NARRATOR: Tonight...
I am seeking a $200,000 investment.
$60,000. $250,000.
Today we're asking for a $1 million investment.
Wow!
..one of the biggest asks in Shark Tank history.
Whoa! Whoa, whoa, whoa.
While some entrepreneurs are fighting the Sharks off...
Ignore that offer. I don't need to hear more.
..have others bitten off more than they can chew?
Your $15 million is basically monopoly money.
It's not real.
And some home truths are offered out.
I want 75% of the business. Whoa!
I will give you an F-word for your business.
The fact that you're not willing to do that
is a massive red flag for me.
It's only the biggest decision of your life, guys.
So, how long are you guys in Sydney for this time?
We're here forever. Oh.
We moved here. You moved?
How do you not know that? I didn't know that.
I've applied for Australian citizenship.
Or residency, I guess.
Oh, that's awesome. Awesome.
Have you heard "fair dinkum" before?
A what? Fair dinkum.
What does that mean? Fair dinkum, mate.
Do you ever say fair dinkum? No.
Fair dinkum, what does it mean?
It's not, really. It's not part of my natural vocabulary.
Fair dinkum.
NARRATOR: First in the tank and ready to stick it to the Sharks
is Sydney construction manager Annabel.
I've brought in a world-first product.
I use it every single day, I'm so passionate.
I hope that there will be a few expressions of interest.
However, I'm not sure whether I will come away from this happy.
Hey, Sharks. I'm Annabel Hay.
I'm the founder and co-owner of the AHAY Society,
better known for our world-first product, CLUTCH Glue.
I am seeking a $200,000 investment for 10% equity in my business.
Whoa.
I am thrilled to introduce you to this world-first innovation.
Oh, sorry.
Can I just fix this?
Yep.
Wardrobe malfunctions can happen anywhere, any time.
And we all know that you can't rely on fashion tape.
And one day I just asked myself,
wouldn't it be so much easier if I could just glue myself into this?
Four years of R&D later, and now I can.
I present to you the ultimate lifehack, CLUTCH Glue.
And say goodbye to wardrobe malfunctions for good.
CLUTCH is a sweat-resistant but water-soluble clothes adhesive
that is seriously strong
and will not seep through your clothes.
CLUTCH is a global, patent pending,
hypoallergenic and vegan formula that's made in Australia
and made of 100% recycled and recyclable packaging.
Let me show you a few situations that CLUTCH is ripe for.
On plunging necklines.
On shoe clasps that don't sit on your feet properly.
On your bike shorts that ride up.
I have that problem all the time.[LAUGHS]
Sharks, who's ready to bond with your clothes like never before?
Can we see the product, if you don't mind?
Of course you can.
NARRATOR: Annabel is seeking $200,000
for a 10% stake in her game-changing fashion tape alternative...
Thank you.
Thank you, Annabel.
..a sweat-resistant, water-soluble clothing glue called CLUTCH.
Annabel, this is a product that I needed here,
so I've been using the tape,
and it's actually been giving me a rash on my skin.
Does this do that?
It doesn't. So, CLUTCH is hypoallergenic.
It's made with no nasties, no fragrance.
And out of the 25,000 units that we've sold in 2023,
we actually had no reactions.
Look, it stuck. It worked.
Wow.
I don't understand, and I'm not the fashion guy like Jane.
But doesn't it hurt when you take the...
For a painless removal,
we always suggest just dampening the area with a little bit of water,
and that way it just will totally lift off.
What if you have hairy legs?
If you have hairy legs,
I suggest using water to remove it and lift it off.
But if you wanted a free wax, then off you go.
So, Annabel, you mentioned that it's sweat resistant
and water soluble.
How is it both?
Yes, so, CLUTCH has an active ingredient in it
that essentially absorbs moisture
up to a point where then when it's fully saturated,
it will come out.
So if you're at a pool party and somebody pushes you in the pool,
it will come off.
The good part is, is if you sweat heaps and heaps and heaps and heaps,
you just reapply it.
It's handbag-size,
I've even done a sleep test with CLUTCH
and it stayed all night until the next morning
when I decided to peel it off.
