VOICEOVER: Tonight...
..Shark Tank history is made...
(GASPING AND LAUGHTER)
..as one of tonight's entrepreneurs...
..hits the ultimate jackpot.
I'll give you $1 million.
Phenomenal.
But whose extraordinary invention...
Ay, ay, ay. I've never seen anything like.
..is in line for a big cash injection.
(ECHOES) $1 million!
First into the tank is Pascal Ward from South Australia.
I don't think the Sharks have seen anything like this ever before.
If they're scared of commitment, I've got the perfect temporary fix.
I'm gunning for Davie because I'm a big fan of his.
We're both from the same hometown of Adelaide.
I can't deny the nerves that I'm feeling.
So, yeah, it's quite a handful of emotions right now.
Hello, Sharks.
My name is Pascal.
I'm the founder at EasyTatt Ink Co.
I'm here today asking for $300,000 in return for 15% of my company.
So you test drive a car.
Why don't you test drive a tattoo?
This is the basis for my company, EasyTatt Ink Co.
We enable people to test drive their tattoo ideas
before they get the needle.
They can experiment with different designs, sizes and placements
on the body and wear it for a few weeks before walking in and getting
that done for real.
Not only do we have a library of over 6,000 designs,
we also allow people to upload their own design
and it's all direct to consumer.
It's all self-applied.
Today we have some models wearing some of our tattoos.
These are not stickers. Can I...?
That looks very, very real.
Yeah. JANE LU: Yeah. The tattoo cannot be removed.
You must wait until the skin regenerates itself naturally.
How long does that take?
A little over two weeks.
The big thing, of course -
100% organic, vegan ink.
No nasty chemicals.
Pascal, there's no way I would get a tattoo
because I have the worst buyer's remorse.
I change my mind and I'm like... I would hate it in an instant.
And so you literally came in and solved that problem.
So that's brilliant.
I'd love to know how you came up with this idea.
So...
..this idea came to me in a tragic circumstance.
In 2017, I lost my brother.
He took his own life.
This moment completely broke me.
I'm sorry to hear that.
When I found out this news,
I dropped to my knees and I howled like a wolf.
I wasn't the same person for a very long time.
And as I came out of that
grieving period,
I wanted to get a tattoo to commemorate him.
And obviously it was a very important tattoo.
I couldn't believe there wasn't a way for me to see
what it would look like on the skin before going in that day
and getting it needled in.
And that was my a-ha moment.
Pascal, what was your brother's name?
Paris. Yeah.
So the idea came from a tragic place,
but it shows that adversity can really seed success.
So I've got a little gift for you guys.
Oh.
I want you to pick any of these.
Thank you.
Oh, my God. It is a picture of Davie.
DAVIE: Oh, very nice. Yeah.
So what you saw on the girls, it's the same technology.
Why don't you have a go?
You're getting a picture of Davie.
Oh, hey!
SABRI: Hey, look out!
Got Cat!
Yay! Bravo.
That just leaves Jane.
We had a double up.
Our partners are going to be very suspicious
we've got tattoos of each other.
Pascal, can you tell us about what sales you have to date
over what period?
So we've grown tremendously this year.
And I tell you what, it's all thanks to Davie because we weren't doing
any advertising on Facebook before this financial year.
As soon as we started doing that and I used some
of David's YouTube videos, we started scaling the company.
Now, are you giving Davie a royalty and how much?
(LAUGHTER) A bit of... A bit of a fan.
I'm trying not to show it, trying not to show it.
I think you're showing it. Yeah! It's OK. I love it. I love it.
But he does amazing things.
I jumped the gun and I put a Davie one on.
ALL: Oh! He does have a tattoo!
Yeah!
Pascal, let me ask the question.
I ordered Davie's face. I pay X dollars.
What shows up at my house?
You get one of those brown envelopes, beautiful packaging.
You get the primer wipe. You get the instructions.
When you apply it, it's actually completely invisible.
And then they'll develop over two days.
So you're the only one that makes a tattoo that looks permanent
and lasts for two weeks?
We do have competitors in the US doing a similar thing.
You do? Yeah.
And what do you do that they don't do?
Our tattoos can be applied in 30 seconds.
The competitor in the US, when you apply it,
you actually have to leave it on there for an hour.
Got it. Can you tell us about the business?
So where are you based and then what sales you have?
I'm from Adelaide, so I was pursuing my legal career.
