1 00:00:01,234 --> 00:00:02,903 Narrator: Tonight on the season finale of "Shark Tank," 2 00:00:02,903 --> 00:00:04,304 money talks. 3 00:00:04,304 --> 00:00:05,705 Oh, you're making it rain! [ Parrott squawking ] 4 00:00:05,705 --> 00:00:07,941 Sharks, let's talk about investing. 5 00:00:07,941 --> 00:00:09,676 Together: Let's make some serious dough! 6 00:00:09,676 --> 00:00:10,978 You're speaking my language right now. 7 00:00:10,978 --> 00:00:12,179 You love that word. 8 00:00:12,179 --> 00:00:13,780 Narrator: Whose hopes will be dashed? 9 00:00:13,780 --> 00:00:15,616 Never let a greedy pig steal equity. 10 00:00:15,616 --> 00:00:16,683 Turn away from him. 11 00:00:16,683 --> 00:00:17,684 How much have you invested thus far? 12 00:00:17,684 --> 00:00:18,819 Almost $1 million. 13 00:00:18,819 --> 00:00:20,087 -Whoa! -What? 14 00:00:20,087 --> 00:00:21,889 Oh, Lauren! 15 00:00:21,889 --> 00:00:24,157 Narrator: And whose dreams will come true? 16 00:00:24,157 --> 00:00:25,893 All along, we've been invisible. 17 00:00:25,893 --> 00:00:27,327 We want to be more visible. 18 00:00:27,327 --> 00:00:28,595 You are not invisible. 19 00:00:28,595 --> 00:00:32,031 This is gonna be our American dream! 20 00:00:32,031 --> 00:00:34,001 Narrator: It all starts now. 21 00:00:34,001 --> 00:00:35,802 Stop the madness. 22 00:00:40,774 --> 00:00:43,677 ♪♪ 23 00:00:43,677 --> 00:00:46,079 Narrator: First in the Tank is a way to invest 24 00:00:46,079 --> 00:00:47,848 like the rich and famous. 25 00:00:47,848 --> 00:00:56,456 ♪♪ 26 00:00:56,456 --> 00:00:58,625 Hi, Sharks. I'm Nikki. 27 00:00:58,625 --> 00:01:00,527 I'm Lucy. And I'm Victoria. 28 00:01:00,527 --> 00:01:03,030 And we're from San Francisco, California, 29 00:01:03,030 --> 00:01:04,598 where the rent is high... 30 00:01:04,598 --> 00:01:06,900 Together: And so are our ambitions! [ Sharks chuckle ] 31 00:01:06,900 --> 00:01:11,738 We're seeking $250,000 for 2.5% equity in our company... 32 00:01:11,738 --> 00:01:12,973 -Aye, yi, yi, mama! -Scott: Whoa! 33 00:01:12,973 --> 00:01:14,374 ...Parrot Finance. 34 00:01:14,374 --> 00:01:17,077 Sharks, let's talk about investing. 35 00:01:17,077 --> 00:01:18,946 Right now, if you want access 36 00:01:18,946 --> 00:01:20,781 to the best investment strategies, 37 00:01:20,781 --> 00:01:22,783 you need to be rich -- 38 00:01:22,783 --> 00:01:25,819 like, "send a pop star into outer space" rich. 39 00:01:25,819 --> 00:01:26,920 That's right! 40 00:01:26,920 --> 00:01:28,655 Wall Street is a gated community, 41 00:01:28,655 --> 00:01:30,857 while the rest of us are stuck outside, 42 00:01:30,857 --> 00:01:32,392 shaking the fence like, 43 00:01:32,392 --> 00:01:34,861 "Please, sir, may I have a diversified portfolio?" 44 00:01:34,861 --> 00:01:36,063 [ Sharks chuckle ] 45 00:01:36,063 --> 00:01:38,498 Meanwhile, the 1% are printing money 46 00:01:38,498 --> 00:01:41,635 and we're stuck with a savings account collecting dust. 47 00:01:41,635 --> 00:01:44,504 And that's why we created Parrot Finance, 48 00:01:44,504 --> 00:01:47,207 an investing platform that lets everyday people 49 00:01:47,207 --> 00:01:49,843 mimic top-tier professional investors 50 00:01:49,843 --> 00:01:53,680 like hedge funds, insider CEOs, and politicians. 51 00:01:53,680 --> 00:01:55,449 [ Laughs ] Because for decades, 52 00:01:55,449 --> 00:01:58,652 only the wealthy had access to these investing strategies. 53 00:01:58,652 --> 00:02:00,554 Now you do, too. 54 00:02:00,554 --> 00:02:02,022 Here's how it works. 55 00:02:02,022 --> 00:02:03,957 Connect your brokerage account, 56 00:02:03,957 --> 00:02:08,127 discover and subscribe to high-performing portfolios 57 00:02:08,127 --> 00:02:09,997 with proven returns... Hm. 58 00:02:09,997 --> 00:02:12,532 ...and view exclusive investment activity. 59 00:02:12,532 --> 00:02:14,901 So when Mr. Wonderful buys a stock, 60 00:02:14,901 --> 00:02:16,269 you get alerted... Greiner: Ooh! Wow! 61 00:02:16,269 --> 00:02:19,339 ...and can choose to mimic that trade instantly. 62 00:02:19,339 --> 00:02:21,008 It immediately goes into 63 00:02:21,008 --> 00:02:22,609 your connected brokerage account. 64 00:02:22,609 --> 00:02:24,011 It's that simple. 65 00:02:24,011 --> 00:02:25,746 Lucy: The rich keep getting richer 66 00:02:25,746 --> 00:02:28,782 and we let you in on their secrets. 67 00:02:28,782 --> 00:02:31,318 Now you can have your own mini Mr. Wonderful 68 00:02:31,318 --> 00:02:32,653 in your pocket. [ Laughs ] 69 00:02:32,653 --> 00:02:34,321 Only less grumpy. 70 00:02:34,321 --> 00:02:35,856 [ Laughter ] 71 00:02:35,856 --> 00:02:37,491 We partnered up with all the major 72 00:02:37,491 --> 00:02:40,761 North American brokerages to make it seamless and secure, 73 00:02:40,761 --> 00:02:42,162 because smart investing 74 00:02:42,162 --> 00:02:44,431 shouldn't be just for the ultra rich. 75 00:02:44,431 --> 00:02:47,534 So, Sharks, who's ready to ruffle some feathers... 76 00:02:47,534 --> 00:02:51,171 Together: And parrot the pros with Parrot Finance? 77 00:02:51,171 --> 00:02:53,407 -Whoo! Oh, geez. -Greiner: Wow! Oh! [ Laughs ] 78 00:02:53,407 --> 00:02:54,608 Williams: Oh, my goodness. Scott: Oh, wow! 79 00:02:54,608 --> 00:02:56,443 Oh, my goodness! 80 00:02:56,443 --> 00:02:58,412 Oh, you're making it rain! 81 00:02:58,412 --> 00:03:00,247 Okay, there we go. Making it rain! Let's go! 82 00:03:00,247 --> 00:03:01,381 [ Laughter ] 83 00:03:01,381 --> 00:03:03,517 I love it. 84 00:03:03,517 --> 00:03:04,985 Good job, ladies. [ Parrot squawking ] 85 00:03:04,985 --> 00:03:07,821 The first thing that comes -- He's still squawking! 86 00:03:07,821 --> 00:03:09,456 [ Laughter ] [ Squawking continues ] 87 00:03:09,456 --> 00:03:11,858 Greiner: The first thing that comes to my mind is, 88 00:03:11,858 --> 00:03:13,827 how are you getting the information? 89 00:03:13,827 --> 00:03:16,496 And what about the privacy for the client? 90 00:03:16,496 --> 00:03:18,999 Yeah. So we have two ways to get information. 91 00:03:18,999 --> 00:03:20,534 One, through 13F filings, 92 00:03:20,534 --> 00:03:23,270 which is government data and reported. 93 00:03:23,270 --> 00:03:26,039 And the second is through bespoke custom partnerships 94 00:03:26,039 --> 00:03:27,674 we do with funds. 95 00:03:27,674 --> 00:03:29,943 So you're just taking the public data, scraping it, 96 00:03:29,943 --> 00:03:32,279 and saying, "This person either bought or sold..." 97 00:03:32,279 --> 00:03:33,580 -Correct. -O'Leary: Okay. 98 00:03:33,580 --> 00:03:35,082 So that's public information. 99 00:03:35,082 --> 00:03:36,817 You're just organizing it. 100 00:03:36,817 --> 00:03:38,819 But if I'm the brokerage company, 101 00:03:38,819 --> 00:03:41,788 I also sell advisory services. 102 00:03:41,788 --> 00:03:44,124 Why would I want you little teenagers 103 00:03:44,124 --> 00:03:45,659 telling me it's free? 104 00:03:45,659 --> 00:03:49,296 So, before you answer, I know this space so well. 105 00:03:49,296 --> 00:03:51,698 I invested in Robinhood and Coinbase and all these. 106 00:03:51,698 --> 00:03:55,836 They direct flow, trading flow, to these brokerage houses 107 00:03:55,836 --> 00:03:58,805 and get a commission every time they bring a client in 108 00:03:58,805 --> 00:04:00,273 that directs that flow. 109 00:04:00,273 --> 00:04:02,342 Is there anything like this right now, Rashaun, that's... 110 00:04:02,342 --> 00:04:04,444 Yeah. So this is -- this is interesting. 111 00:04:04,444 --> 00:04:05,712 First of all, I'm fired up about it 112 00:04:05,712 --> 00:04:06,780 'cause I love fintech. 113 00:04:06,780 --> 00:04:08,415 It's kind of like my thing, right? 114 00:04:08,415 --> 00:04:10,884 I'm trying to figure out if this is just a cool feature 115 00:04:10,884 --> 00:04:12,352 that a Robinhood can add, 116 00:04:12,352 --> 00:04:14,221 or if you guys actually have a real business behind it. 117 00:04:14,221 --> 00:04:16,656 Do you have anything protectable about it? 118 00:04:16,656 --> 00:04:19,259 Yeah, so the biggest thing here is with the 13F filings, 119 00:04:19,259 --> 00:04:20,760 it is public information. 120 00:04:20,760 --> 00:04:23,296 However, it's extremely hard for the average person 121 00:04:23,296 --> 00:04:25,031 to be able to access this data 122 00:04:25,031 --> 00:04:28,001 because it's very messy and it's not aggregated well. 123 00:04:28,001 --> 00:04:30,137 Hedge funds do it right now. Retail does not do it. 124 00:04:30,137 --> 00:04:32,606 Varanasi: Retail cannot to it. You're trying to democratize it 125 00:04:32,606 --> 00:04:35,108 so that the average -- Yes, and make it readable, digestible, 126 00:04:35,108 --> 00:04:37,010 so people looking on their phones 127 00:04:37,010 --> 00:04:39,212 will get an alert, and it's very actionable. It's actionable. 128 00:04:39,212 --> 00:04:42,082 You're able to basically take action by mimicking it 129 00:04:42,082 --> 00:04:43,483 and customize that trade, 130 00:04:43,483 --> 00:04:45,118 so you're not blindly... Hence, "parrot." 131 00:04:45,118 --> 00:04:46,820 ...putting $5,000 -- There you go. 132 00:04:46,820 --> 00:04:49,623 You're parroting. I got it! Finally. Yes, there you go! 133 00:04:49,623 --> 00:04:51,992 A noisy parrot, 'cause you're parroting it. 134 00:04:51,992 --> 00:04:53,393 So it's customizable. 135 00:04:53,393 --> 00:04:55,262 I can choose to put $10 in this, $50 in this. 136 00:04:55,262 --> 00:04:56,997 And how many users do you have so far? 137 00:04:56,997 --> 00:04:59,366 Yes, so we launched last year... Mm-hmm. 138 00:04:59,366 --> 00:05:01,668 ...and since then, we've gained 25,000 users... 139 00:05:01,668 --> 00:05:03,904 Lubetzky: Wow. ...with 85 million assets connected into Parrot. 140 00:05:03,904 --> 00:05:05,906 That's very impressive. How do you make money? 141 00:05:05,906 --> 00:05:08,341 Yes, so the biggest way we make money right now 142 00:05:08,341 --> 00:05:11,011 is through subscription model, a monthly fee. 143 00:05:11,011 --> 00:05:13,713 It ranges from $8 to $15 a month, 144 00:05:13,713 --> 00:05:15,081 depending on the bundle, 145 00:05:15,081 --> 00:05:17,117 whether it's CEOs, politicians, hedge funds. 