>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ first into the tank is a couple with a product hoping to emulate the best part of a favorite breakfast food. hi, my name is chris pouy... and i am tiffany panhilason. and our company is called cow wow cereal milk. and we're asking for $250,000

in return for 10% of that company. you know after you have your favorite bowl of cereal and you drink the leftover milk and it tastes like... heaven? heaven? that's cereal milk, and we've bottled it and made it good for you. so, how do we get kids to try cow wow? we tell 'em a story. once upon a time, there was a dairy farm that ran out of hay. so the farmers ran straight to the cupboards and fed their cows the only thing they had left -- cereal. the next morning, when they milked their cows, the milk tasted sweet, just like the cereals they love to eat. the end. the end. without any further ado, tiffany's gonna hand out some samples, and i'm gonna get out of this ridiculous cow costume. thank you, tiffany. thank you. thank you. thank you. all right, so, what tiffany is handing out to you guys are fruity trudy and chocolate chip cathy.

and that sugar label is actually wrong, we made a mistake in production. it's only 20 grams of sugar. 14 grams of sugar are actually in a serving of milk. a lot of people don't know that. you're basically selling milk to kids that tastes like the leftover milk in the bottom of a cereal bowl. yes, sir. what made you think of this? like, are you major cereal lovers? milk lovers? like...? yes and yes and yes. we were, like, in one of those yogurt places one night. and there were so many flavors. there was like 20 flavors of yogurt. and then we were in the convenience store, and i look, and i'm just like, "wow. "why does milk only have three flavors -- chocolate, vanilla, and strawberry?" like... the milk in the bottom of the bowl -- is that something people like? i actually -- i'm a cereal-for-dinner guy. i love the taste of cereal milk in the bottom of the bowl. yeah, there's no question, right? everybody loves -- like you said, everybody loves it. yeah, i mean, it's the best part of the bowl. it's the best part of the bowl. i always looked at it like it had backwash and drool in it. why would i want it? have you tested this with kids? what kind of feedback have you gotten with kids? absolutely. they love it. there's not a kid that has said that they didn't. let me ask you something. i'm dairy-intolerant.

so i didn't try it. but, steve, you -- how -- how did it taste? you didn't like it. yeah, i mean, look, i'm gonna give you a "b" on the taste. it's not got enough cereal taste. it's not quite sweet enough. it doesn't remind me of my favorite cereals. okay. what are your sales? it's $20,000. we just launched with one sku. have you had any reorders on it? yes, we've had reorders in all of our grocery stores that we were in. and how many are they? right now it's eight bristol farms, three test stores for albertsons, and we actually are one step away from getting a confirmed deal from one of the largest grocers in the country. and how big would that deal be? about $100,000. which category are you trying to garner share in? because this is not a refrigerated product. flavored milk -- $1.5-billion industry. it doesn't need to be refrigerated, but it tastes better when it's cold. is it refrigerated or not? it is in albertsons and bristol farms, but it doesn't need to be. that is a whole different story. getting shelf space in refrigerated area extremely expensive

no matter how your cow suit looks. cuban: now all of a sudden, you're competing with borden, who has flavored milk and can easily come out with more. so you're competing with them and all their marketing dollars. and i think that's an uphill battle that is insurmountable. $250,000 isn't even gonna get you into the game to compete against those guys 'cause you don't have a pure differentiation. so for that reason, i'm out. but, guys, you know, this one packet right here has 24 grams of sugar. 20. that's wrong. it has 170 -- 20 or 24. 170 calories is a lot. it's 170 calories. ...for this little carton. to be selling this to kids, i mean, there's an obesity issue we already have. that's a lot of calories for a kid. we have less sugar than any other flavored milk on the market. it's less sugar than any juice or any soda. when they made a petition to take flavored milk out of schools, there was an incredible backlash from the kids. you know, there was one kid in ohio that wrote like a five-paragraph essay about how they wanted to get milk back in the school. do you realize how bad you just screwed up? what did i say? look, you just came in here.

