カテゴリ
📺
テレビトランスクリプション
00:00Tonight on Shark Tank.
00:02I'm here to take the word drinking back from alcohol.
00:05Whoa!
00:06Yeah! Nice!
00:07C'est bon, c'est très bon.
00:08This has, of course, been our dream our entire lives
00:10to stand on the stage.
00:11You're asking me to make a bet on the business.
00:14Every single person who's ever bet on me has won.
00:17I feel a little insulted that you just let me sit there.
00:20Whoa!
00:21Grasshopper will learn.
00:22The problem is this is hard to sell.
00:24But make no mistake, I am a lion.
00:27Wow!
00:30First in the Tank is a product created for students by students.
00:49Woo!
00:50Woo!
00:51Hi, Sharks. My name is Matt Kronberg.
00:53And I'm Sam Chasen.
00:55We're here today seeking $250,000
00:57for 5% of our company, Storage Scholars.
00:59Aww, guys.
01:01So think back to your first year of college.
01:03It's the last week of school,
01:05you're saying goodbye to all the new friends you just met,
01:07and you're up late studying
01:08when you get the text message from Mom.
01:10Hey, good luck on your last exam tomorrow, sweetie.
01:13Are you all set to move out?
01:15The panic sets in.
01:16You don't have a car to buy boxes,
01:17you haven't reserved that storage unit,
01:19and you don't even remember how that sectional couch
01:21got into your dorm room.
01:23Well, that is where we come in.
01:25You can simply go online and create an account.
01:27You can add your parent to overlook your order information,
01:29and you can pay a $50 fully refundable deposit,
01:32and we'll handle your entire move out for you.
01:35Students are given boxes, tape, bubble wrap, and labels
01:38on campus if we prefer final exams.
01:40They pack up their belongings, lock up their room, and go home.
01:43We have a partnership with their university
01:45to unlock that room once the campus is empty,
01:47and we'll move everything into storage for the summer.
01:49We'll even have all their belongings ready and waiting
01:51in their new room when they return to campus
01:53the following semester.
01:54So, Sam, who does all this moving?
01:56That's the best part.
01:58All the moving is done by trained fellow students
02:00creating high-paying jobs on campus.
02:02So, Sharks, as two 18-year-olds terrified
02:05at the thought of student debt,
02:06we built storage galleries in college
02:08which allowed each of us to graduate debt-free.
02:10Who's ready to join us on our mission
02:12to empower students across America to do the same?
02:15Mm-hmm. Wow.
02:16All right.
02:17How many colleges you guys signed up?
02:19We're on 23 college campuses.
02:21Where are you currently?
02:22So, we're at a variety of colleges
02:24ranging all the way from New York down to Texas.
02:26It started at our alma mater, Wake Forest University.
02:29We kind of grew in the Carolinas
02:31and then kind of spread our footprint.
02:32How much is the total move?
02:34It averages out to $559 for the whole service.
02:37So, that's boxes, tape, and packing supplies
02:39delivered on campus.
02:40That's the pickup, the storage for the four months,
02:43the delivery, and $100 of insurance
02:45complimentary on every item.
02:46I'm assuming you're going to pay the college
02:48to get into their service.
02:49So, our strategy as a business
02:51is we want to partner with colleges
02:53to get their full endorsement
02:54and create this total key access,
02:56pack it, lock it, leave it experience.
02:58Okay.
02:59$559, that's my revenue.
03:00Where are my costs?
03:02So, our costs are about $199,
03:04and that includes all of the boxes, tape,
03:06and packing supplies, the labor,
03:08the warehousing, everything.
03:09We're the only people that I know of
03:11doing the full key access system,
03:13which they pack it, lock it, and leave it.
03:14So, there's nobody else doing key access?
03:16Not with the students and with the technology.
03:18And we have our own custom-built technology,
03:20which is what allows us to have
03:21the 4.8 star ratings that we do.
03:23What's the custom technology?
03:24It's a web app.
03:25It was actually built by his brother,
03:27who's a full-stack developer,
03:28over the last six years.
03:29But essentially, it just does so much
03:32of the automating for our process.
03:34To be able to do 3,300 moves across 23 campuses
03:37in nine states at the exact same week of the year,
03:39and nail it every time.
03:40Wow.
03:41Impressive.
03:42Tell us about your background,
03:44and why did you come up with this?
03:45So, I grew up in a family of two high school teachers,
03:47and education was highly valued.
03:49But when I decided on Wake Forest University,
03:51$70,000 a year.
03:53Wow.
03:54I was looking at over $100,000 in student loans.
03:56And I always knew that when I got to college,
03:58starting a business would be my path to financial freedom.
04:01So, when I got to college,
04:02I noticed there was a gap in the market.
04:03I also had a bunch of friends that were looking to make money,
04:06and I kind of combined the two needs together.
04:08We went door-to-door,
04:09getting made fun of every single day.
04:11But by the end of that year,
04:12we serviced 64 customers,
04:14had $18,000 in revenue,
04:15and that's how storage was going.
04:17I just wanted to hear,
04:18so you went in with this huge $100,000-plus debt
04:21you were going to graduate with.
04:22You started a business while you were at school.
04:25Yes, sir.
04:26And paid off all that debt.
04:27Absolutely.
04:28Wow.
04:29And I came in a year later.
04:30I had a very similar story.
04:31I was trying to pay for both my undergrad,
04:33and then I eventually had big dreams
04:34of going to medical school.
04:35So, he said,
04:36why don't you come work
04:37for this business opportunity that I have?
04:39So, I ended up working a lot.
04:41I worked 106 hours in seven days,
04:43unloading trucks until 4 in the morning,
04:45just dying to prove my worth to this business.
