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Narrator: THIS IS THE SHARK TANK, WHERE HOPEFUL ENTREPRENEURS
GET A ONCE-IN-A-LIFETIME CHANCE TO PITCH THE SHARKS
IN HOPES OF GETTING AN INVESTMENT
TO START, GROW, OR SAVE THEIR BUSINESSES.
DO YOU SEE ADULTS WEARING THIS?
TO DATE, WE HAVE $9.3 MILLION WORTH OF SALES.
WHOA!
THEY DON'T LOOK SO STUPID NOW.
Narrator: THE ENTREPRENEURS MUST CONVINCE A SHARK
TO INVEST THE FULL AMOUNT THEY'RE ASKING FOR,
OR THEY'LL WALK AWAY WITH NOTHING.
OH, MY GOSH.
PEOPLE ARE CALLING ME ALL THE TIME, "CAN YOU SEND --"
THEY DON'T WANT IT! THEY'RE NOT BUYING IT!
THEY ARE BUYING IT!
YOU'VE GOT TO WAKE UP AND SMELL THE BANKRUPTCY, OKAY?
Narrator: IF THE SHARKS HEAR A GREAT IDEA...
REOW!
Narrator: ...THEY'RE READY TO INVEST...
OH, WOW!
...USING THEIR OWN MONEY.
I WANT 50%.
Narrator: AND THEY'RE WILLING TO FIGHT EACH OTHER
FOR A PIECE OF THE ACTION.
THIS GREEDY SAVAGE -- HIS DEAL IS HORRIBLE.
O'Leary: HE'S NEVER DONE A DEAL LIKE THIS.
I'M THE MAN.
AND I WANT YOU AND I TO DE-BONE THIS PIG TOGETHER.
[ LAUGHS ]
AND THEN WHAT -- WHAT WOULD YOU SEE FOR THE BRAND ITSELF?
MONEY.
Narrator: WHO ARE THE SHARKS?
THEY'RE SELF-MADE MILLIONAIRE AND BILLIONAIRE INVESTORS
WHO ARE ENTREPRENEURS THEMSELVES.
KEVIN O'LEARY IS A VENTURE CAPITALIST
WHO TURNED A $10,000 LOAN
INTO A SOFTWARE BUSINESS WORTH $4.2 BILLION.
BARBARA CORCORAN WENT FROM WAITING TABLES IN MANHATTAN
TO BUILDING THE CITY'S PREEMINENT REAL-ESTATE EMPIRE.
DAYMOND JOHN IS A FASHION AND BRANDING EXPERT
WHO GREW HIS HOMEMADE CLOTHING LINE
INTO THE GLOBALLY RECOGNIZED FASHION BRAND FUBU,
WITH OVER $6 BILLION IN RETAIL SALES TO DATE.
ROBERT HERJAVEC, THE SON OF AN IMMIGRANT FACTORY WORKER,
IS NOW A TECHNOLOGY MOGUL
WHO SOLD HIS FIRST INTERNET COMPANIES
FOR OVER $350 MILLION.
AND MARK CUBAN -- NOTORIOUS BILLIONAIRE ENTREPRENEUR,
TECH GURU,
AND THE OUTSPOKEN OWNER OF THE NBA's DALLAS MAVERICKS.
FIRST INTO THE TANK
IS A FASHIONABLE WAY TO BRING OUT YOUR INNER ANIMAL.
WHAT'S UP, SHARKS?
MY NAME IS ALEXANDER MENDELUK.
I'M MARLEY MAROTTA.
AND WE ARE THE CO-CREATORS OF SPIRITHOODS.
WE'RE SEEKING $450,000 FOR A 15% STAKE IN OUR COMPANY.
OUR PRODUCT BRINGS THE ADVENTUROUS SPIRIT OF THE WILD
INTO EVERYDAY LIFE
WHILE HELPING TO PROTECT ENDANGERED ANIMALS.
REOW!
THAT HAPPENS EVERY TIME YOU WEAR A SPIRITHOOD.
[ LAUGHTER ]
CAN WE SEE THAT DEMO AGAIN?
John: VERY NICE.
BUT WE'RE MORE THAN A HAT COMPANY.
WE'RE A LIFESTYLE BRAND.
AND AS A BRAND, WE'RE ABOUT COMMUNITY, SELF-EXPRESSION,
AND JUST ALL AROUND HAVING A GOOD TIME.
WE HAVE PRODUCTS FOR ADULTS, KIDS, AND SPORTS MARKETS.
THIS IS A TRADITIONAL SPIRITHOOD.
IT HAS PAWS FOR YOUR HANDS...
Corcoran: OH, MY GOSH.
...SLEEVES THAT CAN BE TURNED INTO A SCARF.
John: OH, MY GOD.
OOH, NICE, THANK YOU.
IT CAN WORN UP, IT CAN BE WORN DOWN.
THERE'S ALSO A BUTTON HERE TO SECURE IT TO YOUR HEAD.
AND THEN, ON THE INSIDE,
THERE'S A HIDDEN SECRET ZIPPER POCKET.
THAT HOOD ACTUALLY HAS BUILT-IN MACHINE-WASHABLE SPEAKERS.
SO ALL YOU HAVE TO DO IS PULL YOUR PHONE OUT,
YOU JUST PULL THE CORD OUT RIGHT HERE,
PRESS PLAY, AND YOU'VE GOT MUSIC IN YOUR HEAD.
WAIT, WAIT. I'M CHOPPED LIVER?
[ WHISTLES ]
INTRODUCING, LADIES AND GENTLEMEN,
THE ERA OF THE NEW FANIMAL.
PICTURE IN THE STANDS 30,000 FANS
ALL ROCKING THEIR TEAM SPIRITHOODS.
SO THE TEAM SPIRITHOOD LINE IS --
IS OUR LATEST ADDITION TO THE COMPANY.
DO YOU SEE ADULTS WEARING THIS?
ABSOLUTELY. ABSOLUTELY. UM --
THE BULK OF OUR SALES ARE TO ADULTS.
I DON'T CARE WHO BUYS THEM. WHAT ARE THE SALES?
TO DATE, WE HAVE $9.3 MILLION WORTH OF SALES.
WHAT?!
Corcoran: UNBELIEVABLE.
COME ON!
Marotta: 100% FACT.
NO.
NO, THEY DON'T.
WE LAUNCHED THE PRODUCT IN 2010 AT MAGIC TRADE SHOW.
WE OPENED ABOUT 35 DIFFERENT ACCOUNTS
BOTH DOMESTICALLY AND INTERNATIONALLY, AND --
ANY OF THE MAJOR ACCOUNTS?
WE ARE CURRENTLY IN ZAPPOS, NORDSTROM'S ONLINE, IN HARRODS,
WE'VE BEEN CARRIED IN FRED SEGAL.
AND IS THIS A SEASONAL SALES
THAT BUILD AROUND HALLOWEEN OR CHRISTMAS,
AND THEN YOU KIND OF TAIL OFF THE REST OF THE YEAR?
WELL, THE COLD -- THE COLD-WEATHER MONTHS ARE OUR MONTHS.
SO, BASICALLY, WE DO 70% OF OUR SALES
FROM SEPTEMBER THROUGH DECEMBER.
WHAT IS THE PRICE? WHAT IS THE PRICE FOR AN AVERAGE --
SO, FOR A-A-A BASIC HOOD LIKE THAT,
OUR PRICE POINT IS $99.
John: THAT'S A LOT.
NOW, THESE -- THESE ARE SYNTHETIC, CORRECT?
THESE ARE ALL FAUX FUR.
SO IF THIS SELLS FOR $99,
WHAT DOES IT COST YOU TO MAKE?
ON AVERAGE, IT COSTS ABOUT $29 TO PRODUCE.
THAT'S MADE -- MADE IN LOS ANGELES.
GREAT MARGIN.
WHAT WERE YOUR SALES LAST YEAR?
I KNOW THAT YOU DID $9 MILLION OVER THREE YEARS.
WHAT WERE THEY LAST YEAR AND THE YEAR BEFORE?
THE FIRST YEAR, WE HAD $1 MILLION THAT WE LAUNCHED,
AND THE SECOND YEAR, WE HAD $4.5 MILLION IN SALES.
AND THEN THE THIRD YEAR, WE HAD $3 MILLION.
OH. OOH.
AND WE'RE ON TRACK TO DO $3 MILLION AGAIN.
WHAT HAPPENED?
WE HAD A BIG EXPLOSION, A LOT OF EARLY ADAPTERS,
AND THEN AFTER THAT, WE WERE LEFT WITH A CORE BUSINESS,
WHICH HAS BASICALLY PETERED OUT
ABOUT $3 MILLION STEADILY EVERY YEAR.
DO YOU THINK IT'S A FAD? IS THAT WHY?
