[Music] next into the tank is a product to take your victories to the next [Music] level hello sharks my name is Matt Walsh and I addicted to winning and I'm Dax Holt and I fully support his addiction and we are here seeking $600,000 for 8% of our company trophy smack over 50 million American pour their hearts and souls into fantasy sports every year for a chance of Victory friends battle it out for months on end smack talking one another investing ridiculous amounts of time and energy for the winner to walk away with what empty bragging rights a generic Little League trophy I don't know about you sharks but when I win I want everyone to know and that is why we created trophy smack the best place to get the most unique and customizable fantasy sports trophies blinged out rings and over-the-top Championship belt I mean imagine walking into your next draft party with this bad boy in your shoulder so it's super simple you go to our website you choose your sport then your size and your color there are literally thousands of trophy combinations to choose from to create your very own dream trophy so we understand how important winning is here inside the tank so we went ahead and we custom designed trophies for each one of you sharks so go go ahead and unveil the greatness next to you wow I like mine a Golden Slipper a Bull and Bear stock market baby Wall Street I actually like the one I already have that's in my office how did you guys come up with this so it happened in the most organic way credit card out looking for something awesome I'm in the finals I'm the new guy in the league with all the dad friends and it didn't exist so just joking with the guys hey guys I wanted to just get a six-foot Trophy and I wanted to ride it in like a pony and just show you guys how much I obliterated you all but since it doesn't exist I have to start my own app but I I don't get why that doesn't exist I have ordered trophies for my business my whole life every type of trophy why couldn't you use a regular Trophy House what's the difference here so the trophies that exist today just sort of that same antique looking yeah with the guy with the you know standing and everyone was kind of selling the same thing so when we came on of the scene we were the first company where we had the ability for someone to change the colors on the Fly change the got did you design it we designed everything so what are your backgrounds professor of mine gave me invaluable advice he said Matt if you want to be a really successful entrepreneur you need to get into supply chain and Logistics to really figure out how businesses operate and how they function and execute so first job out of college I took a job at a freight brokerage I Rose was at the top of the company in 2 years wow I was the number one salesperson in the company brings up a good lesson for people whatever you're doing be the best at because once you're the best at something every door opens up and then you learn where you can be a great entrepreneur so good for you for focusing on being great at what you did absolutely my background is completely the opposite I come from TV and film doing Entertainment News TMZ how much did you invest in this business to get it going we we invested $250,000 wow that's a lot of money why do you have to invest that much to get this going what is it you spent your money on so in the beginning we started small initially it was a $60,000 injection um and in the first 3 weeks of getting into the fantasy football draft season sold out of everything what's the average cost the average price is about $150 $160 what does it cost you to make it our average profit margin is 80% 80% can you walk through the revenue growth first year what you sold what you made yes so uh year one January 2018 we uh we did $850,000 revenue and year what did you make what did you make on the 850 we the first year we had about a 200,000 net that we just rolled right into inventory and next year 19 year two uh 2019 we did $19 million wow okay you made what on that we had 775,000 uh grow gross profit and we netted around 500 and this year what are you going to do year to date so in spite of the pandemic our uh revenues year-to date are up over last year we've done $650,000 in Revenue so far the opportunity for us is a lot broader than fantasy so corporate Awards employee recognition youth there has to be a ton of competition in that space a ton there's a reason why no one in the trophy and awards space has really taken a national approach on e-commerce the traditional way of building trophies is is crazy the assembly process in our first year assembly was more expensive than cost of goods the way that we developed our columns the assembly time was cut down by 90% now I get it you're a logistics guy yeah everybody else in this space can't do what you do because anybody else would take years to get up to speed to where you are correct yeah okay guys so I I really respect people who play sports people are sports fans I kind of respect them fantasy guys so let me tell you a story I was trying to date this really hot woman and I realized she never had a date on Sunday cuz these morons was so busy watching sports so no matter where I was at in the world I would make sure that I got to New York on Sunday to take out this smoking hot woman and I remember her telling me you know I really don't like guys who like sports cuz you know I I'm alone on Sundays and I said said I will never watch a sports game my entire life if you marry and I married now so that's awesome I'm out thank you guys look I'm going to make you an offer I'll give you $600,000 for 25% of the business and my value is to try and work it into the corporate Market which isn't that easy well wait a minute wait a minute what do you want the money for and what is it that you need we're looking for a strategic partner right we don't want to just continue doubling every year we want a 10x Matt what would the Strategic partner bring you so whether it's opening up the doors at Arenas um for U products within the stadiums right commemorative rings are you here just for cubin I think so no we are not what do you want to do Mark what is Mark doing so guys I mean I like what you're doing I like the fact that