04:47And I was at the right place at the right time.
04:49Are you guys partners now?
04:50Are you 50-50?
04:5170-30 breakdown right now.
04:52Yeah.
04:53Okay.
04:54Had you ever taken any money from anybody else?
04:56Nope.
04:57Zero dollars to date.
04:58And how old are you guys now?
04:59I'm 24.
05:00He's 23.
05:01Yeah.
05:02And this is what you do full-time?
05:03100% full-time.
05:04Absolutely.
05:05Good for you guys.
05:06Good for y'all.
05:08So, what are your sales to date?
05:09So, this year, we've done $1.826 million in sales.
05:10Oh, my God.
05:11Congratulations.
05:12So, at your biggest school,
05:13what's the most number of storages that you have at your biggest school?
05:16Yeah.
05:17So, we're doing about 700 students summer storage at Wake Forest University.
05:20At Wake Forest.
05:21So, that's your home school, right?
05:22Yeah, yeah, yeah.
05:23So, everybody knows you.
05:24What about a new school that you added outside the Carolinas, like in Texas?
05:26Yeah.
05:27I mean, SMU, we did 269 customers.
05:29So, how do you grow that?
05:30So, a lot of it is through the partnership with the university,
05:33and they're going to help email on our behalf, get on the university website,
05:36which drives SEO.
05:37So, there's a whole variety.
05:38So, it goes back to you.
05:39You've got to get the university.
05:40Yeah.
05:41Listen, I'll make you an offer.
05:42Okay.
05:43You've got an offer coming.
05:44I'm going to make an offer coming.
05:45All right.
05:46Look, at the end of the day, either it's a good business or it isn't.
05:49No way for 5%.
05:50I'll do the 250 for 20%.
05:53Thank you so much for the offer.
05:55I appreciate it.
05:56We really do.
05:57Hey, it's an offer.
05:58What do you got, Robert?
05:59All right.
06:00Well, listen.
06:01I just want to tell you what I think.
06:02First of all, great idea.
06:03I mean, necessity, the mother of invention, right?
06:07But, I think you need to give your valuation an evaluation.
06:11And it's just, it's so out there for me, you guys.
06:15I absolutely love you, but I am up.
06:18Thank you, Lord.
06:19Thank you, Lord.
06:20I appreciate it.
06:21I like this.
06:22I'll offer you the 250 for, I'll match Kevin.
06:26250 for 20%.
06:28Thank you so much, Damon.
06:29Really appreciate that.
06:30So, guys, I, I mean, super impressive.
06:35Great business sense.
06:36You have a great maturity about you.
06:39In some businesses, moving slowly is good.
06:42What I've learned from you, you got to go faster.
06:45Yeah.
06:46And so, to go faster, this is where money helps.
06:48So, you got two offers.
06:49Sure.
06:50Kevin offered 250,000 for 20%.
06:53Damon offered 250,000 for 20%.
06:55I like the 20%, but I'll actually give you more money.
06:59I think your valuation is inflated, but it's a bit of a bet on you.
07:04I'll give you 500,000 for 20%.
07:07Whoa.
07:17One shark is out.
07:19Kevin and Damon have each offered 250,000 dollars for 20% of Matt and Sam's college moving service storage scholars, but Robert has offered to double the money.
07:29I'll give you 500,000 for 20%.
07:32Whoa.
07:33Thank you so much, Robert.
07:34That's incredible.
07:35You go faster.
07:36Guys, I'll sweeten the deal.
07:38Robert has 500,000 for 20%.
07:41Kevin and I will give you 250 a piece for 40%.
07:47I appreciate it.
07:48Matt, I offered you twice what you were asking for.
07:51Yeah.
07:52Far better than the other two sharks.
07:54What do you want to do?
07:55I mean, I think at this point, like, this has, of course, been our dream our entire lives, to stand on the stage.
08:00And I wouldn't want to not hear from every shark here.
08:02I think that's an absolutely incredible offer.
08:04I'm just wondering, we've heard from everyone, but if there's potential another offer.
08:07Mark, what are you going to do?
08:08Oh, there is another shark.
08:09Yeah.
08:10So I'll make you guys an offer.
08:12And congrats for getting all these offers.
08:15I'll make it to 250K.
08:16Yeah.
08:17But I want 12%.
08:18And the reason I'm asking for a little higher valuation than Robert, you still get to keep most of your equity.
08:23So, you know, you're diluted minimally.
08:25But, I mean, I've got a platform.
08:27And, you know, there's schools that I have connections to.
08:30Yeah.
08:31And if I get out there starting to talk about it, maybe they won't all be partner schools.
08:34Sure.
08:35But the phone's going to ring for you to open up new schools.
08:37Absolutely.
08:38Right?
08:39And so that's the value that I can bring.
08:40Yeah.
08:41And I know, thank you so much for that offer.
08:42I know college debt is a big thing to you.
08:44Yeah, of course.
08:45You've been very outspoken about it.
08:46Yeah, for sure.
08:47So, guys, you have four offers.
08:48What do you want to do?
08:54Yeah.
08:55So, first of all, guys, this is incredible.
08:57This is a dream come true to get all these offers to be here with you all.
09:00We do have one counter.
09:01We're interested in all the sharks right now, but we have one counter right here.
09:04Would you be willing to do 350 for 8%?
09:06No.
09:07I'll do 10%, but you guys are going to have to give up something because I'm going to give you something you can't get elsewhere.
09:14Sure.
09:15Would you come up to 300 for 10?
09:16No.
09:17Do a $3 million valuation?
09:18250 for 10.
09:19Don't worry about the valuation because it's still the same dilution.
09:21And that $50,000 is not going to change a lot.