NO, I THINK THAT -- I THINK THAT --
WELL, OF COURSE IT'S A FAD,
BUT -- BUT -- BUT HOW DO YOU REPLENISH IT
AND REFRESH THIS, RIGHT?
IT WAS A TREND
WITHIN THE CONTEMPORARY WOMEN'S FASHION MARKET, YES.
BUT, AGAIN, WE EXPAND --
MANY DIFFERENT MARKETS, INTO
BUT WE HAVE A CORE BUSINESS THAT WAS LEFT FROM THAT
THAT FOLLOWED THE BRAND,
BECAUSE THEY LOVE WHAT WE STAND FOR, WHAT WE DO.
YOU NEVER FINISHED OFF YOUR PROFITABILITY.
YOU DID $4.5 MILLION YOUR BEST YEAR.
HOW MUCH DID YOU MAKE THAT YEAR?
SO THE YEAR WHERE WE MADE $4.5 MILLION,
WE ACTUALLY HAD $914,000 WORTH OF PROFIT.
AND WHAT ABOUT LAST YEAR AT $3 MILLION?
LAST YEAR AT $3 MILLION, WE ACTUALLY HAD A --
WE HAD -- WE RAN INTO SOME CHALLENGES,
AND WE HAD A $500,000 LOSS.
WHOA.
$500,000 OR $600,000 LOSS?
SOUNDS LIKE YOU GOT SKINNED THAT YEAR.
YEAH, YEAH. WE GOT SKINNED FOR SURE.
WE HIRED A LOT OF PEOPLE
BECAUSE WE WANTED TO EXPAND
INTO ALL THESE DIFFERENT MARKETS IMMEDIATELY.
WE STARTED BRANCHING INTO APPAREL.
John: YEAH.
WE WENT -- WE WENT -- AND WE WENT
TOO BIG FOR OUR OWN BRITCHES.
BUT WHAT WE'VE NOW DONE IS CUT OUR COSTS,
FOCUSED ON WHAT WE DO BEST, WHICH IS THIS,
AND, YOU KNOW, YOU HAD MENTIONED THAT,
OKAY, IT'S A DOWNWARD TREND.
WELL, ACTUALLY, OUR ONLINE SALES THIS YEAR
ARE STRONGER THAN THEY WERE LAST YEAR.
HOWEVER, WE DO SEE A LOT OF POTENTIAL FOR GROWTH.
WE JUST REALIZED THAT WE'D NEED
TO LOCK WHAT WE DO BEST FIRST.
MANY.
Marotta: UH, YEAH. THERE WAS --
YEAH, Y-Y-YOU'VE PROBABLY SEEN QUITE A FEW OF THEM
OUT IN THE MARKET RIGHT NOW.
YEAH.
BUT ONE OF THE MAIN THINGS, AGAIN, I WANT TO GET TO IS THE REASON
WHY WE'VE SUSTAINED, KIND OF, THE STORM
IS BECAUSE OF THE BRAND, THE BRAND, THE BRAND.
WE HAVE PEOPLE WHO'VE LITERALLY
TATTOOED OUR LOGOS ON THEIR BODIES.
AND I'M SAYING MULTIPLE.
LIKE, THAT'S HOW FANATIC OUR -- OUR TRIBE IS.
I'VE NEVER SEEN A PRODUCT THAT ELICITS A RESPONSE LIKE THIS.
PEOPLE ARE LITERALLY WANTING TO PET YOU,
TAKE PICTURES WITH YOU, THEY WANT TO --
YEAH.
IT'S THE ONLY THING YOU COULD WALK INTO A BAR
AND GIRLS COME UP TO YOU AND START PETTING YOU.
AND WHAT DO YOU WANT TO USE THE $450,000 FOR?
WE COULD STAY RIGHT NOW
WITH A VIABLE $3-MILLION BUSINESS,
PAY OFF OUR DEBT NEXT YEAR,
HAVE MAYBE ABOUT $500,000 IN PROFIT,
BUT WHAT WE REALLY WANT TO DO IS WE WANT TO GROW THE COMPANY.
THE TEAMS LINE WE SEE AS ONE OF THE MAIN PLACES FOR LARGE POTENTIAL.
GUYS, LET ME TAKE A SHOT AT IT.
I LOOK AT IT AS AN INTERESTING FASHION STATEMENT,
BUT IT'S NOT PROPRIETARY -- ANYBODY CAN DO IT.
IT SCARES ME TO SEE A YEAR $4.5 MILLION DOWN TO $3 MILLION,
AND THEN YOU'RE GONNA BUILD IT UP IN A NEW CATEGORY.
LOOK, I'M NOT GONNA TAKE THE RIDE WITH YOU. I'M OUT.
GOOD BUSINESS, GUYS.
I MEAN, GREAT ANSWERS TO ALL THE QUESTIONS.
YOU REALLY LOOK LIKE A SHARK RIGHT NOW, ROBERT.
[ LAUGHTER ]
Herjavec: I LOVE HOW YOU CAME UP WITH IT,
BUT I ACTUALLY INVESTED IN A COMPANY
THAT MADE REALLY COOL THINGS LIKE THIS FOR HELMETS.
MM-HMM.
AND HERE'S WHAT HAPPENED TO US.
TWO YEARS, WE WERE ON FIRE...
MM-HMM.
THAT WORRIES ME ABOUT IT, BUT THERE'S NOTHING WRONG WITH THAT.
THERE'S NOTHING WRONG WITH STARTING A BUSINESS,
MM-HMM.
...AND THEN STARTING SOMETHING ELSE.
MM-HMM.
I'M OUT.
THANK YOU. YOU LOOK GOOD IN IT.
CAN I KEEP IT?
ABSOLUTELY.
Corcoran: I THINK THE BEST USE OF IT,
YOU MENTIONED EARLIER, IS AS A CHICK MAGNET.
YOU WALK INTO A BAR WITH THAT ON,
I'M GONNA GO OVER TO YOU AND THINK YOU'RE AN ADORABLE GUY.
I'M NOT SURE I'M GONNA WANT TO DATE YOU...
...BUT IT'S A GREAT CHICK MAGNET.
IT REALLY IS.
BUT YOU KNOW WHAT?
I LIKE TO BUY INTO BUSINESSES THAT ARE RISING, NOT FALLING.
SO I'M OUT.
ALL RIGHT, THANK YOU. THANK YOU.
THERE ARE MILLIONS OF PEOPLE
WHO HAVEN'T SEEN THE PRODUCT YET,
AND THAT'S ONE OF THE REASONS WHY WE'RE HERE.
GUYS, YOU'VE GOT A NICE LITTLE BUSINESS, RIGHT?
BUT THE THING ABOUT IT IS, I --
IT'S TOO EXPENSIVE FOR ME TO SELL.
$19.95.
THEN MAYBE I COULD SELL A COUPLE HUNDRED IN THE ARENA,
AND YOU'LL SEE SOME FOLKS WALKING AROUND.
AND I-I DON'T THINK YOU CAN GET THE PRICE POINT
WHERE I CAN HELP YOU IN SPORTS,
AND I JUST DON'T SEE IT, SO I'M OUT.
AND YOU'RE LEFT WITH THE ONLY SHARK THAT MATTERS IN THIS CASE.
DAYMOND IS STILL HERE.
Herjavec: ***.
HOW COLORFUL.
DAYMOND, THE FASHION GUY WHO STARTED WITH HATS.
I KNOW! I KNOW!
OH, WE KNOW THAT.
YEAH, YEAH.
YOU KNOW, AND I WOULD LIKE TO DRAW A COMPARISON,
BECAUSE YOU KNOW WHAT IT'S LIKE TO HAVE AN IDEA
AND SEE SOMETHING IN THE MARKET
AND POUND THE STREETS, PUT IT ON YOUR FRIENDS.
YOU KNOW, WE DID THE SAME TYPE OF THING.
WE GOT CELEBRITY EXPOSURE. THE BRAND GREW.
WE'VE BEEN ON BRUNO MARS, SNOOP DOGG, KE$HA, KARDASHIANS,
JUSTIN BIEBER -- THE LIST GOES ON.
HERE'S THE -- THE BIGGER PROBLEM.
THIS BRAND AND THIS -- THIS CATEGORY
ARE HOT FOR A SECOND, IS DOWN-TRENDING.
I WOULD HAVE TO TAKE A GAMBLE WITH YOU,
AND IT WOULD BE -- IT WOULD BE --
LET'S TAKE A RISK. LET'S DO IT TOGETHER.
WELL, I DON'T KNOW IF YOU'LL WANT TO TAKE THE RISK WITH ME,
BECAUSE MY RISK IS GONNA BE $450,000,
AND WE'RE GONNA LICENSE THIS THING OUT, AND I WANT 50%.
50%.
BA-BAM.