146 00:05:17,117 --> 00:05:18,985 What's your customer acquisition cost? 147 00:05:18,985 --> 00:05:21,388 So, of the 25,000 customers that we've acquired, 148 00:05:21,388 --> 00:05:24,090 about 60% of them came from organic. 149 00:05:24,090 --> 00:05:26,726 So right now we have about 50,000 followers... 150 00:05:26,726 --> 00:05:28,728 Oh, she's speaking my language right now. ...across our socials. 151 00:05:28,728 --> 00:05:31,231 You love that word -- organic! And how many pay you the 8 bucks a month? 152 00:05:31,231 --> 00:05:34,267 Viral coefficient. I love it. I love it. 153 00:05:34,267 --> 00:05:36,903 So we have 50,000 across our socials... 154 00:05:36,903 --> 00:05:38,905 Okay. ...and we have millions of impressions 155 00:05:38,905 --> 00:05:40,874 across all our socials as well. 156 00:05:40,874 --> 00:05:43,543 40% of that is through paid acquisition. 157 00:05:43,543 --> 00:05:45,278 So like that's paid advertisements 158 00:05:45,278 --> 00:05:47,013 and influencer marketing. 159 00:05:47,013 --> 00:05:48,148 Lubetzky: Just to understand a little bit 160 00:05:48,148 --> 00:05:49,482 about your backgrounds, 161 00:05:49,482 --> 00:05:50,784 because it's so impressive what you've built... 162 00:05:50,784 --> 00:05:52,586 So impressive. ...and you look very young. 163 00:05:52,586 --> 00:05:54,154 Are you as young as you look, or do you just... 164 00:05:54,154 --> 00:05:55,522 Victoria: We're older. ...eat a lot of KIND bars? 165 00:05:55,522 --> 00:05:57,891 I wish we were actually teenagers. Thank you. 166 00:05:57,891 --> 00:06:00,594 Then I gave you a great compliment. [ Laughter ] 167 00:06:00,594 --> 00:06:03,830 So, we all have experience in top financial firms. 168 00:06:03,830 --> 00:06:06,633 I worked in the private equity world before this, 169 00:06:06,633 --> 00:06:08,268 and then I went into the consulting world 170 00:06:08,268 --> 00:06:10,837 and then a hedge fund, so I was at a $20 billion hedge fund. 171 00:06:10,837 --> 00:06:12,372 Amazing. And so it really inspired me 172 00:06:12,372 --> 00:06:14,341 to go into this space and build for this. 173 00:06:14,341 --> 00:06:17,043 So, I actually worked at a large investment bank 174 00:06:17,043 --> 00:06:18,845 where I actually partnered with a lot of hedge funds, 175 00:06:18,845 --> 00:06:20,480 working on the prime brokerage side. 176 00:06:20,480 --> 00:06:22,382 And Victoria and I are actually twin sisters, 177 00:06:22,382 --> 00:06:23,750 if you can't tell. 178 00:06:23,750 --> 00:06:25,118 I'm the third sister. 179 00:06:25,118 --> 00:06:26,653 [ Laughter ] 180 00:06:26,653 --> 00:06:28,355 So, I guess my background is very similar to Lucy's, 181 00:06:28,355 --> 00:06:29,756 but I come from an engineering background. 182 00:06:29,756 --> 00:06:31,157 It's a very male-dominated field. 183 00:06:31,157 --> 00:06:33,727 But the product end -- engineering at various companies 184 00:06:33,727 --> 00:06:36,196 from small to, like, really large tech companies. 185 00:06:36,196 --> 00:06:37,898 You three are so inspiring. 186 00:06:37,898 --> 00:06:39,432 -Thank you so much! -Thank you. -Thank you. 187 00:06:39,432 --> 00:06:41,401 I'll tell you what's really impressive is your valuation. 188 00:06:41,401 --> 00:06:43,770 Why do you think you're worth $10 million? 189 00:06:43,770 --> 00:06:45,906 Yeah, it's a great question. Well, we have the traction -- 190 00:06:45,906 --> 00:06:47,574 O'Leary: You bet it's a great question. [ Laughter ] 191 00:06:47,574 --> 00:06:49,843 We have the traction in such short, little time 192 00:06:49,843 --> 00:06:51,444 with limited resources. 193 00:06:51,444 --> 00:06:54,414 And we have scaled our AUM up to 85 million 194 00:06:54,414 --> 00:06:56,917 in just a few months, so we know the potential here. 195 00:06:56,917 --> 00:06:58,251 We can get billions of dollars. O'Leary: But it's not really your AUM. 196 00:06:58,251 --> 00:07:00,887 It's sitting on the brokerage account. 197 00:07:00,887 --> 00:07:03,990 Assets connected, yes, but assets connected to Parrot -- Lubetzky: But also, Nikki, when you say assets connected -- 198 00:07:03,990 --> 00:07:05,592 I understand why it's important. [ Chuckles ] 199 00:07:05,592 --> 00:07:06,893 But in the real world, 200 00:07:06,893 --> 00:07:08,862 that doesn't really justify that valuation. 201 00:07:08,862 --> 00:07:10,397 What are your sales? 202 00:07:10,397 --> 00:07:11,932 So we were founded just a few months ago, 203 00:07:11,932 --> 00:07:13,400 about five to six months ago. Really? 204 00:07:13,400 --> 00:07:14,768 Yeah, we launched. Congratulations. 205 00:07:14,768 --> 00:07:16,169 We were in development for quite a bit, 206 00:07:16,169 --> 00:07:17,437 so a year before that. 207 00:07:17,437 --> 00:07:19,673 Actually, we were freemium model till now, 208 00:07:19,673 --> 00:07:22,008 and we were kind of ramping up our user base. 209 00:07:22,008 --> 00:07:24,811 And now we just switched on pricing not too long ago. 210 00:07:24,811 --> 00:07:27,047 Okay, so you really don't know your sales yet. 211 00:07:27,047 --> 00:07:29,482 But we do have projections, and so we're on track... What's your projections? 212 00:07:29,482 --> 00:07:31,851 ...for $1 million in the next 12 months. 213 00:07:31,851 --> 00:07:35,255 You know, Warren Buffett, many, many years ago, made a bet 214 00:07:35,255 --> 00:07:38,425 that if you invested in an index, 215 00:07:38,425 --> 00:07:41,461 you would outperform all these hedge fund managers 216 00:07:41,461 --> 00:07:45,098 and nobody was able to actually beat a standard passive index. 217 00:07:45,098 --> 00:07:46,933 [ Chuckles ] So why are you 218 00:07:46,933 --> 00:07:48,735 so confident that this is a better opportunity 219 00:07:48,735 --> 00:07:50,270 than just buying an index? 220 00:07:50,270 --> 00:07:53,573 So these funds kind of offer diversification, risk hedging. 221 00:07:53,573 --> 00:07:54,874 And then in addition to that, 222 00:07:54,874 --> 00:07:56,476 there's just different ranges of investments 223 00:07:56,476 --> 00:07:57,777 that they can focus on. 224 00:07:57,777 --> 00:08:00,313 So I think it gives people more rat-- personality 225 00:08:00,313 --> 00:08:01,781 into their investments. 226 00:08:01,781 --> 00:08:04,851 I don't think people are interested solely for returns. 227 00:08:04,851 --> 00:08:06,086 I think people are interested 228 00:08:06,086 --> 00:08:08,021 because they see politicians making trades. 229 00:08:08,021 --> 00:08:09,723 They see hedge funds making trades. 230 00:08:09,723 --> 00:08:11,424 Exactly. People understand the volatility 231 00:08:11,424 --> 00:08:13,626 and they don't trust financial advisors. 232 00:08:13,626 --> 00:08:15,662 Who invested and how much have you raised? 233 00:08:15,662 --> 00:08:19,065 So we've raised, to date, about $2.5 million. 234 00:08:19,065 --> 00:08:20,166 -Whoo. -Scott: Wow. 235 00:08:20,166 --> 00:08:21,468 Top Silicon Valley investors. 236 00:08:21,468 --> 00:08:23,770 And is it a SAFE note? It is a SAFE note. 237 00:08:23,770 --> 00:08:25,105 And what's the cap on the SAFE note? 238 00:08:25,105 --> 00:08:27,273 $10 million. Guys, I'm ready for an offer. 239 00:08:28,108 --> 00:08:29,676 -Scott: Wow. -So am I. 240 00:08:29,676 --> 00:08:31,044 -Lubetzky: Really? -Scott: Okay. Let's go. 241 00:08:31,044 --> 00:08:35,448 ♪♪ 242 00:08:41,388 --> 00:08:43,556 Narrator: All Sharks are still in, 243 00:08:43,556 --> 00:08:45,625 and Rashaun and Lori are interested 244 00:08:45,625 --> 00:08:49,496 in Victoria, Nikki, and Lucy's financial tech company, Parrot. 245 00:08:49,496 --> 00:08:51,097 Uh, Lori, you want to come in with me on this one? 246 00:08:51,097 --> 00:08:52,766 I do. I really do. Okay, all right, all right. 247 00:08:52,766 --> 00:08:58,438 He knows I want to come in because I love ladies like you. 248 00:08:58,438 --> 00:09:00,807 And I just want to be there to be the accelerant 249 00:09:00,807 --> 00:09:02,008 along with him. Thank you. 250 00:09:02,008 --> 00:09:03,576 So, yes, I'm in. 251 00:09:03,576 --> 00:09:05,111 Thank you. So I know this space like the back of my hand, 252 00:09:05,111 --> 00:09:06,780 and you guys solved the magic equation. 253 00:09:06,780 --> 00:09:08,815 You've been able to find virality 254 00:09:08,815 --> 00:09:11,284 and adding users not just by spending money on advertising. 255 00:09:11,284 --> 00:09:12,752 -Right. -Yes. -Yep. 256 00:09:12,752 --> 00:09:15,055 Now, the first thing you need to understand is 257 00:09:15,055 --> 00:09:16,389 seed round valuations, 258 00:09:16,389 --> 00:09:18,925 which is what you raised, don't exist. 259 00:09:18,925 --> 00:09:20,927 So I know you have this $10 million thing in your head. 260 00:09:20,927 --> 00:09:22,896 It's made up. That's not your valuation. 261 00:09:22,896 --> 00:09:25,365 That's the cap that it will convert to 262 00:09:25,365 --> 00:09:27,500 at some point in the future when folks like Lori and I 263 00:09:27,500 --> 00:09:29,335 help you get to the promised land. 264 00:09:29,335 --> 00:09:30,937 So you don't have a valuation now. 265 00:09:30,937 --> 00:09:33,206 We want to offer you a valuation. 266 00:09:33,206 --> 00:09:36,176 So for Lori and I, we'll split $250,000, 267 00:09:36,176 --> 00:09:37,977 but instead of 2.5%, 268 00:09:37,977 --> 00:09:39,846 which is a $10 million valuation, 269 00:09:39,846 --> 00:09:42,348 we'll do $250,000 for 10%, 270 00:09:42,348 --> 00:09:45,685 which is a $2.5 million valuation. 271 00:09:45,685 --> 00:09:47,387 And I'll share all the little tricks of the trade 272 00:09:47,387 --> 00:09:48,788 that I learned over 12 years... Greiner: Which he knows. 273 00:09:48,788 --> 00:09:51,391 ...when backing 10 of these fintech companies 274 00:09:51,391 --> 00:09:52,926 who did the same thing that you guys are trying to do. 275 00:09:52,926 --> 00:09:54,127 This is your Shark. Varanasi: Thank you so much. 276 00:09:54,127 --> 00:09:55,428 I want to throw something out there 277 00:09:55,428 --> 00:09:57,230 just to make it more interesting. 