S16.E01: Little Saints Mocktails; TruFit Customs; 1587 Sneakers; Card.io Running App

[CrazyInAlabama]

New, 10/18/2024

Sharks- Mark, Lori, Kevin, Daymond , Guest Shark: Rashaun Williams (Venture Capitalist, limited partner of the Atlanta Falcons)

(Note: Last season for Mark Cuban).

 

Little Saints Mocktails-Mushroom-based mocktails-They want $500,000 for 5%.  Sales $5 million in the last year.   Margins are great, unfortunately she’s in debt.   Claims she’s breaking even and getting a profit this month.  

Offer from Rashaun Williams $500,000 for 10%, she wants $500k for 10% and $2 million line of credit.  Lori, Mark, Kevin, and Daymond are out.  Then, Kevin says go in with Rashaun, 15% each, and $500k, then she counters at 10% each, and $500k.  

No deal. Seller declines the deal.

 

TruFit Customs- custom-fit mouthguards. They want $750,000 for 5%. 1,000 athletes wear them.  For consumers they have an impression kit.  Mark and Rashaun say there are a lot of competitors.  They use C&C machines, and 3-D printers.   $1.4 million sales current year, and are profitable.   Margins are OK, 40%.   Everyone says valuation is insane. I think there's a huge market for this, pro athletes, college, and anyone who is serious about sports and needs mouth protection would be a good market, because it's smaller than mass marketed mouthguards.     Mark is out, Daymond is out, Lori is out. Rashaun is thinking about it.  Kevin $750k for 3%with $2 royalty until he gets an investment and profit back, $2 million.  Rashaun makes an offer $750,000 for 10%  but will bring in 20 to 30 pro athletes as brand ambassadors. 

Rashaun makes the deal.

 

1587 Sneakers-an Asian American-led sneaker brand. They want $100,000 for 15.87%.  Their mission is to install cultural pride. 1587 is the first year an Asian came to North America.  First was the Morro Bay commemorating where the first landing happened.     Sneakers are leather.   They’re currently marketing to Asian Americans, with 37% of sales to Asian Americans.   Shoes were made in Italy.   Margins from Asian produced have great margins.  $500,000 anticipated sales in the current year.    Mark says not retail.  Lori is out.  Kevin is out.  Rashaun is out, lack of traction in sales and lifestyle brand.  Daymond isn’t sure about joining the business, and says not to go retail, and he’s out.   Mark says don’t do retail, just direct to consumer, and he’s out.

No deal. (Sellers said great advice, and they’ll stay direct to consumer)

 

Card.io Running App- an app to boost one's cardio game.  They want $150,000 for 5%.   The app is a way to have interaction with exercising.   A gamified fitness app.   You can run a route, even with others virtually.    App keeps your stats, with trackers for days, compete with others all on your computer app.  Competitors are gamified.    22,000 users in 70 countries.   Premium model 34% retention rate.   $25 per month, aimed at run clubs, and groups.   Partner with running clubs to schedule events, marathons, and set running groups for training.      The CEO of Pokemon Go gave him a grant.   Lori is out, Kevin is out, Mark is out,    Rashaun asks why he’s on the show, and at 10 years old he watched Shark Tank and said he was going to be on the show. 

Rashaun and Daymond want to partner up, $150,000 for 15%.  Counter is 10%, $150,000.   (He brings his mom out to talk to the Sharks, she ways do the deal).

Deal with Daymond and Rashaun.   

Profile of Rashaun Williams.   He received 17 scholarships for college at Morehouse.  He invested in Ring in the early days.  He works with a lot of athletes and entertainers.  He's a venture capitalist, and limited partner in the Atlanta Falcons.     He works with a lot of celebrities and athletes to help them keep their earnings, instead of fritter them away.      I really like him, he gives great advice, and really cares about the business owners. 

Edited October 19 by CrazyInAlabama

[Quickbeam]

I really liked Rashaun. He’s super bright and sharp. I get a lot of things to test for a major retailer and have had gallons of non-alcoholic products to try. I’m a non drinker and always find it’s easy to just get a club soda with lime. I didn’t get the feeling the woman wanted a deal.

[DrSpaceman73]

2 hours ago, Quickbeam said:

I really liked Rashaun. He’s super bright and sharp. I get a lot of things to test for a major retailer and have had gallons of non-alcoholic products to try. I’m a non drinker and always find it’s easy to just get a club soda with lime. I didn’t get the feeling the woman wanted a deal.

Me either.  Didn't budge at all on the valuation.  I think whe did it for PR. In fact she at one point asked for her initial value PLUS A HUGE LOAN.  stop. And I have no interest in her drinks. 

 

The know guy thought was interesting. Gave some original comments and more than the usual advice and denials we always hear. 

 

Show company?  There are huge shoe companies all over. 

[Shrek]

Is the Card.io guy Cardi b's brother?

