all right everybody stand by please here we go we're starting the pitch stand by next up is a product to Aid a favorite childhood activity [Music] hi my name is Conor Lewis from St Louis Missouri and I am the founder of Fort I am seeking $500,000 for 10% of my company wow so sharks my story goes something like this my daughter and I were building pillow fors in our living room and I found myself going don't take that beige couch cushion that's mom's favorite blanket not the dining room chairs and spending all that time cleaning up the mess after she went to bed it hit me there's got to be a better way to do this right and that is where the idea of Fort came from storable stackable wipable completely modular system to build the ultimate pillow fort but get this it's all held together by magnets oo and as I like to say yay science so the best part about building a pillow fort is this part which is diving on it diving on it absolutely so chks who wants to save the couch Christi of the world and build the ultimate pillow fort with me good job I think you win the points for the world's best dad that's for sure but what is your background how did you come up with it so um I was working in marketing and unfortunately I lost my job during Co in April last year and I was wondering like what am I going to do with my life um I had always wanted to be an entrepreneur but there was just this like huge fear that I wouldn't be able to take care of everybody and my wife has a really good corporate job she's a CPA and and I had just enough money from Severance I sold my car and I had this idea for a magnetic pillow for so Connor how are you selling this product we're completely focused on Direct consumer I ended up taking a business partner who owns 5% of the company right now he has put in all the operational Equity he has the opportunity to buy in up to 40% based on Revenue Target what triggers that uh Revenue targets but hold on let me get to the price so the price right now currently is $4.99 for this full set right here you see on the far right um it comes with 12 five cush five cushions yes and $14 magnets $500 that's a lot of money that was one of the biggest challenges we had early on so we launched on Kick absolutely is you're absolutely right so we launched on Kickstarter in January 20121 my claim to fame is I sold $2 million of products in 10 hours yeah $2 million in 10 hours ended up doing 3.1 for the whole campaign we've done 4.5 uh today yday and it was at that price at $49 99 no our average purchase price was $269 W have you delivered on the kickstarter we're delivering right now I I have about 400 units going out today let me talk about the cogs for a little bit so um when we launched like I mentioned the the average price with shipping included was around 2269 my original cogs were around right at $200 landed and then added a $50 shipping charge this strategy was first of all I wanted to be able to see if I could actually sell this right I knew it would be more expensive than the competitors the magnets alone cost $60 a unit why aren't you using velcro like everybody else because I we ran a lot of surveys and parents un unanimously hate Velcro so what we did was we sold at a loss for the first day um and at 269 yeah with shipping include parents really Kevin let finish let finish tell us your thought process here yeah what I realized was that shipping obviously International Freight not only that but of course this product is hug to ship when I realize how high volum I was selling I ended up selling almost 13,000 units at Kickstarter you know it's unbelievable right you do like $2 million the numbers are rolling all day right and I let codependency set the price and set what the customer wanted after I realized I oversold the first day I was like oh I have to work really hard to sell the rest of this campaign and I didn't sell enough to important is is the people out there that joined into your Kickstarter right they were excited to get the product you let them dictate the price but then you had to to go back to the factories you had to figure out the shipping and you had to say oh my God how do I do this for $269 yeah we realized we're in the hole we didn't know how big the hole was so we started selling at a high price point we sold qu million dollars in another 24 hours right and this is in May a few after after what price $4.99 so so doubling the price actually didn't hurt you you're saying no we've been able to and we've continued selling now we're selling a product that no one has gotten yet we're currently shipping out our Kickstarter I have 177,000 units coming from overseas right now and no one has received the product so it's never shipped in yet listen I have a couple of big concerns here number one is that you don't know if this is going to work right you've got an enormous amount of orders sitting there nobody has the product yet you don't know what the customer feedback is if people love it what your returns are going to be abely I mean that is a huge concern right now right the good news is you have their money first I I do and so this is where we get to like the international Freight challenge the last 30 days we've had all we've had great suppliers I have an incredible 3pl I'm working with who' all like totally gone to bat for