Shark Tank US | Top 3 Pitches That Were Offered $1M or More!

next into the tank are entrepreneurs with a business profiting from competitive thrill seekers [Music] greetings sharks my name is brad scudder and i'm rob dickens we're from boston massachusetts our company is rugged races and we're seeking 1 million dollars for 10 of our company so what is rugged races we operate a popular 5k obstacle course race series in 20 cities across the country called rugged maniac at our events participants of all ages all genders all shapes and sizes will complete a challenging running course featuring 25 epic obstacles but these aren't the pop-up kitty obstacles you'll see at our competitors events at rugged maniac participants will climb over towers and shipping containers rock it down in 100 foot water slides crawl through tunnels of mud and even jump over fire all while running through a combination of forests fields ski slopes and even motocross tracks in short rugged mania extracts the perfect balance between fun and physicality with our award-winning courses and our day-long festival so which one of you sharks is ready to get rugged with us and just to show you what we're all about we've got this video clip right here wow i didn't even know you existed but i know about your competitor me like tough mudder how are you different than that we're different in this sense basically tough mudder is a 12 mile course right with about 20 obstacles we have 25 obstacles over three miles so it's more about the obstacles and less about the running and being a three-mile course it's much more accessible to the general public than something like a 12-mile crash are you saying this is a tamer version of that something the barber would do oh i could handle the 12 miles it's this little short guy over here that wouldn't have a shot we get people of all shapes and sizes at our events truly from 77 year old guys to uh you know mother daughter teams 14 year old and up is it more workout or more party we think we strike an excellent balance between the workout and the party because it's a shorter race it takes you know an average an hour a little bit more to finish people are are exhausted but they're still exhilarating do people bring alcohol no would you sell no yes we sell alcohol alcohol outdoor festival pump piled puke right yeah it's a greatest fun it's a fun event so what are sales going to be this year this year 4.2 million wow how many courses 20 cities nationwide how much out of the 4.2 did you profit million dollars but next year without investment we're projecting 6.5 million in revenue 2.2 million profits talk about the industry there's some monsters out there sure you know what's the difference so basically you've got you got two kind of at the top the warrior dash 5k tough mudder 12 mile and why have they gotten so much bigger than you guys first movers in the market and how big are they rob how big are they they have like 40 or 45 events if any trimmers are revving you take a guess how big would they think they're about 30 million so would you guys say this industry is about 100 million a year much larger more than that rob what what are you gonna do with the one million we've uh we've taken that money and invested it in other brands that we own um what uh so wait wait wait wait wait wait wait no no what are we gonna do with the one million dollars that we would get from you yeah what million were you talking about brad i thought you want to know what we did with our profits yeah well we want to know about that all right what did you do with the one million in profit let me show you exactly what we've done with that other month okay let's see let's see here it is [Music] oh you guys are doing these things it's so stupid that's a great idea rob explain to me what i saw you saw running with the bulls okay here in the u.s anybody get hurt we had some minor injuries a couple of concussions a broken arm the injury rate people paid for this oh yeah about the same prices as rugged maniac about 50 but is that part of this deal it's a separate company have you ever seen the show greedy pigs i give you a million dollars i don't i don't get to wet my beak on the bull deal no of course we got you guys kidding i give you a chance to change your mind okay you would want more money if you get involved so the bull run is is a separate entity all right why don't we entertain it how much more would it be three million dollars for 10 of the bull run two million for the bull and one million for the rugged yeah so three million bucks gets ten percent of both yeah brad what are the sales in the second company 280 000 at the first event do you realize that your expertise is not rugged maniac your expertise isn't putting on adventure events the bull run is just another variant of this same thing that's exactly right and so the growth potential with this company is not just within rugged mainic guys what's the cash flow going to be next year in under your optimistic scenario for both companies we think there could be a 20 million event this year guys i like the business but if i come in and give you money and all of a sudden it's like where's brian and rob oh they're chasing the bulls right what am i going to say to you as an investor when i'm not getting your full attention i want a piece of the bulls no kidding no that's not what i'm going to say i'm going to say they can die right i want to return to my investments or i'm suing your ass because you have a conflict of interest no investor says oh the existing business is dying sell me a piece of the new one well you don't do that to investors you align your interest with them a hundred percent when you start talking about a million dollars you don't screw around right that's a real investment the other the element for me i love the idea i also really love the fact that you're building a customer base for the other events that you can hold later on for me they're together here's an offer for you sure both businesses combined i'll give you 1.5 million for 25 of the entire thing okay is that the only offer that we have mark you said you were interested no i'm very i love the one business if if i didn't know about this other business i'd probably make an offer right now sure right but i want to hear what you say to rob i think i'm giving you an offer i think the business is worth