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(man) 'TIS THE SEASON...
GREETINGS. I'M SCOTTY CLAUS.
FOR AN ALL-NEW EPISODE OF "SHARK TANK"...
I THINK I JUST MET SANTA CLAUS.
WHERE HOPEFUL ENTREPRENEURS
DREAM OF A CHANCE TO SECURE AN INVESTMENT
AND GAIN POWERFUL PARTNERS
TO START, GROW, OR SAVE THEIR BUSINESSES.
I GIVE PEOPLE MEANINGFUL JOBS DURING THE HOLIDAYS.
IS CHRISTMAS GONNA COME EARLY?
LOOK, I DON'T--I DON'T WANT TO BE A GRINCH.
IF THE SHARKS HEAR A GREAT IDEA,
THEY'RE READY TO INVEST USING THEIR OWN MONEY.
SO GREEDY ON THIS ONE.
AND THEY'LL FIGHT EACH OTHER FOR A PIECE OF THE ACTION.
IGNORE EVERYTHING THEY JUST SAID.
DID YOU REALLY JUST SAY THAT?
BUT FIRST THE ENTREPRENEURS MUST CONVINCE A SHARK
TO INVEST THE FULL AMOUNT THEY'RE ASKING FOR
OR THEY'LL WALK AWAY WITH NOTHING.
YOU COME IN HERE AND YOU CHARGE ME TEN TIMES MORE?
ARE YOU CRAZY?
IT'S SINK...
YOU'VE DONE EVERYTHING EXCEPT GET DIRTY.
OR SWIM.
KEVIN, YOU DON'T KNOW ME.
OH.
YOU DON'T KNOW HOW I CAN FIGHT, KEVIN.
THIS IS A BRAND.
I REALLY HATE IT, BUT I STILL WANT A CHRISTMAS PRESENT.
YES! (laughs)
♪♪♪
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 WORKING
AS A WAITRESS IN MANHATTAN
TO BUILDING THE CITY'S PREEMINENT REAL ESTATE EMPIRE.
DAYMOND JOHN IS A FASHION MOGUL AND BRANDING EXPERT
WHO GREW HIS HOMEMADE CLOTHING LINE
INTO THE GLOBALLY RECOGNIZED FASHION BRAND FUBU.
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
AND THE OUTSPOKEN OWNER OF THE DALLAS MAVERICKS.
♪♪♪
I'M JULIET BOYDSTUN.
(Australian accent) I'M LUCINDA GOULD.
AND WE'RE FROM LOS ANGELES, CALIFORNIA.
(both) AND WE OWN THE COOP.
♪♪♪
THE COOP IS LOS ANGELES' COOLEST INDOOR/OUTDOOR
PLAY AND PARTY SPACE.
I LOVE THOSE COLORS.
(Lucinda) JULIET AND I HAVE BEEN FRIENDS
FOR A REALLY LONG TIME,
AND WE HAD OUR BABIES AT THE SAME TIME,
AND EVERY WEEKEND, WE FOUND OURSELVES
AT THESE NASTY, HORRIBLE, DIRTY KIDS' PLACES.
WE LOOKED AT EACH OTHER, WE WERE HAVING THE SAME THOUGHT.
(laughs) IT CLICKED.
WE COULD DO THIS BETTER.
(cheering)
HAPPY BIRTHDAY! WHOO!
(Lucinda) THE COOP IS REALLY UNIQUE
BECAUSE YOUR KIDS CAN COME AND HAVE A BLAST.
ON THE OUTSIDE PATIO, YOU CAN SIP A COFFEE,
READ A MAGAZINE, CHAT TO YOUR GIRLFRIENDS,
AND FEEL COOL.
THERE'S NOWHERE ELSE LIKE THAT IN LOS ANGELES.
LUCINDA AND I ARE FABULOUS PARTY THROWERS.
BUT WE DON'T REALLY HAVE
THE BUSINESS ACUMEN AND BACKGROUND.
WE NEED THE SHARKS TO COME IN AND HELP US GROW THE BUSINESS.
WE'RE GONNA BUILD THIS BRAND BIG,
AND THERE'S GONNA BE A COOP IN EVERY CITY
IN THIS COUNTRY. (laughs)
WHOO! (laughs)
(laughs)
♪♪♪
HI, I'M LUCINDA LENT.
AND I'M JULIET BOYDSTUN.
AND WE OWN THE COOP.
WE ARE SEEKING $150,000
FOR A 15% SHARE IN OUR COMPANY.
WE'VE BEEN FRIENDS
SINCE WE EACH MOVED HERE ABOUT 18 YEARS AGO
AND AT THE START OF THAT TIME, WHEN WE WERE YOUNG AND FABULOUS,
WEARING HIGH HEELS AND GOING TO COOL COFFEEHOUSES.
AND THEN WE HAD KIDS.
AND EVERYTHING CHANGED.
WE STILL HUNG OUT TOGETHER,
BUT OUR NEW HANGOUTS WERE BUILT FOR KIDS--
NOISY, CLUTTERED WITH BROKEN TOYS,
OUTDATED DECOR, AND CHEESY MASCOTS.
WE GOT SO SICK OF THESE COOKIE-CUTTER PARTY PRISONS
THAT WE WENT IN SEARCH OF A KIDS' PLACE
THAT WE COULD ENJOY AS MUCH AS OUR KIDS.
BUT WE COULDN'T FIND IT.
SO WE CREATED THE COOP.
"US WEEKLY" MAGAZINE JUST NAMED US
"THE HOT TOT PARTY SPOT," AND WE WANT TO SHOW YOU WHY.
WHEN WE DESIGNED THE COOP, WE WENT FOR CLEAN LINES.
WE KEPT ALL THE TOYS MODERN.
AND UNLIKE MOST KIDS' PLACES,
WE HAVEN'T FORGOTTEN ABOUT THE PARENTS.
WE EVEN HAVE A CAPPUCCINO BAR.
WE SELL OUT EVERY WEEKEND.
WE CATER TO MOVIE STARS, ROCK STARS,
TELEVISION PERSONALITIES AND STAR MAKERS,
RIGHT ALONGSIDE REGULAR MOMS JUST LIKE US.
AND TODAY WE KNOW THAT
SOMEONE IN THE SHARKS IS HAVING A BIRTHDAY SOON.
COMING UP.
MARK.
SO WE ARE THROWING YOU A SHARK-THEMED
COOP BIRTHDAY PARTY.
OH, LORD.
(laughs)
WHOO!
(singsongy) HAPPY BIRTHDAY, MARK.
I DON'T HAVE BIRTHDAYS ANYMORE.
I NEVER THOUGHT MARK WOULD INVITE ME TO HIS PARTY.
(Juliet) YEAH. (laughs)
AND IT SAYS RIGHT HERE, "HAPPY 65th."
(laughs)
(Daymond) THANK YOU.
THERE YOU GO, BIRTHDAY BOY.
THANK YOU, THANK YOU, THANK YOU.
OH, LOOK AT THE CUPCAKE.
(Juliet) ALL RIGHT.
NOW WHO'S READY TO COME PLAY AND PARTY WITH US?
(Juliet and Lucinda laugh)
(Kevin) OKAY, LADIES, LET'S TALK MONEY.
'CAUSE REALLY, THAT'S WHAT "SHARK TANK" IS ALL ABOUT.
CORRECT.
(Lucinda) YES.
YOU SAY YOU SELL OUT ON A SATURDAY.
HOW MANY PARTIES CAN YOU JAM IN ON A WEEKEND?
'CAUSE I ASSUME THAT'S WHEN THE PARTIES ARE.
BETWEEN SIX AND NINE.
HOW MUCH DOES IT COST? WHAT ARE THE PRICE RANGES?
THEY RANGE ANYWHERE FROM $595 TO $4,000.
DEPENDING ON--
$600?
FOR A 2-HOUR PARTY.
FOR 2 HOURS.
AND THAT SUPPORTS HOW MANY KIDS?
15.
THAT'S IT?
HIGH-PRICED.
BUT FOR THE-- FOR THE MARKET, ACTUALLY,
IN LOS ANGELES, WE'RE COMPETITIVELY PRICED.
WHAT'S THE AVERAGE PROFIT PER WEEKEND?
WE MAKE $5,000 EVERY WEEKEND, EASILY, AND SOME.
HOW MUCH DID YOU MAKE LAST YEAR?
$350,000.
WHAT DID YOU BRING FOR THE BOTTOM LINE?
BETWEEN $125,000 AND $150,000.
$150,000.
IS THAT AFTER PAYING YOURSELF OR BEFORE PAYING YOURSELF?
AFTER PAYING OURSELVES.
WE TAKE AROUND $100,000 A YEAR.
BETWEEN THE TWO OF US.
BETWEEN--
(Robert) WOW.
GOOD FOR YOU.
HOW MUCH DOES IT COST TO OPEN UP A SINGLE COOP...
WELL...
RIGHT FROM THE GROUND UP?
FROM THE GROUND UP,
WE GOT A BUSINESS LOAN--
THAT'S HOW WE GOT OUR MONEY--
AND WE HAD A LOAN FOR $125,000.
AND THAT INCLUDES ALL THE LEASE--
HOW MUCH WAS IT?
$125,000.
YOU BUILT THE ENTIRE SPACE FOR $125,000?
