[Music] I'm Jim Celikas. And I'm Sabin Lomac. And we are cousins from Portland, Maine. And together we are cousins Maine Lobster. Best part about growing up in Maine is the family, being by the water, but most importantly, the lobster. Maine lobster is the most tender, succulent meat you'll ever have. We are from Maine but currently living in Los Angeles. Who wants some fresh Maine lobster? In Los Angeles right now, there is a food truck phenomenon. We want to combine the two best industries going. Hot meat coming right up. Right now, our business is booming. We have lines around the block and we can't service the people. We need another truck and we can't do it on our own. So, it's so important for us to get this investment from the Sharks. [Applause] [Music] Hi Sharks. My name is Sabin Lmac and I am his younger cousin Jim Celicus and together we are Cousins Main Lobster. Sharks, we're here seeking $55,000 in exchange for 5% of our company. Sharks, picture this. It's summertime in Maine. Both locals and tourists alike are in line at Maine's iconic lobster shacks. They're standing alongside the Atlantic Ocean, smelling that salty air. Most importantly, they are eagerly awaiting the chance, the opportunity to sink their teeth into Maine's signature dish, the lobster roll. Sharks at Cousins Main Lobster, we bring the Maine lobster experience to Southern California, and we do it via our amazing gourmet lobster shack on wheels. We get our lobsters from shore to door in less than 24 hours. So, you know what that means, Barbara? Next time you're eating with the cousins, you are having the freshest fair possible. Here's the thing. Right now, we need to add another truck or two because frankly, we can't keep up with our own demand. And that's where you come in. We would love for one of you to join our family business and become the third cousin. Can we try it? You certainly can. Certainly. With that buildup. Yeah. How do you get the lobster from me? Stop. Let's try it first. I I could eat and listen at the same time. We ship everything fresh every day, including the bread from Maine to Los Angeles. So, you have two different types of our rolls. One of them is the signature Maine lobster roll. Uh split top bun, fresh Maine lobster meat, a little bit of mayonnaise, and then you have our Connecticut roll that has the little lemon on top. This is fantastic. I'm glad you enjoy. And that's the freshness of Maine. That's what we grew up with or privy to all the time. Is your supplier a cousin? Great question. Maine lobster industry is not something you can call into and uh you know get the access and the pricing that we have. You grow up with it. You're saying you're the only not family but the mainers the roots we grew up with. Be careful with that. There are multiple suppliers of lobster meat made in Maine. There are multiple suppliers of lobsters but it just depends on the pricing that you're getting it at in order to ship it wholesale across the country. And that's where we come in because this is where I'm getting a little concerned guys. $55,000 for 5%. Basically, you want to buy another truck with my $55,000. You're valuing this business at over a million bucks. You haven't heard a word about the business. You don't have the valuation. They may have 10 trucks. Do you How many trucks do you have? Right now, we have one truck. Ooh. $150,000 of sales. We've been open two months. Two months with one truck. Where do you park the truck? Literally all over Los Angeles. How do people find you, dude? Twitter, website, social media. Okay, then let me ask you this. Let's say I want to be in the lobster business. Mr. Wonderful's Lobster. Okay. Why don't I just go get a couple of guys with flip flops on, call up somebody and me saying, "I've got money. You've got lobsters." And do this whole thing myself. Why are you worth a million one? Come back with an answer that maybe you won't get sliced up into a bun with. You can start your own truck and you can hire your own staff, but what you can't do is what you just said and call up on the phone to Maine. They don't do business with other guys outside of it's not it's not like that. So, you're the only guys because you've only been in business 2 months. These guys only deal with you now because they they haven't been in business the last 50 years. No, no, no. Of course, they have. You are very greedy crustaceans. Both of you, Jim. I don't think anybody's buying your story. I am. It's not greed. You haven't gone into the economics per truck. You haven't talked about seasonality. You haven't talked about any other cost issues that might come along, right? So, we're locked into our pricing and typically prices will rise with our connections and what we have with our supplier. We're locked in what we're paying right now. We're going to be paying in the winter. So, what are you paying right now on a What's the average? The traditional lobster roll we price at $13. What's your cost on that? $5.85. Guys, I asked you the question about the economics of the truck. So, please, somebody who might invest, tell me what the economics are per truck. Okay. Okay. So, we'll start with how much is a purchase. You buy it for roughly ours was $65,000. Okay. Monthly overhead with our employees. $20,000 per truck. Per truck. Okay. A month. Per month. A month. Okay. So, 20K per month per truck. If you have more than one truck, does it get amvertiz advertised across the truck? The overhead would actually go down a little because we've hired a general manager. You're not the general manager in this little business. Well, well, there's a reason why that is because when we got into this business, we knew a lot about lobster. We knew a lot about the service industry. We didn't know a lot about the trucking business. How did you get into the business? How did you get from Maine to bring the lobster over here to California? So, we both grew up in Maine and uh he's been out for about 8 years. Sabin has. What brought you out here 8 years ago? I used to do a lot of