What did you do before you started CLUTCH?
I'm a construction manager.
Wow. Wow.
Are you still a construction manager?
I actually am, yes.
Wow.
I knew that as a construction manager,
you just need money and delegation skills, so...
Yes. I love it. On point. Yeah.
Wow. That's so true. Yeah.
I work 16 hours a day.
I work a full-time job in construction,
and then I do CLUTCH full time.
I sort of found it was actually financially reckless
to be drawing a salary from this.
Can we talk numbers? If you don't mind.
Of course.
You've sold 25,000 units. What's that equate to in revenue?
So, in our first year of business,
we did just shy of $1 million in revenue.
Wow. Wow.
Yeah. This year we are aiming to make $3 million in revenue.
And then '25, we're hoping for about 10
and then '26, we're hoping 30.
We have secured major partnerships with retailers
including Priceline Australia,
where we became their third-most-successful product
within a week of launch. Wow.
Next month, we're launching into CVS,
the largest pharmaceutical chain in the USA.
Wow.
What's your profit margin?
So, a tube of CLUTCH costs me $3 to make.
It retails for $29.
Wow.
Anabel, hi, I'm Jane. Hi, Jane.
Tell me about the retail stores that you've been able to get into.
That's really impressive. Very exciting.
So, Priceline we launched the 23rd of December, 2023.
So, it was around Christmas time.
CVS we are about to launch into 10,000 stores.
How did you get into CVS?
I guessed her email address.
Same with Priceline. Same with Woolworths.
Do you know how hard it is to get into CVS?
It's brutally competitive. It is brutal.
Congratulations. Thank you.
Annabel, you can tell you have the Sharks.
The floor is yours now.
What are you looking for in a Shark?
I want someone who can assist with my efforts internationally.
I have the Australian market. I have the US market.
I really want to launch into Asia and India.
There is a huge opportunity there for us.
I need a lot more expertise and connections
to be able to leverage some local knowledge
in those international markets.
You can't just keep guessing emails forever, can you?
I really can't. Maybe she can.
Yeah. She's done pretty...
It's got me this far.
JANE: Annabel...
..I want to offer you all the money...
..for 15% of the business.
Let's just do it.
Whoa, whoa, whoa, whoa, whoa, whoa, whoa.
I don't need to hear more. No, no, no.
I am genuinely the most passionate person here
about you and your product.
I think we're pretty passionate.
I think we're all pretty excited by her.
Jane, I don't think Annabel is that silly
to take the first tidbit that comes across.
Annabel, you have an offer...
Ignore that offer.
You really do have a good business. Like, be proud of yourself.
The biggest pharmacy chain in Australia,
the owner is a friend of mine.
Plus, I've got a massive presence
in Singapore, Hong Kong, Thailand, Malaysia.
So, I can open doors for you locally and internationally.
So, I'm gonna offer you $200,000 for 10%.
You need someone hungry.
That's what makes wealth. And I can bring that.
I made the first offer. I, I, I got it straightaway.
So, basically what you're asking for.
Annabel, I will also offer you
exactly what you're asking for at 10%.
I have connections all through Asia.
Even if I don't know someone directly,
I know someone that will know someone. We can get into anywhere.
If you want to go big, you've got to go global.
And there's nothing wrong with Nick.
He is a big guy in Australia.
Ooh... And Jane is great.
If I heard her correctly,
she said she knows a guy who knows a guy who knows a guy.
I will give you the 200,000 for 10%, exactly what you came in asking for.
Thank you, Rob.
I would love to put my hat in the ring,
but because of my personality, I'm either all or nothing.
And you're clearly very, very passionate about this.
And I just don't have that passion.
So for that reason, I'm out.
Thank you.
Annabel...
..I see so much potential in this.
And you.
So I'll come in at 200,000 for 10%.
I'm also happy to partner with another Shark as well.
Who would you want to partner with?
NARRATOR: Jane Lu, Nick Bell, Robert Herjavec and Davie Fogarty
are vying for a slice of clothing glue business CLUTCH.
With four matching offers on the table,
entrepreneur Annabel faces a big decision.
