SARAH: Tonight on Shark Tank Australia,
it's a night of firsts.
Are you ready for this?
The first ever pitch in song.
# We're the Beanies
# Welcome to our great Shark Tank business pitch... #
And the first artificial intelligence product lands in the tank.
AI powered set of tools for teaching and learning.
Wow! Amazing.
Catchy is a world first accessory for high chairs.
Bravo! Bravo!
But which entrepreneurs will miss their mark
with their pitch...
You don't tell an investor
that you're going to use their money for your salary.
Aye aye aye.
That brings the valuation to...?
Reasonable.
..as the final curtain is called?
I did not invest in your business.
Let's just be clear on that.
First into the tank to face the Sharks
is Sydney based husband and wife team Rachel and Brad Cohen.
RACHEL: Our product is Catchy.
It's a world first food catching accessory for highchairs.
We knew when we invented Catchy for ourselves
that we needed to bring this product out
for other families around the world.
So I have this.
What? You have this exact one?
Yeah.
I've got the mess also.
(LAUGHTER)
Hi, I'm Rachel. This is Brad.
And together with our kids, we're the founders of Catchy.
Our mission is to empower families to enjoy stress-free meal times
and raise happy, healthy eaters.
As a clinical psychologist specialised in eating disorders,
I know how important it is for our kids' development
to let them explore their food, make a mess and truly enjoy mealtimes.
But as a mum, I couldn't stand the constant clean-up.
When we started solids with our daughter Maya,
we found out firsthand
just how messy and stressful feeding babies can be.
Picture this -
you've slaved away to make a nutritious breakfast for your baby,
only to have them throw it all over the floor.
You're exhausted.
And now you have to get down on your hands and knees
and clean mashed banana off the carpets.
What if you had this?
Ta da! Ooh.
Catchy is a world first food catching accessory for highchairs
that saves your floors, saves your food and saves your sanity.
Catchy is made from non-toxic food-safe material
so you can safely re-offer your baby all the food they've dropped
or save it for later.
And it saves your back from bending down every two seconds
to pick up dropped bowls and spoons from the floor.
We've already sold over 50,000 Catchys
to families in more than 60 countries around the world.
Wow. Wow. That's great.
The biggest thing is our growth opportunity.
Sharks, there's 140 million babies born annually each year.
That's a $1 billion opportunity for our business.
Sharks, today we are asking for $300,000 at a $15 million valuation.
Whoo!
Brad, how much equity are you looking to give up?
2%.
Oh.
2%? Aye aye aye.
We know that in the future,
every home with a high chair will also have a Catchy.
So, Sharks,
how do we get you into our chairs?
(LAUGHTER)
Wah wah wah!
Ha-ha! Cute!
Rachel and Brad,
I have three girls all under the age of six.
My youngest is one and a half.
And that set up there is literally my house every day.
You sell obviously the whole highchair and the tray.
No.
So you have your highchair and then you buy this as an accessory.
How much does it cost?
$54.95.
Mm.
What does it cost you to make? $9. Landed.
Wow. (LAUGHS)
That's great. Wow.
Hey, Rachel and Ryan.
I'm Jane.
I've got a Catchy, and I love it.
Oh, amazing.
That's the best thing we could hear. Yeah.
So the product is amazing. I will vouch for that.
What's not so amazing is your valuation.
Talk me through how you got there.
Absolutely.
So we're on track to achieve an $8 million run rate this year.
So that equates to a valuation multiple of two times revenue.
So when I sold 1,000 Oodies,
I was worth a thousand Oodies, pretty much.
Why should we pay on your future run rate?
Which is a very uncommon way to value an e-commerce start-up,
especially nowadays.
What was your past 12 months of sales?
So our past 12 months of sales was $2 million.
Why didn't you apply the two times revenue to that?
Well, we already have surpassed that.
And what did you make on the 2 million last year?
We made a $200,000 loss.
Oh. Ooh.
Last year we invested heavily in our IP,
so we've got granted patents and trademarks.
And Rachel and Brad, I'm Cat.
Hello. Hi, Cat.
Tell me about the ownership structure.
Is it just the two of you in the business?
We had advisors and mentors.
They took 15%.
Rachel and I own 85% of the business together.
