Shark Tank US | Three Sharks Come Together For First Defense Nasal Screen

Summary

In a compelling pitch to the Sharks, Joe Moore, President and CEO of First Defense Nasal Screen Corporation, seeks $500,000 for 10% of his company. He introduces a unique, clinically proven nasal screen designed to reduce inhalation of allergens and pollutants by up to 99%. Despite an initial $1 million offer, Moore holds out for a deal valuing his company higher, eventually securing $1.2 million for 30% equity and a 10% perpetual royalty, showcasing his belief in the product's potential in a billion-dollar industry.

Takeaways

• 😀 Joe Moore is the president and CEO of First Defense Nasal Screen Corporation, seeking $500,000 for 10% of his company.
• 🏥 First Defense Nasal Screens aim to reduce the inhalation of allergens, pollutions, pet danders, molds, and viruses by up to 99%.
• 🌐 The product has potential worldwide appeal, especially in societies where face masks are common.
• 📈 Joe has an $8 million contract from a client in the United Arab Emirates for 8 million units over the next six years.
• 💡 The nasal screens are non-inserted, lightweight, and almost non-visible, using a nonwoven material that closes upon inhalation and flushes upon exhalation.
• 📝 Joe holds patents for the product in the United States, Canada, and Europe, and they have been in place for 3 years.
• 💰 The requested $500,000 investment is intended to cover upfront costs of raw materials for the large order.
• 🤔 Some investors expressed concerns about the high cost of educating the market about the product.
• 💼 Joe turned down multiple offers, including a $1 million offer for the entire company, believing in the product's potential in a billion-dollar industry.
• 🎯 The final deal was $750,000 for 30% equity and a 10% perpetual royalty, which Joe considered after other offers were declined.
• 🤝 The deal was closed with an agreement that included season tickets as part of the deal, reflecting a mutual enthusiasm for the partnership.

Q & A

Who is Joe Moore and what is he presenting in the Shark Tank?

Joe Moore is the president and CEO of the First Defense Nasal Screen Corporation. He is presenting First Defense Nasal Screens, a lightweight, non-inserted, almost non-visible nasal screen designed to reduce the inhalation of allergens, pollution, pet danders, molds, viruses, and more by up to 99%.

What is unique about the First Defense Nasal Screens according to Joe Moore?

The First Defense Nasal Screens are the first and only non-inserted, almost non-visible nasal screens that have been clinically proven to reduce the inhalation of various contaminants.

What is the financial ask from the investors in the Shark Tank?

Joe Moore is seeking $500,000 for 10% of his company.

How many units of First Defense Nasal Screens have been sold prior to the Shark Tank presentation?

Joe Moore mentions that they have not gone to market yet, but they have one big client from the United Arab Emirates with an order for 1.7 million units and a contract for 8 million over the next six years.

What is the wholesale price of each First Defense Nasal Screen?

The wholesale price for each unit of First Defense Nasal Screens is 60 cents.

What is the purpose of the $500,000 investment according to Joe Moore?

The $500,000 investment is needed to keep producing the nasal screens due to the requirement of buying raw materials upfront.

What is the patent situation for the First Defense Nasal Screens?

Joe Moore confirms that they have a patent for the product in the United States, Canada, and Europe, and they have held these patents for 3 years.

Why did Joe Moore decide not to license the product to a big drug company?

Joe Moore initially approached a large drug company, but they considered the product a competitor and said they would shelf it, preferring to treat the condition for $14 rather than prevent it for a dollar.

What is the total amount of money invested into the First Defense Nasal Screen project so far?

Joe Moore mentions that almost one million dollars have been invested into the project, with $600,000 of it being his own money and the rest coming from friends and family.

What was the final offer made to Joe Moore in the Shark Tank?

The final offer made to Joe Moore was $750,000 for 30% of the company and a 10% perpetual royalty.

How did Joe Moore respond to the various offers made by the Sharks?

Joe Moore considered the offers carefully and negotiated for better terms. He eventually accepted the final offer of $750,000 for 30% equity and a 10% perpetual royalty.

Outlines

00:00

🛡️ Introducing First Defense Nasal Screens

Joe Moore, the President and CEO of First Defense Nasal Screen Corporation, enters the Shark Tank seeking $500,000 for 10% of his company. He introduces a nasal screen designed to reduce the inhalation of allergens, pollution, pet danders, molds, and viruses by up to 99%. Moore reveals that although they have not yet entered the market, they have a contract for 8 million units over six years from a client in the United Arab Emirates. The Sharks express interest, but also confusion, as Moore clarifies that they have not yet sold any units but have a significant order. The discussion revolves around the product's potential, the existing patent, and the intended use of the investment funds for raw material acquisition.

