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SARAH:
Tonight on Shark Tank Australia,

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it's a night of firsts.

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Are you ready for this?

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The first ever pitch in song.

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# We're the Beanies

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# Welcome to our great
Shark Tank business pitch... #

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And the first artificial intelligence
product lands in the tank.

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AI powered set of tools
for teaching and learning.

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Wow!
Amazing.

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Catchy is a world first accessory
for high chairs.

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Bravo! Bravo!

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But which entrepreneurs
will miss their mark

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with their pitch...

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You don't tell an investor

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that you're going to use their money
for your salary.

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Aye aye aye.

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That brings the valuation to...?

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Reasonable.

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..as the final curtain is called?

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I did not invest in your business.

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Let's just be clear on that.

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First into the tank
to face the Sharks

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is Sydney based husband and wife team
Rachel and Brad Cohen.

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RACHEL: Our product is Catchy.

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It's a world first food catching
accessory for highchairs.

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We knew when we invented Catchy
for ourselves

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that we needed
to bring this product out

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for other families around the world.

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So I have this.

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What?
You have this exact one?

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Yeah.

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I've got the mess also.

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(LAUGHTER)

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Hi, I'm Rachel. This is Brad.

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And together with our kids,
we're the founders of Catchy.

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Our mission is to empower families
to enjoy stress-free meal times

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and raise happy, healthy eaters.

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As a clinical psychologist
specialised in eating disorders,

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I know how important it is
for our kids' development

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to let them explore their food, make
a mess and truly enjoy mealtimes.

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But as a mum, I couldn't stand
the constant clean-up.

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When we started solids with
our daughter Maya,

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we found out firsthand

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just how messy and stressful
feeding babies can be.

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Picture this -

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you've slaved away to make a
nutritious breakfast for your baby,

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only to have them
throw it all over the floor.

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You're exhausted.

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And now you have to get down
on your hands and knees

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and clean mashed banana
off the carpets.

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What if you had this?

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Ta da!
Ooh.

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Catchy is a world first food
catching accessory for highchairs

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that saves your floors, saves
your food and saves your sanity.

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Catchy is made from
non-toxic food-safe material

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so you can safely re-offer your baby
all the food they've dropped

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or save it for later.

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And it saves your back from bending
down every two seconds

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to pick up dropped bowls and spoons
from the floor.

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We've already sold
over 50,000 Catchys

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to families in more than
60 countries around the world.

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Wow.
Wow. That's great.

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The biggest thing
is our growth opportunity.

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Sharks, there's 140 million babies
born annually each year.

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That's a $1 billion opportunity
for our business.

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Sharks, today we are asking for
$300,000 at a $15 million valuation.

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Whoo!

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Brad, how much equity
are you looking to give up?

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2%.

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2%.
Oh.

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2%?
Aye aye aye.

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We know that in the future,

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every home with a high chair
will also have a Catchy.

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So, Sharks,

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how do we get you into our chairs?

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(LAUGHTER)

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Wah wah wah!

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Ha-ha! Cute!

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Rachel and Brad,

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I have three girls
all under the age of six.

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My youngest is one and a half.

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And that set up there
is literally my house every day.

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You sell obviously
the whole highchair and the tray.

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No.

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So you have your highchair and then
you buy this as an accessory.

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How much does it cost?

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$54.95.

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Mm.

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What does it cost you to make?
$9. Landed.

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Wow.
(LAUGHS)

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That's great.
Wow.

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Hey, Rachel and Ryan.

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I'm Jane.

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I've got a Catchy, and I love it.

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Oh, amazing.

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That's the best thing we could hear.
Yeah.

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So the product is amazing.
I will vouch for that.

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What's not so amazing
is your valuation.

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Talk me through how you got there.

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Absolutely.

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So we're on track to achieve
an $8 million run rate this year.

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So that equates to a valuation
multiple of two times revenue.

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So when I sold 1,000 Oodies,

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I was worth a thousand Oodies,
pretty much.

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Why should we pay
on your future run rate?

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Which is a very uncommon way
to value an e-commerce start-up,

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especially nowadays.

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What was your past 12 months
of sales?

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So our past 12 months of sales
was $2 million.

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Why didn't you apply
the two times revenue to that?

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Well, we already
have surpassed that.

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And what did you make
on the 2 million last year?

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We made a $200,000 loss.

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Oh.
Ooh.

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Last year we invested heavily
in our IP,

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so we've got granted patents
and trademarks.

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And Rachel and Brad, I'm Cat.

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Hello.
Hi, Cat.

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Tell me about
the ownership structure.

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Is it just the two of you
in the business?

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We had advisors and mentors.

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They took 15%.

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Rachel and I own
85% of the business together.

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SARAH: With the revelation

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that the company
already has investors on board,

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what will Catriona Wallace
think of the business?

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CAT: Little challenge I have with
the product is that I see the future

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actually having an AI robot

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that will do the cleaning
in the house.

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So I'm out.

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Thank you very much.
Thanks so much. Thanks, Catriona.

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I am literally like the perfect
candidate for this product.

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But your valuation
and coming in here

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and really being willing
to kind of offer up,

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you know, a very, very small piece

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is difficult, right,
to get anybody excited.

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However...

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..I believe in you guys.

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So I am going to make you an offer.

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Oh, yeah.

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So I will offer you
all of the money, 300 K...

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Boom.

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..but I would need...

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..9% of the business.

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Oof!

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Can you tell me what that brings
the valuation to?

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Reasonable.

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SARAH: Husband and wife
Rachel and Brad Cohen are in the tank

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looking for an investment of $300,000

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in exchange for 2% of their company,
Catchy.

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With one offer on the table...

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I will offer you all of the money,
300 K,

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but I would need 9% of the business.

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..will the other Sharks
be willing to play?

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You've got a great product,
but that's step one.

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You're going to make money.

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It's just whether you want
to make money with us

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by giving us a valuation
where we can make money as well,

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or if we're just going to break even
with a ton of risk.

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What's your offer?

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(EXHALES HEAVILY)

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Look, I thought Sabri's was fair.

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I'd come in at $300,000 for 9%.

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Jane, what are you going to do?

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Oh!

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I'm happy to match it or to share it.

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Thank you.

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Thanks, Jane.

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Robert is lucky last.

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(LAUGHTER)

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I...I...

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I think 9% feels good to me.

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I can give you 9% of my day...

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..but I wanted a royalty

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to minimise my risk.

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So...

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So it's a worse offer

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than I think you've got
from the other three Sharks.

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It's a very crowded
Shark Tank right now.

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And the amount of chum
you're throwing in is so small.

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SARAH: With four offers on the table,

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will the pressure on royalties

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push Rachel and Brad
further away from a deal?

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OK. Can we have two seconds?
We'll make it a quick one.

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OK.

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What's your counter?

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So, 4% equity and 20% royalties
until you make your investment back.

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I'll do it for 5%.
ROBERT: Me too.

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Me and Robert have 2.5% each.
I'll go in with Davey on that.

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SARAH:
Davie Fogarty and Robert Herjavec

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have joined forces
and put a new offer on the table.

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I mean, if they're doing 5%,
I'll go up to 5%.

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Royalties paid back.

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I would go in with Jane
on that deal.

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Alright. So you've got two offers.

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You've got Jane and Sabri,

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and you have the same offer
from Davey and I,

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at 300,000 for 5%

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with a 20% royalty
until the money is paid back.

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It's like asking me
to choose between my kids.

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(LAUGHTER)
We'd love all of you.

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So what do we do?

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(LAUGHS) OK.

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OK. A minute together, husband?

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OK.
Alright.

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00:11:02,760 --> 00:11:03,960
Robert and Dave...

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00:11:08,560 --> 00:11:10,200
.I. think we're
going to have to take your offer.

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00:11:10,200 --> 00:11:12,200
(CHEERING)

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00:11:12,200 --> 00:11:14,560
Oh, my gosh. That was exhausting.

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SARAH: Davey and Robert have teamed
up and cemented a $300,000 investment

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for a 5% share of Catchy.

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It's a great product.

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I'm exhausted.

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We're really excited to have
Robert and Davey on board

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00:11:31,400 --> 00:11:33,760
with Davey's experience
in scaling up businesses

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and then with Robert's reach
and his...

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..what he can open for us
in the US market,

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it's invaluable, so we're
really excited to have them.

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00:11:46,960 --> 00:11:49,920
Next up to face the Sharks
is Akanksha Sinha,

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who has flown from Perth
with a business idea

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that's come from much further afield.

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I am so excited
to bring to the world

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one of the most ancient forms
of craft from India.

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It's about time the world sees it
the way India sees it.

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I'm going to be pitching
to all the Sharks.

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00:12:11,680 --> 00:12:14,160
But, Jane, I'm looking at you.

227
00:12:22,800 --> 00:12:24,240
Hello, Sharks.

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00:12:24,240 --> 00:12:26,360
My name is Akanksha Rice Sinha.

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I am beyond excited
to introduce you to Kaasida.

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Kaasida was born out of my deep love
for chikankari.

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Sound similar to, like,
'chicken curry'. I know.

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How do you say it? Is it...?

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So, it's just 'chicken curry'
with an additional A,

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so it becomes 'chikankari'.

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Oh, chikankari.
Chikankari.

