Shark Tank US | Tenikle Entrepreneur Only Has $39 In The Bank!

Summary

In a gripping episode of Shark Tank, Hans Dose from Dana Point, California, pitches his innovative product, Tentacle, a versatile suction mount inspired by the octopus. Seeking $200,000 in exchange for 10% equity in his company, Hans impresses the sharks with his product's utility and waterproof design. Despite facing challenges such as a crowded market and significant debt, Hans' honesty and passion for his invention shine through. After a tense negotiation, he secures a deal with one of the sharks, who offers to pay off his $270,000 debt and invest an additional $100,000 for a 60% stake, with the condition of bringing in experienced partners. The deal is a testament to Hans' resilience and the potential of his product in a competitive market.

Takeaways

• 💡 The entrepreneur, Hans Dose, is seeking $200,000 in exchange for 10% equity in his company, Tentacle.
• 🐙 Inspired by the octopus's ability to multitask with its many tentacles, Hans created a versatile suction mount for various tech devices to free up human hands.
• 💰 The product is sold for $45, with a manufacturing cost of $6.8, allowing for a significant profit margin.
• 📈 Hans has successfully sold over 40,000 units, generating $3 million in sales, and holds a patent for his invention since 2015.
• 🚀 The initial success was boosted by a Kickstarter campaign that raised approximately $172,000, prompting Hans to leave his job to focus on the business.
• 📉 Despite initial success, Hans faced challenges with product reviews on Amazon and a significant investment in inventory that did not sell as expected.
• 💸 Hans has a debt of $270,000 and is currently left with only $39 in his bank account, highlighting the financial risk he has taken.
• 🏠 In an effort to manage debt, Hans and his wife moved into an RV on his mother's property in Menifee, California.
• 🤝 The sharks appreciate the product but express concerns about the crowded market and Hans's financial situation.
• 💼 Offers are made with various terms, including a complete debt pay-off and equity stakes, reflecting the sharks' belief in the product's potential.
• ✅ The final deal is struck for $200,000 for a 30% equity stake, providing Hans with the capital he needs to continue growing his business.

Q & A

What is the name of the entrepreneur presenting the product?

Hans Dose

What is the product called and what is its inspiration?

The product is called 'Tentacle', and it is inspired by the octopus and its many tentacles.

What is the main problem Hans Dose is trying to solve with his product?

The main problem is the difficulty humans face when trying to hold phones while doing something else with their two hands.

What are some of the functionalities of the Tentacle product?

Tentacle can be used as a car mount, bike mount, speaker mount, and even a pickle holder. It is waterproof and durable, supporting weights up to a surfboard.

How much does Hans Dose want to raise for his company?

Hans Dose is seeking two hundred thousand dollars.

What percentage of the company does Hans Dose offer in exchange for the investment?

Hans Dose offers 10% of his company in exchange for the investment.

How much revenue did Hans Dose make in the last year?

Last year, Hans Dose made about 478,000 dollars in sales.

What was the cost of producing the Tentacle product?

The cost to produce each Tentacle product is six dollars and eight cents.

What was Hans Dose's financial situation before appearing on the show?

Hans Dose had 39 dollars in the bank and was in debt for 270,000 dollars.

What was the initial reaction of the sharks towards the Tentacle product?

The initial reaction was positive, with comments on the product's good design and the entrepreneur's passion.

What was the final deal offered to Hans Dose?

The final deal was 200,000 dollars for a 30% equity stake in the company.

What was the reason behind the sharks' hesitation to invest?

The hesitation was due to the high risk involved, the crowded market space, and Hans Dose's vulnerability with very low cash on hand.

Outlines

00:00

🐙 Introducing the Octopus-Inspired Tentacle Product

Hans Dose from Dana Point, California, introduces the 'Tentacle,' a versatile suction mount for tech devices, inspired by the octopus. He seeks $200,000 in exchange for a 10% stake in his company. The Tentacle serves multiple functions, such as a car mount, bike mount, speaker mount, and even a pickle holder, all while being waterproof and durable. Hans shares his journey from designing a prototype to launching a successful Kickstarter campaign, raising $172,000. Despite initial success, Hans is now facing financial challenges due to a lack of marketing funds and an excess of inventory. He has a patent for the product, which he developed while working as a designer in the surf industry. The Sharks inquire about sales figures, costs, and the product's market performance.