you're Hustler right and you're looking to touch all the pieces and you're just following the money the question is 8% isn't enough I'll make you an offer I'll offer you the $600 ,000 but I want 177% appreciate the offer thank you very much it's either a yes or no cuz I'm not I'm going to make you an offer there you go then I'm out that was that was a fast yes or that's not clock clock hear my off answer her that's not fa unless you want to say yes you so I'll tell you my offer it's it's your decision right I'll tell you my offer let's take a deal deal done let's go deal next into the tank is a way to make home brewing [Music] simpler hey sharks I'm Aaron and I'm Brett and we're from Boulder Colorado we are asking for $500,000 for 2% in our company ouch wow who doesn't love sipping on an ice cold craft beer am I right but the reason why beer lovers everywhere aren't making their own beer at home is cuz it's not as easy as it looks no it takes tons of time experience expertise and the worst part is you can spend weeks on a single batch of beer and it can come out terrible that's why we've revolutionize the craft beer making process taking home brewing out of the basement and turning beer lovers into beer makers introducing beer maker beer maker this is the world's first all-in-one countertop craft brewing Appliance that anybody can use all right sharks Aaron and I are going to quickly walk you through a demo of this product just to show you how easy it is to use first thing you do is you take your maker kit you connect the bag into the machine open it all up pour in your grain The Next Step you do is basically fill the entire machine up with water close it all press the button on the front and over the next 24 hours beer maker is going to bring up the temperature inside the machine mashing those grains in liquid and creating War which is a sugary liquid next you get a notification on your phone and it says it's time to pit your yeast so open the machine back up you pull out that basket of spent grain you then put in your yeast you put in your hops close the machine back up press the button on the front and again over the next 5 to 7 Days beer maker is going to perfectly control the pressure and temperature inside the unit finally when that process is complete you get another notification and saying it's time to tap your beer so you remove the bag of clean fermented beer bring it over to your beer tap which is included in the package simply install the bag of beer inside the beer tap screw in the CO2 cartridge that comes inside your maker kit and about a day later you're drinking cold carbonated fresh delicious craft beer that you made yourself wow it was 9 days till I got a beer right it depends on the recipe so each each different type of problem with that yeah no no no I mean it's craft beer Kevin okay is worth $25 million so before we jump into the valuation question do you guys want to drink some beer yes and another question how many beers will you get out of it so beer maker makes a 12-pack of beer and the maker kits themselves cost $15 so starting at the lightest that's her future IPA that has a little bite to it it does I like it thank you so the next up we have our ghost wheat which is a classic American style wheat beer so next up we have our Redwood IPA and That's a classic West Coast style IPA I'm going to give this IPA a 9 out of 10 awesome thank you and the only reason it's not a 10 is the arrogance of your valuation we'll get to the air promise we'll get there Kevin now we're on chubby Kevin they named this one after you that's chub the chubby Stout I really like this one guys how did you get into the business the first place so first and foremost we love beer I was a home Brewer for 15 years um and you know honestly we we met at Cornell um Brett and I were in the business school together and we started the company in an entrepreneurship class at Cornell and it was for home brewing temperature control devices you're Cornell mbas yes sir so break down the numbers for me sure so this cost us $375 to make and it retails for cost you 375 for Allin all the pieces y including the first one batch of consumables delivered to your home and you sell it for $4.99 how can you sell it so cheap there's no that's no margin so we have we have two revenue streams one is replacement of consumables and all that what we want to do is we make sure is we get as as many machines out in the public as possible and build up we'll go into the consumables ex yep yep exactly so the consumable side of things it cost us $9 to $10 per um ingredient kit at scale we can get that down to $7 per kit is it subscription just reorder we're encouraging our users to go into a subscription system okay what's my monthly cost for subscription $15 per 12 pack what is your retention rate of the subscriptions so we're not there yet I mean you're not selling any of these yet so we are shipping them litera dudes I'm going to punish you we did our kickstart in 2018 and we're delivering those 1,200 units in the next two weeks how many of you shipped so far we've shipped about 24 of them so far so I should pay a million bucks per unit you ship I just like to point out had you shipped 50 then you'd be worth 50 million how much money have you raised we've we've raised about $3 million so far valuation depending on the round between 5 and 10 million just makes no sense to me you it's like coming in and asking us to believe in the Fairy Godmother you have virtually no sales you have $3 million put into it already uh and you have no proof of concept even I I must be missing something basic but I'm out we did have some proof of concept when we kick started we sold a thousand of these things in one month um and this is and like I said deled them nor have you gotten the feedback honestly you know to Barbara's point the problem for me here is everything tasted really good but because you haven't had that in consumer's hands and I don't know what's going to happen I can't invest at this point I'm sorry I'm out look what you what you're setting out to do is right on sure the the challenges your margins because you're going to have to to Really retain people and I think that's going to be a lot more expensive and even if the