カテゴリ
📺
テレビトランスクリプション
00:01Tonight on Shark Tank...
00:03Who's ready to make history with me?
00:04You're like the perfect nerd.
00:06Mind joining me on stage to fight for your lives?
00:08Oh, there we go!
00:10No one's pulling into the yard to pick up our craft.
00:12This is crazy chicken stuff.
00:14Last year, there's been over $7 billion in revenue.
00:17I think you're just getting started.
00:19You're onto something that could scale up so much more.
00:22You're killing it.
00:23You got an idea here. How do I make money?
00:25I would like to recommend you do no deal here today.
00:30First Into the Tank is a unique way to get your hands on American history.
00:49Nine months and five years ago, a new company was brought forth, conceived in history,
00:55and dedicated to the proposition that all Americans deserve equal access to hold the documents that have shaped us.
01:02We highly resolve that this nation shall experience a new birth of historical understanding,
01:08and that the sharing of history of the people, by the people, for the people,
01:14shall never fade from our collective memory.
01:21Hi Sharks, I'm Ari from Chicago, and I'm here seeking $250,000 for 10% equity in my company, History by Mail.
01:30History doesn't feel real if you can't experience it.
01:34Not everyone can go to a museum, and even if you can, you can't touch all the artifacts.
01:47Yikes!
01:48But what if you could literally get your hands on history?
01:51Well, now you can, thanks to History by Mail.
01:54History by Mail is a subscription service that delivers the best of America's incredible history directly to your door each month.
02:02Subscribers receive an envelope in the mail each month to their home that contains an immersive experience they can touch and examine,
02:09making the past feel vivid and exciting.
02:11Let's see what's in my mailbox.
02:14Ooh, my History by Mail letter.
02:16Wow!
02:17The check used to purchase Alaska from Russia, written in 1868 for $7.2 million,
02:24for land that today is worth $60 billion in annual GDP.
02:28Wow!
02:29That's a return on investment any shark would love, and a real estate deal only Barbara could beat.
02:33History by Mail brings the monumental moments of the past into our everyday lives.
02:37We are a movement to connect people with the stories that shaped our world one letter at a time.
02:43So, Sharks, who's ready to make history with me?
02:46Now it's your turn. You each have a mailbox in front of you.
02:50I've curated a letter for each of you.
02:52Very good presentation, Ari.
02:55Very much so.
02:57The history of basketball. I like it. The original rules.
03:00I got Annie Oakley.
03:01That's a letter that Annie wrote to President William McKinley, volunteering her team of female sharpshooters for their help in the Spanish-American War.
03:09Money's related to my father. My father was liberated by American soldiers from the Holocaust.
03:15The stamp that we used to send out that letter honors the Japanese-American soldiers in the 442nd Infantry Regiment.
03:21I mean, this is beautiful that you do this. Thank you.
03:24How did you come up with this passion to do this?
03:27I've always been a history buff. I heard both of my grandparents tell stories about their service in World War II.
03:33And I was an intern in the U.S. Senate, and one day I was touring the Library of Congress.
03:39They had some incredible documents on display, including a handwritten letter by President Abraham Lincoln.
03:43And when I saw that, it gave me the chills.
03:46Wow, I'm sure.
03:47Instantly transported me back to the Civil War era.
03:49So I started replicating them for family and friends. Their eyes lit up.
03:52I thought, there's a business here. And the rest is history.
03:56Ari, how do you find the customer, the history buff that you want to sell this to?
04:01So, we have two main pieces of our business.
04:03We have a direct-to-consumer website, and roughly half of our business is wholesale to Uncommon Goods,
04:08which is one of the largest websites.
04:10I know it.
04:11Gift sites in the country.
04:12What's interesting to me is it's a great gift.
04:15Because everything today is on your cell phone, on your iPad.
04:20Everything's electronic.
04:21Okay, you got an idea here. How do I make money?
04:25Great question. We've sold $3 million in sales in the last five years and nine months.
04:30Wow.
04:31We've sold 85...
04:32Five years, you said. Five years?
04:33What about this year?
04:34What about this year?
04:35This year, in the last 12 months, we've sold $1,075,000.
04:38Wow.
04:39Good for you.
04:40We have sold 85,000 subscriptions.
04:43How much is a subscription per month?
04:45You have three different subscription options.
04:47You can either get monthly for $9, six months for $42, or annual is $78.
04:53What's the attrition rate every 12 months?
04:55It's a very good price point.
04:56After you acquire a subscriber, how long do they stay subscribing?
05:00On average, 18 months.
05:02What do you anticipate 2024 to be?
05:04$1.3 million.
05:05What's the free cash flow from that?
05:08We have a 43% net operating margin.
05:11But that's after marketing costs for acquiring customers?
05:13Yes.
05:14So I'm going to make $400,000 at least, free cash?
05:17Yes.
05:18So why are you here, Ari?
05:19You're killing it.
05:20I'm here for you.
05:21Come on now.
05:22Okay, so Ari, what's customer acquisition for you?
05:25$20 blended.
05:27Yeah.
05:28Our LTV is $148.
05:30When you do digital spend, what are you getting in return on ad spend?
05:34You put out $1,000, you make $5,000 in sales?
05:36On Google, depending on the time of year, because we are a gift product, it's between $3,000 and $4,000.
05:42Not bad.
05:43Not great.
05:44Not bad.
