Top 3 Pitches That Were Offered $1M or More! | Shark Tank US | Shark Tank Global

[Music] next into the tank is an entrepreneur who believes there's big money to be made from big scares [Music] everywhere i go they're zombies hi sharks i'm melissa carbone from los angeles my company is 1031 productions and i'm seeking 2 million in exchange for 10 of my company [Music] 1031 productions is an entertainment company that creates owns and produces live attractions in the horror space our most popular attraction is the los angeles haunted hayride and it is not for the faint of heart sharks when you take our hayride you are entering the pitch black woods where demonic forces lost souls psychopathic fun are waiting around every turn [Music] just when you think the terror is over think [Music] he again you don't eyeball me i will kick your tush back to the top get him okay melissa you know what's really scaring the crap out of me is your evaluation so two million dollars for 10 percent imputes a 20 million dollar value on this scary hair ride business tell us why you're worth 20 million dollars we do attractions all year long we have the los angeles haunted hay ride which is our seasonal attraction here in la 17 nights we sell out every single night we do about 1.8 million dollars right now per october 1.8 was really good in 17 days we have another attraction called the great horror camp out that we just launched which is a summer attraction the great horror camp out is our way of not being a seasonal company it is an overnight completely immersive camping experience horror theme oh no so it's 12 hours we we we take 2 000 campers we put them in tents and we have an incredibly interactive experience that includes everything from ah it's basically summer camp from hell yeah 1.8 million in at the end of the 17 days what's left it cost us 1.2 million dollars to produce the los angeles haunted hayride so i'm left with 600 000 free cash afterwards yeah i mean it varies year to year because right now we're in a launching new attraction mode we're launching a new york haunted hay ride which is what we're seeking some of this money for the great horror camp out we're launching it next year in 10 cities up the west coast therein lies the rub right because they're very very very expensive to to produce and create right well the campouts are cheap to produce how much advertising and promotion do you do we spend about three hundred thousand dollars we do a ton of radio my background is i i ran clear channel los angeles for 10 years so my advertising marketing and one of my other business partners actually still with clear channel so we know how to make a dollar go really far from a market how many unique individuals come through the hayride we have we have 50 000 people we sell out every single night so this year is our first year we increased our max capacity to 100 800. we actually are doubling our max capacity this year you sell out every night for 17 days every night that's amazing so can i extrapolate and say that it's gonna be 3.6 million in revenue this year yes if we sell out so that means this thing will generate just over a million bucks if everything works right okay now you're an intelligent woman i'm trying to make the leap now we have to get back to reality on your 20 million dollar ask yeah let's give you a fair chance of making a million bucks before tax okay yep that's about 700 000 after tax if i gave you a 10 multiple you're worth 7 million bucks how is it that i am going to pay 20 for a 7 million business if everything goes right that's the horror story you brought here you've overvalued your business we've had major entertainment companies in la who have already given us offers to buy our company and this is about what they're valuing it why are you such a greaty pig not greedy i have lots of lots of high hopes for the company and i want to grow fast just because a hollywood bozo offered you a 20 million dollar valuation you know what the horror show is listen you argue about valuation all the time well then why don't you just give her two million dollars for ten percent i am projecting for the new york haunted heriot which hasn't happened yet because it's the same model in l.a we're just plopping it there haven't we done it geographically it's a different model because it never rains in l.a melissa i i don't agree that your risk analysis is correct it never happens that everything you rolled out successful day one that's ridiculous for me it is not hard to get lots of people to come to the attractions the hard part is to make it a great experience so they want to come back this is all fun and games but we're talking about money here i can't i can't get there i'm out melissa for you to come close to your projections for next year everything has to work perfectly all the time i don't see you getting to those numbers next year i'm out for me right now to give you two million dollars i feel it would take a really long time for me to see that back so for that reason i'm out the risk is not as great as you probably would think i mean we will launch these attractions no matter what i know that we can launch them faster by having this money we can launch them now i'm an expert in high octane scare you are yes i can tell you a way to do this much cheaper wear a piece of jewelry and walk around where i grew up yeah that won't give you a high octane fair enough uh i would just have to insult you with my offer um go ahead insult her that's about what it's worth throw the offer yeah okay well then i'll give you two million dollars for 40 okay all right come on mark is that a yes or no to him um can i counter of course you can count her um two million for 20. i'll take that offer done really yep awesome all right wow [Music] for helping you on that totally you can have free tickets with ellie haunted hayride thank you so much you guys appreciate it i don't