next up is an easier way to get into the habit of a popular [Music] practice hey sharks my name is Yuna and I'm from San Francisco my company is simple habit and and we're seeking $600,000 in exchange for 5% of the company now the valley takes over before we get stressed out by these numbers i' like so stressed out I'd like to invite all of you to close your eyes with me let's just take one deep breath together breathing in deeply $600,000 12 million valuation 5% these people are horrible just don't don't do it don't do business with them they're just horrible people breathing out slowly open your eyes now oh it's only 2 million with my wallet feel better you just meditated simple habit is meditation Made Simple our 5-minute meditation app is designed for your busy lifestyle it's so easy to use let me show you first download and open the app second tell the app what you're up to for example let's try before work today I'm feeling the Monday blues welcome to simple habit session on the Monday blues let's try and shift our mindset today and take it one moment at a time voila there's a 5-minute meditation for you we create thousands of meditations by top teachers from around the world you'll find meditations Guided by mindfulness experts to Executive coaches who normally charge thousands of dollars for their teaching but with simple habit you can get them all right at your finger tips so sharks please join me today in helping the world reduce stress improve focus and sleep better the voice that we heard is that the actual voice on the app we have many teachers it's one of the teachers on our do you pay people for their voice we give out 20% of our net revenue to our meditation teachers the business has been going for how long now uh less than a year in your first 12 months how it's gone in less than one year since our launch we've had over half a million users use this product wow we've grown from 0 to $750,000 in annual curring Revenue wow what's your own personal background my dad came to the States from South Korea to study engineering my mom worked at dunin Donuts to support him and I was born and then they went back to South Korea for a job when I was 14 I decided to come to the state by myself uh to study at a boarding school in Portland Oregon I went to Duke for my undergrad where I double majored in economics and Chinese and my first job out of college was in Investment Banking one day I had a business idea that I wanted to pursue so I quit that job um and that's how I started my previous startup what was it it was a software business called locket and what happened to that company so we sold a company a few years ago after selling the company I went to Stanford Business School and it was there I started working on simple hang on you've got to do more with your life you're just you're not packing enough in so if if you've got $750,000 in the first year what do you think you could get in the SE sure we've been growing at 50% quarter over quarter so last month month we did $75,000 in sale and this month we're on track to do $90,000 and what's the cost it's a free to download app but if you want unlimited access to some of our premium content for example meditation before an interview meditation for engineers what does that cost $1.99 a month or $99.99 a year so how many people are doing the subscription service uh over 5,000 subscribers as of today do you have a main competitor yeah there are meditation apps out there and in fact this was why I started the business because most of the apps out there only have one teacher and it's all that his or her voice and after a while you start to tune out so you're creating a a collection a vast amount and that's your differentiation we're a Marketplace for teachers and students were you were you profitable or were you losing money in the first year we've been losing money uh even now because profitability is not our main component when would you expect to be profitable is that nice uh so uh we're expected to be doing over $5 million next year how much money did you raise we've raised about $2.8 million oh what wow 2.8 million yeah for what percent round was at $12 million valuation cap we use convertible notes how much of the 2.8 million is left we have most of it uh in the bank today we have about uh over 2.3 what do you need the 600,000 from us for I'm here because I think that you guys can add so much value to us wait wait you know if you think we can add so much value why are you valuing our contributions as the exact same as any other investor in this note because that note was from many months before when we had much less Revenue we didn't even have half of our team at that time so now the risk of the company is much lower so what is that exactly do you think we can contribute uh for example I think Sir Richard could help us a lot because your brand embodies this chillness and coolness and that is simple habit you said you have over $2 million left and you're not going to run out of cash and you're offering us 5% what would you like us to do for that we're planning to scale uh user acquisition