WE DID A LOT OF WORK OURSELVES.
WE DID A LOT OF IT OURSELVES.
(Mark) WHY NOT JUST USE THE PROFITS
RECYCLE THEM, AND OPEN UP ANOTHER COOP HERE IN L.A.?
IT'S A BIG CITY.
WE'VE TALKED ABOUT THAT. I MEAN, THE MANUAL LABOR
OF ACTUALLY HAVING A PHYSICAL SPACE--
WE'RE OPEN SEVEN DAYS A WEEK, WE'RE ALWAYS THERE.
WE'RE THERE EVERY DAY. (laughs)
SO OUR IDEA WAS, LIKE, WITH FRANCHISES,
MAYBE WE COULD OPEN 300.
OKAY.
(laughs)
UM, SO THAT WAS KIND OF WHERE WE WERE LOOKING AT THAT.
(Kevin) LOOK, LADIES,
ON THE WAY TO A SUCCESSFUL FRANCHISE,
IF YOU LOOK HISTORICALLY AT THE ONES WHO HAVE DONE IT--
THEY TAKE A GEOGRAPHIC REGION THEY CAN ACTUALLY DRIVE TO,
SET UP 5 TO 15 LOCATIONS,
LEARN HOW TO MANAGE THEM,
AND THEN SAY THIS MODEL WORKS,
AND THEN DO 300 MORE.
'CAUSE I ACTUALLY BELIEVE THAT THIS COULD BE FRANCHISABLE.
BUT YOU GOTTA PROVE IT, BECAUSE IF I WAS GONNA BUY IT FROM YOU,
I'D SAY, "YOU'VE GOT ONE LOCATION."
FOR NOW...
NOT AN INVESTMENT, BUT, BOY, I LOVE YOUR NUMBERS
AND I RARELY SAY THAT TO SOMEBODY ON "SHARK TANK."
(laughs) IT'S TRUE.
WE'RE HERE BECAUSE WE'RE...
WE NEED--
GIVING YOU THE OPPORTUNITY TO GET IN EARLY.
IF YOU GIVE US WHAT WE'RE ASKING FOR,
YOU'RE GONNA GET YOUR MONEY BACK
IN TWO YEARS.
I'M OUT.
(Daymond) YOU WANT $150,000.
IS THAT ALL YOU WANT?
(Juliet and Lucinda) NO.
WE WANT THE EXPERTISE OF SOMEBODY WHO'S A BUSINESSPERSON.
WE'RE CREATIVE PEOPLE. WE'RE MOMS.
WE DON'T COME FROM THE BUSINESS WORLD,
AND OUR BUSINESS HAS EXPLODED.
WELL, THAT HAS TO BE CLEAR, BECAUSE, UH,
YOU KNOW, WE'RE NOT HERE TO EXPLOIT PEOPLE, SO...
WELL, SPEAK FOR YOURSELF.
ALL RIGHT.
YOU WOULD REGRET HAVING DONE THE DEAL WITH ME,
BECAUSE HERE, I WOULDN'T BE ABLE TO ADD ANY VALUE
AND IT'D JUST BE MONEY.
AND I THINK THAT YOU GUYS ARE ROCK STARS,
AND YOU CAN OPEN FOUR OR FIVE OF 'EM,
AND HAVE A-A BIG BUSINESS FOR YOU GUYS.
SO I WOULD ADD NO VALUE. I'M OUT.
ALL RIGHT. THANK YOU FOR SAYING WE'RE ROCK STARS. (laughs)
(laughs)
YOU ARE. YOU ARE.
THANK YOU.
(Robert) I THINK
THE KEY TO THE SUCCESS OF THIS BUSINESS
IS THE TWO OF YOU GUYS.
VERY SUCCESSFUL AT THE ONE LOCATION.
OPEN ANOTHER ONE.
I DON'T UNDERSTAND WHY YOU HAVEN'T DONE THAT.
YOU'VE GOT THE ENERGY TO OPEN 20 OF THEM.
(laughs)
JUST GO AND DO IT.
THANK YOU FOR THE SHARK FIN. I'M OUT.
GUYS, LET ME JUMP IN REAL QUICK.
FIRST, THANK YOU FOR THE BIRTHDAY.
IT'S THE BEST BIRTHDAY I'VE EVER--
OH, GOOD.
THAT I'VE HAD TODAY.
(laughs)
TWO ISSUES. ONE...
HAVING BEEN THROUGH A BUSINESS THAT'S VERY PERSONAL
AND THINKING THAT I HAD TO HAVE MY STAMP ON EVERYTHING
AND KNOWING HOW DIFFICULT IT IS
TO JUST GROW THOSE TYPES OF BUSINESSES,
THAT'S MY FIRST CONCERN.
MY SECOND CONCERN IS,
THERE ARE SO MANY INEXPENSIVE ALTERNATIVES
THAT THE HIP, COOL, DIFFERENT
I THINK WILL WORK IN THE MAJOR MARKETS,
BUT IT'S GONNA BE VERY, VERY DIFFICULT
TO SELL TO MIDDLE AMERICA,
EVEN IF YOU REDUCED YOUR PRICES.
SO FOR THOSE REASONS, I'M OUT.
FOUR OF THE SHARKS ARE OUT.
BARBARA IS LUCINDA AND JULIET'S LAST CHANCE FOR A DEAL.
LUCINDA, YOU SAID A FEW MINUTES AGO TO KEVIN
THAT YOU WILL GET YOUR MONEY BACK WITHIN TWO YEARS.
DID YOU MEAN THAT?
I-I DO MEAN THAT.
WELL, THEN I'LL GIVE YOU THE $150,000 FOR THE 15%.
I DON'T WANT ANYTHING MORE,
BUT I WANT YOUR PERSONAL GUARANTEE
YOU'LL GIVE ME THE MONEY BACK IN TWO YEARS.
(Kevin) WHOA, SHARK.
PERSONAL GUARANTEE.
JUST TO MAKE SURE WE KNOW WHAT'S GOING ON HERE--
SHE'S PROVIDING YOU A LOAN
AND SHE'S REQUIRING AS THE SECURITY
15% EQUITY IN THE BUSINESS.
IT'S CALLED A WARRANT.
ONLY A SAVAGE WOULD ASK FOR THAT.
♪♪♪
♪♪♪
FOUR SHARKS ARE OUT.
BARBARA HAS OFFERED $150,000 FOR A 15% STAKE,
BUT SHE WANTS A PERSONAL GUARANTEE
THAT SHE'LL GET HER MONEY BACK IN TWO YEARS.
ONLY A SAVAGE WOULD ASK FOR THAT.
EVERYTHING YOU WANT.
DO YOU OWN A HOME?
I DO. (laughs)
I--JULIET DOES.
DO YOU OWN A CAR?
I OWN A CAR, YEAH.
SO IF--IF YOUR BUSINESS DOESN'T SUCCEED IN--
SHE OWNS YOUR CAR.
SHE OWNS YOUR CAR AND YOUR HOME.
SO GREEDY ON THIS ONE.
CAN WE TAKE A MINUTE?
IF THEY'RE WILLING TO GIVE 15% OF THEIR BUSINESS
JUST TO GET A LOAN, YOU KNOW WHAT THAT TELLS ME?
THAT BANKS ARE NOT LENDING IN AMERICA.
WHAT ENTREPRENEUR DOESN'T PUT HIS SKIN ON THE LINE?
THEY WANT BARBARA'S EXPERTISE.
BARBARA CAN DO A LOT WITH THIS.
WAIT. THEY'RE BACK.
JUST BEFORE YOU START, LET'S JUST SUMMARIZE WHERE WE'RE AT.
SO...
BARBARA VERY SHREWDLY HAS SAID, "IF YOU WANT MY MONEY,
"I'LL LOAN IT TO YOU FOR 24 MONTHS,
"AND UNDER THE CONDITION THAT YOU PAY ME BACK,
I'LL ALSO TAKE 15% OF THE COOP."
ARE YOU WILLING TO ACCEPT THAT OFFER?
ONE QUICK QUESTION.
WE WILL HAVE YOUR BUSINESS EXPERTISE?
(Barbara) OF COURSE.
I CAN'T HELP MYSELF.
WE ARE THRILLED TO BE IN BUSINESS WITH YOU, BARBARA.
(Mark) ALL RIGHT.
AND NOW--AND NOW I'LL TELL YOU THE TRUTH.
YOU DON'T NEED ANY HELP. YOU'RE GENIUSES.
AWW. THANK YOU.
I FEEL SO GOOD, I SHOULD HUG SOMEBODY.
THANKS, BARBARA.
I'M SO HAPPY.
(Barbara) OH, ROBERT, YOU LOOK SO ADORABLE.
LET ME TAKE A PICTURE. GOT IT.
CAN YOU SEND IT TO ME? MY KIDS ARE GONNA LOVE IT.
NO PROBLEM. I HAVE T-Mobile SUPER-FAST NETWORK.
DONE.
BARBARA IS WARM, BUT YOU CAN TELL
THAT SH--BARBARA HAS SOME REAL SAVVY.
YOU KNOW, SHE'S GONNA KICK US UP A NOTCH.
♪♪♪
ROBERT, THE DEAL'S WITH YOU.