WHOO-WEE!
Narrator: FOUR SHARKS ARE OUT.
MARLEY AND ALEXANDER HAVE AN OFFER FROM DAYMOND,
BUT IT'S AN AGGRESSIVE ONE.
I WOULD HAVE TO TAKE A GAMBLE WITH YOU,
AND IT WOULD BE -- IT WOULD BE --
LET'S TAKE A RISK. LET'S DO IT TOGETHER.
WELL, I DON'T KNOW IF YOU'LL WANT TO TAKE THE RISK WITH ME,
BECAUSE MY RISK IS GONNA BE $450,000,
AND WE'RE GONNA LICENSE THIS THING OUT, AND I WANT 50%.
50%.
BA-BAM.
WHOO-WEE!
YEAH, I WANT TO LICENSE OUT ALL CATEGORIES,
AND THE PRICING WILL HAVE TO COME DOWN.
I WANT OUTERWEAR, BACKPACKS,
AND WE WANT TO TRY TO FIND LICENSES FOR THAT
AND GET THAT OUT THERE TO SUPPORT THE BRAND.
YOU SEE, WHEN I FIRST STARTED MAKING HATS,
THE HATS ONLY LASTED, LITERALLY, A YEAR.
OTHER THAN THAT, I HAD TO MOVE
INTO OUTERWEAR AND T-SHIRTS AND DENIM AND EVERYTHING ELSE,
BECAUSE THE HATS WERE IN AND OUT -- THEY WERE GONE.
YEAH.
AND THEN WHAT -- WHAT WOULD YOU SEE FOR THE BRAND ITSELF?
MONEY.
[ LAUGHTER ]
GUYS, YOU'VE GOT A REALLY NICE WARM AND FUZZY OFFER HERE.
THAT'S NOT A WARM AND FUZZY OFFER.
YOU KNOW WHAT IT'S MISSING?
BARBARA, SHUT YOUR PIE HOLE.
BARBARA'S NOT IN THIS! BARBARA IS NOT IN THIS.
YOU KNOW WHAT IT'S MISSING? IT'S MISSING ANY PROMISE,
ANY CONCISENESS OF HOW MUCH HE EXPECTS TO MAKE FOR YOU.
HE HASN'T GIVEN YOU A SINGLE NUMBER.
AND YET HE WANTS --
IF HE'S SO GOOD AT WHAT HE'S DOING,
HE SHOULD BE ABLE TO GIVE YOU
YOU'RE NOT EVEN IN ON THIS DEAL!
THAT'S WHY I'M SPEAKING HONESTLY.
TWO SECONDS?
YOU KNOW WHAT HAPPENS WHEN YOU GO BACK AND TALK, RIGHT?
WHAT HAPPENS?
BAD THINGS HAPPEN.
YOU KNOW, YOU'VE WATCHED THE SHOW.
PEOPLE HAVE LEFT THAT CARPET --
DON'T WORRY ABOUT IT. LEAVE THE LADIES HERE, AND GO AHEAD OUT.
THANK YOU. APPRECIATE IT.
SO, $435,000.
AND HE'S GONNA LICENSE IT OUT INTO EVERYTHING ELSE,
AND THEN WHO KNOWS
WHAT'S GONNA HAPPEN TO THE BRAND NAME?
DO WE WANT HIM TO JUST TAKE OUR BRAND
AND LICENSE IT OUT TO ALL THESE DIFFERENT PEOPLE?
I ACTUALLY THOUGHT THAT WAS A GOOD OFFER.
O'Leary: THAT'S A VERY REASONABLE OFFER.
YEAH.
IT'S A GAMBLE FOR THEM, NOT FOR YOU.
IT'S A BIG GAMBLE FOR HIM.
SALES ARE GOING WAY DOWN.
YEAH, THIS THING GOES TO ZERO, I'M OUT OF $450,000, BARBARA.
YOU DON'T THINK THAT'S A GAMBLE?
SO, MARLEY AND ALEX, YOUR SALES WENT DOWN.
YOU SCARED MOST SHARKS AWAY EXCEPT FOR DAYMOND,
WHO KNOWS YOUR INDUSTRY...
EXCEPT HE WANTS, FOR $450,000,
50% OF YOUR BUSINESS.
WHAT ARE YOU GOING TO DO?
WE'RE NOT PREPARED TO EVALUATE OUR COMPANY THAT LOW,
BUT WHAT WE ARE PREPARED TO DO
IS GIVE A $2 MILLION EVALUATION FOR 22.5%,
BUT THEN A PARTICULAR PERCENTAGE ON LICENSING DEALS
THAT YOU BRING INTO THE SITUATION.
OKAY, WELL, I MEAN, THAT'S THE BEAUTY OF THE TANK.
WHEN YOU GO OUT TO THINK, I START TO THINK,
AND I ALREADY HAVE BUYER'S REMORSE,
AND I DIDN'T EVEN BUY IT.
SO I WASN'T READY TO RENEGOTIATE THE DEAL.
I'M OUT.
THANK YOU.
APPRECIATE IT.
YEAH, TAKE IT EASY.
Herjavec: THANKS, GUYS.
Mendeluk: I'M ACTUALLY STOKED THAT WE DIDN'T GO THAT LOW
AND THAT WE STILL HAVE OUR COMPANY TO SHOW FOR IT.
SO, GOOD WORK, DUDE.
Man: JOINING ME IS BILLIONAIRE ENTREPRENEUR MR. MARK CUBAN.
LET'S GIVE IT UP FOR DAYMOND JOHN.
Cuban: WE'RE AT THE KINGONOMICS CONFERENCE
IN CELEBRATION OF ENTREPRENEURSHIP
AND THE 50th ANNIVERSARY
OF THE MARTIN LUTHER KING MARCH ON D.C.,
AND IT'S A UNIQUE OPPORTUNITY FOR DAYMOND AND I
TO HELP MINORITY ENTREPRENEURS UNDERSTAND THE AMERICAN DREAM
AND GET FIRED UP ABOUT STARTING COMPANIES,
RUNNING COMPANIES, AND HOPEFULLY MAKING SOME MONEY.
INFORMATION IS THE MOST VALUABLE COMMODITY.
THE KINGONOMIC CONFERENCE AIMS TO GIVE ENTREPRENEURS --
PRIMARILY MINORITY ENTREPRENEURS --
ACCESS TO CAPITAL AND INFORMATION
ON HOW TO BUILD A SUCCESSFUL BUSINESS.
I'M SOMEBODY WHO BENEFITED
OFF OF SUPPORTING OF MINORITY ENTREPRENEURSHIP,
AND NOW I CAN HELP OTHERS.
DAYMOND, THANK YOU.
Woman: WELCOME TO "SHARK TANK" CASTING.
THANKS FOR HAVING US HERE.
Cuban: MAYBE NOT EVERYBODY KNOWS --
THE SHARKS HAVE NOTHING TO DO WITH WHO COMES ON THE SHOW.
ALL WE REALLY KNOW IS THEIR FIRST NAME
WHEN THEY WALK INTO THE SHARK TANK.
SO, TELL ME REAL QUICK --
WHAT'S THE NAME OF YOUR COMPANY, HOW MUCH ARE YOU LOOKING FOR?
Salvers: WE ARE HERE AT THE KINGONOMICS CONFERENCE.
WE'RE LOOKING FOR GREAT BUSINESSES,
GREAT PRODUCTS, GREAT IDEAS FOR "SHARK TANK."
IF YOU HAD THE RESTROOM KIT,
YOU HAVE EVERYTHING YOU NEED RIGHT IN YOUR HAND.
Cuban: YOU KNOW, ON "SHARK TANK,"
WE LIKE TO TALK ABOUT,
"OH, IT'S ALL ABOUT THE MONEY,"
BUT IT'S NOT ALWAYS ABOUT THE MONEY.
THERE'S SO MANY DIFFERENT WAYS TO IMPACT THE WORLD,
AND IF WE CAN GIVE SOMEONE THE CONFIDENCE
TO HAVE THEIR DREAMS COME TRUE, THEN IT'S A GOOD DAY,
AND WE'VE ACCOMPLISHED SOMETHING TO BE PROUD OF.
John: ENTREPRENEURSHIP RESONATES WITH MINORITIES FOR MANY REASONS,
BUT THE GOOD THING IS THERE'S NO COLOR WHEN MAKING MONEY.
AND EVERYBODY CAN BE A PART OF THE AMERICAN DREAM.
Narrator: NEXT INTO THE TANK IS A HIGH-TECH WAY
TO TRANSPORT YOU TO AN ALTERNATE REALITY.
HELLO, SHARKS. MY NAME IS JAN GOETELVK.
I AM FROM HOUSTON, TEXAS.
OUR COMPANY IS VIRTUIX, AND WE ARE SEEKING
$2 MILLION IN EXCHANGE FOR 10% OF OUR COMPANY.
