Mark Cuban Makes The Largest Offer In Shark Tank HISTORY To Coffee Meets Bagel | Shark Tank US

hi my room I'm Darwin I'm Sue and we're the king sisters from San Francisco California they smell really good it's French lavender wow that's amazing the three of us were born and raised in Korea and when we were teenagers we immigrated to America I went to Stanford Business School and I went to Harvard Business School and I went to Parsons full of design our dad sacrificed so much to send three of us to school in the U.S financially he had to work all the time and the fact that he had to just let his daughters go at such a young age I think that was really hard for them how was your day it takes me but he's not asking me on a second date yeah one day at lunch we were discussing a common problem and came up with a solution in the tech space that could really work we quit our high-paid job and moved to San Francisco and we just started our own business let's talk about our upcoming marketing initiative we believe we have something very big on our hands something that can potentially change lives without the money from the Sharks we won't be able to execute on our growth plan not to mention to disappoint our family after all that they have sacrificed [Music] hello my name is Arun Taiwan and Sue and we're the king sisters from San Francisco today we're raising five hundred thousand dollars in exchange for five percent equity in our company coffee meets Bagel is here to profoundly change how people discover and fall in love sharks I know what you're thinking it's another dating site we all know online dating sucks why because it treats people as a piece of information you search for from a huge database people want to go back to time of happenstance where you just stumble upon someone special maybe through a friend that's why we created coffee meets Bagel we took the proven concept of daily flash sale sites immersed it with social networking elements to create the highest quality dating service for singles here is how it works every day at noon we create one perfect match who is a friend of a friend you have a 24 hours to review their profile information and choose to like or pass on the match Mutual like leads to a private chat line that expires in seven days the secret to success in online dating is winning over women single women are tired of signing up for dating websites only to get hit on by creepy strangers bombarding them with disgusting messages and that is why women love coffee meets Bagel since our national launch we've been growing a double digits monthly and now with your help and investment we can help singles all around the world so sharks who's going to be our perfect match so it's very interesting what does the bagel got to do with it let's just be honest there's still a little bit of stigma with online dating so our customers actually love the fact that our name doesn't seem to you know do anything to do with dating service when they talk about it nobody really knows what they're talking about hey hey everything bagel today today I got a stale Bagel today it's like a code for them oh that's cool so tell us about your business model our core service is free but there's premium features that you can unlock using virtual currency in the form of coffee beans like what one of the most popular items we have is called open sesame we actually tell you how many mutual friends you have between you and your match we don't tell you who they are what good is that well you buy it it's a mystery a lot of people want to know how am I connected to this person and how much do I pay for the coffee beans each Bean is equivalent to about two cents but open sesame for example it's 95 beans do both parties have to like each other to be a match exactly so this has to be a mutual consent and how do you curate so we have a proprietary machine learning algorithm that takes into consideration all the users data and we require all users to sign up through Facebook so instantly from day one we can learn a lot about the user including their friends but you only source from Facebook you don't use a questionnaire don't you do any of that right now so it literally takes like less than a minute to sign the idea is you don't have to make someone go through the application process exactly the most important question have you met the man of your dreams so um I am yours married with the guy that she met long long time ago I met my current boyfriend on coffee meets Bagel you see the picture of the two of us on the wall I'm meeting a lot of you know interesting people through coffee mix bagels and I'm still looking all right how many users so right now we have several hundred thousand users our business really ramped up about 200 000 or a 700 000. so it's between one and five why just tell us what it is you want an investment you can't not tell us yes but I think that's a good range it gives you a good idea no it doesn't no but why won't you give us the actual number we're actually not sharing the exact user number right now okay I'm out well you gotta share that are you kidding okay what were your sales so last year we made eighty seven thousand dollars but get this this year in the first five months we made 270 000 wow so it's growing very quickly forecast for this calendar year all in at this current rate we will make a