
03:08Very cool.
03:10Yes.
03:11All right.
03:11Now, let's drop the bomb.
03:14Want to see that happen.
03:15So if our broom logo goes up.
03:16Yep.
03:17Let's do it.
03:18Yeah, not bad.
03:21So you all do have a sample, and it's been shortened so that you can test it.
03:25Why don't I just buy a vacuum?
03:27This really isn't intended to replace an upright vacuum.
03:30It's meant for quick cleanups, and that's really the goal that we're doing with Vabroom as a brand.
03:34So tell us about you.
03:37I am married.
03:38Five kids.
03:39Five kids?
03:40Yeah, a little bit like Brady Bunch.
03:41That's the damn reason for the valuation.
03:42Right, and that's why we do what we do.
03:44But to go back a ways back in college, I was starting to come up with different product ideas.
03:49Eventually, I was being hired by others to help them license products.
03:53In 2010, I founded a design firm, and we have various industrial designers and engineers on staff.
04:00And so we do come up with some of our own products, but typically we get hired from various folks, small and medium-sized companies, and that's how we met John.
04:07I'm a fourth-generation plumber and owner of my family company.
04:11It's through that company I'm constantly seeing problems, and I'm making solutions for them.
04:16But that led to a lot of products that I patented and brought to market.
04:19Trevor and his company actually helped me launch one of my items, and I saw the broom as just a 3D-printed prototype.
04:26I knew this was the time that Trevor was looking to pivot to bring a product from prototype to retail and beyond.
04:31And when the opportunity came for me to invest, I knew this was the product.
04:35So this must have taken off already.
04:37We have come with sales.
04:39Yeah, so give me the last 12 months of sales and how you've done.
04:43In the last 12 months, we've done $3.1 million in sales.
04:47Wow.
04:47That's so great.
04:48We're projecting $5 million conservatively this year.
04:51Where are you selling them?
04:52Nice.
04:52We sell direct-to-consumer, and we just started retail.
04:56We just delivered to Bed Bath & Beyond for a two-month promo.
05:01In two weeks, they sold out of all their online stock that they had projected for the entire promo.
05:07So tell me about the cost of the product.
05:08What margin?
05:09So it's just over $17 as a landed cost.
05:12$37 wholesale.
05:14And retails were $59.99.
05:15What was the profit on $3.1 million in dollars?
05:18It was about $300 and some thousand dollars, which we've rolled right into inventory.
05:24I don't see anything on the box that says patent pending or patented.
05:27We have international patents pending.
05:29We have a design patent that's issued in the U.S.
05:31But I'm wondering, how is it really different from, like, a dust buster or something like
05:35that, where, you know, it's small, it's handheld, versus having to have a whole broom?
05:41Good question.
05:42When we developed it, we just hate the dustpan.
05:44It's such a frustrating pain point.
05:46Nobody in the history of everybody can get everything onto a dustpan.
05:49Which is why we did this.
05:50And people see it right away.
05:51Now, what else, what we're getting on customer feedback is we're hearing people with mobility
05:55challenges that are coming to us, this is a lifesaver.
05:58I have a bad back.
05:59And a stick back is too heavy for me.
06:01And I can't bend over.
06:02So this is now enabling them to actually clean their floors.
06:06How much have you invested in this?
06:07John, I invested $200,000.
06:09Good for you, John.
06:10There was $100,000 on Kickstarter.
06:12And then it was really funded, self-funded by the company.
06:14This firm that came up with this, this industrial design firm, am I investing, am I getting
06:19a piece of that?
06:20Great question.
06:21So what we've done is we've shuffled some of our employees of the design firm into this
06:25new entity.
06:27Is there a contract between what I'm investing in and the design firm?
06:31Correct.
06:31Right.
06:32So there's a royalty to the design firm.
06:33A royalty?
06:34Did I hear royalty?
06:35Yeah, a royalty.
06:36So you would appreciate that.
06:37So rather than have to, you know, have a broom to pay back the design firm for the investment,
06:41we just decided it would be much cleaner if it was just...
06:43How much is that investment?
06:455%.
06:45Trevor and John, why isn't it all together?
06:47Why have you made it so complicated?
06:48Well, the issue is, is that we have a service-based design consultancy and other products that
06:53we're launching and we would...
06:54But why don't you package that up?
06:56Well, if there's interest, we would entertain offers.
06:58Well, otherwise it gets messy.
06:59Guys, let me clear the deck a little bit here.
07:02You guys are a design firm with inventors that are really good at that.
07:08You're also good marketers, but you're trying to segment things out so that you kind of have
07:13your cake and eat it too, right?
07:14You get to control the design firm.
07:17You get to segment your product into this new company that you only want to give us 2.5%
07:21It's not worth getting up in the morning for 2.5%, particularly when your greatest skill
07:26set is more available to the design firm and anything else you come up with outside this
07:31company.
07:32So, for those reasons, I'm out.
07:35Trevor and John, I have to say, I thought your pitch was really good.
07:38You clearly solved an issue.
07:40I'm not convinced that the issue is that big.
07:43And I hear your points that you've raised, particularly with people that are actually
07:47finding it difficult to bend down.
07:49But I'm not sure you need to reinvent the broom.
07:51You've made it really complicated today.
07:53So, for that reason, I'm out.