09:23If you're going to need more money, why would you do that?
09:25Why would you run faster?
09:27Because it's not just about the money.
09:29Well, that's true.
09:32Mark.
09:33Mark, you got a deal.
09:34Done.
09:35Appreciate it.
09:36Let's go, baby.
09:37Let's go.
09:38Yes, sir.
09:39Let's go, man.
09:40We'll get this done.
09:41Appreciate it, guys.
09:42Thanks.
09:43Thanks, guys.
09:45That's crazy.
09:51Mark, you gave us the deal that we were looking for, and we're just over the moon.
09:56I'm speechless right now.
09:57We came in wanting him.
09:58He's super passionate about our mission of eliminating college debt.
10:01He's going to give people the opportunity to be able to do this, create jobs on college campuses.
10:05And I know that he's going to be the right partner to put some wind behind this.
10:08We're really excited.
10:09What was your deal?
10:10$250,000 for 10%.
10:12You cut their value in half.
10:14Sometimes when we negotiate a really good deal for us, the pressure's on us to deliver now.
10:19Yeah, it is.
10:20Yeah, of course.
10:21It is.
10:22It is.
10:23It is.
10:24It is.
10:25In 2012, we saw Oliver Zak and Salam Agvitor make a deal with Mark Cuban for their tattoo
10:30skincare company, Mad Rabbit Tattoo.
10:32Why are you here?
10:33They want to be their premier and the face of tattoo aftercare.
10:35Let's see what they're up to now.
10:38The idea for Mad Rabbit really came to Salam and I in college.
10:42Oliver and I started at $300 each.
10:43We ordered ingredients off of Amazon and skipped class to cook this in his college apartment.
10:48Since airing on Shark Tank, we've landed a deal with Urban Outfitters that placed us
10:52in 150 stores across U.S. and Canada, landed 200 tattoo parlors, and have sold in over
10:57100 countries worldwide.
10:58When we first pitched the Sharks, we only had one product.
11:01The Mad Rabbit skincare system is now up to eight products.
11:04Before pitching to the Sharks, we had sales of $3 million.
11:07Since inking a deal with Mark Cuban, we've done over $14 million in sales.
11:12You guys were really humble.
11:13You didn't brag a lot, but you're kicking a lot of your competitors' ass.
11:16Mark has been a fantastic partner, not only by following on in subsequent rounds, but
11:21also providing strategic business advice.
11:23Advertising online is becoming more and more difficult and getting less and less of a return.
11:28And a big part of what you've done that's really stood out is your own content creation.
11:32To grow in our space, we realized that we had to move away from traditional paid advertising.
11:36That's what led us to inking a deal with the largest tattoo community online and in print.
11:41Mad Rabbit just signed a deal with Inked Magazine, which is the number one source of content
11:45for the tattoo world.
11:46I mean, anybody and everybody who's got any ink on them is aware of Inked Magazine.
11:50They connect as part of a community, and Mad Rabbit is right in the middle of it.
11:54And I can't think of a better place for them to be.
11:57As a first-generation American from Ghana, I am so grateful for the experience that Shark Tank has given me.
12:03I could never have imagined running a multimillion-dollar business.
12:06My advice to entrepreneurs everywhere is never stop learning and never stop asking questions.
12:11Welcome, everyone, to the bi-weekly all-hands meeting.
12:14If two college students could start a multimillion-dollar business with $300 each,
12:18we have faith that you can do it, too.
12:20All it takes is hard work and perseverance.
12:22I believe that if there's a will, there's a way to succeed.
12:37Next in the tank is a stylish alternative to boozy beverages.
12:41Bonjour, sharks. My name is Melanie. I'm the founder of Guia.
12:55I was born and raised in Lyon, France, and I now live in Los Angeles, California.
12:59I'm seeking $250,000 for a 5% equity stake in my company, Guia.
13:06Sharks, how many times have you wanted to take a night off of booze,
13:10and the only option at the party was water?
13:13How many times have you wanted to take a night off of drinking
13:16and been asked if you're sick or pregnant?
13:19I'm here to take the word drinking back from alcohol.
13:22That's why I created Guia.
13:25Guia is delicious. It's fresh, bitter, complex.
13:30It has notes of yuzu, rosemary, juicy Riesling grapes, and a sharp kick of citrus.
13:36And it's non-alcoholic. There's truly only good things in it.
13:39A Guia spritz is the perfect accompaniment to any celebration without a hangover the next morning.
13:45So how do you drink Guia?
13:47You can mix it with your favorite bubbles or have one of our ready-made spritzes, sharks.
13:52Who is ready to get over the influence with Guia?
13:56Wow, how do we drink it? I want to try it.
13:58Let's have one together.
13:59Okay.
14:00So you can have one of our ready-made spritzes.
14:03This one is mixed with sparkling water.
14:05This one is mixed with our homemade ginger beer.
14:07It's my personal favorite.
14:09And lime and salt is our newest one.
14:12Oh, wow.
14:13That's really nice.
14:14Really, how many calories in this?
14:16About 50.
14:17In the whole thing.
14:18In the whole thing.
14:19Millie, this is really nice.
14:21I love this one.
14:23The idea is that it's an alcoholic Amaro, like an Italian drink, you know, akin to a Campari or an apple spritz.
14:29Oh, that's what it reminds me of.
14:30Like a Campari.
14:31Exactly.
14:32Yeah.
14:33But an all-natural version, much lighter, and you know exactly what's in it.
14:36Whoa.
14:37Yeah, it's nice.
14:38C'est bon, c'est très bon.
14:39Merci beaucoup.
14:40It's got bitters in it.
14:41Très, très bon.
14:42What do you sell each one of these for, and what does it cost you to make?