LAST SEASON, TRAVIS PERRY MADE A DEAL WITH ROBERT
FOR HIS GUITAR TEACHING SYSTEM ChordBuddy,
WHICH WAS INSPIRED BY HIS DAUGHTER.
LET'S SEE WHAT THEY'RE UP TO NOW.
♪♪♪
(Robert) WE'RE HERE IN DETROIT TODAY.
TRAVIS THINKS I BROUGHT HIM UP FOR ANOTHER BUSINESS MEETING,
BUT I'VE GOT A BIT OF A SURPRISE FOR HIM.
HEY, BUDDY. (laughs)
(laughs)
YOU KNOW, I TOLD YOU THAT WE'D GET YOU A COUNTRY ARTIST
TO HELP US, UH, SELL THE PRODUCT,
AND I THINK I GOT YOU SOMEBODY.
HE'S GOT A CONCERT HERE TONIGHT.
COUNTRY SUPERSTAR-- JOHN RICH!
WHAT?
(laughs)
OH, MY GOD!
OH, MAN! (laughs)
WHAT'S UP, BUDDY?
(Robert) JOHN IS A SUCH AN AUTHENTIC GUY.
COMES FROM NOTHING.
HE HAD A DREAM, AND HERE HE IS--A HUGE STAR.
AND ChordBuddy ALLOWS ANYBODY TO PLAY GUITAR
AND MAKE THEIR DREAMS COME TRUE.
CONGRATULATIONS ON A GREAT AMERICAN INVENTION.
THANK YOU.
I DON'T SHAKE MUCH.
(laughs)
BUT--BUT I'M SHAKING.
(Travis) I'VE BEEN A FAN OF JOHN RICH FOR YEARS.
AND TO HAVE HIM TO COME AND SAY, "THIS IS A GREAT PRODUCT,"
I'VE GOT CHILL BUMPS RIGHT NOW.
CAN WE PLAY A SONG TOGETHER?
I'D BE HONORED.
(John) I THINK TRAVIS INVENTED ChordBuddy
FROM HIS HEART.
HE REALLY WANTED TO COME UP WITH SOMETHING
THAT WOULD ALLOW PEOPLE THE GIFT OF MUSIC,
AND I-I REALLY THINK
THIS THING IS GONNA BECOME A WORLDWIDE PHENOMENON.
♪ I WAS WORSE OFF ♪
WHOO!
♪ UNTIL I FOUND ♪
(Travis) SINCE PARTNERING WITH ROBERT,
IT HASN'T EVEN BEEN 12 MONTHS,
AND WE'RE ALREADY OVER $1.5 MILLION.
"SHARK TANK" CHANGED MY LIFE.
I'M JUST GLAD ROBERT TOOK THE BAIT.
CAN I GET AN AMEN THERE?!
YEAH! OH!
(Robert) AMEN.
ROCK 'N' ROLL!
(man) NEXT INTO THE SHARK TANK IS DONNA McCUE,
WHO HOPES TO GET THE SHARKS' ATTENTION
WITH HER UNIQUE TAKE TO A CLASSIC DESSERT.
♪♪♪
HELLO. MY NAME IS DONNA McCUE.
AND I'M THE PRESIDENT AND FOUNDER
OF FAT *** FUDGE.
I'M ASKING FOR $250,000
FOR 5% OF MY COMPANY.
WOW.
(Mark laughs)
WHAT IS FAT *** FUDGE, YOU ASK?
IT'S MY GRANDMOTHER'S RECIPE
THAT I TOOK UP A HUNDRED NOTCHES.
IT'S MADE WITH GOAT MILK.
IT'S LACTOSE FREE, GLUTEN FREE.
BUT IT'S NOT GLUTTON FREE. (laughs)
(laughs) OH, OH.
THAT ALWAYS MAKES ME LAUGH.
CHOCOLATE-- IT MAKES PEOPLE HAPPY.
SO INSTEAD OF TALKING ABOUT IT,
I WANT TO GIVE YOU A LITTLE TASTE
BEFORE WE GET THE QUESTIONS.
YOU COULD TAKE ONE.
TAKE YOUR TIME, AND YOU CAN JUST ENJOY.
THANK YOU, DONNA.
YOU'RE WELCOME.
THANK YOU, DONNA.
(Robert) DONNA, WHICH IS THE BEST ONE?
WELL, YOU KNOW WHAT I LOVE THE BEST IS THE VANILLA.
BUT THAT'S MY PREFERENCE.
SMOOTH.
WHOA.
(Barbara) DELICIOUSLY SMOOTH.
(Donna) THIS CHOCOLATE--
(Barbara) MMM.
I'LL TELL YOU WHY IT'S SO GOOD.
YEARS AGO,
I ALWAYS WANTED TO BE IN SHOW BUSINESS,
AND EVERY TIME I DIDN'T GET A PART OR SOMETHING,
INSTEAD OF BEAT MYSELF UP,
I WOULD BEAT THAT CHOCOLATE.
SO I GOT REALLY GOOD AT MAKING CHOCOLATE--
YEARS OF NOT GETTING THINGS THAT I WANTED.
IT WAS AT MY 60th BIRTHDAY, MY WHOLE FAMILY--
DOUGIE, DONNA, DANA, DEBBIE, DENNIS, DARYL, DANNY,
AND MARY-KATHERINE--
WE ALL CAME TO MY PARTY, PLUS ALL MY FRIENDS...
(laughs)
I GAVE THEM LITTLE GOODIE BAGS BECAUSE THIS IS A SPECIAL TREAT.
DONNA, I GOTTA KNOW-- MARY-KATHERINE?
WHY NOT A "D"?
MY MOTHER PRAYED TO THE *** MARY
THAT SHE WOULDN'T HAVE ANY MORE KIDS,
AND IF SHE DIDN'T HAVE ANY MORE KIDS,
SHE'D NAME IT AFTER HER. (laughs)
SO MY OLDER BROTHER SAID TO ME WHEN HE HAD THAT FUDGE,
HE SAID, "YOU SHOULD SELL IT."
AND HE SAID, "WHAT WOULD YOU CALL IT?"
AND I SAID, "I'LL CALL IT
"WHAT YOU USED TO CALL ME GROWING UP--
FAT ***."
AND THAT--THAT IDEA
NEVER LEFT MY MIND.
I SAW IT. I GOT, LIKE, CHILLS.
I KNEW THAT THIS WOULD BE A HIT.
I HAD A DREAM ABOUT YOU LAST NIGHT.
I'LL HAVE TO TELL YOU.
(Robert) WHOA!
(Barbara) WHOA, BABY.
(laughs)
NO, I DO. (laughs)
I DO. I DO. I SEE IT.
DONNA, YOU'RE SCARING ME. YOU'RE SCARING ME.
(both laughing)
GIVE US YOUR NUMBERS.
OKAY.
I HAVE A DEAL WITH WHOLE FOODS. TA-DA!
LET ME JUST TELL YOU WHAT'S HAPPENING.
(Robert) BUT DO YOU HAVE SALES IN THE LAST 12 MONTHS?
YES!
WHAT ARE THEY?
(laughs)
WHAT ARE THEY?
IT'S SO EXCITING. OKAY.
(Kevin) DONNA.
YES.
WHAT ARE THE SALES IN THE LAST 12 MONTHS?
HOW MANY DOLLARS?
OKAY.
$60,000.
$60,000?
I'M NOT AS EXCITED AS YOU WERE.
WHAT?
(Barbara) OH, MY GOD.
THAT'S NOT GOOD?
NO! DONNA.
OH, MY GOD.
DONNA, WHATEVER YOU'RE ON, DON'T GIVE IT TO KEVIN.
THAT'S NOT GOOD? LISTEN, I'M JUST ONE PERSON.
(Robert) THAT'S SO LOW.
HUH?
THAT'S SO LOW.
NO, LISTEN-- LISTEN TO THIS--
THE NAME ALONE IS WORTH A MILLION.
OH, CAN I JUST TELL YOU ANOTHER REALLY EXCITING THING?
NOW IMAGINE ME-- I'M IN A FARMERS' MARKET.
THIS IS WHERE I STARTED.
ALL THESE PEOPLE COME OUT,
AND THEY WIPE ME OUT OF ALL MY PRODUCT,
LIKE IN A WIND WHIRL.
THE NAME BRINGS THEM TO ME,
BUT THE TASTE KEEPS PEOPLE COMING BACK.
(Barbara) AH.
THIS IS A BRAND.
THIS HAS ENDLESS POSSIBILITIES.
FIRST OFF, I THINK YOU'RE A GREAT ACTRESS.
OH, THANK YOU.
BUT WHAT DO YOU DO?
YOU'RE GOING FROM FARMERS' MARKET TO FARMERS' MARKET
AND SELLING YOUR PRODUCT BY YOURSELF?
YES, AND THEN THE SECOND PART OF IT--
NOW THAT I'M IN WHOLE FOODS, THEY'RE PUTTING IN ORDERS,
AND THERE'S ANOTHER--
(Kevin) WHEN YOU SAY WHOLE FOODS,
YOU HAVE ONE STORE YOU'RE SELLING TO?
I HAVE TWO STORES.
DO YOU HAVE A PURCHASE ORDER?
YES! OH. (laughs)
FOR TWO STORES?