278 00:09:57,230 --> 00:10:00,567 No, no, don't. Go away. O'Leary: So, I think there's a reason 279 00:10:00,567 --> 00:10:02,469 you put Mr. Wonderful in the presentation. 280 00:10:02,469 --> 00:10:04,838 I am the financial services guy. 281 00:10:04,838 --> 00:10:08,141 The whole idea is how much share can you get and drive users, 282 00:10:08,141 --> 00:10:11,077 but never let a greedy pig steal equity. [ Laughs ] 283 00:10:11,077 --> 00:10:13,379 So I'm saying I'll do the deal. So...turn away from him. 284 00:10:13,379 --> 00:10:16,583 I'll do the deal. I'll make it 7%. Around 7%. 285 00:10:18,852 --> 00:10:20,753 What do you want to do? So, Lori and Rashaun, 286 00:10:20,753 --> 00:10:22,188 thank you so much for your offer. 287 00:10:22,188 --> 00:10:25,425 Will you guys go in at 250K for 4%? 288 00:10:28,394 --> 00:10:31,564 How about we go 250K... 289 00:10:31,564 --> 00:10:33,266 for 7%? 290 00:10:33,266 --> 00:10:38,238 ♪♪ 291 00:10:38,238 --> 00:10:42,775 Can you do 250K for 4% and 2% advisory shares, 292 00:10:42,775 --> 00:10:44,444 which brings it to 6%? O'Leary: I'll do that deal. 293 00:10:44,444 --> 00:10:46,312 I'll do that deal. Um, she wasn't talking to you. 294 00:10:46,312 --> 00:10:48,414 I'm saying, you want competition? She was talking to us. 295 00:10:48,414 --> 00:10:49,716 I'm happy to compete. 250K. You want to do it? 296 00:10:52,218 --> 00:10:53,820 Yeah. We'll do it! 297 00:10:53,820 --> 00:10:55,355 We'll do it. [ Cheering ] 298 00:10:55,355 --> 00:10:57,056 Scott: Amazing. There you go. 299 00:10:57,056 --> 00:10:58,558 [ Women squealing ] 300 00:10:58,558 --> 00:11:00,860 Congratulations, you guys! 301 00:11:00,860 --> 00:11:02,395 [ Women squealing ] 302 00:11:02,395 --> 00:11:04,330 -Thank you! -Thank you so much! 303 00:11:04,330 --> 00:11:05,732 -Super excited to work together. -Great job. 304 00:11:05,732 --> 00:11:07,167 -Thank you so much. -Thank you! 305 00:11:07,167 --> 00:11:08,835 Dream team. Congratulations, you guys. 306 00:11:08,835 --> 00:11:10,436 Thank you! Bye! 307 00:11:10,436 --> 00:11:11,671 Oh, my God! 308 00:11:11,671 --> 00:11:14,774 [ Women squealing ] 309 00:11:14,774 --> 00:11:17,510 Yeah, we got two Sharks. We got Lori and Rashaun, 310 00:11:17,510 --> 00:11:18,711 and they're the perfect fit for us. 311 00:11:18,711 --> 00:11:19,913 Yeah, I think they're great. 312 00:11:19,913 --> 00:11:20,980 They're so aligned with what we want to do, 313 00:11:20,980 --> 00:11:22,615 and they know what we want to do. 314 00:11:22,615 --> 00:11:24,017 Yeah. And they see the vision, and they see what we believe. 315 00:11:24,017 --> 00:11:26,619 They believe in us, and we're so excited! Yes! 316 00:11:26,619 --> 00:11:29,022 Together: We got a deal! 317 00:11:31,424 --> 00:11:34,160 Narrator: Earlier this season, Ben Rosenbaum and Pete Davidson 318 00:11:34,160 --> 00:11:35,562 made a deal with Kendra Scott 319 00:11:35,562 --> 00:11:37,764 for their sock company, doublesoul. 320 00:11:37,764 --> 00:11:39,132 Do you mind if we make a quick call 321 00:11:39,132 --> 00:11:40,466 to my wife and co-founder? 322 00:11:40,466 --> 00:11:42,602 She's the CEO. I'm gonna come talk to her. 323 00:11:42,602 --> 00:11:44,370 What do you think? Are we good? 324 00:11:44,370 --> 00:11:45,605 Allison: Let's do it. All right. 325 00:11:45,605 --> 00:11:46,973 We're good. We're good. 326 00:11:46,973 --> 00:11:49,008 Narrator: Let's see what they're up to now. 327 00:11:49,008 --> 00:11:50,610 The biggest change to our business 328 00:11:50,610 --> 00:11:51,744 is our son, Spencer, 329 00:11:51,744 --> 00:11:53,613 who was born just a couple months ago. 330 00:11:53,613 --> 00:11:55,582 He's the reason I wasn't able to pitch to the Sharks. 331 00:11:55,582 --> 00:11:56,950 I was there to close the deal. 332 00:11:56,950 --> 00:11:58,418 I got a call from Kendra, 333 00:11:58,418 --> 00:12:00,453 and she was the Shark I was really hoping to hear from. 334 00:12:00,453 --> 00:12:01,888 Ben: After "Shark Tank," 335 00:12:01,888 --> 00:12:03,623 we experienced our biggest surge in orders ever. 336 00:12:03,623 --> 00:12:06,292 Within just an hour, we sold out of all of our Amazon inventory, 337 00:12:06,292 --> 00:12:07,994 and over the course of just a week, 338 00:12:07,994 --> 00:12:10,129 we sold over half a million dollars in sales. 339 00:12:10,129 --> 00:12:12,332 Before Ben and Pete pitched on "Shark Tank," 340 00:12:12,332 --> 00:12:16,302 we were doing about $2.3 million in revenue for the entire year, 341 00:12:16,302 --> 00:12:18,471 and in just two months after "Shark Tank," 342 00:12:18,471 --> 00:12:21,741 we've already done over $2 million in sales. 343 00:12:21,741 --> 00:12:26,045 The Kendra Scott socks that we did sold out immediately! I know! I can't even get one. 344 00:12:26,045 --> 00:12:28,214 Ben: An incredible testament to Kendra as a Shark 345 00:12:28,214 --> 00:12:31,017 is we got to work right away designing a collaboration 346 00:12:31,017 --> 00:12:33,086 that was really inspired by her jewelry designs, 347 00:12:33,086 --> 00:12:34,687 both for one of her brands, Yellow Rose, 348 00:12:34,687 --> 00:12:36,122 and her other brand, Kendra Scott. 349 00:12:36,122 --> 00:12:38,391 And those are already available in-store and online. 350 00:12:38,391 --> 00:12:40,627 Not only has Kendra been able to open up doors 351 00:12:40,627 --> 00:12:42,629 to some of the biggest retailers in the country, 352 00:12:42,629 --> 00:12:43,896 but she's given us access 353 00:12:43,896 --> 00:12:45,498 to her in-house merchandising team, 354 00:12:45,498 --> 00:12:47,333 who's been helping us build the infrastructure we need 355 00:12:47,333 --> 00:12:49,669 to just skyrocket and fly off the shelves. 356 00:12:49,669 --> 00:12:51,170 Selling to other retailers -- 357 00:12:51,170 --> 00:12:53,006 I mean, that's really how I built my business and brand, 358 00:12:53,006 --> 00:12:55,375 where people can touch, can feel it in brick and mortar, 359 00:12:55,375 --> 00:12:58,444 and us starting to turn that on is so exciting. 360 00:12:58,444 --> 00:13:00,513 I'm proud of you guys. This was a great idea. 361 00:13:00,513 --> 00:13:03,583 Allison: With our baby at home and Pete also having a newborn, 362 00:13:03,583 --> 00:13:05,652 we knew what our next launch needed to be. 363 00:13:05,652 --> 00:13:07,020 We've been, for years, getting emails 364 00:13:07,020 --> 00:13:08,621 from frustrated customers -- 365 00:13:08,621 --> 00:13:10,957 "Why don't we have these in children's sizes, toddler, baby? 366 00:13:10,957 --> 00:13:12,859 Your socks actually stay on your foot. 367 00:13:12,859 --> 00:13:14,427 We're using earth-safe dyes. 368 00:13:14,427 --> 00:13:16,129 We need a brand that we can trust," 369 00:13:16,129 --> 00:13:17,830 and that's why we're launching baby socks. 370 00:13:17,830 --> 00:13:19,165 It's gonna be really fun 371 00:13:19,165 --> 00:13:21,534 to have a baby soul sock playdate together. 372 00:13:21,534 --> 00:13:23,536 There is so much more in store for us. 373 00:13:23,536 --> 00:13:26,306 We have an amazing collection coming out with Von Dutch. 374 00:13:26,306 --> 00:13:28,107 We're gonna eventually go into underwear, 375 00:13:28,107 --> 00:13:30,043 to sports bras, to loungewear, 376 00:13:30,043 --> 00:13:32,612 and you'll be able to find our product everywhere. 377 00:13:32,612 --> 00:13:35,381 The projections this year were insane. 378 00:13:35,381 --> 00:13:37,450 When we take a look back at what we've built 379 00:13:37,450 --> 00:13:40,119 and we started packing socks in his mother's basement, 380 00:13:40,119 --> 00:13:42,889 and then we ended up on "Shark Tank" with Pete Davidson, 381 00:13:42,889 --> 00:13:45,325 it's proof of concept to every single person out there 382 00:13:45,325 --> 00:13:46,626 you could get there. 383 00:13:46,626 --> 00:13:47,860 It's a matter of trying. 384 00:13:47,860 --> 00:13:49,696 Ben: Getting on "Shark Tank" was the best way 385 00:13:49,696 --> 00:13:51,264 for us to bring this product to millions of people. 386 00:13:51,264 --> 00:13:52,598 The sky's really the limit for us, 387 00:13:52,598 --> 00:13:54,600 and ultimately, we see doublesoul being 388 00:13:54,600 --> 00:13:56,536 the next billion-dollar brand to come out of "Shark Tank." 389 00:13:56,536 --> 00:14:00,940 ♪♪ 390 00:14:08,715 --> 00:14:11,284 ♪♪ 391 00:14:11,284 --> 00:14:13,252 Narrator: Next up is a guilt-free way 392 00:14:13,252 --> 00:14:15,488 to satisfy your sweet tooth. 393 00:14:15,488 --> 00:14:24,030 ♪♪ 394 00:14:24,030 --> 00:14:25,998 Hi, Sharks! I'm Santiago Arroyo. 395 00:14:25,998 --> 00:14:28,034 And I'm Diego Arroyo. 396 00:14:28,034 --> 00:14:30,603 We're brothers, and today we're seeking 397 00:14:30,603 --> 00:14:32,705 for $500,000... Whoa! 398 00:14:32,705 --> 00:14:34,841 ...for 5% equity in our company 399 00:14:34,841 --> 00:14:36,209 Don'tWorry snacks. 400 00:14:37,477 --> 00:14:38,845 Sharks, let's be real. 401 00:14:38,845 --> 00:14:40,847 How many times have you tried 402 00:14:40,847 --> 00:14:43,583 a healthy snack that tastes awful, 403 00:14:43,583 --> 00:14:46,452 or a delicious snack that is loaded with sugar, 404 00:14:46,452 --> 00:14:48,121 fat, and calories? 405 00:14:48,121 --> 00:14:49,222 Every day. Most of the snacks 406 00:14:49,222 --> 00:14:50,923 makes you choose between feeling good 407 00:14:50,923 --> 00:14:52,291 or tasting good. 408 00:14:52,291 --> 00:14:54,627 We set out to achieve the impossible -- 409 00:14:54,627 --> 00:14:56,629 a snack with the lowest calorie 410 00:14:56,629 --> 00:14:58,297 and with the highest indulgence, 411 00:14:58,297 --> 00:15:00,867 with absolutely no sacrifice in flavor. 412 00:15:00,867 --> 00:15:02,935 Introducing Don'tWorry snacks. 413 00:15:02,935 --> 00:15:06,172 Our melt-in-your-mouth meringue cookie are so airy, 414 00:15:06,172 --> 00:15:08,307 so luscious that you won't believe 415 00:15:08,307 --> 00:15:11,511 it only has as little as one calorie per piece. 