[Music] thank you hello my name is Jeff Stroop I am the owner of highcon LLC I'm here today to ask for an investment of five hundred thousand dollars for forty percent equity in my business now let's suppose for a moment that someone that you know or loved lived in a house that caught on fire and they could have been saved if only firemen could have gotten water to the structure just moments sooner now I've been a fireman for 15 years I tried to thinking of ways to save time in supplying water to the fire scene because there was too many homes and American Dreams being destroyed by fire so I now have come up with a solution icon icon is the world's fastest way to connect and disconnect from a hydrant let me show you how that's done I have two professional firemen going to help me demonstrate this now Damon is on this side he's going to help me connect the high con with a standard hose to this side and Kevin is on this side to connect just a standard hose which is the way it's done today okay Gentlemen let's begin now as you can see the high con is already connected it's ready to turn the water on the other side we're still trying to screw it on okay now he's got it tight okay now let's disconnect to show the speed on that okay begin you can see the speed it takes to disconnect the icon versus your standard hose it's being used across the United States today at a fire scene every second matters your standard connections can sometimes take 30 seconds or more High con can be done in less than three seconds and disconnected in a second now there's over 33 000 fire departments across the United States now there's Millions to be made at this Market alone who's ready to make millions with me [Music] where are you from Jeff I'm from Arkansas what about your base department where you worked are they customers they love it they they want to use them the only reason we're not using them yet is because me working there they can't buy them straight from me how are you going to sell this so let's say it was what 20 seconds difference it was an eight second difference on my count can I go to a fire department and say you're going to save eight seconds by this do you think that there's a budget for this I do basically the last month is when I started making my sales calls and out of 11 departments that I visited I've had four that's given me hard POS the other six are working on getting the paperwork together to give me the PO what did you sell them for this size here the smaller one is sold for uh 215 dollars the larger that goes on the steamer valve is 385 dollars Jeff the only negative to your stories are selling to the government your sector is under stress for budget cuts they don't have any money assuming they liked it how much money would that particular Firehouse have to put out to buy enough of them to equip their typical equipment most fire departments what I've got it figured out are going to average about 35 units it's seven thousand dollars roughly is your typical sale if you said you sold typically 35 so that's a lot of money going along that line nobody has budget isn't the real play here if you could get fire departments to mandate this product if you could get a municipalities to say you have to have this hose because it saves lives have you been able to get fire departments to approve it that way we're working toward that we have not got that approval yet foreign systems that provide direct products to fire stations like that jacket is our company that distributes that directly yes there is have you talked to them about this product yes I have and what have they said to you I went into them trying to make a deal for them to buy the patent after they looked at it they said that at present time they wasn't ready to buy it so they wanted to help me distribute them they want to put it in their product line and how much Capital do you need to get it at the distribution 500 000. foreign I can't get over the fact that the Distributors want you to take on the financial challenge of making the products so they don't believe in it to that extent so I'm out I keep weighing that eight second savings pitching a municipality against spending seven thousand dollars and I don't think they're going to do it I'm out Jeff I love the design why can't you use it for oil pipelines or why can't you even use it for the the hose I have at home because I can never screw in that stupid hose at home like that one why'd you wait so long to show us that yeah no kidding now that will be made out of plastic it's part of the same thing do you have a patent on that that patent falls under the same thing have you tried to sell this no I haven't the main reason why is because I've been focusing on the fire so wait wait let's stop there's nothing wrong with the fire thing but you're realizing how difficult it is to change the entire industry now on the other hand there are two or three hose makers in the US that supply all the big boxes they're huge why wouldn't you go to them and say I have a better way to attach your garden hose to every home in America and you can pay me 20 cents and you can manufacture this yourself that's only one call to them I haven't worked on like I said I haven't worked on the household side of it at all other than making a sample to see if it would function like that let me just tell you don't listen to him 20 cents is way too low Jeff do you have anything else in your pockets no sir this is a big deal you know what Jeff I like this so much what if I offered you 1.25 million dollars you for your company plus a three-year employment agreement at 100K per year to run the show and I'll pay you a percentage of the profits once we hit certain hurdles that we agree to wait a second before you even consider that Madness Jeff I find this kind of thing distasteful watching a great entrepreneur wait a second I think you're passionate about this fire element of your business that's where you came from I just want the garden hose piece all right I'm gonna pay you 500 000 for 100 of that and I'll pay you back a royalty three percent in perpetuity if we become Partners which is what this would be you're selling out from underneath