CAN I SAY "YES!"? (laughs)
(Barbara chuckles)
♪ HEE-HEE-WHOO ♪
(Kevin) HERE'S THE PROBLEM, DONNA.
(laughs)
'CAUSE, YOU KNOW, IN THE END,
THE REALITY IS ABOUT MONEY, OKAY?
I KNOW.
WE'RE DEALING WITH $60,000 IN SALES.
I BELIEVE THAT PROBABLY YOU'RE BREAKING EVEN ON THAT.
AREN'T WE SUPPOSED TO NEGOTIATE, BABE?
WELL, HERE'S WHAT--WE'LL START THE NEGOTIATION THIS WAY--
I'LL GIVE YOU $250,000...
FOR 1,000% OF FAT *** FUDGE.
I'M--1,000%?
BUT ISN'T THAT TOO MUCH?
1,000%?
(Robert) OH, MY GOD.
EXACTLY MY POINT.
IT'S 1,000%. IT'S, LIKE, YOU KNOW--
HOW--HOW LONG HAVE YOU AND BARBARA BEEN FRIENDS?
(sharks laugh)
YOU DON'T THINK THAT I HAVE SOMETHING SPECIAL, HONESTLY?
I FEEL I CAN BRING SWEETNESS AND HAPPINESS TO PEOPLE
AND ALSO I FEEL I DESERVE MY OWN TV SHOW.
(sharks laugh)
(Robert) YOU GOTTA BE KIDDING ME.
(Kevin) YOU'RE INTERESTING.
THE PRODUCT IS GOOD.
SO THAT'S WHAT WE HAVE. AND THAT'S ALL YOU--
STIRRING IT UP IN THE KITCHEN, PACKAGING IT, AND SELLING IT.
IF YOU WANT TO MAKE THIS A BIG BUSINESS,
ONE THAT'S WORTH $5 MILLION ONE DAY,
YOU NEED A PARTNER, BECAUSE YOU'RE NUTS.
IN A NICE WAY, I'M SAYING IT. YOU NEED A PARTNER.
YOU NEED SOMEBODY THAT SAYS, "LISTEN, DONNA,
"YOU MAKE THE FUDGE, AND I'M GOING TO FIGURE OUT
HOW TO MAKE THIS MUCH BIGGER."
THAT'S WHAT'S MISSING IN YOUR PRESENTATION.
'CAUSE EVERY ONCE IN A WHILE, LIGHTNING STRIKES
AND SOMEBODY DREAMS UP A COOKIE
OR A PIECE OF FUDGE WITH A CRAZY NAME,
AND THEY BECOME RICH.
YOU'RE HALF-BAKED RIGHT NOW.
YOU'RE NOT FULLY COOKED. YOU NEED THE OTHER PIECE.
YOU DIDN'T BRING IT WITH YOU, SO UNFORTUNATELY,
MR. WONDERFUL HAS TO SAY...
I'M OUT.
KEVIN, CAN I SAY TO YOU...
PLEASE, DONNA.
THE DIFFERENCE BETWEEN YOU AND CHOCOLATE--
WANT ME TO TELL YOU?
PLEASE.
CHOCOLATE DOESN'T DISAPPOINT.
(laughs) DONNA, YOU'RE A SWEETHEART.
YEAH!
I LOVE YOU, AND I LOVE YOUR FUDGE.
I THINK I FOUND YOUR OTHER PARTNER.
SHE'S JUST AS CRAZY AS YOU.
(laughs)
I'M INTRODUCING YOU TO SKINNY-*** BARBARA.
(Barbara) DONNA, DO YOU MIND IF I GIVE YOU
SOME HONEST FEEDBACK?
YES.
OKAY.
YOU KNOW WHAT I SEE IN FRONT OF ME?
A WILDLY ENTHUSIASTIC LADY WHO LIKES TO MAKE FUDGE.
I DON'T THINK THIS HAS A THING TO DO WITH MONEY.
I THINK ALL YOU WANT TO DO IS GET OUT THERE AND MEET PEOPLE,
GET ATTENTION, SHARE YOUR ENTHUSIASM FOR YOUR PRODUCT,
AND THAT'S WHAT YOU'RE DOING ALREADY.
THERE'S NO ROOM IN THIS DEAL FOR ANY KIND OF A PARTNER.
WHY DON'T YOU JUST KEEP DOING WHAT YOU'RE DOING?
I'M OUT.
I DON'T KNOW IF ANYBODY ELSE SAID IT--THE STUFF IS GREAT.
THANK YOU VERY MUCH.
UH, AND I COULD SIT HERE AND WATCH YOU ALL DAY BECAUSE...
DEFINITELY. A GOOD SHOW.
I ENJOY YOUR ENERGY.
BUT, UM...
THIS IS NOT A BUSINESS FOR ME SO I'M OUT.
DONNA, I THINK--I THINK-- YOU--YOU--YOU--
I'M OUT.
(Kevin) OKAY, MARK. BRING IT IN.
DONNA, I DON'T THINK YOU NEED ME.
I THINK YOU'RE GONNA BE JUST FINE ON YOUR OWN.
SO I'M OUT.
OKAY. IT WAS FUN.
THANK YOU.
YOU'RE WELCOME.
BYE.
♪♪♪
(Robert) BARBARA.
(exhales deeply)
BARBARA.
OH, MY GOD.
FUDGE IS GREAT, THOUGH.
YEAH, THE FUDGE IS DELICIOUS.
I THINK SHE'S MAKING BROWNIES, NOT FUDGE.
(Barbara laughs)
NEXT INTO THE TANK IS SCOTT MARTIN,
WHO'S SEEKING TO MODERNIZE A HOLIDAY TRADITION.
♪♪♪
GREETINGS. I'M SCOTT MARTIN.
BUT I'M MORE AFFECTIONATELY KNOWN AS "SCOTTY CLAUS"
AND THE OWNER OF THE LIVING CHRISTMAS COMPANY.
(laughs)
I'M HERE TODAY TO OFFER ONE OR ALL OF YOU
A 30% STAKE IN MY COMPANY
FOR $150,000.
THIS CHRISTMAS STORY STARTED WHEN I WAS 17 YEARS OLD,
DELIVERING CHRISTMAS TREES.
IT IS ABSOLUTELY THE MOST FUN
A TEENAGER CAN HAVE WHILE WORKING.
EVERYBODY'S HAPPY TO SEE YOU--
HUGS, KISSES, MILK AND COOKIES.
THE ARRIVAL OF A CHRISTMAS TREE
MEANS THAT CHRISTMAS HAD BEGUN IN THE HOUSE.
BUT THAT INTENSE JOY IS CURBED
WHEN YOU DRIVE BY TWO WEEKS LATER
AND SEE THAT SAME TREE THAT I STRUGGLED TO GET IN THE HOUSE
THROWN OUT WITH THE REST OF THE TRASH.
AND THAT'S WHEN IT HIT ME--
WHY CAN'T I DELIVER A LIVE TREE
IN A CONTAINER LIKE THIS BEFORE CHRISTMAS
AND PICK IT UP AFTERWARDS?
IN 2008, I TOOK MY NAPKIN SKETCH
AND TURNED IT INTO A WEB SITE.
WE RENTED A HUNDRED TREES
AND DELIVERED THEM OUT OF THE BACK OF MY PICKUP TRUCK.
LAST YEAR WE DELIVERED OVER 1,300 TREES.
THE TIME HAS COME TO INVITE A PARTNER.
YOU SEE, JUST BECAUSE IT'S A GOOD IDEA,
IT DOESN'T MAKE MY TREES GROW FASTER.
BUT MONEY DOES.
AND WITH AN INVESTOR
AND THE RIGHT PARTNER,
WE CAN TAKE THIS NATIONAL
AND CHANGE THE WAY THE COUNTRY CELEBRATES CHRISTMAS.
THANK YOU.
SCOTTY CLAUS, HOW MUCH DO YOU RENT THE TREES FOR?
THE AVERAGE TREE IS ABOUT $100.
IT GOES UP TO $200.
SO IT MIGHT BE MORE EXPENSIVE TO RENT A $200 TREE FROM YOU
THAN IT WOULD BE TO BUY IT LOCALLY?
RIGHT.
OH.
WE'RE DEFINITELY NOT TRYING TO GO AFTER THAT MARKET.
(Daymond) WHY WOULD I PAY FOR THAT
IF I COULD BUY IT AT THE SAME PRICE?
WE DELIVER IT TO YOUR HOUSE AND WE PICK IT UP AFTERWARDS.
YOU DON'T WANT A TREE.
YOU'RE LOOKING FOR THE SERVICE OF A TREE.
HALF OF THE FUN OF THE TREE
IS GOING TO PICK IT OUT WITH THE FAMILY,
YOU KNOW--
(Barbara) ONLY FOR THE FIRST FIVE YEARS.
AFTER THAT, IT'S A PAIN IN THE NECK.
YEAH.
(Robert) TRUE, BARBARA.
WHAT IS THE PROCESS OF PICKING IT OUT?
RIGHT NOW, YOU CAN GO ON-LINE.
WE HAVE FIVE DIFFERENT TREES TO CHOOSE FROM.
WE HAVE ELVES-- EVERY ONE HAS CHRISTMAS NAMES--
WE HAVE JUSTIN SEASON, GREGNOG.