05:45You're not losing money because the margins are pretty high here, right?
05:47Yeah.
05:48He's killing it.
05:49I mean, he's making $400,000 a year.
05:51Then he's paying 30% tax.
05:53I'm talking about distributions here.
05:55I get that, but still.
05:56But Ari, to Mark's point, what are you looking from a shark and how would you use the $250,000?
06:03The money is used for scale.
06:05We haven't tapped any bulk sales.
06:07We've gone after one particular niche, which is gifting.
06:11We haven't tapped corporate sales, museums, schools.
06:16Ari, you're gonna make $400,000 this year.
06:20You made about the same thing last year.
06:23You don't need the $250,000.
06:26Oh, wait a second.
06:27That is true.
06:28I'm not here for...
06:29Listen, I...
06:30Wait, say it, say it.
06:31Honestly, I'm not really here for the money.
06:34I'm here for you.
06:35They're the best in the world.
06:36Wait, wait, wait.
06:37You love history, obviously.
06:38You get to do what you love.
06:39And you're making a killing.
06:40You don't really need our help to get to the next level.
06:43For those reasons, I'm out.
06:45Once Shark is out, Ari has four more chances to make a deal for his history-based gift company, History by Mail.
07:02Just to make it interesting, I'll make you an offer because I've never seen a business like this.
07:07This is crazy chicken stuff.
07:08There's no question about it.
07:09And really, it's about customer acquisition.
07:11I can definitely help you there.
07:12But I'm looking at it saying the only way I ever get my money back is through distributions.
07:17So let's say it just stays at the million-three rate.
07:20If I gave you $250,000 for 10%, it would be over five years before I got my money back.
07:27That's the problem.
07:28So I'm thinking the right deal that's fair is $250,000 for 20% and I'll get my money back before I die.
07:34It's got to be realistic because I want to turn on the social just to acquire more customers.
07:39I mean, it's kind of a very niche, crazy thing.
07:43Um, Ari, I will match Mr. Wonderful's offer.
07:46I like you.
07:47I like what you stand for.
07:48And I would enjoy working with you.
07:51And you have to choose, like, I know this is Shark Tank, but I'm a little bit more of a dolphin, a little bit more noble than this guy.
07:57I think we can go deeper with you and be good partners to you.
08:00Ari, I haven't spoken yet.
08:03Thank you for the offer.
08:04I wanted to ask you if you do a lot of social media because you're like the perfect nerd.
08:08Now, you're a character on social media.
08:11We can do a lot better with social media.
08:13It has not been a focus.
08:14I just personally am not on it.
08:16You're out of your mind.
08:17It's the best way to sell this.
08:18Oh, you would be like the king.
08:19You look like the perfect type to be the historical nerd on social media.
08:24People would love to listen to you.
08:26It's an area I need help with.
08:28Well, just hire somebody.
08:29That's easily done.
08:30Where do you live, Ari?
08:31In Chicago.
08:32Okay.
08:33I would come and visit you and shoot a whole bunch of social with you and chop it up.
08:36You'd be funny with him.
08:37No, it would be.
08:3815, 30s, 45s, 59 seconds.
08:40Yeah, Ari would be great.
08:41While you're thinking about that, I think it's great.
08:45I enjoyed reading it.
08:46It's very, very clever.
08:48I think it's a great business for you.
08:50I don't know if you're going to take a partner, but I think you're killing it all on your own.
08:55I'm out.
08:56Honestly, I think you're just getting started.
09:02I think you're onto something that could scale up so much more.
09:07I agree with Barbara about the nerd thing.
09:09I think you could really hit it out of the park.
09:11And that's one beautiful thing about social media.
09:13They like authentic people and you're an authentic person.
09:16You bring that love of learning.
09:17I think you could become something very, very special.
09:21You could be a star.
09:22Do you have any interest in going in together?
09:24I would invite Barbara to do this with me because I think her social media skills are very strong.
09:30And I think we could have a lot of fun together.
09:32I'll go with him just to knock Mr. Wonderful out of the box.
09:35This is like letting a fox into your hen house.
09:37You don't want to do that.
09:39I want to do this on my own.
09:40I don't need these sharks.
09:42Listen, I love history.
09:45My favorite teacher in my life was my U.S. history teacher.
09:48And I really think it's beautiful what you're doing.
09:50And I would love getting on the journey of helping you achieve that.
09:53I can beat that, Ari.
09:55Because I lived history.
09:56I was born in 1601.
09:57I'm a vampire.
09:58That's right.
09:59It's true.
10:00So, Ari, there you go.
10:02You've got two offers.
10:03What are you going to do?
10:04What do you want to do?
10:10Mr. Wonderful, I very much appreciate your offer.
10:13But Barbara and Daniel, you have a deal.
10:15You got it.
10:16This is history being made.
10:18Really.
10:20It's a pleasure.
10:21I'm in love with you already.
10:23Congrats, Ari.
10:26Thank you, everyone.
10:27Shouldn't mess with a vampire.
10:29Got a deal.
10:32What I'm really after is the expertise of the sharks.
10:36I have a young family, and time is so precious to me.
10:40If I can accelerate my sales by and are learning by a decade or more just by partnering with a shark, I jumped at that in a heartbeat.
10:50In Season 14, Sam Chasen and Matt Gronberg made a deal with Mark Cuban for their moving and storage business for college students, Storage Scholars.