we're also going to start doing um a lot of partnership with celebrities and influencers because like so wait wait wait wait wait wait wait wait wait wait right there I'm I'm so out I'm so out so out so out did you hear what you just said you want us to pay you and not be compensated basically for our you're going to go pay a bunch of other people but you want us to pay do the same thing that they're going to do can I clarify okay we would love to partner with other celebrities and influencers but from an investment perspective you don't need the cash that's a nice problem she's going to get exposure from being on this program uh she can but that's what she is she's a gold digger she's a gold digger she's not a gold digger did you just call me a gold digger yes a gold digger listen that's you know what it is there's so many people around the country that stand on that carpet and they busted their button they sold their house they mortgaged everything they've had and their kids college fund to hopefully get2 $300,000 to run their business every time somebody steps on this carpet who has a couple of million dollars on the bank you take away the opportunity of somebody who may have lost their home or sold their kids college fund and you take that opportunity away from them when you can go get money elsewhere that's so unfair yeah it is not it not we can only see so many people money out of her you got more money to give but that's not the case this show was because of people who had no place else to go and you know what i' rather give my time and opportunity to somebody else who desperately needs it I'm out okay so I love meditation I do but I don't think you need to actually be raising more money I'm not even sure that it's so responsible at this point to your investors while I might be a customer I won't be in investor I'm sorry I'm out that's why I called you a girl Digger it wasn't a personal issue it was more about coming here not really wanting a deal but looking to get the commercial that sounds pretty personal I think CH tanks were people of all kinds of different businesses and and all different kinds of backgrounds it's funny I I was talking to my son earlier today and he has learned meditation recently and he just said how wonderful he feels I've not meditated i' I've tried once I just fell asleep when I was trying to trying to meditate I love to be converted into meditation cuz those people who do meditation seem a lot happier than those people who don't so I would be reluctant to get involve the 600,000 oh shocking oh what happened shocking just cuz you just cuz you crap on her with a fancy boys doesn't mean that same just I'm about to throw water at these two guys could we possibly come in at for 300,000 and maybe for 10% no no no no no Sir Richard Brandon I'm asking a question has to be 600 oh okay I think the water just has to let me let me tell you what I think oh my God oh my God I'm out of here God I'm out of here I mean if the show can't go on the show can't go you know I I I think it's so disrespectful to say just because you've done a great job of of raising money that you don't deserve to be here everybody who can make it here deserves to be here so welcome to the Shark Tank so you want to give her money well hang on Richard offered you 300,000 for 10% you need 600,000 I'll give you 300,000 also for 10% so you've got 600,000 if Richard will come in with me at 20% at 20% there you go first of all excuse these very Rudee people on this panel which of course I punished one we'll sort the other one out in a minute the last thing anybody should be embarrassed about is having raised good money for their company and I think the bigger the war chest you have chances are that you'll reach millions of people around the world and I would love to see if I can help you reach those millions of people I really appreciate the offer um but I do have the obligation to stay Fair um to some of the investors that have earlier on um invested in me and you know gambled on me you have to agree that there's a value in having a shark so I think as Mark said we're not I'm not I don't feel compeled to offer at the same value as the other investors did with all due respect to them make us a counter would you be able to do uh 10 million of valuations yeah we're going to build the world's largest platform for health and wellness we are changing people's lives people that are going through cancer that are going to [Music] divorce you know why are you crying I just get a lot of letters from people that we change our lives with um and I'm not lying we get so many letters from people that are going through difficult times in their life while I understand this investment opportunity but I really think that we can really change the world together yeah I you know I I love your your drive with it it's obviously deeply personal to it you know your counter is roughly 6% I can't get there I mean I'll go down to 15% I'd love to be involved with it I don't want to speak for Richard I'm very happy to do it on that basis you've seen the show there's tremendous