14:45Yes, so we actually just increased our prices, and interestingly, our sales have gone up.
14:50So our bottle now retails for $38.
14:53It has 10 to 12 servings in it, and it costs us $6.50 to make.
14:58Our spritz costs us $1.25 to make.
15:01In six months, that will be 70 cents only, and it retails for $5.
15:05Let's talk about the business.
15:07Hopefully, we're going to hear some great sales numbers.
15:10Last year was our first calendar year, and we were 75% online because we were still kind
15:16of on the tail end of COVID.
15:17And?
15:18We made $2.5 million.
15:19Whoa!
15:20What?
15:21What?
15:22How did you sell that $2.5 million?
15:25We just launched with an Instagram post.
15:27That's it.
15:28What?
15:29And it took off.
15:30And so did you make any money on that $2.5 million last year?
15:33Not yet, but we invested very heavily into this year, and we have a two-year tax of profitability.
15:37How much did you lose last year?
15:39A little under a million dollars.
15:41Oh!
15:42Oh!
15:43You lost a million dollars?
15:44How much did you put in?
15:45Well, we have a million dollars' worth of inventory.
15:47How much did you raise?
15:48We had raised $3.5 million.
15:49Oh!
15:50And we're currently raising $6.5 million.
15:51Who did you raise?
15:52No, are you?
15:53Who are you?
15:54What was the valuation at $3.5 million raised?
15:55Well, the first $900,000 was a safe at $7.5 million.
15:56Your first $900,000 that you raised pre-revenue?
16:11Yes.
16:12It was everyone I had ever worked for.
16:14I worked very hard.
16:15You know, I worked for companies like Sweetgreen and Garcia.
16:19I worked at Goldman Sachs and the people that had seen my work before.
16:22How much do you still own of the business?
16:24I still own 57% of the business after this $6.5 million round.
16:28Wow, that's impressive.
16:29What valuation is a $6.5 million round at?
16:32It's a $35 million pre-money valuation.
16:34What?
16:35Holy!
16:36So $41 million, by our numbers, $41 million, because that's pre-money versus post-money.
16:40$41 million.
16:41What's sales going to be this year?
16:43$4.5 million doubling next year.
16:45We have a very...
16:46Wait, I need an alcoholic drink.
16:47Are you kidding?
16:49And Melanie, why are you offering us $250,000 for 5%?
16:54And if I did the numbers, you're giving us a $5 million valuation today.
17:00Like, I'm just trying to understand that conversation with the people you're pitching it to at $40 million,
17:06Yes.
17:07And then telling them you're giving it to us at $5 million.
17:09Yes.
17:10Well, you know, this equity is directly coming out of my shares.
17:13Which is smart.
17:14Good for you.
17:15I want someone to come in and help me build this into a huge business.
17:19We launched in the depths of the pandemic, so we've already overcome, you know, a lot of hurdles.
17:24Currently, we're sold in 750 accounts.
17:27I personally reached out to at least 400 of these accounts myself on Instagram during COVID.
17:32Good for you.
17:33Good for you.
17:342020, there was no other way.
17:35And I said, hey, like, I'm making this drink.
17:37You're a chef.
17:38I really admire.
17:39I would love to send you a bottle.
17:40Please try it and give me feedback.
17:41I really believe non-alcoholic drinks are the future.
17:44Smart thing to do.
17:45And every restaurant in a few years will have non-alcoholic menus.
17:48And I really hope that you'll join me on this adventure.
17:51Here's my thought about this.
17:52So, I think you're super impressive to raise that amount of money.
17:56And you're one of the few that came in to show us the value that we add.
18:01But I, unfortunately, can't drink this.
18:03I have acid reflux.
18:04I want to be in this, but I can't because I can't drink this stuff.
18:09So, I'm out.
18:10Well, thank you very much.
18:12Listen, Melanie, you are amazing.
18:15For me, when I invest in something, I have to be able to partake in it.
18:21And, unfortunately, Damon and I have something similar.
18:24I cannot eat citrus or bitter things.
18:28It just affects me.
18:30And I'm just so sorry about that because I love you.
18:33I wish you good luck.
18:34Thank you so much.
18:35But, unfortunately, I'm out.
18:36Thank you, Lori.
18:37Melanie, the category you chose is one of the hardest ever because it's either expensive
18:44to ship them, it's expensive to store them, it's expensive to get shelf space for them,
18:50and to keep it.
18:51Getting to $50 million in sales to really have an impact is going to cost you $50 to $100
18:56million.
18:57And so, for those reasons, I'm out.
19:00Thank you very much.
19:01Look, Mark's right.
19:02You've somehow picked the hardest category to get into, and you're killing it.
19:08Melanie, I'll give you the $250,000, and I'll give it to you for the 5%.
19:15That's my offer.
19:16Do we have a deal?
19:18Wait.
19:19You may get an offer from somebody who's actually in this business.
19:25You're in the wine business?
19:28Yep, I sure am.
19:29Because, you know, there's no alcohol in this.
19:31Well, do you want to hear my offer or not?
19:32With all due respect to Kevin.
19:33You're going to get a second offer.
19:34So, Melody, I don't want to argue.
19:35I don't want to negotiate against other people.
19:37I'm making a bet on you.
19:38Do you want to hear another offer or not?
19:39I'll give you a $250,000 for exactly what you asked for.
19:43If you don't want that offer, I'm happy to step out, and you can negotiate with Kevin.
19:49I feel like it's not fair not to hear everyone out.
19:52I think that's reasonable.
19:53Is that okay?
19:54You may not like my offer.
19:55Melanie, I'm out.
19:56Ooh.
19:58Ouch.
20:00I'm giving you exactly what you asked for.