us and I've found myself like staring at the numbers and being like oh this is this is bad thing I'm assuming you've burnt a lot of cash in yeah in all basically all of it all of it you're selling yourself out of business it could be put that way certainly I mean it's a really tough situation right it is aough you're like Jo I yeah but this is super hard I mean like yesterday my wife literally like sat on the steps in our house and cried because like this is hard you this super hard you're going to figure things out like you're that person who's not going to crumble you're going to figure it out but at least you're being really honest with us about what's happened I want to understand a little bit more about your partner you mentioned you brought a partner in for 5% and more importantly what triggers the 40% he will get 40% if he and his team are helping us get to $30 million in Revenue gross revenue gross sales yes what is it that he's technically doing so he has the relationship with his supplier that he's done tens of Millions ions of do so he works with the factory yep he has full marketing team ad buyers and we both agree that this whole that I have sunk us into we can be overcome in the next few months let me take a stab at this all right I see a whole bunch of problems I'm sorry I mean first of all your cost of goods are way too high I don't understand why in the world you'd spend $60 on magnets when velcro's just fine I don't buy the story that parents can't deal with velcro giving away 40% to somebody for no cash which is your number one problem makes absolutely no sense to me I'm sorry Connor I'm out a great case for what not to do as an entrepreneur right people can learn a lot from your experience and look I think you can survive this it's not bad that you work with somebody else who didn't provide cash right because expertise cost you one way or another so getting their expertise is fine M but the trigger for their 40% being set to sales mhm means that if any one of us invest the minute we close the deal and we help you get to 30 million we're diluted by 40% immediately so for those Reasons I'm out thanks Mark I appreciate it Conor you know this is just not a proven business yet you've got all the sales but you might have a 50% return rate and we just don't know that yet it's just not an investable opportunity for me so I appreciate that yeah so I mean it's obviously a really challenging situation at least you're honest about it you know I have to be right I can't something have to be I mean you're such a good person I can tell I would have been in on you in a heartbeat instantly but now you've you found someone else it seems that's trying to get you out of the hole so I think you have a partner in there right now that's doing a lot of the things that I would have tried to do so unfortunately I'm out I appreciate that thank you so there the story you all there's still Robert still Robert I think you have a level of humility yeah that really comes through thanks and I think people always think to be a great entrepreneur you have to be arrogant you have to be full of yourself it's the complete opposite you've got to learn in life all the time we're all learning I mean I love that and I love the product I just like I'm I'm trying to talk myself into it sure I it's a tough sell it absolutely is my friend don't but never put yourself down never ever do do that okay always believe in yourself despite the challenge Robert you can solve this problem with $500,000 you get 10% I wish it was less money cuz I'd love to believe and invest in you but it's can't get there for 500,000 I'm sorry I'm out that's okay I appreciate you all this has been an ABS honor it's been wonderful learning experience for me Lu good luck bye it's much more overwhelming than I thought it would be I think they saw me they saw they respected what I did and they saw the very real issues that I kind of created so I I'm I think I'm okay with that you know first into the tank is an easy way to brighten your living space where are they they changed their mind good morning sharks I'm Caroline and I'm Rose and we're the wife and wife dynamic duo from Denver Colorado and we're here seeking $150,000 for 8% in our company poplite when we first moved in together we needed to install wall lights on both sides of our bed now sharks we're pretty handy but installing wall lighting is a real hassle punching holes in your wall running wires for electricity patching drywall who has the time we could hire an electrican to do it but that could cost over $1,000 in this economy we thought there could be a better way to install wall lighting and sharks that's when we had our lightful moment let's show them how it's done this is poplite poplite is modern stylish wall liting that's as easy to install as it is to remove popline installs in seconds the base attaches to your wall using double-sided adhesive no tools required plus the poplite base has a built-in level so you'll always stick The Landing the first time that's cool all have to do is swivel and click pop into [Music] place that's cool W Lighting in seconds that's it plus it's dimmable sorry what was that Lura you want to know how Pop's powered great question pop is USBC rechargeable simply pop out the battery when you need to charge it