In this episode of "Elevator Pitch," our investors are fired up. Can contestants take the heat as they attempt to secure funding for their dream businesses?
Here's the thing about Entrepreneur Elevator Pitch: Startup founders and inventors who nail their 60-second pitch might think they have victory in the bag, but that's just the beginning. They next have to face a grueling Q&A session with investors who will want to know everything from sales traction to costs to marketing planning. Things can quickly turn on a dime — sometimes for the better, sometimes for the worse.
In this week's episode, the inventor of a medical device's pitch is going great until one investor brings up the dreaded F-word: FDA approval. See how the conversation flows from there on this feisty new episode of Elevator Pitch!
Here's the thing about Entrepreneur Elevator Pitch: Startup founders and inventors who nail their 60-second pitch might think they have victory in the bag, but that's just the beginning. They next have to face a grueling Q&A session with investors who will want to know everything from sales traction to costs to marketing planning. Things can quickly turn on a dime — sometimes for the better, sometimes for the worse.
In this week's episode, the inventor of a medical device's pitch is going great until one investor brings up the dreaded F-word: FDA approval. See how the conversation flows from there on this feisty new episode of Elevator Pitch!
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NewsTranscript
00:00 Welcome to the elevator. Today, three VIP Titans decide the fate of our rising entrepreneurs.
00:09 Use your breath on her. She's your remaining hope at this point.
00:13 Oh! That's got to feel pretty good. Feels great.
00:17 Going up. Tough crowd.
00:20 He was down my throat with all the reasons I was wrong.
00:24 Determined to prove their greatness in 60 seconds or less.
00:28 I'm feeling pretty good. You're both going to lose.
00:31 This is Entrepreneur Elevator Pitch.
00:35 Presented by Amazon Business with support from State Farm.
00:41 Meet our board of investors.
00:46 Kim Perel, serial entrepreneur and tech CEO of 100.co.
00:52 Mark Randall, co-founder and first CEO of Netflix.
00:58 Joe Dissena, CEO and founder of Spartan and Death Race.
01:04 First, an entrepreneur aims to alleviate head-pounding migraines with an innovative device that applies pressure in just the right spot.
01:16 So, since age 5, I began experiencing debilitating headaches and each one would come with excruciating pain near my temples.
01:24 I'd usually vomit 20 to 30 times. I'd be sort of on the floor in agony.
01:29 We had no idea what was going on. My family wasn't sure. I didn't know.
01:33 Went to doctors all over the country trying to look for medication solutions, literally anything.
01:38 And the solutions were ineffective. I went to all these doctors and they prescribed medication usually.
01:44 And that was not helpful. It would usually cause nasty side effects.
01:47 Oftentimes, they were worse than the headaches themselves.
01:50 And what I did out of desperation is I looked for my own solution.
01:54 I thought, well, if no one else has the answer, maybe I could come up with it.
01:57 So, out of that desperation, I invented Relievum and using it preventively.
02:02 And when I got headaches, it completely changed my life.
02:06 [Music]
02:17 Going up.
02:18 Hello, David.
02:22 Welcome to the elevator.
02:25 Your pitch begins in 3, 2, 1.
02:34 Hi, I'm David Fleming, the inventor of Relievum.
02:37 For years, I suffered from debilitating headaches that dominated every aspect of my life
02:42 and even forced me out of school for over three years.
02:45 I tried everything for relief, but nothing worked.
02:48 And medication had nasty side effects.
02:51 So, I invented Relievum and it completely changed my life.
02:55 Relievum is a self-serve trigger point release device that reduces tension originating at the base of the skull.
03:01 And it's been wildly successful on the initial 50 testers.
03:05 With growing demand for natural solutions, Relievum is exactly what the market needs.
03:10 After years of rigorous prototyping, we're ready to ramp up production.
03:14 Now we need funds for tooling, manufacturing, and clinical trials to turbocharge the business.
03:20 Relievum already changed my life.
03:23 Now I'm seeking $250,000 for 10% of my company so we can help change millions of other lives too.
03:30 [MUSIC]
03:34 That was a pretty solid pitch.