05:01

💸 Shark Offers and Negotiations

The Sharks begin making offers, with one offering $500,000 for 20% equity and a 15% royalty until the investment is recouped. Another Shark counters with a $1 million offer for the entire company, which Moore declines, expressing his belief in the product's potential in a billion-dollar industry. A third Shark offers $2 million for the business with a 10% royalty, which Moore considers but seeks clarification. The Sharks discuss strategies, emphasizing the importance of partnering with those who have experience selling billion-dollar products. Moore is torn between the offers, highlighting the complexity of the negotiations and the high stakes involved in the decision to sell equity or the entire business.

10:03

🤝 Final Deal and Reflections on Entrepreneurship

After a period of discussion among the Sharks, a new offer is presented to Moore: $750,000 for 30% equity and a 10% perpetual royalty. Moore considers the offer, asking to increase it to $1.2 million to cover his first order, but the Sharks refuse, stating they are now partners and will finance future orders. Moore eventually accepts the deal, emphasizing the importance of the Sharks' belief in his product and the potential for a long-term partnership. The Sharks reflect on the dynamics of the deal, acknowledging the entrepreneur's determination and the unique opportunities presented in the Shark Tank environment.

Keywords

💡Shark Tank

Shark Tank is a television show where entrepreneurs pitch their business ideas to a panel of investors, known as 'sharks', in the hope of securing funding and partnerships. In the script, Joe Moore enters the 'Shark Tank' to pitch his product, seeking investment for his company.

💡First Defense Nasal Screens

First Defense Nasal Screens are the product being pitched in the video. They are described as a 'lightweight, non-inserted, almost nonvisible nasal screen' designed to reduce the inhalation of allergens, pollution, and other contaminants by up to 99%. The product is central to the video's theme of innovation and health protection.

💡Allergens

Allergens are substances that can cause allergic reactions in some individuals. In the context of the video, the First Defense Nasal Screens are said to reduce the inhalation of allergens, which is a key selling point of the product and directly relates to the health concerns addressed in the pitch.

💡Clinically Proven

The term 'clinically proven' refers to the scientific validation of a product's efficacy through clinical trials or studies. In the script, it is mentioned that the nasal screens have been 'clinically proven to reduce the inhalation of allergens', which adds credibility to the product's claims.

💡Innovation

Innovation is the process of creating new methods, ideas, or products. The video showcases innovation through the introduction of the First Defense Nasal Screens, which represent a new approach to protecting against airborne contaminants.

💡Investment

Investment in this context refers to the financial backing provided by the sharks in exchange for equity or a share in the company. Joe Moore is seeking $500,000 for 10% of his company, which illustrates the investment process discussed in the video.

💡Equity

Equity in a business context refers to ownership shares. The sharks offer different percentages of equity in exchange for their investment, which would give them a stake in the company's future profits.

💡Royalty

A royalty in a business agreement is a payment made to the owner of a product or intellectual property for the right to use it. In the script, offers include a '15% royalty on every unit sold until the investment is recouped', which is a form of compensation for the investors.

💡Market

The term 'market' refers to the commercial environment where products are sold. Joe mentions that they 'haven't gone to market yet', indicating that the product is not yet widely available for sale, which is a significant point in the business's development stage.

💡Patent

A patent is a form of intellectual property that gives the inventor exclusive rights to their invention for a certain period. Joe states that he has a patent for the nasal screens in the United States, Canada, and Europe, which protects the product from being copied by competitors.

💡Billion-dollar industry

This term refers to an industry with the potential to generate billions of dollars in revenue. The video suggests that the market for products like the First Defense Nasal Screens is part of a 'billion-dollar industry', emphasizing the potential scale and profitability of the business.

Highlights

Joe Moore introduces the First Defense Nasal Screen, a unique solution to protect against germs and allergens.

The First Defense Nasal Screens are the first non-inserted, almost non-visible nasal screens clinically proven to reduce inhalation of allergens and pollutants by up to 99%.

Joe is seeking $500,000 for 10% of his company, which has a product that could be revolutionary for treating nasal allergies.

The company has already secured a contract for 8 million units over the next six years from the United Arab Emirates.

The screens are designed to be easily applied, peel and stick, for instant protection against contaminated air.

The product could be popular in societies where face masks are common, indicating a potential for global market acceptance.

Joe has a patent for the First Defense Nasal Screens in the United States, Canada, and Europe.

The funds sought would be used for raw material acquisition to fulfill the large order from the Middle East.

The Sharks express doubt about the marketability of the product and the high cost of educating consumers about its use.

Joe reveals his personal motivation for creating the product, being a cancer survivor and wanting to improve people's quality of life.

A Shark offers $500,000 for 20% equity with a 15% royalty until recouping the investment, sparking negotiations.

Another Shark counters with an offer of $1 million for the entire company, but Joe is hesitant to sell out completely.

A third Shark joins the bidding, offering $800,000 for 30% equity with a 10% royalty, complicating the negotiations.