20:02He's right, Melanie.
20:03He's right.
20:04I mean, at a certain point, you've got to decide as an entrepreneur, why did you come here?
20:07Because I think if someone comes in here and I give them exactly what they're looking for,
20:11and then they want to hear more, I'm not sure where that conversation's going.
20:15So, all due respect.
20:16I wish you all the best.
20:17Good luck.
20:19So, my offer isn't going to change because of what happened here.
20:22Absolutely.
20:23So, I know what I'm worth.
20:26I also know that I'm in this business, and I also know this category.
20:29And everybody's talking about how difficult it is, and they're right.
20:32But I'm not doing it for 5%.
20:34I'm too valuable.
20:35Oh.
20:36I want 10%.
20:37Oh.
20:38Oh.
20:39Oh.
20:40Your valuation just got crushed.
20:42Oh.
20:43Oh.
20:44Because I have to get up in the morning and work on this.
20:46Oh.
20:47I do.
20:48Oh.
20:49You can moan and groan all you want.
20:50Have another drink.
20:51I'm Corey, Melanie.
20:52You sourced it on her deal.
20:53I love her.
20:54I'm the only shark that is Chef Wonderful and Mr. Wonderful.
20:57I know.
20:58That's why you should give her, you know, a million.
20:59Yeah.
21:00You can say anything you want.
21:01You're out.
21:02What do you think, Melanie?
21:03That's true.
21:04I'm not in a position to accept an offer like that without doing wrong to the people that
21:07have supported me from the beginning.
21:08She has 57%.
21:09So I unfortunately...
21:10It's your stock.
21:11It's not just 57%.
21:12She has 57%.
21:13That puts her under 50.
21:14That puts her under 50.
21:15She's going to go under 50.
21:16And I...
21:17She can do whatever she wants.
21:18You knew that already, Kevin.
21:1910%.
21:20I'm honored, but I can't accept it.
21:26Good for you, Melanie.
21:27Thank you, Melanie.
21:28Good luck, Melanie.
21:29Thank you so much.
21:30Good luck.
21:31Good luck.
21:32Bye.
21:36I walked away without a deal.
21:37I...
21:38You know, I feel like it was fair to hear everyone out, and I took the risk.
21:42And I don't know if Robert will regret backing out of that offer, but, you know, I hope he
21:47lets other people speak in the future.
21:49I think she made a mistake, Robert.
21:50She should have taken your offer for sure.
21:51I think she made a big mistake.
21:53Rule number one in sales.
21:55When you get the order...
21:56Robert, what does ABC stand for?
21:58Always be closing, baby.
22:00Rule number two in business.
22:02Never trust Kevin.
22:03Next up is a vibrant art form from the entrepreneur's homeland.
22:30Nangendev sharks.
22:32My name is Sophie.
22:33I live in St. Louis, Missouri, but I'm originally from Senegal, West Africa.
22:36I'm here seeking $500,000 in exchange for 10% of my company.
22:40I was born into the Wolof tribe.
22:42And in the Wolof tribe, weaving is passed down generationally.
22:45From grandmothers to mothers to daughters to granddaughters.
22:48Senegal is full of joy, color, laughter, and life.
22:51Senegal is brimming with abundance.
22:53But when I first came to the States, I was shocked to learn that many people's perception
22:58of Africa was so interwoven with poverty.
23:01This was such a stark contrast from the place that I grew up.
23:04I wanted to weave my heritage into an art form that told the true story of African craftsmanship.
23:09That's why I created Expedition Sub-Sahara.
23:12Our beautiful, vibrant baskets are made by artisans in Senegal.
23:15All by hand and with love.
23:18Our mission?
23:19To interject joy, color, and culture into every home with our handcrafted storage and home decor solutions.
23:25And with Expedition Sub-Sahara, I'm dedicated to giving back to the very community that raised me.
23:30Now I know that I'm standing amongst sharks, but make no mistake.
23:34I am a lion.
23:36Now who's ready to join me in transforming the home goods space by banishing boring storage
23:40and making this world a more cultured, more colorful place, one happy basket at a time?
23:46Sharks in front of you, you'll find your very own Expedition Sub-Sahara baskets,
23:50so that you two can add some color in your lives.
23:55Wow!
23:56So tell us about, is there a purpose for each one?
23:58Because we have three different shapes here.
24:00Yeah, we've taken our traditional craftsmanship and we've made modern vessels.
24:04They're beautiful.
24:05This big one, for example, is actually our best seller, and it's used mostly for a hamper.
24:10And these are hand-woven?
24:11They're all hand-woven.
24:12Wow.
24:13In Senegal, and you import them in?
24:15Yes.
24:16And what's it made out of?
24:17Like, it reminds me of lanyard.
24:19So they're actually made from sweet grass, elephant grass.
24:22We use a variety of grasses.
24:24And then all the color you see is from recycled plastics.
24:27Yeah.
24:28Okay.
24:29And what does it cost?
24:30How much would this particular one cost?
24:32That one would probably cost, fully landed, $18.
24:35And we sell it for $15.
24:37And how do you sell it?
24:38Do you sell it online?
24:39Do you sell it through retail?
24:40Or tell us about your sales.
24:41We sell 95% online.
24:43Our total sales to date is $900,000.
24:45Wow!
24:46For this year?
24:47$900,000?
24:48Wow!
24:49$900,000.
24:50Wow!
24:51Sophie, I was not expecting that answer.
24:52Oh, wow!
24:53Nice!
24:54Actually, Lifetime, we've made $3.6 million.
24:56Oh!
24:57What?
24:58What did you do last year, Sophie?
25:00Lifetime.
25:01Last year, we did $1.6 million.