acting and I translated that into real estate and I become successful at real estate. It allowed me to to save some money and do well. He's still a great actor. He's acting like a greedy pig asking for 5%. Honestly, we're not trying to be greedy. What is in it for us to be a part of this family? Just like we need money, guys. These guys are talking all kinds of nonsense. I had asked you what the economics of the truck were. You know what? Because you thought it was more important to talk about all the nonsense and couldn't see through the nonsense. Mark, I'm out. Oh my god, Mark. What? It was a simple question. It was a simple question. You guys, they weren't ignoring you. You're starting to act like Damon, like a baby. So, why don't I I asked it twice. I asked the question twice, not once. So, you know what? I write a check. Yes, I am. Big mouth pipe down. Write him a check. Well, just cuz you're an old crab doesn't mean you should get in the lobster business. But Oh, damn. Man, are there other competitors? Sometimes there are two other competitors to our knowledge. Are they selling Maine lobster like they are? There's none in Texas. Who cares? Who cares where the lobsters come from? Guys, here. Help me cuz cuz I like the idea and I know this is very hot and people are loving this. Help me get to the million dollar $1.1 million valuation. It's so high. It's so ridiculous. Yeah, it's outrageous what you're asking for. I can't take it anymore. For the sake of lobsters, they're still alive. I'm out. Okay. So, the bottom feeder's out. to your to your point, we are first month $65,000, the second month $85,000. Fantastic. We're getting calls around the clock. We're getting we're turning down business. I'll tell you the honest truth. Maybe you don't know this about my history. I was a commercial fisherman for a year and I worked in Red Lobster for 8, right? So, I do understand a little bit of the market. You're making everything the fact that you just have a contact in Maine. I mean, one of the only places you can buy lobster, which everybody buy lobster from. So for $55,000 you are offering 5%. That is crazy. You're kind of like halfway in a body bag without the zipper pulled up right now. Two sharks are out. Damon is interested, but by asking for $55,000 for only 5% of their company. He feels Sabin and Jim have grossly overvalued their company and has given them one last chance to make him a better offer. Give me your best offer. I mean, I would feel really comfortable right around the seven to eight%. Okay. Okay. You know what? You're a very good actor. You said that with a straight face. So, uh, I'm out. Okay. Okay. Thank you. [Music] I really like you guys. I think you're hustlers. I like to invest in people that like to get up every day and work their butts off. And that's what we're doing. So, I'll give you the 55,000, but I want 25%. Okay. Okay. Is that an offer you would entertain? I do not think so. No. Can we hear Barbers? Well, I'm going to offer you your $55,000. All right. But for that amount of money, I would like to have 17% of your business. 17. And you know why? Cuz 17 is my lucky number. Sen, I'm really good at building businesses quickly. I think the way I'm going to get my money back is by having more trucks on the street. So, let me change my offer. I'll give you a h 100,000 cuz I think you need more money to get more trucks on the street. So, 100,000 for 25%. You don't need that much money, do you? Yeah. You've got one offer for $100,000 for 25%. And Barbara, who likes the lucky number 17, is randomly pulling your value out of the air, which she often does. What are you going to do? Our last question, strategies, thoughts that you guys might have. Great question. The best thing I could do for you, which this guy cannot do, is I am a genius marketer. I am. I have it in my bones, in my blood. It always works. I'm never wrong. I think your truck is terrible. Forgive me. Don't feel offended. It's not a personal thing. I can't believe your two handsome faces aren't side by side in caricatures as the cousins. And I don't even like the fact that cousins main lobster doesn't say cousins fresh main lobster. Should have fresh in there. Let me get my hands in that business and I'll tell you everything wrong with it. I have to agree with Crusty Krab over there. She has some great marketing ideas. All right, let let me answer that question. Uh, you got to be kidding me. There's a reason I'm up here. I I don't need to prove what I can do to you. You want to go in and change their business? You need a job, Barbara? Go ahead. My offer entrepreneur. You're left with Barbara. I have a job. Robert, you're out. I'm out. That was the butter and lemon right there. Okay. So, uh, Barbara, would you consider 12%. [Music] Okay. Why are you guys holding on so tightly to the equity? Because it's our it's our it's our baby. It's 80% of a watermelon is better than 100%. You said 5% of something is better than 0% of nothing in the past. You know what I'm going to do? I'm gonna meet you halfway. $55,000 for 15%. Halfway between the 12 and the 17 JT. Cool. Barbara, welcome to the family. Thank you. Come on over. Come bring sandwich. I'm coming. It's a family show, guys. Get on. Thank you. Thanks, guys. Guys, I was wrong. You can't even make a deal. Congrats. Thank you. By the way, this stuff is incredible. It's CML, baby. The future with Barbara, sky's the limit. And uh I think she likes us, Jim. I think she likes you a little more than me, though. Typically, that's but either way, we feel really, really good about it. And uh we're excited. Next into the tank is a way to take control of your healthcare. [Music] Hi Sharks. My name is Julia Cheek and I'm from Austin, Texas. My company is Everly Well, and I'm seeking $1 million in exchange for 5% equity. Who are you? Everly Well is transforming lab testing a $25 billion market to be simple, convenient, and useful for you. I started Everly Well because I had a really common problem. I spent months trying to figure out a very