Oh. So I have a degree in business and law.
A lawyer selling tattoos.
Yeah, it's...
Although that's kind of cool. That's cool.
Kind of cool. Well, that's...that's what I am.
So this year, sales are 1.3 million to date.
Wow.
What were they last year? 700,000.
Wow.
You're going to love gross profit margin of 89%.
Whoa. Wow.
So what were you net on the 1.3 mil?
Just under 100K. Why?
You're making 800,000, 900,000 in gross profit.
Yeah. What are you spending that on?
Rent, wages.
(SIGHS) We invested heavily in inventory as well.
Why aren't you just doing every single thing print on demand
and not having any inventory?
Oh, so print after...
Print after?
It's funny you mentioned that because this was our biggest problem.
When you print, there's a lamination process that happens
and then they have to be manually cut and it's not possible
to fulfil fast enough if you can't pick and pack.
There's more manual labour, so wages go up.
it's just not... Yeah. What if...
With all due respect,
like, all businesses are a shit show to begin with.
I'm wondering if you get your shit together,
are you going to be able to do that process?
Because suddenly you're a global business
if you can just set up the print on demand everywhere
and without any inventory risk and you can just scale like crazy.
It can be done. It affects dispatch times.
Customers get grumpy.
Unless you solve the issue of having, you know, a way to do
print on demand, then it's going to be very, very challenging.
What are you going to use the money for?
So international expansion is something that is on the cards.
I really want to enter the US market and I've been contacted
by numerous people around Australia and the world who want our products
in their stores.
It's an excellent impulse buy.
You want to go retail?
I want to go retail.
Pascal, you're an amazing guy, but all the problems I see
in your business is simply stuff that you haven't thought of.
I think you could figure it out.
Um... It's not for me. I'm out.
For me, I don't have a love for tattoos.
Probably not the right business for me to invest in.
So I'm out. Sorry.
Pascal, for me, the risk versus reward of this investment
just doesn't line up with everything that would need to happen
in symphony in order for you to scale this successfully.
So for those reasons, I'm out.
I am a high-tech entrepreneur.
So in the field of AI and the metaverse,
we're seeing a lot of AI-generated art
and AI-generated tattoo design already.
Yeah.
So if you come in with a...
..more of a approach around that,
because that would significantly reduce your costs,
I'd perhaps be more interested.
So for that reason, I'm out.
Um.
This is just so much work.
It... It really is.
Make me an offer.
Look...
..I'll give you the $300,000.
But it will be as a loan.
And I'll need 30% of the business.
Three-year loan.
15%?
No.
What, about 25%?
VOICEOVER: Still to come,
interrogations intensify.
Why haven't you increased your marketing to date?
You've got to know your numbers.
How did you get to the $2 million?
But which perfect pitch...
It sold out in under 24 hours. Whoo!
This year we'll hit 3.8 million.
..leaves this Shark... Yeah!
..hooked. I'll give you $1 million.
Davie has offered $300,000
for Pascal's temporary tattoo business,
but he wants 30% equity.
(SIGHS) What about 25%?
No. I'm at my limit.
(SIGHS)
Hmm.
Uh...
Yeah, I think I'm going to have to turn that down, unfortunately.
Yeah, it's just too much.
I was hoping to have a bit of a better deal,
but, you know, that's OK.
So, at the end of the day, Davie wasn't worth 5% to you.
Uh... You were willing to give up 25, but not the 30.
If you gave a 300K line, would you guide me as well?
100%.
I guide all of my entrepreneurs.
I will help you with every single step
of the way as well.
Because, you know, I do believe in you.
I mean, I really want to... I really want to make a deal with you, man.
Pascal, I'll make it easier for you.
If this is hurting you so much now,
it will ruin our partnership going forward.
So for those reasons, I'm out.
Alright. Well, I appreciate it. Good luck. Thank you, everyone.
You'll do well. Thank you.
You'll do great, man. Yeah.
You'll kill it. No worries. Thank you.
So close yet so far.
Pascal has just talked himself out of a deal
with his number one Shark.
There's definitely a sense of disappointment.
I'm really happy that Davie made an offer.
It's a shame that we couldn't lock something in, but, you know,
that's the way the cookie crumbles.
We're so excited for this opportunity. We can't even believe we're here.
Competition in the clothing industry can be tough,
but that won't stop 13-year-olds Myla Tucker and Liv Lorenz
from taking on the challenge.