The Sharks discuss strategies, with one suggesting bringing a competitor into the deal to strengthen their position.

An offer of $2 million for the entire business is made, with a 10% perpetual royalty, indicating high confidence in the product's potential.

Joe considers the offers, valuing the potential of his product and his desire to remain part of the company's growth.

The final deal is struck for $1.2 million, with 30% equity and a 10% perpetual royalty, demonstrating a significant investment in the product's future.

The Sharks commend Joe for his belief in his product and his ability to negotiate a favorable deal.

Transcripts

next into the Shark Tank is Joe Moore

with a unique solution to protect

against germs and allergens hi my name

is Joe Moore I am the president and CEO

of the First Defense Nasal screen

Corporation and I'm seeking $500,000 for

10% of my

company every day people flought

emergency rooms doctor's offices and

pharmacies seeking relief from inhaling

contaminated air and one out of every

five commercials on TV today is about

the treatment of nasal allergies that's

why I invented First Defense Nasal

[Music]

screens First Defense Nasal screens are

the first and only lightweight

non-inserted almost nonvisible nasal

screen ever invented and they have been

clinically proven to reduce the

inhalation of allergens pollin

pollutions pet danders molds viruses and

more by up to

99% and the next time you're faced with

unhealthy contaminated air we remember

don't get sick just peel and stick thank

you any

[Music]

questions are you kidding

me

um um I'm I I'm I'm not um I just know

that like I said how big this really is

$500,000 for 10% of the company how many

have you sold actually right now about

1.7

million 1.7 million units or 1. 7

million in total sales 1.7 million units

how much you sell them for wholesale was

60 cents so your sales last year were

how much Joe actually we just we're not

we haven't gone to market yet sorry I'm

confused if you haven't gone to Market

how have you sold 1.7 milon actually we

have one big client out of the United

Arab Emirates that has actually put in

their first order and given us a

contract for 8 million over the next six

years so you have an order for $8

million yes sir right now yes sir matter

of fact

I have the contract right here that's a

prepared man right there good for you

thank you well all of a sudden you don't

look that funny with that stuff stuck up

your nose can I see that yes you can you

know you don't sound like the boo I

thought you were is this a product that

perhaps is is going to be very popular

in other societies where face masks are

more prominent than they're here State

Side definitely this is a worldwide

product cuz I mean you know you're

wearing them right now I can see them

it's probably an issue for many many

people that are going to look at that

and say what you got stuck up your nose

I see the actual product yes

ma'am sorry Robert the distributor

guarantees that he'll order one am I

reading this correctly 1,500,000

sets yes sir that's for Saudi Arabia

alone they've already ordered those and

how much is he guaranteeing you uh he's

guaranteeing me the 8 million over the

next um six years how does the filter

work basically how the Filter

Works is as you breathe in it's a

nonwoven material so it closes and as

you breathe out it flushes itself does

it stop viruses bacterial it does what's

the stop you from taking the germs in

through your mouth that's a great

question 90% of the air we breathe goes

through our nasal passages also viruses

do not grow in the mouth the esophagus

or line in the stomach they grow in the

nasal passage is there a patent that

protects this yes sir I have we have a

patent penny in the United States Canada

and Europe and have been for 3 years and

what would you use the money for the

money for right now is so that I can

keep producing it because of the raw

materialss I have to buy up front so

basically you need the 500,000 to make

the order correct okay tell me if I'm

putting these in right so I just take it

the best way to do it put it on your

finger like a contact touch your nasal

passage slide it around the outside

slide it around the inside Joe let me

ask you a question why not just go

license it to one of the big drug

companies um because I I did that

originally I went to one of the biggest

in the United States and they told me we

were actually a competitor and if they

took the product they would shelf it

because why would they prevent it for a

dollar when they could treat it for 14

how much money have you put into this I

mean we have almost one million do into

this and where did that money come from

um about 600,000 of it was mine the rest

is from friends and family I think I'd

have a very hard time understanding at

all what the product is about unless you

had these big photos with the noses and

unless you're standing there pitching it

because I think the cost of educating

people is the Big Kahuna here Joe based

on that I'm

out okay

I'm intrigued I got to tell you let me

throw an offer out to you I'll give you

the 500,000 and I want a 15% royalty on

every unit sold until I recoup my

$500,000 okay just the royalty no equity

are you kidding of course I want the

equity I took the risk now here's my

Equity I want

20% you have an offer for me what do you

want to do um I would definitely like to

hear what everybody else has to say

consider they're not interested they

never told me they were out because of

their silence you know they're not

interested not necessarily

true not necessarily true we can work

together on

this okay you got a deal yeah I like

[Music]