05:00

💸 Sharks Consider Investment Amid Financial Struggles

The Sharks express concerns about Hans' financial situation, with only $39 in the bank and significant inventory unsold. They discuss potential strategies for selling the product, such as attending flea markets. Hans reveals that he has $270,000 in debt and has made $478,000 in sales the previous year but only $9,000 the month before. The Sharks debate the product's market potential and the risks involved in investing. One Shark offers to pay off Hans' debt and provide additional funding for a new company, in exchange for a 60% stake. Another Shark shares a personal story of financial struggle and offers $200,000 for a 30% stake, which Hans accepts after some negotiation.

10:00

🤝 Finalizing the Deal with a Sharks' Offer

After a tense negotiation, Hans agrees to a deal with one of the Sharks. The Shark offers $200,000 for a 30% stake in the company, which Hans accepts. The deal is finalized with a handshake, and the Sharks express their belief in Hans' ability to execute and grow the business. The Sharks also suggest bringing in experienced partners to help manage the business, indicating a path forward for Hans and his innovative product.

Keywords

💡Tentacle

The term 'Tentacle' refers to the elongated, flexible structures that protrude from the head of an octopus, which it uses for various functions like locomotion, sensing, and manipulating objects. In the context of the video, 'Tentacle' is used metaphorically to describe a product inspired by the octopus's tentacles, symbolizing the multi-functionality and adaptability of the product.

💡Suction Mount

A 'Suction Mount' is a type of mounting system that uses suction to adhere to smooth surfaces, often used for securing items like mobile phones, cameras, or GPS devices. In the video, the product 'Tentacle' is described as an octopus-inspired suction mount for technology, emphasizing its versatility in holding different devices and its hands-free convenience.

💡Shark Tank

Shark Tank is a reality TV show where entrepreneurs pitch their business ideas to a panel of potential investors, known as 'sharks'. The show is a platform for innovators to seek funding in exchange for a percentage of their business. In the script, the setting is a pitch to the sharks, where the presenter is seeking an investment for his company and product.

💡Go-Getters

The term 'Go-Getters' refers to individuals who are proactive, ambitious, and eager to achieve their goals. In the context of the video, the product 'Tentacle' is designed to empower go-getters by allowing them to do more tasks simultaneously without the limitation of having only two hands.

💡Kickstarter

Kickstarter is a crowdfunding platform designed to help bring creative projects to life, typically through the support of the public in the form of donations. In the video, the presenter mentions launching a Kickstarter campaign for his product, which raised about 172,000 dollars, indicating the initial success and public interest in the 'Tentacle' product.

💡Prototype

A 'Prototype' is an early model of a product that serves as a test or demonstration of the final design. In the script, the presenter talks about giving his initial prototype to friends and family, which led to multiple use-case discoveries, showcasing the potential of the 'Tentacle' product.

💡Patent

A 'Patent' is a form of intellectual property that gives the inventor exclusive rights to an invention for a limited time. The presenter mentions that he wrote the patent himself in 2015, indicating the originality and legal protection of the 'Tentacle' product design.

💡Surfboard

A 'Surfboard' is a long, narrow board used in the water sport of surfing. The script mentions that the 'Tentacle' product is durable enough to even support the weight of a surfboard, emphasizing the product's strength and versatility.

💡Debt

Debt refers to an amount of money borrowed by one party from another, with an obligation to repay it. In the video, the presenter discloses his debt of 270,000 dollars, which is a significant factor in his need for investment to continue his business operations.

💡RV (Recreational Vehicle)

An 'RV', or Recreational Vehicle, is a motor vehicle or trailer that combines living accommodations and a vehicle for travel. The presenter mentions moving into an RV on his mom's property as a measure to manage his debt situation, illustrating the personal sacrifices made for his business.

💡Equity

Equity refers to an ownership interest in a company, represented by shares or stocks. In the context of the video, the sharks are offering money in exchange for equity in the presenter's company, which would give them a share of the future profits and decision-making authority.

Highlights

Hans Dose from Dana Point California is seeking $200,000 in exchange for 10% of his company, Tentacle.

Inspired by the octopus, Tentacle is a versatile suction mount for various tech devices, aiming to free up human hands.