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Chikankari is a unique embroidery
form that was made popular in India

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00:12:49,480 --> 00:12:51,800
back in the 15th century.

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The word 'chikankari' loosely
translates to 'white on white'

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because it is traditionally done

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with white thread
on white muslin cloth.

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00:13:00,280 --> 00:13:03,920
And over the years it's embraced
colours and different patterns.

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Our hand embroidery is crafted
by female artisans of India,

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creating a sense of connection
between you and the makers.

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00:13:13,560 --> 00:13:15,360
Through Kaasida,

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00:13:15,360 --> 00:13:18,760
I truly hope to preserve
a traditional form of handicraft

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while empowering female artisans.

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Today I seek an investment
of $35,000

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00:13:26,280 --> 00:13:28,840
against 10% equity in the business.

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Can we have a look?
Oh, of course. Yes.

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It looks nice. It's very wearable.

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It's all 100% certified
organic cotton.

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Beautiful, yeah.
Beautiful quality.

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And the embroidery is excellent.

254
00:13:44,360 --> 00:13:45,600
Super pretty.

255
00:13:45,600 --> 00:13:47,040
Thank you.
Beautiful product.

256
00:13:47,040 --> 00:13:48,160
Thank you.

257
00:13:49,320 --> 00:13:52,000
So what led you
to start this business?

258
00:13:52,000 --> 00:13:55,840
Being born and raised in Lucknow,
I've seen chikankari everywhere.

259
00:13:55,840 --> 00:13:59,360
They're some of the most beautiful
memories of my childhood,

260
00:13:59,360 --> 00:14:03,360
but I knew I couldn't wear
the clothes that we wear in India

261
00:14:03,360 --> 00:14:05,640
as comfortably as I would
a dress or a top.

262
00:14:05,640 --> 00:14:09,720
So that's when I decided to blend
this form of traditional craft

263
00:14:09,720 --> 00:14:11,400
with modern fashion.

264
00:14:11,400 --> 00:14:12,640
So, can I clarify?

265
00:14:12,640 --> 00:14:15,000
The women
that are featured on the poster,

266
00:14:15,000 --> 00:14:18,600
they're doing the chikankari part
of the embroidery?

267
00:14:18,600 --> 00:14:23,160
Yeah. So right now there are
six artisans who work for Kaasida.

268
00:14:23,160 --> 00:14:24,960
Another thing I'd like to add here

269
00:14:24,960 --> 00:14:28,040
is that Lucknow is the only place
in this entire world

270
00:14:28,040 --> 00:14:29,440
where chikankari can happen

271
00:14:29,440 --> 00:14:31,760
under the
Indian Intellectual Property law.

272
00:14:31,760 --> 00:14:33,440
So, can I just understand,

273
00:14:33,440 --> 00:14:37,800
there's only one region in the world
that can do this chikankari?

274
00:14:37,800 --> 00:14:38,800
Yeah.

275
00:14:38,800 --> 00:14:40,600
Could you...
Could you do it in Australia?

276
00:14:40,600 --> 00:14:41,640
No.
No.

277
00:14:41,640 --> 00:14:42,720
Why?

278
00:14:42,720 --> 00:14:48,000
Like, if Sabri wanted to learn
this craft and embroider here...?

279
00:14:49,200 --> 00:14:52,800
To preserve the craft,
the artisans' employment,

280
00:14:52,800 --> 00:14:54,560
so Lucknow is the only place.

281
00:14:54,560 --> 00:14:56,040
Lucknow and surrounding areas.

282
00:14:57,280 --> 00:15:02,120
How much does it cost to make
something from the manufacturer

283
00:15:02,120 --> 00:15:04,200
and how much to add the embroidery?

284
00:15:04,200 --> 00:15:09,520
So, on average, a product costs me
$105, including shipping,

285
00:15:09,520 --> 00:15:12,200
$15 shipping to the customer.

286
00:15:12,200 --> 00:15:14,320
$105 in cost?
ROBERT: 105?

287
00:15:14,320 --> 00:15:15,440
Yes.

288
00:15:15,440 --> 00:15:16,760
In cost?
Not retail price.

289
00:15:16,760 --> 00:15:18,160
No. The cost.

290
00:15:18,160 --> 00:15:19,800
What do you sell it for?
Oh, wow.

291
00:15:19,800 --> 00:15:23,000
So, I sell it at 3.5 times.

292
00:15:23,000 --> 00:15:26,080
So, on average,
selling price is $320.

293
00:15:26,080 --> 00:15:29,920
That seems like a lot...
a lot for a cotton dress.

294
00:15:31,600 --> 00:15:33,280
And how many have you sold?

295
00:15:33,280 --> 00:15:35,640
So, business is early stage.

296
00:15:35,640 --> 00:15:38,480
I've sold about 18 pieces.

297
00:15:38,480 --> 00:15:39,640
18?

298
00:15:40,920 --> 00:15:45,760
The cost also is what it is because
of the sustainability aspect.

299
00:15:45,760 --> 00:15:49,480
So it's cotton certified by the
Global Organic Textile Standards.

300
00:15:51,280 --> 00:15:54,760
I spend a bit of time
in South America, in Mexico,

301
00:15:54,760 --> 00:15:58,480
and crafts people do beautiful
cotton dresses and pants

302
00:15:58,480 --> 00:16:00,800
with sort of Amazonian embroidery
on it.

303
00:16:00,800 --> 00:16:04,840
And they are surprisingly expensive.

304
00:16:04,840 --> 00:16:08,800
So when we're talking about
artisans' embroidery,

305
00:16:08,800 --> 00:16:13,520
this is about the price
that they come in at.

306
00:16:13,520 --> 00:16:17,240
On average, it can take
female artisans up to 90 days

307
00:16:17,240 --> 00:16:18,720
to finish this embroidery.

308
00:16:20,600 --> 00:16:23,560
I want to commend you
for starting a business

309
00:16:23,560 --> 00:16:29,200
that has this environmental aspect
so front and centre,

310
00:16:29,200 --> 00:16:31,680
and it's clearly something
that you're very passionate about.

311
00:16:31,680 --> 00:16:36,640
For me, it's just way too early
with 18 units sold.

312
00:16:36,640 --> 00:16:38,800
So for that reason, I'm out.

313
00:16:39,840 --> 00:16:43,520
So, I feel there's a bit
of a disconnect here

314
00:16:43,520 --> 00:16:45,840
with this cost per product.
Mm-hm.

315
00:16:45,840 --> 00:16:50,400
Unfortunately,
in my experience in business,

316
00:16:50,400 --> 00:16:54,120
operating with that kind
of cost structure,

317
00:16:54,120 --> 00:16:55,200
just with inventory,

318
00:16:55,200 --> 00:16:58,920
it can get really,
really capital intensive early on.

319
00:16:58,920 --> 00:17:03,160
And I just don't think I'm ready to
do that ride with you at this stage.

320
00:17:03,160 --> 00:17:04,960
So for those reasons, I'm out.

321
00:17:04,960 --> 00:17:06,280
No problem.

322
00:17:08,000 --> 00:17:10,280
Akanksha,
I come from a little village

323
00:17:10,280 --> 00:17:13,240
in what used to be Yugoslavia,

324
00:17:13,240 --> 00:17:18,640
and we had beautiful embroidery
that my grandmother used to do.

325
00:17:18,640 --> 00:17:23,080
And it's really so sad
because it's a dying art.

326
00:17:24,480 --> 00:17:27,000
When you have a product like this,

327
00:17:27,000 --> 00:17:32,560
you either try to mass produce it
with a very strong message

328
00:17:32,560 --> 00:17:36,280
or you have to charge a lot of money

329
00:17:36,280 --> 00:17:40,200
for people
where the story resonates with them.

330
00:17:40,200 --> 00:17:43,040
It feels like
you're kind of in the middle.

331
00:17:43,040 --> 00:17:45,040
I wish you all the best.

332
00:17:45,040 --> 00:17:47,480
It's not for me. Thank you. I'm out.

333
00:17:47,480 --> 00:17:48,520
Thank you.

334
00:17:48,520 --> 00:17:51,920
SARAH: With Akanksha's hope
of an investment fading,

335
00:17:51,920 --> 00:17:55,680
will her ideal Shark,
fashion expert Jane Lu,

336
00:17:55,680 --> 00:17:57,600
be willing to invest?

337
00:17:57,600 --> 00:17:59,640
Akanksha, such a beautiful mission

338
00:17:59,640 --> 00:18:01,680
of what the business
is trying to do,

339
00:18:01,680 --> 00:18:04,240
and I love how passionate
you're speaking about it.

340
00:18:04,240 --> 00:18:05,800
It's amazing.

341
00:18:05,800 --> 00:18:09,160
I feel like it just needs
probably a lot of education

342
00:18:09,160 --> 00:18:10,160
to get people there.

343
00:18:10,160 --> 00:18:14,560
And, you know, how will I get
my money back from the investment?

344
00:18:14,560 --> 00:18:16,600
That does worry me.

345
00:18:16,600 --> 00:18:19,440
But there's something that really
does excite me about this.

346
00:18:19,440 --> 00:18:20,680
It's a fashion business.

347
00:18:20,680 --> 00:18:21,760
It's my forte.

348
00:18:21,760 --> 00:18:24,720
So, thinking about this...

349
00:18:36,080 --> 00:18:37,280
You...