07:55What was your initial ask?
07:572.5% for how much?
07:58$350,000.
07:592.5% is either, I just want exposure, or I'm greedy.
08:04I'm not saying that it's about you.
08:06It just goes through our head, right?
08:08It just doesn't feel right.
08:09So, I'm out.
08:11I like the product, okay?
08:14I like the fact that it's selling.
08:16Making a deal with you is going to be complicated.
08:18You need my $350,000 for inventory, I assume, right?
08:21Correct, yeah.
08:22All right.
08:22And growing direct-to-consumer.
08:24We think that a shark could help us with our media efficiency.
08:26Oh, definitely, definitely.
08:28And I can also sell this for you as Chef Wonderful on QVC and sell a million of them.
08:32Yes, you could.
08:33That's not a problem.
08:34But, I mean, I've got to be incentivized to do it because there's only one Chef Wonderful,
08:39not two.
08:40Here's an offer for you.
08:41Three sharks are out, but Kevin is interested in Trevor and John's innovative broom company,
08:59The Broom.
09:00Here's an offer for you.
09:02I'm known for being creative with my offers.
09:04I teach the sharks how to structure things.
09:07So, $350,000.
09:10I give you that.
09:12Because you brought up the word royalty, I didn't.
09:16You did.
09:17I like royalties because that's how I can get my capital back.
09:20So, I'll give you the $350,000.
09:22I want a $3,000 royalty on the Vabroom until I recoup $700,000.
09:29So, I'm not being greedy about this, okay?
09:31I just want some return of capital.
09:34But I want 2.5% of the design firm because I don't know what else is coming down the pipe.
09:38Whoa.
09:39All right?
09:39So, equity is sort of a venture debt deal in a way with a structure that I get paid back.
09:44It's actually not bad for you.
09:45It's not a bad deal at all.
09:46Listen, guys, I love innovators and innovation and, you know, it's a good idea.
09:53But I'm not sure you'll get your patent and there's so much competition.
09:56I'm sorry.
09:57I'm out.
09:58Okay.
09:59Thank you, Lori.
10:00So, as usual, all roads lead to Mr. Wonderful.
10:03$350,000 for a 2.5%, $3 royalty until you get $700,000.
10:08And that's of the whole design firm, yes?
10:09Yes.
10:10You're only interested in if it's the design firm?
10:12Absolutely.
10:13I mean, look, I'm hopeful that it's not just going to form a relationship.
10:17I'm going to help you sell these things.
10:18You're going to see the power of what a shark can do.
10:20And I want to get the next product, the next product, the next product, the next product.
10:24That's the whole idea.
10:28Could we increase your investment to $700,000 and get you to 5%?
10:35No.
10:36This is a good snack bracket for this particular deal.
10:39I like this entry point.
10:41We get this thing going.
10:42It starts working.
10:43We'll do many other things together.
10:45Ask anybody.
10:46Look at the Bertello Pizza guys, Boost Oxygen, everybody.
10:49I've upped on everybody because it's working.
10:52I like things that work.
10:53Yeah.
10:53Mr. Wonderful, you're definitely a shark we wanted to do a deal with.
10:58And you suck up well, too.
11:01Yeah.
11:03Mr. Wonderful, you've got a deal.
11:06Nice job, Kevin.
11:07All right, Kevin.
11:08Let me tell you why I did this.
11:09I buy a new broom for Barbara every year so she can fly around.
11:12And I really like this model.
11:16This is fantastic.
11:17Thanks, guys.
11:17Looking forward to doing business with you.
11:18Yeah, it's going to be great.
11:19Thank you, Mr. Wonderful.
11:20All right.
11:20Congratulations, guys.
11:21Well done.
11:22Thanks.
11:22Take care.
11:22Bye-bye.
11:23Thanks, sharks.
11:24Well done, guys.
11:25Yeah!
11:26Let's go!
11:31Yeah, buddy.
11:32All right.
11:33We got Mr. Wonderful.
11:34That's who he came in for.
11:35Yeah.
11:35And we got it.
11:35He's going to help us on the media.
11:37It was perfect.
11:37It's going to be great.
11:38We kept the valuation.
11:39Oh, absolutely.
11:40We did.
11:41Yeah.
11:41Fantastic.
11:42It would be great to have him, actually, with a design firm.
11:44Absolutely.
11:45He will be so helpful and way more than just for Broom.
11:48Oh, my God.
11:49Very exciting.
11:49Oh, what a marathon.
11:52What a ride, eh?
11:52What a marathon.
11:53What a ride.
11:53Awesome.
11:57In Season 12, 19-year-old friends Nick Hamburger and Zach Schreier struck a deal with Daniel
12:02Lubitsky for their healthy egg white-based snack chips, Quavos.
12:06You guys are going to kill it.
12:07Let's see what they're up to now.
12:09Zach and I were really excited to bring Quavos to Shark Tank because we were looking for an
12:14experienced partner who knew the food industry, and we couldn't have been more excited to
12:18partner with Daniel, who's a giant in our industry, and has been helping us every step
12:22along the way.
12:23We've expanded our retail footprint from 400 stores to over 1,500 stores, including GNC,
12:28Vitamin Shop, and Hy-Vee.
12:30Whole Foods has become by far our strongest retailer.
