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

Summary

In this episode of Shark Tank, Melissa Carbone from 1031 Productions seeks $2 million for a 10% stake in her horror-themed live attractions business, highlighting successful seasonal events like the Los Angeles Haunted Hayride. Despite impressive revenue, the sharks question her $20 million valuation. Yellow Leaf Hammocks, a socially conscious company, aims to alleviate stress with their high-quality, handmade hammocks, offering a unique, relaxing experience. They secure a $1 million investment for 33% equity after an initial ask of $400,000 for 7%. Lastly, Spark Charge introduces a portable EV charger to combat range anxiety, securing a $1 million deal for 15% equity after an initial 6% offer.

Takeaways

• 🎭 The entrepreneur, Melissa Carbone, seeks $2 million for 10% equity in her horror entertainment company, 1031 Productions.
• 👻 1031 Productions is known for the Los Angeles Haunted Hayride, a popular seasonal attraction, and the Great Horror Camp Out, a summer event.
• 💸 The company's valuation of $20 million is based on annual revenues, with the Haunted Hayride generating $1.8 million in 17 days.
• 📈 Melissa plans to expand with a New York Haunted Hayride and is in the 'launching new attractions' phase, which is capital-intensive.
• 🗣️ The Sharks express concern over the high valuation and the business's reliance on seasonal attractions, questioning the scalability and risk.
• 🤝 After negotiations, Melissa agrees to a deal for $2 million in exchange for 20% equity, highlighting the Sharks' interest in her business model.
• 🌴 Yellow Leaf Hammocks, presented by Rachel and Joe, offers a socially responsible hammock business that empowers rural women in Thailand.
• 🌟 They seek $400,000 for 7% equity and have a product line ranging from $49 to $299, with a flagship product, the Hammock Throne, priced higher.
• 🌐 Yellow Leaf has strategic partnerships, including a deal with Virgin Voyages, and is projected to double their business through such alliances.
• 📊 The company has shown profitability, with $110,000 net income on $860,000 in revenue the previous year, aiming for $1.3 million in sales the current year.
• 🔋 Spark Charge introduces a portable and modular EV charger to combat 'range anxiety', seeking $1 million for 6% equity in their innovative solution.

Q & A

What is the name of Melissa Carbone's company and what does it do?

Melissa Carbone's company is called 1031 Productions. It creates, owns, and produces live attractions in the horror space.

What is the most popular attraction produced by 1031 Productions?

The most popular attraction produced by 1031 Productions is the Los Angeles Haunted Hay Ride.

How much revenue does the Los Angeles Haunted Hay Ride generate in 17 days?

The Los Angeles Haunted Hay Ride generates approximately $1.8 million in 17 days.

What is the Great Horror Camp Out and how does it differ from the Haunted Hay Ride?

The Great Horror Camp Out is an overnight, completely immersive camping experience with a horror theme. It is different from the Haunted Hay Ride as it is designed to be a summer attraction and aims to make the company not just seasonal.

What is the cost structure of producing the Los Angeles Haunted Hay Ride?

It costs $1.2 million to produce the Los Angeles Haunted Hay Ride, leaving a free cash flow of $600,000 after the event.

How does 1031 Productions market their attractions?

1031 Productions spends about $300,000 on advertising, with a focus on radio marketing, given Melissa Carbone's background in running Clear Channel Los Angeles.

What is the valuation that Melissa Carbone is seeking for her company on Shark Tank?

Melissa Carbone is seeking a $20 million valuation for her company, seeking $2 million for a 10% stake.

What is the final deal that Melissa Carbone agrees to on Shark Tank?

Melissa Carbone agrees to a deal for $2 million for 20% of her company.

What is the name of the product Yellow Leaf Hammocks is introducing to the market?

Yellow Leaf Hammocks is introducing the Hammock Throne, an indoor-outdoor hammock chair.

What is unique about the Yellow Leaf Hammocks business model?

Yellow Leaf Hammocks operates as a social enterprise, working with moms in rural Thailand to create high-wage jobs and produce their products.

What is the sales forecast for Yellow Leaf Hammocks for the year they appeared on Shark Tank?

Yellow Leaf Hammocks is forecasting $1.3 million in sales for the year they appeared on Shark Tank.

What is the business model of Spark Charge and what problem does it solve?

Spark Charge offers a portable modular and ultra-fast EV charger to solve the problem of range anxiety for electric vehicle owners by bringing the charging station to the vehicle.