or leave it plugged in if you like the look options and we agree Mr wonderful time is Shoney it is not a very executive move to have to get up and adjust your wall lighting and that's why we created the pop light app where you can choose between three different color warms set a sleep timer dim your polight and control multiple at once whether you're a first-time homeowner moving into an apartment setting up a dorm room or just want wall lighting that's easy to install poplite is modern wall lighting designed for everyone so sharks who's ready to revolutionize wall lighting with pop sharks in front of you is your very own gorgeous pop for you to check out super cool thank you what what happens to the wall when you take off the adhesive nothing redesign pop so that when you remove the tape you don't leave any damage on your wall where's the button to turn it on if you look at the bottom you'll see a little to and you just have to tap it got it rubber so that's it's very great idea than thank you this is a prototype so we just did our first round of tooling so you have our first tooling prototypes W don't drop it it's our baby they did a nice job though the tooling looks good clean how much are you going to sell it for so they retail for 95 and what is it going to cost you to make mhm yeah so it costs 25 to make about $30 landed 95 retail which puts our profit margin around 68% s only sorry that's kind of expensive don't you think we also ran a lot of tests we found that people were more responsive if we priced it higher and offered a bigger disc I don't think 95 is expensive offered a what offered a bigger discount yeah how long does the charge last yeah it takes about 4 hours to get fully charged and then the battery lasts between 5 and 9 hours depending on how bright it is but you can leave it plugged in all the time using that cord so I'm curious are there any others out there like this where it's an adhesive back besides the ones where you pop on pop off you know what I'm talking about the under cabinet like tap lights thank you yeah it actually didn't exist so we needed it we looked for it we couldn't find it um and we actually have a patent so we have three patents on this um what do they C we have a design patent and then we have two pending patents on the technology behind poplite one is the way that pop light swivels and clicks and the way it's removable the base from the wallet to it and then also the way the tape attaches to the base and that's the part we wanted to protect because that means that if you were to put another stick on wallet on the wall you would rip off the paint have you sold any so we launched an incredibly successful Kickstarter at the beginning of this year we did over tell us more we did over $178,000 in a little under 4 weeks um despite launching at 6:00 a.m. we met our goal in around 22 minutes um and then what we're running into is inventory we are sated to run out of our first run in about 4 months to meet the kickstarter order and yet you had shipped any of that yet not yet do you have any orders outside of crowdfunding we launched a website um Rose is the social media Queen this is Rose Tik you are four a little bit we went viral on Tik Tok we've actually gone viral several times but all of our sales since our Kickstarter have been just through organic content tell us the sales after Kickstarter online it's not very exciting cuz we just got our website live but about $5,000 I'm guessing you both have other jobs still at this point we both still have full-time jobs which is great because it helps us fund the the what we're doing with pop nothing wrong with it what do you guys do well tell us about you what's your background I've been working in tech for several years working in fast-paced startups I am a data Wiz and I think the most important thing I can tell you about myself is I'm the daughter of multiple generations of entreprene R preneurs my grandfather most importantly moved to America with not much except his skills built an incredible life for himself and I I like really can't say if he could see what I'm doing right now and who I'm talking to the man of shevitz would be flowing I just it's just like it's such an honor to be here yeah it really is muzzle tough to your Granda thank you so I'm a licensed clinical social worker I provide therapy to individuals and couples and at the end of the day poate or people I just love figuring out how things work all right guys look the whole deal is very nasy it's a total crapshoot I think but I'll make you an offer I'll give you the 150,000 the 8% but I want a royalty of $2 on it until I get back 500,000 then the royalty drops to a dollar in perpetuity we thought you'd throw in a royalty shocking right just shocking that's actually a really good deal that's not that's not his worst deal ever trust me no I think you guys are incredible or Kevin is getting softer in his old Years cuz that is a really good offer no it's definitely us I like to give you a rather simple offer uhuh I'll give you the $150,000 I don't even want the stock honest to God but I would like to get a $20 royalty $20 but no no equity at all $20 per unit wow $20 per unit that's just brutal they make enough money I think you do make enough money when will that end and you keep your total stock