350
00:18:38,840 --> 00:18:42,840
SARAH: Akanksha Sinha
is seeking $35,000

351
00:18:42,840 --> 00:18:47,040
for a 10% stake in her
embroidered clothing line, Kaasida.

352
00:18:49,200 --> 00:18:53,960
With Sabri Suby, Davie Fogarty
and Robert Herjavec all out,

353
00:18:53,960 --> 00:18:58,920
what will Akanksha's ideal investor,
fashion guru Jane Lu,

354
00:18:58,920 --> 00:19:00,600
think about her business?

355
00:19:01,600 --> 00:19:04,680
I think you have
such a beautiful mission

356
00:19:04,680 --> 00:19:07,120
of what the business
is trying to do.

357
00:19:07,120 --> 00:19:12,120
You're buying not just the product,
but the story and the vision.

358
00:19:13,200 --> 00:19:16,120
But at that price point,

359
00:19:16,120 --> 00:19:18,240
it's going to be quite hard

360
00:19:18,240 --> 00:19:22,320
for this to scale
as an investable business.

361
00:19:22,320 --> 00:19:25,280
It just needs probably a lot
of education to get people there,

362
00:19:25,280 --> 00:19:28,520
and I think
that's going to be quite tough.

363
00:19:28,520 --> 00:19:32,960
And then, at 18 units,
it's also lacking market validation.

364
00:19:32,960 --> 00:19:34,720
So, um...

365
00:19:36,600 --> 00:19:38,880
I'm really sorry,
but for those reasons, I'm out.

366
00:19:38,880 --> 00:19:40,400
That's OK. Thank you.

367
00:19:42,400 --> 00:19:45,560
SARAH: With high costs and low sales,

368
00:19:45,560 --> 00:19:50,560
Akanksha's dreams of an investment
are hanging by a thread.

369
00:19:50,560 --> 00:19:53,880
(SIGHS) Akanksha, I love India.

370
00:19:53,880 --> 00:19:55,000
Love the spirit.

371
00:19:55,000 --> 00:19:56,680
Love the culture.

372
00:19:56,680 --> 00:20:00,720
And I could hear and can feel
the emotion that you have

373
00:20:00,720 --> 00:20:04,240
when you're talking about
supporting women artisans,

374
00:20:04,240 --> 00:20:12,240
and retaining that ancient craft
and knowledge is so important.

375
00:20:14,080 --> 00:20:17,680
But this is not my wheelhouse.

376
00:20:17,680 --> 00:20:22,360
I don't really know anything
about fashion other than wearing it.

377
00:20:24,000 --> 00:20:26,000
So...

378
00:20:27,600 --> 00:20:29,320
..that's kind of where I'm at.

379
00:20:38,080 --> 00:20:39,360
However...

380
00:20:43,920 --> 00:20:45,840
..I like your story.

381
00:20:49,080 --> 00:20:52,440
Love the fact that...
that you're empowering women...

382
00:20:57,840 --> 00:20:59,400
..so I will make you an offer.

383
00:21:03,000 --> 00:21:06,040
I will give you the full amount
you want...

384
00:21:10,280 --> 00:21:11,840
Aww.

385
00:21:11,840 --> 00:21:13,640
Can you not cry?

386
00:21:19,600 --> 00:21:21,240
I will give you the full amount...

387
00:21:21,240 --> 00:21:22,320
(SNIFFLES)

388
00:21:28,120 --> 00:21:29,760
..but for...

389
00:21:32,520 --> 00:21:34,560
..40% of your business.

390
00:21:40,640 --> 00:21:45,640
Thank you so much for believing
in what I'm creating.

391
00:21:45,640 --> 00:21:47,480
And thank you to all of you all.

392
00:21:49,240 --> 00:21:52,800
Catriona, would you consider 30%?

393
00:21:59,600 --> 00:22:01,200
I absolutely will.

394
00:22:02,320 --> 00:22:03,440
I would love to...

395
00:22:03,440 --> 00:22:05,400
Yay!

396
00:22:05,400 --> 00:22:06,760
Great job.

397
00:22:10,560 --> 00:22:12,520
(CATRIONA LAUGHS) Stop it.
Thank you.

398
00:22:12,520 --> 00:22:14,560
Thank you so much.
You're welcome.

399
00:22:16,560 --> 00:22:18,400
It means a lot.

400
00:22:19,560 --> 00:22:21,720
(BOTH SOBBING)

401
00:22:25,000 --> 00:22:27,480
Thank you for believing in me.

402
00:22:30,960 --> 00:22:32,840
(CATRIONA CHUCKLES)
Thank you.

403
00:22:32,840 --> 00:22:34,160
Thank you.
Thank you.

404
00:22:36,840 --> 00:22:40,560
SARAH: An emotional Akanksha
leaves the tank over the moon...

405
00:22:40,560 --> 00:22:42,800
Thank you! Nice to meet you all.

406
00:22:42,800 --> 00:22:45,560
..with a $35,000 investment

407
00:22:45,560 --> 00:22:49,560
and the chance to preserve
the history of her hometown

408
00:22:49,560 --> 00:22:51,600
through her business, Kaasida.

409
00:22:52,840 --> 00:22:54,760
You walk the walk
with your values.

410
00:22:54,760 --> 00:22:57,680
Like, you actually will put
your money where your mouth is.

411
00:22:57,680 --> 00:22:59,800
So, good role model.

412
00:22:59,800 --> 00:23:02,240
JANE: Yeah. Nice one, Cat. Oh!

413
00:23:11,400 --> 00:23:13,520
Wildcat, this is built for you.
Yeah.

414
00:23:15,240 --> 00:23:16,840
AI tool kit!

415
00:23:16,840 --> 00:23:19,920
CATRIONA: OK.
I'm excited to see what this is.

416
00:23:19,920 --> 00:23:21,480
You ready?
Yeah.

417
00:23:21,480 --> 00:23:23,280
SARAH: Next to face the Sharks

418
00:23:23,280 --> 00:23:26,520
is 49-year-old school teacher
James King,

419
00:23:26,520 --> 00:23:28,720
who is looking to teach
some of the Sharks

420
00:23:28,720 --> 00:23:30,760
a thing or two about AI.

421
00:23:31,800 --> 00:23:33,560
What was the question?
I've forgotten the question.

422
00:23:34,720 --> 00:23:36,000
Oops.

423
00:23:36,000 --> 00:23:37,320
Is it real?

424
00:23:37,320 --> 00:23:38,440
PRODUCER: Yeah, it's real.
Ha!

425
00:23:42,600 --> 00:23:45,720
Finally here at Shark Tank,
feeling pumped.

426
00:23:47,520 --> 00:23:48,720
We've come up with a product

427
00:23:48,720 --> 00:23:51,720
that's going to change the way
teachers do business,

428
00:23:51,720 --> 00:23:53,400
saving countless hours,

429
00:23:53,400 --> 00:23:55,760
and it's going to really change
the way kids learn.

430
00:24:10,480 --> 00:24:11,480
Hello, Sharks.

431
00:24:11,480 --> 00:24:16,080
My name is James King, co-founder
of AI Toolkit Proprietary Limited.

432
00:24:16,080 --> 00:24:19,440
The product I'll be presenting today
will be an AI-powered set of tools

433
00:24:19,440 --> 00:24:21,440
for teaching and learning.

434
00:24:21,440 --> 00:24:24,320
I'm asking for an investment
of $250,000

435
00:24:24,320 --> 00:24:27,000
in return for a 10% share
in the company.

436
00:24:27,000 --> 00:24:28,960
Wow.

437
00:24:28,960 --> 00:24:32,560
Having no plan
is definitely planning to fail.

438
00:24:32,560 --> 00:24:34,880
This is never truer
than in teaching.

439
00:24:34,880 --> 00:24:38,640
Teachers, we have to prepare
up to eight lessons a day

440
00:24:38,640 --> 00:24:42,880
across a range of subjects, and
the curriculum is always shifting.

441
00:24:42,880 --> 00:24:44,680
Let me show you something amazing.

442
00:24:49,440 --> 00:24:52,200
I'm going to prepare a lesson plan
in 15 seconds

443
00:24:52,200 --> 00:24:54,320
which gets sent
straight to my email.

444
00:24:54,320 --> 00:24:56,240
You ready for this?
Yep.

445
00:25:03,800 --> 00:25:07,080
So what are you doing?
Can you just walk us through, James?

446
00:25:08,320 --> 00:25:10,160
I can't read that.

447
00:25:10,160 --> 00:25:12,280
What are you selecting there?

448
00:25:13,920 --> 00:25:15,440
It's 15 seconds, guys.

449
00:25:15,440 --> 00:25:16,800
You got to be...
You got to be kidding me.

450
00:25:16,800 --> 00:25:17,840
Alright. Can't talk and work.

451
00:25:17,840 --> 00:25:19,520
Talk and click.
JANE: Whoa, boom.

452
00:25:19,520 --> 00:25:22,320
That 15 seconds, I think less.

453
00:25:22,320 --> 00:25:24,360
We'll take your word for it.

454
00:25:24,360 --> 00:25:26,800
What it's doing behind the scenes
is building a lesson plan

455
00:25:26,800 --> 00:25:29,400
with learning intention,
success criteria,

456
00:25:29,400 --> 00:25:32,880
differentiation strategies,
Indigenous perspectives.

