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00:00Tonight, venture capitalist and limited partner of the Atlanta Falcons, Rashaun Williams, joins the tank.
00:06I'll give you money, I'll give you access, you guys are a rocket ship.
00:10Once they touch this product, they're sold.
00:12What are your sales? 2.1 million dollars.
00:14Wow.
00:15I love how badass you are.
00:16No, sir!
00:17I like these guys.
00:18You're gonna need more money.
00:19It's not a bad offer.
00:20Go get him, Rashaun.
00:21It's your lucky day.
00:23Oh!
00:25Oh!
00:26Did you really throw that?
00:28You guys have insurance for that?
00:30I'm out.
00:40Whoa!
00:43First into the tank is a tool that brings kids' imaginations to the next level.
00:53Hey, Sharks, I'm Kousey.
00:55And I'm Max.
00:56We're from Philadelphia, and we're looking for $250,000 for 5% of our company.
01:02Now, Sharks, we all know that a child's creativity knows no bounds.
01:06I mean, look, I'm a cardboard knight!
01:09Luckily, I'm a cardboard astronaut with a jet pack.
01:13And that stack of sturdy cardboard boxes from all the stuff that we've bought online is perfect to be upcycled for kids' art projects.
01:20But when it comes to working with cardboard, the tools for kids just don't cut it.
01:26Scissors?
01:27We love you, but stick to paper.
01:30A box cutter?
01:31Not till you're older.
01:34Much older.
01:35Much older.
01:36That's why we created the Chomp Saw.
01:39The KidSafe power tool for cutting cardboard and building 3D models with ease.
01:43Because what kid wouldn't want to use a power tool like this to make awesome stuff like this?
01:49Now, the Chomp Saw works like a really fast hole punch, which intercepts cardboard and chomps it off bit by bit.
01:56So, Sharks, who's ready to help inventors of all ages unleash their creative potential and cut a deal with the Chomp Saw?
02:05Wow.
02:06How clever.
02:07That's pretty cool.
02:07I love it.
02:08Yeah.
02:08So, each of you, Sharks, you have a sample in front of you of our Chomp Saw, and we'd love for each of you to try cutting out.
02:15So, when a kid inevitably touches it, what happens?
02:17Let me show you.
02:19If I try shoving my finger, even if you take the cardboard out.
02:21Nothing.
02:22Yeah, nothing.
02:23Cool.
02:23So, my suggestion, while you're cutting, try and follow the black lines.
02:28You look like you know what you're doing.
02:30I do not.
02:31No.
02:32What is happening here?
02:34Now, why isn't it going curving when I turn it?
02:37So, just like a band saw, if you push like this, you have to twist the cardboard, and now you can get nice curves like that.
02:45Ah, okay, okay.
02:47Hey, did you say this was for 44-year-olds?
02:50Yes.
02:50It's for kids of all ages.
02:52Kids of all ages.
02:53Voila.
02:54Oh, yeah.
02:55Beautiful.
02:55A little rough.
02:56The kids love it a lot, but every time a parent gets their hands on it, they can't get enough.
03:00Yeah.
03:01Fun to jizzle.
03:03Let's go.
03:04All right, yeah.
03:05All right.
03:06All right, yeah.
03:07Wow.
03:08What's super great is you're taking the cardboard box.
03:13Yes.
03:13And then creating everything.
03:15You know, anything from a sword to a fish to a castle to whatever.
03:20So...
03:20Could you send instructions on these different projects?
03:23Absolutely.
03:23So it comes with just a simple user manual which explains to you how to get started, but our website is chock full of special instructions.
03:31We are also in the process of developing a monthly subscription for cardboard projects.
03:36Every month, kids will just receive any little materials that they need to complete the project, and they'll follow different themes that teach different STEM concepts.
03:45I love how you're staying in character, too.
03:49Fun to hold.
03:50What is the age group that this is intended to?
03:52Our target market is 8+, and that's mainly due to the compliance requirements for products for kids.
03:58Younger than 8, I'm not going to say you can't operate it, but we highly would recommend parental supervision while you do that.
04:05I do have a son who is 3.
04:07He's our number one marketing star.
04:10He has blown us up on social media.
04:12Videos of him operating this tool himself.
04:15You know what I love about this?
04:17Everything today is about tablets and computers and phones, and this takes you back to the basics of being able to work with your hands and be creative.
04:26And people are going back to that.
04:28Like, the youth want tactile things and experiences.
04:31And you have the supply because of the boxes.
04:33Exactly.
04:34Yeah.
04:34So, 250,000, 5%, a piece of $5 million valuation.
04:38Yes.
04:39Now that we understand exactly what the product does, and by the way, I would say I made the best shark.
04:44So...
04:44That's a really good exercise.
04:46Thank you very much.
04:47Thank you, everybody.
04:48But let's talk about sales because you better have some.
04:51Yeah.
04:51So, we launched less than a year ago for pre-orders only.
04:55We haven't delivered our product yet.
04:57And in the less than a year since we've launched, we've sold $2.1 million.
05:02Wow.
05:02Is that a Kickstarter or...?
05:04We originally launched on Kickstarter.
05:06We raised close to $1.2 million last October.
05:11And since then, we've raised an additional almost $1 million.
05:15And you haven't delivered a unit yet, right?
05:17We haven't delivered any units yet.
05:19And how many do you owe?
05:20We sold close to 10,000 units so far.
05:24And what price have you put on them?
05:26They cost $230.
05:28Wow.
05:28It's expensive.
05:29And how close are you to delivering?
05:31Yeah, we'll be shipping them out in about a month.
05:32I'm actually returning our factories in China.
05:35I will be back there next weekend to oversee the last production test run of 1,000 units.
05:40So, your whole company, Rye, is on the line when you go back to China?
05:44Pretty much.
05:45What do they cost you to make?
05:46It costs us $73.81 to make.
05:49So, you're only going to be selling these direct-to-consumer.
05:51Right now, we only sell direct-to-consumer.
05:54But once we have inventory, we really want to start to explore.