million next year we aim to make 10 million dollars all right the million dollars in sales what will you make what's your profit so right now our profit is negative spend a lot of money salaries to pay our developers and do you guys take a salary today right now we take hundred thousand dollar salary each year sorry you take a hundred so three hundred thousand dollars you're drawing out of the business right a year a year a year but that is still a significant pay cut for all of us whatever we're making prior we actually raised 2.8 million dollars in external funding so far wow our notable investor actually is of one of the co-founders of match.com who absolutely love their idea and he was our very first investor on the million dollars how much would you lose this year we'll lose a million dollars you'll lose a million dollars on a million dollars in sales yes which is why we actually have to raise more money because we're trying to ramp up our growth you're projecting 10 million dollars for the second year exactly how much money will you make on that 10 million we will break even on 10 million you'll break even let's go let it go let it go and here's why we plan to bring on about 4 million users next year who's going to generate about 2.50 cents each hence the 10 million and what's your customer acquisition cost 30 cents next year we plan on spending about three to four million dollars on marketing spending and acquire 4 million users so we are assuming a slight increase in customer acquisition costs you know you're an All or Nothing play what do you think for All or Nothing because you're losing so much money you're not really into building a business game you're in the raising money and getting users game I think you've got to hit a home run not saying you're not going to but it's risky I know it is our decision to invest more and accelerate growth but we can't just as well just grow this business as a fascinating dilemma because I hear where you're coming from the Baseline model works you want to pour gasoline on that fire exactly it's a pretty big bet and and while I'm doing it I part with 500 000 and I get five percent one of the problems for me now in Shark Tank in season six is I've come to realize I'm really valuable big time and it's made me very greedy I don't do five percent deals that's worthless to me I wouldn't do this I'm out if we really thought this was all or nothing we would have raised a lot more money from the beginning now we actually have a choice of just growing the business traditionally or raise more money to make this big you've raised a lot of money you're not making money and you're each drawing a hundred thousand dollars that's three hundred thousand dollars out of the business that seems very high salary I mean most people don't make anywhere near that and you're just growing big concern I have also is the fact that somebody else could do this people are knocking off everybody on the internet all the time so for that reason I'm out I think one thing for sure is you're great at raising money thank you I also think this is a site that's needed I think the women I know that have been on the typical website feel like a piece of meat and a meat locker exactly looked over they don't you know it's almost insulting yes this is a site that gives women a little bit more control and I like all of that but I'll tell you what I don't like the break even at 10 million a break even and I'm only only five percent of the stock that's spooky doesn't seem like enough upside for the enormous risk I'd be taking so for those reasons amount thank you let me ask you a question if I offered you 30 million dollars for the company would you take it [Music] all five sharks are out but Mark Cuban has just made the largest offer in Shark Tank history let me ask you a question if I offered you 30 million dollars for the company would you take it [Music] foreign I would not be taking it because we see we see this business going growing as big as Match.com and you know how much revenue they're generating 800 million a year they're becoming a billion dollar Revenue company and we think this model and the product has potential to be as big as match he offered you 30 million dollars and you didn't even Flinch she should feel confident it's a newer ephemeral version of Hot or Not which is brilliant but I don't know how protectable that is well I give you total credit and I think you guys have done some brilliant things I don't think the risk reward is there for me and for those Reasons I'm still out good luck thank you excellent presentation what they say like in dating never settled while 30 million dollars may sound like a lot of money you ain't Mr Mark Cuban because this baby is going to explode

Channel: Shark Tank Global

Views: 3,051,510

Keywords: Shark Tank, Shark Tank US, Shark Tank Australia, Kevin O’Leary, Barbara Corcoran, Daymond John, Robert Herjavec, Mark Cuban, Lori Greiner, Dragons’ Den, Money Tigers, Entrepreneurship, investment, reality tv, COFFEe meets, coffee meets bagel shark tank, coffee meets bagel, coffee meets bagel shark tank offer, coffee meets bagel dating app, coffee meets bagel mark cuban, shark tank largest offer, shark tank largest, shark tank largest valuation, shark tank biggest deals

Id: vuQOI4It294

Length: 12min 10sec (730 seconds)

Published: Mon Oct 24 2022