[Music] First into the tank is a product to Ensure you always know who's at your Front door [Music] Who's there it's Jamie Here to pitch who it's Jamie come in Thank you [Music] Wouldn't have been nice to know who was Behind the door before you let me in if My product you can my name is Jamie Simenov I'm from Los Angeles California My product is the doorbot I'm seeking Seven hundred thousand dollars for a 10 Stake in the company Consumers are currently spending Billions of dollars outfitting their Homes with products that work with Smartphones however one of the most Ubiquitous Technologies Doorbell it's not changed since it was Invented in 1880 until now introducing The doorbot the first ever video Doorbell built for the smartphone with Doorbot you can see and speak with Visitors from anywhere but I didn't Invent doorbot just to make our lives More convenient it also adds needed Security let me show you Mark Just say this is your house in Dallas You'll see on the screen here that I'm Projecting the door but app for my
Smartphone to make it easier to see the Demo now just like a regular call when Someone Rings the doorbot You can see them in decline if it's a Someone that you don't want to talk to Or accept and say hello to your visitor Think of it as caller ID for your front Door [Music] Hey Mark it's your good friend Mr Wonderful I wanted to have you join me on this Deal with doorbot I think we can get Them to go all royalties and no equity Mark we know that no real entrepreneur Is going to accept that deal and now you Can tell Mr Wonderful to scram and the Best thing is you can do it without Having to be face to face with them now Sharks Join me and the next time you hear It'll be Now who wants me first to ring my bell Jamie what if you hit accept you hit Accept then the light goes blue and then You can talk to them so your voice comes Out of it your voice comes out of it It's got a microphone and speaker so It's two-way audio one-way video if Someone came up and said um eyeball There can they just take it off because All burglars ring the doorbell first Yeah you know what though Mark that's Actually true burglars are not usually
Violent criminals they wanted to see if Someone's home they want the opportunity To go into a house that's not that does Not have people in it so it's actually True people do ring the doorbell it's Very hard to remove and we also have Offered that any customer that has one Stolen we will replace it for free of Charge and how much does each one of These units sell for 199 dollars What are your costs to make it uh 81.83 Is our cost landed in our warehouse in The United States and you sell it to Retailers so far we've only sold Direct On our own online store uh we are Launching with our first retailer in November uh which is Staples we launched Nine months ago we've done uh in Aggregate a million dollars in sales so Far good for you and you've done a Million dollars so far wow and the last Month we've done 250 000 in sales our Sales have grown month over month all Online Jamie all online all direct do You have any competitors currently do we Do not have any direct competitors when I say direct we are the first video Doorbell built for the smartphone now There are other video doorbells out There that go to a panel it's not Two-way so you don't have communication From that you can just see who's there Competition costs the lowest price Camera would be you know 50 to 100 up to
Thousands of dollars for somebody Systems but we're not trying to compete With the hundred thousand dollar systems That integrate cameras and everything in Your home that's that that's me it's a Totally different Market That market to give that to everybody The nor to give it to my wife who's at Home who's in the bedroom with my Five-year-old I'm away and at eight O'clock at night and it's dark out Someone knocks on the door I like the product but are there bigger Solutions that can come in and kind of Push this out the door this category Will exist I mean the doorbell will stay There it doesn't get trumped by Technology There's a thousand different ways to Alert what business is not going to get Replaced by Future technology but here's It's about being able to be nimble and Actually be part of that change I'm Going to jump in here I think that you have potential Bench but I'm not connecting to that This does enough at this time to Distinguish itself is different from What else is out there on the market for The higher price point and so for that Reason I'm up We're not comparing ourselves to a a Cheap video doorbell that has a little Tiny no one's arguing the quality of the
Product I like it I think you're going To do great with it but I've got to be Able to say you know what when I jump in I've got to add enough value that this Company still being worth 7 million Could be worth 80 million 90 million I Just don't see that progression and for That reason I'm out When I when I look at businesses I look At the three tiers that get hit luxury Mid-tier and lower tier and obviously we Understand the luxury Market where we Have the 20 and 30 000 systems and all That type of stuff that's not for that The mid tier is the adts of the world That most likely will just add this to Their services in some sense I I'm wrestling with where this goes in The market I just don't think it's for me I'm out Personally I'm a security guy so the Idea of having another access point at On my house like that freaks me out a Little bit because all those ADT and all Those other ones are hardwired I can't Hack into those right so I think you've Priced a lot of value into it but I Think my real struggle with this It's really not an internet play it's a Consumer device but you're pricing out 199 dollars that's that price point is Going to start dropping quickly as your Volumes go up for that reason than that Sorry about that don't send them to my