THIS IS THE OMNI --
THE FIRST-EVER VIRTUAL-REALITY PLATFORM
THAT ALLOWS YOU TO BE TRULY A PART OF THE VIDEO GAME.
THE OMNI IS AN OMNIDIRECTIONAL TREADMILL,
BUT WE REMOVED ALL THE MOVING PARTS.
IT'S BASICALLY A LOW-FRICTION SURFACE
ON WHICH THE USER WALKS WITH THESE SPECIAL SHOES
THAT HAVE A LOW-FRICTION SOLE.
STEVE WILL ALSO PUT ON A SUPPORT BELT,
WHICH PROVIDES SAFETY.
YOU CAN'T FALL ON THE OMNI.
ALSO PROVIDES SOME SUPPORT
SO YOU CAN USE THE OMNI HANDS-FREE
SO YOU CAN HOLD A CONTROLLER OR A GUN IN YOUR HANDS.
THE OMNI CAN BE PLAYED WITH ANY EXISTING GAME
THAT USES KEYBOARD INPUT.
ONCE YOU'RE IN THE OMNI,
YOU CAN PUT ON THE VIRTUAL-REALITY GLASSES.
THIS IS RIGHT UP YOUR ALLEY.
THE OMNI ENABLES YOU TO WALK...
RUN...
JUMP...
AND CROUCH IN 360 DEGREES,
AND PUT YOUR MIND AND YOUR BODY INTO THE VIDEO GAME
TO TRANSPORT YOU INTO A DIFFERENT WORLD.
[ GUNFIRE, EXPLOSIONS ]
John: WOW.
VIRTUAL REALITY HAS NEVER BROKEN THROUGH
BECAUSE THE TECHNOLOGY WASN'T READY.
THAT'S ALL CHANGING NOW.
THE TECHNOLOGY IS HERE, THE OMNI IS HERE,
SO WHICH OF YOU SHARKS WANT TO BE ON THE FOREFRONT
OF THIS VIRTUAL-REALITY REVOLUTION?
ROBERT, YOU LOOK EXCITED. WOULD YOU LIKE TO TRY IT OUT?
I'D LOVE TO TRY IT OUT. ABSOLUTELY.
WHOSE GLASSES ARE YOU USING?
Goetelvk: THIS IS THE OCULUS RIFT.
OKAY, SO YOU'RE USING OCULUS RIFT, RIGHT.
OCULUS RIFT -- YOU CAN INTERFACE
THAT'S RIGHT.
[ LAUGHTER ]
Goetelvk: BE CAREFUL, BUDDY. BE CAREFUL WHEN YOU GET IN.
YOU BETTER GIVE ROBERT A VOMIT BAG.
[ LAUGHTER ]
NOW, I'M GONNA SET UP THE KINECT.
WHAT'S IT LIKE IN THERE, ROBERT?
IT'S VERY COOL.
SO, ROBERT, THE GUN IS JUST A TRIGGER,
SO YOU AIM WHERE YOUR LOOK.
OH, VERY COOL.
OH, WOW!
Cuban: RUN, GERBIL, RUN.
LOOK, HE'S BACK IN CROATIA!
KEVIN, COME OUT AND PLAY. KEVIN!
[ LAUGHTER ]
IT'S VERY COOL.
FEELS VERY, VERY IMMERSIVE. HOW MUCH IS IT?
Goetelvk: WE'RE SELLING THOSE ON OUR WEBSITE RIGHT NOW FOR $499.
MM-HMM.
THAT'S CHEAPER THAN I WOULD'VE THOUGHT.
HOW MANY HAVE YOU SOLD?
SO, WE LAUNCHED THIS PRODUCT ON KICKSTARTER IN JUNE.
WHAT DID YOU RAISE?
WOW.
CLOSE TO 3,000.
GREAT.
IT WAS VERY COOL. VERY, VERY COOL.
WAIT TILL YOU SEE HOW UNCOOL YOU LOOKED UP THERE.
John: WERE YOU WINDED WHEN YOU WERE ON THERE?
Herjavec: I WAS, BUT I DON'T KNOW
IF I WAS WINDED BECAUSE I DIDN'T KNOW HOW TO USE IT.
I THINK ONCE YOU GOT USED TO IT, YOU'D BE FINE.
John: DO YOU THINK THAT GUYS WHO PLAY GAMES LIKE THIS
WANT TO EXERCISE?
'CAUSE USUALLY THEY HAVE A SIDE JOB AS A PLUS-SIZED MODEL,
[ LAUGHTER ]
YEAH. WELL, NOBODY LIKES BEING OVERWEIGHT.
PEOPLE WOULD LIKE TO BE FIT, BUT GAMERS, THEY DON'T LIKE TO EXERCISE.
NOW WE CAN PLAY GAMES AND LOSE WEIGHT AND BURN CALORIES AT THE SAME TIME.
Corcoran: IS THAT THE WAY YOU'RE POSITIONING IT --
AS A WEIGHT-LOSS MACHINE, AS WELL?
A-A-ABSOLUTELY.
BUT THERE'S A BIGGER ISSUE, RIGHT?
THIS IS PRETTY MUCH BASED AROUND OCULUS RIFT, RIGHT?
AS OCULUS RIFT GOES, YOU GUYS GO.
CAN YOU TELL ME WHAT THAT IS, OCULUS RIFT?
THAT'S THE HEADSET.
THE RIFT IS BASICALLY WHAT STARTED
THIS VIRTUAL-REALITY REVOLUTION.
Cuban: THEY'VE DONE A PHENOMENAL JOB OF ALLOWING YOU
TO PUT ON A HEADSET AND BE IN AN IMMERSIVE WORLD.
IS THAT INCLUDED IN THE PRICE?
Herjavec: OH, IT'S NOT?
Corcoran: SO WHAT DO YOU PAY FOR THAT HEADSET?
$300.
IS THE GUN INCLUDED?
THE GUN IS OFF-THE-SHELF. YOU CAN BUY IT ONLINE.
IT SOUNDS LIKE IT'S GONNA BE AN $800-TO-$900 COST,
WHICH IS QUITE A BIT.
WHY DON'T YOU TELL US WHY YOU'RE WORTH $20 MILLION TODAY?
'CAUSE, I MEAN, NO ONE'S ADDRESSED THAT.
Herjavec: YEAH, I WANT TO HEAR THAT.
MM-HMM.
THAT'S A RIDICULOUS VALUATION FOR THIS.
LET ME WALK YOU THROUGH THE NUMBERS.
THE RIFT IS AN ANALOG FOR OUR PRODUCT.
SAME TARGET MARKET, SAME PEOPLE.
THEY'RE SELLING 200 OF THESE PER DAY RIGHT NOW.
THEY PROJECT TO DO 500,000 UNITS IN SALES NEXT YEAR.
IF WE CONVERT 1 OUT OF 20 BUYERS OF THE RIFT,
WELL, WE WOULD BE SELLING 25,000 UNITS NEXT YEAR,
WHICH IS $12 1/2 MILLION IN SALES.
Herjavec: THERE'S A FUNDAMENTAL DIFFERENCE, THOUGH.
WHEN I BUY THE HEAD GEAR,
I CAN STILL SIT AROUND AND LOUNGE.
YOU'RE FORCING ME TO STAND,
AND YOU'RE FORCING ME TO BE INTERACTIVE.
I DON'T THINK PEOPLE WANT TO BE THAT INTERACTIVE.
I SOLD 3,000 UNITS JUST WITHOUT A PRODUCT YET.
O'Leary: JAN, STAYING ON THE NUMBERS FOR A MINUTE,
WE CAN DEBATE THE MERITS OF THE PRODUCT.
I'M JUST TRYING TO LOOK AT THE SHEER NUMBER.
YOU WANT ME TO PAY YOUR VALUE TWO YEARS FROM NOW TODAY.
Corcoran: HERE'S MY THINKING ON IT.
IF MY HUSBAND BROUGHT THIS INTO MY HOUSE,
I WOULD DIVORCE HIM IMMEDIATELY.
I THINK IT'S A PROBLEM BECAUSE OF ITS SIZE IN THE HOME.
I ALSO THINK IT'S A TREMENDOUS PROBLEM TO SELL THIS IN RETAIL.
I SELL A LOT OF PRODUCT NOW THROUGH RETAIL.
I COULDN'T GET ANYBODY TO GIVE THE FLOOR SPACE TO THIS.
YOU'D PAY SO MUCH JUST TO DEMONSTRATE IT.
BUT I THINK THAT'S A CONCERN.
YOU HAVE TO REALIZE
THAT 50% OF THE POPULATION IS MARRIED,
AND THEY'RE GONNA HAVE TO DEAL WITH THEIR WIFE ON THIS ONE.