Who would you want to partner with?
I'd partner with Robert.
Just keep in mind, down that end, you're just a number.
He's absolutely right. With me, you're a number.
A very big number that we're going to make.
He's 100% right.
Davie and Rob, what would your equity be?
We can do 400,000 for 10% each.
400,000. 20%.
Let's become a big number.
Davie and Rob,
I would love to partner with you.
Yeah. Yeah.
Oh, my God.
NARRATOR: Annabel has successfully secured a deal
of double the money, at $400,000 for 20% equity.
We'll make so much money.
I've been doing the show for 21 years.
I don't think we've ever had somebody come in,
get more money than they're asking for for exactly the value.
Amazing job.
Fair valuation, great product, great entrepreneur.
Thank you. Well done. Great job.
Does this mean you're going to get out of construction?
Yes. Yes. Yes.
Please resign tomorrow.
Thank you. It was really lovely to meet you all.
Likewise. Take care. Cheers. Thank you.
I did not expect pretty much all five of them
to be incredibly interested in it.
I think that this is going to be such an exciting next step
for CLUTCH in terms of taking my business global.
Best pitch we've ever seen. That was a win.
[WHISTLES]
This show sucks. [LAUGHS]
NARRATOR: Next in the tank
are Perth-based engineers, Paul and Joshua,
who are hoping it's plain sailing towards an investment.
We've been working towards this for a long time.
It's a really exciting moment for us.
The hard work we've done over the last couple of years
has, you know, led to this moment, and we're ready.
Did you go boat shopping on the weekend?
I didn't, I stayed at home.
Would you buy this? There we go.
I don't know what this is.
It's very... A tiny boat.
It's like a jet foil.
Hi, Sharks.
My name is Paul Steinmann, and I'm the CEO of ENAUTIC.
And I'm Joshua Cribb, co-founder and development lead.
We are a Perth electric hydrofoil technology company.
Today we're asking for a $1 million investment.
Whoa. Ooh...
For a 6% stake in our company.
Wow. Wow.
Sharks, we'd like to introduce the WaveFlyer.
Oh, wow. Look at that. It's incredible.
Gliding on top of the water. It's so good.
So, the WaveFlyer has a range of 100km.
It has an endurance of 4.5 hours.
And it can be fully recharged in one hour. Mm.
It's a fully battery electric craft.
It's silent. It produces no wake.
It produces no emissions.
It's simple to fly,
and it's going to transform the way we use the water.
So, Sharks, who wants to join us
as we fly our electric boat out of the Shark tank
and on to the waterways of the world?
Excellent. Cool.
Thanks, guys. That was great.
NARRATOR: The Western Australian inventors want $1 million
to launch their world's first two-seater electric hydrofoil.
The Sharks have the money. But will they see enough value to invest?
When jet foils first came out, I bought one of the first ones.
Yeah. It was super fun.
That's why I bought it.
I didn't buy it for transport.
Am I going to buy this because it's super fun?
It's a form of transport that's like a boat. OK.
It's a fun toy. It's a bit like a jet ski.
So, the use cases that we see for this
is if you have a large canal property
and you want to move up and down without annoying people,
no wake, no noise, no emissions.
This is a way to get up to the shops, to go to the golf club,
to go to your mate's place.
It's a fun way to get about.
Do you think most people are going to want a foil boat?
If they want to drive fast and have range, they simply have to.
Can I flip it?In crazy mode, yes, you can flip it.
You can flip the whole thing.
If you want to push crazy mode, it comes up with a disclaimer
"Crazy mode", that's awesome. and says, do you want that?
How do I get it back up if I flip it?
It won't actually flip over. Oh, it won't.
No, no, no, no, you might fall out. No.
That's cool.
You kind of drive it like a game.
So you push forward, when you're on a boat, you're in like a boat mode,
and quickly you drop your foils down.
So these actually retract all the way into the hull,
Oh, really. making it beachable, trailable.
Because, you know, when you own a boat,
you want it to do everything you do currently but more.
And that's our goal, is to make technology
that is better than today's offering.