basic hormone imbalance. I went to a lot of doctors who ran a lot of tests which took a lot of time and cost me a lot of money and unexpected lab bills. All I received was a bunch of this paper with numbers which I spent weeks researching on my own with no help. I thought there had to be a better way and that's why we built Everly Well. Everly well provides convenient athome lab tests with results you can actually understand and use. The process is simple. Purchase a kit on our website where we have everything from food intolerance to metabolism testing. Collect your sample at your convenience at home and send it back to one of our certified and accurate partner labs. Board certified physicians review and approve your results. And in just a few days, you get your results in your inbox and online on our secure platform. You'll find easyto read graphs, custom content, and a community of support. No more wasting time in waiting rooms, no more guessing how much your test will cost, and no more wondering about your results. So, sharks, who wants to test the waters with Everly Well, let's do I'd like to test my cholesterol right now. Can you do it right? Not in real time. It requires a lab. Yeah, you go. Vitamin D. Vitamin D and I'm deficient in that. Food sensitivity, Lori. Know you like to cook. Thank you. Men's health for Mark. Cholesterol cuz you like to run. Barbara have good heart health. I know that. Sleep and stress for uh adrenaline from racing cars. Ah, thank you, Julia. Thank you. Walk us through an average test. Let's look at a Rohan's test. Does he send a blood sample? What does he say? Okay. Do I pee? What do I do here? Um, with the vitamin D test, it is a small finger prick blood sample. About half of our tests require a small finger prick, half of them don't. How do I get the test? I go to your website. So, currently we have 13 different tests, all available only on our website today. How much do they cost? They range from anywhere from 69 to$3.99. How much cheaper is that than going to the doctor? Um, it's generally cheaper to use our test. For example, the 10% 50%. Um, it very much depends on your insurance. So, Julia, it's not covered by insurance. Today we entered the market to get traction by being cash pay only. We are not in network with insurance providers yet. So what you're really selling to me it's really convenience. I can get the test done quickly. I don't have to go anywhere. Our customers tell us the value proposition is access, not just convenience. The reason we started the product is because people cannot actually get these tests on their own. They also aren't able to know the price of the test before uh they go to the lab to get the blood taken or provide a saliva sample. They get hit with a lab bill. Have you proven this out? Do you have revenue? Do you have consumers? Um, we launched in beta last summer. In less than a year, we have sold $2.5 million of product. Wow. And we're on a $400,000 a month run rate. We've grown 20% on average month over month. Good for you. It's very good. And you're projected to do what? So the forecast today is 55.5 million based on our online business without the genomics launch next month which is happening. Sales to sure are 5 million. Yes. Next year 12.3. So we do expect next year to be able to double through the genomics combined products. Tell us something about yourself where you don't know your background. Actually come from a fairly traditional background. I grew up in Dallas. Got actually a full academic scholarship to Vanderbilt. Graduated early with a double major in econ and psychology. Ended up in consulting and then actually went back to get my MBA from Harvard where I graduated um top 5% there as well. Wow. You're not a doctor, Julia, right? I'm not a doctor. You must have raised a lot of money. I've raised $5 million to date. Wow. At what valuation? The last round was a convertible note at a $15 million cap. What's your burn rate today, Julia? Our burn rate right now is about 150,000 a month. You're losing money today. Obviously, we are losing money, but it's cuz we're investing for building additional features. Um, if we were to cut down the headcount and say, okay, are we just going to grow organically? We could do that with our margins today. It's just not where we want to go. Now, we do have one test that we just launched, which is already 10% of our business, which is our STE test. I was going to ask you that. Yeah, you're missing STD in a big way though. That honestly will end up being your number one seller. Is there online competitors like you? There is no online competitor doing a platform of at home kits. What about a company like 23 and me? Could they just not pivot? What's the competitive advantage? We believe our competitive advantage is the platform. Um, of our six labs, we can actually roll out 250 different tests. And next month, we are launching a partnership with Helix to actually bring in genomics products. So you can get any type of health data, whether it's genetic, whether it's lab. So there are people that will give you certain specific tests, but you're doing the entire range of them, right? Are you looking to sell to something like 23 and me? What's your goal? Yeah. So our our customers are 75% women and and really women are going to be, you know, they're 80% of the healthcare decision makers. 