What are the three core features of the Spark Charge product?

The three core features of the Spark Charge product are modularity, portability, and speed, allowing it to provide 1 mile of charge every 60 seconds.

What is the cost structure for Spark Charge's product and how is it sold to customers?

The cost of goods for each module is roughly $2,500. It is sold with a $1,000 deposit and a $150 monthly fee.

What is the deal offered by the Sharks to the founders of Spark Charge?

The deal offered to the founders of Spark Charge is $1 million for 10% equity, with an additional 2% advisor equity and a board seat.

Outlines

00:00

🎭 Horror Entertainment Business Seeks Investment

Melissa Carbone from Los Angeles introduces 1031 Productions, an entertainment company specializing in horror-themed live attractions. The company is seeking $2 million for 10% equity. Their flagship attraction, the Los Angeles Haunted Hay Ride, operates seasonally and has been highly successful, with sell-out nights and a profit of $600,000 after costs. They also launched the Great Horror Camp Out, an immersive summer attraction. Despite the high valuation request, Melissa argues that the company's potential for growth justifies the valuation, mentioning interest from major entertainment companies. The sharks express concerns about the valuation and the scalability of the business model, leading to a tense negotiation.

05:01

🧘‍♀️ Relaxation Hammock Business Aims for Global Impact

Rachel and Joe, the Chief Enthusiasm and Chief Relaxation Officers, present Yellow Leaf Hammocks, a company that offers a modern take on the traditional hammock. They seek $400,000 for 7% equity. The company has created a no-wobble design and a soft fabric to prevent rope burns, aiming to provide relaxation solutions. They've introduced the Hammock Throne, a space-saving chair that can extend into a full-length hammock. Yellow Leaf Hammocks operates as a social enterprise, creating high-wage jobs for mothers in rural Thailand. The company has experienced significant growth, with $860,000 in revenue last year and a projection of $1.3 million this year. The sharks show interest in the product and the social mission, leading to a discussion about valuation and potential investment.

10:02

🚗 Portable EV Charger Targets Range Anxiety

Chris and Josh, co-founders of Spark Charge, introduce a portable, modular, and ultra-fast EV charger designed to alleviate range anxiety for electric vehicle owners. They seek $1 million for a 6% stake in their company. The charger, called the RO, can be connected in modules to provide the desired range, is portable for use anywhere, and charges at a rate of 1 mile per minute. The founders highlight their strategic growth, including a partnership with AAA and the development of their own manufacturing facility. They've raised $5 million, a mix of venture capital and grants. The sharks question the business model, the cost of production, and the scalability of the company, leading to a debate about the valuation and the potential for consumer products.

Keywords

💡Entrepreneur

An entrepreneur is an individual who organizes and operates a business, taking on financial risks to do so, with the goal of making a profit. In the context of the video, Melissa Carbone is an entrepreneur who runs 1031 Productions, an entertainment company specializing in horror-themed live attractions. Her role as an entrepreneur is central to the video's theme of business investment and growth.

💡Valuation

Valuation refers to the process of determining the value of a company or an asset. In the video, Melissa Carbone seeks a $2 million investment for a 10% stake in her company, which implies a valuation of $20 million. The sharks debate the accuracy of this valuation, questioning whether the business is worth the amount she is claiming based on its revenue and potential for growth.

💡Haunted Attraction

A haunted attraction is an entertainment venue designed to scare and entertain visitors, often featuring themes of horror, such as zombies and supernatural entities. The video's theme revolves around 1031 Productions, which creates and operates such attractions. The Los Angeles Haunted Hay Ride is one of their popular attractions, and it exemplifies the immersive and interactive nature of experiential entertainment.

💡Seasonal Attraction

Seasonal attractions are events or entertainment offerings that are available or more popular during a particular season. The Los Angeles Haunted Hay Ride is described as a seasonal attraction, operating for 17 nights and capitalizing on the Halloween season to draw in visitors. This concept is important as it influences the company's revenue model and the need to diversify their offerings to maintain profitability year-round.

💡Immersive Experience

An immersive experience is an activity that fully involves the audience, often blurring the lines between the audience and the performers. The Great Horror Camp Out is described as an overnight, immersive camping experience with horror themes, aiming to provide a summer attraction to complement the seasonal Haunted Hay Ride. This concept is key to understanding the company's approach to creating memorable and engaging entertainment.