05:58March is not enough to put retail in the middle of this.
06:01Kelsey, how did you come up with the idea?
06:04Yeah, so I came up with the idea...
06:06Max and I actually both met doing our master's program of product design at the University of Pennsylvania.
06:12Cool.
06:13And so, I came up with the idea during a class for that program.
06:16And the goal was teaching kids design thinking skills.
06:20And we use cardboard so often.
06:22We got to the prototyping stage.
06:24I realized that working with cardboard is really difficult for kids as much as they love it.
06:29And have you guys raised money before?
06:30We've raised a total of $5,000 in safe agreements from family members.
06:36What valuation?
06:37It doesn't matter.
06:38It's $5,000.
06:39I'm just interested if you told them it was worth something at the time.
06:42God, I hate safes.
06:43Why do you hate safes?
06:44Because it's terrible for investors.
06:46For the investors, there's no protection.
06:46I'm just an IOU.
06:47Hey, I promise to give you equity at some point in the future.
06:52Maybe.
06:52With no cap, no interest rate, no discount.
06:54I mean, it's just ridiculous.
06:55A safe note is just a piece of paper that means nothing.
06:58It's not debt like a convertible notice.
07:00Sorry, we're going on a tangent.
07:01No, we appreciate that.
07:03But I just don't like how mainstream it is.
07:04I don't know why everyone's doing it.
07:06All right, look, I'll take a flyer on it.
07:08There's a bunch of question marks, particularly around production,
07:10and we don't have any reviews on the final product shipped.
07:13Yeah.
07:13So I got to reflect that in my offer.
07:14I'll give you $250,000 for 20%.
07:16What's your lead time?
07:20Right now, starting with nothing, it's about 17 weeks.
07:24Okay, so that's your biggest challenge, right?
07:25It is our biggest challenge.
07:26Because you have uncertainty about your demand.
07:28Exactly.
07:28You have uncertainty about the different platforms where you can sell,
07:30and you have 12 to 17 weeks to turn it around.
07:33You can't just like boom, boom, boom if we got an order from retail.
07:37They need a lot of work.
07:38Look, I think you guys are great founders to back.
07:41It's just too early for me, so I'm out.
07:43Understood.
07:45We appreciate it.
07:45My accolades to you, Kelsey, in particular, you're rock solid.
07:48I'm going to make an offer of $250,000 for 20%.
07:51That's my offer.
07:53Same offer.
07:54We just have to decide who you want to work with.
07:55It's early with me, but with complete belief, because I know people like you always bring it in.
08:01I don't know how it's going to work, but I think it has to get to retail, too.
08:04Got two offers.
08:05Yes, we do.
08:06You know what?
08:08I'm going to make you an offer.
08:21One shark is out.
08:23Barbara and Kevin have each offered $250,000 for 20% of Kelsey and Max's cardboard saw for kids, Chop Shop.
08:29But Mark may also be interested.
08:31You know what?
08:32I'm going to make you an offer.
08:35You have risk, obviously, in manufacturing.
08:38But you guys are product designers, physical product designers, so you know that whole process.
08:41You'll figure that out.
08:42Your next biggest challenge is pricing.
08:44You have good margins, but you don't quite know how much you're going to sell.
08:48But more importantly, you don't know what's involved on the marketing side to get the sales that you want, right?
08:53And so I think you're going to have an opportunity to raise your prices, so I think you're going to have a ton of margin.
08:58And I think if you do this right, it is the hot product of Christmas.
09:02And I know in your mind you're already thinking that way, right?
09:04Yeah.
09:05But you've got to get it in front of the right people, and I think that's where I can help.
09:09So what's your offer?
09:10Okay, so you guys asked for 20%, right?
09:12And that's probably too much, so I'll ask for 15%.
09:15So I'll give you the $250,000 for 15%.
09:17Say yes or no now, and we have a deal.
09:22$250,000 for 15%?
09:23Yeah, this is more than you wanted to give, I know.
09:26But, right, 85% of a watermelon is a whole lot better, right?
09:32If you would take the 15%, I would go in with Mark.
09:35Really?
09:3615% split between the two of you?
09:38Yep.
09:39Because I think you have a lot more coming.
09:42I heard you.
09:43I listened to you.
09:44I love how badass you are.
09:46$250,000.
09:47Mark and I for 15%.
09:49That's an amazing offer.
09:53Don't get caught up in a couple percentage points, right?
09:56I know when you walk in the door, everybody's got that number, right?
09:59But I'm just telling you, between the two of us, the ability to scale and do it quickly
10:03and have questions answered for everything, and because we've both been there, we'll save
10:08you that delta.
10:09So what do you guys think?
10:10I think, Mark and Lori, you have a deal.
10:13Oh!
10:13Thank you so much.
10:16Let's cut this up.
10:18Thank you so much.
10:19Superstars, for sure.
10:22Thank you so much.
10:23You're a little child.
10:24This is so cool.
10:25I'm so happy about this.
10:26Thank you for your day.
10:27Don't leave me hanging.
10:28Thank you so much.
10:30See you guys.
10:31Congrats, guys.
10:31Thank you so much.
10:33Would you bring those boxes with you, please?
10:40Mark and Lori are the perfect sharks for Chomp Shop.
10:43They reflect our energy.
10:45They are going to make this product the hottest item of Christmas.
10:47They're going to make it the hottest item of summer, the school.
10:49They're going to grow us.
10:51We're going to come up with new ideas.
10:53They're going to support us.
10:53We can't wait.
10:57In Season 10, we watched Dan Tran make a deal with Robert Herjavec for his comfortable
11:02apparel company, Buttercloth.
11:04Oh, it feels so nice.
11:05Very soft.
11:06Let's see what he's up to now.
11:09When I pitched to the short, the company have less than $500,000 in sale.
11:15It's been six years, and the business is making over $58 million in sale.
11:22Now, Buttercloth is available in brick-and-mortar stores around the country.
11:27Just to be ahead of competition, I knew that I have to come up with innovation rather than
11:33just a comfortable shirt.