[bilgistic]

SNAP MY FINGERS I'M ASIAN NOW

What the fuck!

"How do you appeal to the Asian market?" would've worked just fine.

I would watch a show with just Damon and Rashad and stop watching this one immediately.

Edited October 19 by bilgistic

[tired and hungry]

First pitch lady was not there for a deal. There's no way they were going to accept 1M for 10%.. TBH the drinks & beverages pitches are a dime a dozen nowadays. 

The mouthguard thing, I didn't really understand why they needed to target regular customers. Didn't make sense to me. 

The Sneaker guys seemed genuine. Never actually seen leather sneakers though. 

I agree with others on the guest shark. He seemed very sharp & level-headed. He definitely knew what he was talking about with the kind of questions he was asking..

Honorable mention to Lori's cringey "I always say" one-liners. Had me rolling my  eyes twice in one episode 🙄

[hifihifi]

I didn't understand Cardio.io at all and the guy who owns it speaks way to fast.

I also think that if the owner had been white, he would not have been offered a deal by the 2 Black Sharks.

Rashaun was too smart & I didn't find him entertaining at all. If I was an entrapreuner I would never partner with him because I just find him both too smart & self assured for my taste.

[Quickbeam]

Having watched all the years of this show, I know that the drink space and the shoe space are incredibly crowded. So that’s already a strike against starting off. The non-alcoholic mocktail market is smaller than they think. Generations of recovering alcoholics know how to make club soda look like a mixed drink. And non-drinkers don’t care to order some fake drink. Even if it has mushrooms (WTF).

[Vanderboom]

20 hours ago, CrazyInAlabama said:

Profile of Rashaun Williams.   He received 17 scholarships for college at Morehouse.  He invested in Ring in the early days.

I enjoy the fact that he saw the potential in Ring, but the regular Sharks didn't.

Add me to the list of people who think the Mushroom Wine lady was just in it to raise her profile and name recognition. Why else would someone carrying her debt balk at getting a deal? Especially if she wants to enter the beverage game?

[seacliffsal]

The beverage woman found a solution to a non-existent problem.  If I don't want an alcoholic drink I order a sparkling water-it's still a fun drink.  I guess some people might want to look like they're having a regular cocktail but I don't think that's a huge subset of people.  And, a bottle of her concoction costs $49!  What?  That's more than I would spend on a bottle of wine or a bottle of liquor!  Really pricey.  I agree with others-she didn't want a deal.  I think Mark personally opened the doors to people who really don't want a deal just exposure when he made ABC get rid of the original 2% cost to be on the show.

I guess the mouth guard would be good for professional athletes.

I thought the sneakers looked nice, but $175!!!  I don't understand the sneaker culture.

I didn't understand the Cardio app at all, but I'm glad he got a deal.

[hifihifi]

Can someone explain to me the Cardio.ap? I don't understand why anyone would want it. Also the guy who owns it needs to learn to speak more slowly.

[Shrek]

As has become the norm this show is now filled with people who have ridiculous valuations & just want to be on tv for the exposure & the gram as they say. The first woman embodied everything that has become wrong with the show, overvalued her company, wanted to look important & never in a million years wanted any sort of deal. Every time a shark so much as offered any type of deal she asked for more than her original ask, she is delulu as they say.

Oh, for the days of people who actually want a deal & are willing to negotiate realistically & are just looking for a little help rather than to be showered with money just because their mommy told them they were wonderful. Most seem to think they are the next Ring as soon as they walk out. Someone needs to tell them that even Ring was called something different & success came a lot later than just being on the show.

Yes I'm annoyed at the whole thing now.

 

[CrazyInAlabama]

14 hours ago, hifihifi said:

Can someone explain to me the Cardio.ap? I don't understand why anyone would want it. Also the guy who owns it needs to learn to speak more slowly.

I think the only reason the Sharks understood the app is that from what I've read the presentation is much longer than the 10 minutes or so that's televised.  I agree the seller really needed to slow down a little. 

The app was a way to compete virtually against other runners, track your progress on a local map, if you're a treadmill runner.  It also helps running groups arrange meeting times and places.   A co-worker used to run at lunch time, and the amount of phone calls, and emails required to schedule everyone's running time was a huge time waster.   So, I can see the scheduling part of the app would be convenient.   And groups that run together for marathons could use it to arrange meeting locations, and track each other if they get separated, or run in different catagories of runners.  

[30 Helens]

As someone who has to wear a dental guard for sleeping, I was very interested in an affordable customized option. I paid a ridiculous amount to my dentist for the custom-fit guard I wear now, but the only alternative was the kind of generic drugstore appliance that does more harm than good. So there is a market for something like this that goes beyond sports.

I had read that the Kind Bar guy was going to be Mark Cuban’s replacement. But then they previewed a slew of upcoming Guest Sharks and I’m wondering if that’s a done deal. Because it looks like we’re in for a bunch of auditions. Based on this episode, I wouldn’t mind seeing more of Rashaun Williams. I would like the new shark to be someone of color, because we’ve seen plenty of Great Whites. A woman of color, even better. 