SO I'M OUT.
John: YOU KNOW, I SEE THE MARKET.
YOU KNOW, "BLACK OPS" DID AMAZING.
"GRAND THEFT AUTO," RIGHT? BREAKING RECORDS.
I-I SEE THE MARKET, BUT I ALSO DON'T SEE SOMEBODY PLAYING THIS
MORE THAN AN HOUR OR A HALF AN HOUR A DAY
BEFORE THEY CAN'T EVEN PLAY IT ANYMORE 'CAUSE THEY'RE OUT OF BREATH OR THEY'RE TIRED.
THEY JUST WON'T REVISIT IT.
SO FOR ALL THOSE REASONS AND MORE, I'M OUT.
LOOK, GREAT PRODUCT. I WILL DEFINITELY BUY ONE.
BUT I THINK I'M AN ANOMALY.
YOU'D BETTER TALK TO YOUR WIFE. SHE'S NOT A PUSHOVER.
WELL, WE HAVE A BIG HOUSE, BARBARA. SHE'LL NEVER SEE IT.
BUT I DON'T THINK THAT PEOPLE WANT TO EXERCISE
AND IMMERSE THEMSELVES IN A PHYSICAL WORLD TO THAT DEGREE.
I THINK IF PEOPLE REALLY WANTED TO IMMERSE THEMSELVES THAT WAY,
I THINK THEY'LL GO OUTSIDE.
I-I DON'T BUY THE PREMISE. I'M OUT.
O'Leary: I SEE WHERE YOU'RE GOING WITH IT,
BUT IT IS A SUBSEGMENT OF A SUBSEGMENT MARKET,
AND IT'S VERY EXPENSIVE.
I LOOK AT IT AND SAY TO MYSELF,
"IS THIS A GOOD DEAL AT $20 MILLION
WHERE YOU ARE RIGHT NOW?"
AND THE ANSWER IS NO, IT'S NOT.
THERE'S TOO MUCH RISK
BETWEEN YOUR DELIVERY OF A CONSUMER PRODUCT,
A RETAIL-DISTRIBUTION STRATEGY, AND YOUR SALES.
YOU'VE GOT TONS OF RISK -- ALL KINDS OF RISK.
AND I GOT TO PAY TOMORROW'S PRICE TODAY.
I HATE DEALS LIKE THAT.
I HATE IT WHEN YOU MAKE ME PAY
FOR TWO YEARS FROM NOW IF EVERYTHING WORKS TODAY.
WHY WOULD I DO THAT?
I'M NOT AN IDIOT. WHY WOULD I DO THAT?
BECAUSE OF THE POTENTIAL.
O'Leary: YOU ARE GOING TO HAVE PROBLEMS.
POO-POO'S GONNA HAPPEN, MY FRIEND,
AND I HAVE TO PAY FOR THAT NOW?
NO. IT'S AN OUTRAGE. RIDICULOUS. I'M OUT.
I GET WHAT YOU'RE DOING.
I COULD SEE YOU CREATING $20 MILLION IN SALES,
$25 MILLION IN SALES WITH THIS,
BUT YOU'RE COMPETING JUST LIKE HEADSETS ARE GONNA BE COMPETING,
JUST LIKE THE CONSOLES ARE GONNA BE COMPETING.
YOU'RE ONE MORE -- ONE MORE OUTLET COMPETING FOR CONSUMER DOLLARS.
YOU HAVE TO PUSH THAT BALL SO HARD TO KEEP GOING.
YOU HAVEN'T TOLD ME
THAT THERE'S A WAY TO GET TO $50 MILLION IN SALES.
AND IN SIX YEARS, THERE'S GONNA BE
COMPLETELY NEW TECHNOLOGY THAT BLOWS ALL THIS AWAY.
FOR THOSE REASONS, I'M OUT.
THANKS, GUYS.
O'Leary: JAN, YOU KNOW, I LOOK AT THE EXPERIENCE,
AND WHAT CAN PEOPLE LEARN FROM WHAT HAPPENED HERE TODAY?
AND, FOR ME, THE LESSON IS,
VERY INTERESTING I.P. -- WAY OVERPRICED.
IF YOU HAD PUT THIS AT A $5 MILLION VALUATION,
IT WOULD'VE BEEN VERY INTERESTING.
GOOD LUCK.
Herjavec: GOOD LUCK, JAN.
ANYBODY THAT PAYS $20 MILLION FOR THAT IS INSANE.
GAMERS ARE LAZY, LIKE MOST HUMAN BEINGS.
THEY DON'T WANT TO EXERCISE.
NO, THEY DON'T.
Narrator: NEXT INTO THE TANK ARE TWO MOMS FROM BAYONNE, NEW JERSEY,
WITH A COOLER WAY TO KEEP KIDS SAFE.
Herjavec: [ LAUGHS ]
Cuban: COOL.
VERY COOL.
HI, SHARKS. MY NAME IS JOCELYN FINE.
AND I'M KELLY DINEEN.
WE'RE FROM NEW JERSEY,
AND WE ARE THE FOUNDERS AND MOMS BEHIND FOHAWX!
WE'RE HERE TODAY SEEKING $150,000
IN EXCHANGE FOR 30% OF OUR BUSINESS.
SHARKS, JUST ABOUT EVERY PARENT CAN RELATE
TO THE STRUGGLE THAT YOU FACE
WHEN YOU TRY TO GET YOUR CHILD TO WEAR THEIR SAFETY HELMET.
IT'S A FIGHT. WHY?
WELL, SAFETY HELMETS ARE NOT PERCEIVED AS BEING COOL.
THEY'RE CLUNKY, PLAIN, BORING.
SO WE TOOK SOMETHING ORDINARY,
AND WE'VE MADE IT EXTRAORDINARY.
ORIGINALLY INSPIRED BY MY DAUGHTER MAYA,
FOHAWX! ARE DECORATIVE, FUNKY FOAM HELMET ACCESSORIES
THAT COME IN A VARIETY
OF OUTRAGEOUS COLORS AND STYLES.
EACH AND EVERY FOHAWX!
COMES WITH ITS OWN SELF-ADHESIVE VELCRO STRIP
SO IT CAN EASILY BE...
REMOVED AND... REATTACHED.
WILL IT WORK ON KEVIN'S HEAD?
[ LAUGHTER ]
SO YOU CAN REMOVE IT
AND REATTACH IT TO ANY SAFETY HELMET.
SO KIDS CAN COLLECT THEM ALL,
OR THEY CAN SWAP WITH THEIR FRIENDS.
THE FOHAWX! BRAND WILL CONTINUE
TO DESIGN AND DEVELOP PRODUCTS
THAT GET KIDS EXCITED ABOUT SAFETY GEAR
BECAUSE WITH FOHAWX!, SAFETY HAS NEVER LOOKED SO COOL.
Together: THANKS, GUYS.
SAY BYE TO THE SHARKS. GOOD JOB.
Herjavec: BYE, GUYS. BYE, GIRLS.
BYE, KIDS.
JOCELYN, CAN WE SEE ONE?
ABSOLUTELY.
WELL, HERE'S SOME SAMPLES.
Corcoran: SO WHAT IS THE AGE GROUP THAT YOU'RE TARGETING HERE?
THANK YOU.
...CHILDREN BETWEEN THE AGES OF 4 AND 10.
THIS -- THIS WHOLE CONCEPT,
LIKE I SAID BEFORE, WAS INSPIRED BY MY DAUGHTER.
WE WERE DOING A FAMILY BIKE RIDE,
AND MY SON, WHO WAS 7 AT THE TIME,
REFUSED TO WEAR HIS BIKE HELMET.
AND MY DAUGHTER, SHE RAN TO THE GARAGE,
GOT SOME GLUE GUN AND SOME PURPLE TISSUE PAPER,
AND CREATED A MOHAWK
RIGHT DOWN THE CENTER OF HIS HELMET,
AND HIS WHOLE ATTITUDE CHANGED.
HE LOVED IT. HE THOUGHT HE LOOKED SO COOL.
AND I LOVED IT BECAUSE HE WAS WEARING HIS HELMET -- NO COMPLAINING.
JOCELYN, THERE -- THERE'S A LOT OF PRODUCTS
LIKE THIS OUT THERE.
WHAT'S DIFFERENT ABOUT --
OKAY, WHAT REALLY DIFFERENTIATES US IS THE VERSAT--
IN WHAT SENSE?
THE -- THE FACT IS THAT IT CAN ATTACH TO ANY HELMET.
THIS IS SOMETHING THAT KIDS -- REALLY EXCITE KIDS
BECAUSE THERE'S SORT OF LIMITLESS STYLES
THAT WE COULD COME UP WITH.
WHAT DO YOU MAKE IT FOR, AND WHAT DO YOU SELL IT FOR?