we probably never would have known that they tried to take flavored milk out of any school. and you just told us one of the biggest red flags that we probably could have uncovered. well, the reason i want to tell you is because when they took flavored milk out of schools, the kids started drinking soda and juice. and they demanded, "please, give us back our -- our chocolate milk," because they loved it, it's more nutritious. it has nine essential vitamins and nutrients. the ratio of carbs to protein -- flavored milk is being marketed as the perfect recovery drink for athletes. say that again. what?! chocolate milk -- "got milk?" did a $25-million campaign marketing chocolate milk to athletes because the ratio of carbs to protein is actually better than most -- not in my locker room. is it in your locker room? [ laughs ] no. but this product is not positioned to athletes. this is for children. so people are gonna start dumping yoo-hoo on people after they win the championship? i think it's dangerous to give kids this product. i-i don't see any value in it for me. i'm out. we're not trying to get kids to drink something that's unhealthy. there's no ceragenin. there's no artificial flavors.

there's no artificial sweeteners. we have the cleanest label in flavored milk. you guys, i don't even like milk. so, i have to love and feel passionate about any deal that i do. so i'm out. chris, i love the concept. i love cereal milk. i love the branding. as i said earlier, it's not quite there in terms of taste. it's a "b." i need it to be an "a." i don't think your product is there yet. i'm out. in the end, what happens, all cows come back to the pasture right here. right. all right? so you're saying you want your udder pulled? no, no, i'm basically saying -- i'm basically saying it's a very old and established space -- a $1.5-billion flavored-milk market. i would think to get a valuation here of $2.5 million, you would need a much more concise business plan that can explain to any one of us

why you have a hope in hell of getting share. 'cause i think right now we're going to get crushed like an udder. i'm very out. thank you, guys. appreciate it. thank you. greiner: good luck. i think the sharks gave great advice. i mean, they are successful for a reason. pouy: but i think maybe they're just a little too old and they just don't get it. it doesn't mean that we're gonna stop from here. yeah. we're just gonna take their advice and make our... keep on moo-ving. yes. [ chuckles ] make our brand better.

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i'm joan. and i'm julia. both: and we're sisters from normal, illinois. growing up in a family of seven, everything was homemade. baking is practically in our blood. we've been baking since we've been little girls with our mom in the kitchen and haven't stopped. let's go eat. we've developed the perfect alternative

to one of america's guiltiest pleasures. it's gourmet, it's delicious, and there's nothing like it on the market. [ both laugh ] working together as sisters is fun. i'm the boss. no, you're not. yeah, i am. neither of us are the boss. we're partners. we are partners, but most of the time, i am the boss. okay. a little room. our facility is the world's tiniest kitchen. getting an investment would put us into a place where we can actually have a production. americans are gonna love our product because it's unique and it's a sweet treat that everyone can enjoy. we want to be in mass production, and we want to become a national brand, and we need the sharks to help us do that. hi, i'm joan pacetti. and i'm julia schmid. and we're sisters. and together we own...

both: ...the cookie dough cafe. we are seeking $50,000 for 20% of our company. anyone who has ever baked homemade cookies knows how tempting the cookie dough can be. it's gooey. it's sweet. it's sinful. but we all know we should not be sneaking bites of cookie dough. we've heard about raw eggs and salmonella, and every pre-packaged cookie dough has labels saying, "warning -- do not eat raw." even though we know this, we still swipe by the spoonful. that's why we created a safe, edible cookie dough that is strictly made for eating, indulging, and enjoying. yes! don't bother preheating your oven. you can enjoy our product straight from the jar. schmid: this is the real deal. this is your mama's cookie dough. it's creamy, loaded full of chocolate chips, delicious candies, real butter, and no added preservatives. we have the only gourmet, edible cookie dough on the market specifically made to consume as is.

we have hand-packed thousands of pints of cookie dough in the world's tiniest kitchen. we need your help. so grab a spoon and dig right in. yes! hey! [ laughs ] you get the oreo, steve. and lori gets the chocolate chip. whoa! now, what is stopping salmonella from growing in this? it contains no eggs whatsoever. hmm. greiner: oh, this is great. thank you. thank you. this tastes so good. what does this pint sell for? $6.99 is what it retails for. and what do you make it for? $2.20. can you also bake cookies with this, or no? both: you can. but they'll just be really flat because there's no baking soda. and they don't taste as good baked without the eggs. and you've been in business how long? a little over a year. how are the sales? our sales to date are $24,000. what were your sales last month?