value of being on here I actually think I actually think there's a value add to your investors that perhaps you're not factoring in you valued the visibility you valued The increased marketability and the value to your product but you really didn't value US I I and I get I get your position that the 3 months of Accel alone me he's out already we're happy to do 15% thrilled I would love to be involved with it I just can't do 15% you and I I I think you're being a little short sided I'm out I don't think she's being shortsighted she's ining what's right for her um her shareholders for for her company she's got the money congratulations on creating an incredible company good luck but sadly I'm out wish you all all the very best thank you good luck congratulations I I did this because out of passion I wanted to change a lot of people's lives but um just to see it as a financial opportunity like that and and say that this doation is you know a gold digger um felt um a little harsh to me part of what we're able to accomplish on the show in our nine years is educating potential entrepreneurs I do the show because kids that watch the show learn when I called this woman a gold digger it wasn't a disrespect to her or her company or what she's been able to accomplish it was the fact that she didn't care if she got a deal she was here only true oh without question and she we see it all the time when hang on a second you're telling her she doesn't have the right to be here no you know what it takes to get a deal on this show we've seen people particularly from Silicon Valley who look at us as a growth hack they could care less if they got our money or our expertise they just wanted the commercial I think that's wrong we're blowing something up completely unfairly and she's smart this is Shark Tank right you are here to come in and get a deal and the whole idea that we have sharks is because we're supposed to add more value than here to get the deal that Mark cubin likes why can't she get the deal that she wants tell you what I find slightly embarrassing we're talking about a meditation meditation we need some meditation I need a hair dryer next into the tank is a better for you version of a classic snack hi sharks I'm Allison Lynn co-founder of L air I'm Steve AA co-founder and I'm Kevin AA CFO and we're from Madison New Jersey and together we're the snack sharks we're here today to ask for $300,000 for a 3 and 12% Equity stake in our company like air America is a snacking Nation we love snacks and if you're anywhere from 6 months to 106 years old our snack is for you so let's say you're craving a tasty snack but you don't want the guilt that comes with unhealthy options that's where like air puffcorn comes in it's a delicious light and Airy snack that melts in your mouth and unlike popcorn it contains no hard kernels so it won't get stuck in your teeth there is nothing artificial in L GE popcorn it's made with non gml corn it's glutenfree and free from eight major allergens the best part it's only 50 calories per cup you can have three whole cups per serving while L air is light in calories it's not light when it comes to flavor L care comes in four delicious varieties two Savory versions classic and white cheddar and two sweet flavors pancake and cinnamon bun and would you believe that pancake and cinnamon bun have half the sugar as the leading kettle corn we've created a delicious melting your mouth SN that is better than popcorn so sharks who's ready to take a bite out of the snacking market and help take like air to new heights we get to try it yes yes please right in front of yourself oh wow this is so good thank you than you classic is kind of our take on a movie theater butter but of the J grind the corn up into a paste and then use an extrusion system to Puff it yeah so it comes as a a cornmeal and then it's kind of mixed with a little bit of oil and water just a little bit and then it's it's still very kind of powdery and it goes right in the machine and puffs right out it's kind this actually has a better flavor to me than movie popcorn very very good it's probably the best low cal snack we've seen on Sharp tank in 15 years thank you thank you how did you come up with this after having my first daughter I got into what she was eating healthy snacking um I saw a lot of areas for innovation in the snack market so I came to my brother Steve and I said let's start a company together so in looking at all the kids snacks we wanted something that we said okay not just for kids but for everyone and puffcorn is something that's been around there is a national brand but it uses a lot of junk so it has artificial color and artificial flavor and non- premium ingredients so we basically took that and we put kind of that up Market spin on it I'm really proud of what's in there I'm like you know T fantastic every flavor is fantastic Steve what were you doing when Allison called you and asked you to start the business with him I had a I I was started my career off as an investment banker and then went to work at a small pharmaceutical company as their