11:35So I invented brand-new patented fabric called Icycon.
11:40It's infused with mint into the cotton, filled the core to the touch.
11:47We also introduced First Women Collection.
11:50We have 35 full-time employees, and now we're shipping inventory our 7,000-square-foot warehouse
11:58in California.
11:59Today, Dan and I are at arguably the most famous garage in the world to film a Buttercloth
12:06commercial.
12:07Now, what do we argue?
12:08You're the only one that's arguing.
12:10Everybody else goes, oh, it's the most famous.
12:11Well, arguably.
12:13Listen, I gave Jay some Buttercloth shirts some time ago, and he fell in love with him.
12:17Today, it's your official driving shirt.
12:19It is my official driving shirt.
12:21You know me.
12:22I'm not a guy with an iron.
12:23I just put on a shirt, and this was wrinkled up on a ball 10 minutes ago, and I put it on.
12:27It looks great.
12:27You look fabulous.
12:29Yeah.
12:29You look adequate, arguably.
12:31Dan is all in on Buttercloth.
12:33He sold his house, cashed in his 401k, and here we are a few years later, success, just
12:39bought a house overlooking the Pacific Ocean.
12:42It's an incredible story.
12:43My biggest takeaway from this whole investment is you've got to have somebody who is fully
13:05committed.
13:06Dan is the classic immigrant entrepreneur, all in to pursue his dream.
13:11The guy is constantly coming up with new products, new ways to market it, new technologies.
13:17Dan is a grinder, thrilled to be along for the ride.
13:20My advice for entrepreneurs, if you have a gift and big dream, just don't let anything
13:27hold you back and go for it.
13:29Next up is a product designed to help you get a grip on athletic performance.
13:49Hello, Sharks.
13:57My name is Greg.
13:58And I'm James.
13:59We are seeking a strategic partner and also $400,000 for 4% equity in our company.
14:05Hello.
14:05James, what do all athletes need to perform at their peak?
14:09Three things, Greg.
14:10They need focus, training, and grip.
14:13Oh!
14:13Did you really throw that?
14:19You guys have insurance for that?
14:22Gee.
14:22Um, okay.
14:24Oh, my God.
14:26Grip is something we all take for granted.
14:29It's like breathing.
14:30But what if we told you there was a revolutionary material that could alter performance outcomes
14:36in virtually any sport?
14:37Introducing Choclis, a grip enhancement technology used to absorb oil on the skin and it's used
14:45for athletes, the military, and everyday uses that, once applied, absorbs oil in the skin
14:51that creates the slip in grip.
14:53Our grip solution is made from a unique but well-tested material that's non-toxic, environmentally
14:58friendly.
14:59It's low-mess, works even after being underwater, and is the first significant innovation in
15:04grip technology in nearly 70 years.
15:06We want a shark to come up and try it with us.
15:09Rashawn.
15:09No.
15:10How about you come up and try Choclis?
15:12Go get him, Rashawn.
15:13Here, let's give you a try on the torque test.
15:14We'll see how you do.
15:15So here, step right over here, please.
15:16Okay.
15:17All right.
15:18What I'm going to ask you to do when I say start is you're going to grab that metal bar
15:21and you're going to rotate it backwards as hard as you can.
15:24Okay.
15:24So our patent-pending piece of equipment actually measures the amount of torque you're able to
15:28generate before your grip starts to slip.
15:30You got it.
15:30So let me push the start button.
15:32All right.
15:33All right.
15:33Go ahead.
15:34Give it a twist backwards.
15:36Oh, excellent.
15:37All right.
15:39So that right there, you maxed out about 14 foot pounds.
15:42You ever seen anything like that?
15:43Best one I've ever seen.
15:44Absolutely.
15:45So what we're going to do is we're going to put a single dose of chocolates on your hand.
15:48It's about a half a teaspoon.
15:50So we just sprinkle this.
15:50Like seasoning salt.
15:51You can barely see it.
15:52You can barely see it.
15:52Oh, wow.
15:53You just sprinkle it on that.
15:53Put your hand on top and grind them together.
15:56And what you're doing, you're stripping away all the oil in your skin that makes it slippery
15:59between the cracks.
16:00Once you're done, you clap away any residual material.
16:04And we're going to do it again.
16:06I mean, it's so light.
16:07Like, you can barely feel anything.
16:08Let's see what happens.
16:10Oh, my God.
16:11Yeah, you tipped over the machine.
16:14Wow.
16:14Nice job.
16:15All right.
16:16So we'll see here.
16:16So that right there, even with the machine tipping, which was your peaks, you actually
16:19lost some of it there.
16:20You were still a 60% improvement in the overall torque you were able to generate once you got
16:24rid of that slippery component to your grip.
16:25Honestly, it didn't move at all.
16:27Like, it almost feels like chalk, but more permanent, almost.
16:33It's actually nothing like chalk, to be technically correct.
16:36That's why they call it...
16:37Yeah, which is why it's chockless.
16:38Chockless, right?
16:39Compared to chalk, what's, like, the main difference?
16:42So the main difference here is we're a subtractive material, so we're actually trying to remove
16:45something.
16:45It's the oil on your skin that causes the problem.
16:48Let's talk sales.
16:49So sales for this year thus far have been 740,000.
16:53Wow.
16:54So here's the thing.
16:55Grip, no one really thought about it, right?
16:57So if no one's thinking about their grip, there's a huge marketplace for us in the grip
17:01space.
17:01But that's not true.
17:02Athletes deal with it.
17:03Gymnasts deal with it.
17:04That's right.
17:04Weightlifters deal with it.
17:05That's right.
17:05So that's not nobody.
17:06No, what I mean by nobody is the masses.
17:08I mean, LeBron James, you know...
17:10LeBron James would benefit from our products so much you cannot imagine.
17:14Then we don't want him to have it.
17:15Is this illegal in the NBA?
17:20No.
17:20Our biggest market, golf, racket sports, and fitness.
17:24And fitness is just huge for us right now.
17:26Yeah.
