The Sharks Struggle to Wrap Their Heads Around Round21 | Shark Tank US | Shark Tank Global

[Applause] next up is a brand that merges art and [Music] sports hi sharks my name is Jasmine maetta founder and CEO of round 21 I'm seeking $250,000 for 3% of the business wow sharks Sports is a universal language it communicates emotions and beliefs style and creativity athletes now use their voices as a platform for what they believe putting an end to the idea that they should just shut up and play this is why I created round 21 we partner with an awesome group of creators athletes artists and taste makers to unlock sport as a canvas we extend and promote creativity through digital Sporting Goods as well through viral nft collaborations that extend their digital engagement the digi with our physical Sporting Goods the fizzy a business model we call Digi fizzy we've launched across four Sports have a pipeline of artists athletes and taste makers and a growing Community aligned to our mission of making standing out the new standard in sports so sharks we think it's time you feel free to play with the art we've handpicked products for each of you Robert we gave you a soccer ball that will continue to promote creativity on the pitch thank you Loria pingpong paddle YOLO you only live once what you inspire and every entrepreneur who's chasing their dreams Mr Wonderful a football anyone chasing greatness would appreciate beautiful Damon a sports product that is symbolizing how sport is also a platform for social justice and Mark for you we have a performance basketball that symbolizes five players on the court coming to together for a greater good but in addition we also have a digital nft basketball inspired by your unique background through color and symbolism that acts as membership to round 21 nice and nft so everybody knows nft stands for non-fungible token it's a completely unique digital file it can be bought and sold like any collectible effectively is a digital version of a piece of art that's cool yeah so round 21's nfts act as two things for our community it acts as your social brand and it acts as membership to round 21 and what that gives you is access to early product drops okay physical events that we're Laing are you selling nfts today or are you selling physical products both God it can you walk me through a typical sale and maybe put from the perspective of an an actual athlete let's say Mr Wonderful is a rockstar athlete which I am obviously I I come to you Jasmine I say okay I I want to make a statement about entrepreneurship ship I'm an athlete I got a million followers what happens we bring in artists from the outside how do you split the revenue between you the artist and the athlete this basketball as an example is $15 to make and we sell it for $59.99 retail the artist gets two options they either get a flat fee up front or they get 10% share in revenue of every unit sold and so can you walk us through your overall Revenue how much have you sold in physical goods and nft yeah so I've sold 354,000 life today which is 15 months of physical Goods units or dollars sorry that's dollars okay and how much is nfts on top of the 3504 right now the nfts are growing into 20K of our total revenue that's above and beyond the 354 so it's small it's very small very small so tell us about you how did you come up with this in the first place so I have to go back to my roots I'm born and raised in smalltown Oklahoma two parents from India where being different sometimes meant you didn't belong and I found who I was through basketball I played in high school I played overseas and then I coached at the Collegiate and high school level I then transitioned to the marketing side of sports which led me to marketing leadership roles at Reebok Hasbro oh wow under arour I led marketing for six years and most recently was vice president of brand at pelaton wow what are your sales year to date we're on track our run rate is $510,000 how much you going to make on that we're currently at a gross profit level $73,000 gross profit oret at the product level netting we are not profitable as a company so how much are you burning we're burning about $10,000 a month right now how much money have you raised so I just closed around at 1.39 million I raised on a safe at a 6.25 post money what are the terms of your safe 6.25 post money safe standard y combinator safe you know I think you are so impressive and so spoton as far as um an investment for me I think that some of my fellow sharks might be a better partner for you because they know more about sports than I do for those reasons I think I I will go out because I think you'll have even someone stronger to help support you Jasmine I have a huge amount of respect for your background really really impressive and what a unique business model is it going to work I don't know but the road to revenue is not clear for me before you go out before you go out I want to talk about our strategic Partnerships at the wholesale level for volume yeah I Jasmine I'm not your guy for this I'm sorry I'm out you're the real deal I think nfts is going to be around forever everybody's going to own one but I'm trying to educate myself still on them and at a Buy in price of $250,000 I would be giving you that for tuition I wouldn't add any value at this moment um it's a little too early for me to get a full grasp Damon we are betting on the passion people have for sports the revenue is rooted in physicals the nft is upside this is Sport fashion this is absolutely self the nft part is the really attractive part but I don't know enough about it so I'm out Jasmine why aren't your sales higher we actually are on our third PO with the largest Sporting Goods retailer in America they want to co-create product with us in 2022 and Beyond they also have an open order for next year that just came in this morning of $100,000 but see but those numbers aren't big enough to scale particularly with your valuation look we we do some of the stuff with the Mavs I do a lot of stuff with unlocking nfts it it'd be somewhat competitive and so for those Reasons I'm out okay Jasmine the sporty shark is left I own the domain for nft I own the URL I built a business around it with lots of Partners we have reserved all the S&P 500 companies and so that part fits with what I'm doing and I've already invested a lot in I'm trying to figure out how to make that work so that when you offer any athlete an nft profile it goes up on the website but if you own all the 500 companies you didn't get all their permission are you a troll reserved it for them and they can decide to use it or not you reserved it for them right there's no let me you are witnessing a troll in Real Life Look I I have those domains and my point is I don't steal it from them if they want to work with us great but I'm not going to go to work for you Jasmine for 3% because your business is nasing it's early it's it's start up you're very impressive but I'm not doing it for 3% okay okay that's just not enough to get me out of bed to go work for you offer so I'm going to make you an offer I'm going to do the 250,000 for 15% you got to say yes to that you should take that deal you got to I don't have any flexibility but basically I'm giving you a quarter of million dollars and then going to work for you what do you want to [Music] do first thing that happens is we figure out a strategy to blow you up I'm not saying it's going to be easy but that means I'm working for you Jasmine I'm working for you I wonder if I can get a paycheck can I get on payroll like every day I'm going to get up and work for you that's you work for minimum wage cuz that's what he's worth is I come in with physical supply chain digital credibility I also have artist and athlete relationships I have when you can counter I am thinking about what would be respectful um would you do 250,000 for 5% with an advisory share and you got to get me to 15% you can structure it any way you want but I'm going to help you build this business in a very competitive space would you consider $250,000 for 5% with an advisory share and 1% of every nft ever sold ever sold okay so Jasmine you're talking about a royalty deal and that resonates with Mr Wonderful okay all of a sudden I'm loving you more now so I would do this deal okay I'll do 250,000 for 11% and 2% of it every nft sold at the 11% you should take that deal it is a Down Round for my current investors I understand and I respect the investors but I'm you knew that coming in though Jasmine you knew that coming in I know I know I look I respect your investors but I'm going to bring something they can't bring okay they just can't I think the URL is very valuable for you I think the infrastructure that I have already to build out this nft complex for you I literally I know you're struggling with it I would take the 11% deal and the 2% nfts I would do that if I would you I really would all your investors they get a discount right to the next round they do so if this pric is at a lower amount they actually get more of the company right so you lose I know they don't I know right you got to make a decision but I'm willing to do it at 10 I don't care how many advisory Shares are in that mix and I'm about one and a half% of the nft then you have a deal he went to 10 I did go to 10 I understand exactly your problem I'm giving you more okay let's do it yay I'm so glad you did it that was really funny it's still going to be tough it's still going to be T 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: 210,814

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, round 21 shark tank, round21

Id: IgiWYO4lA50

Length: 11min 23sec (683 seconds)

Published: Thu Jun 06 2024