when that end bar never ending that's the best never ever ending never ending hang I don't know what's happened here Barbara and Kevin CH so you're going to be yeah yeah into that's a brutal offer Carolina Rose you guys I love the product you two are really impressive thank you I think you'll figure it out um I think Kevin made you a pretty good offer I would take his offer I got to tell you Barbara's offer is absolutely nuts I don't know what she's doing yeah I'm out yeah thank you for that what are you doing Lori I am not sure about your Marketplace I'm familiar with quite a few things that stick on the wall that light up so I have a little bit of concern about your competition for those reasons it makes me hesitate and I'm out there's absolutely stick on lighting one thing that keeps our a little bit different from that is that the stick on is hidden so most stick on lighting it either is showing underneath the light so when you remove it you have that access to the tab but then you see the plastic bits that are behind your light or even worse you can't access the tape and you have to rip it off your wall and take off the paint That's the win or lose to your business right because if it's transient if I can just stick it and then pull it off and move it when I need to move it and you're the only one and that's pretty protected you win if you're not you battle but I I'm just not convinced right so for those reasons amounts so can I clarify it the question that you these guys are up time to focus on the deals now Barbara would you consider any less than 20 on the royalty what do you feel you can afford I think 12 would be more comfortable for us damn wow if you'll take 100 in cash and 50,000 in a credit line I'll do that deal wow all of a sudden a really good offer okay guys you got to make a decision okay all right Kevin would you consider having that royalty go until you hit 350 no what would you consider what I get with the offer I gave you I think it's very fair I like it a lot there's absolutely no wiggle room there no okay um what do you think Kevin we'd love to do that offer with you what absolutely congratulations consider for real congratulations guys well done than you have a good rest of your night bye don't you just love them yeah I do I think I want to adop them they're great how you feeling I'm really good that happened that was wild yeah now that we have Mr Wonder wonderful we are just going to go back to the drawing board keep working keep working keep working there's so much to do with pop we can't wait to get it out there next in the tank is a product inspired by a creature from the sea oh hello sharks my name is Hans do I'm from Dana Point California and I'm here seeking 200,00 000 in exchange for 10% of my company tentacle as you can see I love the ocean I especially love the octopus with all these tentacles they could do so many things at once we humans have a big problem holding phones while trying to do something else with only two hands you'll never see an octopus with not enough hands to snap a selfie currently these options for humans oh my only serve a single function what if we had one portable product that did everything these do now we do introducing tentacle the octopus inspired suction mount for your Tech designed to empower go-getters to do their thing better totally handsfree tentacle does a million things it works with phones cameras tablets it's your car mount your bike mount your speaker Mount and hold your seahorses even a pickle holder what what and just like the octopus tentacle is waterproof and super durable it can even support the weight of a surfboard wow humans only have two hands let's fix that so sharks what do you say you jump in with a fellow sea creature like me and make a huge Splash in the boring Mount industry I like it I really really like it thank you how much you sell it for and how much does it cost you to make sell it for 45 cost me $6 yeah we're selling it 45 uh we've tried different price points but cost me $68 currently with that version wow okay but wait how many of you sold over 40,000 units to date D 40,000 unit 1.3 million in sales today time this when did you start how many years ago so I actually wrote the patent myself in 2015 wow I was working at Hurley um as a designer it was really my dream job working in the surf industry and I I just had this idea what if I combined a car mount and a tripod into one and when I gave the product to friends and family this crappy prototype that I made every person had this discovery moment where they were like oh my God I can use it for this or hey I can use it for this and there's so many use cases for it that I was like oh I have to do this obviously so at the end of 2017 I launched a Kickstarter we raised about 172,000 and blew my mind wow and then I thought oh my God I have to quit my job I have to do this so when I do something I go 110% I quit my dream job the product that you see here Generation 4 what was wrong with version 3 on Amazon I saw that there were some reviews that were not we had a 3.7 star review and I was like okay that's still not I needed that five why didn't people like it honestly the suction cups that was the biggest thing suction cup geometry is a whole science what did it cost to go through all these iterations um