416 00:15:11,511 --> 00:15:12,678 No! Scott: One?! 417 00:15:12,678 --> 00:15:14,180 Get out! One calorie per piece! 418 00:15:14,180 --> 00:15:15,681 Stop the madness. 419 00:15:15,681 --> 00:15:18,217 Santiago: And our crispy quinoa bites -- 420 00:15:18,217 --> 00:15:20,853 they are bold, they are craveable 421 00:15:20,853 --> 00:15:22,188 and perfectly poppable, 422 00:15:22,188 --> 00:15:24,891 like a crunchy little fiesta with zero sugar, 423 00:15:24,891 --> 00:15:26,926 low carb, and gluten free! 424 00:15:26,926 --> 00:15:29,662 Together: So, Sharks, who's ready to turn 425 00:15:29,662 --> 00:15:31,764 Don'tWorry from the American dream 426 00:15:31,764 --> 00:15:34,133 into the next American obsession? 427 00:15:34,133 --> 00:15:36,068 I don't believe it. I want to taste it. 428 00:15:36,068 --> 00:15:38,671 For the first time in seven years that I'm here, 429 00:15:38,671 --> 00:15:40,673 you're finally speaking English properly. 430 00:15:40,673 --> 00:15:42,208 Now you guys know what it feels like. 431 00:15:42,208 --> 00:15:43,209 [ Laughter ] 432 00:15:43,209 --> 00:15:44,977 Okay, this is one calorie? 433 00:15:44,977 --> 00:15:46,412 No, that's four calories. No, that's four calories 434 00:15:46,412 --> 00:15:48,347 because it's filled with chocolate. 435 00:15:48,347 --> 00:15:50,049 But see, I could eat a whole tub! [ Laughs ] 436 00:15:50,049 --> 00:15:51,651 Oh, my God. 437 00:15:51,651 --> 00:15:53,019 I just want to speak to this 438 00:15:53,019 --> 00:15:55,054 because I am a meringue lover. Wow! 439 00:15:55,054 --> 00:15:56,255 Okay. 440 00:15:56,255 --> 00:15:58,090 I love that you make it with allulose. 441 00:15:58,090 --> 00:15:59,592 That for me is like, ding, ding, ding! 442 00:15:59,592 --> 00:16:00,860 Home run. 443 00:16:00,860 --> 00:16:01,994 O'Leary: So there's no cane sugar in here? 444 00:16:01,994 --> 00:16:03,463 No cane sugar. Wow! 445 00:16:03,463 --> 00:16:06,466 Which is phenomenal. What's your background? 446 00:16:06,466 --> 00:16:08,634 We always loved sweets. 447 00:16:08,634 --> 00:16:11,337 And when we realize when we get older, 448 00:16:11,337 --> 00:16:12,972 it was like... They don't love you back. 449 00:16:12,972 --> 00:16:14,474 No. ...they don't love you back! 450 00:16:14,474 --> 00:16:17,043 [ Laughs ] And we like to indulge. 451 00:16:17,043 --> 00:16:19,645 So we said, okay, we have to make something 452 00:16:19,645 --> 00:16:21,581 that really tastes delicious. 453 00:16:21,581 --> 00:16:23,416 And you are not worried about eating it. 454 00:16:23,416 --> 00:16:24,450 Right. 455 00:16:24,450 --> 00:16:26,152 And after two years, 456 00:16:26,152 --> 00:16:29,722 we knocked the door on H-E-B México in Monterrey. 457 00:16:29,722 --> 00:16:31,524 And they opened us the door. 458 00:16:31,524 --> 00:16:32,925 And what year was that? 459 00:16:32,925 --> 00:16:35,561 That was in 2012. 2012. 460 00:16:35,561 --> 00:16:37,563 Greiner: Oh, wow. So that's a long time ago. 461 00:16:37,563 --> 00:16:38,831 Okay. A long time ago. 462 00:16:38,831 --> 00:16:40,032 We have been doing this 463 00:16:40,032 --> 00:16:41,567 for 15 years. Okay. 464 00:16:41,567 --> 00:16:44,237 The product was very sensational in Mexico. 465 00:16:44,237 --> 00:16:46,639 And then we opened Costco and other... 466 00:16:46,639 --> 00:16:48,708 Wow. ...big retailers. 467 00:16:48,708 --> 00:16:49,876 -Walmart... -Greiner: In Mexico or... 468 00:16:49,876 --> 00:16:51,177 -Both: In Mexico. -In Mexico. Okay. 469 00:16:51,177 --> 00:16:53,513 Everything until this is Mexico. Mexico. 470 00:16:53,513 --> 00:16:55,481 Okay. And one thing 471 00:16:55,481 --> 00:16:56,849 that changed our life 472 00:16:56,849 --> 00:17:02,455 is we receive a call on 2020 from H-E-B US. 473 00:17:02,455 --> 00:17:05,023 And they told us, "I want to bring your product 474 00:17:05,023 --> 00:17:06,592 into the US!" 475 00:17:06,592 --> 00:17:08,761 And I went with Diego and I said, like, 476 00:17:08,761 --> 00:17:10,262 "Can you believe that?!" [ Laughter ] 477 00:17:10,262 --> 00:17:14,165 This is gonna be our American dream! 478 00:17:14,165 --> 00:17:15,300 We have to do it. 479 00:17:15,300 --> 00:17:16,602 Oh, I love this. 480 00:17:16,602 --> 00:17:18,271 We started on the retail. 481 00:17:18,271 --> 00:17:20,606 After that, we got viral on TikTok, 482 00:17:20,606 --> 00:17:22,241 and this explodes. 483 00:17:22,241 --> 00:17:23,376 What are your sales? 484 00:17:23,376 --> 00:17:25,744 2021, $1 million. 485 00:17:25,744 --> 00:17:28,781 2022, $1 million. 2023, $1 million. 486 00:17:28,781 --> 00:17:30,983 2024 we did $2 million. 487 00:17:30,983 --> 00:17:34,220 And up to now, we have done $2 million. 488 00:17:34,220 --> 00:17:35,588 -Wow. Good job! -Scott: Great! 489 00:17:35,588 --> 00:17:38,958 All right, guys, when you impute a $10 million valuation, 490 00:17:38,958 --> 00:17:40,593 that makes us like, 491 00:17:40,593 --> 00:17:41,994 what -- what do these guys think they're doing? 492 00:17:41,994 --> 00:17:43,229 They're pricing it like a rocket, 493 00:17:43,229 --> 00:17:44,363 but they're a motorcycle. 494 00:17:44,363 --> 00:17:48,234 The last 12 months sales is $3.3 million. 495 00:17:48,234 --> 00:17:52,071 In 2024, when you did $2 million, What was your net? 496 00:17:52,071 --> 00:17:53,973 It was 6% EBITDA. 497 00:17:53,973 --> 00:17:55,575 So what are you gonna do this year? 498 00:17:55,575 --> 00:17:57,877 Well, our objective is $7 million. 499 00:17:57,877 --> 00:18:00,012 How are you guys gonna do $7 million this year 500 00:18:00,012 --> 00:18:02,148 when you did $2 million last year? 501 00:18:02,148 --> 00:18:06,218 So right now we are currently doing $2 million in 5 months. 502 00:18:06,218 --> 00:18:10,189 That will take us to $5 million. But we have a positive trend. 503 00:18:10,189 --> 00:18:13,192 For you to get from the trajectory of $1 million, 504 00:18:13,192 --> 00:18:15,962 $1 million, $2 million to $7 million... 505 00:18:15,962 --> 00:18:17,496 For a 15-year-old company. ...you're gonna need to have 506 00:18:17,496 --> 00:18:19,999 recurring revenue and recurring miracles. 507 00:18:19,999 --> 00:18:22,902 I mean, it is a very aggressive projection. 508 00:18:22,902 --> 00:18:24,670 He's the king of healthy snacks. 509 00:18:24,670 --> 00:18:26,505 The king. It's like Mike Tyson said, 510 00:18:26,505 --> 00:18:30,676 "Everybody has a plan till they get punched in the face, right?" 511 00:18:30,676 --> 00:18:33,479 Yeah, but this year, definitely we're gonna reach $5 million. 512 00:18:33,479 --> 00:18:35,881 Yeah, but you're not valued at net sales. 513 00:18:35,881 --> 00:18:38,317 That's for hyper-growth companies 514 00:18:38,317 --> 00:18:40,086 in the venture capital space. 515 00:18:40,086 --> 00:18:42,288 You're valued as a private equity investment, 516 00:18:42,288 --> 00:18:44,256 which is a multiple of EBITDA, 517 00:18:44,256 --> 00:18:45,858 3 to 5 times EBITDA. Profit. 518 00:18:45,858 --> 00:18:47,460 KIND did get those valuations, 519 00:18:47,460 --> 00:18:51,130 but we had 25% EBITDA margins. 520 00:18:51,130 --> 00:18:53,232 You have a 6% EBITDA margin. Right. 521 00:18:53,232 --> 00:18:56,969 In the retail is 50 -- gross margin, 50%. 522 00:18:56,969 --> 00:18:59,972 On e-commerce is 72%. 523 00:18:59,972 --> 00:19:02,308 What percentage of your sales are e-commerce? 524 00:19:02,308 --> 00:19:04,410 Direct to consumer is 90%. 525 00:19:04,410 --> 00:19:06,412 So what happened when you went into H-E-B -- 526 00:19:06,412 --> 00:19:08,481 When they said, "We're gonna bring you to America, 527 00:19:08,481 --> 00:19:11,484 land of opportunity," what happened? 528 00:19:11,484 --> 00:19:13,753 We tried to open doors in the other retailers, 529 00:19:13,753 --> 00:19:16,389 but it has been so difficult for us... Why? 530 00:19:16,389 --> 00:19:18,791 ...to get in front of the right buyers. 531 00:19:18,791 --> 00:19:22,294 There are too many brokers, too many people promising you 532 00:19:22,294 --> 00:19:24,764 that they will get you in front of the buyers. Limited shelf space. 533 00:19:24,764 --> 00:19:27,166 So what are the stores that you are in? 534 00:19:27,166 --> 00:19:28,934 We are in H-E-B. 535 00:19:28,934 --> 00:19:31,570 H-E-B. It's out of Texas. H-E-B. Okay. 536 00:19:31,570 --> 00:19:33,205 The rest is online. 537 00:19:33,205 --> 00:19:35,675 So, guys, this is the value pen. 538 00:19:35,675 --> 00:19:36,842 It smells value. 539 00:19:36,842 --> 00:19:38,544 I just have to hold it to my head 540 00:19:38,544 --> 00:19:40,746 and it tells me exactly what you're worth. Oh, Lord. Here we go. 541 00:19:40,746 --> 00:19:42,648 You're worth between $1.5 and $2 million. 542 00:19:42,648 --> 00:19:43,883 Facts. 543 00:19:43,883 --> 00:19:46,585 It's tough because if you're only worth 544 00:19:46,585 --> 00:19:47,853 a million and a half, 545 00:19:47,853 --> 00:19:49,021 I gotta get a third of the business 546 00:19:49,021 --> 00:19:51,223 to even just make it realistic. 547 00:19:51,223 --> 00:19:52,558 33%. 548 00:19:52,558 --> 00:19:54,460 I don't want to fight that out with you, 549 00:19:54,460 --> 00:19:56,429 so, um, I'm out. 550 00:19:56,429 --> 00:20:01,333 You know, when you came in, you had me at hello... 551 00:20:01,333 --> 00:20:04,270 [ Laughs ] ...and then you lost me with almost everything else. 552 00:20:04,270 --> 00:20:07,673 Oh. And for that reason, I'm out. 553 00:20:07,673 --> 00:20:11,110 Well, for me, I think you guys should be valuing this business 554 00:20:11,110 --> 00:20:13,012 as a multiple of EBITDA 555 00:20:13,012 --> 00:20:14,747 because you're not growing at the scale -- 556 00:20:14,747 --> 00:20:16,048 that venture-backed company scale. 557 00:20:16,048 --> 00:20:17,116 So that's number one. 558 00:20:17,116 --> 00:20:19,085 Number two, I'm a numbers guy, 559 00:20:19,085 --> 00:20:20,453 and the numbers seem a little shaky to me. 560 00:20:20,453 --> 00:20:21,587 It's just not adding up. 561 00:20:21,587 --> 00:20:22,855 Unfortunately, guys, I'm out. 562 00:20:22,855 --> 00:20:24,023 I'm sorry. 