💡Shark Tank

Shark Tank is a television series where entrepreneurs pitch their business ideas to a panel of investors, or 'sharks,' who may choose to invest their own money in exchange for equity. The video script is a transcript from the show, where Melissa Carbone and other entrepreneurs present their businesses to the sharks, seeking investment and advice.

💡Investment

Investment in this context refers to the act of putting money into a business or project with the expectation of generating an income or profit. The entrepreneurs on Shark Tank are seeking investments from the sharks to grow their businesses. The sharks evaluate the potential return on investment based on the entrepreneurs' pitches and financials.

💡Revenue

Revenue is the income generated from the sale of goods or services. In the video, Melissa Carbone discusses the revenue generated by the Los Angeles Haunted Hay Ride and the potential revenue from new attractions. Revenue figures are crucial for the sharks to assess the financial health and growth potential of the businesses presented.

💡Profitability

Profitability refers to the ability of a business to generate profit, which is revenue minus expenses. The sharks are interested in the profitability of the businesses presented, as it indicates the potential return on their investment. In the script, the profitability of the Yellow Leaf hammocks is discussed, with a focus on net income and future projections.

💡Social Enterprise

A social enterprise is a business that aims to achieve social, environmental, or cultural objectives alongside its commercial goals. Yellow Leaf hammocks is described as a social enterprise, working with weavers in rural Thailand to create high-wage jobs. This concept is important as it highlights the company's mission-driven approach to business, which can be appealing to investors looking for social impact.

💡Product Roadmap

A product roadmap is a plan that outlines the future development of a product or a series of products. In the video, the entrepreneurs from Yellow Leaf hammocks mention a 'huge product roadmap of solutions,' indicating their strategy for expanding their product line and growing their business. This concept is relevant as it shows the company's vision and potential for innovation.

Highlights

Melissa Carbone from Los Angeles introduces 1031 Productions, an entertainment company specializing in horror-themed live attractions.

The company's most popular attraction is the Los Angeles haunted hay ride, known for its immersive and terrifying experience.

1031 Productions seeks $2 million for 10% equity, implying a $20 million valuation.

The company operates year-round with seasonal and summer attractions, aiming to overcome seasonality.

The Los Angeles haunted hay ride generates approximately $1.8 million in 17 days, with production costs around $1.2 million.

The Great Horror Camp Out is a new overnight camping experience designed to keep the business operational year-round.

Marketing and advertising for the attractions are primarily done through radio, leveraging Melissa's background in Clear Channel Los Angeles.

The company has plans to expand to New York and other cities, seeking investment for this growth.

Shark Tank investors express concerns about the company's valuation and the risks associated with the business model.

Despite the valuation debate, an investor agrees to a deal for $2 million in exchange for 20% equity, valuing the company at $10 million.

Rachel and Joe introduce Yellow Leaf hammocks, a socially conscious business creating high-wage jobs in rural Thailand.

Yellow Leaf hammocks are designed for modern consumers, addressing common issues like wobble and rope burn.

The company presents the Hammock Throne, an indoor-outdoor hammock chair, as a new product innovation.

Sales for the current year are projected to reach $1.3 million, showing significant growth from the previous year.

A strategic partnership with Virgin Voyages is highlighted, with plans to place hammocks in every cabin.

The company's products are sold at a range of $49 to $299, with a cost of goods around $44 for the $199 hammock.

An investor offers $1 million for 33% equity, valuing the company at $3 million and recognizing its social impact.

After negotiations, the founders accept an offer of $1 million for 25% equity, a significant investment for the company's growth.

Chris and Josh from Spark Charge introduce the RO, a portable and ultra-fast EV charger designed to alleviate range anxiety.

The RO's modularity allows for customizable charging solutions, with the ability to charge an EV at a rate of 1 mile per minute.

The company has a strong sales trajectory, with half a million in sales in six months and projections of $10 million by the end of next year.

Spark Charge has a patented product and has built its own manufacturing facility in Buffalo, New York.

The company has raised $5 million in total, a mix of venture capital and grants, with over 50% ownership remaining.

An investor offers $1 million for 10% equity, with an additional 2% advisor equity and a board seat, valuing the company at $10 million.

The deal is accepted, marking a significant investment to scale the business and meet the growing demand for EV charging solutions.