17:26And how much are you selling them for?
17:27So this bottle right here is $35.99.
17:29It's about 100 doses.
17:31And then the smaller one on display up here is $24.99.
17:33And how much does it cost you to make it?
17:36We prefer to have that discussion offline.
17:39You're in the Shark Tank.
17:41How are we going to make a determination?
17:42And we have, respectfully, we have a supply chain.
17:45We make 67% margin on our product.
17:49So you don't want us to work backwards, right?
17:50If you say you have 67% blended margins, then they know.
17:53So the fact that you gave us your blended margins would tell us your cost just annoyed the out of me.
17:59So I'm out.
18:02Appreciate your honesty.
18:03How do you really feel about it, Mark?
18:04Yeah.
18:05Well, is there anything proprietary about it?
18:08Oh, yes.
18:08There is.
18:08So we actually have two patents issued and two more pending.
18:11For what?
18:12So for the material itself and the use of grip, for the packaging and dispensing of the material,
18:18and then also its use on different implements, such as balls.
18:21Are you engineers?
18:22What did you used to do?
18:23I'm a corrosion engineer by training.
18:25I'm involved with every major architectural firm in the country that gets involved with paints or coatings for high-rise structures,
18:32for nuclear power plants, for nuclear submarines.
18:36And what about you?
18:37So my full-time job is entirely chocolist.
18:38My background was chemical engineering.
18:40How did you get your customers to come to you in the first place?
18:44That's our biggest problem, okay?
18:46If someone asks us, what's your biggest challenge?
18:48That's why you're here, right?
18:49That's why we're here.
18:50Very much so.
18:50It's primarily for a strategic partnership to make our product, people know that we exist.
18:55Once they touch this product, they're sold.
18:58Hey, guys, I agree with you.
19:00I was actually just getting ready to say that.
19:02I'm a financial investor.
19:03I look to add accelerant to stuff that's growing really fast.
19:07I do think it's a good fit for someone, but unfortunately not for me, so I'm out.
19:11All right.
19:12James and Greg, I can't even think of one thing I could do for you.
19:16I'm out.
19:17Thank you, Barbara.
19:18Yeah.
19:19I have to get excited about what I invest in.
19:21Sure.
19:22And it's really not in my wheelhouse, this kind of thing.
19:25It's a great product for you guys.
19:26It's just not right for me, so I'm sorry.
19:28I'm out.
19:30The only way I can do this deal is with a royalty, because the valuation is nuts.
19:34It's $10 million.
19:35It's crazy.
19:37So I give you the $400,000.
19:39I want $2.50 a unit.
19:41And I'll take that until I make back $4 million in revenue.
19:46Then it drops down to nothing, $0.25 in perpetuity.
19:49And I get the 4%.
19:50And then I turn on my entire social media team to try and get your CAC down, your ROAS up,
19:57because I'm completely incentivized to sell as much as I can, as fast as I can.
20:04It's not a bad offer.
20:05No.
20:06It's not a bad offer.
20:07No.
20:07It's not a bad offer.
20:07That's why they call me Mr. Wonderful.
20:10It's the only offer it sounds like you're going to get here.
20:14All right.
20:15I don't think we should do it.
20:17They're not going to do it.
20:18There's just no way.
20:18They're going to do it.
20:19Kevin, that's such a good deal.
20:21If you want me to come in with you to take your bases down, I'm just telling you I would
20:24take $100 or $200 of that if you want it.
20:27You want to do $200 of it?
20:28Sure.
20:28Same terms.
20:29I'm not changing my terms.
20:30The terms you just outlined, I would do that deal.
20:32So, yeah, we'll split it 50-50.
20:34I can get this in the hands, as he can, with a bunch of athletes, and we can figure that
20:38part of it out.
20:39Just before you say anything, Rashawn wants to come into the deal with me, so you're going
20:44to get two sharks.
20:45It's your lucky day.
20:46Oh.
20:47$200,000 each.
20:48Terms stay the same.
20:49And I can get this in the hands of 20 to 30 athletes, as I'm sure most of us here can,
20:54like, easily.
20:55Rashawn can get a lot of these guys, which I really like.
20:57That's why I want him as my partner.
20:58And do you think they'll actually talk about it?
21:00Will they be willing to state that they're using the product?
21:02I think if we opened another round in the future and we gave them the opportunity to
21:06invest and be equity investors as opposed to brand ambassadors, yes.
21:10That's a good point.
21:10Yep.
21:11You can't afford to have them as marketing guys because they're too expensive.
21:15But they love talking about what they own.
21:16That's your best bet.
21:16So, it's two sharks.
21:18That's very smart.
21:18I go crazy on social.
21:19He does his connections in professional athletes.
21:23I think it's the best offer you're going to get here today.
21:25And, by the way, zero flexibility.
21:30What do you think of the offer?
21:33I think we'll take it.
21:34Yay!
21:34All right.
21:35You're a wise man.
21:36Good job.
21:36You're a wise man.
21:38You're a smart guy.
21:39That's a great deal.
21:40Hey, listen.
21:40Hey.
21:41Thanks, man.
21:41I think it's a great idea.
21:42Look at that grip.
21:43I know.
21:43She's so sorry.
21:44She can't even let go.
21:46I'm excited about this.
21:47I think we can really help you guys out.
21:48Really appreciate it.
21:49We've got to get this in as many people's hands as possible.
21:51Oh, that's-
21:51That's our-
21:52Send these small packages to 100 athletes.
21:54Let them come begging us.
21:55Talk right after.
21:55Thank you all, guys.
21:56Thank you, guys.
21:56It was nice to meet you all.
21:57Good luck, guys.
21:58Congratulations, guys.
21:59You did it.
22:00Dude, you got it.
22:01I don't even-
22:02I'm speechless, I would say, to a certain extent.
22:04It was more than we ever anticipated, being able to get two people involved.
22:09It's like a dream come true.
22:10It was.
22:11Next up is a business with a mission to turn kids' screen obsession into something productive.
22:36Hi, Sharks.