THESE GUYS DELIVER THAT TREE TO YOUR HOUSE.
(laughs)
THEN PICK IT UP AFTERWARDS.
HOW MANY MARKETS ARE YOU IN?
RIGHT NOW, IT'S SOUTHERN CALIFORNIA.
(Robert) I LIKE THE IDEA.
LIKE BARBARA SAID, FIRST FIVE YEARS, GOING IN THE--
IN THE FOREST, CUTTING DOWN MY OWN TREE WAS WONDERFUL.
AFTER THAT, I WANT SOMEBODY TO DELIVER IT.
GOING INTO THE FOREST AND CUTTING IT DOWN?
I DIDN'T SAY GO IN THE FOREST AND CUTTING IT DOWN.
(Mark and Barbara laugh)
IS THAT CROATIAN?
NO! THAT'S THE KIND OF...
(Scott) LET ME TELL YOU, THERE'S PEOPLE--
HARDY GUY I AM.
I GO INTO THE FOREST, I CUT MY OWN TREE, MARK.
SO THE CACHE IS, IT'S THE SAME TREE EVERY YEAR,
IT BECOMES PART OF OUR FAMILY?
YEAH.
THE WHOLE SYMBOL ABOUT HAVING A TREE
IS SOMETHING THAT'S ALIVE IN YOUR HOME,
AND THE DIFFERENCE OF HAVING
SOMETHING SLOWLY DYING IN THE CORNER
OR PLASTIC IN THE CORNER AS OPPOSED TO LIVE TREE
IS A COMPLETELY DIFFERENT EXPERIENCE.
WHAT ARE THE SALES?
$150,000.
$150,000 IN YOUR SEASON, WHICH IS BASICALLY ONE MONTH.
YEAH, IT'S A 2-MONTH SEASON.
AND WHAT'S YOUR PROFIT ON THAT?
$33,000.
AND THAT'S AFTER PAYING YOURSELF?
NO, I HAVE NOT PAID MYSELF.
DO I HAVE TO PAY IF I KILL THE TREE?
ON THE WEB SITE, IT SAYS THAT THERE IS A PENALTY.
YOU GO ON THE NAUGHTY LIST AND--AND YOU GET FINED.
THE FACT OF THE MATTER IS, IF SOMEONE'S GONE
OUT OF THEIR WAY TO RENT A LIVING CHRISTMAS TREE,
THEY TEND TO TAKE CARE OF IT.
WHAT DO YOU NEED?
SO I NEED CAPITAL AND INFRASTRUCTURE.
I NEED A NURSERY WITH AN AUTOMATIC IRRIGATION SYSTEM.
I NEED TO BE ABLE TO PLANT MY OWN TREES FROM SEEDLINGS
AND GROW THEM ALL THE WAY THROUGH.
THEN I CONTROL MY INVENTORY.
LET ME TELL YOU ALL THE WAYS I HATE THIS BUSINESS.
NUMBER ONE, I HATE IT
BECAUSE IT'S ONLY FOR SIX WEEKS OF THE YEAR.
SURE.
NUMBER TWO, I HATE IT
BECAUSE IT'S MORE EXPENSIVE THAN JUST BUYING IT.
SO MY MARKET IS ONLY PEOPLE
THAT CUMBAYA AND DON'T WANT TO KILL AT TREE.
SURE.
AND THEN NUMBER THREE, I HATE IT
BECAUSE THE COMPETITION IS A PLASTIC TREE
THAT I CAN GET THAT LOOKS IDENTICAL.
IF I HID A PLASTIC TREE IN HERE RIGHT NOW,
YOU COULDN'T TELL THE DIFFERENCE.
I REALLY HATE IT. I'M OUT.
THIS IS VERY, VERY ATTRACTIVE AND ENDEARING TO ME.
IT'S A GREEN PLAY. I LOVE THAT.
I HAVE A-A TREE FARM.
I'VE BEEN DYING TO BE IN BUSINESS WITH A GUY
WITH A HANDLEBAR MOUSTACHE.
(sharks laugh)
ALL RIGHT? THERE'S ONLY ONE THING
HIGHER ON MY PRIORITY LIST THAN BEING IN BUSINESS
WITH A GUY WITH A HANDLEBAR MOUSTACHE.
YOU KNOW WHAT THAT IS?
WHAT'S THAT?
BEING IN BUSINESS WITH A WOMAN WITH A HANDLEBAR MOUSTACHE.
(all laugh)
I'LL KEEP A LOOKOUT FOR YOU.
I KNOW THE CHALLENGES YOU'RE GONNA FACE.
YOU HAVE THE PRICE OF GAS GOING UP,
SO NOW YOU'RE GONNA GO AND SHIP THESE TREES,
THEN YOU'RE GONNA PICK 'EM UP AND BRING 'EM BACK, RIGHT?
THE TREES GROW, YOU NEED TO ACQUIRE MORE LAND.
THAT MEANS, MORE FERTILIZER, THAT MEANS MORE WATER,
THAT MEANS MORE HAVING TO DEAL WITH DEER AND OTHER THINGS
THAT ARE KILLING THE TREES.
AND THE--THE ANSWERS YOU'RE GIVING ME,
YOU'RE GONNA FIGURE OUT
ARE A LITTLE HARDER THAN YOU THINK THEY'RE GONNA BE.
SO I'M OUT.
VERY SWEET OF YOU.
(Robert) SCOTTY CLAUS, I DON'T WANT TO BE A GRINCH.
I'M NOT SEEING THE GROWTH CURVE.
OKAY.
I-I THINK IT'S A GOOD BUSINESS FOR YOU,
NOT AN INVESTMENT FOR ME.
I'M OUT.
OKAY. FAIR ENOUGH.
SO AND--AND--AND-- AND--AND SO WHAT I'M OFFERING,
IT'S A $2-BILLION MARKET.
ONE THING WE KNOW--
THAT CHRISTMAS IS NOT GONNA BE CANCELED NEXT YEAR.
IT'S GONNA HAPPEN.
I FEEL LIKE I'VE--I'VE SOLVED
THE DEFORESTATION PROBLEM, THE CONVENIENCE PROBLEM,
BY WHAT WE'RE DOING.
(Barbara) BUT HERE'S THE RUB, RIGHT?
YOU'VE BEEN IN BUSINESS FOUR YEARS,
AND YOU HAD A $33,000 PROFIT.
THINK ABOUT THAT.
I DON'T DOUBT YOUR PASSION.
SURE.
I'M OUT 'CAUSE I JUST DON'T BELIEVE
THERE'S ENOUGH PROFIT IN THIS BUSINESS.
FAIR ENOUGH. THANK YOU.
OKAY. WHAT IS NOT BEING TOLD HERE
IS WHAT I'M ABLE TO DO
WITH THE INVESTMENT I'VE MADE OVER THE LAST FOUR YEARS,
THE DOZENS OF PEOPLE I'VE EMPLOYED,
AND THE VALUE I'VE BEEN ABLE TO CREATE
BECAUSE I TOOK SOMETHING THAT USED TO BE THROWN AWAY
AND GAVE VALUE TO IT.
I HIRE VETS.
I MEAN, PERFECT GUYS FOR DELIVERING CHRISTMAS TREES.
GUYS WHO KNOW LOGISTICS, KNOW HOW TO GET THE WORK DONE.
BUT HAVING A BUSINESS THAT IS ABLE TO GIVE BACK AND MAKE MONEY
AND MAKE A PROFIT IS MEANINGFUL.
AND SO I GIVE PEOPLE MEANINGFUL JOBS DURING THE HOLIDAYS
THEY WOULDN'T HAVE HAD OTHERWISE.
I SET THIS UP AS A FOR-PROFIT COMPANY
TO DO WELL BY DOING GOOD.
(Mark) SCOTTY CLAUS
I-I'M A BELIEVER IN CONVENIENCE WITH A CONSCIENCE.
I THINK YOU HAVE SOME REAL CHALLENGES
FROM A CAPITAL PERSPECTIVE.
RIGHT.
I THINK YOU HAVE SOME PRICING CHALLENGES.
I THINK YOU'RE GONNA HAVE TO TURN OFF
THE "LET'S JUST BE THE NICE GUY SCOTTY CLAUS"--
TO THAT POINT, I'M ON THE "SHARK TANK."
THIS ISN'T, YOU KNOW, THE GUPPY POND.
I CAME HERE WITH THE IDEA THAT
I'VE GOTTA BE WILLING TO MAKE SOME CHANGES.
SO IF I GAVE YOU THE $150,000,
HOW MANY MORE JOBS DO YOU THINK YOU CAN CREATE?
HOW MANY MORE VETERANS DO YOU THINK YOU COULD HIRE?
OH, MAN, I COULD-- I MEAN, AS I KEEP GROWING,
I'M--I'M DOUBLING THE JOBS BECAUSE IT--IT--
I NEED A SET NUMBER OF PEOPLE TO DELIVER THE SET NUMBER OF TREES.
I MEAN, THAT'S--THAT'S-- IT'S 200 JOBS.
OKAY.
WHAT ARE YOU GONNA DO, MARK?
IS CHRISTMAS GONNA COME EARLY?
HERE'S WHAT I'M WILLING TO DO.
I'LL GIVE YOU THE $150,000...