10:57Students are given boxes.
10:59They pack up their belongings, lock up their room, and go home.
11:02And we'll move everything into storage for the summer.
11:04We'll even have all their belongings waiting in their new room when they return to campus.
11:07Let's see what they're up to now.
11:09That first year following Shark Tank, we knew we were on track for huge growth.
11:13And so we partnered up with third parties that were going to support us with drivers and warehousing, and that turned out to be a huge, huge mistake.
11:19We saw service quality tank, some people were late, some people were delayed, and that just doesn't fly when you have a college movement day given the importance of that moment.
11:26And so in the last year, we decided to pivot back to hire and train our own staff and have full accountability of everything that we put our name on.
11:33We've not only seen customer satisfaction increase, but also it's given us the internal confidence that we have the ability to scale without anyone else's help.
11:39We really believe in hiring and training students to be able to do a huge part of the work.
11:43And so we create this internship experience in which peers on their campus are the ones that are actually servicing other students.
11:48This year, we'll hire and train over 1,300 students. We'll pay them for their work, they'll get incredible internship experience, and learn a ton about entrepreneurship.
11:55Before pitching the Sharks, we had $3 million in lifetime sales. It's been two years since we struck that deal with Mark, and now we have $15 million in lifetime sales.
12:04Every little hack you can create that saves you money and makes you more efficient is a win.
12:08We started this business in college using things like Gmail, Google Docs, and Google Sheets.
12:12Mark's always been ahead of the curve on all things AI and technology.
12:16And so through his partnership with Google, he introduced us to Google Workspace with Gemini.
12:20We recruit, hire, and train a lot of people, and that requires making updated training documents.
12:25We gave it a prompt to make us a new training doc.
12:28And reference, and this is the cool part, you can look at some of your old training documents like Statement of Work Day Manager.
12:34Right.
12:35And then I can even say, include contact information of their manager, Jessica.
12:40And I don't even have to tell it who Jessica is, so I'm gonna click this insert button, and boom.
12:44We have a totally up-to-date training doc.
12:46Before, this used to take us hours, and now with Gemini, it's made this so much faster.
12:50Now, you want me to really blow your mind?
12:51We were looking to see what else we could do within Gemini, and we found this tool, Notebook LM.
12:55Uh-huh.
12:56And it literally took that training document and turned it into a podcast.
12:59You just landed a new job.
13:03And it's called Storage Scholars.
13:05Now, somebody could be working out at the gym and doing their Storage Scholars training.
13:08It is the best time hack ever invented.
13:11Thanks to Storage Scholars for helping us launch a new initiative with Stanford Student Enterprises.
13:16Recently, we started collaborating with the Student-Run Business Association, also known as the SRBA.
13:21The SRBA is a national organization that partners with over 5,000 student entrepreneurs and business leaders across 22 campuses.
13:28Through the SRBA, we were able to launch at Stanford this year.
13:31And now, students will get to work at Storage Scholars, gain real-world experience, and they'll even get academic credit for it.
13:36Madstam learned a lot of hard lessons, but they learned them.
13:40Now, they're back into growth mode.
13:41Maybe there's an acquisition in their future.
13:43And I think there's no limit to where they can go.
13:57Next into the tank is the arcade experience of the future.
14:09Hi, Sharks.
14:10My name's Brent Bushnell.
14:11I'm asking for $500,000 for 5% of my company.
14:14Sharks.
14:15Humans need to get together more in person.
14:19Kids need more active play.
14:21Everyone needs more joy.
14:23Future Circus has an answer.
14:25We're game makers creating huge futuristic group games.
14:29We use standard locations like basketball courts and parking lots together with the latest mixed reality technology to create downloadable theme parks.
14:37Literally, this is like living inside your favorite video game and it's as easy as putting on a pair of goggles.
14:43As an example, imagine you're on a tricycle in the middle of a parking lot at your local mall.
14:49Or maybe you have a wizard wand in your hand and you're throwing fireballs against your friends in the most epic street wizard spell battle your town has ever seen.
14:58Now the best part is, you can do this in a park, a parking lot, your home, but most importantly, vacant retail.
15:04All of these places can be turned into magical wonderlands that you can connect with your friends and have a heck of a great time.
15:11Now Sharks, the time is now to extend the $350 billion video game industry out into the real world.
15:19So Sharks, who wants to run away and join the circus?
15:22So are you related to Nolan?
15:25Uh, Nolan's my father.
15:27Kind of saw the resemblance.
15:28Oh yeah.
15:29So tell everybody.
15:30He found Atari and Chuck E. Cheese.
15:32Atari and Chuck E. Cheese.
15:33Yeah, he's a legend.
15:34I don't bring it up because people tend to make the wrong conclusions.
15:37Uh, my dad was very strict with me and my seven siblings about never giving us any money.
15:41I started bagging groceries when I was 12.
15:43Started my first company in college.
15:45You stand on your own merits.
15:46I stand on my own merits.
15:47I've worked my butt off my whole life.
15:48Good for you.
15:49My background's engineering.
15:50My dad was an engineer and he raised us as engineers.
15:52And so we were building stuff all the time.
15:54I've actually got a demo for you guys.
15:55Mark, Daniel, you mind joining me on stage to fight for your lives?
15:58I mean, experience a demo?
16:00Ooh.
16:01So come over here.
16:02Grab this headset right here.
16:04Hold it like a pair of binoculars.