457
00:25:32,880 --> 00:25:34,920
Now, let me demonstrate.

458
00:25:35,960 --> 00:25:39,720
And our first question goes
to our exchange student from the US.

459
00:25:39,720 --> 00:25:40,880
Robert, that's you.

460
00:25:40,880 --> 00:25:42,440
Canada. But OK.

461
00:25:42,440 --> 00:25:44,320
OK. OK. Canada.
(CATRIONA LAUGHS)

462
00:25:44,320 --> 00:25:47,600
What does the term 'investment'
mean?

463
00:25:47,600 --> 00:25:50,320
An investment is any type of vehicle

464
00:25:50,320 --> 00:25:54,520
where you put in a certain amount
of money in order to get a return.

465
00:25:54,520 --> 00:25:57,560
Instantly,
AI Toolkit gives you feedback.

466
00:25:57,560 --> 00:26:00,280
It captures the entire thread
of your interactions

467
00:26:00,280 --> 00:26:03,800
and sends them to the teacher as
evidence of inquiry-based learning.

468
00:26:03,800 --> 00:26:08,920
Catriona, your student profile says
you've dabbled a little bit in AI,

469
00:26:08,920 --> 00:26:11,400
so you might be able to help us
with this next question.

470
00:26:11,400 --> 00:26:13,800
Is AI Toolkit a good investment?

471
00:26:13,800 --> 00:26:16,200
(LAUGHTER)

472
00:26:16,200 --> 00:26:17,720
I guess we'll find out.

473
00:26:17,720 --> 00:26:20,320
AI Toolkit has only existed
for 41 days.

474
00:26:20,320 --> 00:26:22,000
41 days?

475
00:26:22,000 --> 00:26:24,040
At 2.5 mil? OK.

476
00:26:24,040 --> 00:26:27,880
Guys, I've really enjoyed
presenting today.

477
00:26:27,880 --> 00:26:31,400
I'm just keen to answer
any of your questions.

478
00:26:31,400 --> 00:26:33,120
James, thank you so much.

479
00:26:33,120 --> 00:26:37,000
I think this is a great field
that you're entering

480
00:26:37,000 --> 00:26:39,880
and one that I've played in myself.

481
00:26:39,880 --> 00:26:44,960
So who have you joined forces with
to build the AI?

482
00:26:44,960 --> 00:26:47,440
Well, Jeff Aeling is my business
partner, and there's only two of us.

483
00:26:47,440 --> 00:26:48,680
There's no team of engineers.

484
00:26:48,680 --> 00:26:50,880
We haven't slept for a while.

485
00:26:50,880 --> 00:26:52,680
We're 50/50 in the business.

486
00:26:52,680 --> 00:26:55,040
He's tech
with a background in marketing.

487
00:26:55,040 --> 00:26:56,960
I'm education
with a background in tech.

488
00:26:56,960 --> 00:26:59,280
Where is Jeff?
What's his involvement in it?

489
00:26:59,280 --> 00:27:02,240
Someone's got to drive the Ferrari
while I'm up here doing my thing.

490
00:27:02,240 --> 00:27:03,760
Nice.
OK.
So there's only two of us.

491
00:27:03,760 --> 00:27:04,840
So he's, you know, the guy.

492
00:27:04,840 --> 00:27:05,880
OK, so...

493
00:27:05,880 --> 00:27:07,320
So just a little tip.

494
00:27:07,320 --> 00:27:10,040
You're a tech business and
you're doing a tech presentation.

495
00:27:10,040 --> 00:27:12,360
Absolutely have your CTO there,

496
00:27:12,360 --> 00:27:15,280
your chief technology officer there
every time.

497
00:27:15,280 --> 00:27:18,600
Especially if he's a 50/50 partner,
because I might not like Jeff.

498
00:27:18,600 --> 00:27:19,600
(LAUGHS) OK.

499
00:27:19,600 --> 00:27:21,600
I don't know... I don't know Jeff.

500
00:27:21,600 --> 00:27:23,040
But yeah, it's pretty important.

501
00:27:23,040 --> 00:27:24,240
OK.

502
00:27:24,240 --> 00:27:26,200
Do you have any customers?

503
00:27:26,200 --> 00:27:27,600
Not yet.

504
00:27:27,600 --> 00:27:30,440
Have you sold any to a school board?

505
00:27:30,440 --> 00:27:32,240
The...

506
00:27:32,240 --> 00:27:34,520
The answer to that is yes.

507
00:27:34,520 --> 00:27:35,880
I...I...

508
00:27:35,880 --> 00:27:38,760
It sounded like not a solid yes.

509
00:27:38,760 --> 00:27:41,080
I thought you said
you didn't have any sales.

510
00:27:41,080 --> 00:27:43,520
No, we haven't...

511
00:27:43,520 --> 00:27:47,160
When somebody asks you
if you have sales, it's very binary.

512
00:27:47,160 --> 00:27:50,040
It's either yes or no.

513
00:27:50,040 --> 00:27:52,480
Do you have sales
or do you not have sales?

514
00:27:52,480 --> 00:27:53,560
Yes, we have sales.

515
00:27:53,560 --> 00:27:55,360
Alright. How much are your sales?

516
00:27:55,360 --> 00:27:58,240
We have 2,500 users

517
00:27:58,240 --> 00:28:02,240
and we will be invoicing those users
when we deliver the product.

518
00:28:02,240 --> 00:28:04,040
Have they given you an order?

519
00:28:04,040 --> 00:28:07,000
They have given us
an implementation schedule.

520
00:28:07,000 --> 00:28:10,280
And as soon as we've implemented
all of those schools,

521
00:28:10,280 --> 00:28:12,320
we can then invoice that.

522
00:28:12,320 --> 00:28:13,400
That's it.

523
00:28:13,400 --> 00:28:15,720
Yeah, I feel like with every
question that we're asking,

524
00:28:15,720 --> 00:28:17,920
we're just going down
a different rabbit hole, right?

525
00:28:17,920 --> 00:28:22,280
So like, just tell us point blank,
what are the gross sales to date?

526
00:28:22,280 --> 00:28:24,840
Have you charged anyone
through any merchant facilities yet?

527
00:28:24,840 --> 00:28:26,480
No, we have not.
OK.

528
00:28:26,480 --> 00:28:29,040
So, then you don't have any sales.

529
00:28:29,040 --> 00:28:30,640
OK. We don't have any sales.

530
00:28:32,640 --> 00:28:37,280
So, James, what do you plan to do
with the $250,000?

531
00:28:37,280 --> 00:28:39,200
We're looking to upscale
our curriculum wraps.

532
00:28:39,200 --> 00:28:41,320
Where's that cost going?

533
00:28:41,320 --> 00:28:43,360
I develop those curriculum wraps.

534
00:28:43,360 --> 00:28:47,200
So the $250,000 is going to you
for salaries?

535
00:28:47,200 --> 00:28:48,880
Well, I'm a full-time teacher
at the moment.

536
00:28:48,880 --> 00:28:51,080
If I was to get an investor
on board,

537
00:28:51,080 --> 00:28:52,680
then I could move into that role
full time.

538
00:28:52,680 --> 00:28:54,320
And Jeff also.

539
00:28:54,320 --> 00:28:56,360
There aren't too many ways
around it, unfortunately.

540
00:28:56,360 --> 00:28:58,000
But James...
Yes?

541
00:28:58,000 --> 00:29:00,200
I mean, you're working 9 to 3

542
00:29:00,200 --> 00:29:02,280
and you've got AI Tool
for your curriculum,

543
00:29:02,280 --> 00:29:04,280
so you can outsource your curriculum

544
00:29:04,280 --> 00:29:07,520
and then focus all your hours
onto the business.

545
00:29:07,520 --> 00:29:08,680
Good luck on your journey.

546
00:29:08,680 --> 00:29:10,880
But for this business, I'm out.

547
00:29:11,880 --> 00:29:13,320
I really appreciate the comments.

548
00:29:14,400 --> 00:29:18,400
What I have a problem with
is your presentation.

549
00:29:19,680 --> 00:29:22,880
It may have been one of the worst
presentations we've seen.

550
00:29:22,880 --> 00:29:25,800
I don't mean
that you're a bad human being

551
00:29:25,800 --> 00:29:28,880
or you don't believe
in the mission that you have.

552
00:29:28,880 --> 00:29:31,840
We were bouncing all over the map.

553
00:29:31,840 --> 00:29:35,200
I'm like, land the plane, my friend!

554
00:29:36,240 --> 00:29:38,400
I wish you all the best.

555
00:29:38,400 --> 00:29:40,760
Highly confusing presentation.

556
00:29:41,800 --> 00:29:44,280
For that reason, I'm out.

557
00:29:44,280 --> 00:29:45,600
Thank you for the feedback.

558
00:29:45,600 --> 00:29:47,560
I'm going to take that on board
as a professional educator.

559
00:29:47,560 --> 00:29:50,360
Yeah, I'll jump in
and clear the room as well.

560
00:29:50,360 --> 00:29:51,920
I wouldn't be able
to work with someone

561
00:29:51,920 --> 00:29:54,640
that it's a constant
thousand different questions

562
00:29:54,640 --> 00:29:56,640
just to get a simple answer
out of them.

563
00:29:56,640 --> 00:29:58,680
So for those reasons, I'm out.

