The Sharks Think There Are Too Many Pieces To Chess Up | Shark Tank US | Shark Tank Global

next into the tank is a better way to learn how to play a classic [Music] game hi sharks I'm Jeff wag and I'm Adam Rous we are two of the founders of bright Labs the makers of Chess up we're here seeking a $300,000 investment for 5% equity share in our company wow sharks chess is a brilliant game it's great for the mind and it connects millions of people all around the world regardless of age or culture but chess has one king-sized problem it's really hard to learn and once you do learn it's even harder to improve making chess an intimidating game until now chess up is chess like you've never seen it before it has a built-in AI it teaches you how to play new to chess the magic is at your fingertips simply touch a a piece and you're already learning how to play chess up features a patented artificial intelligence trainer that comes with six different levels of assistance now you really can learn and improve while you play and even let you play with a buddy who's halfway around the world with their moves instantly lighting up right on the board in front of you for the first time ever two players of any skill level can have a balanced competitive and fun match against each other chess up is soaring to success but there's one piece that our chest set is missing a shark so who's ready to make a move and capture a whole lot of cash okay sharks you each have a chess up that's set up and ready to play once you touch a piece for white the AI on your side will show you all the available moves ranked by strength so green moves are the best and red moves are the worst then once you move the white piece the black side is going to show you where it wants you to move its piece and you can continue the game from there but it doesn't talk to you like I'm making those moves but I don't really understand the logic behind it there's a curated set of lessons that we have a professional chess teacher that actually walks you through different scenarios and teaches you different strategies that's what comes with not pertaining to this particular game over not your exact game you're playing right now no I got it so I'm curious how much does this cost and what does it cost you to make it full retail is $3.99 uh we land it here for 120 okay so I played chess since I was 13 and I don't want to be told what I've got to do I want to play the AI we can control the level of assistance on either side you can uh adjust the settings on there to just see the legal moves and you receive no ass why is it so slow can I adjust the speed cuz I'm trying to play it quickly let us show you a video actually on this um the board can keep up with every human movement you can play bullet games Blitz Games which are very fast formats you're going to see that it's doing an automatic clock where it's keeping track of your time and the opponent's time wow that's fast that's cool so wait there's a ton of online chess platforms right there's a ton of software apps abolutely you know why would I spend $399 when a lot of them are free or ad driven or whatever online chess is incredible we connect with those platforms and you can play just like you play online but you're playing on a real physical board so the the real difference is that you're playing on a physical board so you get the tactile feel yeah learning just a pre and what online misses that family experience so are you doing this full-time or do you have a different job so we are very much full-time we met at the Innovation lab of a major consumer electronics brand between Jeff and myself we listed on over 20 patents and we're responsible for a lifetime revenue of over $1 billion can you name a product that you brought to Market that we would know sure so I did most recently Garmin Lily which is a women's Smartwatch it's really small and it's I wear the Garmin I love it oh that's fantastic perfect so I took the job at Garmin in an innovation Lab in order to take a step through entrepreneurship no joke when I started that job I'd never been around all the business term so I started watching Shark Tank I'm up here because of this show 3 years ago after a few hits you know watching these hundreds of millions of dollars for our employer and we were just getting paid salaries I decided to leave I called up Adam first we started prototyping these gadgets and the best concept we had when we were working was on this chess product so we took it the kickstarter and from there we had enough revenue from Kickstarter to start the company did kick we did $1.7 million in 39 days wow what were you looking to raise uh We've set the goal at 30,000 that is crazy you raised 1.7 million but you're asking for 300,000 for 5% 6 million valuation what are your sales so we told you about the kickstarter sales that was 1.7 million since then we have not been running ads at all but we've just had people trickling to the website we've sold 400,000 this year to date Adam and Jeff I want to get the ball rolling this is a business I could do nothing for you it's not my thing I'm still on Checkers and struggling thank you bar so guys thank you why am I limited to the heart Hardware platform I love chess I'm going to travel I'm always taking my laptop with me now I'm going to take this I'm going to take another bag with me um there's 50 million online chess players and we're not arguing that online chess doesn't have its place million yeah there's 600 million people who play over a real board I was going to say there's something about chess pieces and doing it physically I mean to me playing chess on on a tablet feels terrible see I have no problem with the tablet guys I like chess I don't love it right play it when my son wants to play it to me it doesn't matter if it's Bor and actually it's better when it's online cuz I can be wherever I just don't see it as a big enough market for me so for those Reasons I'm out and what will sales be this year so our sales for this year are going to be about $1.4 million are you going to make any money on the 1.4 yeah this year we'll actually book an accounting profit CU all the deferred revenue from the pre-sales counts towards this year do you have any debt on the company yes we have we have some debt that's actually into a royalty uh structure what is that how much so so there's $392,000 that gives us we give 3.92% of our sales back to that it's 3.92% of sales until you've cleaned that up right that gets a 1.5 times return that sounds like one of my deals yeah you're very familiar with your deals so during Co and getting this thing done in just 15 months we went through a middleman because we can't visit the factories we manufacturing Shin in and so he's taking a 20 30% cut we can drop that out almost instantly wow there's a lot of guys taking pieces of the pie in this steel but we got out quick and we're out and we're ahead of competition I'm I'm looking at it and I'm one of these on the fence deals cuz I play the game I understand what you've done it's a complicated cap table right now it's complicated structure I'm going to take a pass I'm out here listen I think you did an amazing job and I think there's something really important about touching and playing on a board when you're playing chess but I'm struggling because I I do wonder how am I going to make back my money if I said I wanted it for 300,000 for 10% um it's a tough one it's a tough one it really is can we we would love to work with you so let's let's think think about this um we can get you Capital back join in the royalty and another royalty Ro tell me entice me excite me yeah so uh have about $300,000 um we'll pay you back 3% of every sale until you're paid back 1.5 times so $450,000 we'll give you the 5% of the company it's not a bad count it's not bad at all uh guys let me let me I'll take it it's done yes deal got you guys are so smart thank you so much so excitedc thank you yeah thank you everyone for the time this has been great congrats guys well done thanks so much good luck I'm sorry Robert I had to do it Lori have another royalty but they're really not adding up to much we're still under 10% of a sale and we got the shark queen that we wanted it's amazing Lori is our Queen

Channel: Shark Tank Global

Views: 63,061

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, chessup shark tank, chess up, chessup shark tank episode, chessup board, chessup board review, chessup chess board

Id: R0KKZyuVHiA

Length: 8min 38sec (518 seconds)

Published: Thu Feb 15 2024