16:06Okay?
16:07And then grab that controller.
16:08Grab this controller.
16:09For the rest of you, I'm gonna be capturing their view in my headset up on this screen.
16:15There we go.
16:16Now we can see.
16:17There we go.
16:18Now flick that like you're cracking a whip.
16:19There you go.
16:20That's a fireball.
16:21There's a fireball.
16:22Okay, now the rest of you can see what's going on here, right?
16:24So they are in a virtual world, but they can see everything else.
16:27Try to hit Mark.
16:28Come on, let's go.
16:29He's not meeting fireballs.
16:30Like you're cracking a whip.
16:31This is not going.
16:32Daniel, like you're cracking a whip.
16:33Beautiful.
16:34You got him.
16:35Daniel, crushing him.
16:36Oh, there Mark.
16:38There we go.
16:39Oh, my God.
16:40There it is.
16:41He's crushing it.
16:42He just blew you up.
16:43All we need is three.
16:44Oh.
16:45Strong.
16:46Very strong.
16:47Wow.
16:48Daniel's on fire.
16:49Wow, you're killing it.
16:50Wow, Mark.
16:51When yours started working, it was just firing away.
16:54I found it, too.
16:55Woo!
16:56So, walk me into your world.
16:58Sure.
16:59Let's say I buy a ticket.
17:00When I walk in, what is there for me?
17:03You're going to be greeted by one of our entertainment directors.
17:05You're going to go and you're going to check in on a little iPad with all of the details, sign a quick waiver, and then you're off and running.
17:12There's a whole center area where you get to have food and beverage, and then surrounding that are all the different attractions.
17:18So, we have a Western shootout.
17:19We've got a drift trike racetrack.
17:21You're collecting coins, just like you're literally in the middle of a race.
17:25But there's just so much competition here.
17:27Walk us through.
17:28Where is this?
17:29Like, is this just a test thing, and you're still developing, or is this perfected?
17:33How are you better than the competition?
17:34We are still developing, but my technical co-founder, Aidan Wolfe, is an absolute superstar.
17:39We are a year ahead of everybody else.
17:40We've been developing this software.
17:42We'll be ready.
17:43So, what makes you a year ahead of everybody else?
17:44Yeah.
17:45Because it was fun, right?
17:46But it wasn't so overwhelmingly different, right?
17:48Sure.
17:49So, what makes your technology more advanced?
17:50So, this is actually my second circus.
17:53We built a 50,000-square-foot entertainment complex in the middle of downtown Los Angeles.
17:57Virtual Reality Arena.
17:58We did over $8 million in 2019.
18:00We were on trend to do $10 million in 2020.
18:03Yeah.
18:04It just eviscerated the business.
18:06Now, why don't you start it up again, though?
18:08Just open up what already you know is a huge success.
18:11When we imagined the first circus, it was with 2017 technology.
18:15We needed $10,000 in trust, $2,000 in computers, tethering.
18:18It was less good experience.
18:19All of that is now this tiny little headset, right?
18:21And so, we can deploy what was a $9 million build we can do for $100,000.
18:26Look, I'm in the real estate business, and we have a lot of stress in America now in B and C grade malls.
18:32100%.
18:33100%.
18:34Where they're basically going bankrupt.
18:35Yes.
18:36What you mentioned was you could take this empty retail space.
18:39You need AC, you need some food and beverage, you need some parking, wireless internet, and that's it?
18:45That's it.
18:46Yeah.
18:47And a lot of those things are already in most of those vacant retails.
18:50Okay.
18:51So, what do you think the cost is?
18:52You approach me and say, look, I'm going to pay you what per day of use?
18:57We would do a percentage of revenue.
18:59So, it would be 10 or 20% of our revenue.
19:01And what would you project as your revenue to that store?
19:04We think a single location could do somewhere between one and a half and $2 million top line revenue.
19:09You're saying we would, we would, but your valuation of $10 million implies that you already are.
19:15So, what have you actually done in these models or is it all just dreaming up business?
19:21All we've done is build software so far.
19:22So, you have zero sales so far.
19:24Well, that's expensive to build software.
19:25We've done a bunch, we've done a few events.
19:27We made $9,000 in bringing it to other people's events.
19:29But how many places, how many locations are you in right now?
19:32Zero.
19:33Zero.
19:34But I operated our amusement park for seven years.
19:37But what did you spend to set up LA?
19:39How much did you have to invest to do that one from scratch?
19:42So, for our old location was, you know, at least $9 million.
19:46Wow.
19:47Ouch.
19:48And that was in the actual build out?
19:49That was in the actual build out.
19:50That was in the actual build out.
19:51Yeah, that's old tech.
19:52But we also had built all the games.
19:53Brent, I need to know how it would actually work.
19:55Right.
19:56What are you going to charge for your ticket price?
19:57Is that entitled a kid to an hour?
19:59We found about a dollar a minute for entertainment.
20:02Imagine about $30 average spend per person.
20:05$20 on entertainment, $10 on food and beverage.
20:08What were the terms of the last raise?
20:09What was the valuation?
20:10You would be our first investor.
20:12We've raised no money for this.
20:13Wait a sec, what about the past?
20:14Oh yeah.
20:15Walk me through the past.
20:16Yeah, so we raised $40 million for the other.
20:17Why are those investors not coming in with you this go around?
20:19$40 million.
