We're halfway through this season of Entrepreneur Elevator Pitch, with more than $400,000 invested so far. Will our remaining contestants finish at the top, or will our titan investors send them back down to the bottom floor?
No matter how prepared an entrepreneur may be, there's no telling what will happen when the elevator doors close and the countdown clock begins. Time and time again, we see people lock up and stumble as their precious 60 seconds tick away. But never have we seen a contestant pull themself out of a gut-wrenching spiral and recover like a rockstar like we do in the episode. "That was one of the best fumble and recoveries I've ever seen," exclaims investor Marc Randolph.
See if their impressive recovery results in funding on this new episode of Entrepreneur Elevator Pitch!
No matter how prepared an entrepreneur may be, there's no telling what will happen when the elevator doors close and the countdown clock begins. Time and time again, we see people lock up and stumble as their precious 60 seconds tick away. But never have we seen a contestant pull themself out of a gut-wrenching spiral and recover like a rockstar like we do in the episode. "That was one of the best fumble and recoveries I've ever seen," exclaims investor Marc Randolph.
See if their impressive recovery results in funding on this new episode of Entrepreneur Elevator Pitch!
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NewsTranscript
00:01Going up.
00:03Halfway through the season and over $400,000 invested so far.
00:10Will our remaining entrepreneurs finish at the top?
00:14Or will our panel of elite titans send them back down to the bottom floor?
00:19Let's see what we've got.
00:20This is Entrepreneur Elevator Pitch.
00:25Presented by Amazon Business.
00:30Today in the boardroom.
00:33Kim Perel, CEO of 100.co.
00:37Mark Randolph, co-founder and first CEO of Netflix.
00:41Gary Swart, a Polaris partner and serial entrepreneur.
00:50First in the elevator, an entrepreneur shaking things up with their guilt-free, health-conscious cocktail mix.
01:01Going up.
01:04Hello, JT.
01:06Welcome to the elevator.
01:08Your pitch begins in 3, 2, 1.
01:14Who's ready for happy hour?
01:15My name's JT and I'm the founder of CraftMix, a delicious cocktail and mocktail mixer that comes in a convenient pocket-sized packet.
01:22Now, I have a funny story for you.
01:24Four years ago, when I was making samples in my own kitchen, we stood in this very elevator.
01:28Our idea was laughed at and we weren't even let up into the boardroom.
01:32Now, we're in over...
01:35Now...
01:36Crap.
01:37Oh, my God.
01:38Keep going.
01:39Come on, JT.
01:40Oh.
01:41Now, we're in over thousands of doors nationwide.
01:44We're in Walmart, Sprouts.
01:45Oh, my God.
01:46I got to hurry this up.
01:47We're in JetBlue.
01:48We're in Uber.
01:49We're in Uber.
01:50We're in Uber.
01:51We're in Uber.
01:52We're in Uber.
01:53I got to hurry this up.
01:54We're in JetBlue.
01:55We're in Walmart.
01:56We're also in...
01:57Let's see.
01:58What's it called?
01:59We're in QVC every month.
02:00We're going to do over 8 million sales this year.
02:02We're going to be doing, let's see, 90% product margins.
02:05We're going to be profitable, so I know you guys like that.
02:07You're profitable.
02:08I messed up this pitch, but we're doing big things.
02:10We gained over 70,000 followers in the last week.
02:12Last thing I'll say is we're raising 500,000 for 2%.
02:15The investors, the panelists, they would have made over 50 times their money.
02:18Don't make the same mistake they did.
02:21Oh!
02:24He started so strong.
02:26I think that was one of the best fumble and recoveries I've ever seen.
02:29I agree, actually.
02:30He came down to the second.
02:32What did he forget?
02:33Because the sales sounded good.
02:35He's actually in business.
02:36He's got a lot of partners.
02:37What did he say on sales?
02:38I missed it.
02:39Me too.
02:40He was speaking so fast, I lost it.
02:41I don't remember.
02:42I heard a number, and I perked up, and that's enough for me.
02:44It wasn't an ideal pitch.
02:46Yes, he flopped.
02:47I actually like that he still came back in the end,
02:50and he had all the data that I want to hear as an investor
02:53and that I want to hear more.