564
00:29:58,680 --> 00:30:00,920
I appreciate it.

565
00:30:00,920 --> 00:30:04,800
Sometimes we get very smart people
pitching to us

566
00:30:04,800 --> 00:30:08,080
and they don't simplify things
enough

567
00:30:08,080 --> 00:30:10,640
that you can understand
in such a short period of time.

568
00:30:10,640 --> 00:30:15,400
You just didn't explain the main
use cases, the monetisation method.

569
00:30:15,400 --> 00:30:17,760
Unfortunately,
I just don't think I can help you.

570
00:30:17,760 --> 00:30:20,320
So for those reasons, I'm out.

571
00:30:20,320 --> 00:30:22,000
Thanks, David.
I appreciate the comments.

572
00:30:24,680 --> 00:30:25,960
Cat? You're the only one left.

573
00:30:25,960 --> 00:30:27,520
It's up to me.
Yeah.

574
00:30:27,520 --> 00:30:29,040
You probably understood the products.
Yeah.

575
00:30:29,040 --> 00:30:31,680
So I have to say, James,

576
00:30:31,680 --> 00:30:34,880
I know pretty well
what the application is

577
00:30:34,880 --> 00:30:37,440
and how useful
it will be to teachers.

578
00:30:39,960 --> 00:30:43,920
You've got so much
energy and enthusiasm,

579
00:30:43,920 --> 00:30:46,000
but not a lot
of start-up experience.

580
00:30:46,000 --> 00:30:48,360
Hence you don't tell an investor

581
00:30:48,360 --> 00:30:50,640
that you're going to use their money
for your salary.

582
00:30:50,640 --> 00:30:52,080
Not yet. Not yet.

583
00:30:52,080 --> 00:30:54,360
Your valuation is insane.

584
00:30:54,360 --> 00:30:57,240
And this is what breaks my heart
when I see entrepreneurs

585
00:30:57,240 --> 00:31:00,120
who haven't gone out
and got advice to say,

586
00:31:00,120 --> 00:31:02,320
"What is a realistic valuation?"

587
00:31:02,320 --> 00:31:08,280
Catriona, I did come with, you know,
figures that don't make sense.

588
00:31:08,280 --> 00:31:09,720
I get that.

589
00:31:09,720 --> 00:31:12,600
But I think you wouldn't be
investing in a product.

590
00:31:12,600 --> 00:31:15,280
You'd be investing in every
frontline teacher in Australia

591
00:31:15,280 --> 00:31:17,000
who is saying, "I hope..."
No, that's not true.

592
00:31:17,000 --> 00:31:18,600
That's not true. Come on, man.

593
00:31:18,600 --> 00:31:19,680
You're asking for it.

594
00:31:19,680 --> 00:31:21,240
Come on. Don't give me that.

595
00:31:21,240 --> 00:31:22,640
Don't make it about the teachers.

596
00:31:22,640 --> 00:31:24,080
You have a responsibility

597
00:31:24,080 --> 00:31:27,720
when you're asking for real money
to present a real business.

598
00:31:27,720 --> 00:31:30,080
I did not not invest in teachers.

599
00:31:32,440 --> 00:31:35,000
I did not invest in your business.

600
00:31:35,000 --> 00:31:36,320
Let's just be clear on that.

601
00:31:37,720 --> 00:31:38,800
James,

602
00:31:38,800 --> 00:31:41,360
there's a certain formula
for doing a pitch.

603
00:31:41,360 --> 00:31:43,720
You didn't have it today.

604
00:31:43,720 --> 00:31:47,880
For those reasons, I'm out.

605
00:31:47,880 --> 00:31:50,520
41 days in, the opportunity presents

606
00:31:50,520 --> 00:31:53,360
and I just really had to show you
the product

607
00:31:53,360 --> 00:31:54,680
and hope it would be enough.

608
00:31:54,680 --> 00:31:58,480
And it wasn't. And it's...
I feel bad that was the case.

609
00:31:58,480 --> 00:32:00,480
But, you know, to some respect...

610
00:32:00,480 --> 00:32:01,840
(LAUGHS)

611
00:32:01,840 --> 00:32:03,320
You do have a choice.

612
00:32:03,320 --> 00:32:05,560
That's the great thing about a
business. You always have a choice.

613
00:32:05,560 --> 00:32:07,000
Let me give you an option.

614
00:32:07,000 --> 00:32:08,840
Hi, Sharks.
(LAUGHS)

615
00:32:08,840 --> 00:32:10,360
My name is James.

616
00:32:10,360 --> 00:32:11,840
I'm a world-class teacher.

617
00:32:11,840 --> 00:32:16,280
I've created an incredible curriculum
on top of ChatGPT.

618
00:32:16,280 --> 00:32:20,000
It's very early, but I think
we have one of the best curriculums

619
00:32:20,000 --> 00:32:21,800
on the best technology
that's out there.

620
00:32:21,800 --> 00:32:24,760
It's early stage,
let me tell you that right now.

621
00:32:24,760 --> 00:32:28,200
I'm looking for seed money
of $100,000

622
00:32:28,200 --> 00:32:31,920
so that we can launch this
and find a way to revenue.

623
00:32:31,920 --> 00:32:34,280
You don't have to ask for the moon
right away.

624
00:32:34,280 --> 00:32:36,080
You could have asked
for a smaller amount of money

625
00:32:36,080 --> 00:32:37,320
and I would have been in.

626
00:32:37,320 --> 00:32:38,680
I really believe in teachers.

627
00:32:38,680 --> 00:32:39,800
Hey, Rob. Rob, the door.

628
00:32:39,800 --> 00:32:40,960
That door can open.

629
00:32:40,960 --> 00:32:42,360
I can go out
and give it another shot.

630
00:32:42,360 --> 00:32:43,640
(LAUGHTER)

631
00:32:43,640 --> 00:32:45,400
We got time for this.
That's not how this works.

632
00:32:45,400 --> 00:32:47,160
I know, I know, I know.
So I was just joking.

633
00:32:47,160 --> 00:32:48,520
Thanks, James.
Yeah, thank you.

634
00:32:48,520 --> 00:32:49,640
Go out and prove us wrong.

635
00:32:49,640 --> 00:32:51,200
Prove us wrong, James.
Go get 'em.

636
00:32:51,200 --> 00:32:52,360
Good luck.

637
00:32:52,360 --> 00:32:54,600
SARAH: After an unclear pitch,

638
00:32:54,600 --> 00:32:59,080
a defeated James walks
out of the tank with nothing.

639
00:32:59,080 --> 00:33:01,640
That was well said, Cat.
JANE: Yeah. Very well said.

640
00:33:01,640 --> 00:33:04,720
People need to realise we're here
to make real investments...

641
00:33:04,720 --> 00:33:06,360
100%.
..with our own money.

642
00:33:06,360 --> 00:33:07,520
That was brutal.

643
00:33:07,520 --> 00:33:09,360
It's a business thing.
This is Shark Tank.

644
00:33:09,360 --> 00:33:13,320
But I think
they have missed the real value.

645
00:33:13,320 --> 00:33:14,920
They should stand in my shoes
for a day

646
00:33:14,920 --> 00:33:17,160
and see how valuable
it really can be.

647
00:33:18,400 --> 00:33:19,760
Coming up...

648
00:33:19,760 --> 00:33:20,880
(LAUGHTER)

649
00:33:20,880 --> 00:33:24,240
..the Beanies
make a splash in the tank.

650
00:33:24,240 --> 00:33:26,200
And with high expectations...

651
00:33:26,200 --> 00:33:29,560
The Wiggles are rumoured to bring in
between 20 and 50 million a year.

652
00:33:29,560 --> 00:33:31,520
46 million last year.

653
00:33:31,520 --> 00:33:33,040
What do you pay yourself?

654
00:33:33,040 --> 00:33:34,360
20 bucks an hour.

655
00:33:34,360 --> 00:33:38,320
..will their dreams of an investment
come crashing down?

656
00:33:38,320 --> 00:33:41,040
I don't think
you're worth 1.5 million.

657
00:33:47,960 --> 00:33:49,160
OK, so we're ready.

658
00:33:49,160 --> 00:33:51,120
We're feeling good.
Ready for the Shark Tank.

659
00:33:51,120 --> 00:33:52,120
Yeah.
Yeah.

660
00:33:54,360 --> 00:33:56,560
SARAH: Making their way
into the tank next

661
00:33:56,560 --> 00:34:01,080
is a trio of children's entertainers
from Sydney.

662
00:34:01,080 --> 00:34:04,320
They're hoping they can sing
and dance their way

663
00:34:04,320 --> 00:34:06,240
to a perfect pitch.

664
00:34:08,240 --> 00:34:12,840
Assuming this looks like a
children's entertainment something,

665
00:34:12,840 --> 00:34:14,360
what's big in the US at the moment?

666
00:34:14,360 --> 00:34:15,880
Have you guys heard of the Wiggles?

667
00:34:15,880 --> 00:34:17,520
Nah.
(LAUGHS)

668
00:34:17,520 --> 00:34:19,400
It must be an American thing.

669
00:34:19,400 --> 00:34:21,120
The Wiggles are huge.

670
00:34:21,120 --> 00:34:22,960
Still?
Wow.
Yeah.