20:20What happened to that?
20:21Uh, COVID eviscerated the business.
20:24So you went bankrupt?
20:26Yeah.
20:27Are any of those investors involved in this?
20:31No.
20:32So Brent, why is it worth $10 million bucks right now?
20:34Because we're gonna make something massive.
20:38This is a huge...
20:39Listen, Brent, this is where I...
20:40Because he believes it.
20:41This is how I feel.
20:42I think the space you're playing in is an important space.
20:44It's got huge potential.
20:45But I think you're a little bit too early to bring in an investor,
20:48so I'm sorry, but I'm out.
20:50Okay.
20:51I appreciate it, Daniel.
20:52I'm disturbed by, one, losing all that money for the investors
20:54and no one staying with you.
20:56I know I've lost money, sadly, along the way,
20:59but somehow you keep people with you, sort of, you know?
21:03And it's way too early, so sadly, I'm out.
21:06Understood. Thank you.
21:07Yeah, Brent, along the same lines.
21:08The challenge is refresh, right?
21:10Because you always have to have something new and exciting.
21:13And I don't see that as a surmountable problem,
21:16so for those reasons, I'm out.
21:18Got it. Thank you, Mark.
21:19This is a reboot for you.
21:21It's version 2.0 after $40 million in the ground.
21:24It's like walking on a tightrope with no net,
21:28but $500,000 for 5%.
21:31You know, if I was interested, I'd beat you into, like,
21:33a baby seal on valuation.
21:34Oh!
21:35But I just, I don't want to do that.
21:37If it was a smaller amount, maybe I'd take a flyer,
21:39but I'm sorry, Brent, I'm out.
21:41I understand. Thank you.
21:42I guess I'm the only one left.
21:44So, I really like you,
21:47but I'm just afraid this isn't the right business for me.
21:50And unfortunately, I don't love your valuation anyway,
21:53and so I wish you good luck, but I'm out.
21:58Appreciate you very much.
21:59Thank you very much.
22:00Good luck.
22:04We didn't get a deal today,
22:06but I'm still so excited about the future.
22:08I believe in this approach so intensely,
22:10and it's gonna revolutionize not just entertainment,
22:12but therapy and fitness and learning.
22:14It's gonna be awesome.
22:27Next up is a business that upcycles an overabundant resource.
22:41Hello, Sharks.
22:42My name is Amanda Freund,
22:44and I am here seeking $200,000 for 10%
22:47in my one-of-a-kind business.
22:49I've come here today
22:50straight from my family's dairy farm in Connecticut,
22:52and I have someone special to introduce to you.
22:55This is Bessie.
22:57Sharks, in one day,
22:59this gorgeous gal right here
23:01produces seven gallons of fresh milk.
23:03What you might not know
23:05is she also produces 100 pounds of manure every day.
23:09My God.
23:10I could top that.
23:11I bet you could.
23:14For generations,
23:15dairy farmers like us
23:16have used the brown stuff
23:17as the best organic fertilizer
23:19to grow our crops,
23:20but we're still left with a crap ton too much.
23:24So my family decided to put the poo to good use
23:27with cow pots,
23:28eco-friendly gardening containers made from,
23:31can you guess?
23:32Manure.
23:33Cow manure.
23:34Cow pots are the only American-made,
23:37renewable and recycled container
23:39that is 100% biodegradable.
23:41We currently offer 15 different styles,
23:43providing gardeners and growers
23:45with a sustainable alternative to single-use plastic.
23:48These plantable pots are easy to use and waste-free.
23:52Just plant these babies and the roots penetrate through the pot
23:55into the soil for a happier plant.
23:57Sharks, we are upcycling a resource that is generated all over the world.
24:03So who's ready to grab a shovel and start turning this brown stuff into green stuff with me?
24:09Sharks, in front of you there are some cow pots for you to check out.
24:12So you put your plant into the pot and then into the soil and the pot disappears.
24:18It goes and enriches the soil.
24:19Is that correct?
24:20Yes.
24:21Our pot breaks down three times faster than other biodegradables.
24:24So when you plant this in the ground,
24:26we discourage you from ever scoring, crushing, tearing it.
24:30Because as you can see,
24:31I already have roots penetrating through this pot.
24:33So there's nothing restricting root penetration.
24:36When you put it in the ground,
24:37it also attracts a lot of bioactivity.
24:39How much does it cost you to make?
24:41This costs us about $1.30 to make this product.
24:44We sell that to our distributors for $2.60.
24:47Most of our clientele is distribution and direct-to-business.
24:52And what do they buy it for at retail?
24:54So the MSRP on this product is $6.15.
24:57Is this industry highly consolidated?
25:00There's one or two gigantic pairs that are leading the way?
25:04When it comes to biodegradable pots,
25:06the primary leader is a peat pot product.
25:09There is growing interest by gardeners and growers
25:12to shift away from peat-based products.
25:15What is peat pot?
25:16So peat is mined from peat bogs.
25:18And so that's basically a delicate ecosystem.
25:21And it takes about 100 years for a peat bog to regenerate.
25:24What does the competition sell for?
25:26The size that's a little bit closer to what they have on the retail shelf is our number three round.
25:32And so they would be selling that for about $3 and we sell it at retail for about $5.
25:39You are 40% more expensive, but is this predominantly a consumer use or do you think you can sell it to the landscapers?
25:48It's both. It's both.