Based primarily on a single Instagram reel,
we've received pre-orders for over $15 million in sales.
Whoa. Whoa. Whoa.
Imagine what we could do with a real marketing machine.
Wow.
We're in discussions at the moment with globally leading manufacturers
for applications in the recreational space, in the commercial space,
and in the defence space.
How much is it?
That boat at the moment is $140,000 Australian.
Wow.
How much will it cost you, do you think, to build a single boat?
About $75,000.
So, you're making an OK margin, not a great margin.
You don't have any room in there for distribution.
So, are you telling me that you haven't sold any yet?
It's all pre-sales.
They've placed expressions of interest.
Right now we're in the closing conversation
with 13 clients with about 17 boat sales.
So, they haven't actually sent you the money.
You've got 15 million expression of interest. Correct.
Yeah, $100 pre-order.
And then that's equated to about 160 boats.
Sorry. Was that $100 or $100?
$100. For the pre-order.
It's a little bit deceptive to say
that you've got $15 million in pre-orders
when you've only got $16,000 of deposits.
Why didn't you take a 50% deposit
and use that money to start construction of the boat?
Because there's about $1 million worth of engineering
that goes ahead of that. OK.
So, you need the million dollars to actually develop out the tech.Yeah.
So, guys, how do you survive?
Because obviously you're not making any money from this.
What's your income? Equity. Equity. Yep.
Equity in this?
We're very lucky to have a reasonably large group.
We've got about 30 people in total in our shareholding group.
How much do you guys own? I own about 6% of it.
I'm currently earning my equity.
I'm a little confused. How much of the company did you give away?
Because I'm trying to understand, Josh,
how are you left with 6% and Paul is working into equity?
What happened to the other 94% of equity?
This company was spun out of an existing company.
So that other company owns what percentage of this company?
They currently own between 15% to 20% of the company.
One of the individuals that was a founder that's not here today
owns another, I guess, about 15%.
You've given up a lot of the company just to get to this point.Yeah.
Without having built something. Yeah.
NARRATOR: Paul and Joshua are seeking $1 million
for a 6% stake in their innovative electric hydrofoil business.
But with 94% of their company already tied up with investors,
is there enough value left for a Shark to invest $1 million?
Guys, I think the product is really cool, really fun.
I just think it's probably too risky for me at this stage.
And so for that reason, I'm out.Thanks, Jane.
Josh and Paul, um, it looks amazing.
It's got, it looks, aesthetically it looks great, right?
But I just don't know enough about the technology.
And I'll be honest with you,
I think your structure is difficult to deal with.
Um, and for that reason, I'm out.
Josh, Paul,
this is very cool.
I'm not really a toy guy myself.
And your $15 million in orders is basically monopoly money.
It's not real.
Guys, for that reason, I'm out of this.
Thanks, Nick. Thanks.
Josh, can we see the video again?
Absolutely.
Oh, there we go.
NARRATOR: With three Sharks out, Davie Fogarty and Robert Herjavec
are yet to decide.
Can the Perth inventors flip the pitch around?
Josh, Paul,
I love this.
It's so cool.
I would definitely buy one.
But I feel like the legal paperwork
is going to cost more than the actual boat itself.
It sounds so messy,
and I just don't want to go in there
and spend so much time with the lawyers
and dealing with the problems down the road.
So for those reasons, I'm out.
Thanks, Davie.
I love toys, like, I just changed up my tender on my big boat
to an electric tender
because everybody's moving towards electric technology.
Look, I...
You had me when you told me there was a 'crazy mode',
I could flip out of it. Like, that was like... Yeah.
You're asking for 1 million for 6%.
Is that right? Correct.
That might be the biggest ask we've ever seen on Shark Tank.
Um...
Hi, honey. Hi, Luce.
Guess what?
Oh, my God, what? A Shark Tank first.
Rob and Davie have gone in together
and both invested 200 grand each for 10% each.
Oh, my God.
Annabel, you've absolutely killed it.
This is so cool. Thank you so much.
Thank you, Lucy, for everything.
I can't wait to just keep doing this with you. I love you.