CFO and then we sold that company and I was kind of doing some Investments on my own and uh was ready to do something new so let's get him back to work and what were you doing Alison um so I have a degree in international politics I was a full bre scholar I studied conflict resolution in Cyprus worked at the United Nations something that's a passion of mine and then you know I'd always want to do something kind of on my own but I said first let me work at a startup so I worked in financial technology um and then after having my first daughter I started this company wow what a resume what about you I also started my career in Investment Banking then I worked in private equity and since then I've worked in uh a couple high growth uh startups what's the price how does it compare to normal popcorn so it's it's very somewhere in pricing to kind of all the bag snacks that are out there how much is this it retails about for $3.99 and wholesale it's 250 wholesale what does it cost to make a bag cost 88 cents to make so we actually just invested in our own dedic at production line at a new new co-packing partner in Chicago you bought the Mach yeah we bought the Machinery we spent a good amount in the machiner about $2 half million okay so you've raised a lot of money then we've raised a explain what you asked for we start in uh what did you raise so we raised in 2019 we raised $800,000 we just uh raised uh three and half more million dollar in our kind of growth round and that's at a $23.5 million post money valuation so I'm curious if you just raised all this money what do you need from a shark it's a really competitive market we need the partnership what are your sales 2020 sales were 100K 2021 sales were 25 million what you make any money on that we did we uh we were break even on that okay about 2022 what happened so 2022 we did over 5 million in sales make money on that we did not make money on that we lost 190k so where did all the money go was it just new equipment okay all right so salaries inventory distribution we did 5.2 gross in 2022 and then trade spend was about 16% to get to net sales 4 and a half so you're paying to get on the Shelf it's hard to do that because you're competing in a really mature Market popcorn totally so it's how do we stand apart right so it's all about distribution so right now we sell in Kroger the number one retailer in the country we're working with launching at all 2200 Albertson's banners so guys you left out 2023 plan for the is to do over 10 this year and so what do you think you'll end up on a free cash flow basis your investment bankers on that 10 million what's left over so uh the plan for the year is to burn about a million dollar in cash okay that says a lot about wrong answer no it's not the wrong answer right it just says a lot about their goal so if you're spending this way and you're willing to lose a million dollars on 10 12 million in sales you must have very big ambitions so what comes next yeah so we we do have big Ambitions we we really think we can grow this thing quickly that's kind of why we're here we need some help it's kind of a no to be here just be honest to open doors us you're at the point now where your sale speaks for themselves CU everybody sees all the reporting and so anybody who would be able to sell this in volume at retail just looks at the reports and say oh my goodness like a is moving up the charts we're interested so I mean is this just a commercial for you guys I mean is this just a commercial for you guys here's a good example so so at a big retailer like Kroger we've only been on shelf at Kroger in the last 15 months we've never gotten offshelf like about 70% of salty snacks are sold on display and on promotion so we need to get offshelf Steve you talked about big Ambitions we heard the 10 million what's the big ambition so we think we can do in 2024 about 30 million and then kind of go from there 50 and then potentially 80 uh the year after after that you're very very impressive I mean you definitely have the team to pull this off um the problem for me is 3 and a half% I don't get out of bed for 3 and a half% I don't even I'll do that deal and forget about it this journey isn't for me guys I'm out we appreciate it you let me share with you a happy story that turned out not so happy in the end right yeah I invested in a company called pipcorn when they had one snack now they have 68 phenomenally Successful by anyone's standard they have just just pass 70 million in sales I only invested $100,000 in that business I took 20% boy was I happy but with all their seed rounds with all the following rounds that happen I found my investment was shrinking up like crazy they're hoping to sell as I am hoping they s but what I want to say is you're going to need a hell of a lot more money than you think you need you're going to need millions of dollars to make it a home run by the time you get there you will have your investors watered down and you will be putting so much money in there I don't think I want to go on that long trip with you so I'll be out okay thank you Barbara