The Sharks Get Jiggy With Puzzles | Shark Tank US | Shark Tank Global

[Music] [Applause] first into the tank is a product designed to relieve stress and promote relaxation [Music] hi sharks my name is kalyn marcotte i am from new york city and i am here seeking 500 000 in exchange for 5 of my company wow stress and mental exhaustion can wreak havoc on our minds bodies and relationships five years ago i was working around the clock at an early startup and was looking for a new and healthy way to unwind and unplug i tried meditation yoga even essential oils without much success and then this tiny object changed everything a jigsaw puzzle focusing on one simple task and building something piece by piece felt both relaxing and rewarding i lost the urge to check my phone and truly cleared my head problem was all the puzzles on the market are outdated uninspired and well kind of lame sharks let me introduce you to jiggy modern puzzles with a mission each jiggy features unique art by an emerging female artist from around the world a percentage of every sale goes directly to that artist empowering these up-and-coming creatives and giving them a platform to showcase their work each puzzle comes in a reusable glass jar and includes simple tools to preserve your work of art when the final piece is in place simply spread our puzzle glue over the pieces and transform it into a beautifully crafted art print we are reinventing the humble jigsaw puzzle and reconnecting people with both mindfulness and art one piece at a time now who's ready to get jiggy with us in front of you you have some puzzles each a different artwork oh it's beautiful that's cool the pieces come in this reusable glass jar we've seen people use them as a cookie jar a flower vase behind it is a tube of puzzle glue and then in front is a gold straight edge tool it helps spread the glue how long does it take these pieces are tiny how many pieces are in a typical puzzle probably 500 to a thousand our kids and i my wife and i love doing puzzles but you need to solve one puzzle for me how did you get to this evaluation because it really is uh yeah very intimidating yeah so we just launched nine months ago in the last nine months we have done one point six million first year we're gonna do 2.25 we're profitable tell me did you do that alone yes i'm a one-woman show oh my god you own 100 yeah bootstrapped no debt no investors no equity timing was unique lucky and perfect because all of a sudden you're in the covid everybody's at home and you're getting this huge ramp right what was your profit on that 1.6 million we're netting 40 so this year on a two and a quarter we're going to make 900. that's unbelievable why do you need us so i'm doing this alone i'm here for a partner the incumbents in this space are following a retail kind of old school playbook no one is digitally native no one is competing in seo and digital marketing it's like a land grab right now you're doing it all online this first year is going to be 60 d2c 40 wholesale we were approached earlier this year by an upscale national retailer and we're going to be in 215 stores what does the puzzle sell for so we retail these for 40 and 48 cost you what to make them 10 10 how much does the artist get the artist makes on average three to five thousand dollars for our first run what percentage of the buyers now are repeat first we surveyed our customers we are expanding this category half of our customers had never bought a jigsaw puzzle before 25 indicated eight to ten on a scale of ten that they would want even something monthly like 25 percent you're suggesting there might be a subscription model to this yes we would curate new monthly images what we're seeing is people who do return are buying on average four puzzles what happens when kovit is gone these macro trends that inspired me to start this of self-care and analog those have been around for a long time we did a quarter million in our first four months pre-covered and then we sold out you are great at branding thank you caitlin first of all you're a supernova thank you i'm trying to remember if we've ever had somebody go from zero to your kind of numbers this is a great business but at the 10 million value that you're implying i have to believe that your sales are going to be tens of millions for me to recoup my investment i don't see it continuing at that trajectory i think people will move on to other things i'm out caitlin you're incredibly impressive one of the most impressive people i've seen in a very long time thank you i do think that you're benefiting from the covet uh push and the valuation is not the right valuation but i also don't think you need a shark so for that reason i'm out thank you i appreciate it that's tuitious you know i'm struggling with how much of this is sustainable post covid i would give you an offer but i'd have to mitigate my risk and i do it this way i would give you a hundred thousand dollars for percent equity in a loan for four hundred thousand at ten percent for 36 months and well i don't hear you putting up a check thank you you are a shark what i don't know is tomorrow morning vaccine people get on with their lives and they're saying what was that puzzle i mean that's the problem you know as crazy as mr wonderful is he's right in one respect the problem is the just evaluation you've got to make 10 million dollars in cash flow that you distribute in order for you that five percent of that to come back is 500 000 to me look there are a lot of great branders there's a lot of great marketers but there aren't are a lot of people who are great marketers or branders who also know how to monetize that's what makes you a great entrepreneur you know it's just not a great investment i mean i would do anything to be in business with you going forward but only getting five percent for every 10 million in cash flow is not enough for for me to get excited i think you'd be an amazing partner is there a percentage that you would feel like you had skin in the game and could be a partner for me in this [Music] two sharks are out kalyn has an offer on the table from kevin and mark seems interested but he is struggling with the small five percent stake she is offering for her puzzle company jiggy is there a percentage that you would feel like you had skin in the game and could be a partner for me in this i mean it'd have to be 15 would you scale an investment with that at 1.5 million for 15. because it's still the same math right it's linear at that point what would you counter for 10 percent i'd have to be the 15 percent because 15 is a good yeah because you that's the difference between when you get to 10 million a profit making 500 000 and returning totally yeah right now but we have a clear line 25 i'm serious we just i haven't even told you about what we're going to do next year we're going to do 5 million in net 2 of that the unit economics work i want growth capital and to accelerate it but the business is working and we're self-funding you just need capital so i just heard you no kaylin you do not need capital this is a very very rare situation it's a very rare situation take his half a million dollars for 15 to you a secondary shares doesn't go into the business it goes into your pocket why is this a good idea because you're gonna walk more confident because you're gonna take more risks because you're going to have that little nest egg the business doesn't need the cash and you have a mark cuban that's going to help you are you saying that mark is going to give the money to her he writes a 500 000 check and she goes into her pocket michael business is look he's right 500 000 in your pocket living in new york when you've been stressing this whole time is not a bad thing but then on the flip side how much of an accelerant would it be to the business because if you can get enough of a multiple on that then it could be worth 10 million 20 million 30 million in your pocket that's the decision but you own 100 of it yes i do if we could bring the investment up to get to that 15 it's not it's not that you need more capital it's something that you feel you want because you set a threshold right um you know 15 is more than i was hoping to go to today and that's why they call it shark tank i know i watched the show i knew that um i have an ass on top of the offer as you know for a mission-driven company dedicated to supporting artists will you match our fundraising efforts this year if i meet at your 15 and what do you anticipate raising we've done 20 so far i want to go over 50. so just match the 50 000 okay easy okay great job keller thank you i can't wait thank you [Music] amazing thank you i didn't get to give you my offer i know lori i'm sorry all good empowering female artists is such a part of our mission and now with mark on our team and this wind at our backs we can scale that impact across the world the only risk you've got is does it roll over after kovalev no i invested in it i invested in her yeah and go to something else you

Channel: Shark Tank Global

Views: 1,093,547

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, jiggy shark, jiggy shark tank, jiggy shark tank episode, jiggy shark tank deal, jiggy puzzles shark tank, shark tank season 12, tv shows to watch, best shark tank moments, shark tank episodes, shark tank moments, shark tank pitches

Id: 7VUhMul3WiM

Length: 10min 27sec (627 seconds)

Published: Fri Feb 18 2022