Transcripts

[Music]

next into the tank is an entrepreneur

who believes there's big money to be

made from Big

[Music]

scares everywhere I go there's zombies

hi s I'm Melissa Carbone from Los

Angeles my company is 1031 Productions

and I'm seeking $2 million in exchange

for 10% of my

[Music]

company wow 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 hay ride and

it is not for the faint of heart sharks

when you take our hay ride you are

entering the pitch black woods where

demonic forces lost souls Psychopathic

fun are waiting around every

[Music]

turn

bites and just when you think the terror

is over think again oh God

oh my

God he likes you don't eyeball me I will

kick your tush back to Texas Mark get

him okay Melissa you know what's really

scaring the crap out of me is your

valuation so $2 million for 10% imputes

a $20 million value on this scary hair

ride business tell us why you're worth

$20 million 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

dollar right now per

October 1.8 is really good in 17 days 1

days we have another attraction called

the Great Horror camp out that we just

launched which is the 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 so it's

12 hours we B we we take 2,000 campers

we put them in tents and we have an

incredibly interactive experience that

includes everything from a h 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 to

produce the Los Angeles haunted hay ride

so 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 attractions 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 there in lies

the rub right because they're very very

very expensive to to produce and create

right well C the camp outs are cheap to

produce how much advertising or

promotion do you do we spend about

$300,000 we do a ton of radio my

background is I I ran Clear Channel Los

Angeles for 10 years so my um

advertising marketing and one of and my

other business partner is actually still

with Clear Channel so we know how to

make a dollar go really far from a

market how how many Unique Individuals

come through the hay ride we have we

have 50,000 people we sell out every

single night so this year is our first

year we increase 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 the it's going to 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 mhm 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 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 M 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 greedy Pig

I not greedy I have lots of lots of high

hopes for the company and I want to grow

fast just because a Hollywood boo

offered you a $20 million valuation you

know what the horror show is listen to

you argue about valuation all the time

well they want just give her $2 million

for 10% I am projecting for the New York

h heroid which hasn't happened yet cuz

it's the same model in La we're just

plopping it there done it yet Let Go Let

Her Go geographically it's a different

model because it never rains in La

listen I I I I don't agree that your

risk analysis is correct it never

happens that everything you roll 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 EXP 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 $2

million 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

will 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 soow the offer

yeah okay well then I'll give you $2

million for

40% okay

Mark come on Mark is that a yes or a no

to him um can I counter of course you

can

counter um 2 million for

20% I'll take that offer

done

really

yep awesome we have a deal all right we

have a deal wow easy breezy I love it

thank you I'm

so holy cow you ow me 5% for helping you

on that totally you can have free

tickets for that hunted ha thank you so

much you guys good apprciate it I don't

know what just happened wait a minute I

lost out on a deal com to S yeah you

just

did I think that the next generation of

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 2 m

I'd have to rise from the dead and look

like that before I get you already have

Kevin are we excited are we excited mark

on board and $2 million this is the

biggest deal ever I'm so excited this

changes the game for

us

wow 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 $400,000 in exchange for 7% 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

indooroutdoor hammock chair that makes

it possible to relax absolutely anywhere

with the hammock thrown 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

fulllength hammock large enough for a

7ot person all within a diameter of just

3 and 1/2 ft wow and it swivels

360° so you can angle it to gaze out the

window or relax while you watch Shark

Tank first we perfected the hammock now

we 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 oh 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 $1.99 ooh that's not bad our

current line rang is between $49 and

$2.99 the $999 hammock how much do you

pay for it $44 Is Our Land cost so what

is an average hammock made out of

something like this what does that cost

you can find a hammock for $30 on Amazon

to be perfectly honest not it's not

going to feel like this it's not going

to look like this Rachel how much is the

contraption so this is the brand new

hammock Throne this is our highend

hanging solution that we've just

introduced it's the first your product

you made yeah we did um 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 a story of how you get here our

inspiration to start this was to

literally end poverty and 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 a

I know 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

tribe 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 it came home with a

backpack stuff full of hammocks and I

came home to Rachel I was thrilled that

my boyfriend wanted to put his Finance

job and start a hammock company as you

can imagine yeah I was l a great

idea 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 director consumer sales

to our website as well as strategic

Partnerships a big part of our early

wholesale was kind of scattershot patio

stores we took a step back from that to

focus on strategic Partnerships who uh

it's Virgin uh 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

for from them for these they they pay

our wholesale price but they'll also be

um retailing them so they'll we'll be on

the room service menus in the on 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 uh net income was