02:55Only one way to find out.
02:56Let's do it.
03:05Attention, JT.
03:09Your pitch
03:12has been
03:17approved.
03:18Oh, my God, I get a second chance.
03:20Oh, my Lord.
03:24JT, I need a cocktail after that pitch.
03:27We're all curious to learn more,
03:28so can you just remind us your numbers a little bit?
03:31Absolutely.
03:32At first, we've grown by over 300% year over year.
03:36We're going to be doing over $8 million in sales this year profitably.
03:39I know you guys like that word.
03:40We have over 90% product margins
03:42with room to get to closer to like 95% to 98%.
03:45Wow, I'm already glad we let you in.
03:47$8 million is pretty impressive. Congratulations.
03:49Where's that revenue all coming from?
03:51Amazon is where we launched.
03:52We're the number one cocktail and number one mocktail on Amazon.
03:55Then we have our own online store.
03:56We just launched a TikTok shop.
03:58We also do Walmart, Sprouts, Raley's.
04:00The list goes on.
04:01The product's a mixer?
04:02Let me give you some drinks,
04:03and then I'll show you how it's made.
04:04How about that?
04:05You guys are going to fight over who gets what.
04:06I'll take either one.
04:07There's alcohol in here.
04:08There you go.
04:09Haven't bartended in a while.
04:10That's what I would have picked.
04:11Perfect.
04:12Perfect.
04:13So...
04:14We're non-alcoholic.
04:15We don't have to go by any rules or regulations.
04:17So today you're drinking the mocktail version.
04:19If you want a full cocktail version,
04:21it's as easy as possible.
04:22You just use one ounce of liquor,
04:24three ounces of sparkling or flat water,
04:25and you pour it in the packet, and that's it.
04:27It's really good.
04:29And one thing I didn't say in the elevator is
04:30they're truly guilt-free because they're low-calorie,
04:33low-sugar, made with only natural ingredients.
04:35And what do you charge, and what does it sell for?
04:37Yes, so they typically come in those 12 packs that you see there.
04:40That's our online SKU.
04:43It's $15, or $14.99, for 12 packets.
04:46Can we see some of the packets?
04:47Yeah, of course.
04:48These are our top-selling retail SKU.
04:50So, actually, you're supposed to rip this off.
04:53Here's the 12-pack that's e-commerce,
04:55and this is the 6-pack, which is retail.
04:58And I'll just leave some of these things.
05:00I love guys.
05:01Pat, the profitability is like music to my ears.
05:04But in terms of what were your actual financials for last year?
05:07So you're expected to do $8 million, but last year...
05:10A little under $3 million.
05:11In sales?
05:12Yep.
05:13And the year before, about $1 million.
05:15So we've tripled up every year.
05:18Profitability is a tremendously powerful thing,
05:21and I don't just mean for an investor, but for an entrepreneur,
05:23because it gives you control over your destiny.
05:26I really love what I hear.
05:28Those singles, that's our number-one-selling retail SKU.
05:30Those actually go for anywhere $199 to $249.
05:33I'll give you a tip.
05:34Once you almost have the sale, you stop selling.
05:37Well, Mark, it sounds like you're ready to make a deal.
05:39Me, I'm impressed with what you've accomplished.
05:41I love the numbers and the profitability,
05:43but I think this is more in your real house,
05:45and you seem excited about it.
05:46So I'm not going to wrestle you over it,
05:48but I will toast if you do make a deal.
05:57You can tell I'm interested.
06:00I would be willing to get involved,
06:03and I would do half of the ask.
06:05What a story of redemption.
06:12I love that you started in your kitchen,
06:14because I started in my kitchen as well,
06:16and I love your tenacity,
06:17so I'd be willing to put in $300K at the current valuation.
06:23How do I decide right now?
06:25When it comes to CPG distribution, I'm pretty weak.
06:30Don't have a lot of experience there.
06:32On the direct side, I'm pretty strong,
06:35and so certainly to the sense that you feel
06:37that's an important part of your business going forward,
06:39I think I could help a lot there.
06:42I mean, let's talk about it.
06:43I'm an investor in a vodka company.
06:45I'm an investor in a tequila company.