well to be honest my debt is 270,000 currently 270,000 [Music] what is your last year of sales so last year we did about 478,000 in sales what did you do last well your profit on that last month we did about 9,000 in not good what I want to tell you what happened so we were doing so well in 2020 despite Co so many people were using this product for FaceTiming or Zoom calls and the year prior I had run out of product so this year I freaked out and I ordered a shipping container full so at cost it was about 130k and why didn't it sell Thanksgiving day comes and I ran out of Marketing dollars to continue going my only sales were coming from one channel that is our website and paying Facebook ads I was not how much you have right now about $891,000 at cost at cost about $111,000 at Cost but you don't have to really pay for ads necessarily you could do your own videos put them up on on social media platforms is this your full-time gig this is my full-time gig my wife and I we work together on this business and to get out of our that situation we moved into an RV I'm not kidding an RV on my mom's property in mene California all right so it's clear you're all in yes you're all in if you don't get more Capital by ads yep you're going to zero no that's what I think no cuz you've got $110,000 in inventory your worst case you're going to flea markets on weekends and demonstrating them selling them there how much cash do you have P I have $39 in the bank oh what what $39 how did you get here no I am just enough to get home how you going to get back no with that you're going to have to sell your flippers these would be worth a lot actually yeah you're right well Hans let me look at it this way one saving aspect to this is the product's pretty good it's a really good fundamentally I can't criticize the product and I can't criticize you you're a good guy thank you I I get it you need to get capital I love you dude it's not a listen that's the first also in the and I don't need another job it's not a situation I want to put myself into I wish you the best I'm out thank you thank you s so I think it's a good product I think you're in a very crowded space it's just not the right investment for me at this time I wish you good luck but I'm not thank you thank you I can make it happen I know I can yeah I incurred some debt along the way but it's serviceable my monthly payments are three grand a month three grand isn't a lot but it is when you got $39 in cash you know so often on Shark Tank we have to peel the onions so deep to get the truth and you just came out here and bear your soul I appreciate that I think you need a reboot so I'm I'm going to make you an offer you owe total debt 270,000 mhm right mhm I will give you 270,000 we pay off the existing debt to everyone okay and basically that brings the company back to Ground Zero y I will then give you an additional 100,000 to seed the new company here's the catch [Music] though two sharks are out Hans has big debts and little cash in the bank but Robert seems willing to take a chance on his device accessory company tentacle but it might come at a cost here's the catch though I own 60 you own 40 here's the caveat here's the caveat you're going to have to bring in real Partners who are going to run the business bad idea the next partner we bring in is another Hans who has the level experience has the experience in this area and whatever Equity we need to give them it'll come out of my 60% well that's interesting all right Hans let me you let me tell you why I think my fellow sharks are tucking and rolling out of this deal because of your vulnerability to say you only have $39 right and a lot of people come on here and they they act like everything's all great so I say well why are you here but on the flip side I get it you know when I had turned my mother's house into a factory I took $100,000 loan it was the biggest and the largest amount of pressure I ever had in my life 3 months later I turned around and I only have $500 in the bank I was 3 months later on the morgage right I was paying for raw Goods 90 days ahead of time I was paying for a staff and salaries and my accounts receivables they wouldn't pay me for 3060 90 days yeah and it was this moment in my life where my mother came home and said I'm going to take a ad out in the newspaper I said that's the stupidest thing I ever heard she took out an ad million dollars in orders need financing I got 33 offers the next day wow 30 of them were lone sharks and people like Kevin you're lucky I was there for you Damon one was Samsung sexile Division and my my mentors now and they believed in me yeah I had nothing zero yeah I believe in you but it's going to be expensive because this is such high risk yeah but I'm going to offer you the $200,000 for 1/3 1/3 33 and a third okay 33% and no 33 and a third let's make it let's make it an even third I know you know my back's up against the wall but that's not the pur at least two H trying put your back up against the wall but I'm putting money at risk yep I understand okay um and actually that's not a bad offer All Things Considered it's better than I would have done I'm out okay thank you Mark you have an offer from Robert and you have an offer offer from Damon Damon's offer is legit well my offer is legit Mar no it isn't