WE MAKE IT FOR $5. THAT'S PACKAGED AND LANDED.
OH.
YES, AND OUR MSRP IS $19.99.
AND HOW MANY HAVE YOU SOLD? WHERE HAVE YOU SOLD THEM?
SINCE WE STARTED SELLING, WHICH WAS JUST OVER A YEAR AGO,
WE'VE SOLD ABOUT 5,000 UNITS
HOW?
UM, WE ARE IN OVER 80 SPECIALTY RETAIL TOY STORES
ACROSS THE UNITED STATES.
WE ARE ALSO IN TEST MODE
WITH TWO OF THE BIGGEST MASS-MARKET RETAILERS
IN THE WORLD -- TOYS "R" US AND WALMART.
NOT IN RETAIL -- ONLINE.
NOT IN RETAIL, BUT AS SOME OF YOU PROBABLY KNOW,
THE MASS-MARKET RETAILERS
RIGHT.
John: THEY'RE GONNA WANT --
THEY'RE GONNA WANT THIS THING AT $9.99, AREN'T THEY?
WELL, YOU KNOW, WE HAVE HAD NO PUSHBACK
FROM ANY OF THE BUYERS.
FROM WALMART, YOU'RE SAYING?
WALMART HAS -- HAS NOT PUSHED BACK ON THE PRICE, WHICH --
SO THEY'RE OKAY WITH A $20 RETAIL PRICE?
YEAH, THAT'S HARD TO BELIEVE.
YEAH, THERE'S NO -- IS THERE COMPETITION FOR IT?
THERE IS NO -- WE WANT TO BE SOLD --
KELLY, THERE'S TONS OF COMPETITION.
I DISAGREE.
IF YOU GO INTO ANY MASS-MARKET RETAILER
AND WALK DOWN THE HELMET AISLE,
THERE'S NO HELMET ACCESSORY.
BUT, KELLY, IF I WALK INTO A SKI SHOP ON A SKI HILL,
THERE'S AN ENTIRE RACK OF STUFF LIKE THIS.
ALSO, A BIKE SHOP.
BUT WE WANT TO BE IN EVERY MASS-MARKET RETAILER.
IT'S -- YEAH.
WHY -- WHY ARE YOUR SALES SO LOW?
$50,000, AND YOU'VE GOT HOW MANY STORES?
IN -- LOW? I DON'T AGREE.
IN ONE YEAR IN OVER 80 SPECIALTY RETAILER STORES, AND WE --
O'Leary: YEAH, WE'RE -- WE'RE SELLING --
WE'RE TWO MOMS FROM NEW JERSEY.
YEAH, AND I GET IT, BUT I'M STRUCK. THE NUMBERS DON'T LIE.
YOU'RE SELLING HUNDREDS OF DOLLARS OF THEM IN EACH STORE.
WE JUST STARTED SELLING OVER A YEAR AGO.
I KNOW, BUT IN A YEAR, WITH 80 STORES,
YOU'VE DONE $625 PER STORE IN A YEAR.
THEY'RE ALL GONNA GET DELISTED.
THERE'S NO WAY ON EARTH A RETAILER'S GONNA KEEP THAT IN
WITH SUCH SMALL VELOCITY.
WELL, WE ENVISION --
WE ENVISION EXPANDING THIS ASSORTMENT TO INCLUDE
THE HOTTEST KIDS LICENSES, ANIMATION CHARACTERS --
NO, BUT -- BUT YOU DON'T HAVE TO EXPAND.
Cuban: YEAH, YOU'RE MISSING HIS POINT. YEAH, YOU'RE MISSING HIS POINT.
NO, NO, NO. YOU'RE NOT -- YOU'RE NOT GOING TO EXPAND.
THEY'RE NOT GONNA TAKE MORE PRODUCT.
IT'S NOT WORKING. IT'S JUST NOT WORKING.
IT'S A YEAR!
Fine: ANOTHER THING WE REALLY NEED TO TALK ABOUT IS LICENSING.
WHAT? DON'T EVEN GO THERE.
Corcoran: YEAH.
WHY?
BECAUSE WE REALLY SEE THAT THIS IS -- THIS IS WHAT KIDS WANT.
THEY ASKED US FOR THIS PRODUCT.
THEY DON'T WANT IT! THEY'RE NOT BUYING IT!
MAYBE PEOPLE DON'T WANT TO BUY THEM.
WELL, THAT -- WE HAVEN'T HAD THAT EXPERIENCE.
NO, JUST -- THAT'S JUST NOT POSSIBLE.
LOOK, YOU'RE ON FIRE. YOU'RE BURNING.
YOU HAVE TO FIGURE OUT WHAT'S WRONG
AND FIX IT RIGHT AWAY BEFORE YOU GO TO ZERO.
DO YOU THINK THAT IF THIS WAS PRICE POINT AT $9.99,
WE WOULD BE SELLING MORE?
NO.
TRY ANYTHING.
SO LET'S MAKE THAT HAPPEN.
I HAVE TO GET TO CHINA. I NEED YOUR CONTACT.
Corcoran: KELLY, KELLY, KELLY. THE ONLY WAY --
CAN I GET A WORD IN HERE?
EXCUSE ME. EXCUSE ME.
BARBARA!
EXCUSE ME.
I'M STILL TALKING. YOU'RE INTERRUPTING.
I WANT TO KNOW ONE THING.
CAN I FINISH MY -- CAN I FINISH MY STATEMENT?
YOU'VE GOT A MINUTE. GO AHEAD.
HAVE YOU SET IT UP AT $9.99 OR DONE --
OR DONE FLASH SALES TO SEE HOW PEOPLE RESPOND AT $9.99?
WE DID DO A FEW PARTNERSHIPS
WITH SOME OF THE HOT FLASH-SALE WEBSITES,
AND THEY DID SELL OUT
THERE'S YOUR ANSWER.
EXCUSE ME.
CAN I SPEAK A MOMENT?
Fine: YES, PLEASE.
CONSIDER THE POSSIBILITY
THAT YOU'RE BLINDED
BY YOUR SHEER LOVE OF MAKING THIS THING GO,
WHICH IS A WONDERFUL TRAIT,
BUT NOT WHEN IT NEGATES FACT THAT'S ALL AROUND YOU.
YOU'VE GOT TO FACE THE REALITY THAT ALL THE SIGNS ARE SAYING,
"IT'S A PROBLEM, IT'S A PROBLEM, IT'S A PROBLEM,"
BUT YOU'RE TOO BLIND TO SEE IT.
SO WHAT ARE YOU GONNA DO, BARBARA?
I'M OUT FOR SURE.
WE ARE ABSOLUTELY --
WE ARE ABSOLUTELY COMMITTED TO MAKING THIS.
THAT'S NOT ENOUGH. THAT'S -- THAT'S NOT ENOUGH.
YEAH, BUT THERE'S --
EVERYBODY WHO WALKS INTO THE SHARK TANK
IS FULLY COMMITTED.
OKAY.
IT TAKES MORE THAN THAT TO BE SUCCESSFUL.
WE ARE TWO MOMS TRYING TO CREATE THIS COMPANY.
WE NEED SOMEBODY WHO CAN TALK TO CHINA.
WE WANT EXPERTISE IN GLOBAL EXPANSION, LICENSING --
O'Leary: WHY?
YOU HAVEN'T EVEN CONQUERED NEW JERSEY.
WHAT ARE YOU WORRIED ABOUT THE GLOBE FOR?
THE MARKET WANTS THIS NOW.
Fine: IT'S TOO SOON. IT'S TOO SOON.
THEN DON'T SAY -- OH, MY GOSH.
PEOPLE ARE CALLING ME ALL THE TIME, "CAN YOU SEND --"
WE'VE HAD INTERNATIONAL DISTRIBUTORS.
WELL, WHY DOESN'T IT SHOW UP IN THE NUMBERS?
WHAT WOULD YOU -- WHAT WOULD -- WHAT WOULD'VE MADE YOU HAPPY?
NUMBERS FIVE TIMES THIS.
Cuban: NO, ACTUALLY, WAIT. NO.
HERE'S WHAT WOULD'VE MADE IT HAPPEN.
Herjavec: NO, NO.
THIS IS WHAT WOULD'VE MADE US HAPPY.
IF YOU WOULD'VE SAID, "WE HAD ONE STORE,
AND THEY SOLD $50,000 WORTH,"
AND YOU WOULD'VE SAID, "WE JUST NEED MORE MONEY
SO WE CAN GO TO A SECOND STORE AND THEN A THIRD STORE."
THEN WE COULD PROJECT NUMBERS.
YOU'RE SELLING US ON THE DREAM AND NOT DISCUSSING THE GREEN.
I'M OUT.
KELLY, UM, LOOK, YOU'RE -- YOU'RE VERY SCATTERED.