22:37My name is Kai.
22:37I'm Kasdan.
22:38And I'm Jackie.
22:39We are all high school best friends from Katy, Texas, and we are here seeking $350,000
22:44in exchange for 5% equity of our company, Creator Camp.
22:48Sharks, has this ever happened to you?
22:50You're going to a nice restaurant.
22:52You get set down at a beautiful window booth.
22:55Wow.
22:55Just as you're about to enjoy your meal, you hear it before you see it.
23:00The Tablet Kid.
23:02Sharks, did you know that children ages 8 to 12 spend an average of eight hours a day on
23:06screens?
23:07Wow.
23:07Yes.
23:07And that time is mostly spent gaming, watching mindless videos, and of course...
23:12Doom scrolling.
23:13Now, Sharks, we all got one of these, and they're not going away any time soon.
23:18So how do we ensure our children have a positive relationship with technology?
23:22By teaching them how to use their devices as a tool to create.
23:25And that's why we created Creator Camp, an ed tech summer program that teaches kids content
23:31creation, filmmaking, animation, music production, and game design, all using their tablets.
23:37The most popular career choice among kids today is no longer being an astronaut, and it's
23:41not being a doctor or even a basketball team owner either.
23:43No, sir, it's being a content creator.
23:47So we teach them what they want to learn, and they're having so much fun, they don't even
23:51realize they're learning real technical skills within the creative process with courses that
23:56include video editing, audio engineering, and even online safety.
24:00But more than anything, Sharks, what we're really here to do is endorse and encourage creativity
24:04and collaboration, two things that are more important than ever in today's digital world of AI.
24:09Sharks, who wants to educate and inspire the next generation of creators?
24:15Wow.
24:16Good job, guys.
24:17Excellent.
24:17This is so needed, guys.
24:19I'm so excited.
24:20How long have you guys been at this?
24:21About four years now.
24:23And what are your sales?
24:24So our first year of operations, we had one location.
24:26We taught ourselves.
24:28That year, we brought in about $60,000 in revenue.
24:30Year two, we kind of grew the team.
24:32We brought in $100,000 in revenue.
24:34Year three, things started to really snowball from there.
24:36We expanded to multiple locations.
24:38We had a full team of staff.
24:39We brought in $300,000 in revenue.
24:41And now this summer, year to date, we've brought in $840,000 in revenue.
24:45Wow.
24:45Nice to meet you guys, man.
24:47Great job.
24:47Thank you so much.
24:48Is the camp a physical location where they learn?
24:51Yes, all of our camps are in person.
24:52So how many camps do you have?
24:54Right now, we have 27 locations across Texas.
24:57We're in all the four major cities.
24:58What's the profile of setting up a location, and how many people can you churn through there?
25:03So we tend to partner with schools, churches, community centers, anywhere that pretty much
25:07has a classroom we can utilize, as well as Wi-Fi.
25:10By kind of partnering with locations, we also get to directly advertise to their student bodies,
25:15as well as even hire some of their teachers occasionally as well for, like, a summer gig.
25:18We'll have three to four camps running at a time, and those camps max out at 20 kids.
25:23So we'll have a total of, like, 60 kids at one location, and that's only for two to three days.
25:27How much per kid?
25:28What do you charge?
25:29On average, for our three-day courses, it's about $250.
25:32Are you guys from the content creation space?
25:35Like, how did you come up with this idea?
25:36What's your background?
25:36So, actually, I used to be a YouTuber myself.
25:39I got to 140,000 subscribers, over 50 million channel views.
25:43But then during college, I also studied game programming.
25:46These guys, as well, Kazzen studied film.
25:49Jackie studied design and animation.
25:51So we kind of bring everything that we know into the camps,
25:54and we make sure that the kids are really getting those good, like, learning outcomes because of this.
25:58So, guys, 350,000% imputes a $7 million valuation.
26:03A little rich, I think, at this point.
26:05How did you come up with that?
26:07Yeah, I mean, our main kind of focus here now is on growing this business.
26:11I mean, next summer, we're looking to expand to a total of 35 Creator Camp locations,
26:14which that summer will bring in about $1.3 million in revenue.
26:17That being said, as much as we have been growing this business,
26:20we're still only confined to our home state of Texas.
26:23Our next city that we want to go to is Washington, D.C., actually.
26:25We were just featured by The Washington Post.
26:28We're getting a lot of interest over there.
26:29In fact, some families have traveled all the way to our camps, to Texas.
26:33Really?
26:33Just to be part of it.
26:34That's really complimentary.
26:35Oh, yeah, 100%.
26:36Now, is this your full-time job?
26:39It is currently our full-time jobs, yes.
26:41How's the split in your partnership?
26:42So, 26%, 24%, 22%.
26:46We also have one other co-founder, and then we also have one full-time hire,
26:50which is our IT guy.
26:51He's got 1%.
26:52Guys, let me clear to deck some.
26:54My foundation, Mark Human AI Boot Camp, it's free.
26:58It's around the country.
26:59We train a bunch of kids over the summer.
27:01We do a lot of generative AI stuff now, which is geared a lot towards content creation.
27:05Yeah.
27:06So, congratulations on what you've accomplished.
27:08You're profitable.
27:09You're growing.
27:09But it's a conflict for me, so for those reasons, I'm out.
27:12All good.
27:12Thank you, Mark.
27:13You're welcome.
27:14I think it's very, very clever, and I could see kids loving this.
27:20Unfortunately, I don't see it as the right investment for me.
27:23I'm out.
27:26Guys, $3.50 for this is too much.
27:28Had it been less, I might have taken a flyer on it, because you're obviously good operators.
27:32I can see executional skills here.
27:34Congratulations on the business, but I'm out.
27:36Guys, I'm a huge fan of you guys.
27:39I think you did a great pitch, a lot of energy, love the business model.
27:43Here's the thing about my world, 80% to 90% of my investments go to zero, and I'm a pretty
27:49good investor.
27:50The 10% to 20% that make it need to be large enough exits for me to cover all the losses
27:56that I incur with the other companies.