AND I'LL TAKE 40%...
AND I'LL PROVIDE YOU SUPPORT.
OKAY.
YOU'RE THE LANDSCAPE ARCHITECT.
SO ALL THAT SIDE OF IT IS ALL YOU.
WHAT I KNOW INSIDE AND OUT.
WE'RE GONNA HAVE TO WORK TOGETHER TO FIGURE OUT
HOW TO SCALE THIS THING.
WHAT DO YOU SAY, SCOTTY CLAUS?
(laughs) THAT TO ME SOUNDS LIKE A DEAL, MARK.
LET'S DO IT.
ALL RIGHT.
(Robert) WOW.
(chuckles)
(laughs and speaks indistinctly)
(laughs)
SANTA CLAUS REALLY EXISTS.
(Mark) NO. I'M NOT SANTA CLAUS.
TRUST ME. IF I CAN'T MAKE MONEY AT IT, IT'S NOT HAPPENING.
WE'LL CREATE A WEB SITE,
WE'LL PUT THE PICTURES OF THE GUYS THAT WE HIRED
AND LET THEM SHOW WHO DELIVERED THE TREE.
RIGHT.
WE'LL CREATE A HISTORY OF EVERY TREE,
THE FAMILIES THAT HAVE OWNED IT
SO THERE'S MORE CONNECTION.
THERE'S SO MANY POSITIVES ABOUT THIS
THAT IF THE ONLY THING KEEPING YOU FROM DOING THIS
A THOUSAND TIMES MORE IS A LITTLE BIT OF MONEY,
MONEY'S EASY.
YEAH.
DOING THE RIGHT THING ISN'T ALWAYS.
(speaks indistinctly)
APPRECIATE IT, SCOTTY.
AWESOME.
THANK YOU.
THANK YOU, ALL.
BOY, DID NOT SEE THAT COMING.
(Daymond) I DIDN'T SEE IT EITHER.
I CAN'T EXPLAIN HOW EXCITED I AM RIGHT NOW.
IT'S BEEN SOMETHING I HAVE WORKED SO HARD,
WENT THROUGH SO MANY LONG DAYS, LONG NIGHTS
WORKING AT THIS, BELIEVING IN THIS,
AND THE FACT THAT MARK CUBAN BELIEVES IN IT, TOO,
IS SO INVIGORATING AND SO EMPOWERING
THAT I-I CAN'T WAIT TO SHARE IT WITH THE WORLD.
♪♪♪
NEXT UP ARE CONNOR PASTOOR AND JILLIAN JACCARD,
AMBITIOUS COLLEGE STUDENTS WHO BELIEVE THEY HAVE
THE NEXT BIG FASHION ACCESSORY FOR WOMEN.
♪♪♪
HI, I'M JILLIAN JACCARD, AND THIS IS CONNOR PASTOOR,
AND WE'RE THE OWNERS OF THE PARTIE POCHE GROUP.
WE ARE SEEKING A $100,000 INVESTMENT
FOR A 20% EQUITY STAKE IN OUR COMPANY.
WE'RE BOTH STUDENTS A LOYOLA MARYMOUNT UNIVERSITY,
WHERE I'M PURSUING A DOUBLE MAJOR
IN ACCOUNTING AND FINANCE,
AND CONNOR IS GETTING HIS M.B.A.
WHEN I USED TO LIVE WITH A BUNCH OF SORORITY GIRLS,
I WITNESSED FIRSTHAND
A FEMALE PHENOMENA OF OUR GENERATION.
WHEN GOING OUT FOR A NIGHT ON THE TOWN,
IT'S COMMONPLACE FOR GIRLS TO STUFF THEIR PHONE,
CARDS, I.D.
INTO THEIR BRAS...
REALLY?
TO AVOID THE HASSLE OF CARRYING A PURSE.
YES, REALLY.
STOP THE MADNESS.
OUR PRODUCT IS PARTIE POCHE,
A NOVEL NIGHTLIFE FASHION ACCESSORY
THAT CONVENIENTLY REPLACES A HANDBAG OR CLUTCH
BY CARRYING A WOMAN'S ESSENTIALS AROUND HER LEG.
NO ONE WANTS TO LUG AROUND A BULKY HANDBAG
WHEN THE WHOLE PURPOSE OF GOING OUT IS TO DANCE,
BE CAREFREE, AND HAVE FUN.
AND NOT ONLY DOES IT LOOK ADORABLE,
BUT IT'S SO COMFORTABLE THAT I FORGET I'M WEARING IT.
AS PART OF THIS TARGET MARKET,
I CAN ASSURE THAT PARTIE POCHE WILL SELL.
SO REMEMBER, WHEN YOU PARTY,
PARTIE POCHE.
JILLIAN, YOU SAY "WILL SELL." HAVE YOU SOLD ANYTHING?
YES, WE SOLD 200 ON OUR WEB SITE.
AND THEN ALL OF A SUDDEN, WE WERE SHIPPING THESE THINGS
TO MAINE, TO VERMONT, TO VIRGINIA...
BUT IF PEOPLE DIDN'T KNOW YOUR NAME...
ALL OVER.
HOW DID THEY FIND YOUR WEBSITE?
BECAUSE PEOPLE ARE ACTIVELY
LOOKING FOR A WAY TO SOLVE THIS PROBLEM.
HOW MUCH DOES EACH UNIT SELL FOR?
THE MAJORITY OF THOSE UNITS SOLD FOR $17.
BUT WE STARTED BUMPING UP BETWEEN $17
ALL THE WAY TO $39 TOWARD THE END OF THE 200,
AND WE ENDED UP SELLING ABOUT 27 OF THEM
AT THE $39 PRICE POINT.
AND IS THERE ANYTHING PROPRIETARY ABOUT THIS?
DO YOU HAVE A PATENT?
WE DO HAVE A PROVISIONAL PATENT.
YOU'RE TELLING ME, FOR $100,000 I GET 20%.
(Connor) CORRECT.
AND BECAUSE YOU'RE SMART M.B.A.s
AND ACCOUNTING PEOPLE,
WHAT ARE YOU SAYING YOUR BUSINESS IS WORTH RIGHT NOW?
SO WE'RE GONNA STEER YOU CLEAR--
WHAT IS IT? GIVE ME THE NUMBER.
LET ME--LET ME-- LET ME PREFACE THAT--
PROFESSOR O'LEARY WANTS TO KNOW THE ANSWER.
LET ME--LET ME TRY AND STEER YOU CLEAR OF A VALUATION--
ARE YOU GROVELING AND BEGGING 'CAUSE YOU KNOW THE ANSWER
IS CRAZY?
WE WANT--HE WANTS TO KNOW--
OKAY. CONNOR, CAN I TAKE IT?
WHAT'S CRAZY IS TO TRY
TO VALUE A COMPANY THAT IS PRE-REVENUE.
(Connor) IT MAKES NO SENSE. WE COULD DO DISCOUNTED CASH FLOW--
WELL DONE.
POINT WELL DONE.
LET ME VALUE IT.
YOU KNOW WHAT? BUT THE PROBLEM IS THAT--IS--
(Jillian) BUT I CAN TALK DISCOUNTED CASH FLOWS
AND INTANGIBLE ASSETS RIGHT NOW.
ONE SECOND. ONE SECOND.
(Kevin) 'CAUSE YOU KNOW-- JILLIAN, YOU KNOW...
BRING IT ON. LET'S DO IT.
YOU'RE GONNA SELL EXACTLY HOW MANY IN 12 MONTHS?
YOU DON'T KNOW.
YES. WELL, I DON'T KNOW EXACTLY.
(laughs)
HOW MUCH ARE YOU SAYING YOUR COMPANY IS WORTH?
OKAY, 200--IF WE SELL 200,000 UNITS IN THE FIRST YEAR--
NO, WAIT.
NO, NO, NO. YOU ASKED FOR--
THE QUESTION IS, WHEN YOU IMPUTE A VALUE ON THE COMPANY--
I GIVE YOU $100,000, YOU GIVE ME 20% OF THE STOCK--
WHAT ARE YOU TELLING ME YOUR COMPANY'S WORTH TODAY?
I BASED 2 VALUATION METHODS OFF OF 200,000 UNITS OF SALES
OR 100,000 UNITS OF SALES IN THE FIRST YEAR.
THAT BROUGHT US TO A $4.3-MILLION VALUATION
AND THEN A $1.9-MILLION VALUATION.
YOU STILL HAVEN'T GIVEN US THE ANSWER.
THERE IS A NUMBER THAT YOU HAVE VALUATED YOUR COMPANY AT--
$500,000 IS WHAT--
THERE YOU GO. THAT'S ALL.
BUT--BUT THAT'S NOT WHAT I'M VALUING IT AT
BECAUSE I REALIZED THAT'S IT NOT JUST THE CASH.
BUT IF YOU CAN MAKE A VALUE 500--
THE CASH IS JUST AN ASSET--
OKAY, YOU KNOW WHAT? YOU WASTED EVERYBODY'S TIME.
'CAUSE THEY HAD--THEY DON'T-- THEY'RE NOT CREATIVE
TO THINK ABOUT ANYTHING ELSE
AND THEY HAVE NO ABILITY TO INCREASE THE VALUE.