what six times ebitda 1.5 times revenue roughly right and i'm pricing in i think that's generous i'm pricing it in because i see the upside in the other business okay asking for one million dollars for this business who's already challenging having another agenda and another business on the other side my gut feeling is my instinct is that no matter what i would be screwed working with you i wouldn't trust you i'm out okay thank you for your consideration you know a funny thing happened to me watching you here today uh you came out here i thought what good looking guys man they look the part what a great video but then somewhere along the way the surprise of the bulls and oh yeah we'll wrap that into the deal and i don't think maybe you intended it that way but for some reason you lost my trust but either way i'm not sorry to hear that but we thank you for each consideration well guys you have you have uh we have an offer one you have an offer on the table yes we do what are you going to do an offer that's lower than what we had wanted but no let me make you an offer higher than what you want well yeah of course anyone else want to throw an offer in the ring i'm still listening well mark your concern is that are you you want us to focus all our energies on no no it's not that you came in and you tried to sell us one business and you separated the two you're overvaluing the other business in my opinion and if you have such an uh high opinion of that business that's probably where a lot of your attention is going to be and as an investor i don't think it's worth the value that you're assigning to it because you've had one event for two hundred thousand dollars mark are you saying my value's too high yes [Music] wow now mark's making me nervous about am i over hey 1.5 million 25 that gives you about a 6 million value for the combined businesses the longer we wait the the less comfortable i'm starting to feel let me uh cloudy the waters a little bit here and maybe give you a hang on robert you may want to hear this i think your offer should be for 33 a third to become a third partner with these guys and then i'd go in 50 50 with you hmm i'm good with that i like going up to one-third 1.5 million for one-third of the combined businesses i'm with you uncle kevin yeah i thought you might be because i think you did overpay rob isn't it interesting what's happened you had an offer at here now we're here sure the longer we stay here [Music] so what i would be willing to do is 1.5 million but it's for 25 of the two companies combined okay we're going to go discuss this consider both offers and come [Music] i back there's a lot of benefit here to partnering with these guys i'm not sure what there is to discuss mark you made a better offer than we did yeah mark made the same as your initial the challenge is when they come back do you drop this dead weight right here and go back to your initial offer then you're over pain i don't think they're going to take either offer oh i think they will [Music] okay gentlemen let's summarize what's happened here you have two distinct offers the first mr cuban is for 1.5 million for 25 of your company which by the way was the exact same offer i made and then he spent half an hour telling you how bad your business is i know i know the other offer is for the same amount of money for 33 and a third of your business what are you going to do we went out there and discussed it we'd like to eventually strike a deal with you we wanted to come back in and say listen we do 2 million for for the 25 instead of doing that we'd like to split it in the middle and go 1.75 deal deal wait time gonna work absolutely we'll make some money will you lose out but robert why do we do that well thank you for your consideration thanks guys thank you fired up we are very excited we took that offer from mark because we realize that mark offers more than just money mark offers his experience he offers his connections you know only great things can come from well done 1.75 for 25 i'm actually surprised that they came down [Music] next up is a stylish way to relax [Music] hi i'm rachel and i'm the chief enthusiasm officer and i'm joe and i'm the chief relaxation officer we're seeking 400 000 in exchange for seven percent of our company wow between the emails popping up in your inbox 24-hour news blaring from every screen and constant pinging interruptions from your smartphone we're all feeling more overwhelmed and stressed out than ever we're all sick of feeling busy hectic and rushed and our solution to this frustration is not another app or gadget our solution is the world's most ridiculously comfy hammock introducing yellow leaf hammocks at yellow leaf hammocks we've perfected the hammock for the modern consumer we've conquered every obstacle from creating a cocoon-like no wobble design to a shockingly soft yard so you won't get a rope burn when you're trying to relax and they're completely weather safe now we're breaking the boundaries of relaxation with our new invention the hammock throne the hammock throne is an indoor outdoor hammock chair that makes it possible to relax absolutely anywhere with the hammock throne you have a gorgeous piece of furniture that you can put out in your living room on your tiny balcony or even in your office it extends back to create a full length hammock large enough for a seven foot person all within a diameter of just three and a half feet wow and it swivels 360 degrees so you can angle while you watch shark tank first we perfected the hammock now we've brought it into your living room so sharks who wants to make the world a better place and join us in our quest to build a relaxation empire so on the tables in front of you are specially selected hammocks oh uh if you open these up and first thing you want to look at the label they're all signed by the woman who made it um we're social enterprise i like that yeah they're all where do you make them we work with moms in rural thailand to create high-wage jobs what do they cost what do you sell them for the ones that we just gave you guys are a classic double it's our top selling size they retail for 1.99 that's not bad our current line ranges between 149 and 299. the 199 hammock how much do you pay for it 44 is our land cost so what is an average hammock made out of something like this what is that you can find a