27:59That's called VC math, or venture capital math.
28:01So when I look at how you've scaled in the last three years, and then how long it would
28:06take you to get to a certain revenue and a certain profit margins, and then an exit,
28:11it doesn't fit the math for me to cover the losses.
28:14I need something that scales a little faster.
28:16Unfortunately, I cannot be an investor in this for that reason, so I'm out.
28:20Completely understood.
28:21Yeah, our goal by 2030 is to get to 250 locations.
28:25By that time, we'll be making $25 million in revenue.
28:27He'll be an old man by the time we get there.
28:29I think I can make a lot of money.
28:31You can make a lot of money if I turn into a franchise.
28:34I love your name, creative camp.
28:36I think if you turn into a franchise, what I love in concept about the whole camp...
28:41Great idea.
28:42...is it takes a problem every power in America has and gives us a solution.
28:46But the way you have it structured, there's no way you can make money unless you could charge
28:50a franchise fee, and you could train people how to do it, and you could roll it out anyplace.
28:56I mean, we've always considered franchising an option.
28:58People always... that's one of the first things they always tell us.
29:00So what are you going to do, Brian?
29:01However, it's a hell of a lot of work.
29:03I've been there a couple of times.
29:04Oh, 100%.
29:04I've built million-dollar businesses out of franchises where the people said to me,
29:08no way, but I proved them wrong.
29:10They're phenomenally wealthy now.
29:13I want to be an equal partner of the three of you.
29:16So that would imply 25%, but I know you have a few little partners in there somewhere.
29:21Yeah, we do.
29:21Yes.
29:22Yeah.
29:22So say 20%, but you have to be committed to the franchise model.
29:26Otherwise, you're never going to make money on this.
29:28Mm.
29:33Come on, I need to get an answer.
29:35You want to talk among yourself quickly?
29:36Go ahead.
29:37Yeah.
29:39That's a good... that's a good offer.
29:40Yeah.
29:42Yes, thank you so much for your offer.
29:44We'd love to meet at 15.
29:46How about 20?
29:4920?
29:50We can do 17.5.
29:52I started at 25, remember?
29:54I'm saying 20, which is less than I want.
29:56It's a compromise.
29:58Halfway.
29:59That works.
30:00Guys, three basis points.
30:01Who cares?
30:0720 for 400.
30:08Would you do 20 for 400?
30:09No.
30:10No.
30:13No.
30:14350 is the number.
30:18I like these guys.
30:21So what are you going to do, guys?
30:22You got to decide.
30:25Okay, I'll take 19% so you have your ego intact.
30:30We'll do 18.
30:30You got it.
30:35Good job, guys.
30:38I want you to love me, not hate me coming in, you know?
30:42Congratulations.
30:42Thank you so much.
30:43Maybe you'll see how rich you've become.
30:45I don't think you care so much.
30:47Congrats, guys.
30:48Well done.
30:48Good job, Barbara.
30:49Good job.
30:50It's a good idea, too.
30:51Really good.
30:52Good job.
30:52Good job, guys.
30:53Good job, guys.
30:54Yo, we actually got a few.
30:57We're incredibly excited to start franchising CreatorCamp.
31:00It's something we've always wanted to do,
31:01and it's honestly our pathway to impact thousands of kids
31:04across the country.
31:05And with Barbara now on our team,
31:06we really see that as a possibility.
31:08Next up, two entrepreneurs brewing up a sweet southern staple.
31:33Hello, Sharks.
31:34My name is Darian Craig.
31:36And I'm Brandon Echols.
31:37We're here today seeking $500,000 in exchange for 5% of our company.
31:41Hello.
31:42We're from the little town of Hayden, Alabama,
31:44and we've known each other since we were six years old.
31:46We graduated from high school together,
31:48dropped out of college together,
31:49and somehow out of all these years,
31:51we've never been in a fight.
31:53Well, there's one argument that we've never seemed to settle,
31:55and that argument is who makes the best sweet tea?
31:58I always thought my nana made the best tea.
32:01And I would argue my mom makes the best tea.
32:03So we decided to combine the two,
32:05settle that debate,
32:06and build the best tea brand in the world.
32:08And in 2021, we launched our company,
32:11Y'all Sweet Tea.
32:12When we launched Y'all Sweet Tea,
32:14I realized that other tea brands
32:15were not properly utilizing social media and influencers.
32:19So we doubled down on social media
32:21and built a team of influencers
32:22that know a thing or two about sweet tea.
32:24So, Sharks, let me introduce you
32:26to one of our top influencers,
32:28who has over one million followers,
32:31Mama Sue.
32:32Mama Sue?
32:33Everybody knows Mama Sue.
32:35Our influencers are Southern Grandmas.
32:38That's brilliant.
32:39Hey, Sharks,
32:40I may not know all those fancy dances on social media,
32:44but I've been drinking tea for 71 years.
32:47And honey,
32:48I can tell you,
32:50y'all's sweet tea is the best I've ever had.
32:53Now, the boys have put samples
32:55on each of your tables,
32:57both sweet and unsweet,
32:59as well as a flavored tea.
33:02Mark, you've got our strawberry flavored tea,
33:03and Miss Barbara,
33:05you've got our watermelon tea.
33:07Lori, we have mango for you,
33:08and Rashawn,
33:09we gave you our raspberry tea.
33:11What am I, chopped liver?
33:12I only have two teas here.
33:13No, I tried to put enough sugar in here
33:15to sweeten you up.
33:17Yes, you did.
33:18But I don't know if that's possible.
33:20So what I did...
33:21That's good.
33:21...was I'm giving you
33:23our fan favorite, Georgia peach.
33:26All right.
33:27I think it may do the trick
33:28to just sweeten you up.
33:30That's fantastic.
33:32So, Sharks,
33:34who's ready to make a sweet deal
33:35with y'all's sweet tea?
33:37It's very, very good.
33:39The watermelon is amazing.
33:40Oh, it's delicious.
33:41Thanks, Mama Sue.