We're besties. We're still at school.
And we really hope the Sharks love what we have to show them.
Aww!
Hi, Sharks. I'm Myla.
And I'm Liv.
BOTH: And we're Cinnamon Cove.
Today we're asking for $80,000 in exchange for 30% equity
in our business.
Cinnamon Cove is swimwear designed by tweens
for tweens.
There's still a big gap in the market when it comes
to sustainable fashion, especially swimsuits designed specifically
for tweens' changing bodies.
They were either too babyish or way too skimpy.
When we launched our first design, it sold out in under 24 hours.
Wow!
Within the first six months of launching Cinnamon Cove,
we had a turnover of $30,000 and were debt-free.
And we have run the entire operation ourselves.
So that's our pitch.
And we know you probably have a lot of questions.
And we're really nervous.
Aww.
But we're ready, so bring it on.
That was amazing, girls. You have no reason to be nervous.
You handled that very, very well.
Myla and Liv, I'm Jane.
I also have a fashion retail business. Yes.
Showpo. I think they knew that!
So I'm really interested in how you guys sold out
of your first product after...
Did you say, after one day?
Yeah, it was just after one day. Wow.
So leading up to that launch, we had done loads of marketing
on Instagram and we released it and it just sold out so quickly.
I love that.
I always say to people, "Don't wait until you have a product
"before you start building up an Instagram account, building up a following."
Yeah.
You mentioned sustainability.
Can you run us through that? Yeah.
So our swimsuits are made out of recycled fishing nets
and we manufacture all of our swimsuits locally in Newcastle
and all of our packaging is sustainable as well.
Would you like us to show you some? Yeah, we'd love to. Yeah!
Yeah, I want to see the quality. Yeah.
Um, these are the bottoms to our best seller.
Awesome. What do you charge for them?
So that retails for $135.
That's... That's a fair price.
And what does it cost you to make it?
So to get it to a customer's door, it costs around $50 to $60.
Now, just to clarify, so all of these are made from
recycled fish nets, you said?
Yes. Yes.
Does that influence the cost of it?
Is that why it's on the higher end?
Yeah. Because it's all recycled?
Because we get our fabric from Italy.
OK.
And it just took, by the way, a long time to find that.
Like, we didn't know how long it would take.
It's really difficult to find recycled fabrics. Exactly.
Even if it's plastic bottles or fishing nets.
Can I just say I've been around clothes manufacturing a lot?
This is one of the best made products I have ever seen. Thank you so much.
Do you have particular roles in the business?
Yeah.
So generally I will do more of the, you know,
like replying to customers
or the businessy side of it and kind of doing it on the website.
And then Myla is really creative and honestly, like,
there is so much that needs to be done to grow our brand.
So when I was 13, I was selling hats.
Last year? Was that last year? Yeah!
And then as I grew up, I realised school actually gets harder.
Yes.
And I decided to drop that completely so I could
focus on school.
How are you going to handle both?
Um, you know, if we get this investment,
it means we can work a lot harder on stock.
We might be able to pay someone to package the orders,
or at least half of them.
You as young women will be able to do your schooling
and will be able to do this business.
I have no question about that.
Look at how articulate you already are.
Thank you.
Ladies, incredible.
Thank you. Incredible at your age.
It is the dawn of a new age of entrepreneurism.
But someone's got to run the operating business.
Mm-hm.
And with $80,000, I'm not sure I can afford to hire Davie
to work for us full time.
I wish you all the best. Very impressive, but I'm out right now.
Thank you. Thank you so much.
Myla and Liv, let me jump in. I'm been blown away by you guys.
This isn't my wheelhouse.
I don't think that I would be able to add a lot of value
to this business, and for that reason, I'm out.
That's fine. Thank you so much. Thank you.
You're welcome. Thank you.
You know, summer is a big business, especially in Australia.
I have a brand that does over $1 million a year
just in beach tents alone.
I love everything you're doing with the environment.
I just think the school element,
you're just a little bit too early for an investor
to come in and help you.
Yeah.
I'm out.
That's fine. Thank you. Thank you.
I'm so impressed by you guys.
Honestly, so impressed.
But I think whilst you're still in school, this could be, like,
the best hobby.
Just gradually build this business, learn how to create content,
how to run ads so that when you finish school, you know,
you've got all these skills and you're ready to go.
So because you are looking for a business partner, I think
it's probably too much work for me.