25:4925% of our total sales is the retail packaged product.
25:53The other 75% is bulk loose fit pots.
25:56And how long have you been doing it for?
25:58So we've been at this since 2006.
26:01My first job out of college.
26:02Really in 2006?
26:03I've grown up in the same house that my dad grew up in on our family's dairy farm.
26:07And dairy farmers have to contend with the reality of the fact that there's a milk truck that pulls into our yard every day to pick up our milk,
26:15but no one's pulling into the yard to pick up our crap.
26:18So we've got to deal with it.
26:20And there's growing regulations for what we can apply to our fields and how much.
26:26And so this was designed as a way for our farm to meet those regulations and to be better accommodating of our natural land base.
26:36Just this morning, I got an inquiry from a group in Egypt that wants to make cow pots.
26:40Every country in the world that has dairy cows is contending with the issue of how to manage this waste.
26:47Hold on, hold on.
26:48You know your .
26:49We got it.
26:50So we haven't talked about your sales, right?
26:51So lifetime sales for cow pots branded products, we've done three and a half million dollars.
26:56Wow.
26:57Got it.
26:58So let's just go back five years and tell us your sales by year.
27:01We've managed to bring in about $300,000 to $400,000 a year in sales.
27:06And are you profitable on that?
27:07We are profitable.
27:08So this year I'm forecasting about 10% profit margin.
27:12So $40,000 off the 400?
27:14Mm-hmm.
27:15You've reached this plateau.
27:17How do you get to the next level?
27:18And what is the next level in your mind?
27:20We are conservative with our pocketbook.
27:22And so our marketing budget has been slim.
27:25It's grassroots marketing.
27:27Is we, you and your dad, you and your whole family, just the two of you?
27:31My dad has 98% and I have 2%.
27:34Where's your dad having you do all the work?
27:36My God.
27:37Somebody's gotta be at home shoveling crap.
27:39Okay, so are there no other applications for what you're doing?
27:43Thank you for asking.
27:44So we've actually begun working with a consultant on how to apply this technology beyond horticultural containers.
27:54This is our first prototype for packaging wine bottles.
27:58Right.
27:59Instead of dealing with a fiber container that is compostable in a commercial facility.
28:05What does that even mean?
28:06And is this strong enough?
28:07Most people claim biodegradable.
28:08It really isn't.
28:09It really isn't.
28:10It's actually worse because it creates more mass and it doesn't biodegradate.
28:14But honestly, that is an enormous market.
28:16Not only is it for wine, but there's a million other things I've gotten.
28:19This vase can also be the top to hold candles and glass jars.
28:23Exactly.
28:24All glass hard goods.
28:25We also have packaging corners.
28:26Manda, the big question is gonna be this.
28:28Cost, yeah.
28:29Wine.
28:30Let's go with wine, okay?
28:31Because I'm just one wine vendor, but I ship 6 million bottles a year.
28:35We look at every penny of cost from the label to the cork, including the packaging, whether
28:42it's a lay down or stand up 12 case.
28:44What does that cost versus the paper I'm using now?
28:48Because it's very inexpensive.
28:50I mean, those products are sitting between $1 and $2 and we can be there.
28:55We've identified the equipment to do it.
28:57Listen, I have to tell you, I think you're extraordinarily credible as an entrepreneur.
29:02Very impressive.
29:03But these are not areas where I think I could add enough value.
29:07So for those reasons, I'm out.
29:09I understand.
29:10Yeah, Amanda, what you've accomplished is great, but you see the ceiling, you know,
29:14on top of you for your sales and you haven't been able to break through it.
29:18I just don't see how you break through those ceilings.
29:20So for that reason, I'm out.
29:22Amanda, this isn't the right deal for me.
29:25I wish you good luck.
29:26I think it's amazing what you've done, but I'm out.
29:30You know, I've bought into you because I've never met anyone as knowledgeable as you in
29:35your field of expertise.
29:36I wish I could find a way to invest in you, but I just don't see the product going somewhere.
29:41So sadly, I'm out.
29:44You know, Amanda, I'm intrigued with the packaging business because it's a huge industry, but
29:51it's so cost controlled.
29:53I mean, I'm in it and I can save a cent off what we put a wine bottle in.
29:57I would do it.
29:58It's a crapshoot for me.
29:59I'll make you an offer, but I need a huge hunk of it.
30:02Right now, it's not worth two million bucks.
30:05No, it's not.
30:06I'll give you the 200K for 25%.
30:11Can you do it for 20%?
30:14No.
30:15No, because this one I got to work on.
30:17I actually have to pick up the phone and start trying to figure out who I can sell this to.
30:22Amanda, 25%, he's giving you an $800,000 valuation, which is not even twice your revenues.
30:29The bottom line is, this has to be transformed into a packaging business.
30:34I can't accept that deal.
30:36Thank you for offering it.
30:37But we've worked too hard to build this up and 20% was where I had to set the limit.
30:44What do you think?
30:4922 and a half and it's done.
30:51Oh.
30:52Dang.
30:53Yeah.
30:54We've got to meet in the middle.
30:55We've got to meet in the middle.
30:56Come on, Kevin.
30:57Come on, Kevin.
30:58I know that you just went to the United Nations to talk about the Sustainable Development Goals.
31:04This is it.
31:05That's right.
31:06This is your chance to do good for the world.
31:07Make the United Nations proud, Kevin.