WHY ISN'T IT--
SO THIS IS THE DEAL--
WELL, I BET YOU SHE'LL BE REAL ACCURATE ABOUT MY MONEY
WHEN IT COMES OVER THERE, RIGHT?
TELL US--
SHE'LL HAVE AN ACCURATE VALUATION OF THAT, WOULDN'T SHE?
TELL US ABOUT HOW MUCH IT COSTS TO MAKE THESE
AND HOW LOW YOU THINK YOU CAN GET YOUR COST,
UM, BASED OFF OF, UM, VOLUME.
(Connor) SO RECENTLY WE PARTNERED WITH A MANUFACTURER
AND, UH, SHE QUOTED US AT $4, SAID AND DONE.
WE HAVE THE INFRASTRUCTURE TO SUPPORT THE 200,000 UNITS
THAT I SAID WE CAN SELL.
AND I CAN BREAK-- IF WE CUT IT IN--
DOWN INTO 100,000 UNITS FOR ONE YEAR,
THAT'S $1.9-MILLION VALUATION.
I CAN--I CAN BREAK OUT--
I'M IN THIS SPACE.
IT SOUNDS REALLY GOOD, WHAT YOU'RE SAYING.
THANK YOU.
IT'S WORTH NOTHING.
WELL, WE HA--
NOT YET. IT CAN'T BE WORTH ANYTHING,
WHICH IS WHY WE DON'T TRY TO VALUATE IN FRONT OF IT.
BUT YOU'RE ASKING--
YOU JUST SAID "NOT YET. IT CAN'T BE WORTH ANYTHING,"
BUT YOU WANT
A HALF-A-MILLION-DOLLARS VALUATION ON OUR COMPANY.
I HAD A MEETING WITH THE VICE PRESIDENT OF SALES AND MARKETING
AT NORDSTROM UP IN SEATTLE ABOUT--
AND WHAT DID THEY SAY?
LOVED THE CONCEPT.
BUT YOU NEED A BUYER? DID THEY PUT YOU IN TOUCH WITH A BUYER?
NO. HE SAID, "I DON'T WANT TO PUT YOU IN TOUCH WITH A BUYER
UNTIL YOU HAVE THE FINAL PRODUCT."
(Daymond) RIGHT.
BUT YOU HAVE PUT
A HALF-A-MILLION-DOLLAR VALUATION ON
BASICALLY A PIECE OF HOSIERY WITH A BAG.
DAYMOND, ARE YOU--
MAYBE IT'S THE BEST THING EVER...
ARE YOU SAYING THAT EVERYTHING COMES BACK
TO ONE THING IN LIFE-- MONEY?
YES.
OKAY, THEN LET ME TAKE IT FROM HERE.
YOU'RE INSANE.
(Connor laughs)
THIS IS NOT WORTH $500,000.
UNDER NO SCENARIO WOULD I EVER GIVE YOU $100,000 FOR ONLY 20%.
$100,000 IS WHAT THE WHOLE THING IS WORTH, MAYBE.
I'M STUCK. I'M CHOKING ON IT, YOU KNOW?
LET ME ADDRESS THAT.
THERE'S NOTHING YOU CAN SAY.
IF WE--
THERE'S NOT A WORD-- ANOTHER WORD YOU COULD SAY
THAT WOULD EVER, EVER, EVER CONVINCE ME THIS--
WHAT ABOUT "MONEY"?
WE HAVE 50 GRAND CASH IN OUR ACCOUNT.
(laughs)
WHERE DID YOU GET THE 50 GRAND?
WE HAD TWO PEOPLE APPROACH US.
THEIR BUY-IN, THEIR CAPITAL CONTRIBUTION WAS 50 GRAND.
AT THAT TIME, WE DIDN'T EVEN HAVE A PRODUCT.
IT WAS AN IDEA.
YOU STILL DON'T.
WE DO. THAT-- THAT WILL SELL.
THIS ONE ON MY LEG WILL SELL ON A WEB SITE.
SO WHAT DID YOU--
WILL SELL.
HOW MUCH OF THE COMPANY DID YOU SELL THEM FOR $50,000?
40%.
JILLIAN AND I ARE 60% STAKEHOLDERS.
THEY GOT 40% FOR $50,000?
WE HAD NOTHING AT THAT POINT.
OH, MY GOODNESS.
WE DIDN'T HAVE A DISTRIBUTOR. WE DIDN'T HAVE A DESIGNER.
(laughs)
WE DIDN'T HAVE P.O.s HANGING IN FRONT OF US.
DO YOU SEE MY DILEMMA?
YOU STILL DON'T HAVE A P.O.
WAIT, WAIT. BUT, KEVIN...
WE HAVE P.O.s HANGING IN FRONT OF US.
THEY'RE-- THEY ARE ALSO WORKING.
THEY'RE MANAGING PARTNERS--
YOU COME IN HERE WITH THIS STORY...
THEY WORK 60 HOURS A WEEK.
AND YOU CHARGE ME TEN TIMES MORE?
ARE YOU CRAZY?
NO, I'M NOT CRAZY...
WELL, IT'S NOT TEN TIMES.
BECAUSE THAT'S WHAT THE COMPANY'S WORTH.
GUYS, YOU GUYS JUST DON'T GET IT.
YOU DON'T HAVE A--YOU HAVE P.O.s THAT YOU CAN SHOW US?
NO, WE DON'T HAVE P.O.s
NO, I'M SAYING. I HAVE A--ONE WAITING.
I MEAN, 24,000 UNITS--
YOU HAVE ONE WAITING. OH, I GOT IT.
I JUST DIDN'T HAVE A PRODUCT TO GIVE TO HER.
(sharks laughing)
(Connor) LOOK, KEVIN,
IF YOU WERE WILLING TO WORK AND SLAVE ON THIS PRODUCT--
(Kevin) CONNOR...
YOU CAN HAVE THE EXACT SAME RATE THEY GOT.
CRITICAL MISTAKE IF YOU THINK I WOULD EVER PAY
10 TIMES MORE THAN SOME COLLEGE GUY GOT IT FOR 30 DAYS AGO.
ARE YOU OUT OF YOUR MINDS?
OKAY, IT'S FIVE TIMES. FIVE TIMES MORE.
ONLY FIVE TIMES? OH, THAT'S MUCH MORE EXCITING.
WELL, NO, LET'S TALK ABOUT WHAT THEY BROUGHT TO THE COMPANY
BECAUSE THAT'S WORTH A LOT.
SURE. CASH, RIGHT?
THEY BROUGHT CASH...
CASH--
BUT THEY ALSO--
THEY BROUGHT A DESIGNER,
A SUPPLIER IN ARE AREA THAT CAN PRODUCE ANY QUANTITY,
LITERALLY ANY QUANTITY,
UP TO A MILLION UNITS WITHIN A YEAR.
BY THE WAY--
THAT'S INVALUABLE,
TO FIND A SUPPLY CHAIN THAT IS WELL-OILED.
ALL RIGHT, LOOK, LOOK--
THAT IS NOT INVALUABLE. THAT'S EVERYBODY.
I-I--
TO FIND A SUPPLY CHAIN THAT IS WELL-OILED?
THAT'S EVERYBODY. THAT'S OUT THERE.
I AM VERY, VERY WORRIED--
THAT'S EVERYBODY.
THAT'S SOMETHING WE DIDN'T HAVE BEFORE WE HAD THEM.
WHAT DO YOU THINK FACTORIES EXIST FOR?
(Barbara) TALK.
(Kevin) LISTEN, I'M VERY WORRIED FOR BOTH OF YOU
BECAUSE WHAT HAPPENS IF YOU COME IN HERE
WITH A CRAZY VALUATION--
SOMETIMES A LIGHTNING BOLT
COMES FROM THE CEILING AND FRIES YOU.
AND I THINK THAT'S HAPPENING RIGHT NOW.
I AM OUT.
GONE. OUT.
AND I FORBID ANY OF THESE SHARKS TO GET INVOLVED WITH YOU.
WOW. WELL, LET ME, UH, DOUBLE BACK
AND START TALKING ABOUT THE DEMAND AGAIN,
BECAUSE I-I KNOW IT WILL SELL.
I'M STANDING HERE,
AND THAT $500,000 VALUATION, KEVIN, IT KILLS ME.
NEXT WEEK I CAN SIGN A $124,000 PURCHASE ORDER.
NEXT WEEK.
IS THAT--IS THAT RIGHT? YOU THINK THAT, RIGHT?
AND I'M GONNA GIVE AWAY 20% OF MY COMPANY
FOR A $100,000 TO YOU?
YOU HAVE SUCH A THICK SKULL THAT YOU'RE NOT LISTENING TO US.
MM-HMM.
YOU'RE NOT GETTING WHAT WE'RE SAYING TO YOU.
I HAVE ABOUT TEN APPAREL COMPANIES,
AND I CAN'T GET A $125,000 OPENING ORDER
ON A NEW PRODUCT LINE.
IT JUST DOESN'T HAPPEN.
WHAT IF YOUR BOARD MEMBER WORKS DIRECTLY WITH...
WHO CARES WHERE YOUR BOARD MEMBER WORKS?
THAT DOESN'T--
WHO CARES?
THE WAY STORES WORK IS...
WHO CARES WHO YOUR--
THEY GIVE YOU A SMALL ORDER, THEY TEST YOU.