06:46I'm an investor in a beverage company.
06:48JT, it sounds like you've got a high-class problem.
06:54Well, let's see.
06:57I think, oh, man.
06:59I've been a Netflix person since I was getting DVDs,
07:03but our target market is women,
07:06and you're involved with liquor.
07:08I'm going to have to go with...
07:12the person that's involved in this space.
07:14Ah, yes!
07:15Vodka and tequila.
07:16So excited.
07:17We are going to do...
07:18You can take whatever you want.
07:19Yes, we'll do great things.
07:21I'm very excited.
07:22So amazing to meet you two.
07:24Congratulations.
07:25Kim and I are going to be such a good team.
07:26You guys are going to see CraftMix is going to take over
07:28and become the number one mixer everywhere.
07:30Cheers to the great deal.
07:32Cheers to that.
07:33Well done.
07:34Profitability, growth.
07:35I look forward to watching from the sidelines.
07:39Entrepreneur Elevator Pitch is presented by Amazon Business
07:44for every organization at every stage of growth.
07:53Next up, an entrepreneur with a line of postpartum products
07:57designed to support new mothers during their recovery journey.
08:09Going up.
08:11Hello, Natalie.
08:13Welcome to The Elevator.
08:16Your pitch begins in 3, 2, 1.
08:22I'm Natalie Dowling, and I'm the founder and CEO of Popped,
08:25a CPG birth recovery brand.
08:27When I had my first son, I was totally blindsided
08:30by birth recovery.
08:31As a lifelong athlete and tomboy, I'm used to sucking it up
08:35and toughing out my injuries,
08:37but there was no recovery protocol when I had my first son,
08:40and I felt like it was a next-level injury.
08:43The months that followed my son's birth
08:45were truly some of the most darkest,
08:47most traumatic moments of mine and my husband's life,
08:50so I decided to create the products that I wish I had
08:52so no other mother would feel the way that I did.
08:54We have four products for sale,
08:56our Peri Bottle, Witch Hazel Foam,
08:59Reasonable Hot and Cold Packs, and USDA Organic Nipple Balm.
09:02Our year-to-date sales are $200,000,
09:06mostly on Amazon.
09:07We're launching a buybuybaby.com
09:09in the next couple weeks,
09:10and 30 stores in the next couple of months.
09:12My ask today is $100,000 for 10% of my company.
09:16So who wants to make motherhood more magical with me?
09:22So, you know, that was kind of, I would say, down the middle.
09:25You know, I'd say maybe.
09:28I liked her pitch. I thought it was crisp.
09:29We don't know anything about the numbers.
09:31She didn't talk about postpartum depression,
09:33which happens to be a huge market.
09:34I mean, I think it affects one in five women
09:36or something like that in the U.S.
09:37A couple-billion-dollar market.
09:39And her revenue number's just on Amazon.
09:41It sounds early, but interesting.
09:43I actually like your pitch
09:45maybe a little bit more than her pitch.
09:46In terms of really understanding
09:48the total market opportunity for this,
09:50because it seemed quite limited,
09:51how big is the opportunity,
09:53and, like, how big does she see it?
09:55Well, the thing in this market is the clinical validation.
09:57You have to get beyond just lotions and potions.
09:59Well, this sounds like this might be in your wheelhouse, Gary.
10:02Might be in my wheelhouse. I'm curious to learn more.
10:04Let's find out if Kim and I share your views.
10:15Attention, Natalie.
10:18Your pitch...
10:21has been...
10:26approved.
10:28Yay!
10:31Hi!
10:32Natalie, welcome to the boardroom.
10:34Congratulations for being here.
10:36I love the fact that this was a business you started
10:38because you saw a problem, and you saw a personal problem.
10:41Yeah, absolutely.
10:42I mean, mothers are very needy after having a baby.
10:44Focus is typically usually on the baby
10:46and not enough on the mom.
10:48Sounds like a big, like a lot of other products doing this,
10:50or do you feel you found some unique niche?
10:52Um, I think it's very unique.
10:54Uh, mass market, there's really only two competitors.
10:57Huge opportunity for growth, in my opinion.
10:59Can you explain a little bit more about the unique difference
11:02of your product versus those mass competitors?