that I like how cuddly they are but I

want to give you $800,000 for

30% with 10%

royalty oh come

on screw that I'll give you a million

dollars for the whole company right

now I can appreciate and I appreciate

the offer I really do but um I would

definitely you just turned down a

million dollars yes

sir I I I I couldn't take a million

dollars I know that this is a billion

dollar industry is there a number you

would take

to sell the whole company one not

without a royalty no with a royalty very

possibly yes what's the

royalty I believe that with the

statistics and the research we've done

the royalty would have to be 10% wow and

then what's the number on the

company I I would like to stay part of

it to be honest with you because it's my

passion I um I'm going to show you

something I am a Cancer I am a I am a

cancer survivor I'm a cancer survivor by

the time I was 19 years old I've been

through the Army I've been through the

Marine Corps I've been Halfway Around

the World I fought all my life and doing

different things I believe in this more

than anything else because I've gotten

testimonials of people say you've

changed my life you've changed the

quality of my

life I'll give you a million dollars I

want 30% of the company also 10% royalty

until I recoup the

money Joe I'll give you $2 million for

the whole

business and the 10% royalty you ask for

back to

you I just love this whole thing we're

about to make you a millionaire just

like that but I I I have three offers

that I'm kind of confused I'd like to

have them a little bit more clear if I

can the first offer was

$500,000 for 20% Equity you're still the

80% owner and my partner Mark and I

apply a 15% royalty just till we get our

$500,000 back that's all then that

royalty excuse ex before you start let

me finish with one thought that's going

to stick in the back of your mind

there's only only two sharks here that

have ever sold a company for over a

billion dollars I'm one Cuban's the

other guy all right it's billions B

everybody else is an M Millions small

big big difference you want the billion

dollar Partners not the small

front I've sold billions I've sold

billions of dollars worth of product and

still doing it now actually in Asia

right now so I have the offer of $1

million 30% of the company and the same

royalty fee but less than theirs 10%

royalty until I'm recoup the money Joe a

fundamentally first difference in the

three offers is one is to sell your

whole business my offer is $2 million

for the entire business you get a 10%

royalty you're the guy that runs

a any interest in selling the entire

business today which is the road that

I'm trying to go

down not for $2

[Music]

million would you go to 4

million I would consider taking the very

first deal you were

offered you own 80% of the company we

only get 20 all right we're not Pigs

we're sharks we just want our money back

is is is is that your final offer but

think about it we're leaving you with

80% of the up so you're going to make a

lot more than $4 million down the road

with us as partners I understand that I

understand that's why I I haven't said

yes that's why I'm Joe are you going to

sell this business today or

not possibly very possibly I believe

that um the 4 million is a little

low but I think we're very

close um I think if you went to $5

million and

15% and whether you want me as an

employee which I would really like to to

do with an employee contract because I

want my royalty to be as much as I can I

can get my mind around the

four I can't go up to the

five so I'm

out

dang listen would you excuse us for a

moment

okay so listen it's a very simple

discussion amongst us

very often the best strategy is to take

a competitor like you even though

sometimes I find you distasteful I say

bring him into the deal at our price get

him back out of this what do you think

DJ uh but we need to go up on Equity you

guys want a 20% that's interesting fine

bring him in for a third and go up to 25

no no I think you gave away the farm you

you it was so unev likee when you said

15% only until we get our money back

once we bring Damon into our tent we and

we're the only offer left we can change

our deal so what do you want to do

[Music]

okay before you say anything you know

the currents constantly change in the

Rough Waters of the Shark Tank that's

why I love this place your enemies

become your friends your friends are

become your enemies and sometimes they

bite you in the hiney and sometimes they

don't so what's happened is Damon has

decided to join Mark and I into one

offer now it's great news for you

because there's going to be more money

and I let my partner Mark explain

exactly how great it is for you okay so

what we're going to do is raise our

offer to

$750,000 and then we're going to ask for

30% of the company and a 10% Perpetual

royalty that's our

offer um I would consider your offer I

would the only thing I would ask you to

do is if you go to 1.2 million for the

simple reason that will give me enough

to fill my first order we don't have to

do that because if we own a piece of the

company we're your partners and we have

to finance it but we don't have to pay

for it right now if you need more money

to fund new orders and grow the company

you think we're going to let our Equity

disappear because we couldn't fund a new

order of course not so you get us

without giving up any more Equity with

this

deal don't sell yourself short Joe

listen Joe you got to say yes or no life

is like business it's 20% what happens

to you and 80% how you respond you you

have a moment right now to take this

deal will you take

it does it come with season tickets

absolutely then you got a deal

amen congratulations appreciate it I'm

looking forward to working together

absolutely thank you good job thank you

pleasure meeting

you think about that that's remarkable I

just offered a guy $4 million which is

about as high as that's the beauty of

the show this guy we've never seen

before walked in and had the choice to

be a millionaire and he stuck with it

and he stuck to his guns and he believed

in himself that's what makes this

country great I feel warm and fuzzy I

just made some money