563 00:20:25,391 --> 00:20:27,793 I think your valuation -- I agree with the guys over here. 564 00:20:27,793 --> 00:20:29,829 I mean, it's -- it's too inflated. 565 00:20:29,829 --> 00:20:31,464 There's no way you can base your valuation 566 00:20:31,464 --> 00:20:32,732 on top-line revenue. 567 00:20:32,732 --> 00:20:34,800 I love this product. I will be a customer. 568 00:20:34,800 --> 00:20:37,603 But I cannot be an investor for that reason. 569 00:20:37,603 --> 00:20:39,405 So I'm out. 570 00:20:39,405 --> 00:20:41,440 -O'Leary: Lori? -Am I the only one left? 571 00:20:41,440 --> 00:20:43,008 You are the only one left. 572 00:20:43,008 --> 00:20:44,543 Give them the money, Lori. 573 00:20:44,543 --> 00:20:45,811 I have a problem. 574 00:20:46,846 --> 00:20:50,716 Listen, I love you guys, and I love meringues. 575 00:20:50,716 --> 00:20:52,418 I love the name Don'tWorry, 576 00:20:52,418 --> 00:20:55,654 and I think that could be great for a full brand of... 577 00:20:55,654 --> 00:20:58,591 Then don't worry and give them a deal! ...low-calorie -- low-calorie -- 578 00:20:58,591 --> 00:21:02,061 Here's my problem. I hate your valuation. 579 00:21:02,061 --> 00:21:03,696 Lori, remember what the pen said. 580 00:21:03,696 --> 00:21:05,598 $1.5 million. That's what it's worth. 581 00:21:05,598 --> 00:21:09,101 The pen says $1.5 million is what you're worth. 582 00:21:09,101 --> 00:21:12,838 So... So that would be $500,000. 583 00:21:12,838 --> 00:21:14,039 For 33.3%. 584 00:21:14,039 --> 00:21:17,209 For 33.3%. What say you? 585 00:21:17,209 --> 00:21:23,883 What about -- What about doing the $500,000 for 10%? 586 00:21:23,883 --> 00:21:26,118 No. I understand. You're on the carpet. 587 00:21:26,118 --> 00:21:27,219 It's difficult. 588 00:21:27,219 --> 00:21:29,688 Now, I'm giving you a flier, right? 589 00:21:29,688 --> 00:21:31,423 I believe in you. I like the product. 590 00:21:31,423 --> 00:21:32,958 I want to be a third partner. 591 00:21:34,560 --> 00:21:36,629 We don't want it to be just meringues. Guys, what do you want to do? 592 00:21:36,629 --> 00:21:38,931 We want it to be a whole line of products. It's a ton of money. 593 00:21:38,931 --> 00:21:40,499 It is a ton of money on my part. 594 00:21:40,499 --> 00:21:41,600 Scott: It's gonna be a ton of work for her. 595 00:21:41,600 --> 00:21:42,968 It's very risky for me. 596 00:21:42,968 --> 00:21:49,475 ♪♪ 597 00:21:49,475 --> 00:21:51,544 For us, part of the American Dream 598 00:21:51,544 --> 00:21:53,746 has been people trusting in us, 599 00:21:53,746 --> 00:21:55,481 believing in our brand, 600 00:21:55,481 --> 00:21:58,117 and helping us out to achieve our dream. 601 00:21:58,117 --> 00:21:59,819 So we want to take the offer. Oh! 602 00:21:59,819 --> 00:22:01,921 And thank you. Thank you very much. 603 00:22:01,921 --> 00:22:03,956 Williams: Great job. Scott: Oh, my goodness. I love that! 604 00:22:03,956 --> 00:22:05,791 You made me start to cry. 605 00:22:05,791 --> 00:22:06,992 All right, good job, guys. 606 00:22:06,992 --> 00:22:09,261 Oh, my God. Thank you. 607 00:22:09,261 --> 00:22:11,897 Literally, you made me start to cry saying that. 608 00:22:11,897 --> 00:22:13,499 I was like, "Oh, my God!" Thank you. 609 00:22:13,499 --> 00:22:15,134 Thank you for your trust. 610 00:22:15,134 --> 00:22:17,536 I trust you, I believe in you. Thank you. 611 00:22:17,536 --> 00:22:19,338 And it's gonna be phenomenal. I know. 612 00:22:19,338 --> 00:22:20,973 Definitely. Thank you. Scott: How exciting! 613 00:22:20,973 --> 00:22:22,408 -Lubetzky: Congratulations. -Santiago: Thank you! 614 00:22:22,408 --> 00:22:24,109 -Williams: Great job. -Lubetzky: Felicidades. 615 00:22:24,109 --> 00:22:25,144 Greiner: Nice to meet you. 616 00:22:25,144 --> 00:22:27,780 ♪♪ 617 00:22:27,780 --> 00:22:30,282 Santiago: Lori will help us to get all over the US 618 00:22:30,282 --> 00:22:31,650 and make our dream... 619 00:22:31,650 --> 00:22:32,985 Together: Come true. 620 00:22:32,985 --> 00:22:35,554 And the most important thing -- she trusts... 621 00:22:35,554 --> 00:22:36,789 Together: In us. 622 00:22:36,789 --> 00:22:38,891 ...in our brand, in our company. 623 00:22:38,891 --> 00:22:41,026 And we will make it happen! 624 00:22:41,026 --> 00:22:43,996 ♪♪ 625 00:22:49,168 --> 00:22:51,904 ♪♪ 626 00:22:51,904 --> 00:22:53,606 Narrator: Next up is a solution 627 00:22:53,606 --> 00:22:55,741 to help lighten the load while traveling. 628 00:22:55,741 --> 00:23:05,651 ♪♪ 629 00:23:05,651 --> 00:23:06,852 Hi, Sharks. 630 00:23:06,852 --> 00:23:08,354 I'm Lauren from Salt Lake City, 631 00:23:08,354 --> 00:23:11,657 and I am here seeking $150,000 632 00:23:11,657 --> 00:23:14,727 for 15% equity in my company Packd. 633 00:23:14,727 --> 00:23:17,396 Okay, Sharks, let me paint you a familiar picture. 634 00:23:17,396 --> 00:23:20,299 You are wrapping up the vacation of a lifetime. 635 00:23:20,299 --> 00:23:21,901 You've hiked, you've lounged, 636 00:23:21,901 --> 00:23:23,869 you shopped like no one's watching. 637 00:23:23,869 --> 00:23:25,170 And now... 638 00:23:26,372 --> 00:23:28,340 ...it's time to repack. 639 00:23:28,340 --> 00:23:29,541 Your suitcase... 640 00:23:30,843 --> 00:23:32,378 ...exploding. [ Laughter ] 641 00:23:32,378 --> 00:23:34,914 Your dirty laundry is taking up half the space. 642 00:23:34,914 --> 00:23:36,215 And... True. 643 00:23:36,215 --> 00:23:38,517 ...that adorable souvenir you had to have... 644 00:23:38,517 --> 00:23:40,152 [ Laughter ] ...to commemorate 645 00:23:40,152 --> 00:23:42,588 the most important trip of your life 646 00:23:42,588 --> 00:23:44,690 is now a baggage fee liability. 647 00:23:44,690 --> 00:23:47,426 It's time to make some serious sacrifices. 648 00:23:47,426 --> 00:23:49,094 Or not. 649 00:23:49,094 --> 00:23:51,397 Introducing...Packd. 650 00:23:51,397 --> 00:23:54,233 Packd bags are prepaid, pre-labeled, 651 00:23:54,233 --> 00:23:56,969 and eco-friendly mailer bags 652 00:23:56,969 --> 00:23:59,905 that let you take up to 10 pounds 653 00:23:59,905 --> 00:24:03,342 of your vacation clothing out of your suitcase 654 00:24:03,342 --> 00:24:05,511 and ship it directly to your doorstep 655 00:24:05,511 --> 00:24:07,346 from anywhere in the US. 656 00:24:07,346 --> 00:24:10,182 No need to hunt down a post office, 657 00:24:10,182 --> 00:24:12,418 buy a second piece of luggage, 658 00:24:12,418 --> 00:24:15,387 or sit on your suitcase while zipping it up again. 659 00:24:15,387 --> 00:24:17,890 Stuff it full, seal it... 660 00:24:19,158 --> 00:24:22,761 ...and drop it off at the front desk of your hotel 661 00:24:22,761 --> 00:24:24,229 or schedule a free pickup. 662 00:24:24,229 --> 00:24:25,698 It's that simple. 663 00:24:25,698 --> 00:24:29,168 You get more space, less stress, 664 00:24:29,168 --> 00:24:31,937 and maybe even one less suitcase to lug through TSA. 665 00:24:31,937 --> 00:24:33,973 And your stuff arrives at your doorstep 666 00:24:33,973 --> 00:24:35,474 in three to five days. [ Chuckles ] 667 00:24:35,474 --> 00:24:37,977 So, Sharks, who's ready to help travelers 668 00:24:37,977 --> 00:24:40,846 ditch the dirty clothes and lighten up with Packd? 669 00:24:40,846 --> 00:24:41,847 Williams: Wow. Greiner: Nice. 670 00:24:41,847 --> 00:24:43,382 I need that tomorrow. 671 00:24:43,382 --> 00:24:44,516 O'Leary: So, Lauren, I do this a lot. [ Laughter ] 672 00:24:44,516 --> 00:24:45,951 Scott: I can relate to that suitcase. 673 00:24:45,951 --> 00:24:47,553 Call: Oh, my gosh, yes. Like, all too well. 674 00:24:47,553 --> 00:24:49,455 It's like, boom! O'Leary: I'm just wondering, 675 00:24:49,455 --> 00:24:52,825 I already do this with stuff from hotels 676 00:24:52,825 --> 00:24:55,294 using two giant delivery services. 677 00:24:55,294 --> 00:24:57,763 Sure. Yeah. O'Leary: I just drop it off at the concierge, say, 678 00:24:57,763 --> 00:24:59,898 "Take this and ship it to my home in Miami." 679 00:24:59,898 --> 00:25:02,134 Yup. So what -- 680 00:25:02,134 --> 00:25:03,936 Why do I need you? 681 00:25:03,936 --> 00:25:06,972 I think that this is a more affordable option 682 00:25:06,972 --> 00:25:08,574 for more folks. 683 00:25:08,574 --> 00:25:09,808 So what would it cost 684 00:25:09,808 --> 00:25:11,610 to ship that one pack right there? 685 00:25:11,610 --> 00:25:16,048 So this bag, for a customer, is $35 flat rate. 686 00:25:16,048 --> 00:25:17,182 Lubetzky: Whoa. 687 00:25:17,182 --> 00:25:19,084 Is that USPS? USPS. 688 00:25:19,084 --> 00:25:20,252 Okay. Yes. 689 00:25:20,252 --> 00:25:21,620 Lauren, that sounds really high to me. 690 00:25:21,620 --> 00:25:23,022 Greiner: It does. So, a three pack, 691 00:25:23,022 --> 00:25:25,457 which is what we sell most of, is $90. 692 00:25:25,457 --> 00:25:29,895 Lauren, why is it so expensive for the bag, though? But why wouldn't I just go to USPS and get their bags? 693 00:25:29,895 --> 00:25:31,196 For free. For free. 694 00:25:31,196 --> 00:25:32,531 They're not free. Lubetzky: The convenience. 695 00:25:32,531 --> 00:25:34,633 And their boxes -- Scott: But how much are they? 696 00:25:34,633 --> 00:25:36,769 But they kind of are free. Sure, they're free to pick up. 697 00:25:36,769 --> 00:25:38,437 Like, most people go in and just pick up 698 00:25:38,437 --> 00:25:39,905 whatever supplies they want. Scott: So that's free. 699 00:25:39,905 --> 00:25:41,340 Absolutely. Yeah. Okay. 700 00:25:41,340 --> 00:25:43,008 The idea is you're not leaving a vacation location... 701 00:25:43,008 --> 00:25:45,044 It's a convenience play. ...where you've spent money to be at. 702 00:25:45,044 --> 00:25:47,346 Got it. There is some skepticism, Lauren. 703 00:25:47,346 --> 00:25:50,349 Yeah, of course. However, you can eliminate that immediately 704 00:25:50,349 --> 00:25:52,518 by simply talking about sales. Doing sales. 705 00:25:52,518 --> 00:25:55,854 Sales. So last year we did $61,500. 