11:04Yeah, we focus on Made in the USA
11:06because we think a short, sustainable supply chain
11:09and being able to see who's making our products
11:11and what's going into them is really important.
11:14Logistically, it's a lot easier, too, obviously, as a business.
11:17But we do also focus on natural and organic alternatives,
11:20whereas our competitors don't.
11:22How do you reach the market,
11:23and where's the leverage in your business model?
11:25Great point. People would rather spend money on cute baby clothes.
11:27I know I would, but actually with a lot of our moms,
11:30it's a lot of word of mouth, a lot of Amazon.
11:32Can we see some of the packaging?
11:34Sure, yeah.
11:35I do like the logo, too, with the PP in the middle.
11:37It takes a while for people to put that together sometimes.
11:40The branding is beautiful, without a doubt.
11:43You can see all the effort that you put into it.
11:45This is the first money you're raising.
11:47You're raising $100,000.
11:49What are you going to use the money for?
11:50It's not going to get you very far.
11:52Well, scaling right now is a huge issue for us.
11:55We've been maxing out credit cards very strategically.
11:58I'm confident that we could make use of every single dollar.
12:01What's the average selling price?
12:03Yeah, sure. Our peri bottle is $9.99.
12:05That's our lowest, and our highest selling price product
12:09is the hot and cold packs, $14.99.
12:12And then the two middle ones are $11.99,
12:14which is cheaper and more affordable
12:16and more price accessible for our customers.
12:18A little bit about the clinical validation.
12:21So what's the proof that it works?
12:23All of our ingredients have been third-party tested
12:25by a party to make sure the preservative efficacy,
12:29all that stuff is good.
12:31But ultimately, our reviews, I really feel like,
12:33speak for themselves.
12:34All of our products have 4.5 stars and above on Amazon,
12:37and I do feel like we're starting to create a community
12:40where obviously if it works for one mom,
12:42it can work for another mom.
12:43So we try to design our products
12:45to hit all the different things.
12:48I mean, I, yeah, guys, I love what you're doing.
12:51From a business perspective,
12:53I personally would love to see more traction in market
12:56and see how the retail sales goes,
12:58because I think that's a big opportunity.
13:01So unfortunately, I'm going to pass.
13:03Okay, I appreciate it.
13:05Surprisingly, this is the kind of size company
13:07that's interesting, because you are.
13:08It's almost nascent in terms of where you're going
13:11and what direction you take.
13:12However, the actual specific product
13:15I don't think I could add a lot of value,
13:17even as mentoring, so I think, unfortunately,
13:20I'm going to need to pass as well.
13:22Okay, I appreciate it.
13:24This is a tough one for me.
13:26You're doing so well with so little,
13:30but I just feel like it's a little too early,
13:33so I'm a reluctant pass.
13:35Well, Natalie, I'm afraid that I don't think
13:38we have anything for you today,
13:40except, of course, for our best wishes
13:43that you can be successful.
13:46Best of luck, Natalie.
13:49I'm feeling really good.
13:50I'm really grateful that I had the opportunity
13:52to come and pitch to them
13:53and just have their eyes on my business.
13:56Ugh.
13:57I know.
13:58She has a lot of hurdles to get over,
13:59and she doesn't need a lot of money to get over them.
14:02I need some mentorship.
14:03There's so many questions that I think
14:05she just needs the support around her to help.
14:07Maybe there's an alternative way that we can help her.
14:11What are you thinking, Mark?
14:12You think what I'm thinking?
14:14Attention, Natalie.
14:15Your presence has been requested back in the boardroom.
14:19Oh, whoa.
14:20Okay.
14:25Hey, guys.
14:26Welcome back.
14:28We're taken by what you're trying to do.
14:30I can't tell you how many times we hear people
14:32who have ideas, who have some problem,
14:36and then do nothing about it,
14:37and you are out doing it,
14:39and we think we might have something that can help.
14:44On behalf of Amazon Business,
14:46we'd like to award you $10,000 in cash
14:50that you could use any way you'd like
14:52to grow and support your business.
14:55Oh, my gosh.
14:56Thank you so much.
14:57So, hopefully that helps a bit.