33:42Thank you, Mama Sue.
33:43Thank y'all.
33:43Mama Sue.
33:44Thanks, Mama Sue.
33:47So what is it sweetened with?
33:48Like, I have en-sweet,
33:50and I have sweet,
33:51and I have mango tango.
33:53Inside each bag is 10 filter packs
33:56you can make one gallon of tea with,
33:57and you can make it
33:58however sweet you want it.
33:59You add your own sugar,
34:00is what you're saying.
34:01That's right, correct.
34:01Whatever sweetener you want.
34:02What do they cost you to make?
34:03We have about $2.67
34:05in a package of tea.
34:07We wholesale that for $4.34,
34:10and then we retail it on our website
34:11for $7.25.
34:13Are you making any money?
34:14Yeah, so we're only three years in,
34:16so, you know,
34:17the sales are...
34:19We're happy about them,
34:20but...
34:21You don't look happy.
34:22I'm real glad to say that today
34:24we've just passed $10.3 million
34:26since 2021.
34:28Yep.
34:29So I'll go back.
34:29Walk us through the years.
34:31Walk us through the years.
34:31So in 2021,
34:33we did $1.2 million.
34:35In 2022,
34:36we did $2 million.
34:38Wow.
34:38In 2023,
34:39we doubled that
34:40to $4 million.
34:42And this year,
34:43year to date,
34:43we're already at $3 million
34:45and project to do
34:46$5 million plus this year.
34:47That's amazing.
34:49What are your margins?
34:50Last year,
34:51we profited 20%,
34:52almost $800,000.
34:53Good for you.
34:55This year,
34:55we're pretty much break even.
34:57We doubled down
34:58on Facebook ads this year.
34:59We had never ran any.
35:01Everything's direct to consumer?
35:0285% of our sales
35:03comes directly to our website.
35:05Do you have any physical retailers?
35:07Yes.
35:07So we're in about
35:09600 grocery stores,
35:10mainly throughout the Southeast,
35:11but we want to go
35:13into big box stores.
35:13That's our next big plan.
35:15We've even had some discussions
35:17with Walmart
35:18a few months back.
35:19They talked to us
35:20about doing a 500-store test.
35:23Have you guys raised money?
35:24We have not.
35:25Yep.
35:25We own 100% of the company.
35:26Even better.
35:26Good for you guys.
35:27No investors,
35:28no loans.
35:28So that leads to the question.
35:29Last year,
35:30you said you did $4 million, right?
35:31Yep.
35:32And you made 20%, right?
35:33So you put $800,000
35:35pre-tax in your pocket, right?
35:37Why not continue to grow
35:39and keep on putting money
35:40in your pocket
35:40or reinvesting that
35:41as opposed to just
35:42throwing it all into advertising
35:44just to get a few more
35:44dollars in sales?
35:45What was your logic there?
35:47Sure.
35:47We just see the really
35:48big potential of the company,
35:50and we thought that
35:51putting everything
35:52back into marketing
35:53would help grow us
35:54to be a brand
35:55that is recognizable
35:56once we get into
35:56the big bucks.
35:57So which would you rather have,
35:58a brand that is recognized
36:00or be rich as ****?
36:02I think you guys
36:03were trying to double sales.
36:04You just didn't.
36:05So you made the right decision
36:06by reinvesting profits
36:07into growth.
36:07You should have gotten a return.
36:08Look, if you're getting
36:09a return on your advertising,
36:11your profits would grow
36:12as well, right?
36:13It means that you're
36:14spending money
36:14on a lot of other things.
36:16So are you paying
36:17all kinds of listing fees,
36:18et cetera, to be in there?
36:19We're not, but I do have
36:20one answer to your question
36:22is last year we launched
36:24the flavored teas.
36:25We had never done
36:25flavors before.
36:26It was just the regular tea.
36:27Our fans were saying,
36:29y'all got to do flavors.
36:29You have to do flavors.
36:30So we literally made a post
36:31and said, which flavors
36:32do you want us to do?
36:33They said, try a peach.
36:34When we launched that bag
36:35that Kevin's got,
36:36we sold 10,000 of those bags
36:38in 35 minutes on our website.
36:40Really?
36:41The first eight minutes
36:42of that was $100,000 in sales.
36:44Yep.
36:44And we truly think
36:45that could have been
36:46a million-dollar day
36:47on our website.
36:47Walmart needs you.
36:48You don't need Walmart, right?
36:50And I'm starting to agree
36:52with Cuban because
36:52when you're dropping
36:54that amount in that short period
36:56on your own site,
36:58that's rare.
36:59Do you know how few
37:00entrepreneurs can make
37:01that claim?
37:02That's beautiful.
37:03That is like beauty.
37:04Hey, guys,
37:05I'll let you figure it out.
37:07I've heard enough.
37:08I'll give you $500,000 for 10%.
37:10Wow.
37:10And I'll let you figure out
37:12if you want to go to Walmart,
37:13if you want to stay
37:14direct-to-consumer,
37:15or what balance of both.
37:16I think you guys are smart enough,
37:17charismatic enough.
37:18You don't need me to tell you
37:20how to run this business,
37:21but I'll give you money,
37:22I'll give you access,
37:23I'll give you influences
37:24if you want.
37:24Not that you need it,
37:26but I think you guys
37:27are a rocket ship,
37:28and I think if you had
37:29the right money
37:29and the right resources,
37:30you can continue to grow.
37:32That's incredible.
37:33Thank you so much for the offer.
37:34Wow.
37:34I would snap that right up.
37:36I would, too.
37:37Hey, what is your dream?
37:38What do you want to do?
37:39Our vision for the brand
37:40is to just continue growing it.
37:42We do see a vision
37:43of $10 million,
37:44$20 million in sales,
37:45and then eventually
37:46be able to have an exit.
37:47That's what Rashawn does.
37:48Right, I like to make money.
37:50He doesn't care.
37:51He just wants to see
37:51the top line grow
37:52and see an exit.
37:53Yeah.