706 00:25:57,356 --> 00:25:58,624 -Greiner: Okay. -Scott: Okay. 707 00:25:58,624 --> 00:26:01,860 And this year, we are already at over $41,000. 708 00:26:01,860 --> 00:26:03,162 Whew. 709 00:26:03,162 --> 00:26:04,863 Okay. That is not a lot. 710 00:26:05,898 --> 00:26:09,601 All of this to make $81,000 this year? 711 00:26:09,601 --> 00:26:12,871 $61,000. I hate to correct you and say it was lower. [ Laughter ] 712 00:26:12,871 --> 00:26:14,940 Okay. But -- She is honest! 713 00:26:14,940 --> 00:26:17,176 Last year where you made $61,000... 714 00:26:17,176 --> 00:26:19,611 Yes. ...how much did you make 715 00:26:19,611 --> 00:26:21,280 or lose on that year? 716 00:26:21,280 --> 00:26:23,382 Um, I don't know about that year specifically. 717 00:26:23,382 --> 00:26:25,250 I haven't made any profit. 718 00:26:25,250 --> 00:26:26,819 So... It gets more exciting 719 00:26:26,819 --> 00:26:28,353 by the minute. I know! It's so fun. 720 00:26:28,353 --> 00:26:29,755 [ Laughs ] "It's so fun!" 721 00:26:29,755 --> 00:26:31,290 I think that this kind of goes back 722 00:26:31,290 --> 00:26:33,158 to the business 101. 723 00:26:33,158 --> 00:26:35,727 I've been learning a lot, and I spent the first few years, 724 00:26:35,727 --> 00:26:36,995 because it's all self-funded -- 725 00:26:36,995 --> 00:26:38,297 How much have you invested thus far? 726 00:26:38,297 --> 00:26:39,731 Almost $1 million. Greiner: Whoa! 727 00:26:39,731 --> 00:26:41,400 -What?! -What?! -What?! 728 00:26:41,400 --> 00:26:43,135 Scott: You've invested, yourself, $1 million? Greiner: Wait. Stop. 729 00:26:43,135 --> 00:26:44,670 What?! 730 00:26:44,670 --> 00:26:46,805 Yes. Oh, Lauren! 731 00:26:46,805 --> 00:26:48,373 O'Leary: Are you kidding? Greiner: Where did you get -- 732 00:26:48,373 --> 00:26:51,543 Where did you get $1 million to invest in this? 733 00:26:51,543 --> 00:26:54,780 From, uh, fam-- 734 00:26:54,780 --> 00:26:56,448 Like, I married into a family 735 00:26:56,448 --> 00:26:58,750 that has a very successful business. 736 00:26:58,750 --> 00:27:00,219 -Okay. -Okay. -Okay. 737 00:27:00,219 --> 00:27:01,487 I want to talk about something different. 738 00:27:01,487 --> 00:27:04,523 So in 2023, we did a market research study 739 00:27:04,523 --> 00:27:09,328 and found that 44 million travelers in the US 740 00:27:09,328 --> 00:27:10,863 fit into our bracket of folks 741 00:27:10,863 --> 00:27:12,931 that travel more than three times a year, 742 00:27:12,931 --> 00:27:15,367 make more than $150,000 a year. 743 00:27:15,367 --> 00:27:16,835 And then 85% of them 744 00:27:16,835 --> 00:27:19,238 that were presented with the brand -- 745 00:27:19,238 --> 00:27:20,672 They watched an ad, they saw the website, 746 00:27:20,672 --> 00:27:22,374 they saw all of these things. 747 00:27:22,374 --> 00:27:24,409 And they know how much it costs? They know how much it costs. 748 00:27:24,409 --> 00:27:26,345 And they said they would buy it? Yes. Absolutely. 749 00:27:26,345 --> 00:27:29,014 And so the issue has been reaching that audience. 750 00:27:29,014 --> 00:27:30,616 I need to put more money behind that. 751 00:27:30,616 --> 00:27:34,920 No, no, no. I forbid it. You've already put $1 million. 752 00:27:34,920 --> 00:27:39,491 What in the world did that million dollars go towards? 753 00:27:39,491 --> 00:27:41,160 Help me. Help me help you. 754 00:27:41,160 --> 00:27:42,394 We were buying advertising for six years. 755 00:27:42,394 --> 00:27:43,529 Ooh. [ Laughs ] 756 00:27:43,529 --> 00:27:45,097 It costs money to make the bag. 757 00:27:45,097 --> 00:27:46,431 Six years she's... Greiner: Is there any money left? 758 00:27:46,431 --> 00:27:48,667 Do you know what advertising is in this situation? 759 00:27:48,667 --> 00:27:53,138 It's a tax for the unremarkable. That's what advertising is. 760 00:27:53,138 --> 00:27:56,041 You're being taxed because your product isn't priced right 761 00:27:56,041 --> 00:27:57,442 and people don't want it. 762 00:27:57,442 --> 00:27:59,511 So in this case, advertising is not a good thing. 763 00:27:59,511 --> 00:28:01,980 The problem is, I would not pay more than $10 764 00:28:01,980 --> 00:28:03,215 for three of these things. 765 00:28:03,215 --> 00:28:04,816 So the problem is the pricing of it. 766 00:28:04,816 --> 00:28:06,218 Sure. I'm out. 767 00:28:06,218 --> 00:28:07,352 I'll pass it to the other Sharks to see if they're in. 768 00:28:07,352 --> 00:28:08,954 I'm out with extreme prejudice, 769 00:28:08,954 --> 00:28:10,689 and I actually forbid you to go on. 770 00:28:10,689 --> 00:28:12,925 There's nothing but pain and darkness ahead. 771 00:28:12,925 --> 00:28:15,093 I mean, you can't go on with this. 772 00:28:16,161 --> 00:28:17,563 I'm out. 773 00:28:17,563 --> 00:28:18,931 Lauren, listen, 774 00:28:18,931 --> 00:28:21,667 you have such a wonderful personality 775 00:28:21,667 --> 00:28:23,702 and part of your challenge 776 00:28:23,702 --> 00:28:27,539 is your charm is probably helping you continue 777 00:28:27,539 --> 00:28:30,008 without hearing the feedback that you need to hear. 778 00:28:30,008 --> 00:28:32,010 This time, Mr. Wonderful's correct. 779 00:28:32,010 --> 00:28:33,445 Like, you need to adjust. 780 00:28:33,445 --> 00:28:36,048 I actually think, if you listen, 781 00:28:36,048 --> 00:28:39,151 because of your incredible energy and personality, 782 00:28:39,151 --> 00:28:42,354 you'll figure it out, but you have a long ways to go. 783 00:28:42,354 --> 00:28:43,989 And for those reasons, I'm out. 784 00:28:45,891 --> 00:28:47,259 I don't personally think 785 00:28:47,259 --> 00:28:49,728 this is the right business for you. 786 00:28:49,728 --> 00:28:51,863 Now, think of other things, 787 00:28:51,863 --> 00:28:53,966 because you have a wealth of knowledge. 788 00:28:53,966 --> 00:28:55,500 I'm so sorry. I'm out. 789 00:28:57,502 --> 00:29:00,105 Call: Thank you. Lauren, I'm gonna share a story with you, okay? 790 00:29:00,105 --> 00:29:03,275 My first business, I went in the hat business, 791 00:29:03,275 --> 00:29:04,910 and I was convinced 792 00:29:04,910 --> 00:29:06,912 that I was going to make people wear hats again 793 00:29:06,912 --> 00:29:08,680 like it was 1940. 794 00:29:08,680 --> 00:29:10,916 Everyone in the world was gonna wear hats. 795 00:29:10,916 --> 00:29:14,152 Guess what? Nobody wanted to wear hats. 796 00:29:14,152 --> 00:29:17,322 And I kept putting money into it until I was sucked dry 797 00:29:17,322 --> 00:29:18,824 and I had nothing left. 798 00:29:18,824 --> 00:29:20,459 And I had to come to the realization 799 00:29:20,459 --> 00:29:23,662 People are not going to wear hats, Kendra. 800 00:29:23,662 --> 00:29:24,896 Yeah. And I had to have 801 00:29:24,896 --> 00:29:27,933 the bravery, right, to say, "Enough." 802 00:29:27,933 --> 00:29:30,202 Call: Yes. "How much more am I going to lose?" 803 00:29:30,202 --> 00:29:33,005 But that business was the foundation 804 00:29:33,005 --> 00:29:35,240 for the successful business I launched ahead, 805 00:29:35,240 --> 00:29:39,411 and I think you have that in you to be a successful entrepreneur. 806 00:29:39,411 --> 00:29:41,813 But you are so stuck right now in tunnel vision 807 00:29:41,813 --> 00:29:44,483 on this idea has to be the thing... Call: Yes, sure. 808 00:29:44,483 --> 00:29:46,785 Scott: ...that you're not opening yourself up to the fact 809 00:29:46,785 --> 00:29:48,820 that this may not be it. 810 00:29:48,820 --> 00:29:51,456 Mm-hmm. Something better may be waiting for you. 811 00:29:51,456 --> 00:29:53,558 I don't want you to drown... Mm-hmm. 812 00:29:53,558 --> 00:29:55,494 ...and I can't give you a life preserver. 813 00:29:55,494 --> 00:29:57,462 And I wish you the best, but I'm sorry, I'm out. 814 00:30:00,732 --> 00:30:03,802 And this isn't the end. This could be the beginning. Right, this doesn't -- 815 00:30:03,802 --> 00:30:05,470 That's right. I just want you to know 816 00:30:05,470 --> 00:30:08,106 you're incredibly courageous. Thank you, Daniel. 817 00:30:08,106 --> 00:30:10,509 And a lot of people would not have 818 00:30:10,509 --> 00:30:12,911 the strength that you have to have gotten this far. 819 00:30:12,911 --> 00:30:14,913 So you deserve appreciation for that. 820 00:30:14,913 --> 00:30:17,482 Thank you. That means a lot. 821 00:30:17,482 --> 00:30:19,484 Thank you. [ Laughs ] 822 00:30:19,484 --> 00:30:21,586 Greiner: Oh, look at that! 823 00:30:21,586 --> 00:30:23,455 Oh, this is very beautiful. Very fancy. 824 00:30:23,455 --> 00:30:26,024 And look, most entrepreneurs make most of their money 825 00:30:26,024 --> 00:30:27,759 on their second or third business. 826 00:30:27,759 --> 00:30:29,795 You got to get this one out of your system. 827 00:30:29,795 --> 00:30:32,664 Lauren, we'll see great things from you down the road. 828 00:30:32,664 --> 00:30:33,932 Thank you. Good luck. 829 00:30:33,932 --> 00:30:35,634 Have a good one. Bye. 830 00:30:35,634 --> 00:30:37,669 Whoo. 831 00:30:37,669 --> 00:30:41,473 So obviously I have some decisions to make. 832 00:30:41,473 --> 00:30:44,476 It would be stupid of me not to recognize 833 00:30:44,476 --> 00:30:47,746 the people in that room know what they're talking about. 834 00:30:47,746 --> 00:30:51,183 Um, so I guess I just have a lot to think about. 835 00:30:51,183 --> 00:30:52,784 Look, we just did her a huge favor. 836 00:30:52,784 --> 00:30:54,753 Yes. We need a moment of silence. 837 00:30:54,753 --> 00:30:57,622 For the million dollars. A moment of silence, please. 838 00:30:57,622 --> 00:30:59,057 [ Laughs ] Please. 839 00:30:59,057 --> 00:31:03,295 ♪♪ 840 00:31:08,500 --> 00:31:11,203 ♪♪ 841 00:31:11,203 --> 00:31:12,938 Narrator: Next up is a family 842 00:31:12,938 --> 00:31:15,674 that's serving up pies with a passion. 843 00:31:15,674 --> 00:31:19,344 ♪♪ 844 00:31:19,344 --> 00:31:20,746 Oh, wow! 845 00:31:20,746 --> 00:31:23,982 ♪♪ 846 00:31:28,019 --> 00:31:29,521 Hello, Sharks! 847 00:31:29,521 --> 00:31:32,290 I'm Melody. And I'm Russ. 848 00:31:32,290 --> 00:31:33,592 I'm Taysia. 