us an important part of the company and so we don't want to give that away we what are you talking about my partner he's my partner I'm not taking everything his whole life from him like you I'm not either I paid him a salary in Arkansas a hundred thousand dollars is going to go a long way you're sucking the life out of him [Music] Jeff what do you think about Mark's offer I would want to know what the percentage is long-term percentage okay uh yeah I would want at least seven and a half percent royalties long term I was going to make an offer along the line of Mr Cuban but that's more generous than I was going to be at 1.25 million I was not at 1.25 I'm out I'm going to leave my offer exactly the way it is because I don't have to change it if you go to the dark side what is this with this dark side stuff you're this is the enlightened side it disturbs me immensely to watch you suck the life out of this man he's worked so hard to get to where he is and you're just taking it all the way it's such a Hui right and that's the most polite word I can come up with my office very simple I give you 500 000 for everything except the fire hose for five percent it gives you the cash you need for everything else it leaves you free from The Tyranny Mr Cuban and you know that's what it's going to be like let me put it on the table Jeff 1.25 million dollars for 100 of your company have you ever seen Goods like that that's unbelievable your employment agreement so you're making a hundred thousand dollars per year three years minimum and I think we're going to work together forever Plus seven and a half percent royalty on everything sold if you accept that Jeff I want a moment of silence for what died in here today that is ridiculous a hundred percent you don't do 100 deals that's crazy between the two offers [Music] Mark I like your offer a lot better I'll accept it yes yes this is one smart man one smart man good move all right partner let's go on safe supplies and make some money absolutely good job guys really appreciate it good job thanks for being fine appreciate it all right [Music] it's offensive Market's over between us he went right to the top of that offer range immediately you know what you don't think twice when this company is worth 50 60 million dollars we're not going to look back and say boy I gave him 1.25 million I should have given him a million you don't really want to negotiate any of it I need to save 50 dollars when I'm gonna I'm looking at making 50 million when can we have a meeting because I have a lot of companies I can sell you if they're like that I'll buy them next into the tank are entrepreneurs with a business profiting from competitive Thrill Seekers [Music] greetings sharks my name is Brad Scudder and I'm Rob Dickens we're from Boston Massachusetts our company is rugged races and we're seeking one million dollars for 10 of our company so what is rugged races we operate a popular 5K obstacle course race series in 20 cities across the country called Rugged Maniac at our events participants of all ages all genders all shapes and sizes will complete a challenging running course featuring 25 epic obstacles but these aren't the pop-up Kitty obstacles you'll see at our competitors events at Rugged Maniac participants will climb over towers and shipping containers rock it down 100 foot water slides crawl through tunnels of mud and even jump over fire all while running through a combination of forest Fields ski slopes and even Motocross tracks in short Rugged Maniac strikes the perfect balance between fun and physicality with our award-winning courses and our day-long Festival so which one of these sharks is ready to get rugged with us and just to show you what we're all about we've got this video clip right here [Music] I didn't even know you existed but I know about your competitor I mean like Tough Mudder how are you different than that we're different in this sense basically Tough Mudder is a 12 mile course right with about 20 obstacles we have 25 obstacles over three miles so it's more about the obstacles and less about the running and being a three mile course it's much more accessible to the general public than something like a 12 mile are you saying this is a Tamer version of that something that Barbara would do oh I could handle the 12 miles it's this little short guy over here that wouldn't have a shot at we get people of all shapes and sizes at our events truly from 77 year old guys to uh you know mother-daughter teams 14 year old and up is it more work out or more party we think we strike an excellent balance between the workout and the party because it's a shorter race it takes you know an average an hour a little bit more to finish people are are exhausted but they're still exhilarated do people bring alcohol yes we sell alcohol outdoor festivals puke right yeah exactly I mean it's fun it's a fun event so what are sales going to be this year this year 4.2 million wow how many course 20 cities Nationwide how much out of the 4.2 did you profit million dollars but next year without investment we're projecting 6.5 million in Revenue 2.2 million in profits talk about the industry there's some monsters out there sure you know what's the difference so basically you've got you got two kind of at the top the Warrior Dash 5K top motor 12 Mile and why have they gotten so much bigger than you guys first movers in the market and how big are they rob how big are they they have like 40 or 45 events are Revenue take a guess how big would they think they're about 30 million so would you guys say this industry is about 100 million a year much larger more than that Rob what do you what are you gonna do with the 1 million we've uh we've taken that money and invested in other brands that we own um no what are we going to do with the one million dollars that we would get from you yeah sorry what million were you talking about Brad I thought you want to know what we did with our profits yeah okay all right what did you do with the one million in profit let me show you exactly what we've done with that other money okay let's see let's see here it is [Music] oh you guys are doing these things it's so stupid that's