12:32We're now doing over three times the sales that we used to do, and we're maintaining
12:36that eight months post the show.
12:38In our two years of business before Shark Tank, we did 1.3 million in sales.
12:42Now, just eight months in Shark Tank, our lifetime sales are $3.2 million.
12:46Brands really reflect their founder's personality, so it makes sense that the packaging be youthful
12:52and fun.
12:53What's fun about working with Nick and Zach is that I have, like, 20-plus years of painful
12:57mistakes, and now I'm able to teach them how to overcome those and avoid those mistakes and
13:02just grow faster, better, cleaner.
13:04And they listen, and this is very, very pleasant when you have entrepreneurs that want to learn
13:08and that want to execute on those lessons.
13:10I know you've been eager to try to raise more money to keep up with your momentum, and I have
13:15a little bit of a surprise for you here.
13:17We've decided to go ahead and invest another $1.3 million in Cuevos.
13:24We're very, very proud of you guys.
13:25We're very excited to help you guys grow.
13:27That's awesome.
13:28That's crazy.
13:29Thank you, Daniel.
13:31When people our age or younger ask us about starting businesses, I always tell them that
13:36good businesses are really simple, rooted in a customer need and meeting that need.
13:41And we can tell you, after years of putting the work in, there definitely is no age limit
13:45to entrepreneurship.
13:46If you're in high school or college, you can be as successful as anyone older if you put
13:50in that work.
13:51Shark Tank changed our lives, and it shows that you could be any age and create and scale
13:55a successful company.
14:09Next up is a healthier version of a favorite indulgence.
14:16Hi, Sharks.
14:22My name is Hannah.
14:23And I'm Molly.
14:23We're best friends from Los Angeles, California, and we're seeking $600,000 for 7.5% equity in
14:31our company must love.
14:34Look at this table of ingredients over here.
14:37They're cheap oils like canola and palm and artificial preservatives and flavors, not to
14:42mention monoglycerides, diglycerides, things I don't even want to try glycerides.
14:47And you won't believe what these ingredients are for.
14:49Medicine?
14:50Paint?
14:51I got it.
14:52Cosmetics?
14:53No.
14:54It's ice cream.
14:55Gross, right?
14:56Ice creams marketed as Better For You often have unwanted ingredients, even ingredients made
15:04from petroleum, wood pulp, and even beetles.
15:07Gross, right?
15:08That's why we created a line of plant-based, indulgent treats made with simple ingredients.
15:16Must love.
15:17But must love is more than just dairy-free ice cream.
15:21It's simply good-for-you fun that comes in pints like Peanut Butter Swirl.
15:25Or Molly's favorite, Cashew Cookie.
15:28Or Hannah's personal favorite, Snickerdoodle Dough.
15:31And novelty bars like Dipped Crunchy Peanut Swirl.
15:34Or Dipped Vanilla.
15:36Which tastes just like a chocolate frozen banana.
15:38But how do we do it?
15:39We start with a simple base of bananas or oats and sweeten with real fruit.
15:44And from there, we add in all the crave-worthy stuff that you really want in your nice cream.
15:49But sharks, we didn't stop there.
15:51This summer, we launched Sprinkles!
15:53They're plant-based, non-GMO, and go perfectly with our ice cream.
16:01Even the vibrant colors come from plants.
16:04Must love is bringing plant-based indulgence to your family's freezer, pantry, and more.
16:10So sharks, who's ready to fall in love with?
16:13Must love.
16:17So please dig into your samples and I'd love to tell you about what you have.
16:21From our banana line, we brought you our signature Dipped Vanilla Bars and also our Cashew Cookie
16:27Pint.
16:28What about the chocolate around it?
16:29This is great vanilla.
16:30They're dipped in chocolate.
16:31But it's vegan.
16:32There's no dairy.
16:33It's vegan.
16:34There's no dairy.
16:35Oh, great.
16:36It's very good.
16:38Very banana-y.
16:39Yes.
16:40You must love bananas.
16:41I thought it was going to taste terrible.
16:42It's pretty good.
16:43That means a lot.
16:46I just want to say I'm not vegan at all and I've eaten so much of this I feel sick.
16:50This is really, really scrumptious.
16:53Thank you so much.
16:54Thank you so much.
16:55So tell us about you.
16:57Yes.
16:59So we're actually best friends who met in undergrad at Berkeley.
17:01We've been best friends for 15 years.
17:03Both our parents immigrated here from Korea and started their own businesses, really came
17:08here for their American dream.
17:10And after we both got our MBAs separately, I was at MIT.
17:13You're an MBA from MIT?
17:15Yes.
17:16What was your specialty or focus?
17:17I focused on operations.
17:18And I focused on marketing.
17:20Jeez.
17:21So you're asking for 600,000, seven and a half percent.
17:23That's a pretty punchy valuation.
17:24So I'm assuming now this is sold like hot bananas.
17:28We launched in 2017.
17:31We had $35,000 in sales and since then we've grown double year over year.
17:36Year to date, we've made $1 million this year.
17:40We're going to end this year 1.7 in revenue and that's a very conservative number.
17:44And what's your profit?
17:46We're running a loss at about $400,000.
17:48Uh oh.
17:49Wow.
17:50Okay, so why do you feel you're running a loss?
17:54So the food industry, I'm sure you're all aware, you know, it's a really cash intensive
17:59business.