NARRATOR: With four Sharks out,
Paul and Joshua's only hope of getting $1 million investment
for their WaveFlyer invention
sits with extreme sports enthusiast Robert Herjavec.
That might be the biggest ask we've ever seen on Shark Tank,
but for me to get my money back,
you would have to be spitting out $200 million in profit.
Look, I...
I get new technology.
I love to play
and I love the ingenuity.
If you need somebody to test it out and push it to the limit,
I'm your guy. Yeah. Me too.
As an investor,
I'm out.
Thank you. No problem.
Thank you. Thank you.
See you guys.
I was very excited about Rob's conversation.
I thought that he was giving it some really good thought.
And, uh... But, yeah, so I was disappointing.
Yeah. If we could get Rob's bum on a seat, I think we could turn him.
I reckon if you could have demoed that product...
Oh, yeah.
It is very cool, though.
NARRATOR: Next to face the Sharks,
are New South Wales doctors, Miriam and Rob.
They're on a mission to bring their potentially lifesaving product
to the world.
ROB: We're used to working in high-stress environments,
but this is just totally different.
We're nervous. I'm freaking out.
I'm hoping we do a good job
because this product is going to do amazing things for Australia.
Food for babies? I'm assuming so.
It's quite a good name, isn't it?Yeah.
Taste Bubs. Taste Bubs is a great name.
No matter what, this has been an amazing journey.
I'm really happy to have done it with you.
Likewise. Oh, here we go.
Hi, Sharks. My name is Dr Mariam and I'm an Australian GP.
And my name is Dr Rob and I'm a paediatrician
and we are the co-founders
of Australia's first allergen introduction product, Taste Bubs.
We are here today asking for $250,000
in exchange for 40% equity in our business, Taste Bubs.
Over the last several decades,
allergies have been on the rise globally,
no place more than Australia.
The solution is simple
and the outcome, life changing.
Taste Bubs is a natural food product
designed to help parents face the fear of food allergies head on.
We've taken seven of the most common food allergens,
broken them down into individual sachets in the right quantity
and the right texture.
We are doctors and parents,
doctors that have managed children with severe food allergies,
even anaphylaxis that could have been prevented.
But we're also parents.
Parents that have had to introduce the common food allergens to our own kids.
And it was tough.
We know our consumer because we ARE our consumer.
This is the first product in an entirely new category.
So, we're in need of expertise and we need the best.
Thank you, Sharks. We look forward to your offer.
Great.
We'll show you the product as well, if you like.
Thank you.
Dr Mariam, Dr Rob, you said one sachet per day.
For how long? Is it a week, a month, a year?
Each box contains 28 sachets,
but we do them in a bundle
so that parents have the opportunity
to expose their children to these foods over four months.
Can't they just give the baby a peanut?
Yes, of course you can crush up a peanut,
but it's that extra step
that's a barrier to parents doing these things.
And a big part of the reason
why food allergies in Australia are so high
is because parents put off introducing these foods early.
So, basically this creates convenience for the consumer.
Exactly. Exactly.
What does the product cost?
So, it costs about $12.40 to produce a box.
And we sell it wholesale for $23
and it retails for $49.95.
Do you have any sales today?
So, we've sold 4,200 units in the last year.
What's that in dollars?
So, $120,000 in revenue
with a gross margin of 55
and a net margin of 15%.
Let's chat about the business, guys.
So, you're asking 250,000 for 40%.
Why are you willing to give away 40% so quickly?
You know, this is our first foray into business.
We've had incredible organic growth
that spread really through word of mouth from mums and dads.
What we need is expertise. And, you know, we see your attributes.
Do you worry that you're making health claims with your product?
We definitely appreciate that.
And that's something that we've worked very delicately on.
At the end of the day, what we're delivering is a food product.
This is not a medicine. It's not an immunisation.
It's not an immune therapy.
This is a food product that's been prepared in a way
that's never been easier for parents to give to their children.
Let me sit here for a moment and think.
So, what are your plans in terms of work?
Like, is this a side hustle?
Because we are practising doctors, we are parents,
that will always be important to our brand.
So, on weekends and evenings we work on Taste Bubs
and the rest of the time we're in our clinical work
and we're looking for help.