75% are women. It was higher. It was 85 before we launched our STD product because women are managing everything. They're the ones that need to save the time. And to the exit question, this is a really hot space. There is an a lot of opportunity both for um acquisition from either traditional diagnostics companies or from uh genomics. Julia, your challenge is competition. It is a race right now. It's going to take a lot more money. There's going to be a ton of competition in this space. And so for those reasons, I'm out. Okay. I think uh what scares me about your business is I think it's going to take constant redevelopment and you're going to need a lot of money that I'm not willing to give. So I'm out. The cost of doing business in America for employees on healthcare is astounding. When I compare it to my UK cost or my Canadian cost, it's unbelievable. Four, five times as much on a per employee basis. As Mark said, it's a race and you got to raise more money. It's not for me. I'm out. Okay. I've seen a number of presentations. I would say yours is probably right there at the top in terms of poise, intellect, sophistication. I also think that taking charge of your personal health is a massive trend because we want to know what's going on. We just don't want to go to the hospital, right? But this is a highly expensive game. I think the million dollars that that I'm happy to give you would be diluted rapidly because this is going to take tens of millions to get to the promised land. So, for that reason, Porsche, I'm out. Um, I think the product is brilliantly crafted. Thank you. It's really nice. It's really easy. It's super clear. I think the state of healthcare in our country right now is so precarious. Millions right now are out of insurance or fearing that they will be. And I think that this gives people an empowered way at least to check on some things to know whether or not they have to go find a doctor. And I totally get the woman thing. I would like to take a flyer on you. So, I'm going to be a little creative here. Um, how about I give you a million dollar line of credit, 8% interest for the 5%. And then I'll bring all the marketing savvy and the retail and everything that I know I can do. We actually desperately need a line of credit. Oh, as you know, our inventory isn't very expensive and we don't have enough history to have collateral from a bank. And so, while I didn't bring that up today, it was something that um I'm very interested in. So, I read your mind. You did? Well, then so I know that I'm technically supposed to counter um but I would love to do a deal with you, Lori, if you want to do it. Thank you. Outstanding. Well done. to work with you. I love it. So, congratulations, Joey. Thank you all very much. We really appreciate it. Thank you. I'm so excited. Lori has the knowledge of how to think about branding. We have a great team of investors, but there's something about being able to understand how to sell products to our our consumer base, which is women. Um, and she's going to be so helpful in doing that. Let's just take this example. Let's say you're in college. you're sexually active just for that test alone. Think how many students and young people and whatever it would help out unmarried people it would help out. [Music] Hi Sharks. I'm Aaron Krauss from Philadelphia and I'm known as the daddy of the Scrub Daddy. The cutest but most high tech scrubbing tool in the world. Today I'm seeking a $100,000 investment in exchange for 10% equity in the Scrub Daddy business. It's the greatest kitchen scrubbing tool you ever used because Scrub Daddy completely changes its texture by just adjusting your water temperature. Let me show you how that works. Here I've got some hot water. Here I've got some cold water. When I immerse the scrub that is in the hot and cold water, a complete transformation occurs. Now to show you that, I've got 10 lb weights. Here under the 10 lbs, it's soft and compressible. And that's like a sponge. That's for your general scrubbing applications. But here, check that out. It's hard and firm. That's going to be for heavy duty scrubbing applications. We burned on browning gravy, tomato sauce, cheese, and mustard onto a glass stove top and a stainless steel pan. I'm going to take the scrub dye, and you're going to see it's just going to attack right into that burn-on mess, scrubbing it right off. And remember, I'm just using water here. There's no chemicals at all, and it's going to cut right through that. It won't scratch any of your surfaces, but it will clean them beautifully. Now, Scrub D is not really smiling anymore. So, I'm going to put him here in the warm water. And in just a couple seconds, voila, he's back to bright, fresh, and clean every time. Sharks, that's not just another smiling face. You put it on your hand, you can get to the bottom and clean the sides in one move. And that smiling mouth, that cleans spoons, knives, forks, spatulas, even large serving spoons on both sides at the same time. Sharks, with your help, scrub that I will be scrubbing and smiling in every kitchen in the world. Woo! Wow. Wow. Scrub, daddy. I never witnessed a live infomercial. That was fantastic. That was incredible. Do you have samples? I do. Where are you selling this now? Thank you. Well, currently we have it in five supermarkets in the Philadelphia area. We also sell it on our website. I've been on QVC three times over about three months. And how'd it go? Fantastic. They've invited me back over and over and every time I go on, they reorder 30% more than the last time. So, Scrub Daddy is humming. And what were your total sales? QVC just north of $100,000. Only in 4 months. Do you have a patent on this? I actually have a patent. I have two more pending. We have the trademark. We have domain names. Okay. Aaron, what do you need the $100,000 for? What I want to do is set up an independent manufacturing facility with automated equipment. Why do you need to go into your own facility? The biggest problem is I'm on their time schedule. Are you saying that you could be making more revenue if you 24/7 making Scrub Daddies? The way QVC is going and we're just about to launch in a whole bunch of stores. We're going to need that capacity and I have 18 years experience running a manufacturing plant that runs 24 hours a day. I know exactly what I need to do to make this thing really efficient. And I'm looking to get a strategic partner who can open this up into the retail stores. I'm only in five supermarkets. That's it. What's your cost? The cost to make one's about a dollar. What are you selling them for? About $2.80. Wholesale? Wholesale? This needs to be in every supermarket, drugstore, Walgreens. So