18:00When you get into a grocery store, you need to first pay for that marketing to be able
18:04to be there and to reach those consumers.
18:05You're going after the frozen section.
18:07Hard to displace other products.
18:09Yes.
18:10We've fought tooth and nail for every position we've been in.
18:12And the frozen space is very competitive.
18:16Where the growth has been is dairy free and novelties.
18:19So that's really our sweet spot of where we're hitting.
18:22And we have kept our shelf space in all the new doors.
18:26What stores are you in?
18:27We don't even know.
18:28Tell us.
18:29Tell us what stores you're in.
18:30What does it cost and what does it cost for you to make it?
18:33They're available nationally at Sprouts Farmers Market and as well as in certain regions of
18:37Whole Foods.
18:38Last year, we launched in Costco.
18:40Costco.
18:41We tested with them last year.
18:42And it was wildly successful.
18:44Blew them out of the water.
18:46They retail $4.599 on shelf typically.
18:49And our cost of goods is, what, $180.
18:52So how much money have you raised, if any, and from who?
18:55We both invested $200,000 of our own money right off the bat.
18:58Good for you.
18:59You're serious.
19:00We also raised, in the last five years, $1.4 from friends and family and then angels
19:08and institutional.
19:09What valuation was the $1.4 raised at?
19:11We're actually in a seed round right now.
19:13That's why we're here.
19:14We're here.
19:15We're raising at an $8 million valuation.
19:18So this is part of the seed round right now.
19:19Hey, guys, how could you come on Shark Tank?
19:22You've watched the show, I presume.
19:23Yes.
19:24Knowing every single deal in the history of Shark Tank has been negotiated, do you not
19:30think you're going to have to negotiate?
19:32Yeah.
19:33We're ready to negotiate.
19:34And we've spoke with the other investors who have participated in the seed round.
19:38And they're very excited for you guys to be part of the seed round.
19:41They're so excited that they gave us the exact offer that everybody else is going to get.
19:45Well, we're here to get to know you.
19:46You're here to get to know us.
19:47No.
19:48You've known us for 13 years.
19:49You know, to come to us and offer us the same that you're offering the streets, I mean,
19:56at least show us the respect of knowing where the value is that we're going to bring.
19:59I'm out.
20:01We really appreciate the feedback.
20:02You know, there's two problems.
20:04You're not worth $8 million.
20:06You're also asking for $600,000.
20:09Part of your strategy on Shark Tank, you have to decide how much you're asking for.
20:11Yes.
20:12The top quartile of Ask.
20:14It's too much for me.
20:16I'm out.
20:17I just want to say I've invested in a business like this, actually on Dragon's Den.
20:22It was exactly as you've got here in essence.
20:24So it was frozen dessert.
20:26What happened to that business whilst the sales were going up, but sadly the margin reduced?
20:31Because as we got into Whole Foods, Costco and others and all the supermarkets, they wanted
20:37to have the product two for one.
20:38They want to have the specials.
20:39They want to have the end cap.
20:41Every single quarter, another marketing initiative.
20:43When the brand then started to actually go down, we had to invest more.
20:47We ended up with less than three or four percent net margin every single year.
20:52What ended up happening was that the manufacturer was making more money than we were.
20:58And I got out.
20:59I almost, I just got my money back.
21:01So just because of that and my experience, I'm out.
21:04Sorry.
21:05Guys, the problem I have, look, the products are good, they're just not differentiated enough.
21:10I get that they're clean, natural, wholesome ingredients.
21:13Yes.
21:14There are multiple products and the number of products that meet that criteria and check
21:18that box is growing very quickly.
21:21There's not that one trigger that makes someone say, okay, I have to try this.
21:27And for that reason, I'm out.
21:31You're welcome.
21:32Honestly, I think we've captured new customers with very small marketing.
21:36Guys, the only shock that matters now is Lori.
21:37Well, listen, let me tell you what I think, okay?
21:39Because I really know this space, actually.
21:41Because I did a deal a year ago with Frozen Farmer, and we created what we call Frobert,
21:46which was a combination of sorbet and ice cream.
21:51You know, everybody up here at the time said, oh my God, brutal space.
21:54You're never going to make it.
21:56You remember that.
21:57And it was...
21:58And I was right.
21:59It was...
22:00No, actually, he was wrong.
22:01It was a hard road, but we're going to hit $20 million in sales this year.
22:05But you are so competitive with my Frozen Farmer, what we're already doing,
22:10that I would not be being fair to her if I invested in another ice cream line.
22:15And so, for that reason, I'm out.
22:17We so appreciate that.
22:19Thank you so much, Lori.
22:21Thank you, guys.
22:25For $200,000, it's a flyer.
22:26I would have tried it.
22:27For 2.5%?
22:28No, I would have asked for 15%.
22:30Yeah, they would have laughed at you.
22:31No.
22:32They would have said, Mr. Wonderful, I'll do the deal.
22:34And I'd be up there right now, just like that.
22:36What alternate universe would this happen in?
22:37There's only one Mr. Wonderful, Mark.
22:39Thank God for that.
22:40Next in the tank is a trendy fashion statement for men.
23:07Hi, Sharks.
23:08My name's Justin Clark, and I'm from Santa Clarita, California.