31:09Oh, my goodness.
31:10You're really squeezing my head.
31:14All right, Amanda, you have a deal.
31:15Nice to meet you.
31:19Come here.
31:20Thank you so much.
31:21Oh, thank you.
31:22Oh, your new best friend.
31:23I want to be known as Mr. Wonderful, the king of .
31:27You already are, Kevin.
31:30Thank you so much.
31:31Bye.
31:32Thank you, Amanda.
31:33Congrats.
31:34Let me tell you, as a 23-year-old girl that was walking into garden centers selling pots made out of poop, like, people laughed at me, right?
31:44So, like, we're going to demonstrate that this is real and that there's so much potential.
31:49Next up is a product line that embraces unique cultural traditions.
32:06Hi, Sharks.
32:07My name is Jesus Rubalcaba.
32:08I'm from Salinas, California, and I'm seeking $120,000 in exchange for 10% equity in my business, paper tacos greeting cards.
32:25Sharks, have you ever been woken up on your birthday to friends, family, even a mariachi, as they sing to you Las Mañanitas instead of the traditional Happy Birthday song?
32:38And have you ever had your face just smashed into your birthday cake as people yell, mordida, mordida, or bite it, bite it?
32:49These are some of the cultural traditions that I grew up with that made my Mexican celebration so unique.
32:55But when it comes to the greeting card industry, there's a noticeable gap.
32:58You see, greeting card companies try to target the Latino community with the Spanish language alone, and they forget a lot of times about the cultural nuances that make us so unique.
33:07For example, we might say get well soon, but we also will say something like sana sana colita de rana, or he'll heal the butt of a frog.
33:16This is something we say when you're hurt or not feeling well.
33:20Our cards are already resonating with the Latino community and beyond.
33:25So, Sharks, why settle for Spanish greeting cards that really blow?
33:30When you can have a fiesta!
33:33Yeah!
33:34Yeah!
33:35Arriba!
33:37Ykse uobakarramba!
33:40Ykse uobakarramba!
33:45Muy bonito, nice.
33:46Nice.
33:47Wow!
33:48That is fabulous.
33:50Ta-da!
33:51Well done!
33:52Muy bonito, gracias!
33:53Wow, that is fabulous.
33:55Ta-da!
33:56Well done.
33:58Muy bonito, gracias.
33:59Thank you so much.
34:00Gracias.
34:01So, Sharks, in front of you, you have a sample of six of our most popular cards.
34:06I'm not sure what that last word is.
34:08So, you are the coleslaw to my popusa, basically, is what it says.
34:12Yeah!
34:13But what is important to understand is that these do hit a chord in the heart of the Latino community.
34:19Yes, multiple times I've had people look at my cards and they have an immediate emotional connection to them.
34:25They say, like, oh my god, my grandma says that, or I remember doing that as a kid.
34:29Are you the artist that makes them?
34:31Yes.
34:31I'm a designer, so I created 85% of them.
34:34The other ones, I partner with other freelance artists.
34:37Okay, so, break down your sales.
34:39How much retail, how much direct-to-consumer?
34:41Retail or wholesale is 90%.
34:44Direct-to-consumer is 10%.
34:46My impression is, going into stores, very few racks, I rarely get a card from anyone.
34:52I rarely send a card to anyone.
34:53And I thought it continued to be diminished through the internet.
34:56That's actually a misconception, so it's actually the opposite of that.
34:59The last four years, the greeting card industry has risen every year.
35:03Last year, there's been over 6 billion greeting cards sold, generating 6 to 7 billion in revenue.
35:09Well, one of the most successful Shark Tank companies in history is Love, Pop, Greeting Cards.
35:14We've had growth for five years in a row now.
35:16So, people are into this.
35:18That's why I'm questioning, how many linear feet have you been able to get out of retailers?
35:22Well, let's just start with number of stores.
35:24Okay, yeah, so we're currently in 190 boutique shops.
35:29And we just got a partnership with a regional grocery store, which has 55 stores.
35:34How many years have you been in business?
35:36I originally started it with the idea in 2017.
35:39It became kind of serious in 2022.
35:41Is this your full-time gig?
35:43As of last September, I quit my job in tech, and I do this full-time now.
35:47What's your background?
35:48My background, I grew up in Castroville, California, which is a small farm-working community.
35:54Both my parents are immigrants here to the United States.
35:56My dad was a truck driver, and my mom worked in the packing companies.
36:02Even though we didn't have much growing up, they always made sure I had pen and paper, because I loved to draw.
36:07I eventually did go to university, was the first in my family.
36:10Eventually, working in Silicon Valley, all the way up until I became a manager of product design, which was my last job.
36:17What were your sales in 2022, 23, 24, and what are your costs and your margins?
36:222022, it was $13,000.
36:24The following year, in 2023, we made $68,000.
36:29This year, we are at $152,000 in sales to date.
36:35We think that we're going to end at about $188,000 this year.
36:39So, to date, we have about $60,000 in profit.
36:43Good for you, man.
36:44Good for you.
36:45The cards cost $0.57 to make.
36:47We sell them for $5.50 direct-to-consumer.
36:50Wow.
36:50And we sell them at $275,000 wholesale.
36:54But in wholesale, you sell them at packs of six, so it ends up being $1,650.
36:58How much money have you put into your business to date?
37:01I started the business with $2,500.
37:03That's all?