So, if we invest $250,000 into you,
is someone going to work full time in the business?
We're hoping to use that money for operational support,
so maybe hire someone to take care of the operations.
OK, I'll be completely honest and direct here.
NARRATOR: Doctors Miriam and Rob are seeking $250,000 for a 40% share
in their infant food allergen kit.
But with both still working full time,
can they prove their commitment to the Sharks?
So, if I invest $250,000 in you,
I'd want you working full time on the business
and not making this a side hustle.
And the fact that you're not willing to do that
is a massive red flag for me.
I'm out.
Thank you. Thank you very much. Thank you.
As a mother of two,
I totally understand the use case of this product.
But to Nick's point,
we want someone who's obsessed with the business
and is going to give it 100%
because I'm here to look for an investment, not a job.
So for that reason, I'm out.
Thank you. Thank you, Jane.
Just to be clear, like,
Rob and I are really, like, passionate about this business.
It's not, I wouldn't consider this a side hustle,
but I do think it's really important
for us to stay engaged in the clinical space
for that trust and that reputation.
Agreed.I think you have to stay involved.
Yeah.
Guys, I think it's a great idea.
Here's the thing.
You're losing me on the valuation.
Because if my numbers are right,
you're valuing the business at 600K?
And you have made 18,000 net profit
without paying anyone a salary.
So...
I am really, really sorry, but it's just not for me.
I'm out.
Thank you. Thank you very much.
I'll make you an offer.
I look at your first year as a proof of concept,
but it's a pure start up.
And what you need to do with a start-up
is you need to build a team.
I'm willing to do it with you,
but I think it's going to be a lot of work.
Here's my offer.
I will give you the 250,000.
But I want 75% of the business.
Whoa, whoa, whoa.
You guys are just so incredible.
I really want to work with you.
I'll make you an offer.
So, I'll offer you $250,000
for the 40% that you're willing to give up.
But I'll also need a $5 royalty every unit sold
until my $250,000 is paid back.
And then what happens? And then it goes away.
Because I just don't want to dilute you.
Otherwise it's going to be annoying for me to call you up
and say, "Let's go to work."
Like, I want you to be incentivised and win as well.
Well, it's going to be annoying because you're annoying.
[LAUGHTER]
How are you going to fix that?
Perhaps I'm being too Sharky.
Oh.
It's not fair that I own 75%.
But you know what would be fair?
If you guys owned one third.
I will take my offer down to 66%.
Can we chat very quickly? Sure.
What should we do? I don't know.
I think he really gets the vision of it.
I'm like 50/50 at the moment.
OK, I'll trust you on this one.
So, we've decided...
..to go with Davie. Awesome.
Great choice.
NARRATOR: Mariam and Rob have sealed the deal with Davie Fogarty.
Great work. Thank you.
He's investing $250,000 for a 40% share of Taste Bubs.
JANE: Good one, Davie.
Is this what it feels like losing?
Serves you right for being a greedy pig. Dammit!
I can't believe it. I'm so excited.
I'm, like, so happy right now.
That was awesome. Yay!
And, Davie, we've struck gold with him,
so we're really, really happy.
NARRATOR: Coming up, the temperature in the tank heats up.
How did you get to the 300K valuation?
I googled and I followed a formula and that's what I got. So...
I will give you an F-word for your business.
This looks very exciting.
ROBERT: This is on brand for you, Jane, I think.It is.
As long as it's not, like, non-alcoholic, like, wine.
Then... Then I'm out.
Hi, Sharks.
My name is Katharina and I am here
to introduce you to my obsession - wine pouches.
I'm asking for $60,000 for a 20% share in my business.
I own a company called Wine Not the Brand.
And we manufacture Australia's only custom branded wine pouches.
Shipping heavy, expensive bottles was just not working for me.
Like every Millennial, I took an online course
where the first product module pointed out
that a successful e-com product should be lightweight, easy to ship,
and have a unique value proposition.Good.
I officially launched in 2022 after over a year of research,
development and investing
into a one-of a-kind pouch-filling machine.