23:10And I'm Wyatt Thompson, also from Santa Clarita, California.
23:13Today, we're seeking $200,000 for 5% of our company.
23:17Sharks, men's clothing today is so boring.
23:21All of us walking around in the same shirts and pants and pants and shirts.
23:25Oh, twit.
23:26That's why we created Robberjack.
23:31Robberjack is a men's apparel brand, built for guys that don't have a lot of options
23:34to stand out, look good, and feel confident.
23:37As you can see, we got something for everybody, like our pride romper.
23:42Or even our flannel romper.
23:45Our rompers are fitted, fashion-forward, and made from high-quality premium materials.
23:51I mean, Sharks, come on.
23:52Doesn't Wyatt look pretty cool in this floral passion romper?
23:54Thanks, Justin.
23:55You're looking pretty good at our navy chateau romper.
23:58You know, it's more than just a button-up shirt sewn into shorts.
24:01It's a self-esteem machine.
24:03So, whether you're looking for a jumpsuit for your next wedding party, overalls for
24:08a Sunday picnic, rompers for a music festival, or just some fitted shorts for your next brunch
24:13adding, romperjack has you stylishly come.
24:16At least from here to here.
24:18So, Sharks, we invite you to romper brand with us!
24:24Who's ready to be a part of this amazing, profitable romper-tunity?
24:29Guys, why don't we just jump?
24:31I mean, $200,000 for 5%, I mean, what the French toast?
24:35What's up with this?
24:36In the last four years, we've done $3.7 million in sales.
24:39Whoa!
24:40Wow!
24:41What about the last 12 months?
24:43$1.1 million.
24:44And where are you selling these?
24:45How are you selling these?
24:46So, we currently resell them all online, all for a website.
24:49I mean, this has got to be only for skinny guys, because I wear this, I'm going to look
24:52like I'm on my third trimester.
24:53Who's buying this?
24:55Who's your consumer?
24:56Who's buying this?
24:57So, most of our consumer is the LGBTQ market.
25:01Right now, mostly gay men between the ages of 25 to 45 absolutely love our product.
25:09And then we also have a consumer that, like, is like the fraternity college market.
25:12Do you have any competition?
25:13Yes, there is multiple companies that started in this space, but we've totally destroyed
25:19the space.
25:20So, the story is, we found a Kickstarter campaign online for the male romper.
25:25Now, here was May, and they weren't delivering the product until August.
25:29And we thought, man, romper season's over by then.
25:31There's a season?
25:32Romper season!
25:33I mean, we were thinking this was more of a summer item.
25:35So, we saw that Kickstarter campaign, and we pulled some money together.
25:41We actually beat the Kickstarter campaign to market, becoming the first company selling
25:46these in North America.
25:47You basically knocked somebody else off and took over the category.
25:50That's your claim.
25:51I wouldn't call us a knock-off, though, because we did it better.
25:53Laurie, looking at these two guys now in their romper outfits, do you find them attractive,
25:59from a female perspective?
26:00Oh, okay.
26:02I've got to be really, you know...
26:04Let's put it this way.
26:06I feel that they are very nice-looking men.
26:10I feel that the romper...
26:12I don't know if I like the fact that the shorts match the top.
26:17I kind of get the niche thing with the...
26:19Because I'm already in this space with Rounderbum, and I...
26:21Why are you thinking Rounderbum, which is underwear that enhances?
26:25My Rounderbum community is their community.
26:27Oh, okay.
26:28And when you get a hit in the community, you sell a lot of stuff.
26:31Yeah, exactly.
26:32Because it's word of mouth.
26:33Your customer acquisition cost goes down.
26:35What is the return rate when people get the romper, they stick it on?
26:38Return?
26:39Yeah, it's about 9%.
26:40What do you sell them for?
26:41This product that I'm wearing right now sells for about $79.
26:43This one's $69.
26:44Why is this worth $4 million?
26:46That's a great question.
26:47So, if you...
26:48It always is.
26:49So, it's 2017.
26:50We did $200,000.
26:522018, we did $580,000.
26:562019, $980,000.
26:59During COVID, the height of COVID 2020, we did $1.1 million.
27:03Right now, we're on track to do $1.5 million this year alone.
27:08On that $1.5 million, are you going to make any free cash flow?
27:11Yes, we're actually cash flow positive now.
27:13Last year, we did $150,000 in profit.
27:18Good for you.
27:19And paying yourselves?
27:20Yeah.
27:21And then, this year on the $1.5 million, what are you going to make your thing?
27:24I would say about $300,000.
27:26$350,000.
27:27Really?
27:28Is it just the two of you running the business?
27:30Why didn't I run, like, most of the business, and then I hired stay-at-home moms to do all,
27:35like, the customer service and returns and things like that?
27:38Guys, let me clear the deck a little bit here.
27:40Clothing is just not my thing.
27:42And for that reason, I'm out.
27:44Thank you, Mark.
27:46You remind me of myself when I found a community that felt like they had something that was theirs.
27:53However, I got to see myself in it.
27:56And it's just not one of my styles.
27:58I mean, I think I would look like a yodel in that thing.
28:00I got to be able to wear it and feel like I'm part of it, you know?
28:04So, that's where I'm having the challenge.
28:07So, I'm out.
28:08Thank you, Damon.
28:10Eyes, I'll tell you where I am.