671
00:34:22,960 --> 00:34:24,560
CoComelon is huge. As you know.

672
00:34:24,560 --> 00:34:25,880
Huge. CoComelon. Yeah.

673
00:34:25,880 --> 00:34:27,840
Blippi is massive.

674
00:34:27,840 --> 00:34:30,240
They just sold it for $2 billion.

675
00:34:30,240 --> 00:34:32,920
Game faces on, Beanies.

676
00:34:34,440 --> 00:34:36,040
Let's do this, Beans.
Let's do it.

677
00:34:36,040 --> 00:34:37,040
(LAUGHS)

678
00:34:39,560 --> 00:34:42,000
(LAUGHTER)
JANE: Wow!

679
00:34:44,600 --> 00:34:45,800
It's nice.

680
00:34:48,120 --> 00:34:50,040
Whoa!
Whoa!

681
00:34:53,360 --> 00:34:55,360
Hi, Mini Beanies,

682
00:34:55,360 --> 00:34:58,040
baby sharks and big people
watching at home on telly.

683
00:34:58,040 --> 00:35:00,640
We're the Beanies.
That means you're with Laura...

684
00:35:00,640 --> 00:35:02,240
Mim...
And Michael.

685
00:35:02,240 --> 00:35:03,440
Who forgot to read the brief.

686
00:35:03,440 --> 00:35:04,720
I did read the brief.

687
00:35:04,720 --> 00:35:06,240
What did it say?

688
00:35:06,240 --> 00:35:07,480
Shark Tank.

689
00:35:08,760 --> 00:35:11,400
Did you read any further
than the top line?

690
00:35:13,360 --> 00:35:14,520
No.

691
00:35:14,520 --> 00:35:15,640
(LAUGHS)

692
00:35:16,920 --> 00:35:18,160
That's OK. Um...

693
00:35:18,160 --> 00:35:21,240
Laura is going to hand you a ribbon,

694
00:35:21,240 --> 00:35:23,840
and I have a very handy diagram
on how to use it.

695
00:35:23,840 --> 00:35:28,640
So you're going to wave your ribbon
left to right in approval.

696
00:35:28,640 --> 00:35:33,040
Yes. And wave it right to left
in disapproval.

697
00:35:33,040 --> 00:35:34,800
What? Oh, look, they love it.

698
00:35:34,800 --> 00:35:36,560
Approval.
They love it. They love it.

699
00:35:36,560 --> 00:35:39,120
It's...so confusing.

700
00:35:39,120 --> 00:35:41,080
Well done.

701
00:35:41,080 --> 00:35:43,440
So we are them that make content
for Mini Beanies

702
00:35:43,440 --> 00:35:45,440
aged 3 to 8 years old.

703
00:35:45,440 --> 00:35:50,320
You might recognise us
from the televisual communications,

704
00:35:50,320 --> 00:35:52,240
your ear holes...

705
00:35:52,240 --> 00:35:53,520
(SABRI LAUGHS)

706
00:35:53,520 --> 00:35:54,880
..your eye holes...

707
00:35:56,200 --> 00:35:58,760
And stuck inside your child's iPad
at the restaurant.

708
00:35:58,760 --> 00:36:01,920
That's right. Our mission
is to be every child's best friend.

709
00:36:01,920 --> 00:36:03,120
And you might be thinking,

710
00:36:03,120 --> 00:36:06,520
"What do these kids' entertainers
know about business?"

711
00:36:06,520 --> 00:36:08,240
And the answer is...

712
00:36:08,240 --> 00:36:10,160
Something.
It's not really that much.

713
00:36:10,160 --> 00:36:12,520
Googled it once.
(LAUGHTER)

714
00:36:12,520 --> 00:36:14,920
Beanies are the next big thing
in kids' entertainment.

715
00:36:14,920 --> 00:36:16,520
And here's why.

716
00:36:16,520 --> 00:36:17,520
Why?

717
00:36:17,520 --> 00:36:20,600
Our music video clips have been
streamed heaps of times on ABC TV.

718
00:36:20,600 --> 00:36:23,040
We can't say exactly how many,
but it's heaps. Pinky promise.

719
00:36:23,040 --> 00:36:24,080
Yeah.

720
00:36:24,080 --> 00:36:25,480
And our award-winning podcast

721
00:36:25,480 --> 00:36:28,560
has been downloaded
over 1.5 million times,

722
00:36:28,560 --> 00:36:30,680
and that's not including
the repeat listens.

723
00:36:30,680 --> 00:36:33,600
And our twice ARIA-nominated music

724
00:36:33,600 --> 00:36:36,000
has been streamed
over 8 million times,

725
00:36:36,000 --> 00:36:38,080
3 million
just in the last year alone.

726
00:36:38,080 --> 00:36:42,920
And since we started, the Beanies
have done over 350 shows.

727
00:36:42,920 --> 00:36:44,800
(LAUGHS)
ALL: We're tired.

728
00:36:44,800 --> 00:36:46,320
(LAUGHTER)

729
00:36:46,320 --> 00:36:49,240
The Beanies
have six different income streams.

730
00:36:49,240 --> 00:36:50,600
Let's count them.

731
00:36:50,600 --> 00:36:52,760
BEANIES: One, two,

732
00:36:52,760 --> 00:36:54,600
three, four,

733
00:36:54,600 --> 00:36:56,440
five, six...
Six!

734
00:36:56,440 --> 00:36:58,080
..income streams.

735
00:36:58,080 --> 00:36:59,520
Yeah. Thank you. Yeah.

736
00:36:59,520 --> 00:37:01,160
And they're always growing.

737
00:37:01,160 --> 00:37:04,040
These are the audience
and stream numbers in growth

738
00:37:04,040 --> 00:37:05,960
for the last 12 months.
Mm-hm.

739
00:37:05,960 --> 00:37:08,760
We are experts
at making stuff for kids.

740
00:37:08,760 --> 00:37:11,400
And you're experts
at making stuff for money.

741
00:37:11,400 --> 00:37:12,400
(LAUGHTER)
So...

742
00:37:12,400 --> 00:37:13,520
Wait, wait, wait, wait, wait.

743
00:37:13,520 --> 00:37:14,840
Beanie huddle.
Just two seconds.

744
00:37:14,840 --> 00:37:17,000
Just one second. One second.

745
00:37:17,000 --> 00:37:18,400
One second, one second.

746
00:37:18,400 --> 00:37:19,640
We would like...

747
00:37:22,240 --> 00:37:24,080
(LAUGHTER)

748
00:37:24,080 --> 00:37:27,960
$150,000 for 10% equity
in our business, pretty please.

749
00:37:27,960 --> 00:37:30,200
Oh, that sounds really good.
Oh, wow. That's a great idea, guys.

750
00:37:30,200 --> 00:37:32,240
I'm going to give them
even more money. I like 'em.

751
00:37:32,240 --> 00:37:33,680
Shh. Quiet, everyone.

752
00:37:33,680 --> 00:37:37,360
With this investment, we will
be able to jump in at full speed

753
00:37:37,360 --> 00:37:41,120
and make more shows,
more videos and more songs

754
00:37:41,120 --> 00:37:43,040
just like this one.

755
00:37:43,040 --> 00:37:44,040
Ready?

756
00:37:45,320 --> 00:37:46,320
# We're the Beanies

757
00:37:46,320 --> 00:37:49,600
# Welcome to our great
Shark Tank business pitch

758
00:37:49,600 --> 00:37:51,440
# We're the Beanies

759
00:37:51,440 --> 00:37:52,760
# You should invest in us

760
00:37:52,760 --> 00:37:55,360
# And please don't be a...
Mean person.

761
00:37:55,360 --> 00:37:57,920
# Sabri Suby, Dr Cat

762
00:37:57,920 --> 00:38:00,480
# David, Jane and Herjavec
(SQUEALS)

763
00:38:00,480 --> 00:38:02,680
# We're gonna make $1 billion here

764
00:38:02,680 --> 00:38:04,560
# You'll see returns
in just one year

765
00:38:04,560 --> 00:38:05,680
Maybe.

766
00:38:05,680 --> 00:38:07,600
# Invest in beanies, don't delay

767
00:38:07,600 --> 00:38:09,760
# And have a Beanie-rific day. #

768
00:38:11,160 --> 00:38:12,960
(CHEERING AND APPLAUSE)

769
00:38:12,960 --> 00:38:15,960
Bravo! Bravo! Bravo!

770
00:38:15,960 --> 00:38:16,960
Thanks!

771
00:38:16,960 --> 00:38:18,600
Best pitch.
That was amazing.

772
00:38:18,600 --> 00:38:19,800
Wow.

773
00:38:19,800 --> 00:38:23,840
Best pitch on Shark Tank Australia
ever!

774
00:38:23,840 --> 00:38:25,400
SABRI: Boom!
Thank you.

775
00:38:25,400 --> 00:38:27,200
Do we get a gold star?
Yes.

776
00:38:27,200 --> 00:38:28,520
You get a sticker.

777
00:38:28,520 --> 00:38:29,800
Ooh. Yes!

778
00:38:29,800 --> 00:38:32,000
Hey, Beanies. I'm Sabri.
Hello. Hi, Sabri.

779
00:38:32,000 --> 00:38:33,120
So run us through.

780
00:38:33,120 --> 00:38:35,280
How did you guys become the Beanies?