know what just happened wait a minute i lost out on the deal come to things yeah you just did i think that the next generation of entertainment is experiential entertainment where people get out of the house and go and get a unique experience i thought for me to get my money back if i did that deal for two mil i'd have to rise from the dead and look like that before you already have kevin are we excited are you excited mark on board and two million dollars this is the biggest deal ever i'm so excited this changes the game for us next up is a stylish way to relax hi i'm rachel and i'm the chief enthusiasm officer and i'm joe and i'm the chief relaxation officer we're seeking four hundred thousand dollars in exchange for seven percent of our company wow between the emails popping up in your inbox 24-hour news blaring from every screen and constant pinging interruptions from your smartphone we're all feeling more overwhelmed and stressed out than ever we're all sick of feeling busy hectic and rushed and our solution to this frustration is not another app or gadget our solution is the world's most ridiculously comfy hammock introducing yellow leaf hammocks at yellow leaf hammocks we've perfected the hammock for the modern consumer we've conquered every obstacle from creating a cocoon-like no wobble design to a shockingly soft yard so you won't get a rope burn when you're trying to relax and they're completely weather safe now we're breaking the boundaries of relaxation with our new invention the hammock throne the hammock throne is an indoor outdoor hammock chair that makes it possible to relax absolutely anywhere with the hammock throne you have a gorgeous piece of furniture that you can put out in your living room on your tiny balcony or even in your office it extends back to create a full length hammock large enough for a seven foot person all within a diameter of just three and a half feet wow and it swivels 360 degrees so you can angle it out the window or relax while you watch shark tank first we perfected the hammock now we've brought it into your living room so sharks who wants to make the world a better place and join us in our quest to build a relaxation empire so on the tables in front of you are specially selected hammocks uh if you open these up and first thing you want to look at the label they're all signed by the woman who made it um we're social enterprise i like that yeah they're all where do you make them we work with moms in rural thailand to create high-wage jobs what do they cost what do you sell them for the ones that we just gave you guys are a classic double it's our top selling size they retail for 199. that's not bad our current line ranges between 149 and 299. the 199 hammock how much do you pay for it 44 is our landed cost so what is an average hammock made out of something like this what is that you can find a hammock for thirty dollars on amazon to be perfectly honest it's not gonna be 100 it's not gonna feel like this it's not gonna look like rachel how much is the contraption so this is the brand new hammock throne this is our high-end hanging solution that we've just introduced that's your product you made this yeah i did so this one is somewhere in the neighborhood of 2200 yeah whoa wow but it's an indoor piece of furniture see that seems like a lot tell us the story of how you got started by india our inspiration to start this was to literally end poverty in really vulnerable communities in the developing world the idea for the company started when i initially went on a backpacking trip across southeast asia without me oh we were living together in boston at the time and i stumbled across a hammock on a remote island and i was immediately struck by how soft it was i was really impressed with the quality and i started asking some questions and learned that it was woven by this hill hilltribe community it was part of an economic development program to help this hill tribe group out of poverty and i was really struck by that in thailand so i went to this community and i got to meet the actual weavers and hear their stories and i learned that this community that started making the hammocks with the help of an aid worker had been previously in debt slavery and the thing that really struck me was a lot of people kept coming to this community asking to join the program but they were being turned away because there weren't enough sales and i thought well we can start a little hammock company and you know provide enough jobs in this region so came home with a backpack stuff full of hammocks and i came home to rachel i was thrilled that my boyfriend wanted to quit his finance job and start a hammock company as you can imagine [Music] what are your sales this year we're going to hit 1.3 million wow last year we did 860 000 your sales are primarily online it's about 50 50 between a combination of direct-to-consumer sales to our website as well as strategic partnerships a big part of our early wholesale was kind of scatter shot patio stores we took a step back from that to focus on strategic partnerships who it's virgin voyages which is virgin's new cruise line business so virgin voyages will be putting yellow leaf hammocks in every single balcony of every single cabin what price do you get from them for these they pay our wholesale price but they'll also be um retailing them so they'll be on the room service menus in the on the in the cabin and on the stores the retail store is projected to more than double our current business so you've got to be profitable then right last year on uh 860 000 in revenue our net income was a hundred ten thousand that's after paying yourself after paying ourselves yeah john rachel yes here's my offer bam i know the five sharks here i probably have the most credentials about building social impactful businesses so i understand the challenges you're facing i really love a lot of what you stand