849 00:31:33,592 --> 00:31:35,527 I'm Rylan. 850 00:31:35,527 --> 00:31:37,129 And together, we are a deaf... 851 00:31:37,129 --> 00:31:39,297 And CODA family-owned business. 852 00:31:39,297 --> 00:31:41,166 CODA means "children of deaf adults." 853 00:31:41,166 --> 00:31:42,567 That's me and Taysia. 854 00:31:43,935 --> 00:31:46,438 We're here seeking $200,000 855 00:31:46,438 --> 00:31:49,941 in exchange for 5% of our company. 856 00:31:49,941 --> 00:31:51,743 I always wanted to be a professional chef, 857 00:31:51,743 --> 00:31:54,012 but because I was deaf, no one would hire me. 858 00:31:54,012 --> 00:31:58,550 So I trained in Italy and became a master Neapolitan pizza maker. 859 00:31:58,550 --> 00:32:01,653 So, almost 15 years ago, these two crazy kids 860 00:32:01,653 --> 00:32:03,088 decided to open up... [ Laughter ] 861 00:32:03,088 --> 00:32:04,456 ...their very own Neapolitan pizzeria. 862 00:32:04,456 --> 00:32:06,425 And after many years of watching our parents sling dough, 863 00:32:06,425 --> 00:32:08,960 we decided to band together as a family of four. 864 00:32:08,960 --> 00:32:10,595 In the form of frozen pizza. 865 00:32:10,595 --> 00:32:12,931 Together: With pi00a! 866 00:32:12,931 --> 00:32:17,035 pi00a is the first frozen, handmade, 867 00:32:17,035 --> 00:32:20,238 globally inspired Neapolitan pizza company. 868 00:32:20,238 --> 00:32:23,275 It's light, chewy, crisp, restaurant-quality pizza 869 00:32:23,275 --> 00:32:24,709 made in minutes within the comforts 870 00:32:24,709 --> 00:32:26,344 of your own homes. 871 00:32:26,344 --> 00:32:28,580 Each pizza is hand-stretched 872 00:32:28,580 --> 00:32:31,783 and made from imported Italian "00" flour, 873 00:32:31,783 --> 00:32:34,786 which is considered to be the gold standard in dough making. 874 00:32:34,786 --> 00:32:36,888 pi00a isn't just about pizza. 875 00:32:38,323 --> 00:32:40,559 Although our pizzas are amazing. 876 00:32:40,559 --> 00:32:41,760 [ Laughter ] 877 00:32:41,760 --> 00:32:43,628 We've also created a mission that matters. 878 00:32:43,628 --> 00:32:45,330 We're providing job opportunities 879 00:32:45,330 --> 00:32:47,399 for the deaf community and building businesses 880 00:32:47,399 --> 00:32:49,601 that are inclusive and impactful. 881 00:32:49,601 --> 00:32:51,670 We've put in the work. The passion. 882 00:32:51,670 --> 00:32:53,338 And the time. 883 00:32:53,338 --> 00:32:56,308 And now we're here looking for the right Shark 884 00:32:56,308 --> 00:32:58,076 to help us scale. [ Laughter ] 885 00:32:58,076 --> 00:33:00,145 Together: Let's make some serious dough! 886 00:33:00,145 --> 00:33:03,114 -Scott: Oh, I love it! -Greiner: Yay, great job. 887 00:33:03,114 --> 00:33:05,517 You guys are the most beautiful family. 888 00:33:05,517 --> 00:33:06,918 Thank you. Thank you so much. 889 00:33:06,918 --> 00:33:08,286 Sharks, in front of you, 890 00:33:08,286 --> 00:33:09,955 you have our four current frozen pizza flavors. 891 00:33:09,955 --> 00:33:12,958 We have our Margherita, Quattro Formaggi, Soppressata, 892 00:33:12,958 --> 00:33:15,093 and of course, our Miso Eggplant. 893 00:33:15,093 --> 00:33:16,962 Plus, you also have in front of you 894 00:33:16,962 --> 00:33:18,930 our Spicy Chili Crunch to put on top of the pizza. 895 00:33:18,930 --> 00:33:20,131 Mmm. Oh, my goodness. 896 00:33:20,131 --> 00:33:22,300 Lubetzky: This looks very attractive. 897 00:33:22,300 --> 00:33:25,170 Oh, my gosh, it smells so good. This was frozen? 898 00:33:25,170 --> 00:33:26,204 Yeah, this was frozen. Yes. 899 00:33:26,204 --> 00:33:27,572 This is frozen? 900 00:33:27,572 --> 00:33:28,974 This tastes like fresh pizza from a restaurant. 901 00:33:28,974 --> 00:33:30,475 Wow! 902 00:33:30,475 --> 00:33:32,110 -Scott: This is incredible. -Melody: Thank you so much. 903 00:33:32,110 --> 00:33:34,079 This is really different and really special. 904 00:33:34,079 --> 00:33:35,347 -Scott: So delicious. -Greiner: What is this? 905 00:33:35,347 --> 00:33:36,648 Rylan: That's our Miso Eggplant. 906 00:33:36,648 --> 00:33:38,483 This is off the charts. 907 00:33:38,483 --> 00:33:41,520 Oh, my God, you're right, Lori. This is so good. 908 00:33:41,520 --> 00:33:42,787 O'Leary: The quality is excellent, 909 00:33:42,787 --> 00:33:45,190 but are you still making them by hand now? 910 00:33:46,424 --> 00:33:48,226 Currently, yes. How can the economics of that 911 00:33:48,226 --> 00:33:49,628 be viable? Williams: Right. 912 00:33:49,628 --> 00:33:51,096 Yeah, we have a great team that we work with 913 00:33:51,096 --> 00:33:52,264 to do that by hand. 914 00:33:52,264 --> 00:33:53,865 How many can you make a day by hand? 915 00:33:53,865 --> 00:33:55,767 About 250 right now. 916 00:33:55,767 --> 00:33:57,369 And where are you guys selling the pizzas now? 917 00:33:57,369 --> 00:33:59,738 Right now, we just launched our first larger retailer, 918 00:33:59,738 --> 00:34:01,139 Earth Fare, in the Carolinas. 919 00:34:01,139 --> 00:34:02,607 But we're actually gonna be launching 920 00:34:02,607 --> 00:34:05,143 into a couple national retailers in Southern California -- 921 00:34:05,143 --> 00:34:06,378 Whole Foods... Scott: Congratulations. 922 00:34:06,378 --> 00:34:08,112 ...Bristol Farms, and Mother's Market. 923 00:34:08,112 --> 00:34:09,614 All three? And you're delivering them frozen? 924 00:34:09,614 --> 00:34:11,049 Yeah, frozen. And does it come 925 00:34:11,049 --> 00:34:13,118 packaged like this? Yes, exactly like that. 926 00:34:13,118 --> 00:34:14,686 O'Leary: I want to get my head around 927 00:34:14,686 --> 00:34:17,289 if you hire a new employee 928 00:34:17,289 --> 00:34:20,425 that is a master pizza maker, 929 00:34:20,425 --> 00:34:22,994 how many can they make in a day 930 00:34:22,994 --> 00:34:24,929 before they just drop on the floor? 931 00:34:24,929 --> 00:34:26,764 [ Chuckles ] So, the two of us, Russ and I, 932 00:34:26,764 --> 00:34:28,766 we are the first certified 933 00:34:28,766 --> 00:34:31,902 professional Napoletano pizza makers. 934 00:34:31,902 --> 00:34:33,838 So we do hire a deaf team. 935 00:34:33,838 --> 00:34:35,840 We teach every one of them how to make these pizzas. 936 00:34:35,840 --> 00:34:37,542 Why is it called pi00a? 937 00:34:37,542 --> 00:34:39,411 Yeah, so pi00a is the word "pizza" 938 00:34:39,411 --> 00:34:41,413 replacing the Z's with "00", 939 00:34:41,413 --> 00:34:42,914 which is the type of flour we use. 940 00:34:42,914 --> 00:34:45,684 So instead of all-purpose flour, semolina flour, we use 00 flour, 941 00:34:45,684 --> 00:34:47,185 which is imported from Italy, so that's where pi00a comes from. 942 00:34:47,185 --> 00:34:49,020 Williams: Now, there are two things that I know really well. 943 00:34:49,020 --> 00:34:51,222 Number one is pizza, because I'm from Chicago. 944 00:34:51,222 --> 00:34:53,257 We eat deep dish pizza. Me too. 945 00:34:53,257 --> 00:34:54,525 Williams: But the other thing that I know really well 946 00:34:54,525 --> 00:34:55,927 is numbers. 947 00:34:55,927 --> 00:34:58,063 So I would love to know how much you guys are selling, 948 00:34:58,063 --> 00:34:59,831 what revenue and when did you start? 949 00:34:59,831 --> 00:35:01,967 We started about two years ago. 950 00:35:01,967 --> 00:35:05,403 Our lifetime sales are at $422,000. 951 00:35:05,403 --> 00:35:08,607 Last year alone, we earned $222,000. 952 00:35:08,607 --> 00:35:11,543 Currently, we've made about $125,000 953 00:35:11,543 --> 00:35:14,045 with the goal of meeting $350,000 954 00:35:14,045 --> 00:35:15,113 by the end of the year. 955 00:35:16,181 --> 00:35:19,684 Our food COGS right now are $3.64. Okay. 956 00:35:19,684 --> 00:35:24,255 Our wholesale pricing is $6.50. MSRP is $13.99. 957 00:35:24,255 --> 00:35:28,727 Were you profitable last year on that $222,000 in revenue? 958 00:35:29,961 --> 00:35:31,963 No, we haven't made a profit at the moment. 959 00:35:31,963 --> 00:35:34,566 The profit margin right now is at 30%. 960 00:35:34,566 --> 00:35:36,534 With the funds we're seeking and with scale 961 00:35:36,534 --> 00:35:38,403 and increased automation, 962 00:35:38,403 --> 00:35:40,739 we can increase that to about 50% profit margins. 963 00:35:40,739 --> 00:35:42,140 And have you raised money? 964 00:35:42,140 --> 00:35:44,743 We have invested about $250,000 of our own money. 965 00:35:44,743 --> 00:35:46,878 We have raised $300,000 so far. Greiner: Wow. That's a lot. 966 00:35:46,878 --> 00:35:48,079 That is a lot. 967 00:35:48,079 --> 00:35:49,814 What do you need from a Shark? 968 00:35:49,814 --> 00:35:50,949 We need capital to assist us 969 00:35:50,949 --> 00:35:52,884 in terms of purchasing the equipment. 970 00:35:52,884 --> 00:35:54,719 That's a key part of our process, 971 00:35:54,719 --> 00:35:56,688 and we would be able to streamline our process 972 00:35:56,688 --> 00:35:57,856 with that equipment, with that automation, 973 00:35:57,856 --> 00:35:59,090 and go to scale. 974 00:35:59,090 --> 00:36:00,592 So we'll be able to go nationwide. 975 00:36:00,592 --> 00:36:03,261 We'll be able to meet the demand that is already there. 976 00:36:03,261 --> 00:36:05,397 Yeah. Receiving a lot of opportunities. 977 00:36:05,397 --> 00:36:07,132 And unfortunately, we can't say yes 978 00:36:07,132 --> 00:36:08,933 to all of them. Like what opportunities? 979 00:36:10,068 --> 00:36:13,672 $1.4 million in revenue that we've had to turn down. 980 00:36:13,672 --> 00:36:16,408 Really? From who? From food services. 981 00:36:16,408 --> 00:36:18,843 Sports stadiums. And sports stadiums. 982 00:36:18,843 --> 00:36:22,247 And I also just want to add, my kids are beautiful people. 983 00:36:22,247 --> 00:36:24,449 Aww. They've dove in and are full time. 984 00:36:24,449 --> 00:36:27,419 Myself, I support as much as I can. 985 00:36:27,419 --> 00:36:29,320 I'm the company's best cheerleader. 986 00:36:29,320 --> 00:36:32,557 I also work full time at a deaf university. 987 00:36:32,557 --> 00:36:33,992 Amazing. I am the director 988 00:36:33,992 --> 00:36:36,428 of an entrepreneurship program there. 