37:04Yeah.
37:05Bravo.
37:05Wow.
37:06But do the big guys have a Hispanic line?
37:08That's a good question.
37:09Because the Hispanic market is 21% of the United States.
37:13This is the largest minority.
37:15Yes, they do.
37:16So, both the big players have their own lines.
37:19Part of when I first started this, I went into the store to purchase a card for my mom.
37:24I didn't really see anything that really resonated with me on an emotional level.
37:30What are you going to use the money for?
37:31I really haven't done any marketing.
37:33And so, if I could put these cards in front of the right audience by way of influencer marketing,
37:39I think that would be great.
37:41I would love to purchase a digital press where I could print this in-house and increase the profit margin by 14 cents.
37:48Let me take a stab at it, okay?
37:49I think this is going to work.
37:51I know this industry inside out.
37:53I have for seven years.
37:54Before you go, I have something unusual to propose.
37:57All sharks are still in on Jesus' greeting card company based on Latino culture, Paper Tacos.
38:17I have something unusual to propose because I don't think ever in my six seasons I've ever wanted to partner with Kevin.
38:24But he has a lot of knowledge about the greeting card business.
38:27Let me do this deal because I am so invested in what I'm doing already in greeting cards with Love Pop.
38:33I work with buyers.
38:33But Kevin, let me just suggest something.
38:34I do all my social with them.
38:35We could find a way to partner with them.
38:37Daniel, it's not possible.
38:38Those guys are so past this.
38:40They're already manufacturing with Vietnam.
38:42We do millions of cards.
38:44Look, the deal's interesting, but I'm out.
38:47Jesus, I'll still do this with you.
38:49I'm excited to work with you.
38:51Your valuation makes no sense, so it would need to be 35%.
38:56Hello.
38:58So, I would like to recommend to you that you do no deal here today, actually.
39:03I think money causes problems when it's too early.
39:05There's nothing better than not having enough money and taking every nickel and getting 25 cents worth out of it.
39:12I just think everything you're doing is right, and I would strongly recommend you just continue on what you're doing.
39:16So I reluctantly say I'm out.
39:17Yeah, I agree with Barbara.
39:20Sometimes we like to rush because we think we should be bigger faster, when in reality, there's nothing wrong with growing slowly and securely because you're cash flow positive.
39:30You'll find yourself able to hire one person.
39:33You'll be able to go sell.
39:34That's the perfect growth path because that entire time, you only have to worry about one person.
39:39And so I'm out, but I just want to tell you, you're on a great path.
39:43Mark is right, but it's a very different path.
39:45You need help, and I have relationships with tons of Hispanic supermarkets, pharmacies, you know, candies, and over a million retail doors.
39:56I have to admit, that aspect alone, getting distributed.
39:58Which means you can counter.
40:00And also, also, let me just jump in and say something to you, Jesus.
40:04Great job.
40:05Love your design work.
40:06Really cute idea.
40:07I just love it.
40:08I think you've done everything right.
40:10And I think it's going to be so much easier if you have a partner like Daniel.
40:13I personally think he gave you a really good offer.
40:16I'm out, but I hope you consider him.
40:19Yeah, I just think that is too much.
40:22So, would you be open to 15%?
40:28No, not 15%, because Jesus, I ran through your numbers.
40:31The amount of work that this is going to take, and I have to be honest also, this is not an industry where I have expertise.
40:36Which, to be honest to you, will take me and my team also work to help do right by you.
40:41But they'll take your call.
40:43They'll take my call.
40:44I know that I will be worth that 35%.
40:47Do you have any wiggle room in your offer?
40:49I would do this for 30%.
40:52I would do that deal in two seconds.
40:56I wouldn't.
40:57I would.
40:58See, we don't agree all the time.
40:59Sharks don't agree.
41:0025%?
41:04It's very hard, Jesus.
41:05Jesus, it's, it's, um, what do you think you're going to make in 2025?
41:11Conservatively, we'll, we'll make a quarter million.
41:13250,000 in 2025 is not going to do it.
41:16We're going to need to aim for a half a million dollars in revenues.
41:19If you're only doing 250, you missed the mark.
41:23The greeting card business is billions.
41:25You just need to get six linear feet in 20, 40, 50 stores.
41:29Jesus, how long did it take you to get the 55 store chain?
41:32Uh, it was like three months.
41:34Okay, could you do it again with a little bigger chain?
41:36Yes.
41:36So you can control the whole thing yourself, right?
41:38Yeah, so that's what I'm focused on.
41:40How much was it?
41:40120K for 25%?
41:42Yes.
41:44I'll do it with you.
41:46Deal.
41:46Deal.
41:48You know, Mark Cuban is not really Cuban, right?
41:53You're the star, right?
41:54You're the star.
41:57Thank you so much.
41:58I have to start working on my Spanish.
41:58Gracias.
42:01Felicidades.
42:02I originally came in here thinking I'd be with Daniel.
42:05That's awesome.
42:05Or maybe even Kevin, because he's already in the gifting space.
42:09But the fact that Mark saw what I've built so far by myself,
42:14and he knows that I'm going to put in the work to build it even bigger,
42:17that really means a lot to me.
42:19And I'd be like, oh no.
42:31Go to estava.
42:33Go back and be loved.
42:35Go to traumatic couple times.
42:37Go back and be wise.
42:40Go to whom.
42:41Go to�ה.