for but you have a hundred thousand dollar profit with a crazy 5.7 million dollar valuation so my offer is as follows and it's an explosive offer i want 33 of the company wow say yes or no and then it's done all sharks are still in rachel and joe are seeking four hundred thousand dollars for a seven percent stake in their mission-based hammock company yellow leaf hammocks daniel is interested and has made a staggering offer what i want 33 of the company i'll give you one million dollars say yes or no and then it's done wow one million dollars you you mentioned our profitability on last year i want to mention our profitability on this year and yeah but that's a little wishful right and i think you would cause the order so on the 1.3 million that we're doing uh this year we're doing 360 000 in profit one of the biggest things that we're looking to do with this money is we have a huge product roadmap of solutions rachel so we started here you can take the deal he's paying you over here that might be another just for you that's an amazing offer we also recognize that we might not need all of that money right now what are you doing all right well hey hey we don't need all the money right now you're gonna give up we're not prepared to give away that much [Applause] well listen he just said maybe he doesn't need all that much money so i will give you an offer i'll go 400 000 for 20 now granted his might be better offer for you a million dollars for the 25 and both of you i don't want to go to the million about 500 000 for 25 percent [Music] wow i love the idea and i think you guys are the real deal thank you i will give you the 400 000 for 15 percent if you take the million dollars from me you won't need to dilute yourselves again you know how much money kind has raised in its entire lifetime for the business the total we ever raised in our entire history was 5.2 million dollars and we we sell over a billion dollars in sales i'll teach you and i'll help you run the business in an efficient way are you okay with 33 or is that too much for you i think it's too much because it's the maximum that you're willing to do for someone that's going to really roll up their sleeves and help you we're looking at the future if you took 33 now i worry that we would it would hurt us at a subsequent round when we grow what's subsequent when i started my business started with one product i took out a bank loan it was about 325 000 i paid it back within a year and i never had to take a loan or bring in an investor again so listen i don't think you need to just sit there and take out all these investors and take in a whole ton of money you just need to be strategically smart and taken the right investor but you need something that's the bottom line so i'm gonna change my offer my offer is this i'm gonna go 200 000 flat then i'm going to give you a loan of hundred thousand dollars at seven percent i'm going to fund purchase orders if you need them and i'm going to ask for 17 i just offered you 400 000 for 15 percent that i can offer is i can offer somebody who will hold your hand take you down the road do everything that you need i care about helping women i care about helping environment i care about helping the world and i really like the two of you so i care about you i love the two of you thank you so much we love you guys we're making it hard on them what's the minimum percentage on what dollar do you want focus joe beauty what do you do one million dollars for 25 [Music] just because i love you you're gonna change the lives i never thought he'd go down it's never happened before in shark tank history when someone came in here for four hundred thousand and walked out with a million i'm really excited to work with you make a huge difference i'm so thrilled thank you congrats [Applause] next up is a solution to a common anxiety for electric vehicle owners [Music] hi i'm chris and i'm josh and we're two of the co-founders of spark charge based in somerville massachusetts we're here today seeking a million dollars for a six percent stake in our company everyone knows electric vehicles are the future they're better for the environment and soon they'll be everywhere but there's one major thing keeping them from growing faster range anxiety range anxiety is the fear of running out of charge in your electric vehicle that's why i would love to introduce you to the roadie the world's first and only portable modular and ultra-fast ev charger the anxiety of finding a charging station and the time wasted waiting for a vehicle to charge simply goes away when the charging station comes to you no matter where you are the roadie has three core features number one modularity units can be connected together to give the electric vehicle owner the exact amount of range they want number two portable our portable units can charge an electric vehicle anytime and anywhere making any location a charging station and of course the most important factor speed we can charge an electric vehicle at a rate of one mile every 60 seconds so sharks help us create a more sustainable mobile ev charging infrastructure okay and walk us through it so how would i purchase wait wait wait wait wait wait yep wait wait one second i don't know anything about this i'm out thank you thank you so yeah it's really simple so we actually sell directly to businesses so we work with oems roadside companies on-demand companies and service companies they use the hardware and they go out there and they charge electric vehicle owners who request it so aaa we carry this aaa customer right now we do have a program going on right now the question is how much does it cost you to make one of those per module what do you sell them for so per module our cost of goods are roughly around 2500 and then companies pay a thousand dollar deposit and then we charge them 150 bucks monthly fee okay so it's 150 bucks per month per module yes in