THEN THEY COME BACK. THEN THEY COME BACK.
EVERYTHING YOU'VE SAID HERE IS INCORRECT.
IT'S JUST THEORY.
(Robert) YOU KNOW, THE SUCCESS IN BUSINESS
IS BY GOING OUT AND ACTUALLY SELLING STUFF.
I FIND IT SO ARROGANT OF YOU TO--
TO BE SO FLIPPANT ABOUT YOUR ABILITY TO GET ORDERS
WHEN YOU DON'T HAVE ANY ORDERS.
YOU'VE DONE EVERYTHING EXCEPT GET DIRTY.
(Connor) I COMPLETELY APPRECIATE THAT.
AND BELIEVE ME WHEN I TELL YOU THAT I AM WILLING
TO GET OUT THERE, TO PUT IN THE 80-HOUR WEEKS,
AND TO SLAVE TO MAKE THIS THING HAPPEN.
AND THAT'S GOING BACK TO WHAT THAT $500,000 VALUATION IS,
IS YOU'RE BUYING US.
YOU'RE BUYING OUR TIME, OUR EMOTION, AND OUR PASSION
TO MAKE THIS THING HAPPEN.
IT DOESN'T MATTER WHO YOU KNOW.
IT DOESN'T MATTER WHAT CONNECTIONS YOU HAVE.
NONE OF THAT CRAP MATTERS WHEN YOU GET OUT IN THE REAL WORLD.
GO OUT, GET DIRTY,
GET SOME SALES.
I'M OUT.
YOU CAME IN HERE WITH NO ORDERS, 200 SOLD,
AND YOU SAID, "IT'S WORTH A HALF A MILLION DOLLARS."
I KNOW. WE GAVE YOU GUYS A DEAL. I'M 100% AWARE OF THAT.
(Robert and Daymond laugh)
(Kevin) I BELIEVE HIM.
ALL RIGHT. GO AHEAD. HE GAVE US A DEAL.
I'M--I'M THINKING BAMBI ABOUT TO MEET GODZILLA.
I MEAN, THAT'S WHAT'S GONNA HAPPEN.
YOU'RE GONNA WALK OUT OF THE SHARK TANK
INTO THE REAL WORLD,
AND IT IS GOING TO EAT YOU ALIVE.
YOU DON'T KNOW ME, KEVIN.
YOU'RE GONNA BE KICKING--
YOU'RE GONNA BE KICKING YOURSELVES...
ALIVE.
THAT YOU DIDN'T GET IN WITH US.
OH, MY GOODNESS.
KEVIN, YOU DON'T KNOW ME.
(Kevin groans)
YOU DON'T KNOW HOW I CAN FIGHT, KEVIN.
(Barbara) I DON'T THINK THIS IS GONNA SELL, HONESTLY.
AND YOU KNOW WHAT?
YOUR WILD-EYED ENTHUSIASM MAKES YOU BLIND.
EVERY TIME A SHARK WENT OUT HERE, YOU JUST KEPT TALKING.
THAT IS AMAZING TO ME.
I THINK YOU REALLY HAVE TO GO INTO THE REAL WORLD--
TEST THIS THING--
BEFORE YOU EVER INVOLVE OTHER INVESTORS.
BARBARA, LET ME CLARIFY FOR THE REST OF THE SHARKS--
SEE? YOU DIDN'T EVEN TAKE A BREATH THERE.
"BARBARA, LET ME CLARIFY."
I DON'T FEEL LISTENED TO.
I'M SO OUT ON THIS.
UH, I PUT MY WHOLE SAVINGS
INTO THIS COMPANY.
THE SAYING IS, YOU KNOW, LIFE IS A CRUEL TEACHER.
SHE LOVES TO GIVE YOU THE TEST FIRST
AND THE LESSON LATER.
AND YOU'LL LEARN SOONER OR LATER. I'M OUT.
HEY, MARK.
SO A.E.G.,
100,000-PLUS ATTENDEES,
100,000--
SHH.
CALM DOWN.
IGNORE EVERYTHING THEY JUST SAID.
THEY'RE 100% WRONG.
(chuckles)
FOUR SHARKS ARE OUT.
SHH.
AND MARK CUBAN
IS JILLIAN AND CONNOR'S LAST CHANCE AT GETTING A DEAL.
JUST CALM DOWN.
IGNORE EVERYTHING THEY JUST SAID.
THEY'RE 100% WRONG.
YOU GUYS REMIND ME OF ME
WHEN I WAS 21.
YOU'RE TRYING TO WIN EVERY BATTLE.
THAT'S WHAT BEING COMPETITIVE IS ALL ABOUT.
NOW I TRIED TO ASK THE QUESTIONS
THAT WOULD EDUCATE ME ABOUT WHERE YOU'RE GOING STRATEGICALLY
AND COULD I ADD VALUE.
(chuckles)
TELL ME ABOUT YOUR INFRASTRUCTURE.
REALLY QUICK.
(snaps fingers)
TEN SECONDS OR LESS. WHAT--WHAT DO YOU HAVE?
SO WE HAVE A DESIGN,
SO WE CAN DESIGN NEW PRODUCTS IN DIFFERENT COLORS,
DIFFERENT SIZES.
GREAT. SO YOU HAVE SOMEONE WHO CAN MAKE 'EM AND BUILD 'EM?
YEAH.
OKAY.
AND THE 200 YOU SOLD AT YOUR WEB SITE WAS HOW LONG AGO?
IT WAS SIX MONTHS AGO.
OKAY, WHY HAVE YOU NOT CONTINUED TO SELL THEM ON YOUR WEB SITE?
BECAUSE WE RAN OUT. (laughs)
OKAY, SO YOU HAVE $50,000 IN THE BANK.
WHY DIDN'T YOU USE THAT MONEY TO FULFILL THE ORDERS?
BECAUSE WE--WE COULDN'T MAKE ANY MORE OF THOSE.
THAT WAS WITH A SMALL DESIGNER WHO DID FREELANCE WORK
WITH A SUPPLY CHAIN THAT CONNOR PUT TOGETHER...
(laughs) THAT WAS AMAZING FOR HIS FIRST WHACK AT IT.
OKAY. SHH. DON'T GO ON A TANGENT.
OKAY?
SO YOU HAVE $50,000 IN THE BANK,
AND YOU'VE GONE SIX MONTHS WITHOUT SELLING ANYTHING?
WE JUST SECURED THAT A MONTH AGO.
OKAY, IN YOUR MODEL, IN YOUR BUSINESS PLAN,
YOU'VE GONE FROM NOTHING, BASICALLY,
TO 200,000 UNITS.
MM-HMM.
WHAT GOT YOU FROM NOTHING TO 200,000 UNITS?
WHAT PERCENTAGE WAS ON-LINE,
WHAT PERCENTAGE WAS GOING TO HAVE TO BE RETAIL?
15% WAS RETAIL THROUGH THE WEB SITE.
85% WAS--
OKAY, YOU MEAN ON-LINE.
85% WAS WHOLESALE.
OR WE CAN CHANGE UP THAT RATIO.
IT COULD BE ONE OF THOSE INTERNET ON-LINE SENSATIONS--
50/50.
SEE? BUT NOW YOU'RE WAFFLING.
WHAT YOU JUST TOLD ME IS,
YOU DON'T REALLY KNOW WHAT YOU'RE GOING TO DO.
I KNOW WHO I'M GONNA SELL IT TO...
I MEAN, WHAT--
IN THE NEXT-- I KNOW THOSE 100,000 UNITS.
I KNOW. I--LOOK, I GET--
I GET THAT YOU BELIEVE IN IT.
I WAS HOPING I COULD PROVE THESE FOOLS WRONG.
AND YOU DIDN'T.
NO, UNFORTUNATELY NOT.
IF YOU WOULD'VE COME BACK TO ME
AND SAID, "'A,' THIS IS WHAT I'M GONNA DO--
'A,' 'B,' 'C,' 'D,'-- TO GET TO 200,000 UNITS"
AND IT MADE CRYSTAL-CLEAR SENSE TO ME,
THE HUN--THEN THE $100,000 IS NOTHING.
SO FOR THAT REASON, I'M OUT.
CAN I STOP YOU THERE AND TRY AGAIN?
NO, I'M OUT.
WELL, WE DO HAVE A PLAN,
AND THAT--OUR LAST ONE WAS THE MEETING
THAT WE HAD LAST WEEK, SO THAT'S THE FIRST ONE.
WE HAVE--WE--
JILLIAN, JILL...
GOOD LUCK.
GO GET 'EM, GUYS.
ALL RIGHT. THANK YOU, GUYS.
♪♪♪
YOU KNOW, IN THE END, MARK,
THE MOST IMPORTANT THING ABOUT THAT PITCH IS,
WE WERE RIGHT, AND YOU WERE WRONG.
END OF STORY.
ON THAT PITCH, I'LL GIVE YOU THAT ONE, KEVIN.
WOW.
THAT'S A FIRST.
YEP.
(Barbara) THAT IS A FIRST.
STEVE JOBS SAID, "STAY HUNGRY, STAY FOOLISH."
AND THAT'S EXACTLY WHAT WE'RE PLANNING TO DO.
WE'RE HUNGRY AND FOOLISH. (chuckles)