So for that reason, I'm out.
That's fine. Thank you so much for your feedback.
Hmm, Myla and Liv,
I'm just so...I'm in my happy place now with young women entrepreneurs...
Yeah. ..so confidently pitching a great product that's ethical,
that you've thought about.
I am interested in the two of you,
so I'm going to go back to my Sharky brothers and sister
and pitch to them.
So if I went in and partnered
with Myla and Liv,
would one of the Sharks who has the experience
in marketing online businesses
join me to support these two young women?
I don't think you need an investor.
Yeah, and to jump in on that, like, in my business...
But...! I agree... Let them sort that out.
..with what Jane was saying, is that like,
this is a great business for you guys
to learn the ropes.
Do the markets on the weekend
and create a phenomenal little income
for yourself as a business.
It's not something that is big enough for me
to come in as an investor.
Yeah, sure. Understandable.
Oh, I really take exception that we are taking
an old-school mentality and applying it to these.
Well, Cat, you can just do the investment.
Invest! We'll give you advice.
I mean, this business will take time away from spending time
with my own children.
I have to consider that also.
Davie?
Alongside the beach tents...
Davie, you and I supporting these two young women,
they can sort out with their exceptional parents
how they figure school and education and fun.
(EXHALES) It's a tough one.
It's very tough.
VOICEOVER: 13-year-old swimwear designers Myla and Liv have an offer
from Catriona Wallace.
But to really take off, they need a Shark with marketing expertise.
(EXHALES)
Davie, alongside the beach tents.
Davie, you and I supporting these two young women.
They can sort out with their exceptional parents
how they figure school and education and fun.
(EXHALES) It's a tough one.
It's very tough.
Are you two both 50%?
Um, yes, but we kind of count it as together.
Yeah. We're a team. We work as a team.
Alright, we'll do the $80,000,
but we'll take 33% just to keep it even numbers.
You've got 33%, you 33%,
because we'll need to iron those things out.
Um, yes, we will.
(CHEERING)
Figure it out.
Thank you so much. Thank you.
You're welcome. It was good.
Thank you so much.
great job. Good pitch.
Davie, thanks, man. Appreciate it. It'll be good.
Pretty good! And two people. (SQUEALS)
VOICEOVER: It's a dream deal for Myla and Liv.
Their proud mums can't wait to give their daughters
a celebratory hug.
You know, I'm so happy that both Davie and Catriona believed in us.
And we're just going to show everyone what we can do.
Next into the tank, and hoping to ruffle the feathers
of the chicken-keeping market,
is West Australian Danielle Paraha.
DANIELLE PARAHA: It's very surreal that I'm here.
I've created a product that allows people to keep chickens
without all the flickin' chicken mess.
Hi, Sharks.
I'm Danni, the creator of the Chicken Orb,
the foraging accessory that gives people control over when, where
and how their pet chickens forage.
I'm here today to ask for $100,000 for 5% of Chicken Orbs.
(WHISTLES)
In Australia,
there's over 400,000 households with pet chickens.
Chicken Orb has been designed to allow chickens to walk wherever
they want, but it restricts their access into garden beds.
The Chicken Orb has a multi-million dollar potential,
so, Sharks,
would you like to help me get these Chicken Orbs rolling?
Nice. Got it.
Danni, tell me how you even came up with this.
I was trying to live a more sustainable life
in an urban environment,
and so I started growing my own and producing my own.
So I was trying to allow these chickens to forage more
because I knew the benefits for them.
Unfortunately, they were also destroying my yard.
They do dig up the ground.
They do dig holes.
So I started twitching wire in my backyard and that's
how my first prototype of the Chicken Orb was created.
The first thing that comes to my mind, being an animal lover -
isn't this cruel?
This is a temporary accessory, not a permanent enclosure.
I just recently bought a farm up in Mylor, South Australia,
a beautiful place, and it came with three chickens, so...
And I did let them out, as you said.
And they did cause a lot of mess. Really?
Yeah, as they dig a lot, they flick everything.
So I understand the need for it.
The Chicken Orb is designed to give them more freedom.
(CLUCKS)
So you can spread food out for them.
Chickens actually recognise over 25 unique sounds.
Do you speak any of those sounds? (LAUGHS)
I do, but I'm not going to today. (LAUGHTER)
Come on! We're only on national television.
It's gone viral on TikTok.
We've had over 19 million people view this.
Wow.