SARAH: With the revelation
that the company already has investors on board,
what will Catriona Wallace think of the business?
CAT: Little challenge I have with the product is that I see the future
actually having an AI robot
that will do the cleaning in the house.
So I'm out.
Thank you very much. Thanks so much. Thanks, Catriona.
I am literally like the perfect candidate for this product.
But your valuation and coming in here
and really being willing to kind of offer up,
you know, a very, very small piece
is difficult, right, to get anybody excited.
However...
..I believe in you guys.
So I am going to make you an offer.
Oh, yeah.
So I will offer you all of the money, 300 K...
Boom.
..but I would need...
..9% of the business.
Oof!
Can you tell me what that brings the valuation to?
Reasonable.
SARAH: Husband and wife Rachel and Brad Cohen are in the tank
looking for an investment of $300,000
in exchange for 2% of their company, Catchy.
With one offer on the table...
I will offer you all of the money, 300 K,
but I would need 9% of the business.
..will the other Sharks be willing to play?
You've got a great product, but that's step one.
You're going to make money.
It's just whether you want to make money with us
by giving us a valuation where we can make money as well,
or if we're just going to break even with a ton of risk.
What's your offer?
(EXHALES HEAVILY)
Look, I thought Sabri's was fair.
I'd come in at $300,000 for 9%.
Jane, what are you going to do?
Oh!
I'm happy to match it or to share it.
Thank you.
Thanks, Jane.
Robert is lucky last.
(LAUGHTER)
I...I...
I think 9% feels good to me.
I can give you 9% of my day...
..but I wanted a royalty
to minimise my risk.
So...
So it's a worse offer
than I think you've got from the other three Sharks.
It's a very crowded Shark Tank right now.
And the amount of chum you're throwing in is so small.
SARAH: With four offers on the table,
will the pressure on royalties
push Rachel and Brad further away from a deal?
OK. Can we have two seconds? We'll make it a quick one.
OK.
What's your counter?
So, 4% equity and 20% royalties until you make your investment back.
I'll do it for 5%. ROBERT: Me too.
Me and Robert have 2.5% each. I'll go in with Davey on that.
SARAH: Davie Fogarty and Robert Herjavec
have joined forces and put a new offer on the table.
I mean, if they're doing 5%, I'll go up to 5%.
Royalties paid back.
I would go in with Jane on that deal.
Alright. So you've got two offers.
You've got Jane and Sabri,
and you have the same offer from Davey and I,
at 300,000 for 5%
with a 20% royalty until the money is paid back.
It's like asking me to choose between my kids.
(LAUGHTER) We'd love all of you.
So what do we do?
(LAUGHS) OK.
OK. A minute together, husband?
OK. Alright.
Robert and Dave...
.I. think we're going to have to take your offer.
(CHEERING)
Oh, my gosh. That was exhausting.
SARAH: Davey and Robert have teamed up and cemented a $300,000 investment
for a 5% share of Catchy.
It's a great product.
I'm exhausted.
We're really excited to have Robert and Davey on board
with Davey's experience in scaling up businesses
and then with Robert's reach and his...
..what he can open for us in the US market,
it's invaluable, so we're really excited to have them.
Next up to face the Sharks is Akanksha Sinha,
who has flown from Perth with a business idea
that's come from much further afield.
I am so excited to bring to the world
one of the most ancient forms of craft from India.
It's about time the world sees it the way India sees it.
I'm going to be pitching to all the Sharks.
But, Jane, I'm looking at you.
Hello, Sharks.
My name is Akanksha Rice Sinha.
I am beyond excited to introduce you to Kaasida.
Kaasida was born out of my deep love for chikankari.
Sound similar to, like, 'chicken curry'. I know.
How do you say it? Is it...?
So, it's just 'chicken curry' with an additional A,
so it becomes 'chikankari'.
Oh, chikankari. Chikankari.
Chikankari is a unique embroidery form that was made popular in India
back in the 15th century.
The word 'chikankari' loosely translates to 'white on white'
because it is traditionally done
with white thread on white muslin cloth.
And over the years it's embraced colours and different patterns.
Our hand embroidery is crafted by female artisans of India,
creating a sense of connection between you and the makers.