THERE'S A LOT OF PRODUCTS LIKE IT.
YOU DON'T WANT TO ACKNOWLEDGE THAT, BUT THERE ARE.
AND YOU'RE NOT GETTING ENOUGH CUSTOMERS.
WE REALLY FEEL LIKE THIS IS THE BEGINNING FOR US.
I APPRECIATE WHAT YOU'RE SAYING, BUT FOR US,
WE REALLY ARE JUST --
OUR MOMENTUM IS JUST REALLY STARTING NOW.
I HOPE SO.
I'M OUT.
OKAY.
DAYMOND, LET'S DO THIS TOGETHER.
LET'S -- YOU WANT TO SELL THEM AT $9.99?
LET'S DO IT TOGETHER.
IT'S NOT ABOUT THE SALES THAT WE'RE UPSET ABOUT.
IT'S THE SALES AND AMOUNT OF THE STORES.
YOU HAVE TO LOOK AT THAT,
AND YOU HAVE TO TAKE ALL THIS YOU'VE LEARNED
AND USE IT MOVING FORWARD.
BUT AT THIS POINT, I CAN'T HELP YOU. I'M OUT.
OKAY, THANK YOU.
Herjavec: IS THERE ANYBODY LEFT?
MISTER --
OH, MR. WONDERFUL, I CAN'T WAIT TO HEAR THIS.
[ LAUGHTER ]
I DON'T KNOW WHAT YOU'RE GONNA DO.
I REALLY DON'T KNOW,
BECAUSE YOU'RE ON THE PATH, RIGHT NOW, TO ZERO.
WELL, WE CAME HERE TODAY PREPARED TO MAKE A DEAL,
THIS BUSINESS IS NOT WORKING.
IT IS WORKING.
I JUST GAVE YOU THE MATH, AND YOU DENY IT.
WHAT'S THE MATTER WITH YOU?
LISTEN -- THIS IS THE FIRST STEP OF FOHAWX!
THERE WILL BE A FOHAWX! FOR EVERY SINGLE KID.
THERE WILL BE A FOHAWX! WITH THE MAVERICKS.
THERE WILL BE A FOHAWX! WITH A FUBU.
YOU CAN PRINT ON THIS.
THERE'S GLITTER, THERE'S DIE-CUTTING.
IT'S ENDLESS.
I WANT PARTNERS THAT CAN DEAL IN REALITY.
YOU'VE GOT TO WAKE UP AND SMELL THE BANKRUPTCY, OKAY?
I'M OUT.
OKAY, THANK YOU.
Cuban: GOOD LUCK, GUYS.
PROVE US WRONG.
Corcoran: UGH.
EXHAUSTING.
I TRULY FEEL LIKE FOHAWX! IS MY FOURTH CHILD.
I HAVE SACRIFICED SO MUCH TO GET HERE,
AND I'M JUST REALLY DISAPPOINTED
THAT IT DIDN'T COME ACROSS
AS BEING AS SUCCESSFUL AS IT FEELS TO US.
THEY WERE DETERMINED.
BLINDED.
THE QUESTION WAS, WERE THEY DETERMINED TO MAKE MONEY,
TO BE RIGHT.
MY NAME IS AL "BUBBA" BAKER, AND I LIVE IN AVON, OHIO,
WITH MY BEAUTIFUL WIFE, SABRINA,
AND I HAVE THREE LOVELY CHILDREN.
I PLAYED IN THE NFL FOR 13 YEARS.
I WAS ROOKIE OF THE YEAR. I WAS AN ALL-PRO.
THAT WAS MY JOB THEN, BUT BARBECUE IS MY PASSION.
FANTASTIC.
AFTER MY NFL CAREER, I OPENED UP MY OWN BARBECUE RESTAURANT,
AND THAT'S WHERE MY REVOLUTIONARY PRODUCT
WAS INVENTED.
IT'S CONVENIENT, IT'S DELICIOUS, AND IT'S ALL-NATURAL.
HERE YOU GO. YOU READY? TOUCHDOWN!
IT'S IMPORTANT FOR US TO GET THIS INVESTMENT TODAY,
BECAUSE WE'VE SPENT EVERY PENNY ON THIS DREAM,
AND WE'VE ALMOST WIPED OUT THE PROFITS FROM MY RESTAURANT.
MY FAMILY'S MADE A LOT OF SACRIFICES,
PARTICULARLY MY WIFE, SABRINA,
AND I WANT TO BE ABLE TO SHOW HER
THAT AT THE END OF THE DAY, IT'S GONNA PAY OFF.
BEING IN THE NFL FOR 13 YEARS,
THINGS DON'T ALWAYS GO ACCORDING TO YOUR GAME PLAN,
AND IT'S THE END RESULT -- WINNING -- THAT MATTERS.
HI.
I'M AL "BUBBA" BAKER FROM AVON, OHIO,
OWNER OF THE DE-*** BABY BACK RIB STEAKS.
I'M SEEKING $300,000
IN EXCHANGE FOR 15% EQUITY IN MY COMPANY,
AND THIS IS MY LOVELY DAUGHTER BRITTANI.
SHE'S GONNA MAKE YOU SHARKS
RIBS IN A MICROWAVE IN TWO MINUTES.
NOW, I PLAYED A LITTLE FOOTBALL IN THE NFL FOR 13 YEARS.
THAT WAS MY JOB. BARBECUE IS MY PASSION.
SADLY, I MARRIED A WOMAN THAT DOESN'T LIKE RIBS
BECAUSE THEY'RE TOO MESSY.
SO I VOWED TO FIND A WAY
FOR MY WIFE TO BE ABLE TO ENJOY RIBS.
BUT HOW DO YOU MAKE RIBS LESS MESSY?
[ LAUGHS ]
AFTER 20 YEARS, I FOUND THE PERFECT METHOD,
AND THE DE-*** BABY BACK RIB STEAKS WERE BORN.
WE ARE THE ONLY PEOPLE THAT HAVE REMOVED THE BONES
FROM AN ACTUAL SLAB OF RIB, LEAVING THE MEAT INTACT
SO THAT EVERYONE CAN ENJOY RIBS WITH A KNIFE AND FORK.
OUR DE-*** BABY BACK RIB STEAK
IS NOT PIECES OF MEAT FORMED IN THE SHAPE OF A RIB,
IF YOU KNOW WHAT I MEAN.
[ LAUGHS ] YOU TELL THEM, BUBBA.
BONELESS MEATS ARE THE WAY OF THE FUTURE,
AND THE FUTURE IS NOW.
MAKE NO BONES ABOUT IT, SHARKS. IT'S TIME FOR SOME RIBS.
IT'S ALWAYS TIME FOR RIBS.
ALL RIGHT, BUBBA. BLESS ME WITH THE BUBBA BABY BACK.
[ LAUGHS ]
Cuban: BUBBA, WHO'D YOU PLAY FOR?
WELL, I PLAYED FOR THE LIONS.
I WAS ROOKIE OF THE YEAR IN 1978.
I PLAYED FOR THE THEN-ST. LOUIS CARDINALS,
AND THEN I CAME BACK AND I RETIRED IN CLEVELAND IN 1990.
GREAT CAREER.
THIS IS ABSOLUTELY DELICIOUS.
YEAH, IT'S VERY GOOD.
THANK YOU. THANK YOU.
SO, BASICALLY -- I JUST WANT TO BE REALLY, REALLY CLEAR.
I BUY THIS, I THROW IT IN THE MICROWAVE FOR TWO MINUTES --
AND IT TASTES LIKE THIS?
YOU GOT IT.
MMM.
OFTEN, WHEN WE GO TO RESTAURANTS,
COWBOY RIB EYE, BONE-IN RIB EYE --
SOME PEOPLE ACTUALLY BELIEVE
THAT THE BONE JUST TASTES BETTER.
THAT'S A GREAT POINT.
WE COOK THE PRODUCT WITH THE BONE IN IT,
AND WHEN THE PRODUCT IS FULLY COOKED,
THEN WE REMOVE THE BONES, THEN WE QUICK-CHILL IT,
AND THEN IT'S PACKED RIGHT AWAY.
O'Leary: IS THERE ANYTHING PROPRIETARY
ABOUT HOW YOU'RE REMOVING THE BONE,
OR ARE YOU GENETICALLY ALTERING COWS
SO THEY GROW UP WITH NO RIBS?
ACTUALLY, IT'S PIGS. KEVIN, IT'S HOGS.
OKAY, SO, WHY COULDN'T I JUST DO THE SAME THING?
WELL, UM...
THE PROCESS AND THE PRODUCT --
DON'T RUN FROM THE TOUGH QUESTIONS.
OKAY.
LITERALLY.
RIGHT HERE, KEVIN,
IS THE PATENT FOR THE PRODUCT,
AND RIGHT HERE IS THE PATENT FOR THE PROCESS.