03:35 Yeah, he did great.
03:36 It's a good pitch, but we don't know if customers like it. We don't know if it works.
03:40 Yeah, there's no question that he is early.
03:42 And so, I'm always kind of hesitant about do I want to invest in something for him to find out whether it works or not.
03:48 He's got some feedback from the market, which I love to see.
03:52 Because it's like, you've got to have an MVP, you've got to get out there and start getting customer feedback.
03:56 To your guys' point, is it too early?
03:59 Should I take this one to a vote?
04:01 Let's do it. Let's vote.
04:02 [MUSIC]
04:10 Attention, David. Your pitch has been approved.
04:19 Let's go!
04:20 [MUSIC]
04:25 David, welcome to the boardroom.
04:26 Thank you.
04:27 Congratulations. I'll warn you though that it was not a unanimous vote to bring you up.
04:32 And so, I think you still have a little convincing to do.
04:35 I mean, to start, you're really early. You're not even in the market yet.
04:40 So, tell me why this is going to be a hit.
04:42 Yeah, thank you so much for this opportunity.
04:44 I'm extremely confident this is going to be a hit.
04:47 So, we have a huge market opportunity.
04:49 We have a ton of progress to date.
04:51 And we have a really differentiated solution.
04:53 So, that's really why I'm here and why I'm so excited.
04:56 What I want to hear is the proof.
04:58 You said you have some people using it.
05:01 Yeah. So, for me, it completely changed my life.
05:04 It's worked on 50 other people I've tried it on.
05:06 And something even more importantly, this is actually a proven technique used by millions of massage therapists and chiropractors yearly.
05:14 If you go into a chiropractor or massage therapist and you say you have a headache, what they're going to do is use suboxybital release therapy.
05:22 And that's exactly what my product replicates.
05:24 And it takes this proven technique outside of that domain and into the hands of consumers.
05:29 How old are you?
05:30 19 years old.
05:31 How long have you been using it?
05:33 So, I've been using this for 7 years.
05:35 So, I invented this when I was 12 years old.
05:37 And at the time, I had been experiencing headaches for most of my life since I was 5 years old.
05:43 I was, you know, throwing up 10 to 20 times, like 3 to 4 times a week.
05:48 I was missing dozens of days of school every single year.
05:52 And I was going to doctors all over the country looking for different solutions.
05:55 And they all gave me 2 options, which was really, you live with the pain or you take medication.
06:00 And living with the pain was completely unrealistic.
06:03 And medication rarely helped.
06:05 And as I said, it often came with nasty side effects.
06:07 So, I had no real hope.
06:09 And I refused to give up.
06:11 I refused to settle for the current solutions that just weren't working for me.
06:14 I knew I had to go out and not only create a solution for me, but for the millions of other headaches sufferers.
06:19 It seems so simple.
06:21 Why can't someone else just jump right in and totally China manufacture this thing to death and drown you?
06:28 Yeah, great question.
06:30 So, you know, 4 patents will help me a bit.
06:32 The FDA clearance will help me a ton.
06:34 And no one's doing what I'm doing.
06:36 And part of that is not only, you know, relieving headaches, but the emphasis on the prevention of headaches.
06:41 And that's really where I'm going with this, is you use it for 3 to 5 minutes every single day.
06:46 And it's prevention for the millions of Americans that get headaches and migraines.
06:50 And what's the price point you're going to sell it at?
06:52 So, I'm going to sell it for $79.99.
06:54 And the COGS, total cost of goods, is going to be about $10.
06:57 I mean, I love your passion.
07:03 I love your story, why you created the product.
07:08 It's so early for me, unfortunately, until you actually get to market and get feedback on sales, price point.
07:15 There's so many more steps you need to take.
07:18 I'm going to pass.
07:20 I understand. Thank you for your time.
07:22 Yeah, I guess I would have to agree with you, Kim.
07:24 I think it's really early.
07:26 I think especially being pre-FDA.
07:28 I really love the fact that you are taking this step.
07:35 I love the enthusiasm.
07:37 But this is not something that I'm afraid I can financially help with.