expensive. Mrs. Sabinsky goes to the store and picks this off the shelf and says, "Hey, it's a piece of foam with a smiley face on it. Cost 2 cents to make in China." That's what she's thinking. Cuz a brillow pad, which is traditional product, is what, a 20 20%. You're comparing it to the lowest end to the lowest end. You take it up to the highest end. Talk about the the ones like Dolby pads or other pads out there that are, you know, brand new. Daddy, I I think you've done a great job today, but I don't know if it's going to work in retail. I don't I don't buy into that vision. Just in the packaging. I just don't know if I see the cover. It doesn't sell on a shelf. Correct. But if you put it in display shippers, which we built these beautiful cardboard display shippers, and it communicates the message to every end caps, you're going to have to pay for those things. It's hard to get them even if you pay for them. Great job today, but I I don't see the retail vision. I'm out. I understand. I like the product. I think you you're doing great things. You're doing it the exact right way. But when I hear QVC, no disrespect to Lori, when a company's sales are completely dependent on QVC, that's a disaster waiting to happen. I I've got 3,000 stores lined up right now. We're going to be in 3,000 stores. I understand. But even Okay, put aside QVC. You're still a one product company, right? Not for long. We've got Scrub Mommy. We've got Scrub Baby for doing baby bottles. I've got a holder that sits it on your sink and it's got drains in the legs. You don't understand who you're dealing with. I am I am right. I'm not doubting the scrub market. I'm not doubting you are the scrub daddy, but I'm not a scrub pimp. So, I'm out. [Music] That hurts, Mark. I wanted to work with you so bad, Mark. QVC does over 8 billion in sales a year, and I've done over 500 million myself. Yes, you have. And you rotate products in and out of there, and once those products are out, they're out. How about this deal? 100,000 for 50%. [Laughter] Let's start the bidding there. All right, you're out. You know, I'm somebody who could paint any picture and I think that Lori is a vicious, backstabbing shark. That's all true. But sometimes I love her as well because she is the QVC queen. So, I'm offering $50,000 for 15% if you can raise the rest from Lori and if she wants to do business with me. Well, here's the thing. You've heard me say before, I can tell instantly if it's a hero or a zero. And I think what you've got here is a hero. No offense, demon. I don't need you. You don't. My offer is $100,000 for 30%. I will get you into infomercial right away. And I'm pretty confident that we could get this into all retail stores across the country within literally weeks. I'll tell you what I'll do for you. I'll give you $100,000. We'll never agree on what percentage I should get, but I'm going to change the model completely. You're going to keep the whole company, but I want to be your finance seer. I want you to give me 50 cents on every unit sold until I get the 100k back. Then it drops to 10 cents in perpetuity. He just wants to increase your cost of goods sold by 50%. Nothing, right? Why give up 30% of your company? Just to sweeten the pot a little bit, I'm going to give you $150,000 for 25%. Wow. What are you going to do? I'm changing my offer actually. $100,000 but for 25%. The experience, the connections, everything that I have, it will be successful. I am partnered with the best of them. Why give up any part of Scrub Daddy? Think of the relationship you have with this sponge. You're selling this thing out and it's going to cry. It won't be happy anymore. QVC infomercial and into every single retailer worldwide. That's the power of what we can do just by one infomercial spot. I can get you there already. We've heard that already. We've heard that already. I want the answer to one question. All right. Do you think 25% of the equity in your company is worth more or less than 10 cents a unit in perpetuity? And he's off top. Where's he going to take you? It doesn't matter. It does matter because you can you keep 25% of this business which may sell 10 million of these and you keep it all for yourself. But you're going to be keeping nothing because he doesn't know how to get this out. You haven't had any success. You're an idiot. You don't know what to do. I know what to do. Exactly. I just did a half a billion dollar deal with Walmart. Half a billion. But that doesn't mean retail. Okay. I I'd like to review the kitchen speak. And it's saying Lori, go with Kevin. Erin, there are like children out there. It's awful. Let's recap. Let's recap, please. 150,000 for 25%. Okay. From Damon. Kevin, $100,000 for no percent and a tiny tithe of 10 cents. You keep all the equity. Lori is offering you a 100,000 for 25%. I offered 150 last time. Whoa. Hey, I didn't hear that. 100, Lori. Oh, well, I changed my mind. 150,000 for 25%. I'll make you a millionaire within a year. So, mine just went to 175. Whoa. Is up to 175? Yeah. Mine just went to two. Whoa. The good news is I just made you an extra 100,000. I'm out. I wanted to stick it to her. Ouch. [Music] Wow. I'll drop the 50 cents down to 25 cents until the 100K is recovered and then go to 10 cents. Will you go to 5 cents? 