apprciate thank you Barbara guys I can't fault you for anything I mean incredible growth incredible sales it's just not the reason I'm on sharktech I'm on shark thing to add value where I can help with people 3 and a half% doesn't interest me I wish you all the best I'm out and Mark we'd just like to say that we do think that this is a real return opportunity of many multiples tens of times your money back we're looking for a home run not we're not looking to hit a single and we're I think to Barbara's Point you're going to need more money it's going to be multiple rounds by the way I'm the tall good-looking one Robert marks on the other side thank you Robert well listen I'll take a flyer and give you an offer okay I will give you 3,000 I would go 72% if I'm non- dilutable I don't know if your other part I know if your other partners will Goot with I don't know if they'll go for this but I'm you know listen you want a shark for a reason you want a shark because of their cache and their connections and that means the shark has to work for you in a different way I don't have to explain what the non- dilutable Steve knows what just for the sake of those that don't understand it that means whatever happens in whatever future rounds financing you do Lori never goes below 7 half% equity and another term for it is called a ratchet because it really hurts but it keeps hert 7 and half% it doesn't hurt if they see the value in your shark there's another term for it crazy would you rather not do that and want a higher percent uh we're we're open to talking about it and let's yeah C we'd love to coun to hear we well why don't you counter before I give you a different Crea 7 half% but but dilutable we would say that we don't think we're going to need to raise again if we 10% and dilutable dilutable and dilutable we would say I think we would want um it might wind up in the same place anybody else be interested in joining at that [Music] 10% yeah we would be we would do that deal two vegan flavors yeah well Mark and I would do that deal for 10% you guys have a deal nice job congratulations thank you guys so much you're so excited next in the tank is a stylish alternative to boozy beverages bonjour sh my name is Melanie I'm the founder of Gia I was born and raised in Leon France and I now live in Los Angeles California I'm seeking $250,000 for 5% Equity stake in my company Gia sharks how many times have you wanted to take a night off of booze and the only option at the party was water how many times have you wanted to take a night off of drinking and being asked if you're sick or pregnant I'm here to take the word drinking back from alcohol that's why I created Gia Gia is delicious it's fresh bitter complex it has notes of Yuzu Rosemary juicy reing grapes and a sharp kick of citrus and it's non-alcoholic there's truly only good things in it AIA Spritz is the perfect accompaniment to any celebration without a hangover the next morning so how do you drink up you can mix it with your favorite bubbles or have one of our already made spritzes sharks who is ready to get over the influence with Gia wow how do we drink it I want to try it let's have one together okay so you can have one of our readymade spritzes this one is mixed with sparkling water this one is mixxed with our homemade ginger beer it's my personal favorite and lime and salt is our newest one oh wow that's really how many calories in this uh about 50 in the whole thing in the whole thing mie this is really nice I love this one the idea is that it's alcoholic amaru like an Italian drink you know akin to a Campari or that's what it reminds me of like a compari exactly um but an all natural version much lighter and you know exactly what's in it oh yeah nice it's got bits in it what do you sell each one of these four and what does it cost you to make yes so we actually just increase our prices and interestingly our sales have gone up um so our bottle now rils for $38 it has 10 to 12 servings in it and it cost us $65 to make our Spritz cost us $25 to make in 6 months that will be7 Cents Only and it retails for $5 let's talk about the business hopefully we're going to hear some great sales numbers last year was our first calendar year and we were 75% online because we were still kind of on a tail end of Co we made $2.5 million W what to be how did you sell that $25 million we just launched with an Instagram post it and it took off did you make any money on that 2 and A5 Million last year not yet but we invested very heavily into this year and we have a two how much did you year a little under a million dollar but we you lost a million put in well we have a million doll worth of inventory how much did you raise we had raised um $3.5 million and work W and we're currently raising $6.5 million who did you raate the valuation at 3 and A5 million raise um well the first uh 900 was a safe at um75 million first 900,000 that you raised pre-revenue it was everyone I had ever worked for I worked very hard the you know I worked for companies like sweet green and garer I worked at Goldman Sachs and the people that