110,000 that's great after paying

yourself after paying ourselves yeah joh

Rachel yes here's my offer bam L of the

five sharks here I probably have the

most cred potentials about building

socially impactful businesses so I

understand the challenges you're facing

I really love a lot of what you stand

for but you have $100,000 profit with a

crazy $5.7 million valuation so my offer

is as follows and it's an explosive

offer I want 33% of the company that'll

give you $1

million wow say yes or no and then it's

done

all sharks are still in Rachel and Joe

are seeking $400,000 for a 7% 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 $1 million say yes or no

and then it's done W $1 million 33%

you you mentioned our profitability on

last year I want to mention our

profitability on this year and what

we're doing next fair to us and I think

you 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

road map of

solutions stop talking and take the deal

he's paying you over eight times might

be another deal that's an amazing offer

we also recognize that we might not need

all of that money right now we also you

do it all right well hey if you don't

need all the money right now I'm going

to make you an offer we don't we're not

prepared to give away that much

that I mean I sit here I listen a Ham

Company 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 a grant his might be

better offer for you a million dollar

for the 25% and both of you I don't want

to go to the million I about 500,000 for

25% that that what's your counter for

25%

600,000 for

14% oh

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%

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

business the total we ever raised in our

entire history was $5.2 million and we

we sell over a billion dollars in sales

I'll teach you and I'll help you run the

business in efficient way are you okay

with 33% or is that too much for you I

think it's too much because what's the

maximum that you're willing to do for

someone that's going to really rooll 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

subsequent round when I started my

business started with one product I took

out a bank loan 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 on all these investors and take in

a whole ton of money you just need to be

strategically smart and taking the right

investor but you need some that's the

bottom line so I'm going to change my

offer my offer is this I'm going to go

$200,000 flat then I'm going to give you

a loan of

$200,000 at 7% I'm going to fund

purchase orders if you need them and I'm

going to ask for

177% you may like 4,000 the one thing

that I can offer is 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 help 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

you what do you do $1 million for 25%

[Music]

just because I love

you we're going to change the life I

never thought he'd go down it's never

happened before in Shark Tank history

when someone came in here for 400,000

and walked out with a million I'm really

excited to work with you make a huge

difference I'm so thrilled thank you

congats 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 6%

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 running out of charge in your

electric vehicle that's why I would love

to introduce you to the roie 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 RO 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 1 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 that wa 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 would carry this is AAA a

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 uh 2500 and then

companies pay $1,000 deposit and then we

Char them 150 Buck monthly fee okay so

it's 150 bucks per month per module yep

yes in the past 6 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 g 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' probably raised

about 3 million in Venture and the rest

has been about Awards which comes about

2 million so probably about 5 mil very

smart and so what percentage of the

company do you guys own Now versus what

the investors own 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 going to 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 we have no you've raised 4

million right we raised 5 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

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 so tell me again

what it cost you to make 2500 and so

your payback time 12 months

approximately 12 months how much are you

charging then if it's 12 months and it's

20 if it's $150 a month they pay $1,000

deposit oh they pay $1,000 deposit or is

an actual $1,000 of Revenue it's a

$1,000 deposit it's non-refundable so

it's not a deposit then it's actually

$1,000 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 oface 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 will

that retail for depending on scale we

might be able to get it for under, 1500

how many units are being used right now

today only 50 units you're back ordered

right now then 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 Lor 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 th000 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 Ian Mark is Mr

technology like I will always look to

him to understand things that I don't

actually understand when it this is more

a capital issue so are you interested

Mark 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

going to have to borrow money not raise

money because if you raise more money

that you guys aren't going to 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 6% is nowhere

near enough particularly for two of us

right so laor 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 dollar for 10% it's split 50/50

but we'll also throw in 2% advisor

equity and a board seat 2% each

U 2% each we can do 2% each so we would

go 500 500 7% 7% right five five and two

basically we have a deal we got a deal

we have a deal Char let's charge this up

we are going to do du I the chance of

you getting a deal was Zero no so I'm

just saying I'm just saying luck I think

the best person in this deal is Lori who

got a free ride off of Mark was back

she's a bottom people I like your style

Lori congratulations guys appr

guys it was the most exhilarating route

in my life we really want to dig in and

start building this business to be a

billion dollar business with 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 celebrate raising money as

if that's like profitability