The product has multiple uses, functioning as a car mount, bike mount, speaker mount, and even a pickle holder.

Tentacle is waterproof and durable, capable of supporting the weight of a surfboard.

Hans has a background in design from Hurley and combined his love for the ocean with a practical solution for handheld devices.

The company has sold over 40,000 units and generated $3 million in sales.

Hans wrote the patent for Tentacle in 2015 and launched a successful Kickstarter campaign in 2017, raising $172,000.

Despite a strong start, the company is currently in debt, with Hans having only $39 in his bank account.

Hans has ordered a shipping container full of inventory, costing about $130,000, leading to a cash flow issue.

The product has a 3.7-star review on Amazon, and Hans is seeking investment to improve marketing and sales.

Hans and his wife live in an RV to manage their debt and are fully committed to the success of Tentacle.

One shark offers $270,000 to pay off existing debt and an additional $100,000 for a 60% stake in the company.

Another shark empathizes with Hans' situation, offering $200,000 for a 30% stake due to the high risk involved.

Hans is transparent about his financial struggles, which some sharks appreciate for its honesty.

The sharks discuss the importance of experience and finding the right partners to run the business.

Hans receives multiple offers but is cautious about giving up too much equity for his invention.

After negotiation, Hans agrees to a deal of $200,000 for a 30% equity stake in his company.

Transcripts

next in the tank is a product inspired

by a creature from the sea

[Music]

oh

hello sharks my name is Hans dose I'm

from Dana Point California and I'm here

seeking two hundred thousand dollars in

exchange for 10 of my company tentacle

as you can see I love the ocean I

especially love the octopus with all

these tentacles they could do so many

things at once

we humans have a big problem holding

phones while trying to do something else

with only two hands you'll never see an

octopus with not enough hands to snap a

selfie

currently these options for humans oh my

God

only serve a single function what if we

had one portable product that did

everything these do now we do

introducing tentacle the octopus

inspired suction mount for your Tech

designed to empower go-getters to do

their thing better totally hands-free

tentacle does a million things it works

with phones cameras tablets it's your

car mount your bike mount your speaker

Mount and hold your seahorses

even

a pickle holder

what what

and just like the octopus tentacle is

waterproof and super durable it can even

support the weight

of a surfboard wow humans only have two

hands let's fix that so sharks what do

you say you jump in with a fellow sea

creature like me and make a huge Splash

in the boring Mount industry I like it I

really really like it thank you how much

do you sell it for how much does it cost

you to make sell it for 45

wow yeah we're selling at 45. uh we've

tried different price points but cost me

six dollars and eight cents currently

whoa with that version wow okay but wait

how many of you soul

over 40 000 units to date 40 000

3 million in sales

how many years ago so I actually wrote

the patent myself in 2015. wow I was

working at Hurley as a designer it was

really my dream job working in the surf

industry and I I just had this idea what

if I combined a car mount and a tripod

into one and when I gave the product to

friends and family this crappy prototype

that I made every person had this

discovery moment where they were like oh

my God I can use it for this or hey I

can use it for this and there's so many

use cases for it that I was like oh I

have to do this obviously so at the end

of 2017 I launched a Kickstarter we

raised about 172 000 and blew my mind

wow and then I thought oh my God I have

to quit my job I have to do this so when

I do something I go 110 I quit my dream

job

the product that you see here generation

four what was wrong with version three

on Amazon I saw that there were some

reviews that were not we had a 3.7 star

review and I was like okay that's still

not I knew that why why didn't people

like it honestly the suction cups that

was the biggest thing suction cup

geometry is a whole science what did it

cost to go through all these iterations

um well to be honest my debt is 270 000

currently

270 000.