had seen my work before how much do you still own of the business I still own 57% of the business after this $6.5 million round wow that's what valuation is a $65 million round debt it's a $35 million pre-money valuation what holy so 41 by our numberers 41 million cuz that's pre-money versus post money 41 million what sales going to be this year 4 and a half doubling next year we have a wait I need an alcoholic drink are you kidding and Melanie why are you offering us 250,000 for 5% and if I did the numbers you're giving us a 5 million valuation today like I I I'm just trying to understand that conversation with the people you're pitching it to at 40 million and then telling them you're giving it to us at five yes well you know this Equity is directly coming out of my shares which is smart good for you I I want someone to come in and help me build this into a huge business we launched in the depths of the pandemic so we've already overcome you know a lot of hurdles um currently we're sold in 750 accounts I personally reached out to at least 400 of these accounts myself on Instagram during 2020 there was no other way and I said hey like I'm making this drink your Chef I really admire I would love to send you a bottle we please try it and give me feedback I really believe non-alcoholic drinks are the future and every restaurant in a few years will have non-alcoholic menus and I really hope that you'll join me on this adventure Here's my thought about this so I I um I think you're super impressive to raise that amount of money and you're one of the few that came in to show us the value that we add but I unfortunately can't drink this I have acid reflux I I want to be in this but I can't cuz I don't I can't drink this stuff so I'm out well thank you very much listen Melanie you are amazing for me when I invest in something I have to be able to partake in it and unfortunately Damon and I have something similar I cannot eat citrus or bitter things it just affects me and I'm just so sorry about that because I love you I wish you good luck but unfortunately I'm out thank you Lori Melanie the category you chose is one of the hardest ever because it's either expensive to ship them it's expensive to store them it's expensive to get shelf space for them and to keep it getting to 50 Mill ion in sales to really have an impact is going to cost you 50 to100 million and so for those reasons amount thank you very much look Mark's right you've somehow picked the hardest category to get into and you're killing it Melanie I'll give you the 250,000 and I'll give it to you for the 5% that's my offer do we have a deal wait you you may get an offer from someone who's actually in this business you're in the wine business I sure am cuz you know there's no alcohol in this you want to hear my offer or not going to get a second off I I don't want to argue I don't want to negotiate against other people I'm making a bet on you I'll give you 250,000 for exactly what you asked for if you don't want that offer I'm happy to step out and you can negotiate with Kevin I feel like it's not fair not to hear everyone out I think that's reasonable is that okay you may not like my off melie I'm out ouch I'm giving you exactly what you asked for he's right Melanie he's right I mean at a certain point you got to decide as entrepreneur why did you come here because I think if someone comes in here and I give them exactly what they're looking for and then they want to hear more I'm not sure where that conversation's going so all due respect I wish you all the best good luck thank you so my offer isn't going to change because is what happened here absolutely so I know what I'm worth I also know that I'm in this business and I also know this category and everybody's talking about how difficult it is and they're right but I'm not doing it for 5% I'm too valuable I want 10% oh your valuation just got crushed because I have to get up in the morning and work on this I you can moan and Gran all you want have another drink I'm sorry deal I'm the only shark that is Chef wonderful and Mr Wonderful that's my that's why you should give her you know a million can say anything you want you're out what do you think Melanie that's true I'm not in a position to accept an offer like that without doing wrong to the people that have support from the beginning so I un stock it's not she has 57 that puts her under 50 under she can do whatever she wants you knew that already Kevin I'm doing it for 10% I'm honored but I can't accept it good for you Melanie thank you Melanie good luck Melanie thank you so much good luck good luck [Music] bye I walked away without a deal I you know I feel like it was fair to hear everyone out and I took the risk and um I don't know if Robert will regret backing out of that offer but you know I hope he lets other people speak in the future I think she made a mistake Robert she should have taken your offer made a big mistake rule number one in sales when you get the order Robert what does ABC stand for always be closing and rule number two in business never trust [Music] Kevin for