Through Kaasida,
I truly hope to preserve a traditional form of handicraft
while empowering female artisans.
Today I seek an investment of $35,000
against 10% equity in the business.
Can we have a look? Oh, of course. Yes.
It looks nice. It's very wearable.
It's all 100% certified organic cotton.
Beautiful, yeah. Beautiful quality.
And the embroidery is excellent.
Super pretty.
Thank you. Beautiful product.
Thank you.
So what led you to start this business?
Being born and raised in Lucknow, I've seen chikankari everywhere.
They're some of the most beautiful memories of my childhood,
but I knew I couldn't wear the clothes that we wear in India
as comfortably as I would a dress or a top.
So that's when I decided to blend this form of traditional craft
with modern fashion.
So, can I clarify?
The women that are featured on the poster,
they're doing the chikankari part of the embroidery?
Yeah. So right now there are six artisans who work for Kaasida.
Another thing I'd like to add here
is that Lucknow is the only place in this entire world
where chikankari can happen
under the Indian Intellectual Property law.
So, can I just understand,
there's only one region in the world that can do this chikankari?
Yeah.
Could you... Could you do it in Australia?
No. No.
Why?
Like, if Sabri wanted to learn this craft and embroider here...?
To preserve the craft, the artisans' employment,
so Lucknow is the only place.
Lucknow and surrounding areas.
How much does it cost to make something from the manufacturer
and how much to add the embroidery?
So, on average, a product costs me $105, including shipping,
$15 shipping to the customer.
$105 in cost? ROBERT: 105?
Yes.
In cost? Not retail price.
No. The cost.
What do you sell it for? Oh, wow.
So, I sell it at 3.5 times.
So, on average, selling price is $320.
That seems like a lot... a lot for a cotton dress.
And how many have you sold?
So, business is early stage.
I've sold about 18 pieces.
18?
The cost also is what it is because of the sustainability aspect.
So it's cotton certified by the Global Organic Textile Standards.
I spend a bit of time in South America, in Mexico,
and crafts people do beautiful cotton dresses and pants
with sort of Amazonian embroidery on it.
And they are surprisingly expensive.
So when we're talking about artisans' embroidery,
this is about the price that they come in at.
On average, it can take female artisans up to 90 days
to finish this embroidery.
I want to commend you for starting a business
that has this environmental aspect so front and centre,
and it's clearly something that you're very passionate about.
For me, it's just way too early with 18 units sold.
So for that reason, I'm out.
So, I feel there's a bit of a disconnect here
with this cost per product. Mm-hm.
Unfortunately, in my experience in business,
operating with that kind of cost structure,
just with inventory,
it can get really, really capital intensive early on.
And I just don't think I'm ready to do that ride with you at this stage.
So for those reasons, I'm out.
No problem.
Akanksha, I come from a little village
in what used to be Yugoslavia,
and we had beautiful embroidery that my grandmother used to do.
And it's really so sad because it's a dying art.
When you have a product like this,
you either try to mass produce it with a very strong message
or you have to charge a lot of money
for people where the story resonates with them.
It feels like you're kind of in the middle.
I wish you all the best.
It's not for me. Thank you. I'm out.
Thank you.
SARAH: With Akanksha's hope of an investment fading,
will her ideal Shark, fashion expert Jane Lu,
be willing to invest?
Akanksha, such a beautiful mission
of what the business is trying to do,
and I love how passionate you're speaking about it.
It's amazing.
I feel like it just needs probably a lot of education
to get people there.
And, you know, how will I get my money back from the investment?
That does worry me.
But there's something that really does excite me about this.
It's a fashion business.
It's my forte.
So, thinking about this...
You...
SARAH: Akanksha Sinha is seeking $35,000
for a 10% stake in her embroidered clothing line, Kaasida.
With Sabri Suby, Davie Fogarty and Robert Herjavec all out,
what will Akanksha's ideal investor, fashion guru Jane Lu,
think about her business?
I think you have such a beautiful mission
of what the business is trying to do.
You're buying not just the product, but the story and the vision.
But at that price point,
it's going to be quite hard
for this to scale as an investable business.
It just needs probably a lot of education to get people there,
and I think that's going to be quite tough.
And then, at 18 units, it's also lacking market validation.
So, um...
