Shark Tank
Shark Tank
Shark Tank
Shark Tank
Shark Tank
Shark Tank
Shark Tank
Shark Tank
Shark Tank
Shark Tank
Shark Tank
Shark Tank
Shark Tank
Shark Tank
Shark Tank
Shark Tank
Shark Tank
Shark Tank
Shark Tank
Shark Tank
Shark Tank
Category
😹
FunTranscript
00:00Next into the tank is a product to keep intruders out.
00:17Hi Sharks, my name is Alex Bertelli and I'm a former Army Special Operations helicopter
00:22pilot and the CEO of Haven, the world's strongest smart lock.
00:26And my name is Clay Banks, I'm the COO of Haven.
00:29We're from Nashville, Tennessee, and we're seeking $500,000 in exchange for 6% equity
00:35in our business.
00:36Sharks, not long ago, Clay and I both experienced a series of break-ins in our neighborhoods.
00:41In reality, a break-in occurs every 18 seconds here in the United States.
00:46We quickly realized it doesn't matter if you lock your doors or not.
00:50The traditional deadbolt just isn't getting the job done.
00:53Let me show you.
00:54This is your standard deadbolt.
00:56While it may feel secure when you lock it, an experienced intruder can get in in about
01:02five kicks.
01:03Alex, show them how easy this is.
01:07Come on Alex, kick it hard.
01:12Come on Alex.
01:13Oh, look.
01:14Come on Alex, kick it.
01:15How much do you sell the deadlocks for?
01:26It looks like we don't need to buy this product.
01:38It actually, a break-in occurs every 18 seconds here in the United States.
01:44Oh my God.
01:54Are you okay?
01:56This isn't going well.
01:58Typically, a break-in can happen in less than two minutes in the United States.
02:02One in 36 homes in America will have a break-in.
02:06Smart locks based at the deadbolt are no better.
02:09Alex?
02:10Sure.
02:12As you can tell, I'm not an experienced intruder.
02:15I'm good.
02:16But show them how Haven works, Clay.
02:18Haven sits at the bottom of the floor, right next to the existing threshold.
02:23When activated, the wedge-based barrier lifts up.
02:27Using simple physics, this makes your entire door 10 times stronger to preventing home
02:32break-ins.
02:33To use it, you simply step on the gate to open the door.
02:36To shut the door, you lock it with the gate with the foot pedal.
02:39And you can see, there's no deadbolt here.
02:43Right?
02:44So, Alex?
02:45Kick Alex!
02:46Show them how it goes.
02:53Do the fly kick, Alex.
02:58Oh no!
03:01Oh my God!
03:02He finally got it!
03:03That's right, baby!
03:04We don't give up!
03:05That's right.
03:06We don't give up.
03:07I need a service.
03:08Absolutely.
03:09Oh my God.
03:10Haven is still standing strong.
03:11We've got some demos we'll show you.
03:12Alex, you've just gone down in Shark Tank history.
03:13You will be memorialized forever.
03:14This is the connected version, Mark.
03:15You okay?
03:16Hell yeah.
03:17Here you go.
03:18Cool.
03:19All right, I'm going to grab a quick drink of water.
03:20Clay, why don't you start?
03:21All right.
03:22All right, I'm going to grab a quick drink of water.
03:23Clay, why don't you start?
03:24All right.
03:25All right, I'm going to grab a quick drink of water.
03:26Clay, why don't you start?
03:27All right, I'm going to grab a quick drink of water.
03:28Clay, why don't you start?
03:29All right.
03:30All right.
03:31All right.
03:32All right.
03:33All right.
03:34All right.
03:35So Sharks, we've got two products that we manufacture.
03:36We have a Haven mechanical mech that you have on this side.
03:37We have an electronic controlled one.
03:40And Mark's got it down here on this side.
03:42It's got a key fob just like you have with your car.
03:45It also has a smartphone app where you can share e-keys.
03:48I would be able to send you access to my house, schedule that.
03:51I would get notification when you come and go.
03:53What does each cost?
03:54So our cost for the mechanical only one, we sell it on our website for $182.
04:00It cost us $67 to make it.
04:02Our landed cost is $82.
04:05Our profit margin on that is 55%.
04:07What about the Bluetooth version?
04:08How much?
04:09The Kinect version we sell for $349 on our website.
04:13Right now, cost of goods sold is $175.
04:15Wow.
04:16That's a lot.
04:17That's expensive.
04:18I think we can get that down.
04:19It's our first batch of production at that cost.
04:21Do you have a patent issued on this yet?
04:23Yes, sir.
04:25We have two issuance from the U.K.