37:53So I'll go out
37:54because I'm a cash guy.
37:55He's a sales and growth guy.
37:57I'll go out, too,
37:58to clear the road for him.
37:59Well.
37:59Well, I got to tell you,
38:03very few companies
38:05that walk in here
38:06have social media
38:07nailed like you guys have.
38:08Oh, yeah.
38:09I mean, that is very,
38:10very impressive.
38:11I know it when I see it.
38:12Yeah, I see it, too.
38:13All right, let me just
38:14tell you my value, Ed.
38:15You're going to need more money.
38:17Yes, sir.
38:17Even though you're profitable,
38:18you're going to be reinvesting
38:19out into more marketing,
38:20more influencers.
38:21You guys figured out
38:22the lifestyle part of tea.
38:24Yep.
38:24Right?
38:25But I do think
38:26there's value from other sharks.
38:28That's why I'm interested
38:28to see what they say
38:29because these guys
38:30can help you get into
38:32where you inevitably
38:33are going already
38:34into the Walmarts
38:35and the Targets
38:35or whatever.
38:36If I went in with Rashawn,
38:37I would like to work
38:38on the retail piece.
38:39You can't do Walmart
38:41without a distributor.
38:42But once you set that up,
38:43you also do the other guys,
38:46the Targets
38:46and the Costcos.
38:48Look, my deal would be
38:50give us 20% for the 500.
38:51I get 10, he gets 10.
38:52And I go nuts
38:53into retail with you.
38:55Okay.
38:55Thank you for making an offer.
38:57Okay.
38:58Well, the plot thickens
38:59over here
38:59because Lori wants
39:01to get involved
39:02and help scale
39:03this thing to the moon
39:04as well.
39:18Two sharks are out.
39:20Brandon and Darian
39:21have two offers
39:21on the table
39:22from Rashawn
39:23or Rashawn and Kevin
39:24for their sweet tea business,
39:26Y'all.
39:26But Lori may also
39:27be interested.
39:28Lori wants to help
39:29scale this thing
39:30to the moon as well.
39:31And we would split
39:32the 500K for 15%.
39:34Well, I'll tell you
39:36why I like it.
39:37I have tons of products
39:38that have done
39:39extremely well in grocery.
39:41You guys,
39:42just look at you.
39:43It's so impressive.
39:44This is fabulous packaging.
39:46It's a fabulous name.
39:47And if I were walking
39:48down the grocery aisle,
39:49I'd go to this one.
39:50And so I want to be in on it
39:52and I think we can blow it up.
39:53Like, be the name of T.
39:55No one's been disruptive
39:56in T for years.
39:58Excuse me, Lori.
39:58I've already made an offer
39:59with Rashawn
39:59unless you are throwing me
40:01under the bus.
40:01I'm down either way.
40:03I offered you 500K myself
40:05for 10%.
40:06We split it for 15.
40:08I'll go in with him
40:09for 20.
40:10So you guys really think
40:11about the value.
40:12We all bring very different things.
40:13To be competitive,
40:14I'll go to 15 with Rashawn.
40:18More than anything,
40:19thank you all for this opportunity.
40:20The offers were awesome.
40:23However, our counter would be,
40:25could we also raise
40:26some more cash
40:27to 750?
40:28So 750,000 for 15%.
40:31I'm staying at 500.
40:33I mean, I just bring
40:34too much value to it.
40:35There's only one Mr. Wonderful.
40:37I think we're kind of already
40:39at the max end
40:40of the amount of capital
40:41that I think you guys
40:42should be raising.
40:44I think if you guys
40:44take this amount
40:46and then once you knock
40:48the cover off the ball,
40:49we raise another round,
40:50we're at 2 or 3x, right?
40:52That valuation,
40:53you won't even notice
40:54the difference in the amount
40:55of basis points
40:56you're giving up right now.
40:57And if you did the math
40:58on that,
40:58you would see
40:59that it actually works
41:00out in your favor.
41:01Okay.
41:01So, 500K, 10% me,
41:0415% Lori and I,
41:06Kevin,
41:07are you 15 or 20?
41:07No, I was going
41:08to drop down to 15.
41:0915% for Kevin,
41:10but only 500K,
41:11not 750.
41:12Okay.
41:13You definitely want Rashawn.
41:14This is your moment.
41:16This is.
41:16You can decide
41:17between Lori and I
41:17and who you want to partner.
41:18Sure.
41:19Do you mind if we take
41:1910 seconds to turn around
41:20and have a discussion?
41:21Sure.
41:21Before we go.
41:25I like this.
41:27I know.
41:31All right.
41:34There is only one
41:35Mr. Wonderful
41:36and we appreciate
41:36your offer,
41:37but we're going to
41:38decline at this time
41:39to accept Lori
41:40and Rashawn's offer.
41:41All right.
41:42$15.
41:43Yay.
41:44All right, guys.
41:45Alabama in the building.
41:47My family's from Besseman.
41:48Thank you so much.
41:49No, it's all.
41:49You ever been to Besseman?
41:50Oh, of course.
41:50Yeah, yeah, yeah.
41:51That's where my family's from.
41:52Oh, they're done.
41:52Hey, congratulations.
41:53I can't believe what you've done.
41:54We're going to kill you.
41:54Very good.
41:55Congrats, guys.
42:01I just locked the deal down.
42:03Oh, my gosh.
42:05Man, this is a dream come true
42:06to get a deal with two sharks.
42:08Rashawn is an awesome businessman
42:10and Lori has so much experience
42:12in retail,
42:13it couldn't have been
42:13a better deal.
42:40And the dream comes priming
42:43to do everything.
42:44Exactly.
42:45All right.
42:46Oh, my gosh.
42:47Oh, yeah.
42:48Oh, man.
42:48Oh, man.
42:49Oh, yeah.
42:50Oh, yeah.
42:51Oh, yeah.
42:51Oh, yeah.
42:54Oh, yeah.
42:58Oh, yeah.
42:59Oh, yeah.
43:09Oh, yeah.
43:09Oh, yeah.