I'm really sorry, but for those reasons, I'm out.
That's OK. Thank you.
SARAH: With high costs and low sales,
Akanksha's dreams of an investment are hanging by a thread.
(SIGHS) Akanksha, I love India.
Love the spirit.
Love the culture.
And I could hear and can feel the emotion that you have
when you're talking about supporting women artisans,
and retaining that ancient craft and knowledge is so important.
But this is not my wheelhouse.
I don't really know anything about fashion other than wearing it.
So...
..that's kind of where I'm at.
However...
..I like your story.
Love the fact that... that you're empowering women...
..so I will make you an offer.
I will give you the full amount you want...
Aww.
Can you not cry?
I will give you the full amount...
(SNIFFLES)
..but for...
..40% of your business.
Thank you so much for believing in what I'm creating.
And thank you to all of you all.
Catriona, would you consider 30%?
I absolutely will.
I would love to...
Yay!
Great job.
(CATRIONA LAUGHS) Stop it. Thank you.
Thank you so much. You're welcome.
It means a lot.
(BOTH SOBBING)
Thank you for believing in me.
(CATRIONA CHUCKLES) Thank you.
Thank you.
SARAH: An emotional Akanksha leaves the tank over the moon...
Thank you! Nice to meet you all.
..with a $35,000 investment
and the chance to preserve the history of her hometown
through her business, Kaasida.
You walk the walk with your values.
Like, you actually will put your money where your mouth is.
So, good role model.
JANE: Yeah. Nice one, Cat. Oh!
Wildcat, this is built for you. Yeah.
AI tool kit!
CATRIONA: OK. I'm excited to see what this is.
You ready? Yeah.
SARAH: Next to face the Sharks
is 49-year-old school teacher James King,
who is looking to teach some of the Sharks
a thing or two about AI.
What was the question? I've forgotten the question.
Oops.
Is it real?
PRODUCER: Yeah, it's real. Ha!
Finally here at Shark Tank, feeling pumped.
We've come up with a product
that's going to change the way teachers do business,
saving countless hours,
and it's going to really change the way kids learn.
Hello, Sharks.
My name is James King, co-founder of AI Toolkit Proprietary Limited.
The product I'll be presenting today will be an AI-powered set of tools
for teaching and learning.
I'm asking for an investment of $250,000
in return for a 10% share in the company.
Wow.
Having no plan is definitely planning to fail.
This is never truer than in teaching.
Teachers, we have to prepare up to eight lessons a day
across a range of subjects, and the curriculum is always shifting.
Let me show you something amazing.
I'm going to prepare a lesson plan in 15 seconds
which gets sent straight to my email.
You ready for this? Yep.
So what are you doing? Can you just walk us through, James?
I can't read that.
What are you selecting there?
It's 15 seconds, guys.
You got to be... You got to be kidding me.
Alright. Can't talk and work.
Talk and click. JANE: Whoa, boom.
That 15 seconds, I think less.
We'll take your word for it.
What it's doing behind the scenes is building a lesson plan
with learning intention, success criteria,
differentiation strategies, Indigenous perspectives.
Now, let me demonstrate.
And our first question goes to our exchange student from the US.
Robert, that's you.
Canada. But OK.
OK. OK. Canada. (CATRIONA LAUGHS)
What does the term 'investment' mean?
An investment is any type of vehicle
where you put in a certain amount of money in order to get a return.
Instantly, AI Toolkit gives you feedback.
It captures the entire thread of your interactions
and sends them to the teacher as evidence of inquiry-based learning.
Catriona, your student profile says you've dabbled a little bit in AI,
so you might be able to help us with this next question.
Is AI Toolkit a good investment?
(LAUGHTER)
I guess we'll find out.
AI Toolkit has only existed for 41 days.
41 days?
At 2.5 mil? OK.
Guys, I've really enjoyed presenting today.
I'm just keen to answer any of your questions.
James, thank you so much.
I think this is a great field that you're entering
and one that I've played in myself.
So who have you joined forces with to build the AI?
Well, Jeff Aeling is my business partner, and there's only two of us.
There's no team of engineers.
We haven't slept for a while.
We're 50/50 in the business.
He's tech with a background in marketing.
I'm education with a background in tech.