House it's just it's just you and you Now Jamie let's take stock what's happened Here you made a few jokes about Mr Wonderful at the beginning and about the Royalty structure am I gonna regret that Mr Wonderful [Music] The only person left is Mr Wonderful I'll make you an offer [Music] I'll give you seven hundred thousand Dollars I want a 10 royalty That drops down to seven after I recoup The seven hundred thousand and I get Five percent of the company's equity [Music] You know we we have a vision I think to Build a a big company out of this and I Can't give 10 someone 10 of all of our Sales because it'll bleed us of cash While we really need it the most I'm Basically providing you factoring Capital you need my 700 000 for Inventory but but respectfully I can Raise that money through Venture debt or Line of credit or something else so then Why it's not the kind of why don't you Counter me with a venture debt off So I would do seven hundred thousand Dollars for a 10 interest rate With a three percent equity kicker No I'm not interested that doesn't it Doesn't it's not commensurate at the
Risk I'm taking honestly I do appreciate The offer but at the same time that Money that you'll be taking on the Royalty I need to reinvest back in this Business what's the difference between The interest and the royalty the Interest is cheaper the interest I can Get rid of I can pay you back so you Don't like the the royalty and Perpetuity asset absolutely if I took The risk up front I believed in you the Only shark I might add that did seven Hundred thousand is a lot of money it is A lot of money it's a lot of money [Music] Okay Jamie it's that moment when I say You're dead to me Because you don't want to take my offer I made you a very valid offer I think Under circumstances Respectfully Mr Wonderful We're going to decline Go kick some ass Jamie thank you very Much sharks [Music] Wavering there was there a moment where He actually considered it I would have Done that to you whatever happened to Peeking through the window and saying go Away Mr Wonderful gave us an offer for just Royalties on the company and I don't Believe you can build a big company Having one person take 10 of the sales
For Life Next Up are entrepreneurs with What they believe is a better version of A common wardrobe staple [Music] Yeah Hi sharks I'm David and I'm Randy our Company is bombas and we're here today Seeking two hundred thousand dollars in Exchange for a five percent 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 stock 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 bombus 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 [Music] Thank you sure as well there you go do I Get these those two these two are for
You sure Thank you sir appreciate it 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 invisito in the midfoot Area we created our proprietary Honeycomb arch support system and added Our Ultra comfortable performance Footbed 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 multi-packs all the way up To your 18 to 22 dollar Niche athletic Running stocks 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 Nine dollar price point and on that nine Dollar price point we're still able to Donate a pair for every pair of purchase A two of 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 Because on the Goodwill that you're Putting out what's your wholesale we Sell exclusively online what are your Sales to date and when did you first Start so we first started in October of Last year and in the in the nine 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 dollars 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 Put in 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 nine hundred thousand Dollars in outside funding what value uh Four million dollar valuation guys why Are you worth four million dollars well It's worth what people will pay you for
It you can get bozos or you can get me You get both with the Godfather of bozos Right here Guys the four million dollar 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 I Think if you can raise if you can raise Any company any company you gotta 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 take 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 stand-alone 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 okay 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 three to Five thousand dollars a day to build our Baseline yeah That's not a good answer for me I don't Think you've done a good job of telling Me what it's going to look like and what The key Advantage is going forward I'm Out Great Stockton thank you Before all the sharks are out you want To change your valuation metrics or open Offers if you guys want to oh 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 too 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 is 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 Toms
They're very high margin much higher Dollar items a nine dollar sock when It's all said and done with a five Dollar 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 much 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 hard to slowly 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 You think you should do that or are you Going to go down with these 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 two hundred thousand Dollars at 10 that gives you a two Million dollar valuation that cuts our Evaluation in half but we think you can
Bring a ton of value to this 200 000 for ten percent is your counter So you cut the valuation in half down For four million to two million Specifically for Damon well it's only a Damon John deal I mean it is To say that he doesn't bring value to You know an immense amount of value so Guys I was about to be out what I like That valuation only because it looks Like you do want to get to work 200 000 for 20 percent Very sobering to hear reality strike Very and 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 two hundred Thousand for twenty percent 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 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 mark and Everything else because that's a black Hole of advertising sure so um I will Finance the inventory So our counter to that would be two Hundred thousand dollars at fifteen Percent with a two hundred thousand Dollar line of credit It's not 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 and A half percent That's it no line of credit I'm Financing 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 The 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 this All right You have a deal Thank you thank you all right guys great Decision great decision that's a great Decision thank you thank you