781
00:38:35,280 --> 00:38:36,800
Uh, well, we started...

782
00:38:36,800 --> 00:38:39,520
We were all musical theatre
performers by trade,

783
00:38:39,520 --> 00:38:41,520
and we were all getting cast
in kids' stuff,

784
00:38:41,520 --> 00:38:43,440
and we kind of met doing that.

785
00:38:43,440 --> 00:38:46,240
And the Beanies was born
about seven years ago.

786
00:38:46,240 --> 00:38:48,240
When you guys came in, I was like,

787
00:38:48,240 --> 00:38:50,360
"Oh, my God, cha-ching!"

788
00:38:50,360 --> 00:38:52,480
Are you guys full time?

789
00:38:52,480 --> 00:38:54,560
Almost. We've got a couple
of little side projects,

790
00:38:54,560 --> 00:38:58,440
but the focus is to be full time
within the next 12 months.

791
00:38:58,440 --> 00:39:00,800
I'm Davie.
That was a really good pitch.

792
00:39:00,800 --> 00:39:02,880
My cheeks actually hurt
from smiling so much.

793
00:39:02,880 --> 00:39:04,120
I actually felt like a toddler
again.

794
00:39:04,120 --> 00:39:06,360
So it was really, really engaging.
Again?

795
00:39:06,360 --> 00:39:07,640
Tell me... (LAUGHS)

796
00:39:07,640 --> 00:39:09,600
Tell me about the business side
of things,

797
00:39:09,600 --> 00:39:11,680
because there's a lot of numbers
up there.

798
00:39:11,680 --> 00:39:13,320
Where's your main focus?

799
00:39:13,320 --> 00:39:18,040
We currently make approximately
how many podcast episodes a year?

800
00:39:18,040 --> 00:39:19,760
Like..
38 in a year.

801
00:39:19,760 --> 00:39:22,880
And we also usually write one to two
albums a year and create those.

802
00:39:22,880 --> 00:39:24,480
And this is just the three of us.

803
00:39:24,480 --> 00:39:28,920
We also probably create 5 to 10
new YouTube at the moment,

804
00:39:28,920 --> 00:39:31,480
and then we also make TV content.

805
00:39:31,480 --> 00:39:33,200
That is so much.
So just between the three of us...

806
00:39:33,200 --> 00:39:34,840
We have a lot of capacity.
We make so much.

807
00:39:34,840 --> 00:39:36,080
How are you doing that?

808
00:39:37,400 --> 00:39:41,360
You have a show,
but it's not converting.

809
00:39:42,880 --> 00:39:47,440
Well, when we say TV show,
it's like a music video clip

810
00:39:47,440 --> 00:39:49,560
that only goes
for about two minutes.

811
00:39:49,560 --> 00:39:52,000
So it's not like a full feature...

812
00:39:52,000 --> 00:39:53,920
Oh, you don't have, like,
a half hour...?

813
00:39:53,920 --> 00:39:55,000
No.
No.

814
00:39:56,440 --> 00:39:59,160
SARAH: With the business
not quite what it seems,

815
00:39:59,160 --> 00:40:04,320
Jane is keen to understand just how
successful their online content is.

816
00:40:04,320 --> 00:40:06,600
How many subscribers
do you have on YouTube?

817
00:40:06,600 --> 00:40:09,840
Subscribers are only at about 2,000
at the moment.

818
00:40:10,880 --> 00:40:12,480
So let's get into that.

819
00:40:12,480 --> 00:40:15,240
What's your watch time per month?

820
00:40:15,240 --> 00:40:16,760
I'm not...

821
00:40:16,760 --> 00:40:19,040
BOTH: That's a really good question.

822
00:40:19,040 --> 00:40:20,160
Ahem!

823
00:40:21,080 --> 00:40:23,120
# We don't have
the answer to that. #

824
00:40:23,120 --> 00:40:24,880
(LAUGHTER)

825
00:40:24,880 --> 00:40:27,920
That was the most honest response
to that.

826
00:40:27,920 --> 00:40:29,600
(LAUGHTER)

827
00:40:29,600 --> 00:40:32,480
How many kids come to the show?

828
00:40:32,480 --> 00:40:34,240
Give me a rough idea of attendance.

829
00:40:34,240 --> 00:40:35,640
If it's a theatre show,

830
00:40:35,640 --> 00:40:37,440
which is what we've been touring
for the last year,

831
00:40:37,440 --> 00:40:39,680
between 300 and 500 people
would usually come,

832
00:40:39,680 --> 00:40:42,120
and that's usually the capacity
of the theatres we've been.

833
00:40:42,120 --> 00:40:44,240
So what do you pay yourself?

834
00:40:44,240 --> 00:40:46,320
So currently we pay ourselves a...

835
00:40:46,320 --> 00:40:47,800
It's not on your hand.
Oh.

836
00:40:47,800 --> 00:40:51,000
We pay ourselves
a really nominal fee.

837
00:40:51,000 --> 00:40:52,000
How much?

838
00:40:52,000 --> 00:40:53,400
20 bucks an hour.
20 bucks an hour.

839
00:40:55,440 --> 00:40:57,720
I'm trying to figure out
why it's not working.

840
00:40:57,720 --> 00:40:59,640
Because you are fantastic.

841
00:40:59,640 --> 00:41:03,560
I think they just haven't found
a scalable method of content

842
00:41:03,560 --> 00:41:04,560
that monetises.

843
00:41:04,560 --> 00:41:07,520
No...
Or the content itself

844
00:41:07,520 --> 00:41:10,080
isn't emotionally engaging enough
to monetise later.

845
00:41:10,080 --> 00:41:13,280
Like, because YouTube,
they're clearly not going viral.

846
00:41:13,280 --> 00:41:14,960
SARAH: With the Sharks questioning

847
00:41:14,960 --> 00:41:17,680
why the group isn't connecting
with their audiences,

848
00:41:17,680 --> 00:41:20,560
Sabri Suby has heard enough.

849
00:41:20,560 --> 00:41:23,280
Look, guys, let me tell you
where I stand with this.

850
00:41:23,280 --> 00:41:25,920
I believe that the market
doesn't lie.

851
00:41:25,920 --> 00:41:29,360
You've put your content out
a lot of different places.

852
00:41:29,360 --> 00:41:30,720
Something's just not hitting.

853
00:41:30,720 --> 00:41:32,440
Something's just not connecting.

854
00:41:32,440 --> 00:41:34,360
So this isn't a business for me.

855
00:41:34,360 --> 00:41:35,520
I'm out.

856
00:41:37,560 --> 00:41:39,840
# We're so sad

857
00:41:39,840 --> 00:41:41,640
# But we're not mad

858
00:41:41,640 --> 00:41:43,080
# It's your loss. #

859
00:41:43,080 --> 00:41:45,240
(LAUGHTER)

860
00:41:45,240 --> 00:41:47,600
Thank you, though.
Thank you. (LAUGHS)

861
00:41:47,600 --> 00:41:49,920
I think I've figured it out.

862
00:41:51,040 --> 00:41:52,280
JANE: Ha ha!

863
00:41:52,280 --> 00:41:53,720
Do you want to come sit
in the villain chair?

864
00:41:53,720 --> 00:41:54,880
Yes!

865
00:41:56,600 --> 00:41:58,560
Oh, you need the cat.
Yeah, you've got to pat the cat.

866
00:41:58,560 --> 00:41:59,640
Dr Evil.

867
00:41:59,640 --> 00:42:02,720
Give me $1 billion, Sharks!

868
00:42:02,720 --> 00:42:03,920
(LAUGHS EVILLY)

869
00:42:03,920 --> 00:42:06,240
I think I've figured it out.
OK.

870
00:42:06,240 --> 00:42:08,920
This is why I'm such a smart Shark.
(LAUGHS)

871
00:42:08,920 --> 00:42:11,640
No, all joking aside,
you're overproducing.

872
00:42:11,640 --> 00:42:14,480
There's too many messages,
too many ponds.

873
00:42:14,480 --> 00:42:17,160
It's slowing down your ability
to create more content.

874
00:42:17,160 --> 00:42:18,600
Find the winning formula.

875
00:42:18,600 --> 00:42:21,960
Because if you can get people
glued to your YouTube,

876
00:42:21,960 --> 00:42:23,440
everything else will follow.

877
00:42:23,440 --> 00:42:28,040
Yeah, and that's really what we want
to focus on with your help.

878
00:42:28,040 --> 00:42:29,160
Yeah.

879
00:42:29,160 --> 00:42:33,240
So, Beanies,
I, of course, do AI and metaverse,

880
00:42:33,240 --> 00:42:36,120
and of the top three
use cases for the metaverse,

881
00:42:36,120 --> 00:42:38,600
number one is entertainment.

882
00:42:38,600 --> 00:42:41,120
Once you've nailed
what your niche is here,

883
00:42:41,120 --> 00:42:44,600
also start to think about
new channels

884
00:42:44,600 --> 00:42:46,640
and potentially doing something

885
00:42:46,640 --> 00:42:49,360
in augmented reality
or virtual reality.

886
00:42:49,360 --> 00:42:52,640
But until you're at that stage
of development,

887
00:42:52,640 --> 00:42:55,400
unfortunately I'm out.