Where is Jeff? What's his involvement in it?
Someone's got to drive the Ferrari while I'm up here doing my thing.
Nice. OK. So there's only two of us.
So he's, you know, the guy.
OK, so...
So just a little tip.
You're a tech business and you're doing a tech presentation.
Absolutely have your CTO there,
your chief technology officer there every time.
Especially if he's a 50/50 partner, because I might not like Jeff.
(LAUGHS) OK.
I don't know... I don't know Jeff.
But yeah, it's pretty important.
OK.
Do you have any customers?
Not yet.
Have you sold any to a school board?
The...
The answer to that is yes.
I...I...
It sounded like not a solid yes.
I thought you said you didn't have any sales.
No, we haven't...
When somebody asks you if you have sales, it's very binary.
It's either yes or no.
Do you have sales or do you not have sales?
Yes, we have sales.
Alright. How much are your sales?
We have 2,500 users
and we will be invoicing those users when we deliver the product.
Have they given you an order?
They have given us an implementation schedule.
And as soon as we've implemented all of those schools,
we can then invoice that.
That's it.
Yeah, I feel like with every question that we're asking,
we're just going down a different rabbit hole, right?
So like, just tell us point blank, what are the gross sales to date?
Have you charged anyone through any merchant facilities yet?
No, we have not. OK.
So, then you don't have any sales.
OK. We don't have any sales.
So, James, what do you plan to do with the $250,000?
We're looking to upscale our curriculum wraps.
Where's that cost going?
I develop those curriculum wraps.
So the $250,000 is going to you for salaries?
Well, I'm a full-time teacher at the moment.
If I was to get an investor on board,
then I could move into that role full time.
And Jeff also.
There aren't too many ways around it, unfortunately.
But James... Yes?
I mean, you're working 9 to 3
and you've got AI Tool for your curriculum,
so you can outsource your curriculum
and then focus all your hours onto the business.
Good luck on your journey.
But for this business, I'm out.
I really appreciate the comments.
What I have a problem with is your presentation.
It may have been one of the worst presentations we've seen.
I don't mean that you're a bad human being
or you don't believe in the mission that you have.
We were bouncing all over the map.
I'm like, land the plane, my friend!
I wish you all the best.
Highly confusing presentation.
For that reason, I'm out.
Thank you for the feedback.
I'm going to take that on board as a professional educator.
Yeah, I'll jump in and clear the room as well.
I wouldn't be able to work with someone
that it's a constant thousand different questions
just to get a simple answer out of them.
So for those reasons, I'm out.
I appreciate it.
Sometimes we get very smart people pitching to us
and they don't simplify things enough
that you can understand in such a short period of time.
You just didn't explain the main use cases, the monetisation method.
Unfortunately, I just don't think I can help you.
So for those reasons, I'm out.
Thanks, David. I appreciate the comments.
Cat? You're the only one left.
It's up to me. Yeah.
You probably understood the products. Yeah.
So I have to say, James,
I know pretty well what the application is
and how useful it will be to teachers.
You've got so much energy and enthusiasm,
but not a lot of start-up experience.
Hence you don't tell an investor
that you're going to use their money for your salary.
Not yet. Not yet.
Your valuation is insane.
And this is what breaks my heart when I see entrepreneurs
who haven't gone out and got advice to say,
"What is a realistic valuation?"
Catriona, I did come with, you know, figures that don't make sense.
I get that.
But I think you wouldn't be investing in a product.
You'd be investing in every frontline teacher in Australia
who is saying, "I hope..." No, that's not true.
That's not true. Come on, man.
You're asking for it.
Come on. Don't give me that.
Don't make it about the teachers.
You have a responsibility
when you're asking for real money to present a real business.
I did not not invest in teachers.
I did not invest in your business.
Let's just be clear on that.
James,
there's a certain formula for doing a pitch.
You didn't have it today.
For those reasons, I'm out.
41 days in, the opportunity presents
and I just really had to show you the product
and hope it would be enough.
And it wasn't. And it's... I feel bad that was the case.
But, you know, to some respect...
(LAUGHS)
You do have a choice.
That's the great thing about a business. You always have a choice.
Let me give you an option.
Hi, Sharks. (LAUGHS)
My name is James.
I'm a world-class teacher.