WOW.
COULD I SEE THE PROCESS PATENT?
HERE. TAKE THEM BOTH TO THEM.
SO, NOBODY ELSE CAN MAKE BONELESS RIBS?
LET ME BE MORE SPECIFIC.
NO ONE ELSE CAN MAKE A FULLY COOKED RIB
WITH EITHER ONE OR MORE BONES REMOVED FROM IT.
WOW.
AND HOW DO YOU GET THE BONES OUT?
IF I TELL YOU THAT, I GOT TO KILL YOU.
Cuban: NO, YOU DON'T. YOU GOT A PATENT.
YOU GOT A PATENT FOR IT, BUBBA.
YEAH, TELL ME.
Baker: ROBERT, HONESTLY, THERE'S THE PATENT,
THEN THERE'S THE KNOW-HOW,
AND WHAT I SAY TO PEOPLE WHO ARE GONNA GO TRY
AND REVERSE-ENGINEER AND FIGURE OUT HOW TO DO IT,
I SAY, "GOOD LUCK TO YOU,
'CAUSE IT TOOK ME 20 YEARS TO DO IT."
O'Leary: I GOT TO TELL YOU SOMETHING.
IN THE ENTIRE HISTORY OF "SHARK TANK,"
I'VE NEVER SEEN A PATENT ON A FOOD PRODUCT EVER BEFORE.
THANK YOU. 'CAUSE WE WORKED IT.
Herjavec: AL, WHAT ARE YOUR SALES
AND HOW MANY LOCATIONS ARE YOU IN?
OKAY, OUR SALES ARE $154,000.
OVER WHAT PERIOD?
OVER A YEAR'S PERIOD.
WE'RE SELLING IN ABOUT 48 STORES.
YOU SAID IT TOOK YOU 20 YEARS TO DEVELOP THIS,
AND YOU'VE ONLY BEEN IN BUSINESS ONE YEAR.
WHAT HAPPENED TO THOSE OTHER 19 YEARS?
WELL, AT ONE POINT, I'LL BE HONEST WITH YOU.
I, UM -- I HATE TO USE THIS WORD -- I QUIT.
AND THE REASON THAT THIS YOUNG LADY AND I
ARE PARTNERS IS WE HAD AN INCIDENT
WHERE SHE WAS IN TRACK, AND, LIKE MOST DADS,
I WAS PUSHING HER.
SHE SAID, "HEY, I DON'T WANT TO RUN TRACK."
I SAID, "YOU CANNOT QUIT."
AND SHE SAID, "WELL, YOU QUIT ON THE BONELESS RIBS."
Corcoran: POWERFUL.
YEAH.
IF IT WASN'T FOR HER,
I WOULDN'T STILL BE DOING WHAT I'M DOING.
O'Leary: OKAY, GUYS.
I ACTUALLY AM AN INVESTOR
IN A RESTAURANT CHAIN WITH 450 LOCATIONS
THAT SELLS A TON OF PROTEIN,
AND THIS IS THEIR SECOND-LARGEST SELLING ITEM -- RIBS.
HERE'S THE BIG PROBLEM WITH YOUR DEAL RIGHT NOW.
YOU'RE ASKING FOR $2 MILLION VALUATION ON THIS THING.
YOU'RE NOT MAKING ANY MONEY.
THE ONLY VALUE HERE IS IN THE PATENT.
THIS REMINDS ME OF A STORY THAT'S SO RELEVANT TO YOU.
I LOVE STORIES.
THE FIRST SEASON OF "SHARK TANK,"
A GUY STOOD RIGHT WHERE YOU ARE.
HE HAD A FOLDING-NECK GUITAR.
HE WANTED TO BUILD OUT A GUITAR COMPANY.
THE ONLY THING OF VALUE
WAS THE PATENT ON THE FOLDING-NECK TECHNOLOGY.
WHERE ARE YOU AT?
THEY ARE LICENSING THAT TECHNOLOGY
ON FENDER BENDER GUITARS ALL AROUND THE WORLD.
HE'S GONNA BE RICH.
LISTEN TO WHAT I'M SAYING TO YOU.
A PATENT ON A FOOD PRODUCT -- THAT'S INTERESTING.
AND THE ONLY VALUE IN THE PATENT
IS TO LICENSE IT TO ONE OF THE SUPPLIERS OF PROTEIN.
I WANT TO TAKE YOU TO ONE GUY...
OKAY.
...THAT SUPPLIES EIGHT --
[ LAUGHS ]
ALL AROUND THE WORLD, PIGS ARE WALKING AROUND SAYING,
"STOP THE SENSELESS SLAUGHTER," BECAUSE OF THIS ONE GUY.
[ LAUGHS ]
SO, MY OFFER IS VERY SIMPLE. I'LL GIVE YOU THE $300,000.
IT'S CONTINGENT ON GETTING
ONE OF THE LARGE MEAT PROCESSORS IN AMERICA
TO LICENSE THE PATENT.
BUT I WANT 49%.
THAT'S THE DEAL.
Narrator: ALL FIVE SHARKS ARE STILL IN.
KEVIN HAS MADE AN OFFER OF $300,000,
CONTINGENT ON A LICENSING DEAL WITH A LARGE MEAT PROCESSOR.
BUT HE WANTS 49% OF AL'S COMPANY.
THAT'S THE FIRST TIME KEVIN ACTUALLY HAS A DECENT IDEA
WHEN IT COMES TO SOMETHING LIKE THIS.
IT'S THE FIRST TIME
WE'VE HEARD HIS STUPID IDEA MAKING ANY SENSE.
John: THAT IDEA IS SO BRILLIANT,
I'LL DO THE EXACT SAME DEAL, BUT I'LL ONLY TAKE 30%.
BAM, KEVIN!
THIS GREEDY SAVAGE -- HIS DEAL IS HORRIBLE.
O'Leary: HE'S NEVER DONE A DEAL LIKE THIS.
I'VE LICENSED PLENTY.
YEAH, OKAY.
I THINK YOU'RE PAYING A VERY EXPENSIVE PRICE
FOR SOMEBODY TO MAKE A PHONE CALL FOR YOU
THAT YOU COULD DO ON YOUR OWN.
I'M OUT.
BARBARA?
I WOULD HAVE PITCHED YOU
THAT I SHOULD BRING YOU TO SOME OF THE BIG-BOX STORES,
SOME OF THE CLUB CHANNELS, LIKE B.J.'s, COSTCO,
BUT I HAPPEN TO THINK SOME OF THE OFFERS ON THE TABLE
OKAY.
Cuban: I'M KIND OF IN THE SAME BOAT.
I THINK YOU NEED TO FATTEN UP THE HOG SOME
BEFORE IT'S READY TO GO.
FOR ME, THE BUSINESS WOULD HAVE TO BE A LITTLE BIT BIGGER.
THAT'S WHY YOU'RE LIMITED KIND OF TO THE LICENSING PLAY.
SO, FOR THOSE REASONS, I'M OUT.
OKAY.
YEAH.
BOTH LICENSING DEALS.
AL, IS THIS THE PATH THAT YOU WANT TO GO DOWN?
TALK TO THE GUYS AT VOYAGE-AIR AND FENDER --
ALL AROUND THE WORLD.
I'M THE MAN.
AND I WANT YOU AND I TO DE-BONE THIS PIG TOGETHER.
[ LAUGHS ]
YOU'VE GOT THE REAL DEAL, OR YOU'VE GOT THE DISCOUNT LICENSE GUY.
DAY 1, YOU'RE NOT TAKING A CHECK,
AND HE WANTS TO TAKE 50% OF YOUR COMPANY.
49%.
I'M WORTH EVERY CENT OF THAT 49%.
WHAT ARE YOU GONNA DO?
UM, KEVIN, I LOVE THE FACT THAT YOU HAVE MADE US AN OFFER,
AH!
YOU PICKED THE BETTER MAN, MY SON.
YOU DE-*** THE PIG RIGHT IN FRONT OF ME!
RIGHT DEAL, AL.
THANK YOU. THANKS A LOT.
THANK YOU.
CONGRATS, GUYS.
[ LAUGHS ]
HEY, HEY!
HE WAS A GREAT SALESPERSON.
HE WAS A GREAT PITCHER.
HE WAS A GREAT SALESPERSON.
HE UNDERSTOOD THE ART OF PITCHING.
AND HE SURE KNOWS HOW TO COOK A RIB.
YAY!
STUDYING DAYMOND'S BACKGROUND,
I THINK HE'S A GUY THAT ENJOYS MAKING CHANGE,
AND THAT'S WHAT THIS IS GOING TO DO TO THE BARBECUE INDUSTRY.
IT'S GONNA CHANGE BARBECUE AS WE KNOW IT.