28:12I think you're going to really, really struggle to grow this.
28:15Even, I don't think that's enough money, either.
28:17If you want this to be big.
28:19You can always put more money in if you...
28:20I know you can, but then I think, then I'm going to take a large slice of your company.
28:24And that's not what you're going to want.
28:25You're going to resent me.
28:26So, I'm really sorry, guys.
28:28But for that reason, I'm out.
28:30You are doing well, and you're obviously smart.
28:32Just to stop you right second.
28:33Yes?
28:34We forgot to tell you.
28:35We do have Romper Jill.
28:36Where is Romper Jill?
28:37Romper Jill is not here right now.
28:39We put a pause on it during COVID, but we're just now bringing it back to life.
28:43And Romper Jill is kind of a matching style to Romper Jack.
28:46So, if you have Jack and Jill, you know, you take your best girlfriend out and you got
28:49your guy friend and...
28:50Well, you want to know something?
28:52I think couples would like that, having matching.
28:55I don't think that this is the right business for me.
28:58I'm sorry.
28:59I'm out.
29:01And then there was one.
29:02All roads lead back to Mr. Wonderful.
29:05It's one of those on-the-fence deals for me.
29:08Sales are validation that you've built a niche here with this product, and I know the
29:13community already through Rounderbomb.
29:15I just, I look at the, you know, 200,000, 5%, I could squeeze your heads, I guess, on
29:21taking a much bigger chunk.
29:23Normally, I know when I hate a deal, but I don't hate this one.
29:26So, we've never been able to have inventory in stock.
29:30We actually only been selling on back order and pre-order because we can't keep up with
29:36the sales.
29:37Two months to receive our products.
29:38Yeah.
29:39Guys, there's a lot of pitches coming down the hall.
29:40I've got to fall in love right away.
29:42I like it.
29:43I don't love it.
29:44But I'm impressed with what you've built.
29:46I'm just not going to do it.
29:48I'm out.
29:49Thank you guys so much for your time.
29:51Thank you, guys.
29:52Good luck, guys.
29:53Good luck, guys.
29:55Oh, man.
29:56That's all right.
29:57Yeah.
29:58That's so good.
29:59Yeah.
30:00We're going to romp all the way down to the bank.
30:01It's going to grow.
30:02It's going to grow.
30:03That's right.
30:04Don't miss out.
30:05Yeah.
30:06I think, you know, they made a bad decision today not investing in it.
30:08I think this is just going to continue to blow up.
30:10Our customers love us, and we're going to take this thing to the next level.
30:25Next up is a stylish and functional way to bring more light into your life.
30:38Hi, Sharks.
30:39My name is Raquel Graham, and I'm coming to you from Chicago, Illinois.
30:43I'm seeking $200,000 for a 15% stake in my company, Rock Innovation.
30:49Sharks, picture this.
30:51You're walking your dog at night, and it's time for you to pick up after your pup.
30:55So you pull out your flashlight, but then you have to hold the flashlight and the bag
31:01and your dog's leash.
31:03Now, this is quite a juggling act.
31:06Or maybe you're exercising or changing a tire at night.
31:09There are so many times where you need light to see and your hands free.
31:13Well, Sharks, allow me to show you the light.
31:16Feast your eyes on headlights.
31:18Headlights is a hat with removable and rechargeable LED light that lasts for up to eight hours on one charge.
31:26The light can be charged in any USB port or computer.
31:30The hat is unisex, one size fits most, and machine washable.
31:34Headlights provides hands free lighting so you can do so many things and look great at the same time.
31:41So, Sharks, how about we see the hat in action?
31:44Let me hear you say, show me the light.
31:47Show me the light.
31:50Okay, Sharks, so now that I've shown you the light, who is going to show me some money?
31:59So, I have samples for you guys.
32:01Woo!
32:03That is bright.
32:05Yes, it's bright.
32:06That is bright.
32:07Yeah.
32:08It's 140 lumens.
32:09I don't know if that means anything to you guys.
32:11It does.
32:12That's a nice way to wear it.
32:14What?
32:15Because you have it cocked to the side.
32:17That's the only way to wear it.
32:18Oh, okay.
32:19I think it's a hip look.
32:21You're like, this is not okay.
32:23I start the trends around here.
32:25I know.
32:26I see.
32:27Obviously.
32:28How do these things work?
32:30Pete is about to knock over a 7-Eleven.
32:32Where are you selling them?
32:34I'm on Home Shopping Network.
32:36You are.
32:37Is that your only mode of selling?
32:39And what have you sold there?
32:41Okay.
32:42The Lifetime Company is 2.4 million.
32:45Good for you.
32:46That's so impressive.
32:47For the hat, for headlights, I did 1.1 million last year.
32:511.1 million.
32:52That's fabulous.
32:53What are you going to do this year and just headlights?
32:55This year?
32:56I'm projecting 1.7.
32:57Wow.
32:58What's your average selling price?
32:59Oh, I sell at $19.99.
33:01$19.99 to $24.
33:03Really?
33:04Is it just on the shopping channel?
33:05Are you selling it other...
33:06Oh, no, no.
33:07I'm selling it on my website.
33:08I also...
33:09I've made the O list.
33:10I do...
33:11I'm on Good Morning America.
33:12You're dead.
33:13Oh, dang.