I've created an incredible curriculum on top of ChatGPT.
It's very early, but I think we have one of the best curriculums
on the best technology that's out there.
It's early stage, let me tell you that right now.
I'm looking for seed money of $100,000
so that we can launch this and find a way to revenue.
You don't have to ask for the moon right away.
You could have asked for a smaller amount of money
and I would have been in.
I really believe in teachers.
Hey, Rob. Rob, the door.
That door can open.
I can go out and give it another shot.
(LAUGHTER)
We got time for this. That's not how this works.
I know, I know, I know. So I was just joking.
Thanks, James. Yeah, thank you.
Go out and prove us wrong.
Prove us wrong, James. Go get 'em.
Good luck.
SARAH: After an unclear pitch,
a defeated James walks out of the tank with nothing.
That was well said, Cat. JANE: Yeah. Very well said.
People need to realise we're here to make real investments...
100%. ..with our own money.
That was brutal.
It's a business thing. This is Shark Tank.
But I think they have missed the real value.
They should stand in my shoes for a day
and see how valuable it really can be.
Coming up...
(LAUGHTER)
..the Beanies make a splash in the tank.
And with high expectations...
The Wiggles are rumoured to bring in between 20 and 50 million a year.
46 million last year.
What do you pay yourself?
20 bucks an hour.
..will their dreams of an investment come crashing down?
I don't think you're worth 1.5 million.
OK, so we're ready.
We're feeling good. Ready for the Shark Tank.
Yeah. Yeah.
SARAH: Making their way into the tank next
is a trio of children's entertainers from Sydney.
They're hoping they can sing and dance their way
to a perfect pitch.
Assuming this looks like a children's entertainment something,
what's big in the US at the moment?
Have you guys heard of the Wiggles?
Nah. (LAUGHS)
It must be an American thing.
The Wiggles are huge.
Still? Wow. Yeah.
CoComelon is huge. As you know.
Huge. CoComelon. Yeah.
Blippi is massive.
They just sold it for $2 billion.
Game faces on, Beanies.
Let's do this, Beans. Let's do it.
(LAUGHS)
(LAUGHTER) JANE: Wow!
It's nice.
Whoa! Whoa!
Hi, Mini Beanies,
baby sharks and big people watching at home on telly.
We're the Beanies. That means you're with Laura...
Mim... And Michael.
Who forgot to read the brief.
I did read the brief.
What did it say?
Shark Tank.
Did you read any further than the top line?
No.
(LAUGHS)
That's OK. Um...
Laura is going to hand you a ribbon,
and I have a very handy diagram on how to use it.
So you're going to wave your ribbon left to right in approval.
Yes. And wave it right to left in disapproval.
What? Oh, look, they love it.
Approval. They love it. They love it.
It's...so confusing.
Well done.
So we are them that make content for Mini Beanies
aged 3 to 8 years old.
You might recognise us from the televisual communications,
your ear holes...
(SABRI LAUGHS)
..your eye holes...
And stuck inside your child's iPad at the restaurant.
That's right. Our mission is to be every child's best friend.
And you might be thinking,
"What do these kids' entertainers know about business?"
And the answer is...
Something. It's not really that much.
Googled it once. (LAUGHTER)
Beanies are the next big thing in kids' entertainment.
And here's why.
Why?
Our music video clips have been streamed heaps of times on ABC TV.
We can't say exactly how many, but it's heaps. Pinky promise.
Yeah.
And our award-winning podcast
has been downloaded over 1.5 million times,
and that's not including the repeat listens.
And our twice ARIA-nominated music
has been streamed over 8 million times,
3 million just in the last year alone.
And since we started, the Beanies have done over 350 shows.
(LAUGHS) ALL: We're tired.
(LAUGHTER)
The Beanies have six different income streams.
Let's count them.
BEANIES: One, two,
three, four,
five, six... Six!
..income streams.
Yeah. Thank you. Yeah.
And they're always growing.
These are the audience and stream numbers in growth
for the last 12 months. Mm-hm.
We are experts at making stuff for kids.
And you're experts at making stuff for money.
(LAUGHTER) So...
Wait, wait, wait, wait, wait.
Beanie huddle. Just two seconds.
Just one second. One second.