07:41 I'm passing.
07:43 Thank you for your time.
07:44 I am a big believer in it's all about the jockey, not about the horse.
07:48 You are incredible at 19 years old.
07:50 You've been doing this for 7 years.
07:52 I'm jealous in a way. I have 4 children.
07:54 I hope they turn out to be as bold as you.
07:57 I'm going to have to pass way too early.
08:01 Totally understand. Thank you so much for your time. I really appreciate it.
08:05 David, I hope you picked up that we do have a lot of confidence in you.
08:08 Keep going. This is exactly the right path for an entrepreneur.
08:13 Thank you. Good luck, David.
08:15 I think the investors might have missed out on an opportunity.
08:20 But I understand their concerns. It is a little early.
08:23 But we need that next step to get the FDA clearance.
08:26 So we can move forward and make Relievum the success I know it will be.
08:29 The future of Relievum is creating a natural headache relief company and brand.
08:33 The biggest ever to exist.
08:35 Please return to the boardroom immediately.
08:38 Welcome back, David. I'm back, apparently.
08:52 Sorry to bring you back up again.
08:54 But actually, I think I speak for all of us when I want to say how impressed we were with you.
08:59 So although you didn't leave with an investment, we don't want you to leave empty-handed.
09:04 So on behalf of Amazon Business, we'd like to give you $10,000 in cash to help you grow and invest in your business.
09:15 Thank you so much. I really appreciate it.
09:17 Congratulations. Great job.
09:19 Let's go. Thank you so much to Amazon Business.
09:27 I'm so happy to be doing this. 19 years old.
09:30 And I'm so grateful for this opportunity. This will be huge for Relievum.
09:34 That's got to feel pretty good. It feels great.
09:36 Yes. Oh, my goodness.
09:38 At his age, I was giving a pitch at a university.
09:41 Same kind of thing. Got a $5,000 check from the founders of Rionidi Wine.
09:47 I left just like him, smiling ear to ear. And it really started my whole journey.
09:51 I mean, I started my first company with $10,000 from my grandma.
09:54 So anyone can start at any time with honestly not a lot of capital.
09:59 Just got to start. Yeah, you just got to start.
10:01 Well, thanks to Amazon Business. Hopefully he gets the help he needs.
10:06 Entrepreneur Elevator Pitch is presented by Amazon Business.
10:13 For every organization at every stage of growth.
10:22 Next, an entrepreneur enhances entertainment and productivity with a versatile, portable projector.
10:29 Going up.
10:42 Hello, Alexander.
10:46 Welcome to the elevator.
10:49 Your pitch begins in 3, 2, 1.
10:55 Hi, my name is Alex Wesley. I'm the CEO of Arovia.
10:59 I've been on CNBC and recognized as the creator of this entirely new expandable display industry.
11:05 As an optical engineer, I used to travel all over the world, working at client sites, hotels and coffee shops.
11:10 I felt extremely inhibited and frustrated working on my too small and giving presentations on my too small laptop and smartphone screen.
11:17 I knew if we could create a large and portable display, it would create a multi-billion dollar opportunity.
11:22 And that's exactly what we did with Splay.
11:24 Splay goes from this size to about four times bigger than a laptop screen in just a few seconds.
11:29 You can also use Splay as an ultra short throw portable projector.
11:32 It's a game changing product, giving you a big screen anytime, anywhere you need it.
11:36 We have more than 10 patents granted and a million dollars in sales.
11:39 And right now is just the beginning.
11:41 In the future, we'll have larger screen sizes, touchscreens, operating systems, a razor, razor blade model.
11:45 We're seeking a million dollars for 10% of our company.
11:48 And if you invest today, you'll receive a free Splay.
11:51 We welcome you to join Arovia.
11:53 We give you the freedom to do more in more places.
11:55 That was a good pitch.
12:00 Good. That was awesome.
12:02 I love the kicker at the end.
12:04 Yeah, the little things. I love the little things.
12:06 It's like throwing an extra Splay.
12:08 I kind of want a Splay actually, if you pitch me.
