The Sharks Are Humbled and Energized With Neuro | Shark Tank US | Shark Tank Global

next up are gum and mints with an extra boost [Music] hey sharks I'm Kent and I'm Ryan and we're the founders of neuro from Los Angeles California today we're seeking 750 000 in exchange for five percent of the company okay when I met Kent in college he was studying neuroscience and training with the Japanese olympic Judo team Iran was studying chemistry and was captain of the cross country and track team he's a second degree black belt in karate and he's finished 12 marathons he's also an artist that's done over 40 murals around the world and he trains with the US paralympic team I guess if there's one word to describe us it would be more more look we like to push each other but sometimes you just need that little extra boost coffee's great but it doesn't fit in your pocket and you don't want to be running around with it oh and don't get me started on energy drinks we wanted clean balanced energy something that could be taken anytime anywhere so that's why we created neurogum and neuromint for when you need just a little more using a patented cold compressed method we used a blend of natural caffeine plus healthy you need and b6 and b12 vitamins in each piece each piece contains as much caffeine as half a cup of coffee and since you absorb it through your mouth it works way faster than drinks or supplements but what about the sugar oh ill no GMOs nope all right but is it vegan yeah of course it is wow it really is better than a cup of coffee and one tenth the price so sharks wake up don't get yourself stuck in a sticky situation now who wants to chew on some neural gum and Euro mints let's do it bring it on all right there you go it's the mints on the top and cinnamon in them thank you mint flavor gone on the palm what he wants to try first try the minerals sliding tin one how long does it take to be effective five to ten minutes are you already in stores we are in stores 5500 locations tell us a little about your background when I was in college I was basically training four to five hours a day trying to balance school with my social life and my training was extremely difficult so I was mixing supplements in my own room and obviously we have chemists and formulators now to refine it but that was essentially v0 of neurogum where did you meet Ryan I met Kent in Japanese class uh we automatically just hit it off and then we became best friends and uh in 2009 I was 19 years old and I got into really bad snowboarding accident and doctors told me I would never walk again I spent the next two years and 15 surgeries in the hospital I think that was definitely the lowest point in my life and fortunately I had the best friends family in the world that helped me get back to where I wanted to be you know Kent and I just wanted to live more we wanted to do everything that life had to offer and that was really the Catalyst to start neurogram you know life can change in early seconds to you I mean I was just so impressive I'm just trying to live life to the best well here you are in Shark Tank that's not bad So based on your valuation you must be doing a lot of business we can do much better but we have been doing a fantastic job this year we're coming up to about four years from started launching the company uh this year we'll do about 3.5 million in sales wow we just entered retail what 3.5 million in sales this year what did you do last year was yeah it was uh about 1.5 million bam for the first three and a half years of the business we only focus on online and um Amazon it's about 33 of our customers in the last 12 months on our website have bought again and on Amazon is about 21 so the people who try a product really love it Ryan I got to tell you I am so freaking hyper right now so listen walk me through your distribution because the danger with Rising sales is that they may mask repeat sales Daniel there is a big reason why we're here because retail is terrifying and I think we need that marketing profile it's the ad allowances the Shelf talk all those things that kind of listening phase like it's crazy so we're in 5000 of the largest of the largest Pharmacy chain in the United States we're the number of two best-selling product in memory focus in cvsg so we retailed the product for about 395 3.99 and and it cost us 67 cents to make the neurogram Enduro mints and so our gross margins are high what is your sales in just CVS it's close to half a million so far I'm assuming you're going to tell me you're going to do 5 million next year I think we could do 10 million because we have two large POS lined up with two two of the largest airport companies it's Delta and JetBlue so guys so my advice I want to give you because you can grow yourself out of business if you're not cautious here you can have an airline get very excited try one order you go really fast and before you know it they don't reorder you just need to be careful with your growth I love your authenticity you remind me of my father because people that survived the Holocaust the overwhelming majority they could not talk back about their past and my dad found a way to talk about everything he went through but to always be kind to always be thankful and to always see the positive and I just see that in you but it's just not a category that I feel I can connect to enough amount but I love everything about you guys I wish you the very very best thank you so much Daniel we look up to you a tremendous amount and what you've done with kind bar and you are like an inspiration to us okay boys no more Kumbaya 750 000 what are you doing with the money uh so the 750 000 is going to go into the marketing efforts in retail because marketing guys why are you even talking about retail you have a proven model why are you worth 15 million dollars because most cpg companies right now haven't been have been getting acquired at three to 10x multiple on top line revenue and that's what we're calculating that doesn't have to do with where you're at right now okay here's my challenge with it the value of this company would have to grow by so much for me to make any money at my five percent right I think what we're we're just getting started on the retail and I think back to your point why why don't we start just stay as an online business is we want to really make this into National brand it takes a lot of money to do that my friends absolutely we're trying to go from product to Lifestyle though that's why we're spending our money into sampling and events because that way we could connect with people look do you put yourself at risk when you sample you are a supplement that's making claims you talk about Clarity you talk about energy you talk about focus and so when people see that that's what they're expecting and that's what they're hoping for even though you as a neuroscientist knows no two people are going to experience it the exact same way right so if you sample you put yourself at significant risk so for those Reasons I'm out thanks Mark listen what you have achieved and overcome I mean there's no end to what you'll do but for me right now I'm kind of like this when I'm like that I have to say I'm out so you know for me there is a massive gaping hole of how are you going to scale this but love you guys love the success so far for what I know I'm willing to take a flyer on him I'll give you a million dollars for 20 percent it's a flyer I think your valuation is stinky poo poo it's ridiculous but I like the premise of the business I prefer the vertical aspect to it that you found your Market that business alone could be good here's my offer I'll give you 750 I want 50 cents in royalties off every unit till I recoup a million dollars and I want the five percent equity now oh my Lord thank you for that offer gonna respond to you Robert first yeah um do you want to meet halfway at 10 million valuation I'd go up to a 7 million valuation that's gonna do seven I'm so sorry we can't we can't do that it was just yeah I think it'd be unfair for the other investors that came in they're not sharks but no but they are an extension sharks are expensive my friend look it's not your family they're investors and I think I think I bring more value I mean I love you guys but I can't do it at that rate I'm out okay we appreciate it well then all roads lead back to Mr Wonderful as usual and they all have potholes what do you want to do oh I I don't think we could take your deal Kevin you're making a big mistake my friend well guys thank you very much those were great guys love you dude love you too well we're all about more and more and more and the Sharks definitely wanted two more more too much more more more before you go don't forget to subscribe to the Shark Tank Youtube channel and ring the notification Bell to keep up with everything that's bubbling in the tank

Channel: Shark Tank Global

Views: 1,200,411

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

Id: 0dViu8lAQN0

Length: 9min 33sec (573 seconds)

Published: Thu Dec 01 2022