valuation is in the realm of where you're at it's going to be hard to generate enough profits to give me a return and so for those Reasons I'm out well to address those particular points address it with other sharks am let me let me tell you this first of all one one piece of advice is when you come in tank you have to make it attractive for us to make some money yeah when you come in here and you say 500 ,000 for 2% five of us got turned off so for me valuation very competitive and we don't know what we don't know for those Reasons I'm out Kevin I'm a reasonable man and i' like to give particularly for entrepreneurs that at the end of the day the product is excellent you have not heard anybody say this beer isn't great absolutely and I consider myself a connoisseur of all things with alcohol in them my my inner instinct is to eviscerate you but I'm not going to do that because so interesting so how do I encapsulate this ridiculous valuation but still be a partner with you now let me show you how to do it no royalty at all no royalty I just take what I do in the wine business and apply it here $500,000 it's debt I'll do it at 9% told you 36 months straight debt which you can afford if if you believe your numbers okay and I want 4% Equity you can figure out stay out of the cap table give them to me's advisory shares I would do that deal and you should seriously consider it because you're not going to get a deal from anybody else there's an offer what do you want to do well would you be able to go for 2% with the debt I'll do it at three I'll meet you in the middle I have an MBA too unfortunately we're really worried about the working Capital implications of that I don't want to fight with you about valuation we're never going to agree so okay let me give it a crack $500,000 and 9% is $3,750 a month you guys feel you can cover that that's not that's not a lot of money we yeah we could cover that the problem though is after we're done paying that back we have had to pay back $500,000 plus 9% over three years that's why yes right so in which case it's we're still now you have a partner that millions of people know and trust in these beverages if you don't want to do it don't do it I'm afraid that we're not comfortable with the de that's okay I'm out all right first in the tank is a product that brings all the conveniences of your kitchen to The Great Outdoors [Music] hi sharks I'm Taylor I'm Ron my name is Kobe and we're from Grand Junction Colorado and we are seeking 250,000 for 10% of our company that will revolutionize the outdoors forever have you ever unpacked your campsite and realized you forgot something important like salt oil or a spatula does your pick cable look like this well ours did we were so sick of disorganized camping it was frustrating so we came up with this idea that there has to be a better way which is why we created tailgate and go tailgate and go is a portable modular outdoor kitchen and dry box that you can take anywhere camping fishing tailgating any Outdoor Adventure it starts in this simple box most of our attachments fit inside the [Music] Box the modular design enables you to put the attachments in any 10 locations around the Box this patented modular design enables 360° of function and versatility oh wow wow it has everything you need from your your kitchen at home even sinks nice tailgate and go is a one-of-a-kind product there's nothing like it in the marketplace but in order to be a success we need your help to reach our full potential so sharks let's all think outside the box and start an outdoor Revolution good job guys really cool really cool how'd you come to invent this we went camping we're sitting there searching for a spatula for 30 minutes we're arguing so we finally just said hey let's go home and invent this so we get home and just all the Ingenuity just came really between the three of us of what do you need a necessity in your kitchen how long ago is this one year so this has only been on the market recently year and a half wow how much does this go for retail well there's three different models the first model is the full-size model and it costs about $1,000 500 oo W our second model is the Overlander and it sells for around 1,400 oh and we have a brand new model and it's about 1,000 how many have you sold we have sold over a 100 boxes we've only gone to six trade shows what is it cost you to make so for our full-size model $748 to manufacture our second model costs about $728 to manufacture and our River box costs $500 to manufa faction and where do you make these everything we make is in Colorado right now so two questions one what does it weigh 75 lb on the large box 55 on the small box okay and then we have new products coming where when they're in plastic they're going to be much lighter so what does it cost to ship that then uh around 120 150 do you have any patents we have two patents they're both provisional utility patents on the railing here how we can put everything in in the slots on aluminum and what's most important Rotom mold plastic Guys these aren't cheap to build particularly when you're starting and making mistakes and iterating how much money have you invested have you raised any outside Capital no so what we did we took our savings we got two I got $250,000 invested in this entire process we're real tight with the money and one of the reasons we're here is because we don't want to make a mistake at the first of the product why is this business worth $2.5 million you know I have to ask that question and I'm doing it in the nicest way if I don't like the answer then things get ugly with the patents that we have there is no other product like this and I feel we have this window to take over the whole outdoor I don't think I like that answer enough we need to scale this puppy we need to scale it fast and what is the 250 going to be used for inventory product before you said you could bring the cost down by going to plastic including the entry level unit of a th000 so is that you're bringing that down to what price point yeah our cost on that is around 748 we can bring that down in the 300 200 range so you're retailing it for 7 SC we scale in Source SC we're completely in Colorado right now so we could get those