888
00:42:55,400 --> 00:42:58,280
# That's so sad

889
00:42:58,280 --> 00:43:00,160
# We're not mad

890
00:43:00,160 --> 00:43:01,800
# It's your loss. #

891
00:43:01,800 --> 00:43:04,840
SARAH: With no offers on the table
so far...

892
00:43:04,840 --> 00:43:07,480
It's getting sadder.
A little ironic.

893
00:43:07,480 --> 00:43:08,800
Are you sure you're not mad?

894
00:43:08,800 --> 00:43:10,520
(LAUGHTER)
We're not mad!

895
00:43:12,440 --> 00:43:14,400
..will the three remaining Sharks

896
00:43:14,400 --> 00:43:19,080
end up dancing to the beat
of the Beanies' drum?

897
00:43:23,920 --> 00:43:26,960
Watch everyday Aussies
go after their business dreams

898
00:43:26,960 --> 00:43:30,960
with full episodes of Shark Tank
Australia on 10 Play.

899
00:43:40,040 --> 00:43:43,960
Children's entertainment group,
the Beanies, have come into the tank

900
00:43:43,960 --> 00:43:50,600
looking for a $150,000 investment
for a 10% share in their business.

901
00:43:52,200 --> 00:43:54,240
I love you guys.

902
00:43:54,240 --> 00:43:56,880
The opportunity is definitely there.

903
00:43:56,880 --> 00:43:59,680
But then you've only got
2,000 YouTube followers.

904
00:43:59,680 --> 00:44:03,400
So I'm like,
is there market validation...

905
00:44:03,400 --> 00:44:05,080
The market validation's there.

906
00:44:05,080 --> 00:44:07,080
It's just they haven't cracked it.

907
00:44:07,080 --> 00:44:09,640
The model is so proven, it's just...

908
00:44:09,640 --> 00:44:12,120
Well, they have cracked it

909
00:44:12,120 --> 00:44:14,400
and look how many shows
they're doing.

910
00:44:18,760 --> 00:44:23,240
You're asking for 150,000 for 10%,

911
00:44:23,240 --> 00:44:28,280
implying your business is worth
1.5 million.

912
00:44:31,720 --> 00:44:34,680
I don't think
you're worth 1.5 million.

913
00:44:34,680 --> 00:44:38,200
I think you have
tremendous potential.

914
00:44:38,200 --> 00:44:43,480
But the valuation
is just a song and a dance.

915
00:44:43,480 --> 00:44:46,080
A pretty good song and a dance.
(LAUGHS)

916
00:44:46,080 --> 00:44:47,880
I thought so.
The other way we figured that out

917
00:44:47,880 --> 00:44:50,680
was actually using the Wiggles
as a guide.

918
00:44:50,680 --> 00:44:54,520
So the Wiggles are rumoured to bring
in between 20 and 50 million a year.

919
00:44:54,520 --> 00:44:56,160
46 million last year.

920
00:44:56,160 --> 00:44:57,200
Great.

921
00:44:57,200 --> 00:45:00,600
Well, I kind of figured it out on
the 20 million conservative number,

922
00:45:00,600 --> 00:45:03,480
and that would mean
we would be taking in about 2%.

923
00:45:03,480 --> 00:45:06,280
So I based it on a 1% valuation.

924
00:45:07,960 --> 00:45:09,000
You can't do that.

925
00:45:10,400 --> 00:45:11,880
Every business, when it grows,

926
00:45:11,880 --> 00:45:13,960
gets to a point
where your value increases.

927
00:45:13,960 --> 00:45:15,320
And you know why that is?

928
00:45:15,320 --> 00:45:16,360
Why do you think that is?

929
00:45:16,360 --> 00:45:19,920
Why do bigger businesses
typically get greater multiples

930
00:45:19,920 --> 00:45:20,960
than really small businesses?

931
00:45:20,960 --> 00:45:22,000
Why do you think?

932
00:45:22,000 --> 00:45:23,360
Because it's real?

933
00:45:23,360 --> 00:45:24,520
Oh, you're real.

934
00:45:24,520 --> 00:45:26,320
Risk. It de-risks it.

935
00:45:28,200 --> 00:45:32,000
The risk is very high
for where the business is.

936
00:45:32,000 --> 00:45:34,680
SARAH: With two sharks already out,

937
00:45:34,680 --> 00:45:41,200
is Jane Lu willing to invest the
$150,000 the trio is looking for?

938
00:45:42,400 --> 00:45:44,280
I do love you guys, so...

939
00:45:44,280 --> 00:45:46,400
OK. I have a proposal.

940
00:45:47,760 --> 00:45:51,040
Ooh!
150 K that you're asking for...

941
00:45:52,000 --> 00:45:53,240
..but...

942
00:45:56,160 --> 00:45:58,920
..I would like...

943
00:45:58,920 --> 00:46:01,360
..to be the fourth Beanie

944
00:46:01,360 --> 00:46:05,160
with the other two Sharks
in the business.

945
00:46:08,000 --> 00:46:10,200
Are you in? Are you out?

946
00:46:10,200 --> 00:46:12,400
Jane, I would love to do this deal
with you

947
00:46:12,400 --> 00:46:14,600
because I think
we relate to the audience

948
00:46:14,600 --> 00:46:19,080
and I do think
we want to blow it up really quickly.

949
00:46:19,080 --> 00:46:21,120
So I'd love to have you in it,
Davie.

950
00:46:21,120 --> 00:46:22,760
Yeah, I can help with the YouTube.

951
00:46:22,760 --> 00:46:23,880
That sounds good.

952
00:46:23,880 --> 00:46:25,520
(FEIGN MURMURING)
Let's do it.

953
00:46:25,520 --> 00:46:27,120
I think that's a good idea.
But...

954
00:46:28,640 --> 00:46:30,280
..it's not enough equity.

955
00:46:32,000 --> 00:46:33,760
How much would you want?

956
00:46:37,480 --> 00:46:39,640
You guys go be artists.
Write content.

957
00:46:39,640 --> 00:46:42,280
We will help you write the business
and we'll blow this thing up.

958
00:46:42,280 --> 00:46:47,960
150,000 for 50%
and you get three Sharks.

959
00:46:51,880 --> 00:46:55,360
We're so sorry to say,
50% is just a bit too much.

960
00:46:58,680 --> 00:47:02,040
If you would consider 40,
we would be happy to go ahead.

961
00:47:05,760 --> 00:47:07,640
We'll let Robert decide.

962
00:47:09,200 --> 00:47:11,160
And we'll give you the...
we'll give you the cat.

963
00:47:11,160 --> 00:47:12,200
And the ribbon.

964
00:47:13,280 --> 00:47:14,560
Well, you never said that before.

965
00:47:14,560 --> 00:47:16,080
(LAUGHTER)

966
00:47:16,080 --> 00:47:17,160
Um...

967
00:47:17,160 --> 00:47:18,400
We really do want your help,

968
00:47:18,400 --> 00:47:20,960
but we're also juggling
three opinions up here as well.

969
00:47:20,960 --> 00:47:22,480
Um...

970
00:47:25,600 --> 00:47:31,400
I would consider giving you
the ability to buy back 10%

971
00:47:31,400 --> 00:47:32,640
at a future value.

972
00:47:33,840 --> 00:47:35,800
Oh!
It's good. It's clever.

973
00:47:35,800 --> 00:47:37,560
That's brilliant.
Wish I thought of it.

974
00:47:44,000 --> 00:47:45,160
Let's do it!

975
00:47:45,160 --> 00:47:47,640
(CHEERING)

976
00:47:47,640 --> 00:47:50,440
SARAH: A happy ending for the Beanies
in the Shark Tank...

977
00:47:50,440 --> 00:47:51,520
Let's all go to the aquarium!

978
00:47:51,520 --> 00:47:53,960
(CHEERING, SQUEALING)

979
00:47:53,960 --> 00:47:57,080
..with a $150,000 investment

980
00:47:57,080 --> 00:48:01,200
from Robert Herjavec,
Jane Lu and Davie Fogarty

981
00:48:01,200 --> 00:48:04,360
for a stake in their
children's entertainment brand.

982
00:48:04,360 --> 00:48:06,200
ALL: (SING)
# Make $1 billion here... #

983
00:48:06,200 --> 00:48:09,320
Now, that's something to sing about.

984
00:48:09,320 --> 00:48:11,120
# And have a Beanie-rific day. #

985
00:48:12,360 --> 00:48:14,480
CATRIONA: Bye, Beanies.
Yay!

986
00:48:14,480 --> 00:48:16,280
Bye, Beanies.
DAVIE: See ya.
JANE: Oh, my God.

987
00:48:17,360 --> 00:48:19,000
Well done, guys.

988
00:48:19,000 --> 00:48:21,440
We're in the entertainment business!

989
00:48:21,440 --> 00:48:22,880
Whoo!
Whoo!

990
00:48:22,880 --> 00:48:24,360
(LAUGHS INCREDULOUSLY)

991
00:48:24,360 --> 00:48:25,480
Ha!

992
00:48:25,480 --> 00:48:26,800
That was fun.

993
00:48:26,800 --> 00:48:28,520
What a good pitch.

994
00:48:28,520 --> 00:48:29,800
That was great.
What fun people.

995
00:48:29,800 --> 00:48:31,360
The power of humour.

996
00:48:32,880 --> 00:48:34,880
Captions by Red Bee Media