25:03You are selling a lot of baskets.
25:05Wow!
25:06So Sophie, last year, $1.6 million.
25:09What did you make on that?
25:10What profit?
25:11So our gross profits was over $1 million.
25:13Wow!
25:14Wow!
25:15What's your gross profits?
25:16What's your gross profits?
25:17About 60%.
25:1860%?
25:19Yeah.
25:20So what's your overhead?
25:21Do you, like, not spend any money on anything?
25:22So that's our gross profits.
25:23So I reinvested into the company quite a bit.
25:24Okay, so gross profits was $1 million.
25:26What was your net profit?
25:27What was your net profit?
25:28$75,000.
25:29$75,000.
25:30$75,000.
25:31Whoa!
25:32Oh!
25:33Let me take you back, actually.
25:34In 2019, we only did $75,000 in sales.
25:39When the pandemic hit, people weren't buying baskets.
25:42So March 2020, we made $4,000 in sales.
25:46And I thought about closing the business because I couldn't sustain it.
25:49Then from March 2020 to May 2020, we did $45,000 in sales.
25:57Wow.
25:58So, unfortunately, George Floyd was murdered.
26:01And with George Floyd's murder came a huge rise through the Black Lives Matter movement
26:07to uplift black businesses.
26:10And I saw a huge shift in my business.
26:13That's awesome.
26:14That's good.
26:15So I had to ramp up production really fast.
26:18I had to bring in weavers, 120 of them to be exact.
26:22So I had to pay them fairly.
26:24I had to make sure that the places where they were weaving were taken care of.
26:28I had to make sure that the farmers had cards to bring the grasses.
26:31So, basically, our margins kind of dwindled because we had a bunch of overhead that we didn't have the previous year.
26:39Got it.
26:40Because it was a mom and pop shop.
26:41Sophie, are you saying that you're paying the weavers on a flat wage?
26:46I just made the assumption you were paying them on a piece basis.
26:49No, we're doing this differently.
26:51Normally, that would be the way, but we're paying them so that they are our weavers.
26:56Not all of them are going to be as productive as the others.
26:59Why don't you just pay by the piece?
27:01What we're going to do is take the master weavers and make sure that they have someone underneath them who can learn from them.
27:07What's the competition doing?
27:09Wait, wait, wait. Hold on.
27:10The problem is that's the way it's always been done, and it has done nothing for my community.
27:16Those baby weavers are going to end up being master weavers.
27:19They have to learn from a master just like I did so that people have a living wage.
27:24So, we're doing things in a way that is different.
27:26Good for you.
27:27Yes.
27:28Sophie, what did you spend on advertising last year?
27:30Last year, I spent $400,000 on advertising.
27:33Whoa.
27:34Whoa.
27:35So, that's where the profit goes.
27:37Tell us about your numbers last month.
27:38Yes.
27:39So, last month we did $160,000 in sales.
27:41So, your average sale was how much?
27:44$260.
27:45$206.
27:46Yes.
27:47Your margins are 60%.
27:48Yeah.
27:49And then it cost you how much to acquire a customer?
27:51It cost me about $116 to acquire a customer.
27:56All right.
27:57You only have five bucks left.
27:58Yeah.
27:59That's your problem right now.
28:00So, it's a break even business.
28:01That's my problem.
28:02So, you're losing money right now.
28:04So, last month you lost money.
28:05We don't lose money.
28:06We kind of just break even.
28:07Where do you see the scalability now that you've set up these systems and people in place?
28:12These are all online.
28:14Right now, it is harder and harder to acquire a customer the way that we're doing it.
28:18So, what I need to do is get these baskets to the masses through retail.
28:23Oh.
28:24Oh, you want to go retail.
28:25Oh.
28:26Now you want to go to retail.
28:27Whoa.
28:28For every customer you acquire, you're actually losing money.
28:30And I think that's a big problem.
28:32I don't like retail for this because it's going to tie up a ton of capital.
28:35In inventory.
28:36I'm sorry.
28:37This is not a business for me.
28:38I'm out.
28:39Thank you, Kevin.
28:40I love your mission and what you're doing.
28:44I think your valuation, I never talk valuation, but the valuation for me is a little off here.
28:50And you're figuring so much out.
28:52So, I wish you good luck.
28:53But I'm sorry I'm out.
28:54I understand.
28:56Sophie, you're in a difficult spot.
28:59But Mark, before you say anything, I started this business with $500.
29:05$500 to $3.6 million.
29:09I've never had a loan.
29:10I've never had any sort of debt, period.
29:13It's amazing.
29:14I took that $500 and I just turned it and I turned it and I turned it.
29:19Imagine what I could do, imagine, with a shark by my side.
29:23I think you operate better as a sole proprietorship where you don't have investors because you
29:28have complete flexibility.
29:30And coming in asking for $500,000 makes it really difficult to say, okay, I know exactly
29:35how I'm going to get a return.
29:37I just don't see that.
29:38So, for those reasons, I'm out.
29:41Sophie, you know, at $500,000, you're asking me to make a bet on the business.
29:48I'm asking you to make a bet on me.
29:51Every single person who's ever bet on me has won.
29:54And I promise you, you will never have somebody who can work as hard as I can.
29:58I don't sleep.
30:00I run the ads.
30:01I pack the boxes.
30:02I still weave when I need to.
30:04I will work like a lion.
30:07I promise you.
30:10Bet on me.
30:12There's a difference between me betting on you, because I'm willing to do that.
30:17Betting on Sophie?
30:19I'm in, baby.
30:20I'm in all day long.
30:22There's no doubt in my mind you're going to make it.
30:24But as an investment at half a million, I just can't do it.
30:28Because I don't see the return, not the return on Sophie.