Robert Robert it is a legitimate offer and I really appreciate your offer it would just break my heart for how much I put into it and for those Reasons I'm [Music] out have you been always wanting to say that no I been want to say that forever you had to get it on to do it you had to get one h i d this is a moment right here dude we're good I like this damid what would you feel about 25% for the 200k I feel 30 sounds really good I know it sounds tasty but you came down from 33 and the third remember I went to 33 I went back to thir I you did yeah dude I think we could do a killing together I think you can open up a ton of doors and I can execute I know I can execute what's your counter 25% is my best counter offer I I love it I think I will take it at 30 that's hard man [Music] uh let's do it I like the counter all right I got a counter I never hugged the guy with flippers before man I great prodct congrat next up is a product that takes multitasking to the next level hello sharks my name is Mark sigonas I'm a US Navy veteran from trucky California and today I'm seeking an investment of $150,000 for a 5% stake in high bear now insulated bottles are fantastic for well carrying water but they're really not so great if you're trying to make any of your own beverages on the road this is the all day adventure flask you can craft All Your Favorite Beverages from cbw to cocktails sharks let me show you how it works this one's in pourover mode just add a coffee filter coffee grounds a little hot water in the top boom pour over coffee if you're decanting a bottle of red wine there's a screen in the middle that'll AA your wine and catching the sediment that you don't want in the bottom of your glass shaking cocktails ice in the bottom cap with your cocktail shaker fill the top with Margarita head to the barbecue this is the filter basket this is for tea infusions and cold brew just fill it halfway with coffee grounds screws to the center of your cocktail shaker and then fill the top with water and 12 hours later you are Crush ing super strong cold through this is the thermal core this is for keeping beverages like beer and white wine cold without diluting them with ice also doubles as a muddle so you can get smashy with limes and mint the sleeve is removable so it doubles as a mug for friends and dogs wow and everything nests neatly inside so there's no clutter and it's simple enough to be your everyday water bottle so sharks who who's ready to join us on an adventure that turns each day into a celebration I don't think you're doing enough with the product there no more featur just when you thought no one could do anything more with a water bottle you just created something so Innovative and unique thank you so much yeah how did you come up with it Mark so I spent 15 years in retail finance and decided my life needed to change I was a through hiker on the appalachin trail hiked 2,18 86 miles from Georgia to Maine um at once 107 days wow yeah yeah you're on this Trail yeah and you say I need the James Bond water bottle cuz you're hiking so far the things that you carry need to do more but Mark this is not just for serious hikers this is for any camper or any you got it yeah it also makes the perfect corporate gift because you can customize this thing you have seven different color blocks here you have the under art we can do the Box how much does it cost you to make it and what do you sell it for so our cost of goods will be $115.50 and then the artist series which you all have here is 95 wow Mark how does that actually compared to other water bottles that are on the market a fantastic question so the on the top end of the market right now you have uh $59 for like a 36 oun Yeti so we're on the top end but you're getting 10x the functionality of anything else that's out there this is the most premium you could possibly charge it is the most premium we operate in three different channels D Toc retail um and corporate sales corporate sales are 40% of our business right what are your sales collectively we've done $745,000 of sales hello de which perod so we launched on Kickstarter in the year 2020 we delivered in 2021 what did you do last year last year we did 320 so next year I'm projecting that we'll do a million and then we're going to launch Amazon next year oh you're not on Amazon we're not even on Amazon did you raise any money is there debt on the business so right now we have $200,000 in debt so you so you need the cash now yeah I want to go back to the numbers for a second because you said retail is a significant portion of your business no no I'm sorry so retail only represents 25% of the business that's a chunk so the margins are pretty good if you're just selling direct to Consumer why do you need retail at all a few reasons retail is extremely valuable to a brand that's new because consumers aren't familiar with it part of what you need to do is you need to be next to like all those other outdoor Brands you see this on a retail shelf you have no idea what it do does this says absolutely nothing so you have to be able to demonstrate it I'm arguing to you and I want to hear what you say I'm pushing back a little bit the plan is to actually sell this direct to Consumers at full margin because online you're able to explain what you just did here on shark