Congratulations You can thank me now hey thank Mr Wonderful It's a surreal moment I mean we've been Building this brand building this Company and now to have Damon as a shark Backing bombas means that the company is Validated for us in a new way First into the Shark Tank is Aaron Krauss who believes his product will Make everyday cleaning easier 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 that it completely changes its Texture by just adjusting your water Temperature let me show you how that Works Here I got some hot water here I've got Some cold water when I immerse the scrub Daddies in the hot and cold water a Complete transformation occurs now to Show you that I've got 10 pound weights Here under the 10 pounds 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
Turned on Brown and gravy tomato sauce Cheese and mustard onto a glass stove Top and a stainless steel pan I'm gonna Take the Scrub Daddy and you're gonna See it's just gonna attack right into That burned on Nest 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 dye is not really smiling anymore So I'm going to put them here in the Warm water in just a couple seconds [Music] 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 smiley Mouth that clean spoons knives Forks Spatulas even large serving spoons on Both sides at the same time Sharks with your help scrub that will be Scrubbing and smiling in every Kitchen In the world Wow wow grub 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 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 a hundred Thousand dollars Only in four 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 hundred thousand dollars 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 two dollars and eighty cents Wholesale wholesale this needs to be in Every Supermarket drugstore Walgreens so
Expensive Mrs slabinski goes to the Store and picks us off the shelf and Says hey it's a piece of fun with the Smiley face on this cost two cents to Make in China that's what she's thinking There's a Brillo pad which is Traditional product is what a 20 20 You're comparing it to the lowest end of The lowest end you take it up to the Highest end talk about the the ones like Dobby pads or other pads out there that Are you know brand new 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 that Difference 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 everything End caps you're gonna have to pay for Those things It's hard to get them even if you pay For them great job today but I don't see The retail Vision I'm out I understand I like the product I think you're doing Great things you're doing it the exact Right way But when I hear QVC no disrespect to Laurie when a company's sales are Completely dependent on QVC that's a
Disaster waiting to happen 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 There's 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'm not doubting the scrub Market I'm Not down and you are the Scrub Daddy but I'm not a scrub pimp so I'm out That hurts Mark I wanted to work with You so bad our QVC does over 8 billion In sales a year and I've done over 500 Million 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 [Music] A hundred thousand for fifty percent [Laughter] Let's start the bidding there All right you're out You know I'm somewhere you can paint any Picture and I think that Laurie 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 Fifty thousand dollars
For 15 if you can raise the rest from Lori and if she wants to do business With me 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 A hundred thousand dollars for thirty Percent 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 [Music] I'll tell you what I'll do for you I'll Give you a hundred thousand dollars We'll never agree on what percentage I Should get we're going to change the Model completely you're going to keep The whole company But I want to be your financier 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 If you just want 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 a hundred and fifty thousand Dollars
But 25 percent What are you gonna do I'm changing my Offer actually A hundred thousand dollars but for Twenty five percent 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 The sponge you're selling this thing out And it's gonna cry it won't be happy Anymore 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 We've heard that already I want to Answer 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 supposed to Talk where is he going to take you it Doesn't matter it does matter because 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 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 is Okay I like to write a second can you
Speak and it's saying Lori go with Kevin Aaron there are like Children up here it's awful let's recap Yeah let's recap please 150 000 for 25 Okay from Damon Kevin a hundred thousand Dollars for no percent and a tiny tithe Of 10 cents you keep all the equity Lori Is offering you a hundred thousand for 25 I offered 150 last time whoa I didn't Hear that 100 Laurie 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 Up to 175 yeah mine just went to two Whoa [Music] The news is I just made you an extra hundred Thousand I'm out I win this ticket to her Ouch 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 five cents Seven and a half to deal Okay Aaron you've got two offers on the Table What are you gonna 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 Good way to go Aaron Congratulations You are dead to me and the sponges did Thanks guys Scrub Daddy you suck That is awesome got a deal Glory 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 Gangbuster huge hit in infomercial good Deal Lori it's a great deal