33:14You're a marketing machine.
33:15You're doing all this yourself?
33:16Me.
33:17Wow.
33:18This is the company.
33:19That's impressive.
33:20What's your typical order size?
33:21Oh, okay.
33:22Typical...
33:23Well, it's grown.
33:24Nothing under $25,000.
33:25Wow.
33:26Really?
33:27Never.
33:28$25,000 a time.
33:29Yeah, well, I'll do just $40,000 on HSN.
33:30Split a month.
33:31Is that a full container or...
33:32$40,000.
33:33$40,000 on HSN.
33:34What are you getting a half container in?
33:35A half container?
33:36Have you ever sold on QVC?
33:37You guys...
33:38Ha!
33:39Ha!
33:40Ha!
33:41Okay.
33:42We're warming up.
33:43Are you getting a half container?
33:44It depends.
33:45Are you bringing a half container in or a full container?
33:46It depends.
33:47It's relative to when I can place the order, how quickly, because I change it.
33:50I mean, it's not...
33:51I'm not sure it's a company.
33:52It's kind of a company.
33:53Oh, it is.
33:54Wait, wait, wait.
33:55My concern is this.
33:56I give you $200,000 for 15%, but then you get run over by a bus in Chicago in the winter.
34:01What happens?
34:02Don't worry.
34:03Every entrepreneur that he talks to, he talks about getting run over by a bus.
34:07I only ask that of a single person, because there's nobody backing up.
34:10Why don't you just ask her if she's got key man insurance?
34:12Do you have key man insurance?
34:14That means if you get run over by a bus, I get paid.
34:18Big royalty.
34:19Do you have a patent?
34:20I have a patent pending.
34:21So how long has it been pending?
34:24It's been pending since 2018.
34:27Why is it pending so long?
34:28I don't know.
34:29Now, I have made...
34:30Did you ever get office actions back?
34:32Um, no.
34:35Well, yes, I did during, right before COVID, and then it got delayed.
34:40Raquel, Raquel, I can't, I'll not sit here and be honest.
34:43I feel like you're a little bit all over the place.
34:46You're a great designer, you're a great endorser, but from a business perspective,
34:50there's a real disconnect.
34:51And I think what you really need is a supercharged entrepreneur to make this happen for you.
34:58No.
34:59No.
35:00Not at all.
35:01Why?
35:02No, and that's wrong.
35:03No, I don't think so.
35:04Because all of the things, this is my point.
35:05All of the things you're talking about, patent, you don't really know the detail.
35:07You've not chased it up.
35:08She's the one running the company.
35:09Yeah, she's still selling.
35:10She's still selling and making money.
35:11She's an individual entrepreneur.
35:12Yeah, but she doesn't...
35:13Well, while you two sharks are arguing, I've got good news for you, Raquel.
35:16What?
35:17I'm going to make you an offer, okay?
35:19The noise on the sides, you don't have to listen.
35:21You can listen to my offer.
35:22Okay.
35:23Mary, you are a bit of a crazy chicken.
35:25Just, let's lay it out there, okay?
35:26I get it.
35:27But I like crazy chicken.
35:28I like crazy chicken.
35:29I know.
35:30Why is he calling you a crazy chicken?
35:31Tell him you're not a crazy chicken.
35:32And I have a story.
35:33I want to hear your offer, though.
35:34I say it in a nice way.
35:35Crazy chicken means energy, okay?
35:36He thinks that's flattering.
35:37Oh, okay.
35:38So that's good.
35:39Crazy chicken energy, okay?
35:40Okay.
35:41Here's the deal.
35:42I'll give you the 200,000.
35:43I don't want any equity at all.
35:44I'm going to take two bucks a hat as a royalty until I get my 200 back.
35:48Then it drops down to a dollar.
35:50A dollar forever?
35:51Of course.
35:52As in ever and ever?
35:53I have no equity.
35:54So?
35:55Of course I get a dollar.
35:56Forever?
35:57Yes, even after she's dead.
35:59Okay.
36:00Okay, can I say something?
36:01Because this crazy chicken thing is...
36:03I like the crazy chicken.
36:05No, I don't like crazy chicken.
36:06Let me just say something.
36:07In 2016, I got the call from HSN.
36:11Let's say that was March.
36:13By the summer, I had become really ill.
36:16And when I say really ill, I was misdiagnosed for three months.
36:19They told me I had pneumonia.
36:21It wasn't pneumonia.
36:22It was fungal pneumonia.
36:23And I had been misdiagnosed for so long, it leaked into my leg and I couldn't walk.
36:30Wow.
36:31So I immediately went into quarantine because they didn't know if it was Ebola or whatever.
36:36And they had to treat it aggressively.
36:38In two days, I had a full stroke.
36:40I had lung failure twice.
36:43And, um, and I was on a ventilator for almost a month.
36:49And I went in August 26th, came out the end of September, and I launched on HSN in November.
36:57So I'm not a crazy chicken.
37:00That's right.
37:01I'm really driven.
37:02That's right.
37:03And I wasn't going to leave my kids.
37:06So I do a lot by myself, but I know I can improve in some things.
37:11You championed over adversity.
37:12That's good.
37:13Good for you.
37:14Good for you.
37:15And frankly, I understand why that bothered you.
37:19And frankly, it would have bothered me too.