the past six months alone we've done close to over half a million in sales and we're on track to do over a million in sales this year alone by end of next year we're predicting to do close to 10 million in sales this unit itself it's patented through and through we developed it from the ground up we also built our own manufacturing facility in buffalo new york we've also been really strategic with our funding but we've won a lot of grants and awards to get us there how much money have you raised from investors versus grants that you received i'd say we've probably raised about three million adventure and the rest has been about awards which comes about two million so far about five years very smart and so what percentage of the company do you guys own now versus what the investors own oh we have we have we have a little over 50 but why do you believe you'll go to 10 million you went from 500 000 you double that congratulations to 1 million and now you're gonna 10 exit why do you believe you'll go to that so the electric vehicle industry is growing rapidly essentially the reason that we're here today and that's a great point is that we need to scale to keep up with demand obviously you have to burn some cash to get to where you are now how much have you lost to get to here uh since the beginning i think the burn rate is just a little over about four or four mil so you guys are in a bad spot right now no no no no you've raised four million right we raised five million total okay and you spent four so you got a million left correct and you've got in order to grow you need to invest to build more batteries correct all right you're basically leasing these things to people right correct how much capital do i have to tie up in inventory that's probably the best way to answer that question about a third you're basically going to carry a third of revenue as least in other words you own it it's on your balance sheet wouldn't it be better to simply sell this and then let the attrition occur in the market because i think that's a big issue so you know we could sell it but by releasing it out essentially we control the asset and then when the batteries come back we can also repurpose them okay so tell me again what it cost you to make a 2500 and so your payback time is approximately 12 months how much are you charging that if it's 12 months and it's 25 if it's 150 a month a thousand dollar deposit oh they pay a thousand dollars there is an actual thousand dollars for revenue it's a thousand dollar deposit it's non-refundable so it's not a deposit then it's actually a thousand dollar payment yes i really love what you're doing here and i also think that you can have a direct consumer end of this down the road where they can put in their cars something smaller but will give them that little bit of peace of mind where they can get to somewhere where they're safe so we are going to be coming out with a consumer product the technology inside is somewhat the same it's just smaller size lighter package more consumer-friendly look what would that retail for depending on scale we might be able to get it for under 1500. how many units are being used right now so today around 50. you're back ordered right now that's correct i hate the least part of the deal i hate owning risk that part you lost me there i'm out thank you kevin i appreciate it like lori i think the big opportunity is developing a consumer unit but i find it really hard to believe that you're going to deliver a consumer unit for a thousand bucks or less when your commercial units are thousands and so for that reason i'm going to be out like i said i think it's super smart it is innovative i think mark is mr technology like i will always look to him to understand things that i don't actually understand this is more a capital issue so are you interested in mark cause yeah i mean i like the concept right so here's the challenge right the challenge is it's a lot of cash up front and you're gonna have to borrow money not raise money because if you raise more money that you guys aren't gonna have any ownership left right unless you think it's going to be a multi-billion dollar company and we do believe it's going to be a multi-billion dollar company um according to our estimations we can get to profitability without having to raise additional rounds by middle of next year so here's the thing okay six percent is nowhere near enough particularly for two of us right so lori i think the best way to do this is to let them make us an offer and we either say yes or no so you know what your number is instead of us trying to figure out your number and us going back and forth in the interest of time just give us your number right and if we like it we say yes and if we don't we say no um how about this how about we do a million dollars for 10 percent it's split 50 50 but we'll also throw in 2 advisor equity and a board seat percent each um two percent each we can do two percent each so we would go 500 500 seven percent seven percent right and five five and two basically do we have a deal we got a deal we have a deal the chance of you getting a deal was zero no no just saying goodbye i think the best person in this deal is lori who got a free ride or if a marquee wasn't back she's a bottom feeder i like your style lori congratulations guys it was the most exhilarating ride of my life we really want to dig in and start building this business to be a billion dollar business what's the power of lori and mark spark charge is now fully charged to take over the world people don't realize when you raise money it's not an accomplishment it's an obligation exactly but our media celebrates it they celebrate raising money as if that's like profitability you

Channel: Shark Tank Global

Views: 3,014,071

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: FykmggqWOmM

Length: 26min 21sec (1581 seconds)

Published: Sun Apr 17 2022