The Sharks FIGHT Amongst Themselves Over Ade & Ayo's Valuation | Shark Tank US | Shark Tank Global

next up is a fashion brand that celebrates African [Music] Heritage hi sharks I'm Timmy Dio and I'm abisola we're from Oakland California and we're here seeking $175,000 for 10% of our company as Nigerian immigrants we value keeping strong ties with our heritage so it's no wonder when we were having our baby boy we wanted to make sure he grew up en Rich by his Nigerian culture as well and one way we do the Sharks is by having afro beat dance parties come on come on you guys are dance Hey Hey Oh Mr Wonderful nice move nice Move Get It ke get it C oh oh there you go there you go come on come on come on come on F wait to bring home am I right but when we went out to look for clothing books and toys that would help our son take pride in his roots the options were very limited that's why we created at day and I we bring the joy and vibrancy of African cultures to Children through products that are beautiful thoughtful we talking about you no the products which is important are afford we are the first to bring African prince to organic cotton fabric that are soft machine washable and perfect for everyday play with distinct patterns and colors that are inspired by African textiles sharks representation matters what kids see in their lives every day helps them to understand what the world looks like and shapes their views about the future yes so that's why we invite you sharks to join us in filling homes across the world with all inspiring African Artistry in front of each of you are your very own day pieces check out for yourselves have a look so Mark and Damon you each yeah thank you you each have pieces from our BOGO collection I think it'll fit me too this is cute this is this yeah so this this inspired by um Malayan mudcloth fabrics and then Barbara what you have is the Tula print and that is inspired by a congales fabric called kuac cloth you want to know something as I was touching this there's an incredible softness to it this normal cotton feels starchy you know like stiff and kind of crackly st% organic cotton actually it has a beautiful feel really thank you that really was a priority for us I wanted my son to be able to play in these clothes and to feel comfortable wearing them as part of his everyday life so the way the fabric feel is very important part of what we're doing here I will say we've seen so many collections for children over the years on Shark Tank but never anything like this each of the prints we hold are also sophisticated they feel like designer clothing thank you wish had what's the game plan for distribution on this stuff so we are focused on our directed customer Channel through our website and how's it going over 11 months we've been running now and our sales are really really strong they're showing up at 160k what is the average cost to make it and what do you sell it at it takes about $6 to make um $19 retail to sell you sell this for $19 accessibility is so important to us we really want the average person to be able to purchase these and that's why you're sticking to direct to Consumer because you need those margins right keep our margins pal can tell us a little bit about you about your background so I was actually an attorney before doing this but I also understood as I began to do that job that I had to draw to something else and I find my myself twinker with ideas outside of work and I knew at some point I was going to come across an idea that I was going to have to build out and that's what this is right he has a supply chain background you can get to that thank you um so my background is in I have an engineering degree and and an MBA at Yale where I met my beautiful wife and then after that like I have a 15year career uh where I've worked at Amazon and also at Apple for both the retail and the consumer side so in terms of who we actually are right so I was four years old my family moved from Nigeria to Montreal Canada and my parents began from scratch they were washing bathrooms they were mne Cooks my parents wake me up in the weat hours of the morning shovel me into their car and we would go around and distribute newspaper so they were really hustling and they went from that to earning multiple degrees and having their own businesses watching that growing up just ignited me a belief in the power of a dream and a vision and putting everything you can into making it happen are you doing this full-time we are both full-time but you're only doing 15K a month in sales and obviously not all that is income um how are you guys surviving we're able to save some money um and sort of invest our funds in s companies use $175,000 for what would you use our money what would you hope a shark would do we're going to invest a lot of it into the product you mean inventory exactly yes inventory the other part is growing our team we want to grow our team to be able to Market get the message out to people in creative ways I think we need implementers so we have really wonderful strategies and ideas particularly on the marketing side and it's really a matter of like we are two people and so there're only so many hours of the day to get that work actually so at this juncture in the business do you think it was wise for both of you to give up highp paying jobs I mean you're all in here if this doesn't work out a