12:10 No, but in all seriousness, the great thing was on one hand, I went, oh my God, I want one.
12:16 The other hand, I'm going, oh my God, hardware.
12:19 I'm skeptical of hardware.
12:21 Like you said, I don't know enough.
12:23 I'm not an engineer by background.
12:25 Really good at putting together barbed wire.
12:27 That's hardware.
12:28 If you haven't heard that.
12:30 But he sounded pretty damn good in the elevator.
12:32 I think we should take it to a vote.
12:34 Are you guys ready?
12:35 Let's do a vote.
12:37 [Music]
12:43 Attention, Alexander.
12:45 Your pitch has been approved.
12:52 Yeah!
12:53 All day.
12:54 Yeah!
12:57 Alex, welcome to the boardroom.
12:59 Thank you, Kim.
13:00 First of all, I want to say, I thought you did near perfect pitch.
13:05 And unfortunately, it was not unanimous to bring you up.
13:09 Myself and Mark definitely wanted to hear more.
13:12 Joe, he's a little bit of convincing.
13:15 You've done a million dollars in sales.
13:17 Over what time period and what's your projection look like for next year?
13:22 So the sales were predominantly a discrete Kickstarter, so pre-sale.
13:25 So, you know, pre-sales are very difficult and typically have a higher CPA.
13:29 But we do have distributor relationships.
13:31 And we're beginning sales in our core five markets that we're going after right now
13:35 and five distribution channels.
13:36 Are you in market right now?
13:38 We're just shipping right now.
13:39 So it's a really exciting time to finally have a product on the market and have it in customers' hands.
13:43 You're saying on the market.
13:45 How are you selling it?
13:46 So we have five channels right now.
13:48 So number one, we're working with value-added resellers and mobile command posts.
13:52 So that's mostly to the military.
13:54 Number two, we're working with pro-AV distributors.
13:56 And that's using it as a portable teleprompter and using it as an on-screen reference screen.
14:04 And then we also have low vision markets.
14:06 So it turns out if you're somebody who has low vision, you have trouble seeing small text,
14:10 you don't have anything that enables you to go to a coffee shop and see what's on your smartphone screen.
14:15 It's the only solution on the market.
14:16 And we're signed with the state of Texas and the Texas Workforce Commission and have a big distributor there.
14:21 We're also having sales on our website and Amazon Business.
14:24 But can I see a Sasquatch on that screen?
14:27 Do you want to try to expand it?
14:28 Yes, let's see it.
14:30 I'm going to let you do it.
14:31 So to take it out, it goes out of this case.
14:35 And so we have patents granted on this material.
14:40 So it's never seen anything like it.
14:41 It's kind of like magic.
14:42 So you just put your hand, there's a little carve out for your hand there.
14:45 And then you hold this, which we call the slider, and you just give a mighty push.
14:50 And just like that.
14:51 And you can remove the screen and use it as a projector too.
14:53 So it's the only product on the market that's dual use, both as a screen and a projector.
14:56 Look, I'm confused.
14:57 If you're going to carry this thing around, why wouldn't you carry your laptop into the coffee shop?
15:02 That's a great question, Joe.
15:04 So the main reason is this is three times, four times bigger than a laptop screen.
15:07 For somebody who really hates staring at small Excel spreadsheets, PowerPoint,
15:10 you know, admittedly in the current form at the current price,
15:13 we see it as more in these discrete, you know, five sales channels that we mentioned before.
15:17 But ultimately at a lower price point, we see it as the something that anybody can have every day.
15:21 All right. I was getting that smell before of, wow, this is expensive.
15:25 And now you're talking about kind of this fear of the price point.
15:28 Yeah.
15:29 Break it to us.
15:30 So we've been selling it to distributors at $750, and they in turn have been selling to the end user at around $1,000.
15:36 The average sell price so far has been $800.
15:38 But if you look at that in context, the most comparable computer screen on the market that's, you know, less than five pounds,
15:44 it doesn't fold like this, but it's relatively portable, no battery either, costs $4,500.
15:50 And the most comparable projector on the market costs $1,000.
15:53 So in our view, you're getting $5,500 in value for around $1,000.