One second, one second.
We would like...
(LAUGHTER)
$150,000 for 10% equity in our business, pretty please.
Oh, that sounds really good. Oh, wow. That's a great idea, guys.
I'm going to give them even more money. I like 'em.
Shh. Quiet, everyone.
With this investment, we will be able to jump in at full speed
and make more shows, more videos and more songs
just like this one.
Ready?
# We're the Beanies
# Welcome to our great Shark Tank business pitch
# We're the Beanies
# You should invest in us
# And please don't be a... Mean person.
# Sabri Suby, Dr Cat
# David, Jane and Herjavec (SQUEALS)
# We're gonna make $1 billion here
# You'll see returns in just one year
Maybe.
# Invest in beanies, don't delay
# And have a Beanie-rific day. #
(CHEERING AND APPLAUSE)
Bravo! Bravo! Bravo!
Thanks!
Best pitch. That was amazing.
Wow.
Best pitch on Shark Tank Australia ever!
SABRI: Boom! Thank you.
Do we get a gold star? Yes.
You get a sticker.
Ooh. Yes!
Hey, Beanies. I'm Sabri. Hello. Hi, Sabri.
So run us through.
How did you guys become the Beanies?
Uh, well, we started...
We were all musical theatre performers by trade,
and we were all getting cast in kids' stuff,
and we kind of met doing that.
And the Beanies was born about seven years ago.
When you guys came in, I was like,
"Oh, my God, cha-ching!"
Are you guys full time?
Almost. We've got a couple of little side projects,
but the focus is to be full time within the next 12 months.
I'm Davie. That was a really good pitch.
My cheeks actually hurt from smiling so much.
I actually felt like a toddler again.
So it was really, really engaging. Again?
Tell me... (LAUGHS)
Tell me about the business side of things,
because there's a lot of numbers up there.
Where's your main focus?
We currently make approximately how many podcast episodes a year?
Like.. 38 in a year.
And we also usually write one to two albums a year and create those.
And this is just the three of us.
We also probably create 5 to 10 new YouTube at the moment,
and then we also make TV content.
That is so much. So just between the three of us...
We have a lot of capacity. We make so much.
How are you doing that?
You have a show, but it's not converting.
Well, when we say TV show, it's like a music video clip
that only goes for about two minutes.
So it's not like a full feature...
Oh, you don't have, like, a half hour...?
No. No.
SARAH: With the business not quite what it seems,
Jane is keen to understand just how successful their online content is.
How many subscribers do you have on YouTube?
Subscribers are only at about 2,000 at the moment.
So let's get into that.
What's your watch time per month?
I'm not...
BOTH: That's a really good question.
Ahem!
# We don't have the answer to that. #
(LAUGHTER)
That was the most honest response to that.
(LAUGHTER)
How many kids come to the show?
Give me a rough idea of attendance.
If it's a theatre show,
which is what we've been touring for the last year,
between 300 and 500 people would usually come,
and that's usually the capacity of the theatres we've been.
So what do you pay yourself?
So currently we pay ourselves a...
It's not on your hand. Oh.
We pay ourselves a really nominal fee.
How much?
20 bucks an hour. 20 bucks an hour.
I'm trying to figure out why it's not working.
Because you are fantastic.
I think they just haven't found a scalable method of content
that monetises.
No... Or the content itself
isn't emotionally engaging enough to monetise later.
Like, because YouTube, they're clearly not going viral.
SARAH: With the Sharks questioning
why the group isn't connecting with their audiences,
Sabri Suby has heard enough.
Look, guys, let me tell you where I stand with this.
I believe that the market doesn't lie.
You've put your content out a lot of different places.
Something's just not hitting.
Something's just not connecting.
So this isn't a business for me.
I'm out.
# We're so sad
# But we're not mad
# It's your loss. #
(LAUGHTER)
Thank you, though. Thank you. (LAUGHS)
I think I've figured it out.
JANE: Ha ha!
Do you want to come sit in the villain chair?
Yes!
Oh, you need the cat. Yeah, you've got to pat the cat.
Dr Evil.
Give me $1 billion, Sharks!
(LAUGHS EVILLY)
I think I've figured it out. OK.
This is why I'm such a smart Shark. (LAUGHS)
No, all joking aside, you're overproducing.