hammock for thirty dollars on amazon to be perfectly honest it's not gonna be 100 it's not gonna feel like this it's not gonna look like rachel how much is the contraption so this is the brand new hammock throne this is our high-end hanging solution that we've just introduced that's your product you made this yeah i did um so this one is somewhere in the neighborhood of 2200 yeah whoa wow but it's an indoor piece of furniture see that seems like a lot tell us the story of how you got started by india our inspiration to start this was to literally end poverty in really vulnerable communities in the developing world the idea for the company started when i initially went on a backpacking trip across southeast asia without me we were living together in boston at the time and i stumbled across a hammock on a remote island and i was immediately struck by how soft it was i was really impressed with the quality and i started asking some questions and learned that it was woven by this hilltribe community it was part of an economic development program to help this whole tribe group out of poverty and i was really struck by that in thailand so i went to this community and i got to meet the actual weavers and hear their stories and i learned that this community that started making the hammocks with the help of an aid worker had been previously in debt slavery and the thing that really struck me was a lot of people kept coming to this community asking to join the program but they were being turned away because there weren't enough sales and i thought well we can start a little hammock company and you know provide enough jobs in this region so it came home with a backpack stuff full of hammocks and i came home to rachel i was thrilled that my boyfriend wanted to quit his finance job and start a hammock company as you can imagine what are your sales this year we're going to hit 1.3 million wow last year we did 860 000 your sales are primarily online it's about 50 50 between a combination of direct to consumer sales to our website as well as strategic partnerships a big part of our early wholesale was kind of scatter shot patio stores we took a step back from that to focus on strategic partnerships who uh it's virgin voyages which is virgin's new cruise line business so virgin voyages will be putting yellow leaf hammocks in every single balcony of every single cabin what price do you get from them for these they they pay our wholesale price but they'll also be um retailing them so they'll we'll be on the room service menus in the on in the cabin and on the stores the retail store is projected to more than double our current business so you've got to be profitable then right last year on uh 860 000 in revenue our uh net income was 110 000. after paying yourself after paying ourselves yeah john rachel yes here's my offer bam i wrote the five sharks here i probably have the most credentials about building social impactful businesses so i understand the challenges you're facing i really love a lot of what you stand for but you have a hundred thousand dollar profit with a crazy 5.7 million dollar evaluation so my offer is as follows and it's an explosive offer i want 33 percent of the company that will give you 1 million say yes or no and then it's done wow one million dollars you you mentioned our profitability on last year i want to mention our profitability on this year and yeah but that's a little fair to us right and i think you would cause the order so on the 1.3 million that we're doing uh this year we're doing 360 000 in profit one of the biggest things that we're looking to do with this money is we have a huge product roadmap of solutions rachel so we started here and take the deal he's paying you over here that might be another one for you that's an amazing offer we also recognize that we might not need all of that money right now what are you doing all right well hey hey we don't need all the [Applause] well listen he just said maybe he doesn't need all that much money so i will give you an offer i'll go 400 000 for 20 now granted his might be better offer for you a million dollars for the 25 and both of you i don't want to go to the million about 500 000 for 25 no that that was your counter for 25 600 000 for 14 oh wow i love the idea and i think you guys are the real deal thank you i will give you the 400 000 for 15 if you take the million dollars from me you won't need to dilute yourselves again you know how much money kind has raised in its entire lifetime for the business the total we ever raised in our entire history was 5.2 million dollars and we we sell over a billion dollars in sales i'll teach you and i'll help you run the business in an efficient way are you okay with 33 or is that too much for you i think it's too much because that's the maximum that you're willing to do for someone that's going to really roll up their sleeves and help you we're looking at the future if you took 33 now i worry that we would it would hurt us at a subsequent round when we grow what's subsequent when i started my business started with one product i took out a bank loan it was about 325 000 i paid it back within a year and i never had to take a loan or bring in an investor again so listen i don't think you need to just sit there and take on all these investors and take in a whole ton of money you just need to be strategically smart and taking the right investor but you need something that's the bottom line so i'm going to change my offer my offer is this i'm going to go 200 000 flat then i'm going to give you a loan of 200 000 at seven percent i'm going to fund purchase orders if you need them and i'm going to ask for seventeen percent i just offered you 400 000 for 15 percent that i can offer is is i can offer somebody who will hold your hand take you down the road do everything that you need i care about helping women i care about helping environment i care about helping the world and i really like the two of you so i care about you i love the two of you corey thank you so much we love you guys we're making it hard on them what's the minimum percentage on what dollar do you want focus joe what do you do one million dollars for 25 [Music] just because i love you [Music] we're going to change some lives i never thought he'd go down it's never happened before in shark tank history when someone came in here for 400 