15:56 What's the quality like?
15:58 Basically for spreadsheets, anything text driven, it's more than good enough.
16:03 It's 1080p, so to directly answer the question, people see it in person, they fall in love with it.
16:07 And that's why we're going through distributors, because they have the direct sales force,
16:10 they can go out and show to people.
16:12 People aren't looking for a large foldable display because nothing exists right now.
16:16 So we have to go out and show people.
16:17 So Joe, you probably fly as much or more than I do.
16:20 Would you carry this thing around with you?
16:23 It doesn't make sense to me, to be honest with you.
16:27 Like I travel the world with a backpack.
16:30 Everything I need, all my clothes, doesn't matter if I'm away for a week or two, it's a backpack.
16:34 And I've got my laptop.
16:36 I don't, again, I'm not doing presentations, so I don't, maybe I don't know.
16:41 I'm in the same place.
16:42 Like when you pitched in the elevator, I went, oh my God, I want one of those.
16:46 Until I began thinking about, I'm the same as you.
16:49 I travel with a small suitcase that I never check, and I have a briefcase.
16:54 And I don't know where this goes.
16:57 Like obviously, like, you know, you have--
16:59 Wait, wait, wait, wait.
17:00 Here's the problem.
17:01 The problem is that if I started off thinking no one's going to buy this,
17:06 and then you would say, hey, the military will, and no vision,
17:09 I would have had a different emotional reaction.
17:11 The problem is I started off thinking, oh my God, every single person who travels wants one.
17:16 And now I'm going, oh no, it's really kind of niche-y.
17:19 In other words, it kind of took the wind out of the sails a little bit for me.
17:22 Well, each of those markets are billion-dollar markets.
17:24 We're talking pro-AV, military, mobile command post, low vision.
17:27 It's hard enough.
17:28 And that's the thing is the opportunity--
17:29 It's hard enough to get your way into one market, no less getting your way into five.
17:32 And the fact that you have to do five at once is kind of a warning sign to me.
17:37 Why isn't one of them big enough for you?
17:39 Why focus on one and nail one?
17:41 That's a really good point.
17:42 Because we are just going to market.
17:43 So you look, where are you getting the biggest growth?
17:45 Where's your CPA the lowest?
17:47 We are getting sales in each of those markets.
17:49 The good news with this business, the break-even is just 160 units a month.
17:53 You don't know who your customer at scale will be, correct?
17:57 Yeah.
17:58 We hope, like, okay, this will be--once it's closer to pocketable and less depth,
18:04 it's a mass-market product and it costs $400.
18:07 And I might be in different places, but the thing is I've heard enough to know
18:10 that this is way out of my alley.
18:14 As I said from the beginning, the hardware stuff scares me.
18:17 The turn cycles are small.
18:19 It's really hard to iterate because it's so slow.
18:22 You haven't yet figured out what the big market is, even though you have some opportunities.
18:27 I pass.
18:29 I hate to give you a monopoly, Kim.
18:32 I'm out simply because technology changes too fast.
18:35 So for all I know, somebody's going to have a pen three weeks from now that you can shine up
18:40 against a wall and see.
18:42 I mean, that's for any startup you could say that.
18:44 I guess, but technology I just can't figure out.
18:47 Hardware startups are different.
18:49 Yeah, hardware startups have the most valuable company in the world is a hardware company, right?
18:52 Yes, but the failure rate of them is higher.
18:54 But listen--
18:55 That doesn't mean it's a bad company.
18:57 We have our manufacturing set up.
18:59 You're not going to convince me, so use your breath on her.
19:02 She's your remaining hope at this point.
19:04 I voted you up because I thought you did a great pitch.
19:07 And I was very impressed with the traction that you've had so far.
19:10 The only concern I have is you still don't know who's going to be that customer.
19:14 And for me, I want to be really clear and, as Mark said, really focus on building that out and then expanding.
19:20 I'm going to pass.
19:24 All right.
19:25 Well, thank you, guys. I'm grateful for the opportunity.
19:27 Well, I'm sorry we're going to send you home empty-handed.