How many orders did you get.
So, out of that, we've increased to over 100 orders,
and that has actually increased the sales.
Run us through the financials of looking for $100,000 at 5%,
which puts the value at $2 million.
Yeah. Is that correct?
Absolutely. Yeah.
So run us through how many have you sold.
Sure. At what price?
So they're $69 each.
So, so far, with the e-commerce, I've sold over $40,000 worth
of the Chicken Orbs over five years.
Over five years. Wow.
Oh, sorry. Since 2020.
Sorry. Three years.
How many did you sell last year?
Last year I only sold...
Um...
Sorry. ...$13,000 worth of stock.
What will your sales be this year?
Yes, so at the moment we've more than doubled sales from last year
and we're at 40,000, which is double all of last year so far
for the first quarter.
I just want to understand the numbers.
You did 40,000 this year. Yes.
I guess here's what I'm really asking. Yes.
You said something magical happens, we went viral,
and then we sold $40,000...
Yeah. ..which would be really exciting.
Danni, what am I doing wrong with the math?
Uh... So the... So....
(SIGHS) um... I'm sorry.
So the first year we sold $600 worth of stock.
Um, and then last year...
Um...
I can't remember off the top...
So how did you... How did you get to the $2 million?
My projections are that we can achieve
1,000 Chicken Orbs a month within the next 12 months.
How?
I'm going to increase my marketing.
OK.
This is a bit clucking mad, but...
"Clucking mad!" ..I think...
Did you just say, "clucking mad"? I said "clucking mad."
If you're hitting viral videos, they're not all chicken owners.
They're all just like, "What is going on here?"
So they're going to the website to explore.
So for us to suddenly apply such a large valuation
just based off a couple of viral TikToks,
the proof just isn't there.
So, unfortunately...
..I'm out.
No worries. Thank you, Davie.
Danni, I've never seen anything like this,
so I think the novel-ness of it is...is outstanding.
But to be honest, I know that this is cage is
to save the garden, but I'm still just challenged about seeing
a chicken in a cage.
Sure.
I'm out.
Thank you.
Danni, I think that if you would have stepped in here today
with a more reasonable valuation,
then I would be willing to take a flyer on you.
The valuation just isn't making sense for me.
I'm out.
Thank you.
Danni, I think it's so innovative what you've done in the design
and finding a solution to a problem
and just like getting hands-on and doing it yourself.
But to have made $13,000 in sales over the last 12 months and to ask
for a $2 million valuation, it's just too much of a stretch.
So...I'm out.
Thank you.
Danni, Chicken Lady, I don't worry as much about valuation
because I can control the equity.
I could have made you an offer on that.
My issue, I guess, is when you're going to ask
an investor for $100,000,
it's real money.
You've got to know your numbers.
Today, you didn't.
I'm out.
Thank you. Thanks, Sharks. Thanks, Danni.
Thanks. Thank you.
VOICEOVER: Unable to get the ball rolling on a deal,
Danielle leaves the tank with nothing.
It's the first time I've ever done anything like this, so the nerves
just got the better of me.
I know that there's demand for the Chicken Orbs,
so this won't be the end of it.
Watch everyday Aussies
go after their business dreams with full episodes
of Shark Tank Australia on 10play.
Businesswoman Kat Hanzalek is on a mission
to break down barriers and remove the taboo around sexual health.
KAT HANZALEK: The Sharks will be really surprised about our product.
I hope that I give them a little bit of a giggle when talking
about what it is, but also from a serious note, it's important
for us to target women in this market because we want them
to be educated, empowered and feel sexy.
God, I haven't seen a condom in years.
(LAUGHTER)
What is a condom?
Yeah, like... That's what happens after you have babies.
Yeah.
That's funny. That is funny.
Hello, Sharks.
My name is Kat Hanzalek.
I'm from Mount Beauty Regional Victoria,
and I'm one of the founders of Get Down.
Today I'm asking for $160,000 for a 20% stake in my business.
We know that women are 40% of condom buyers in market,
but they're overwhelmingly marketed towards men.
I want you to picture this.
You've just swiped right on a dating application
and your future Tinderella or Prince awaits you.
You shave every crevice, put on your new sexy dress,
and then it's time to head down to the store to sort out protection.
with embarrassing sizes like King, Extra king,
Extra Galactic King,
You don't know which one you should be choosing.