Over the last two years, we've sold around 10,000 units
and over the last few months I've been overwhelmed with inquiry
from winemakers, vineyards, consultants, distributors,
even spirits and cocktail brands all over the world
clamouring to transition to flexible packaging, who all need our help.
My personal goal is going big,
focusing on airlines, festivals and stadiums,
as well as continuing to build our direct-to-consumer base.
But I need help scaling to capacity and quickly.
So, Sharks, why not try your first-ever wine pouch
and be a part of history in the making?
Well done, well done.Yeah. Good job, great job. Can we try it?
Yes. Yes!
NARRATOR: Katharina is introducing Australia's first
customisable wine pouches with personalised branded packaging.
I have a little surprise for you.
I've actually taken the time to do a little bit of research,
and I have created custom branded pouches based on your business,
brand and personality.
I'm so excited. That's impressive.
So, we do a red, a white and a rose.
Thank you.
Oh, cute pink outfit. Well dressed.
I know you're going to live to 150.Oh, you've done your research.
So, this one is a water pouch. I love you.
This is great. Thank you.
It's good.
Mmm.
Katharina, tell me about you. How you started.
Yeah. I was, well, I was in direct sales for 12 years.
What kind of direct sales? I was doing network marketing.
Oh, wow. That's tough.Selling skincare, nutrition, beauty.
Yeah. You can see the sales skills.
I did very well with network marketing.
And I used that money to buy the machine,
to buy the inventory to, you know, go to the events, learn the things.
What do you do now? Now this is my baby.
This is what I really am focusing on.
Have you ever started a business before?
Before Wine Not? Yeah.
No.
I'm just not clear what your business is.
Mm-hm.
Are you in the wine business,
or do you make pouches for wine manufacturers,
or are you a direct to market branding company?
Yes.
So, I originally started as a wine company and we made our own wine,
and then we pivoted to pouches through COVID.
Then from there I started doing custom branding for other people.
Now I'm being approached by wine makers, vineyards,
consultants who own their own wineries, own their own vineyards
that want us to do co-packing for them.
OK, so I call you up and say, "Hey, Katharina,
"Can you put my really cool wine into plastic containers?"
Yes. That's why I would go to you.
Yes.
If I'm a wine manufacturer, I could probably afford my own machine.
So, why would I come to you to do it for me
instead of buying my own machine?
Because even with bottling,
wine manufacturers generally don't own their own bottling equipment.
It's a service that's outsourced.
So, your advantage is you're a manufacturer or is it branding?
She started two years ago.
I think she's still at the stage
where you are pulling on all the levers to see what works
and to understand the business.
Well, maybe I'd understand it better
if you told me your sales and where they came from.
So, over the last two years, we've done about $60,000 in sales.
Per month.
No, annually.
Oh, OK. Yeah.
And where did those sales come from?Initially it was direct to consumer.
So, we were doing online, just building that database.
Then as I started to get more commercial clients,
I started focusing on that because the order volume was larger,
simpler to focus on one person.
What are your margins like? Roughly.
These ones cost about $3 to manufacture. OK.
I sell them for about 11.
These ones cost about $3 to manufacture.
I sell them for $7.50 retail. It's very cool.
Like, I could imagine for when we have our conference, Bitchcon,
like, we could give everyone one of these.
So, why haven't you grown more in the last three years?
I haven't focused on one thing long enough, pushed it.
I haven't done any paid marketing.
So you haven't done any paid marketing on social media?No.
You haven't boosted a post?
It's not my expertise.
I'm still...
You're...
Gosh, if you weren't as nice as you were,
this would go completely differently.
I'm struggling to understand what the business is.
When you came out, I was super excited.
Seriously, I thought you were going to come out and say,
"I have an exclusive contract with sports stadiums."
I just signed a deal with an airline.
I can imagine these on an airline
where you get, like, a one use or on a train or places like that.
But that's not it, is it?
That is where I want to go. But again, I don't...
I think it would be foolish of me to say I know it all.
I don't, I don't, like, I don't know what it looks like
to build to that scale.
I want to build to that scale.
What's your plan of attack for this business?