30:32I'm sorry, I'm out.
30:36You know, you said something that most people don't realize.
30:41The only people in history who's ever changed the world are the people who never have accepted somebody saying that's the way it's always been done.
30:53That is probably one of the most dangerous statements in the world that anybody says to have you accept the way it's always been done.
31:01And as long as you keep doing that, I believe you're going to be okay.
31:04This is not an investment for me.
31:06I'm out.
31:07Thank you, Sophie.
31:09Thank you, Sophie.
31:10It's got it in you, Sophie.
31:11Well done.
31:16I have never failed betting on myself.
31:19So we're going to continue, and I'm going to continue betting on my culture, betting on my weavers.
31:23We are going to take over the world one happy basket at a time.
31:38Next up is a better version of an often neglected household item.
31:52Hi, Sharks.
31:53My name is Winston Mock, and I'm the founder of Woosh.
31:55I'm seeking $500,000 for 10% in my company.
31:59Sharks, when was the last time you changed your Holmes air filter?
32:03If you're like most people, it's been a while since you thought about your filter, and there's a good chance it looks like this.
32:12Ew.
32:13Isn't that absolutely disgusting?
32:15As filters get dirty, they stop working.
32:19And what this doesn't catch, you and your loved ones are breathing in.
32:25This includes pollen, pet dander, mold, smoke, bacteria, and...
32:30Ew.
32:31Ew.
32:32Even COVID.
32:34And that's why I created...
32:36Woosh!
32:37A better air filter that's smart enough to know when it needs to be changed.
32:44Let me show you how it works.
32:46The smart air filter is made of two parts.
32:49A filter and a reusable frame.
32:52The filter is made from the highest quality materials and is placed inside the frame.
32:57The filter connects to Wi-Fi and has integrated sensors that track the performance of your filter.
33:04So, when it's time to change, we send a notification and a filter replacement in the mail.
33:11With Woosh, it's easier to use, smart, and produces less waste than traditional cardboard filters.
33:18So, sharks, who's with me to Woosh for smarter, cleaner air?
33:26There's no intelligence to this.
33:28No, there's smarts in it.
33:29There's electronics built in.
33:31We have integrated sensors that connect to Wi-Fi.
33:34It actually checks to see...
33:35It looks at the air flow.
33:37And we actually measure the performance of your filter accurately,
33:40so we can see when it's time to be changed.
33:42So, you've designed a better mousetrap.
33:44Yes.
33:45And what made you come up with this idea?
33:46Why a filter?
33:47So, it was the wildfires in California that, in 2019, my partner, she came to me and said,
33:54oh, you know, we've got to be worried.
33:56Like, should we get a purifier?
33:57Should we get some stuff?
33:58And I said, oh, yeah, for sure.
34:00I'm kind of frugal, so I really wanted to make one.
34:02So, I went on YouTube and learned how to make one from a box fan and a filter.
34:06And when I got the filter, when I ordered the filter, it was 25 bucks to ship.
34:10And it's a high-quality filter.
34:12But I was sitting there going, man, you know, why is this so expensive?
34:14So, half of that cost is actually shipping.
34:16So, I thought to myself, wouldn't it be cool if, like, I could change this and ship it for a lot less?
34:20So, are you a tech guy, a software guy?
34:23What's your background pre?
34:24Pre this, I grew up in Canada.
34:26Go Canada!
34:27And so, I took the opportunity to move to the U.S.
34:31I joined Google as a product manager.
34:34Have you left Google?
34:35I have left Google.
34:36Wow.
34:37Are you doing this full-time?
34:38I've been doing this full-time for over a year now.
34:40Let's go in a different direction for a second.
34:42$500,000 for 10% imputes a 5 million valuation.
34:46Yes.
34:47I think the product has merit.
34:48Please tell me you have sales.
34:50So, we are pre-revenue.
34:51Oh!
34:52But let me, let me come, let me see if I can save myself here.
34:56We raised $62,000 two months ago.
34:58And what's most important is, last month we signed our first partnership with Emerson, the Sensi Smart Thermostat.
35:04This is a Fortune 200, 130-year-old HVAC giant.
35:08Huge.
35:09And they're huge.
35:10And so, I'll tell you what they see.
35:11What's the partnership?
35:12How does it work?
35:13Partnership is they want to bundle our product with their smart thermostat.
35:15Oh, now that's interesting.
35:17What's your unique selling proposition on this?
35:19You ultimately know exactly when you need to change your air filter.
35:22What's really important is, we have an add-on for the growing number of homes that are moving towards smart thermostats.
35:29We have an integration that transforms your entire, your home's HVAC, or the heating and cooling unit, into a smart air purifier.
35:36How does it do that?
35:37What we do is, we have a air quality monitor that's paired with our filter.
35:43It sends a signal to your smart thermostat to say, hey, air quality is poor.
35:47And what happens is, the monitor goes red.
35:50It then sends a signal to your smart thermostat and says, circulate the air.
35:54Clever.
35:55What do you sell this to somebody online for right now, if they wanted to buy it?
35:58Right now, we sell this frame and the filter for $99.
36:03What does the filter itself cost after I paid the 100?
36:06$20.
36:07And then what does it cost you to make the $20 filter?
36:10Our costs, we have a 33% margin and it's shipped. So it shows up at your door.
36:15I'm going to guess that there's some very large filter players that already dominate this market, because the industrial market's been around for decades.
36:22Right.
36:23Now, what stops them from just doing the same thing to the existing multi-billion dollar business they have and crushing you like the filter roach you are?
36:33I know, I must look like a filter roach, but I'll tell you something. This is a great question.
36:37Do you have patents?
36:38We have patents. They're patent pending.