000 and walked out with a million i'm really excited to work with you and make a huge difference i'm so thrilled thank you congrats next into the tank is an entrepreneur who believes there's big money to be made from big scares [Music] everywhere i go they're zombies hi sharks i'm melissa carbone from los angeles my company is 1031 productions and i'm seeking 2 million in exchange for 10 of my company [Music] 1031 productions is an entertainment company that creates owns and produces live attractions in the horror space our most popular attraction is the los angeles haunted hayride and it is not for the faint of heart sharks when you take our hayride you are entering the pitch black woods where demonic forces lost souls psychopathic fun are waiting around every turn [Music] and just when you think the terror is over think again he likes you don't eyeball me i will kick your tush back to texas okay melissa you know what's really scaring the crap out of me is your valuation so two million dollars for 10 percent imputes a 20 million dollar value on this scary hair ride business tell us why you're worth 20 million dollars we do attractions all year long we have the los angeles haunted hayride which is our seasonal attraction here in l.a 17 nights we sell out every single night we do about 1.8 million dollars right now per october whoa [Music] 1.8 was really good in 17. we have another attraction called the great horror camp out that we just launched which is a summer attraction the great horror camp out is our way of not being a seasonal company it is an overnight completely immersive camping experience horror theme oh no so it's 12 hours we bait we we take 2 000 campers we put them in tents and we have an incredibly interactive experience that includes everything from a hill it's basically summer camp from hell yeah 1.8 million in at the end of the 17 days what's left it cost us 1.2 million dollars to produce the los angeles haunted hayride so i'm left with 600 000 free cash afterwards yeah i mean it varies year to year because right now we're in a launching new attraction mode we're launching a new york haunted hay ride which is what we're seeking some of this money for the great horror camp out we're launching it next year in 10 cities up the west coast there lies the rub right because they're very very very expensive to to produce and create right well the campouts are cheap to produce how much advertising and promotion do you do we spend about 300 thousand dollars we do a ton of radio my background is i i ran clear channel los angeles for 10 years so my advertising marketing and one of my other business partners actually still with clear channel so we know how to make a dollar go really far from a market how many unique individuals come through the hayride we have we have 50 000 people we sell out every single night so this year is our first year we increased our max capacity to 100 800. we actually are doubling our max capacity this year you sell out every night for 17 days every night that's amazing so can i extrapolate and say that it's going to be 3.6 million in revenue this year yes if we sell out so that means this thing will generate just over a million bucks if everything works right okay now you're an intelligent woman i'm trying to make the leap now we have to get back to reality on your 20 million dollar ask yeah let's give you a fair chance of making a million bucks before tax okay yep that's about 700 000 after tax if i gave you a 10 multiple you're worth 7 million bucks how is it that i am going to pay 20 for a 7 million business if everything goes right that's the horror story you brought here you've overvalued your business we've had major entertainment companies in la who have already given us offers to buy our company and this is about what they're valuing it why are you such a greaty pig not greedy i have lots of lots of high hopes for the company and i want to grow fast just because a hollywood bozo offered you a 20 million dollar valuation you know what the horror show is listen you argue about valuation all the time but then why don't you just give her 2 million dollars for ten percent i am projecting for the new york haunted heriot which hasn't happened yet because it's the same model in la we're just plopping it there haven't we done it let go geographically it's a different model because it never rains in l.a melissa i i i don't agree that your risk analysis is correct it never happens that everything you roll out successful day one that's ridiculous for me it is not hard to get lots of people to come to the attractions the hard part is to make it a great experience so they want to come back this is all fun and games but we're talking about money here i can't i can't get there i'm out melissa for you to come close to your projections for next year everything has to work perfectly all the time i don't see you getting to those numbers next year i'm out for me right now to give you two million dollars i feel it would take a really long time for me to see that back so for that reason i'm out the risk is not as great as you probably would think i mean we will launch these attractions no matter what i know that we can launch them faster by having this money we can launch them now i'm an expert in high octane scare you are yes i can tell you a way to do this much cheaper wear a piece of jewelry and walk around where i grew up yeah that will give you a high octane fair enough uh i would just have to insult you with my offer of um go ahead insult her that's about what it's worth throw the offer yeah okay well then i'll give you two million dollars for 40. [Music] okay [Music] come on mark is that a yes or no to him um can i counter of course you can counter um 2 million for 20 i'll take that offer done really yep awesome all right wow easy breezy i love it thank you you

Channel: Sony Pictures Television

Views: 1,619,965

Keywords: Sony, Sony Pictures Television, Shark Tank, Shark Tank US, Shark Tank USA, Shark Tank America, American Shark Tank, Shark Tank Pitches, Shark Tank bad pitches, Shark Tank Best Pitches, Shark Tank Covid, Shark Tank Season 12, Mark, Blake Mycoskie, Kevin, Lori, Daymond, mark shark tank, kevin shark tank, lori shark tank, daymond shark tank, mr wonderful, Back to school

Id: vLb6QjLgW8A

Length: 28min 47sec (1727 seconds)

Published: Sun Sep 04 2022