bad outome we're very confident there's no reason why this shouldn't work out it's a binary outcome either it works or it doesn't if it doesn't work you guys are screwed we are betting on ourselves right every entrepreneur bets on themselves right right that's the nature right but why such a high valuation I mean right now you're asking $175 ,000 for 10% if you distributed $100,000 a year and I made 10% off that that's $10,000 a year I would have it would take me 17 years to get my money back do you understand what you're asking the way we see the value of the company today is based on the potential for you said today right yes not potential you said today what is the value of the company today we see based on the traction we have so far we think we can grow to that um to a place you can make you can make up your own don't you think the business is going to grow that's why they're here I'm already giving them three to four times more today from small I'm asking an honest question I mean Mark how you going to get your money back I mean that's it's a good question but I I look at any acquisition is four time sales six times 10 except when you're when you're relatively small unique it's hard put a 1.7 million value on this I'm sure they're going to negotiate no way to there's no real out there we're all making exactly exactly anyways I was going to say clothing is not my thing I like to dig into things I add a lot of value in and I don't think this is one of them so I'm out he guys I'm kind of in the same boat the accelerant that you need is then the details and the operational elements of and that's just not my strong suit for clothing so for those Reasons I'm out my feeling here is I don't agree with your vision of what to do with the money I was listening carefully because I could have gone either way but I don't think that you should be hiring on staff at all and I think you can Outsource the needs that you have you can hire somebody in marketing and not have to pay a salary and not have to train and deal with all of that instead pay them for what they do I wish you the best but unfortunately I'm out Here's my thought on it you know I love your product but the amount that you're asking for is so much that I would to negotiate right so I know but what I would have to ask I wouldn't even be happy being a partner asking for that much because now I'm taking 50% of your dream so for that reason I'm out there's still one shark left Barb bar you underestimate yourself I don't think you realize the potential you have here I see it right I have not seen baby clothing with these cool designs the fabric when you said they sell for under 20 bucks I was blown away Target should be carrying a line immediately okay so I think you're going to grow like Gang Busters but I also think you're underestimating what you're going to need to do it biggest danger is underestimating how successful you could be and what you're going to need to get there you need me cuz I've done it before right that's why I'm going to give you an aggressive agre okay let see let's hear it let's hear it four sharks are out Barbara is interested in Edo and aba's African inspired children's clothing company ad and IO but she requires a much bigger stake than the 10% they came in offering your biggest danger is underestimating how successful you could be and what you're going to need to get there you need me CU I've done it before right that's why I'm going to give you an aggressive a greedy offer okay let's hear it let's hear it so I'm going to give you $175,000 I'd like to take a third of your business but I'm going to also give you a $500,000 credit line which you're going to really need and you're going to need it faster than you think Barbara we can tell that you get it honestly um there is so much potential here and 33 is high for US 33 and a thir and a third so yeah that's higher than we would like to go that your 66 and 23% is worth far far more with Barbara so rather than that number you had coming in here that you thought you couldn't go above cuz everybody who stands on that carpet does the exact same thing and the biggest winners are the ones that don't nickel and down the valuation told us who owns your business are you yeah 50 so she becomes a third partner equal to you um we yeah so we're thinking what if we could do um going up a little bit on the dollar amount to 200,000 and then still having the line of credit and then we could do at that amount we could do is it 30 yeah we could do 30% um I will take that deal but I need 33 and A3 per. I want to feel equal to you and remember I'm coming with a lot more than you came in here asking for you got more money and you're wibbling over 3 and a third per. I mean you're going to make so much money in this what are you going to do we accept that deal thank you so muchy whoa whoa baby come on Barbara hey wow hug me baby hug me baby hug me bar Shak it thank you guys so much good job Barb I love these people and I love their clothing I think it's going to work you got a good one I think it's going to work $20 price point that's fantastic that's a high valuation for no it's not e

Channel: Shark Tank Global

Views: 106,806

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, ade & ayo, ade ayo shark tank, ade ayo, ade and ayo shark tank

Id: xgEYwHSmxgM

Length: 11min 51sec (711 seconds)

Published: Mon Jun 10 2024