Liberate REFUSES To Leave The Tank Without A Deal! | Shark Tank US | Shark Tank Global

Summary

In this episode, Liv Bowser presents her company, Liberate, which focuses on mental fitness through mindful movement, journaling, and meditation. Seeking $200,000 for a 10% stake, she highlights a growing demand from businesses for mental health solutions. Despite impressive growth metrics and a strong B2B model, the sharks question the valuation of $2 million, noting that Liv has yet to prove scalability. After a challenging discussion, the sharks express skepticism about her current pricing strategy and market fit, ultimately leading to their decision to not invest, leaving Liv to reflect on her vision for a billion-dollar company.

Takeaways

• 😀 Liv Bowser is seeking $200,000 for a 10% equity stake in her company, Liberate, which focuses on mental fitness.
• 💪 Liberate combines mindful movement, journaling, conversation, and meditation to offer a unique mental fitness workout.
• 📈 The company claims a 90% profit margin and a 178% quarter-over-quarter growth rate, but has only achieved $50,000 in lifetime sales.
• 💻 The business model includes online classes and corporate partnerships, with 65% of revenue generated from B2B clients.
• ❓ The sharks express skepticism about Liv's business valuation of $2 million given her low sales figures.
• 🔍 Questions arise about Liv's pricing strategy, with suggestions to potentially increase subscription fees to capture more value.
• 🤔 The sharks are concerned about Liv's ability to scale the business in a competitive market with established players.
• 🌱 Liv envisions her company as the 'SoulCycle of mindfulness,' aiming to license her curriculum to other fitness studios.
• 🚪 Despite the rejections from the sharks, Liv maintains her belief in the company's potential for growth and impact.
• 📊 The interaction highlights the challenges early-stage entrepreneurs face in justifying their business models and valuations to investors.

Q & A

What is the primary business concept presented by Liv Bowser?

Liv Bowser's business, Liberate, is a mental fitness studio that combines mindful movement with journaling, conversation, and meditation to enhance mental well-being.

How much funding is Liv seeking and what equity is she offering?

Liv is seeking $200,000 in exchange for 10% equity in her company, Liberate.

What distinguishes Liberate from traditional fitness studios?

Liberate focuses on mental fitness rather than physical fitness, offering programs that build skills like courage, gratitude, and resilience.

What is the revenue model of Liberate?

Liberate has a subscription model for individual users and a B2B model for corporate clients, which constitutes 65% of its revenue.

What are the subscription prices for Liberate's services?

The subscription for the on-demand library is $19 a month, while the subscription model for instructor-led classes is $49 a month.

What concerns do the sharks express about the business's valuation?

The sharks question the $2 million valuation of the business given its lifetime sales of only $50,000 and the challenges of scaling in a competitive market.

What growth rate does Liv report for her business?

Liv reports a quarterly growth rate of 178%.

What advice do the sharks give Liv regarding pricing?

The sharks advise Liv to consider raising her prices, arguing that premium pricing can lead to better scaling opportunities.

What is the current status of Liberate's corporate program?

The corporate program is relatively new, having been developed only six months prior to the pitch, and Liv mentions the need for investment in a sales manager to help scale it.

How do the sharks ultimately respond to Liv's pitch?

The sharks express admiration for Liv's passion and concept but ultimately decide not to invest, citing concerns about the business's early stage and valuation.