14:59Well-deserved.
15:00Well-deserved.
15:01Shazam.
15:02Thank you guys so much.
15:04I appreciate it.
15:07Yes, congratulations.
15:09With this gift from Amazon,
15:10we're going to be able to make more purchase orders
15:12and scale a little bit faster than we would otherwise.
15:15So, thank you, Amazon.
15:19Media, enterprise, and government websites worldwide
15:23trust WordPress VIP to run, grow, and secure their websites.
15:30No one is successful alone.
15:32It's important to surround yourself with individuals
15:35that can help bring your vision to life
15:37because investors aren't just betting on you.
15:40They are betting on your ability to bring on a team
15:43to make it happen.
15:49Next up are two entrepreneurs
15:52whose app is connecting the world one recipe at a time.
15:56Going up.
15:57Hello, Jake and Matthew.
16:00Welcome to The Elevator.
16:02Your pitch begins in three, two, one.
16:09My name is Jake Aronskind.
16:10I'm Matt Skolnik.
16:11And we're the co-founders here at Pepper.
16:13Pepper is the leading social cooking app
16:15in the U.S. and around the world.
16:17And we're here to help you get started.
16:19So, let's get started.
16:20I'm Matt Skolnik.
16:21I'm Jake Aronskind.
16:22And we're the co-founders here at Pepper.
16:24Pepper is the leading social cooking app
16:26for the community of over a million
16:27registered users worldwide.
16:29We help everyday home cooks
16:31to build their digital social cookbooks
16:33and share recipes from across the internet.
16:36Jake and I grew up together
16:37on the sports field at Sleepaway Camp,
16:39interning together and exploring Barcelona
16:41during study abroad.
16:43With our shared passion for cooking
16:44renewed during quarantine,
16:46we set out to solve the problem
16:47of the disaggregated nature of organizing recipes
16:50and the antiquated cooking experience.
16:52Pepper makes cooking simple, social, and fun.
16:55We've over 75,000 recipes shared to date
16:58and 2.5 million saved.
17:00We just launched Pepper Plus three months ago
17:03and have already scaled to over 50,000 in ARR.
17:06We're here seeking a $250,000 investment
17:09in exchange for 2.5% of the company.
17:11We know that partnering with one of you
17:13is a recipe for success.
17:14We cannot wait to chat with you guys more.
17:19What do you guys think?
17:20Well, I thought it was a good pitch.
17:21I mean, they nailed the timing of it,
17:23but there's a virtual cornucopia
17:25of websites out there with recipes.
17:27How do they distinguish themselves?
17:29I felt the same way.
17:30I didn't understand what exactly is in an app.
17:33It sounds like it's just basically
17:34a way to share recipes with other people.
17:36Could it be as simple as that?
17:37$50,000 in three months?
17:39People are paying for something.
17:41It's a real business,
17:42but they didn't bring life to the numbers for me.
17:44I'm really uncertain about this.
17:46What do you guys wanna find out?
17:47Ready to vote?
17:48I just wanna wait to answer it.
17:49That's right.
17:51Okay.
17:58Attention, Jake and Matthew.
18:02Your pitch...
18:05has been...
18:10approved.
18:11Yes!
18:13Jake, Matt, welcome to the boardroom.
18:15Thank you so much for having us, guys.
18:17I think all of us were a little bit hesitant
18:19on just the passion of why we want to invest in Pepper.
18:24So we set out to build a place
18:25where everyday home cooks could feel comfortable
18:28sharing what they were making at home.
18:29On Pepper, you have a profile page
18:31where you can share your original recipes
18:33and any recreations you have.
18:34You can also share collections with others,
18:36whether it's dinner parties or date nights.
18:38We also allow you to order for same-day delivery
18:41through an integration we have with Instacart.
18:43We've processed over 150K worth of volume,
18:45and now we're adding gamification to the entire thing
18:47to make cooking fun
18:48and really make it a place where, in 2024,
18:50you're having more fun than you have anywhere else.
18:53So I can, like, follow Gary
18:55and see his recipe for day-old lettuce
18:57or something like that, right?
18:58Exactly, and so when you click into the recipe,
19:00you see the ingredients and the dietary restrictions
19:03and the time it took to cook and any notes on it.