04:26We're still pending in the U.S.
04:27There's nothing like this that's on the floor and that stops somebody from entering.
04:32Correct.
04:33Our patents actually cover the entire door and for sliding doors.
04:36So could you do it at the top too?
04:37Yes, ma'am.
04:38So that's the other exciting thing we want to tell you about is due to recent current
04:42events, schools started approaching us to put this in individual classrooms.
04:45Oh, wow.
04:46Huge market.
04:47There's over 115,000 schools in this country.
04:49This is to protect the classroom from anybody getting in.
04:52Our plan is to lock down a classroom within one second and give teachers access and give
04:57security resource officers SWAT team access to the lock.
05:00It's actually a really good idea.
05:01That's a great idea.
05:02I don't think you told us what your sales were.
05:04Okay.
05:05So, so far we just crossed the $250,000 mark of total sales.
05:08Where are you selling them?
05:09We sell online on our own website.
05:11How much money have you raised and how much debt do you have?
05:14We've raised $1.5 million.
05:15That's a lot.
05:16Wow.
05:17And how much debt do you have, if any?
05:20We have two investors with a convertible note debt of a total of $500,000.
05:25Here we go.
05:26Are you two the sole owners?
05:29We currently own 25% each and then we have investors on top of that with additional equity
05:34to sell.
05:35So, the school situation, what is it that you have underway with schools?
05:39Tell them about the purchase order we got in Arkansas.
05:41So in Melbourne, Arkansas, we installed three locks about a month ago.
05:45They had an open house, the parents loved it.
05:48The next day, I got a call from the superintendent and said, I've got 94 classrooms left doing
05:53this school.
05:54I want to put in an order.
05:55That's a big order.
05:56Did they order 94?
05:57Yes, ma'am.
05:58What are you going to do with the money?
06:00Sure.
06:01So our biggest problem is inventory, simply.
06:03So we're going to use part of your investment to go out and scale inventory with our suppliers.
06:07Guys, look, I think what you've done is brilliant.
06:10Mark, let's do a deal.
06:13But the challenge is that your economics are awful.
06:15Your margins are awful to support what you need to do.
06:18We're just starting our manufacturing.
06:20We have made 2,000 locks and got those into the customers.
06:23We paid way over for those first 2,000.
06:26We're not going to pay that for the next 10,000 or the next 20,000.
06:29I think you're going to have a pretty hard time figuring out how to get to scale and
06:34figuring out what works and what doesn't.
06:36I don't want to be part of the journey.
06:37I'm sorry.
06:38I'm out.
06:39Thank you for your time.
06:40I think you have a huge mountain to climb and something that I don't think we'd get
06:43our money back.
06:44So for me, I'm out.
06:45Thank you, Barbara.
06:46Thank you very much.
06:47Appreciate your time.
06:48Thank you for the little pitch.
06:49Yeah, guys, I just think it's going to be difficult, particularly from a cash flow perspective.
06:51It's going to take you raising your price, you know, to generate the margins until your
06:55costs come down.
06:56And even then, the margins just aren't there, guys.
07:00I'm out.
07:01Sure.
07:02I think this is really smart.
07:03The problem for me is I'd like to really understand a product when I invest in it.
07:08And you might be too early.
07:10I can't invest at this point.
07:11So I'm sorry.
07:12I'm out.
07:14Thank you very much for your time.
07:16You know what?
07:17Come on, Dave.
07:18Let's do a deal.
07:20I'm very interested in it, but sometimes it's what's in the best interest for the entrepreneur
07:24too.
07:25I can give you a sharp deal.
07:26Then you may have to raise more capital and then you get diluted.
07:28Well, give him something to start with.
07:30What do you want him to do?
07:31Let them decide.
07:32The only reason we're here is to get one of you on this team to guide us, to mentor us,
07:36to get us into distribution opportunities and help scale our costs down.
07:40We want you on this team.
07:42You're not going to like what I'm going to say because me taking more of the company
07:45than you own is not in your best interest.
07:48And I need you to be a little selfish for yourself.
07:51So I'm not going to give you an offer.
07:52I'm out.
07:53Thank you, David.
07:55Thank you, Sharks.
07:56Good luck, guys.
07:57Congratulations.
07:58I will be a customer for sure.
07:59I am definitely a customer though.
08:00This isn't our first objection.
08:01It is not going to be our last, but there's a problem out there we're solving and we're
08:05going to keep going after it.
08:06We're going to continue on.
08:08The team follows the motto that I lived in the Army.
08:11We're never going to quit.
08:12We have paying customers out there, not only residentially, but commercially, and we're
08:15going to keep going.