There's non-gynaecological-friendly flavours
that are all around cocktails
and things that just really shouldn't be down there
in the first place.
And then, additionally, you don't know really where your rubber
has come from.
We've created these beautiful boxes,
so when you put them into your shopping basket,
it looks like skincare.
Sharks...
..will you help us Get Down better?
Um, Kat, I'm very distressed by your story.
It's the first date.
Why are you getting down?
We have to realise that times have changed.
People are having more casual sex than they ever had before.
In Australia, the rates of STIs are increasing.
Ay, ay, ay.
Yeah, significantly. Really?
Could we see the packaging? Yeah. Absolutely.
The branding and packaging is amazing. Beautiful.
Yeah, it looks incredible.
So this is the sixpack.
This one is called the Motel.
This is the one that would be more appropriate for like,
put it in your handbag or your bum bag.
CAT: Thank you. There you go.
It looks incredible.
A modern condom.
DAVIE: Is the condom itself different?
To the naked eye, you probably couldn't tell the difference.
We have partnered with Fair Rubber, which means everything
that it's made from is all with sustainability in mind.
Inside every condom packet is a little connection-building game
called "A little head or tail."
VOICEOVER: Kat's quiz game means her condoms
address mental health as well as physical health.
So, Kat, we're about to get down. Yeah.
I open my package and I say,
"But wait! We're going to play a game."
We encourage users to say, "Hey, use some of these questions
"as a framework to enable women to feel comfortable with your partner."
So it's a way for people to talk about their bodies...
Absolutely. ..what they want, and so on.
Hello, Kat. I'm Cat. Hey, Cat.
Great product.
I'd like to get down a bit more on what would you be selling
a box of condoms for, and then what does it cost you?
Yeah, so that box there is $3.20,
and that one sells for $16.50.
How does that compare?
It's been so long since I've bought condoms!
Yeah, we sit at the premium line with the premium condoms.
Tell us about how you're marketing the product.
We started the brand right when the pandemic kicked off.
I was nine months pregnant, gave birth to my daughter,
and then my partner lost his job.
Wow. And we're like, "We've got no money. What are we going to do?"
So I entered all of us on a game show.
My partner went on and then he won $100,000.
ALL: Wow! Yeah.
It's a logical play. Go on to...
Yeah, go win a game show!
So from that, I guess we then were like, "OK, use this money
"to buy the stock."
How much inventory do you have?
So if I was to sell all my product, it would be 225,000 worth of it.
When did the products arrive at your home?
Pfft. I'd say about 15 months ago.
15 months?! What have you been doing?
I actually got really ill.
I wasn't able to do any work, which...I'm all better now.
All sorted.
And then second thing is, kids.
Life doesn't wait for you, though, Kat.
If you're going to start a business, let's...
Yeah. ..let's be real.
No, but I'm going to jump in. Kat, I'm going to...
I'm going to back you on this.
I think we need to be really careful with devaluing women
who have children and being unwell.
When were you really,
"OK, now I'm going to do this"?
How many months ago?
I'd say two months ago.
Then Priceline approached us.
Urban Outfitters approached us.
And then they told us how much money
that we would need to kind of produce, and that's
where we stopped.
Can we focus a second on Urban Outfitters? Yes.
Mm. What happened to that?
A buyer contacted us and was like, "We want to order this many."
How many?
It was essentially, like, 200 grand worth,
but it was way out of our budget.
And so what happened with the Priceline deal?
Priceline, again, we just don't have the money.
OK, I started my first company working out of my basement.
I walk into General Electric, they give me a $400,000 order.
I walk out. I'm like, "Yeah!" I'm on cloud nine.
So I call the people that make the product.
The manufacturer says, "Fantastic, Robert. When are you going to send us the money?"
I'm like, "What do you mean?"
They're like, "Well, you need to pay us."
I'm like, "Oh, that's how business works."
Guess what I did?
Drove to General Electric, knocked back on the door and said,
"Really appreciate the order, but I don't have the cash to buy it.
"Will you guys prepay?"
And they did.
You're going to have to learn those lessons the hard way.
In entrepreneurship, it doesn't get easier.
You just get better.
Have you made any sales?
Selling condoms - not easy.
You've got to consider TGA restrictions,
all the medical guidelines.
You have no sales. No sales.
VOICEOVER: Kat's seeking $160,000 for 20% equity in her condom business.
But with zero sales, has she blown her chances of investment?
That's not good.