what is your last year of sales so last

year we did about 478

000 in sales and what did you do last

month last month we did about nine

thousand oh not good what happened I

want to tell you what happened so we

were doing so well in 2020 despite covid

so many people were using this product

for face timing or Zoom calls and the

year prior I had run out of product so

this this year I freaked out and I

ordered a shipping container full so at

cost it was about 130k and why didn't it

sell Thanksgiving day comes and I ran

out of Marketing dollars to continue

going my only sales were coming from one

channel that is our website and paying

Facebook ads I was how much inventory do

you have right now about 891 thousand

dollars

at cost about a hundred and eleven

thousand dollars it costs but you don't

have to really pay for ads necessarily

you could do your own videos put them up

on on social media platforms is this

your full-time gig this is my full-time

gig my wife and I we work together on

this business and to get out of our debt

situation we moved into an RV I'm not

kidding an RV on my mom's property in

Menifee California all right sure so it

is clear you're all in yeah you're all

in if you don't get more Capital buy ads

yep you're going to zero no

that's what I think no because you've

got 110 000 in inventory your worst case

you're going to flea markets on weekends

and demonstrating and selling them there

how much cash do you have cons I have 39

in the bank oh what 39 how did you get

here

no I am just enough to get home how are

you gonna get back with that you're

gonna have to sell your flippers these

would be worth a lot actually yeah

you're right well hunts let me look at

it this way one saving aspect to this is

the product's pretty good it's really

good fundamentally I can't criticize the

product and I can't criticize you you're

a good guy thank you I get it you need

to get capital I love you dude

that's the first also in the end I don't

need another job it's not a situation I

want to put myself into I wish you the

best I'm out thank you thank you sir so

I think it's a good product I think

you're in a very crowded space it's just

not the right investment for me at this

time I wish you good luck thank you

thank you

I can make it happen I know I can yeah I

incurred some debt along the way but

it's serviceable all right my monthly

payments are about three grand a month

three grand isn't a lot but it is when

you got 39 in cash you know so often on

Shark Tank we have to peel the onions so

deep to get the truth and you just came

out here and bear your soul I appreciate

that

I think you need a reboot

so I'm going to make you an offer you

owe total debt 270 000 right

I will give you 270 000. we pay off the

existing debt to everyone okay and

basically that brings the company back

to Ground Zero yeah I will then give you

an additional hundred thousand to seed

the new company here's the catch though

I own 60 you own 40.

here's the caveat you're gonna have to

bring in real Partners who are going to

run the business bad idea the next

partner we bring in

is another Hans who has the level

experience has the experience in this

area

and whatever Equity we need to give them

it'll come out of my sixty percent well

that's interesting

all right Hans let me let me tell you

why I think my fellow sharks are tucking

and rolling out of this deal because of

your vulnerability to say you only have

39 right and a lot of people come on

here and they they act like everything's

all great so I say well why are you here

but on the flip side I get it you know

when I had turned my mother's house into

a factory I took a hundred thousand

dollar loan it was the biggest and the

largest amount of pressure I ever had in

my life three months later I turned

around and I only have 500 in the bank I

was three months later on the mortgage

right I was paying for raw Goods 90 days

ahead of time I'm paying for a staff and

salaries and my accounts receivables

they wouldn't pay me for 30 60 90 days

yeah and it was this moment in my life

where my mother came home and said I'm

gonna take an ad out in the newspaper I

said that's the stupidest thing I ever

heard she took out an ad million dollars

in orders need financing

I got 33 offers the next day 30 of them

were loan sharks and people like Kevin

O'Leary you're lucky I was there for you

Damon one with Samsung's textile

Division and my mentors now and they

believed in me yeah I had nothing zero

yeah

I believe in you

but it's gonna be expensive

because this is such high risk yeah

but I'm gonna offer you the two hundred

thousand dollars for one-third one-third

33 in the third okay

33 and no 33 to third let's make it

let's make it an even 30. I know you

know my back's up against the wall but

that's not well at least two are honest

up against the wall but I'm putting

money at risk yeah I understand okay

um and actually that's not a bad offer

All Things Considered it's better than I

would have done I'm out okay thank you

Mark you have an offer from Robert and

you have an offer from Damon

no it isn't Robert

Robert it is a legitimate offer and I

really appreciate your offer it would

just break my heart for how much I put

into it and for those Reasons I'm out

have you been always wanting to say that

forever

I

this is a moment right here dude we're

good yeah I like this damn it what would

you feel about 25 percent

for the 200k

I feel 30 sounds really good no it

sounds tasty but really you came down

from 33 in the third remember I went to

33. I went back to 30. you did yeah dude

I think we could do a killing together I

think you can open up a ton of doors and

I can execute I know I can execute

what's your best counter 25 it's my best

counter offer I

I love it I think I will take it at 30.

that's hard man ah

[Music]

let's do it

I like the counter