[CrazyInAlabama]

They seem to have a bunch of guest sharks scheduled this season, they make up for the fact Barbara and Robert aren't there fairly often, and Daymond is out a lot too.   I enjoy some guest Sharks more than others.  I'm fine with Daniel being permanent, and wonder if some other Sharks are eventually dropping out too. 

[Tango64]

I really don't like this show much anymore and just watch it out of habit. It's almost all successful people with successful companies asking for money to be more successful. That's all fine and good for them, I suppose, but I don't find it as enjoyable as watching burgeoning entrepreneurs who really need a leg up.

The fact that they're using more subtitles to explain all the financial jargon is indicative of where the show is now. "What's your CAC on the PYE of the third fiscal year's NRL, compared to your DMO of the net KPQU?"

[seacliffsal]

1 hour ago, Tango64 said:

I really don't like this show much anymore and just watch it out of habit. It's almost all successful people with successful companies asking for money to be more successful. That's all fine and good for them, I suppose, but I don't find it as enjoyable as watching burgeoning entrepreneurs who really need a leg up.

The fact that they're using more subtitles to explain all the financial jargon is indicative of where the show is now. "What's your CAC on the PYE of the third fiscal year's NRL, compared to your DMO of the net KPQU?"

I agree with you.  I think it's indicative of the Sharks no wanting to truly work hard/mentor people from the very beginnings of their 'journey.'  It seems that more and more that Sharks respond with 'it is too early, you're not big enough/sales aren't big enough,' etc.  Of course, the presenters are also asking for huge amounts of money for very little percentages.  I still fondly remember the days of '$25,000 for 40%' and the presenters clearly understanding their products/businesses weren't worth much.  Now, they all think their ideas are worth multiple millions of dollars.  On this episode, wasn't one ask 17 times their current sales?  Now it's all 'I'm basing this on future potential growth/sales.'  

I actually think most of the regular Sharks have as many investments as they can handle.  Lori is no longer on QVC and Bed, Bath and Beyond is gone for all of them.  So, they may not be able all of the channels they used to (plus the big shift from retail to online only).

I still watch the show (probably out of habit) but get very frustrated with the unrealistic 'asks' and the lack of new and interesting products.  Snacks, beverages (both alcoholic and non-alcoholic), footwear, and clothes.  Nothing new, nothing innovative.

[Milburn Stone]

I only watch this show in hotel rooms and I never have any idea what season and what episode I'm watching, but I enjoy it in that setting.

I feel like the appeal of this show lies just as much in the sadistic pleasure it gives the audience when a loser shows up, as in the joy it gives the audience when someone who knows their stuff gets the help they need.

As for the sadistic pleasure part, just try to imagine this show consisting only of savvy entrepreneurs and/or geniuses with a great idea who have a shot at scaling up big with the right investor. That would be no fun at all! (And I doubt anybody would watch.)

It's kind of like the business version of The Gong Show.

Edited October 24 by Milburn Stone

[eel2178]

On 10/19/2024 at 1:12 PM, hifihifi said:

I also think that if the owner had been white, he would not have been offered a deal by the 2 Black Sharks.

Even though they didn't admit it, I think this was one of the cases where they wanted to invest in the entrepreneur, not in the product. His ap doesn't do anything that isn't already readily available today. Only 160 people have paid for the premium service which is fewer than 1% of his total customer base which is also very small in number. I see them mentoring him into diving into something else that will actually make money. Hopefully, he's not too stubborn to listen.

[eel2178]

On 10/19/2024 at 10:55 AM, tired and hungry said:

First pitch lady was not there for a deal. There's no way they were going to accept 1M for 10%.. TBH the drinks & beverages pitches are a dime a dozen nowadays. 

I'm also not buying that there is nothing hallucinogenic about those mushrooms since she forgot to put her shirt on before coming out to make her presentation. Not even the huge earrings distracted from the undergarment she was wearing with her suit jacket. You'd think someone with a J.D. and an M.B.A. would have learned how to dress professionally and give a presentation professionally. I'm all for revoking her diplomas. 

[ljenkins782]

On 10/26/2024 at 9:51 PM, eel2178 said:

Even though they didn't admit it, I think this was one of the cases where they wanted to invest in the entrepreneur, not in the product. His ap doesn't do anything that isn't already readily available today. Only 160 people have paid for the premium service which is fewer than 1% of his total customer base which is also very small in number. I see them mentoring him into diving into something else that will actually make money. Hopefully, he's not too stubborn to listen.

That could be it, which could still be a win for the entrepreneur. Even if they wanted to install him in a position within one of their companies, that could be an opportunity. 

The app seemed like a retread of other available apps or services and not something people would pay that much for.