What are you going to use $160,000 for?
What's the next six months look like?
The $160,000 will go to fulfilment of stock to be able to get,
I would say, one big retailer in Australia,
and then having other big e-tailers.
We have factored into that budget adding lubricants...
As a second product? As a second product.
It looks good because then you can have a shelf
with all your products together.
I actually had a furniture business that required massive events,
so massive crowds.
The worst thing for COVID.
When Covid hit, I cancelled a party that night.
I went and took a photo of every bit of furniture
and set up a Shopify store and launch ads that day.
That is what I would have expected here.
So I'm out.
No problem.
I really admire the fact that you are solving a problem
that women genuinely have.
Yeah.
However...
..I don't think you've quite yet got product market fit.
Yeah. And so for that reason...
I'm out. Thank you.
For me...
..I didn't like the answer to, "What are you going to do with the money?"
You said, "I'm going to build more product."
That scares the crapola out of me.
Man, if you would have said, "I'm back, I'm Kat,
"I'm going to do this thing,
"I'm going to use that money to go and sell,"
I would have been interested.
Not the right answer for me. I'm out.
I just want to clarify, there's no other competitors doing this
in the Australian market and the US market?
No.
We really have huge ambitions to get this product, you know,
Australia-wide and then also in the UK, Ireland
and getting it over there eventually.
I do want to give you a chance.
Yes.
So I'll give the 160 at 20%,
which is what you're asking for.
I'll come in on that.
I can give it my 110%, which is what I do for my other roles,
except with this, I'm so passionate about this.
It's like I just want to make it work. Kat, Kat, Kat...
Close the deal. Close the deal.
Time kills. Stop talking. That's the... That's the first...
..the first rule of selling, yeah?
Yeah. So this is my offer.
Yeah.
And I'd love to have Jane in on it.
We'll give you the 160,000.
We would need 20% each of the business.
So, 40%. (DAVIE WHISTLES)
And a $2 royalty on the first 100,000 units sold.
Whoa.
Deal.
(CHEERING)
Thank you. (LAUGHS) Thank you. Well done.
Oh! Let's go sell some condoms.
I'm really overwhelmed, but I'm so excited.
I've got two Sharks, both with incredibly different skills.
So it's a dream team.
Sabri, what made you change the offer on Jane?
Why aren't I Sharkier?
No, because you actually have a good, fair, heart.
Kind soul. So does Sabri.
No, he doesn't!
Why? King Kong heart.
(LAUGHTER)
VOICEOVER: Single mum Susan Toft is determined to add some sparkle
to one of those dreary household chores.
I'm a human fairy godmother of laundry.
Most people's chores are our bread and butter.
Hi, Sharks. I'm Susan Toft, CEO of the Laundry Lady.
The Laundry Lady is a mobile laundry service,
offering washing and ironing picked up and delivered right to your door.
We service a broad range of customers,
including residential customers,
people living with a disability through the NDIS,
and lots of different small businesses.
We'll even wash your Oodies and iron your Showpo outfits.
I love it!
Love it.
And I'm here for a $750,000 investment
for a 10% equity in my business.
(THEY GASP AND WHISTLE) Wow! Wha...?! Ho-ho-ho!
We deliver our services through a team of 150
Laundry Ladies and Lads.
They are independent contractors who all work from their own homes
using their own cars and equipment.
Mm.
Since starting the business in 2020, when our revenue was just $200,000,
this year we'll hit 3.8 million...
Wow. ..in revenue, and we're set to double that again next year.
But, Sharks, we're just getting started.
There's a lot of dirty laundry out there and we would love
to have you on the journey with us
to clean it up with the Laundry Lady.
Wow, Susan. Wow.
That's so impressive.
It's kind of like Uber for laundry. I love that. Yes!
So run me through a typical transaction along with its costs.
So customers go online.
The Laundry Lady or Lad will come and pick it up from you,
go away and wash or iron it and bring it back to you
same time the next day.
It's $25 per load of washing, and then ironing is per item.
$25 for all of that?! That's right.
Yeah. Seems cheap.
Wow.
Does that include the pick-up or...
The pick-up is $12.50. OK.
And most customers spend on average around $100 per service.
On average? Wow. Yeah.
Some customers will have weekly,
some will even have multiple times per week,
particularly beauty salons or some of our NDIS customers.
So over the course of the year they'll be worth $2,500 to you. Exactly right.