19:05It's really about bringing community and fun to cooking.
19:08I think for so many people,
19:09cooking is not a fun experience,
19:11and when you add in following your friends and family...
19:13All right, the ingredient that I'm most curious about...
19:15Me too.
19:16...is the lettuce.
19:17So tell me about the numbers.
19:18So right now, it's $3.99 per month and $29.99 annually.
19:21Wow, that's cheap.
19:22But how many members have actually signed up?
19:24We have around 1,500 paid subscribers.
19:27What does it take for this business to achieve lift-off?
19:30So it's really the product-led growth,
19:32the organic marketing that we're doing,
19:34as well as the content creators
19:35that's really taking this business to the next level.
19:37And how do you guys divide your responsibilities
19:40as co-founders?
19:41I'm the CEO, Matt's COO.
19:43I also take on chief product responsibilities
19:45as I design the entire app.
19:46My background is I graduated Vanderbilt
19:48studying economics and computer science.
19:50And I worked in M&A for 3 1⁄2 years.
19:52My clients were VCs in private equity firms
19:54investing in early-stage technology startups,
19:56and so the adjusted EBITDA analysis was not for me,
19:59and I just always had this itch
20:00to, like, want to build something myself
20:02that I was super passionate about.
20:03And for Jake and I, like, we literally grew up
20:05making pita at our sleepaway camp together,
20:07and bringing people together around food and cooking
20:10is something that we've been passionate about
20:12since we were 8 years old.
20:13Speaking of EBITDA analysis,
20:15how'd you come up with the valuation?
20:17Our most recent raise was on a 7.5 safe.
20:19That's what most of the funds that I mentioned earlier.
20:21We don't spend anything on marketing.
20:23We haven't in years.
20:24And we scaled to 50K in ARR
20:26in just these first three months,
20:28frankly, just dipping our feet
20:29into subscription optimization.
20:31So imagine what we can do with a little bit of resources.
20:33So I've actually learned something really important,
20:36and it's about myself, actually.
20:37I kind of need to feel this excitement
20:40about wanting to be involved.
20:42I'm hearing the numbers,
20:43and I'm hearing you guys are excited.
20:45I'm not excited, and I don't know why.
20:47But it's enough for me to know that, uh...
20:52So unfortunately, I'm afraid I have to pass.
20:55What I worry about is, one, how you're gonna reach users,
20:58and second, how you're gonna keep them engaged.
21:00Feels a little heavyweight to me.
21:02For that reason, I'mma pass.
21:05Okay.
21:06I want to really love what I'm investing in.
21:09I don't cook a lot.
21:10I can't be so excited, as excited as you guys are.
21:13So I feel your passion.
21:14I want to be passionate with you,
21:15but I can't get there.
21:17So unfortunately, I'm going to pass.
21:21We all wish you the best of luck, I'm sure.
21:23We really appreciate the opportunity, guys.
21:24You know, very impressed with everything you guys have done
21:26and the opportunity here, so thanks, guys.
21:28Good luck, guys.
21:29Thank you so much.
21:30Thanks, guys.
21:31Happy cooking.
21:32We left it all out on the field.
21:34We displayed our passion.
21:36We talked about the metrics.
21:37We sold the story and the vision
21:39for improving the cooking experience
21:41for people around the world,
21:42and they didn't resonate with it, and that's okay.
21:44There's features, advantages, and benefits.
21:46And a benefit is if you have a need.
21:48An advantage is if why you should like that product.
21:50And they were trying to give us advantages,
21:52but they weren't landing.
21:53And I think you have to know who you're pitching to.
21:55Yes, you may be an excellent subscription investor,
21:59but are you a cooking aficionado?
22:01I do not know.
22:02If they knew they were pitching to a subscription aficionado,
22:05they would have come in with the things that they know
22:07a subscription person dies for,
22:09things like acquisition cost and lifetime value,
22:12and that's not where this went.
22:17Tune in next week as entrepreneur elevator pitch continues.
22:21The pitch did feel a bit short.
22:23Yeah, we don't know revenue.
22:25We don't know why she got her $3 million valuation.
22:28It's insulting.