prices down even in America I'm you know being in Colorado is not a bad thing but first let me say this you know there's an old saying necessity is the mother of invention yes you guys had a problem you came up with a solution you turned it into a business you saved your money to be able to do it yourself without any outside help right you are the American dream I mean that's incredible that's the good news right the bad news is I don't glamp it's it's just not a fit for me so for those Reasons I'm out but congratulations guys it's just awesome awesome awesome what you've [Music] accomplished you know I don't know very much at all about tailgating I always like to kind of know what's the landscape before I invest in something that's so at the beginning stages and so for those Reasons I'm out in the last 6 months we've tripled our sales we haven't even gotten out there yet you know I I look at this and say the proof is in the fact people bought it but you're not worth $2.5 million so that was a big ask I love the patent stuff and all that this is a cash flow business in other words it sucks up cash as you build inventory so here's an idea I'm just throwing it out there this kind of fits in my my chef Wonderful World although I hate camping if I don't have a mint on my pillow I don't sleep there that's how it works you need a line of credit here's an idea you can consider it I'll give you the 250 line of credit I want a 10% interest on it I want the 10% Equity that somebody buys you out and I want a $100 royalty per unit against the 250 I don't hear any other offers Kevin didn't give you the fine print the royalty is forever know that guys I could blow this up so big on social I'm just worried you can't do the orders I mean I got millions of followers well that's why we need sh I know let me just a jump in I understand this Market I have the ability to talk to the customer that you're targeting because I'm Vice chairman of Miami Dolphins I spend my Sundays at NFL games we have the largest privately owned soccer tournament in the world and I know how to talk to the Sports customer that you're looking to go after what concerns me is that when you're looking at Avid fans they are so vested in their own set up that I'm just not convinced that there's enough customers out there to make that a very big market and for that reason I'm out oh ooh Matt I think this would be perfect for you we could take this to the college football levels to NASCAR because people love their tailgating as you know and when they have a custom box that's whatever football team that you like that's a pride thing they live it you know what you have the gift and the curse of I think what all of us have up here as entrepreneurs when you first start out you want to be everything to everybody and when you say there's nothing else out there in the market that makes you want to keep improving it that think you're going to burn a lot of capital trying to keep improving and that's where I'm scared so I'm out to me I think you're actually just here a little bit early I mean if you had validated a little bit deeper then there's still Mr Wonder only believed in you we're going to take it to the end we just wanted some help scaling sourcing distri Hing that that's why if we would get a shark today that says okay let's make this happen and say to my offer basically in a nice way I am saying no to your offer in a nice way then there's nothing more to do [Music] here respectively can I just say we've worked our asses off to get here every day working so hard so just my dad and being here with my brother I'm so lucky yes I agree we've been working so much for so long towards this goal just to be here today it feels like we're Champions already okay thanks for your time guys congratulations great experience very cool you did a great J you guys you guys could have ceded it doesn't hurt to ask four sharks are out the Johnson family rejected Kevin's offer of $250,000 as a line of credit for 10% equity and a royalty of $100 per unit sold of tailgate and go you guys could have counted it doesn't hurt to ask we would go 250,000 for 15% how do I get my cash back how do I get my cash back that's the question you're going to get your cash back as soon as we get these boxes Tri a Never End cost of capital as you grow I'm a shark I've been doing this for 10 years this business it will consume millions of dollars it's not a horrible thing if you can manage it but the thing you won't have just so we understand each other is you won't have me and I'm Mr Wonderful and I can take this on social to the Moon they'll be setting these up on the Dark Side of the Moon if I get involved but that's my whole point oh my Lord can we have one second can we talk we go talk yep you think you could sell this on the Dark Side of the Moon yes Matt so let me get this St let me get this stra everybody's out but Kevin but you're giving a counter to Matt okay Matt what do you think about $250,000 at 20% my concern is similar I don't want to wait to get my you know cash back is just sitting there hoping for an exit I'm not sure how big the business is going to be so I need a way to get my Capital back would you consider like a small royalty or something on each box royalty did I hear royalty to show you I'm not greedy I will cut my royalty down to $50 a unit which is very reasonable your margins are okay and then you have a deal and you have a shark and I get behind it on social and we blow it up but even if I get behind it I'm going to get you more orders than you like I see see now I feel like I have to go I have to save you here's what I'll do 250,000 straight equity for 20% I said we'll do $50 royalty until I get One X back and that's my best offer what how much Equity are you taking I'm taking 20% Pig I I don't think that is greedy it's outrageous I bring a ton to it you're stealing from this family I'm helping this family I'm protecting his family from you okay okay okay Matt let's do your deal let's do your deal yeah back out back in back out back in doing great did such a good job your PCH guys now Matt what's very important here is now that you've learned how to structure deals for Mr Wonderful I will be sending you an invoice that crazy that's awesome e