36:40The biggest filter manufacturers, I would say, have reached out. They've deemed us non-competitive and they are now willing to give us their brand, technology and manufacturing to make our filters.
36:50So is that a licensing deal you're going to do with them?
36:53And this is licensing, licensing, licensing.
36:54You've come to the right place.
36:55Grasshopper will learn. From roach to grasshopper I become a lord.
36:59Oh my God.
37:00Listen, Winston, I've heard enough. I'm going to make you an offer. You're my favorite filter roach. There's no question about it.
37:05I'll give you the $500,000. I want 12 and a half percent, but wait, there's more. I want 50 cents royalty on every filter.
37:15When does the royalty end?
37:17Never.
37:18Oh.
37:19Well, maybe when you and I are both dead.
37:22But wait, there's more.
37:23Maybe not.
37:24But wait, there's more. Thank you for the offer. I think what's really important is right now we're a start-up. We're growing.
37:34So, Winston, there isn't enough in the value proposition for me, and I'll tell you why.
37:40Tell me why.
37:41It's really easy to change a filter. People aren't doing it, and I'm not sure this is going to compel them to do it.
37:47Let me see if I can rope you in with the...
37:49Well, I think you've got an offer here from Mr. O'Leary, so I'm not your guy for this one.
37:54Yeah.
37:55Wish you all the best. Woosh away. I'm out.
37:57That's it.
37:58I don't really believe that I can add any value to you, because I think you're off on a good start with a good product, so I'm out.
38:05All right.
38:06Winston, I think you're amazing and incredibly brilliant. Unfortunately, I haven't heard enough for me to gauge what's going to happen with your patents.
38:15Because I have some doubts, I'm not going to invest. I'm sorry. I'm out.
38:22I like the product like you. I like the goal. I like the mission, right? The problem is this is hard to sell.
38:28You're going to have to spend a boatload of money on marketing. Even if you partner with the big companies, even if they use all their outlets, it's still going to be a hard sale.
38:36And so for those reasons, I'm out.
38:40Kevin, let me ask you something. With all of us out for various reasons, where are you finding the value in this?
38:46Winston is a dual patent guy with sneakers on here.
38:51That's all you need to know.
38:52That's basically it. You have a really tough negotiation ahead with these behemoths. You remind me of Benji Lock.
38:59We had to get two lock companies competing with each other. My team worked on it for over a year. It was a tremendous amount of work.
39:05Now, unfortunately, I'm not doing it for 12 and a half. I want 15%.
39:11I feel a little insulted that you just let me sit there listening to all these sharks squawking. And I want 50 cents in perpetuity on each filter.
39:20There is Kevin with another blood-sucking offer.
39:25The perpetuity is obviously a challenge. I love that word.
39:28That's eating cash flow.
39:30It's a big risk. Either I'm going to make a lot of money or I'm going to lose $500,000.
39:34Winston, this is your moment. I made you an offer. What do you want to do?
39:38Is there...
39:40No.
39:41Four sharks are out. Kevin has made an offer of $500,000 for a 15% stake plus a royalty of 50 cents in perpetuity for Winston's smart air filter company, Woosh.
40:05But Winston is having trouble with the royalty.
40:08I swear to you, if you don't take this deal, I won't even remember what Woosh is.
40:1250 cents on every filter for perpetuity.
40:21It's insane.
40:22You don't have to do it, Winston.
40:23It's insane and you know it.
40:24You do not have to do it.
40:25It's insane and you know it.
40:26If, Mark, if you believe...
40:27Winston, you encounter all you want.
40:28I mean, Winston, stop and take a moment.
40:29You do not believe, Mark.
40:30I...
40:31Yeah, I believe that's the fastest way to go out of business.
40:33It's not going to go out of business because Mr. Wonderful is helping the business grow.
40:37Exactly.
40:38The perpetuity just locks me out and I think in the long term.
40:43You're exactly right.
40:44You know what's going to happen?
40:46In 36 months, we're going to be sitting together just like we were.
40:50You'll be broke.
40:51You can make a counter.
40:52Can we work with the equity so you have a stake in the company?
40:56No, because look, it's so binary.
40:57It's such a small piece of the company.
40:59My counter would be...
41:04Now, I'll bring up the word perpetuity again.
41:07Instead of perpetuity, lock me in for the royalty for three years.
41:13What happens if it takes us three years to negotiate a deal?
41:17You're getting it for that entire time where we're going to exit for a line.
41:20We have no sales, Winston.
41:21We've got you and the sneakers and the two patents.
41:24The behemoth player is going to buy me out.
41:27They're not going to let me keep the 50 cents.
41:29It's the only deal I'm going to do.
41:31It's time for you to make a decision.
41:33I'll do the royalty.
41:36But I'd be taking a down route on the equity.
41:39Can you hold me at my ask for the equity?
41:42I'll sign up with you on the royalty for perpetuity.
41:44So what's your proposal?
41:46With the perpetuity.
41:48The 500k, 10%, and you get 50 cents.
41:51So if I stay at 10% on the equity?
41:53Yes.
41:54You'll do the 50 cent perpetuity?
41:55Yes.
42:01Done.
42:02Yes.
42:03Wow.
42:05Great deal.
42:06Looking forward to working with you.
42:07It's going to be fantastic.
42:08Thank you very much.
42:09Let's have some fun.
42:10Congrats, Wednesday.
42:11Good luck.
42:12You guys, this has been a drink from true.
42:13Good luck.
42:15Wow.
42:17What a day.
42:18I feel amazing, and I'm so happy.
42:20Mr. Wonderful called me the filter roach,
42:22but now I'm the filter grasshopper,
42:24and now I'm going to learn from the master.