7 and 12 is a deal. Okay, Aaron, you've got two offers on the table. What are you going to do? You have to make up your mind right now. You don't see the benefit of having me as a partner. I never said that. You need to tell me right now whether you're going with me or not, or I'm out. I'm here for you. I think your deal is awesome. Um, the equity amount is is too much. Would you consider coming down to 20? You know what? I will. I'll go to 20. We got a deal. Got a deal. All right. Good. Way to go, Aaron. Woo. Congratulations. Thanks, Luke. I'm so excited. You are dead to me. And the sponge is dead. Thanks, guys. Scrub Daddy, you suck. That is awesome. Got a deal, Lori. It's It's a dream come true. It's absolutely a dream come true. I don't care how much money you have. I'm so satisfied to know that you lost an extra hundred. I know you'll get me back. It's going to be a gang buster. Huge hit in infomercial. Good deal, Lori. It's great deal. Next up are entrepreneurs with what they believe is a better version of a common wardrobe staple. [Music] Hi Sharks. I'm David. And I'm Randy. Our company is Bombas and we're here today seeking $200,000 in exchange for a 5% equity stake. Bombas are athletic leisure socks engineered to look better, feel better, and with a mission to help those in need. The mass market athletic sock hasn't changed in decades. Same basic colors, same styles, same cardboard feel until now. We spent two years on research and development and came up with seven substantial improvements for the athletic sock. The result is the most thoughtfully designed and comfortable pair of socks you'll ever wear. But the story of Bombas goes way beyond re-engineering the athletic sock. We learned that socks are the number one most requested clothing item at homeless shelters. That really stuck with us. So, for every pair of socks we sell, we donate a pair. So, we hope you'll join us to make better socks for a better world. We brought some socks with us today for you guys to try on. Thank you. Sure. Absolutely. Here you go. Can I get these? Those two. These two are for you. Sure. Thank you, sir. Appreciate it. Sure. We'd like to take a quick moment while you're trying them on to take you through our seven substantial improvements. We started with Peruvian Pima cotton. This is a natural fiber that wicks moisture, breathes, stays warm in the winter and cool in the summer. Up by the toes, we got rid of that annoying seam that's always causing irritation, creating our Invisae. In the midfoot area, we created our proprietary honeycomb arch support system and added our ultra comfortable performance footed. And back by the heel, we created a Y-shaped stitch to create a natural cup around your heel and added a blister tab for the ankle socks. So, David Randy, I'm a big runner. I got to tell you, specialty sports socks are everywhere. How are you different? Our primary difference is that we tested socks from everything down to your cheap mass market multiacks all the way up to your $18 to $22 niche athletic running socks, which is what you're talking about. We found out the major things that made those socks feel so much better and brought them down to a $9 price point. And on that $9 price point, we're still able to donate a pair for every pair purchased. I too am a fine-tuned athlete. I can open up to three bottles of wine in an hour. And I like to do it with socks on. But I have a question philosophically about this idea of giving something away every time you sell. You have to double your sales to give me the equivalent returns that I get from a company that's not doing the same thing or your sales double because of the goodwill that you're putting out there. What's your wholesale? We sell exclusively online. What are your sales to date and when did you first start? All right. So, we first started in October of last year, and in the in the 9 months since we launched, we have $450,000 in sales. That's not bad. What will sales be next year? We think that we'll close the end of this year at $1.1 million. We think we'll close next year at 2.7 and the year after that 4.9. Great sales for online. An average margin is 54%. That's shipped to the customer, including the giveaway. The giveaway. And what is your month-to-month growth? So, our month-to-month growth has plateaued this year, but we've also been spending the last two months on fundraising. We've been able to circle $900,000 in outside funding. What value? Uh $4 million valuation. Guys, why are you worth $4 million? Well, it's worth what people will pay you for it. You can get bozos or you can get me. You get both with him. The godfather of bozos right here, guys. a $4 million valuation in a total commodity of socks is ludicrous. And I think reality will strike because you guys are still sock cockroaches. You're nowhere. You have no market share yet. You have no retail exposure. You could have said that. If you can raise if you can raise money, any company, every got to start somewhere. If any of these sharks give you money at that valuation, I will forbid it. It's ridiculous. I'm out. Thanks for your consideration. Appreciate your time. So, 400,000 in sales. Impressive. Thank you. Thank you. Here's the challenge. Will it work as a standalone online business for the long term or is it supplementary? You haven't convinced me that this will work as a standalone product sale. Let me address that. So, in the $450,000 that we've done today, we have spent zero dollars on advertising or customer acquisition. So all of those sales have come from people telling other people about our product. That's the concern. Word of mouth is not a scalable strategy. Right? So word of mouth was our proof of concept. Right? That is what So what's the next? So the next step is we're taking this money and hiring people the customer acquisition specialist who is going to raise our base daily sales from $500 to $300 to $5,000 a day to build our baseline cushion. Hold on. Partnerships with globally hotel recognized a good answer for me. I don't think you've done a good job of telling me what's going to look like and what the key advantage is going forward. I'm out. Great stock though. Thank you. Before all the sharks out, do you want to change your valuation metrics? We're open to offers if you guys want to. Well, let's let another one drop out and see what happens. When I heard you just now say that you wanted to use the money to hire in people, I hate when I hear that. here. You are two smart guys and I feel you should be doing everything to run everything that you can right now the two of you. So I really don't like that strategy. Emma, you've plateaued and you know when you're viral, i.e. word of mouth, right now's the time, nine months in, you should not be plateauing, right? And