a great idea Rob explain to me what I saw you saw running with the bulls okay here in the U.S anybody get hurt we had some minor injuries a couple concussions a broken arm the injury ring people paid for this oh yeah about the same prices as Rugged Maniac about fifty dollars but is that part of this deal it's a separate company lawyers I give you a million dollars I don't I don't get to wet my beak on the bull deal no of course are you guys kidding you can't be serious no I give you a chance to change your mind okay you would want more money if you get involved so the Bull Run is a separate entity all right why don't we entertain it how much more would it be three million dollars for 10 of the bull run two million for the bull and one million yeah so three million bucks gets ten percent of both Brad what are the sales in the second company 280 000 at the first event do you realize that your expertise is not Rugged Maniac your expertise is in putting on adventure events the bull run is just another variant of this same thing that's exactly right and so the growth potential with this company is not just within Rugged Maniac guys what's the cash flow going to be next year in under your optimistic scenario for both companies I mean we think they could be a 20 million event this year guys I like the business but if I come in and give you money and all of a sudden it's like where's Brian and Rob oh they're chasing the Bulls right what am I going to say to you as an investor when I'm not getting your full attention I want a piece of the Bulls no kidding no that's not what I'm gonna say I'm gonna say they can die right I want to return to my investments or I'm suing your ass because you have a conflict of interest no investor says oh the existing business is dying sell me a piece of the new one well you don't do that to investors you align your interest with them a hundred percent when you start talking about a million dollars you don't screw around right that's a real investment right the other the element for me I love the idea I also really love the fact that you're building a customer base for the other events that you can hold later on for me they're together here's an offer for you sure both businesses combine I'll give you 1.5 million for 25 percent of the entire thing okay is that the only offer that we have Mark you said you were interested no I'm very I love the one business if I didn't know about this other business I'd probably make an offer right now sure right but I want to hear what you say to Rob I think I'm giving you I think an offer I think the business is worth what six times ebitda 1.5 times Revenue roughly right and I'm pricing in I think that's generous I'm pricing it in because I see the upside in the other business okay asking for one million dollars for this business was already challenging having another agenda and another business on the other side my gut feeling is my instinct is that no matter what I would be screwed working with you I wouldn't trust you I'm out okay thank you for your consideration not here I thought what good looking guys man they look the part what a great video but then somewhere along the way the surprise of the bulls and oh yeah we'll wrap that into the deal and I don't think maybe you intended it that way but for some reason you lost my trust but either way sorry to hear that but we thank you for your consideration well guys you have you have uh we have an awesome one you have an offer on the table yes we do what are you gonna do an offer that's lower than what we had wanted but no let me make you an offer higher than what you want well of course I am anyone else want to throw an offer in the ring I'm still listening well Mark your concern is that you you want us to focus all our energies on no no it's not that you came in and you tried to sell us one business and you separated the two you're overvaluing the other business in my opinion and if you have such a high opinion of that business that's probably where a lot of your attention is going to be and as an investor I don't think it's worth the the value that you're assigned into it because you've had one event for two hundred thousand dollars you said my values too high yes [Music] wow now Mark's making me nervous about am I over hey 1.5 million 25 that gives you about a six million dollar value for the combined businesses the longer we wait the the less comfortable I'm starting to feel really cloudy the Waters of a bit here and maybe give you a hang on Robert you may want to hear this I think your offer should be for 33 a third you become third part Northeast guns and then I'd go in 50 50 with you hmm I'm good with that I like going up to one third 1.5 million for one-third was a combined businesses I'm with you Uncle Kevin yeah I thought you might be because I think you did overpay Rob isn't it interesting what's happened you had an offer at here now we're here the longer we stay here [Music] so what I would be willing to do is 1.5 million but it's for 25 percent of the two companies combined okay we're going to go discuss this consider both offers and come back there's a lot of benefit here with these guys I'm not sure what there is to discuss Mark you made a better offer than we did Mia Mark made the same as your initial the challenge is when they come back you drop this dead weight right here and go back to your initial offer then you're overpaying I don't think they're going to take either offer oh I think they will [Music] okay Gentlemen let's summarize what's happened here you have two distinct offers the first Mr Cuban is for 1.5 million for 25 of your company which by the way was the exact same offer I made and then he spent half an hour telling you how bad your business is I know I know the other offer is for the same amount of money with 33 and a third of your business what are you going to do we went out there and discussed that we'd like to eventually strike a deal with you we wanted to come back in and say listen we need 2 million for for the 25 percent instead of doing that I would like to split it in the middle and go 1.75 deal deal you're gonna work baby looking forward to it looking forward to