There's too many messages, too many ponds.
It's slowing down your ability to create more content.
Find the winning formula.
Because if you can get people glued to your YouTube,
everything else will follow.
Yeah, and that's really what we want to focus on with your help.
Yeah.
So, Beanies, I, of course, do AI and metaverse,
and of the top three use cases for the metaverse,
number one is entertainment.
Once you've nailed what your niche is here,
also start to think about new channels
and potentially doing something
in augmented reality or virtual reality.
But until you're at that stage of development,
unfortunately I'm out.
# That's so sad
# We're not mad
# It's your loss. #
SARAH: With no offers on the table so far...
It's getting sadder. A little ironic.
Are you sure you're not mad?
(LAUGHTER) We're not mad!
..will the three remaining Sharks
end up dancing to the beat of the Beanies' drum?
Watch everyday Aussies go after their business dreams
with full episodes of Shark Tank Australia on 10 Play.
Children's entertainment group, the Beanies, have come into the tank
looking for a $150,000 investment for a 10% share in their business.
I love you guys.
The opportunity is definitely there.
But then you've only got 2,000 YouTube followers.
So I'm like, is there market validation...
The market validation's there.
It's just they haven't cracked it.
The model is so proven, it's just...
Well, they have cracked it
and look how many shows they're doing.
You're asking for 150,000 for 10%,
implying your business is worth 1.5 million.
I don't think you're worth 1.5 million.
I think you have tremendous potential.
But the valuation is just a song and a dance.
A pretty good song and a dance. (LAUGHS)
I thought so. The other way we figured that out
was actually using the Wiggles as a guide.
So the Wiggles are rumoured to bring in between 20 and 50 million a year.
46 million last year.
Great.
Well, I kind of figured it out on the 20 million conservative number,
and that would mean we would be taking in about 2%.
So I based it on a 1% valuation.
You can't do that.
Every business, when it grows,
gets to a point where your value increases.
And you know why that is?
Why do you think that is?
Why do bigger businesses typically get greater multiples
than really small businesses?
Why do you think?
Because it's real?
Oh, you're real.
Risk. It de-risks it.
The risk is very high for where the business is.
SARAH: With two sharks already out,
is Jane Lu willing to invest the $150,000 the trio is looking for?
I do love you guys, so...
OK. I have a proposal.
Ooh! 150 K that you're asking for...
..but...
..I would like...
..to be the fourth Beanie
with the other two Sharks in the business.
Are you in? Are you out?
Jane, I would love to do this deal with you
because I think we relate to the audience
and I do think we want to blow it up really quickly.
So I'd love to have you in it, Davie.
Yeah, I can help with the YouTube.
That sounds good.
(FEIGN MURMURING) Let's do it.
I think that's a good idea. But...
..it's not enough equity.
How much would you want?
You guys go be artists. Write content.
We will help you write the business and we'll blow this thing up.
150,000 for 50% and you get three Sharks.
We're so sorry to say, 50% is just a bit too much.
If you would consider 40, we would be happy to go ahead.
We'll let Robert decide.
And we'll give you the... we'll give you the cat.
And the ribbon.
Well, you never said that before.
(LAUGHTER)
Um...
We really do want your help,
but we're also juggling three opinions up here as well.
Um...
I would consider giving you the ability to buy back 10%
at a future value.
Oh! It's good. It's clever.
That's brilliant. Wish I thought of it.
Let's do it!
(CHEERING)
SARAH: A happy ending for the Beanies in the Shark Tank...
Let's all go to the aquarium!
(CHEERING, SQUEALING)
..with a $150,000 investment
from Robert Herjavec, Jane Lu and Davie Fogarty
for a stake in their children's entertainment brand.
ALL: (SING) # Make $1 billion here... #
Now, that's something to sing about.
# And have a Beanie-rific day. #
CATRIONA: Bye, Beanies. Yay!
Bye, Beanies. DAVIE: See ya. JANE: Oh, my God.
Well done, guys.
We're in the entertainment business!
Whoo! Whoo!
(LAUGHS INCREDULOUSLY)
Ha!
That was fun.
What a good pitch.
That was great. What fun people.
The power of humour.
Captions by Red Bee Media