I get now you want to spend money because you have to. My biggest problem is when you look at Warby Parker, when you look at Tom's, they're very high margin, much higher dollar items. A $9 sock when it's all said and done with a $5 margin. There's just not enough margin dollars in each sale and each customer. And that's always going to make you have to run faster and further. And for those reasons, I'm out. Thank you. Thank you very Okay, now we're down to one shark. Happens to be the fashion guru. You know that scene in those movies in the ER where they're bringing the patient and the car is slowly boop paddle circle. That's happening right now. So, you have a chance now to readjust your valuation before you hear from the last shark who happens to be in the fashion industry. Do you think you should do that or are you going to go down with [Music] theoop heard from four other well-educated people in business? They obviously don't agree with that valuation. Do you have a different valuation that you would like to offer? So we we came here today obviously with your background wanting to strike a deal with you. So based on that, we would we would probably be willing to go down to I mean, how about $200,000 at 10%. That gives you a $2 million valuation. That cuts our valuation in half, but we think you can bring a ton of value to this. 200,000 for 10% is your counter. So you've cut the valuation in half, down from 4 million to 2 million specifically for Damon. Well, it's only a Damon John deal. I mean, it is it'd be foolish to say that he doesn't bring value to, you know, an immense amount of value. So, guys, I was about to be out, but I like that valuation only because it looks like you do want to get to work. 200,000 for 20%. Very sobering to hear reality strike. Very. I was out already. I had already was thinking about the next person walking through that door. Sure. And that small indication of you wanting to make a better deal. We're here to make a deal. Okay. I am offering you 200,000 for 20%. And then we'll just get to work. So I think I think we really respect your offer. I think that the challenge with that and I understand that you might want more equity is that we need the additional equity to go out and raise capital without giving away 40% of the company. What are you raising the capital for? We're raising the capital to hire and spend on marketing and you know build out our team. Inventory and product as well. Inventory and product. I'll finance. You'll finance that outside of our deal. I'll finance the inventory regardless of how much it is. Regardless of how much that is. But I I would have to question what you're doing with the market and everything else cuz that's a black hole of advertising. Sure. So, um I will finance the inventory. So, our counter to that would be $200,000 at 15% with a $200,000 line of credit. Is that just so crazy? Okay, guys. Um, I'll tell you what. I'll try to meet you somewhere in the middle. I'm going to finance the inventory. $200,000 for 17 12%. That's it. No line of credit. I'm I'm financing the the goods. I'm already I'm on the hook for the goods right now. Can we uh can we take a moment and call our CFO? Uh, no. Your CFO gave you the bad advice already to ask for that valuation. It's you guys and I don't want to talk to anybody else. As partners, I'm going to talk to you guys and you're going to talk to me. I can't believe it. All right, you have a deal. We'll take the deal. Thank you. Thank you. All right, guys. Great decision. Great decision. Great decision. Thank you. Congratulations, guys. All right. [Music] Hello Sharks. I'm John and I'm so excited to introduce to you today the world's most genuine online floral solution, the BS company. I'm here seeking an investment of $258,000 in exchange for 3% of our business. Now, just by way of introduction, I'm a Pittsburgh born guy who knows how to make a lot of money. Mr. Wonderful, selling lovely flowers to be sent to the lovely people in our lives. Glory and Barbara. These are for you. What a loser. Man, after my own heart. That's our desperado bouquet. And this is our diamond. You know how to suck up to me, baby. And I love it. Are those real or they fake? They're real. They're beautiful. Oh, wow. They smell great. So, this business is working because there are really major consumer pain points in this industry. They say it's 1999. You check out 64.50. What's up with that bait and switch product? You see a photo, it's not what arrives. And this is flowers. This is supposed to feel good. There's a solution. And the solution is books. Books are bouquets simplified. Now, there's three things that we do to really make our business special. The first, we have one price. It's $40. $40 including shipping. There are no care and handling charges. And we also don't try to sell you a cheesy plastic butterfly or some balloons that just degrades the experience. The second thing we do differently is we ship straight from eco-friendly sustainable farms located on the equator on the side of a volcano. Seriously, that's the volcano. It also means you get a really fresh stem because it comes straight from the farm. The third and final thing we do differently is our concierge service. You can schedule an entire year's worth of deliveries, birthdays, anniversaries, important business dates. We take care of it for you and we do it all at a discount. Business is blooming. Let's get you guys out of the water and onto the volcano. Who's with me as we build the next big flower brand at the BS company. Tell us about the business. The business is essentially an e-commerce business. We launched this business about 11 months ago. Um, this year to date, we've done $700,000 in sales with almost no marketing budget. Wow. Good for you. What are you attributing your success to? I think people were ready for something that feels a little different in this space. Is this a $40 bouquet? This bouquet you That's a $50 bouquet. I thought you said you had I thought you said everything was 40. Everything