day otherwise I would look at this and say this is the most expensive water bottle I've ever seen and it makes no sense for me to pay $95 for it and at the same time they're not paying you and you're giving margin away to a rep in the middle you're making zero in retail and a lot of grief and misery I mean our mkup is 2.13 like in a retail environment or 50% so you have to stay in retail not that I have to stay in retail but why wouldn't I be there when it's just another touch the consumer make money but you forget his numbers right he pays 15 bucks for one of these right that's your cost he's got good margins right so if he just walked in and said I'm selling to retail for 30 and it cost me 15 we wouldn't argue a whole lot but what percentage of your business is retail 25% 25% why are we even talking about this a quarter of the business so what's your vision what's your dream like let's understand what you feels right for your business so what I want to do is is we want to expand the line but you're not profitable yet are you no we're not why do you want to expand the line before you make money on well let him explain what he wants to do we want to fill in the price point because just like in in uh in luxury goods they have a model that's called good better best right like not everybody's going to go out and buy you know the Thousand bag but you have an established look Mark you you you've invented a really interesting product yeah and you're trying to figure out how to sell it and the challenge you have right now is that it's too complicated online actually you know make it a little bit easier to sell because they always show the product comparisons but I think it's going to be really really hard to scale a lot and so for those Reasons I'm out by the way do you know your customer acquisition cost online um the last paid ads we did our customer acquisition cost through Google was $52 if that's true we're not making any money per order per order yeah Mark I really admire what you've done but it's a little bit early stage for me I think you're still trying to figure out the product market so for those Reasons I'm out but I wish you the best of the LA with it thank you Emma Mark I'm just the straight numbers guy in this deal tell me if I'm wrong anywhere in this stack of numbers sell it for 100 bucks customer cost was 50 leaves me with $50 I got to make it call it 15 yeah leaves $35 that's the whole model so I would prefer to just have a guy stand in front of me saying I make $35 every time I sell one that's all I'm going to do for you you just have to give me 150,000 and I'll make four five 6X on your money but I didn't hear that story I'm not into this deal I'm out Mark uh I really really like you I've been trying to get my head around it I think it's a novel product but it's a fanatical product wish you all the best but I'm out yeah um there's a million water bottles and you were very clever props to you for having made something quite unique and I think very smart but I'm not ready yet to invest but I wish you good luck so I'm out okay very clever Mark good luck thank you so much taking my water bottle and going home it's been a magical journey and it doesn't stop for me here and I can't wait to engineer and do new and exciting products for for for not just adventurers and um outdoor enthusiasts but for everybody next into the tank is a high-tech way to transport you to an alternate reality [Music] hello sharks my name is yam goodgal I'm from Houston Texas our company is virtuix and we are seeking $2 million in exchange for 10% of our company this is the Omni the first ever virtual reality platform that allows you to be truly a part of the video game the Omni is a omnidirectional treadmill but we removed all the moving Parts it's basically a low friction surface on which the user walks with these Special shoot that have a low friction sole Steve will also put on a support belt which provides safety you can't fall on the Omni also provides some support so you can use the Omni handsfree so you can hold a controller or a gun in your hand the Omni can be played with any existing game that uses keyboard input once you're in the Omni you can put on the virtual reality glasses oh cool this is right up your alley the Omni enables you to walk run jump and Crouch in 360° and put your mind and your body into the video game to transport you into a different [Music] [Music] world cool wow virtual reality has never broken through because the technology wasn't ready that's all changing now the technology is here the Omni is here so which of you sharks want to be on the Forefront of this virtual reality Revolution Robert you look excited would you like to try it out I'd love to try it out absolutely whose glasses are you using this is the Oculus Rift okay so you're using Oculus riff right Oculus riff you can interface with the different types of video platforms that's right who careful when you careful when you get in you better give Robert a vomit bag all right now I'm going to set up the connect what's it like in there Bert it's very cool so Robert the gun is just a trigger so you aim with your look and there's oh very cool oh wow run Geral run look he's back in Croatia Kevin come out and play Kevin all right oh what a cool feels very very immersive how