19:29 It's interesting, and there was this initial reaction that there is something there.
19:33 Just didn't find a match today.
19:35 But thanks for coming.
19:36 Thanks for coming.
19:37 Thanks so much, Alex.
19:38 Take care.
19:39 Good luck.
19:40 I'm feeling pretty good.
19:43 It was gratifying to at least get past the elevator pitch portion and that they saw the opportunity there.
19:48 And the reality is not every investor is going to see the value in every opportunity.
19:54 My job is to get it in front of as many people as possible.
19:58 It will resonate with more and more portion as we get more and more traction.
20:02 And I'm really excited to show more people's play.
20:05 And I'm grateful for the opportunity that we got on the show and got to show splay.
20:09 And now for our Entrepreneur Elevator Pitch Trivia Question.
20:17 In a survey of hundreds of venture capitalist firms, which industry were respondents most excited about in 2024?
20:26 A. Automotive, B. FinTech, or C. Health Tech?
20:33 The answer is C. Health Tech.
20:37 Last in the elevator, an entrepreneur who combats climate change by turning unharvested produce into naturally delicious candy.
20:52 [Music]
20:55 Going up.
21:04 Hello, Amy.
21:07 Welcome to the elevator.
21:10 Your pitch begins in 3, 2, 1.
21:17 I come from sugar.
21:20 My family owns a candy factory, Spangler Candy Company.
21:23 We make 2 billion Dum Dum lollipops every year.
21:26 As a seven-time Ironman triathlete, my world collided in Svalbard, Norway at the Global Seed Bank.
21:33 I learned that there's 40% of food is wasted globally.
21:37 And the United Nations was putting generators into a glacier to keep the backup seeds of the world frozen.
21:44 So, in the Arctic Circle, I created the business model for climate candy to create FABES, a candy made of imperfect fruits and vegetables for the health of people on the planet.
21:54 It's stealth nutrition, providing C of servings of fruits and vegetables in every pack of candy.
22:00 We've already figured out distribution, sales brokers, operations, and marketing.
22:06 And we're in thousands of stores nationally with partners like Hudson News, Vitamin Shop.
22:12 And we're right now getting a convertible note for $2 million.
22:16 Oh, so close, so close.
22:21 I was confused for most of it, and having it end a little early didn't help any.
22:26 I don't understand why we would add value.
22:30 She's got a family business that produces lots of lollipops.
22:33 A lot of lollipops, right?
22:34 So, like, why does she need us?
22:37 Also, I thought that most of the pitch was about climate and seeds and glaciers, and I'm still not quite sure what the product is or what traction they may have.
22:50 Well, traction, 2,000 stores is a lot of traction, right?
22:53 A lot of traction.
22:54 I like the fact that she's done a lot of endurance races.
22:57 Yeah.
22:58 That's good. I know she threw that out for me.
22:59 Let's vote.
23:00 Let's vote. Maybe I'll surprise you.
23:02 Attention, Amy.
23:05 Your pitch has been denied.
23:13 We're doing well.
23:15 It's just to be able to take it to that next level when it comes to candy, you need to raise those, you know, kind of bridge rounds leading into Series A.
23:24 So, we're hoping to actually go through more of that.
23:27 But, unfortunately, I just talk too long about climate change, and it happens all the time with me.
23:32 While one entrepreneur was granted a generous $10,000 cash prize by Amazon Business.
23:40 Let's go!
23:42 Two were sent back down to the bottom floor with nothing to show.
23:48 Whether it's a new innovation or a new way of living life, anyone could be 60 seconds away from rising to greatness or fall from glory.
24:00 Tune in next week as Entrepreneur Elevator Pitch continues.
24:05 You're going to get at least 20 or 30 bucks out of us, so that's a start.
24:08 And apply for the next round of the Entrepreneur Elevator Pitch.
24:12 Entrepreneur.com/elevatorpitch. Investors personally styled by celebrity stylist Kim Bollefe.
24:19 Entrepreneur.com/elevatorpitch. Investors personally styled by celebrity stylist Kim Bollefe.
24:27 [Music]