it absolutely we'll make some money what do you lose out but Robert why do we do that thank you for your consideration thanks guys thank you fired up we are very excited we took that offer from Mark because we realized that Mark offers more than just the money Mark offers his experience he offers his connections you know only great things can come from well done 1.75 for 25 I'm actually surprised that they came down from the values [Music] next into the tank is an entrepreneur who believes there's big money to be made from Big scares [Music] everywhere I go there's zombies hi sharks I'm Melissa Carbone from Los Angeles my company is 1031 Productions and I'm seeking two million dollars in exchange for 10 of my company 1031 Productions is an entertainment company that creates owns and produces live attractions in the horror our most popular attraction is the Los Angeles haunted hayride and it is not for the faint of heart sharks when you take our hayride you are entering the pitch black wood where demonic forces lost souls Psychopathic fun are waiting around every turn [Music] look at these lights just when you think the terror is over think again oh God bless you don't eyeball me I will kick your tush back together okay Melissa you know what's really scaring the crap out of me is your evaluation so two million dollars for ten percent imputes a 20 million dollar value on this scary hair ride business tell us why you're worth 20 million dollars we do attractions all year long we have the Los Angeles haunted hayride which is our seasonal attraction here in La 17 nights we sell out every single night we do about 1.8 million dollars right now per October ah 5.8 was really good in 17 days we have another attraction called the Great Horror Campout that we just launched which is a summer attraction the Great Horror Campout is our way of not being a seasonal company that is an overnight completely immersive camping experience horror theme oh no so it's 12 hours we we take 2 000 campers we put them in tents and we have an incredibly interactive experience that includes everything from a hill it's basically summer camp from hell yeah 1.8 million in at the end of the 17 days what's left it costs us 1.2 million dollars to produce the Los Angeles less haunted hayride so I'm left with 600 000 free cash afterwards yeah I mean I mean are you year to year because right now we're in a launching new attractions mode we're launching a New York haunted hayride which is what we're seeking some of this money for the Great Horror Campout we're launching it next year in 10 cities up the West Coast so there lies the rub right because they're very very very expensive to to produce and create right well the campouts are cheap to produce how much advertising a promotion do you do we spent about three hundred thousand dollars we do a ton of radio my background is I I ran Clear Channel Los Angeles for 10 years so my advertising marketing and one of my other business partners actually still with Clear Channel so we know how to make a dollar go really far from a market how many Unique Individuals come through the hayride we have we have 50 000 people we sell out every single night so this year is our first year we increase our Max Capacity to a hundred thousand eight hundred we actually are doubling our Max Capacity this year every night for 17 days every night that's amazing so can I extrapolate and say that the it's going to be 3.6 million in Revenue this year yes if we sell out so that means this thing will generate just over a million bucks if everything works right okay now you're an intelligent woman I'm trying to make the leap now we have to get back to reality on your 20 million dollar ask yeah let's give you a fair chance of making a million bucks before tax okay yep that's about 700 000 after tax if I gave you a 10 multiple you're worth seven million bucks how is it that I am going to pay 20 for a seven million dollar business if everything goes right that's the horror story you brought here you've overvalued your business thank you we've had major entertainment companies in La who have already given us offers to buy our company and this is about what they're valuing it why are you such a greedy Pig not greedy I have lots of lots of high hopes for the company and I want to grow fast just because a Hollywood Bozo offered you a 20 million dollar valuation you know what the horror show is listen to argue about valuation all the time but they want to just give her two million dollars to ten percent I am projecting for the New York haunted Herod which hasn't happened yet because it's the same model in La we're just plopping It Down Let It Go geographically it's a different model because it never rains in LA Melissa I I don't agree that your risk analysis is correct it never happens that everything you rolled out successful day one that's ridiculous for me it is not hard to get lots of people to come to the attractions the hard part is to make it a great experience so they want to come back this is all fun and games but we're talking about money here I can't I can't get there I'm out Melissa for you to come close to your projections for next year everything has to work perfectly all the time I don't see you getting to those numbers next year I'm out for me right now to give you two million dollars I feel you would take a really long time for me to see that back so for that reason I'm up the risk is not as great as you probably would think I mean we will launch these attractions no matter what I know that we can launch them Faster by having this money we can launch them now I'm an expert in high octane scare you are yes I can tell you we do this much cheaper wear a piece of jewelry and walk around where I grew up yeah that won't give you a high octane fair enough uh I would just have to insult you with my offer go ahead and shelter that's about what it's worth it's already offer yeah okay well then I'll give you two million dollars for forty percent [Music] okay [Music] come on Mark is that a yes or no to him um can I counter of course you can counter um two million for twenty percent I'll take that offer done really yep awesome wow thank you