989 00:36:36,428 --> 00:36:37,729 Oh, wow! Really? 990 00:36:37,729 --> 00:36:39,364 The unemployment rates for the deaf community 991 00:36:39,364 --> 00:36:41,433 are about 55% -- very high. Oh, my goodness. 992 00:36:41,433 --> 00:36:42,901 Oh. So it's super important 993 00:36:42,901 --> 00:36:45,270 for us as a family, as deaf community members, 994 00:36:45,270 --> 00:36:47,505 because we experience a lot of rejection. 995 00:36:47,505 --> 00:36:49,607 We want to apply for jobs, we do apply for jobs, 996 00:36:49,607 --> 00:36:51,509 and that rejection rate is so high 997 00:36:51,509 --> 00:36:53,745 because people don't want to work with deaf folks. 998 00:36:53,745 --> 00:36:55,346 So this is an opportunity to grow. 999 00:36:55,346 --> 00:36:57,449 This is an opportunity for us to have stores 1000 00:36:57,449 --> 00:36:59,884 all across the nation, for people to see that, 1001 00:36:59,884 --> 00:37:02,053 wow, we can provide opportunities for work 1002 00:37:02,053 --> 00:37:04,222 for people all over the place. Wow. 1003 00:37:04,222 --> 00:37:05,990 You standing on this carpet today 1004 00:37:05,990 --> 00:37:08,059 is showing them that it's possible 1005 00:37:08,059 --> 00:37:11,162 and what a representation of what family looks like. 1006 00:37:11,162 --> 00:37:12,530 Really. 1007 00:37:12,530 --> 00:37:14,399 I'm gonna get emotional, 1008 00:37:14,399 --> 00:37:16,568 because just to see the love between the four of you, 1009 00:37:16,568 --> 00:37:19,337 your commitment to each other and this dream 1010 00:37:19,337 --> 00:37:21,206 is just awe-inspiring. 1011 00:37:21,206 --> 00:37:22,707 But this is just not -- 1012 00:37:22,707 --> 00:37:23,775 I don't know anything about grocery. 1013 00:37:23,775 --> 00:37:25,176 I just don't yet. 1014 00:37:25,176 --> 00:37:27,078 And I don't want to do something 1015 00:37:27,078 --> 00:37:29,447 that I know I couldn't absolutely do something amazing 1016 00:37:29,447 --> 00:37:31,750 and help you deliver what you need to deliver. 1017 00:37:31,750 --> 00:37:34,786 But I will be your biggest fan and supporter, 1018 00:37:34,786 --> 00:37:37,055 but I just don't think I'm the right Shark for this deal. 1019 00:37:37,055 --> 00:37:38,256 So for that reason, I'm out. 1020 00:37:38,256 --> 00:37:40,091 But thank you for inspiring me today. 1021 00:37:40,091 --> 00:37:41,926 Thank you so much. Thank you so much. 1022 00:37:41,926 --> 00:37:45,396 Pizzas are a very competitive space, very competitive. 1023 00:37:45,396 --> 00:37:46,831 Freezer space -- very competitive. 1024 00:37:46,831 --> 00:37:49,667 And so, um, I wish you the very best. 1025 00:37:49,667 --> 00:37:52,604 An amazing story, but I'm out. 1026 00:37:52,604 --> 00:37:54,339 Thank you. 1027 00:37:54,339 --> 00:37:56,641 I think you guys are an amazing family. 1028 00:37:56,641 --> 00:37:58,376 And this pizza was so good. 1029 00:37:58,376 --> 00:38:00,879 But I don't know much about frozen food. 1030 00:38:00,879 --> 00:38:03,948 There's way too much competition in this space. 1031 00:38:03,948 --> 00:38:05,984 Sorry, but I'm out. 1032 00:38:05,984 --> 00:38:07,218 Thank you. We appreciate it. Thank you. 1033 00:38:07,218 --> 00:38:10,688 Guys, I really, like everybody here, 1034 00:38:10,688 --> 00:38:12,157 feel so touched. 1035 00:38:12,157 --> 00:38:15,093 It's so clear the love that you guys have for each other. 1036 00:38:15,093 --> 00:38:17,862 There's something about CODA families -- 1037 00:38:17,862 --> 00:38:19,330 the unity, the love, 1038 00:38:19,330 --> 00:38:22,167 the commitment of the kids [voice breaks] to the parents. 1039 00:38:22,167 --> 00:38:24,202 I'm not crying, you're crying. But I'm also crying. Daniel... 1040 00:38:24,202 --> 00:38:26,704 [ Laughter ] You're gonna make me cry. 1041 00:38:26,704 --> 00:38:27,939 There's just something really beautiful. 1042 00:38:27,939 --> 00:38:29,541 Thank you. And it's a dream of any parent 1043 00:38:29,541 --> 00:38:30,975 to have your children love you so much 1044 00:38:30,975 --> 00:38:32,577 that they want to partner with you and work with you. 1045 00:38:32,577 --> 00:38:34,913 And I really commend both generations 1046 00:38:34,913 --> 00:38:36,748 for what you guys have built. Greiner: Yeah. 1047 00:38:36,748 --> 00:38:39,551 It's so clear how united you are. Scott: It is. Yeah. 1048 00:38:39,551 --> 00:38:41,619 But I-I just don't see this business 1049 00:38:41,619 --> 00:38:43,388 as investable right now. 1050 00:38:43,388 --> 00:38:45,690 There's way too much competition in this space. 1051 00:38:45,690 --> 00:38:47,325 For that reason, I'm out. 1052 00:38:50,128 --> 00:38:51,262 Thank you so much. 1053 00:38:51,262 --> 00:38:53,464 Well, there's still one Shark left. 1054 00:38:53,464 --> 00:38:54,732 Okay, Lori, what are you doing? 1055 00:38:54,732 --> 00:39:01,406 ♪♪ 1056 00:39:07,445 --> 00:39:10,148 Narrator: Four Sharks are out. 1057 00:39:10,148 --> 00:39:13,418 Lori is the Stein family's last chance for a deal 1058 00:39:13,418 --> 00:39:16,588 for their deaf and CODA family-owned pizza business, 1059 00:39:16,588 --> 00:39:18,256 pi00a. 1060 00:39:18,256 --> 00:39:19,924 I'll tell you how I feel. 1061 00:39:21,993 --> 00:39:25,530 I look at you and my heart fills up. 1062 00:39:25,530 --> 00:39:27,532 I mean, there are certain people that come here, 1063 00:39:27,532 --> 00:39:29,033 and it touches me. 1064 00:39:29,033 --> 00:39:32,904 When you said that only 50% of people that are deaf 1065 00:39:32,904 --> 00:39:35,406 get an opportunity to even work, 1066 00:39:35,406 --> 00:39:41,880 that broke my heart because it's so unfair. 1067 00:39:41,880 --> 00:39:44,215 You deserve a deal. 1068 00:39:44,215 --> 00:39:46,718 I want to be the first Shark 1069 00:39:46,718 --> 00:39:52,090 to have a deaf founder and family as part of my family 1070 00:39:52,090 --> 00:39:55,293 and give you that opportunity and lead by example. 1071 00:39:55,293 --> 00:39:56,995 So I'm gonna make you an offer. 1072 00:39:58,096 --> 00:40:00,965 I'm going to go $200,000, 1073 00:40:00,965 --> 00:40:03,968 but I'd like to get 15%. 1074 00:40:03,968 --> 00:40:09,140 And I will help blow you up in the best way imaginable. 1075 00:40:09,140 --> 00:40:10,441 What do you say? 1076 00:40:11,776 --> 00:40:13,244 Thank you so much. 1077 00:40:17,148 --> 00:40:18,516 Can we have a second to talk? 1078 00:40:18,516 --> 00:40:20,351 Yes, you can. Yes, you can. 1079 00:40:20,351 --> 00:40:22,120 Give us just a second. 1080 00:40:25,657 --> 00:40:27,325 I see $1 billion exit in the future 1081 00:40:27,325 --> 00:40:29,227 on this one for you, yeah. 1082 00:40:29,227 --> 00:40:30,428 I hope, for them. 1083 00:40:30,428 --> 00:40:34,198 ♪♪ 1084 00:40:34,198 --> 00:40:37,035 Okay, so first of all, thank you so much. 1085 00:40:37,035 --> 00:40:39,170 We definitely appreciate this offer. 1086 00:40:39,170 --> 00:40:41,205 We have been working so hard. 1087 00:40:41,205 --> 00:40:44,776 All along, we've been invisible. We want to be more visible. Oh. 1088 00:40:44,776 --> 00:40:47,712 And so we definitely need a Shark's help 1089 00:40:47,712 --> 00:40:51,316 to get nationwide, to have people to see us, finally. 1090 00:40:51,316 --> 00:40:54,585 And so we do want to thank you for the opportunity. 1091 00:40:54,585 --> 00:40:57,388 We would like to counteroffer, if we might. 1092 00:40:57,388 --> 00:40:59,390 So can we say 10%? 1093 00:41:02,193 --> 00:41:04,062 Let's say 12%, and you have a deal. 1094 00:41:04,062 --> 00:41:12,637 ♪♪ 1095 00:41:12,637 --> 00:41:15,039 Okay. [ Cheers and applause ] 1096 00:41:15,039 --> 00:41:16,574 Scott: I'm so happy for you guys! 1097 00:41:16,574 --> 00:41:19,544 Oh, my God. Oh, my God. Oh, my God. Thank you so much. 1098 00:41:19,544 --> 00:41:22,880 Rylan: Thank you. Thank you so much. Russ: Thank you. 1099 00:41:22,880 --> 00:41:26,451 Williams: Amazing, amazing. Oh, my God. I see you. I see you. 1100 00:41:26,451 --> 00:41:28,453 Amazing. You are not invisible. 1101 00:41:28,453 --> 00:41:30,421 Greiner: Oh, my God. I see you. 1102 00:41:30,421 --> 00:41:32,290 And the world's going to see you, 1103 00:41:32,290 --> 00:41:33,958 and they're gonna know this pizza, 1104 00:41:33,958 --> 00:41:35,727 and they're going to love it. 1105 00:41:35,727 --> 00:41:38,296 Taysia: Thank you so much. Thank you. Scott: Congratulations. 1106 00:41:38,296 --> 00:41:40,465 Thank you so much. Oh, you're crying. 1107 00:41:40,465 --> 00:41:43,067 Oh, my God. I never see him cry. It's very moving. 1108 00:41:43,067 --> 00:41:44,469 Very moving. Whoo! 1109 00:41:44,469 --> 00:41:46,104 Greiner: I never see Kevin cry. 1110 00:41:47,772 --> 00:41:49,741 Melody: All you have to do is start with a dream, 1111 00:41:49,741 --> 00:41:52,443 and then chase that dream and not let anyone tell you, 1112 00:41:52,443 --> 00:41:53,845 "No, you can't do it." 1113 00:41:53,845 --> 00:41:56,647 Persist. Persevere. Break through those obstacles. 1114 00:41:56,647 --> 00:41:59,083 Break through those barriers and show people that you can. 1115 00:41:59,083 --> 00:42:00,451 You are worth it. 1116 00:42:01,753 --> 00:42:04,288 You know what? It's got to start, right? 1117 00:42:04,288 --> 00:42:07,425 Like, it starts little places, people be seen. 1118 00:42:07,425 --> 00:42:09,660 They were seen today, and I... Oh, my God. 1119 00:42:09,660 --> 00:42:11,729 ...you know, and I hope this brings such awareness... 1120 00:42:11,729 --> 00:42:13,331 I hope so, too. ...to everybody watching. 1121 00:42:13,331 --> 00:42:14,832 That's why we're Sharks. 1122 00:42:14,832 --> 00:42:16,501 I'm so happy they got you. Great job, Lori. Great job. 1123 00:42:16,501 --> 00:42:17,869 Thank you, thank you. You are the right Shark for this. 1124 00:42:17,869 --> 00:42:19,037 Thank you. [ Sniffles ] My goodness. 1125 00:42:19,037 --> 00:42:22,807 ♪♪ 1126 00:42:28,579 --> 00:42:38,189 ♪♪ 1127 00:42:38,189 --> 00:42:43,327 ♪♪ 1128 00:42:43,327 --> 00:42:49,567 ♪♪ 1129 00:42:49,567 --> 00:42:57,008 ♪♪