much is it we're selling those on our website right now for $499 that's it mhm that's cheaper than I would have thought how many have you sold so we launched this product on Kickstarter inun and we raised $1.1 million wow how many units are you going to have to deliver uh closer to 3,000 thank you very much y that was awesome great it was very cool very very cool where do you see how uncool you looked up there were you winded when you were on there I was but I don't know if I was winded because I didn't know how to use it I think once you got used to it you'd be fine do you think that uh guys who play games like this want to exercise cuz usually they have a side job as a plus-size model most guys who are who play games nobody likes being overweight people would like to be fit but Gamers they don't like to exercise we can play games and lose weight and burn calories at the same time people are exced as a weight loss machine as well is that what you're thinking absolutely but there's a bigger issue right this is pretty much based around Oculus Rift right as Oculus Rift goes you guys go can you tell me what that is Oculus Rift that's the the hatsa the rift is basically what started this virtual reality Revolution they've done a phenomenal job of allowing you to put on a headset and be in an immersive world is that included in the price it's not included in the price what do you pay for that headset $300 is the gun included the gun is off the shelf you can buy it online it sounds like it's going to be an $8 to $900 cost which is quite a bit why don't you tell us why you're worth $20 million today because I mean no one's addressed that I think it's the elephant in the room that's a ridiculous valuation for this let me walk you to the numbers the rift is an analog for our product same target market same people they're selling two 200 of these per day right now they project to do 500,000 units in sales next year if we convert one out of 20 buyers of the rift well we will be selling 25,000 units next year which is$ 122.5 million in sales there's a fundamental difference though when I buy the headgear I can still sit around and Lounge you're forcing me to stand and you're forcing me to be interactive I don't think people want to be that interactive I sld 3,000 without a we can debate the merits of the product I'm just trying to look at the sheer number you want me to pay your value 2 years from now today here's my thinking on it if my husband brought this into my house I would divorce him immediately I think it's a problem because of its size in the home I also think it's a tremendous problem to sell this in retail I sell a lot of product now through retail I couldn't get anybody to give the floor space to this you'd pay so much just to demonstrate it but I think that's a concern you have to realize that 50% of the population is married and they're going to have to deal with their wife on this one so I'm out you know I see the market you know Black Ops did amazing Grand Theft Auto right breaking records I I see the market but I also don't see somebody playing this more than an hour or half an hour a day before they can't even play anymore cuz they're out of breath or they're tired they just won't revisit it so for all those reasons and more I'm out look great product I will definitely buy one but I think I'm an anomaly you better talk to your wife she's not a pushover well we have a big house prer she'll never see it but I don't think that people want to exercise and immerse themselves in a physical world to that degree I think if people really want to immerse themselves that way I think they'll go outside I I don't buy the premise I'm out I see where you're going with it but it is a sub segment of a Subs segment market and it's very expensive I look at it and say to myself is this a good deal at $20 million where you are right now and the answer is no it's not there's too much risk between your delivery of a consumer product a retail distribution strategy and your sales you've got tons of risk all kinds of risk and I got to pay tomorrow's price today I hate deals like that I hate it when you make me pay for 2 years from now if everything works today why would I do that I'm not an idiot why would I do that because of the potential you're going to have problems poooo is going to happen my friend and I have to pay for that now no it's an outrage ridiculous I'm out I get what you're doing I can see you creating 20 million in sales 25 million in sales with this but you're competing just like headsets are going to be competing just like the um consoles are going to be competing you're one more one more Outlet competing for Consumer dollars you have to push that ball so hard to keep going you haven't told me that there's a way to get to 50 million in sales and in 6 years there's going to be completely new technology that blows all this away for those Reasons I'm [Music] out thank you thanks guys you know I look at the experience and what can people learn from what happened here today and for me the lesson is very interesting IP way overpriced if you had put this at a 5 million valuation would have been very interesting good luck thank you John anybody pays 20 million for that is insane gamers are lazy like most human beings they don't want to exercise they don't