was 40. So our $40 price is for all of our SKs and you can double that skew for $10 more and you can triple it. Double the amount of flowers. Exactly. So that's the most exciting angle and you didn't even mention that. It is. That's a great angle. Let's go back for a sec before we dive into the numbers. How did you even start the business? We started the company actually with my co-founder. His name is JP Montuar. He's actually on the volcano which is why he couldn't be here today. And he's the sort of floral farming expert and I'm more of the front end operations marketing brand side of things. And explain to us the volcano. I I don't know a lot about where different flowers come from. At the bottom of this volcano, are there a lot of very prolific floral farms? Absolutely. What is your cost of customer acquisition? Our average year a day is $13. Last month was 20 bucks. Wow. Just give us what data went into that number. So it's a combination of some really amazing PR. Oprah magazine, Daily Candy, Thrill List, Wall Street Journal. How much money have you spent just on PR? No, not PR, marketing, advertising. Total marketing to date has been about $70,000. What does the $40 bouquet cost you? We're at 40 to 50% gross margins on the smallest size. Uh when we get up to the triple bouquets, we're closer to the 50% end of that range. Do you ship overnight? I ordered today. It's my husband's birthday tomorrow. Do I get them tomorrow? We do not. It is 6 days of delivery. Your first order. I think you just ran into a box. John, the average guy doesn't realize it's his wife's birthday until that morning. I understand it. How is he going to wait 6 days? So, two answers to this question. One is overnight shipping launches in 3 weeks. We're doing the same exact model with California Farms to satisfy the shorter leave time. What will the price be with overnight shipping? $10 more on everything, slightly lower margin. But you're totally changing your model already. Um I don't know that we're changing it. It's still farm fresh. You got you have it from California and is going to be $50 actually. Yes. Some of our roses will last in your home 3 weeks and people tweet about that. People talk about it. what you attribute that to. So my co-founder JP's background in biology has come in very handy. We actually have a proprietary process that we use to hydrate the flowers. And then the other thing is you're getting these flowers four or 5 days after they were cut. Whenever you're at a local florist, they're just by definition because it takes so long for them to get there. Then they have to hold that inventory. Just much older flowers. Let's go back to the numbers because no one's tackled what really matters here, your valuation. My math I think is correct at 8.6 million you're asking for. That's right. Okay. So, let's be pragmatic. You're going to do 800,000 in this calendar year, right? We're going to do 1.2 million. And you're going to make on that about 250,000 pre-tax. Yes. Okay. So, how do I value your business? Give me the metrics that makes you worth 8.6 million. Sure. So, the growth has been astronomical. We started the business 10 months ago, and we started with $13,000 in a total sort of friends and family round, which was literally like my parents and my sisters and my best friends. and we grew that into $700,000 in sales. You said you raised 13,000 friends and family. Have you raised any money since then? We closed a seed round in May of 1.1 million. At what valuation? Uh that was a 5.2 post money. To me, that that's a huge problem. I don't like to be just one of many. I don't like to be dumb money. And for that reason, I'm out. You just raised 1.1. Why are you here looking for 258? We're actually raising a full round of a million dollars. So you you have an existing round that's open and the investors are willing to pay a 40 times free cash flow. I'm a very pragmatic investor. I don't care what you're selling. What matters in business is cash flow. That's it. You're asking me to pay 40 times which would be the absolute premium that I would pay for a much larger company. But he's growing. Yeah. But but it's a flower business. your angle. The thing that I saw is different. What's his angle tell me that? That it's $40 a bouquet. That's it. No added charges, no shipping and handling, and you can upgrade for $10 to a $50 bouquet. My problem is all your competition can do exactly what you said if they like the idea and the strategy. So, for me, I think that this doesn't have an edge anymore over any other floral company. I'm out. All right. Look, 258,000 for 3%. I mean, that it's such a small irrelevant amount to what you've already raised. I I have a challenge with that. And I don't know if your competitive advantage is sustainable. I'm out. I want to address the the name of your business. I think it's a terrible name. It's hard to spell, hard to remember. If you gave me a spelling test, it would take me 10 times to really get it. I'm out. As usual, all roads back to Mr. Wonderful. I tell you, John, there's one problem with your deal. You are crazy expensive. I think the risk in your deal is not executional risk because it sounds like you know what you're doing. It's exit risk. You have to be acquired by a strategic. Very true. You're in the neverland. You're in a place where it's not that attractive and you didn't really differentiate yourself against the commodity other than to tell me you're a better marketer. That may be true, but I think you may die of old age waiting to exit. But there's another problem. If I want to send flowers to your grave, I have to wait 6 days. And I think and I think you died here today. I'm out. Well, I very much appreciate all of your time and and your input and thank you so much for having me. Good luck, John. Thank you for the flower. You're welcome. Yeah, Kevin sending flowers to my grave was a really funny comment. Um, but he forgot that we offer overnight shipping from California so they can show up to my grave right on time. Brutal.