37:21So.
37:22I'm not here to speak up for Kevin, but you know when he says that, he's saying it in an affectionate way.
37:27Raquel, that's a journey you just took me on.
37:30It's quite a lonely world being an entrepreneur and when you're on your own.
37:34And I understand where that might have triggered you from.
37:36Every single door that has no entry on it has a door behind it.
37:40And you've found that door.
37:42And you have a chance now to change your life forever.
37:45I can help you sell this all over the world, not just in the U.S.
37:49I'm going to make you an offer.
37:51All sharks are still in.
38:04Raquel has an offer on the table from Kevin for her light-up headgear company, Rock Innovation.
38:09But Peter also seems interested.
38:12I think my offer is far more wonderful than Mr. Wonderful's.
38:16Never.
38:17Nobody gets a better deal than Mr. Wonderful gets, I can tell you that.
38:20My offer is the $200,000 for 25% of your business.
38:29That's a good offer.
38:30You want to give up equity? You don't have to.
38:35I'm not a fan of royalty into perpetuity.
38:38I am.
38:39See, she is smart.
38:40Mm-hmm.
38:41So what you've done here is really quite amazing.
38:45But I actually did something with someone that was a light in a cap for barbecuing.
38:52Mm.
38:53And because I'm concerned it would be a conflict with them is the sole reason why I am out on this.
39:02But I love the product.
39:03I love you.
39:05And I'm so glad you're doing so well.
39:08Yeah, Raquel.
39:09I wish it was something where I could really add a lot of value because clothing is just not my thing.
39:15So congratulations on what you've accomplished, but for those reasons I'm out.
39:21I most likely would have given you an offer, but I think the biggest challenge I have is if you didn't get the patent in a certain amount of time,
39:27I think somebody else out there is going to try to block you because the gift and curse of being on the stage is now everybody's going to know you.
39:35And now everybody's going to come out the woodwork.
39:37So I think you have a good offer on the table and I'm going to step out.
39:40I'm out.
39:43However, you have two valid offers on the table.
39:45What are you going to do?
39:46But let me tell you a little bit about me.
39:49I've been sitting in a chair like this for a long time.
39:52And I have to say I've been blown away by you because I also know what it's like to go through difficulty.
39:59I started my first business at 16.
40:01Things lit up for me.
40:02And I was definitely young and naive.
40:05And by the time I was 28, I lost everything, literally everything.
40:10But it was the best thing that ever happened to me because the lessons that I learned from previous,
40:14I could now invest in over 50 different companies globally.
40:19I think that this could be huge.
40:22I'm happy also to let Mr. Wonderful into my deal.
40:25Having a bit of equity is also nice if we're going to light this up.
40:27But I like a little cash flow, Peter. I like a little royalty action.
40:30But we could have a bit of both if you want to share it.
40:32I would love to do that.
40:33You could have Mr. Wonderful and Mr. Global.
40:35Yes.
40:36I've just made that up, by the way.
40:37I don't know where it came from.
40:38Yes, I like that.
40:39I like it.
40:40Okay, why not this deal?
40:41I'll come in 50-50 with you and we get a royalty of a dollar.
40:45And it goes away after, let's say, we get 600,000 back.
40:49What about that?
40:50So it's not perpetual.
40:51You don't have to worry about that.
40:52Are you talking to me?
40:53Well, we're talking together.
40:54And what equity could we have?
40:55You talking to me?
40:56Well, I stay with the 25%.
40:58What about if we drop to 20%, have 10% each?
41:00Yeah, I'd do that.
41:02What about that, Raquel?
41:03You could have...
41:04I've lost track.
41:05You could have Mr. Wonderful and Mr. Global.
41:07Yes.
41:08We could have 20% for $200,000.
41:10Okay.
41:11And we've got a royalty, is that how you call it?
41:13Yeah, royalty of a dollar.
41:14A royalty of just a dollar.
41:15Just a dollar.
41:16Just so we get some cash flow to get our capital back.
41:18But I have a question.
41:19Can you explain when you have a royalty into perpetuity?
41:23No, it's not.
41:24No, we killed that.
41:25Oh, okay.
41:26I'm listening again.
41:27What we said, with Mr. Global coming in, all right?
41:29Yes.
41:30And he asked me to get rid of the perpetual aspect of it.
41:32Oh, okay.
41:33So what happens is we get the royalty until we've recouped 600,000.
41:36So three times on our money.
41:38Then it goes away forever and we're your partners.
41:40We just want some liquidity.
41:45Deal.
41:46Deal?
41:47Deal.
41:48Yeah.
41:49Congrats, Raquel.
41:50Oh!
41:51Raquel, inspiring.
41:53Inspiring.
41:54That's absolutely great.
41:55Congratulations.
41:57Congratulations.
41:59Congrats, Raquel.
42:00Congratulations.
42:03Bye.
42:04All right.
42:05Yay!
42:06A deal.
42:07It's been an incredibly difficult journey, but we're going to be a
42:14truly difficult journey getting here.
42:16All this hard work has paid off.
42:18Having two sharks, Mr. Wonderful and Peter, it makes it all the worthwhile.
42:23And I cannot wait to get started.
42:25MUSIC
42:30MUSIC
42:40MUSIC
42:45MUSIC
42:46MUSIC
42:50MUSIC