We have a 95% retention rate. Wow.
I will say that I have friends that use the service,
busy entrepreneurs and they rave about it.
Thank you. Absolutely rave about it.
Are there any competitors in this space or are you
the OG Laundry Lady and the only?
So there's not really any competitors
on the national scale that we are.
We're certainly starting to see some copycats. Yeah.
And they're a franchise model.
We're very different, being an independent contractor model.
It means we can get our contractors started really quickly,
easily with low start-up costs,
just $399 compared to a franchise model,
which costs $60,000 to join and get set up.
So do you get an override
of what those independent contractors are earning?
Our contractors are paid an 85% commission. OK.
So you as a company would get 15% of the 3.8 million,
roughly 600,000.
Yeah.
So our margin is actually around 20%
because we have the extra revenue stream of the supplies.
They purchase that themselves through us.
Do they have to buy your stuff?
They do, yes, because we advertise to our customers
that that's the liquids that are used.
This is our first year making a profit.
And we'll have a net profit of around $100,000.
The first two years, we just went really hard
to try and get the business to a sustainable level
and grow it really fast.
VOICEOVER: Susan is aiming to deliver a spotless pitch,
but Davie Fogarty
wants to explore how she plans to scale the Laundry Lady business.
This is what we refer to as a two-party marketplace
because you've got the washers
and then you've also got the customers as well.
What do you see as the bottleneck for growth?
Our bottleneck is definitely the contractors.
Certainly in the last 12 months, labour shortages have been massive.
So we are turning away customers in some areas.
You mentioned that you've just come into profitability
and you're focusing on cash flow now.
But now you're asking for 750,000 and an investor.
What is the plan?
It's about being first to market.
And that's really why we want to get the investment
and grow fast so that we do have that market share
before someone else comes along.
I'm struggling with this one.
When the concentration of competition increases,
I see that you're going to need a lot more money
as this journey continues.
Interesting.
I'm struggling with this one.
When the concentration of competition increases,
I see that you're going to need a lot more money
as this journey continues.
Interesting.
And so for that reason...
..I'm out. Thank you.
You're asking for quite a lot of money at a significant valuation.
Can you tell us what you would use three quarters of $1 million to do?
So there's three different areas that we would focus on.
The first is certainly marketing, and then we would spend
around a third continuing to develop our digital systems.
And then the third is really just beginning on global markets.
We're ready to launch into New Zealand and we're starting
to look at other markets internationally.
Jane?
The whole two-sided marketplace thing really scares me.
At $750,000,
it's just probably too much risk for me to invest.
So, for that reason, I'm out.
Thank you.
My feeling is if the business was at a different size
and it was a different valuation,
then I would most definitely consider it
because I've only heard amazing things about your service.
I may regret it in five years...
..but I'm out. Thank you.
Susan, I am extremely impressed with the fact that you are helping
with Labour in the home, but also creating fabulous jobs for people
on your contractor side.
The challenge I have is really with the valuation at 7.5 million.
Feels a bit high and for that reason I'm out.
Thank you.
And then there was one.
VOICEOVER: Susan is in the fourth year
of her laundry delivery business,
but four of the Sharks have pulled out
due to her high company valuation
and the amount of money needed to beat the competition.
Robert Herjavec is the only Shark left circling.
Susan, Susan, I'm not going to tell you what a great entrepreneur
you are because you are.
Thank you.
There will not be a Laundry Lady leader
and multiple Laundry Lady followers.
You've got to be the winner takes all.
You've got to win this marketplace.
So I do think Sabri is right.
You need more money.
So I'll give you more money.
I'll give you $1 million. What?
But I want 30%
because I've been there.
I see the risk.
I see the scale problems.
I'm trying to price in the risk for me.
So that's my offer.
I will take it, yes.
(CHEERING)
Oh, my God. That's awesome!
Thank you.
VOICEOVER: Susan and Robert have made history,
with the largest sum of money invested in the tank so far.
Well done. Thank you.
(EXCITED CHATTER)
It was an amazing deal from an amazing Shark,
who I think, will be able to open up international markets for us
and help really grow the business.
I am the Uber of laundry. Oh, my God!
Who would have thought? Oh, that's exciting.
That's a great deal, Robert. I'm so excited.
I've got to get my laundry done. Yeah.
CAT: Great work, Robert. Oh, my God! It's a great business.
It is. Oh, my God.
Captions by Red Bee Media