Because as Robert mentioned earlier, is it branding? Is it wine?
Is it packaging? Like, which direction do you want to head in?
I think all of them could work.
If I do go for airlines, I don't know what that looks like.
I don't know if it's a commercially smart idea or not.
Direct to consumer I know will work 100%.
I'm happy to throw myself at that and make that work.
But then co-packing is such a unique opportunity
because the industry is pushing for flexible packaging.
No-one else is doing it, so there's that,
but I don't know how to sequence them properly.
NARRATOR: Katharina is asking for $60,000
for a 20% stake in Wine Not, her branded wine pouch company.
But the Sharks are confused about what exactly the company is.
If you're everything to everyone,
you're nothing to anyone. To no-one.
Katharina, let me ask you a question.
Of those three components, which one makes you the most money?
The business to business.
And what are you most passionate about?
It's not about the passion. It's about where the money is.
Where do you think you can make the most money?
Direct to consumer. OK.
The margins are the highest, direct to consumer.
Katharina, have you invested any money in yourself? Yes.
How much? About $200,000.
Wow. What?
Wow.
Katharina, I will give you an F-word for your business.
Focus.
Pick one and really get behind it.
You are clearly a hard worker.
Get the one that you think you can get behind,
the one that's going to give you the most money
and you will be successful.
But until you do that, I'm afraid that I can't invest.
So for that reason, I'm out.
Thank you.
You are highly investable.
You're driven. You believe in it.
But I just...
I'm struggling to get you to tell me what the path to market is.
And it's OK if you don't know, because you're going to pivot.
All great entrepreneurs pivot.
But what I hear you saying is,
"Well, we're going to try a bunch of things.
"Give me your money and we'll see if this works and that works."
It's hard for me to believe in the path.
You're a highly investable entrepreneur,
but I'm not sure it's a highly investable business.
I'm out.
Thank you.
Katharina, I'm certain you're going to be successful,
but I don't think it's going to be this product.
I think that if you're doing co-packing,
the best customers that you build a strong relationship
are going to churn first because then they can afford to buy the machine.
There's no unique, strong enough value proposition
to protect it with a direct to consumer and business to business.
I wish it came in with something else that I could get behind,
but unfortunately I'm out.
This is not going how I planned, folks.
NARRATOR: Katharina is seeking $60,000
for 20% of her wine pouch business,
but so far her lack of focus has lost three Sharks,
leaving just Nick Bell and Jane Lu.
I really want to give you money because I think you're amazing.
You present well, you talk well.
I just don't understand this business.
I want to give you the $60,000, but I don't know how I can.
Like, give me a reason, OK? Please.
What if I just did this?
What if I took all of them off the table
except for business to business?
I'm going to take them to airlines, festivals, stadiums.
Focus on that.
I just cannot see how this is going to work.
So for that reason, I'm out.
Thank you.
The wine drinker. Ooh, the wine lover.
The connoisseur.
How did you get to the 300K valuation, then?
Calculated the machine.
70 grand stock that we've got
about 20,000 worth of, um, pouches in stock still to use.
Then we had about 20,000 to 30,000 worth of orders coming through.
But the orders would deplete the stock,
so we couldn't just add to it. Yeah.
How do we get to 300K?
Because again, like, Robert, so excited.
Yeah. Wine business. You're great.
Um, and then the valuation
just seems a bit disproportionate for the sales.
OK. That's good feedback.
I googled and I followed a formula and that's what I got. So...
I just think this business can't succeed
unless you nail the focus and nail the marketing.
And that's why I think I'm the right Shark for you.
Ooh.
So I will make you an offer.
I'm going to offer you all the money.
But for 40% of the business.
60,000 for 40%.
Mmm.
Would you do 30?
I'll come down to 30 when I get my money back.
I think that's fair. Let's do it.
Yay!
NARRATOR: Katharina has done it.
We're gonna have fun. We'll show these guys.
She's partnering up with Jane Lu.Yay!
You made the right decision.
For a $60,000 investment in her business.
Appreciate it. Enjoy your wines.
Thank you, thank you.
Good luck.
Captions by Red Bee Media