last month, they were probably 1,600. 1600 units or 160o...? dollars. yes. $1,600? we were in seven stores. seven stores. we just -- we got a purchase order last week for more than what we've sold all year. it's gonna put us in an additional 50 fresh market grocery stores. your purchase order was for how much money and how many units? 2,300 pints. and we'll make about $6,000 on it. greiner: what's your mode of selling? how are you trying to get your product out there? we don't do any marketing or anything like that. um -- how are you getting into the grocery stores, though? 'cause that's very hard. we approached the fresh market. yeah, we went and talked to the manager in normal, illinois. he looked at our packaging. he tasted our product. and he was like, "this is gonna be huge." and how much has he sold -- has that one store sold? $11,000 of our sales last year. over a year? in just one store. do you really think, in one store, a product that only does $11,000 can stay on the shelf? it's $900 a month.

who cares? now, stop it. but, i mean, think about it. if you could get that year back and you never had this nightmare, would you -- shut up, kevin. kevin! are you kidding? how much have you invested? $35,000 total. total. what are you gonna do with the $50,000? purchase equipment that'll help automate the packing process 'cause that's the most time-consuming part of our job right now. what are you guys doing now to make a living? is this all you're doing? i'm an agent at an r.v. dealership. okay. and i'm a stay-at-home mom. we come from a family of entrepreneurs. our dad literally swept the floor in a factory and started his own business. unfortunately, he's passed away, but one of our older brothers took over the business, and it's a multimillion-dollar business now. how come your brother hasn't helped you with the $50,000? we haven't asked. why? i don't know. sense of pride? i mean... [ chuckles ] yeah. i get that.

we're here, obviously, for the $50,000, but we also need some connections, like getting our product in a manufacturing facility. we don't know how to do that. john: that leads me to my next statement. i love it. if you do this deal, i'm gonna add egg to yours. but you're so early... this point, i would have to do way more work. i would have to ask you for so much of the company that it would be unfair. i wouldn't have the time to help you. i'm a customer but not an investor. i'm out. i like what you guys are doing. it tastes great. but to daymond's point, you're still in that early, early, early stage, and you're gonna be turning to us because you don't want to have to go through this blindly. that's the whole point of coming here, right? and so that creates a lot of work for us. but don't you think that's good, too? we don't have $1 million in sales

and we're not in here asking you for $500,000? can't you see this in stadiums... oh, absolutely. ...and theaters and single cookie-dough cups? yeah, in some respects, you're right. but it's too early. and so for that reason, i'm out. my big problem with this is the proof of concept. you've practically sold nothing. i don't think this is going to be a big product. i really don't. when we just got 50 additional stores? you would give up when you just went from 7 stores to 50 in a week? i mean, look, i don't want to insult you -- kevin sees the word "dough," and he gets confused. i don't want you to pursue the path to hell on earth. it's a hobby that eventually should be taken behind the barn and shot. i hate it. i'm out. then i need to get if i'm into character. santa,

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and that's why american express founded small business saturday. so, this year let's all get up, get out and shop small on november 24th. i got croissant. small business saturday. a small way to make a big difference. and all through the house 'twas the night before christmas not a creature was stirring, but everywhere else... there are stores open late for shopping and fun as people seek gifts or even give some. not necessarily wrapped with paper and bows, but gifts of kind deeds, hard work and cold toes. there's magic in the air, on this day, at this time. the world's very much alive at 11:59. i'm always going to be a maker. and i think a company is the coolest thing you can build. i'm adam, and i make robots. you never know when inspiration is going to strike. so i take my surface pro everywhere. part of an entrepreneur's job is to get stuff done. i like to do, like, four things at once. the new surface pro can handle all of my programs. i can paint, i can mold, i can code.

i have it on all the time, it's fantastic. we get to build toys for kids and change the world. it's a big deal. narrator: three sharks are out. julia and joan have only two chances left to make a deal. we've had people approach us, and we can't get to that next step because we weren't with a distributor.

we've had walgreens call us up. we had everything finalized to be in their flagship stores like you have in hollywood, downtown chicago. how did you get into walgreens? they approached us. they saw our product... where? ...on the fresh market shelf and called us up. because we weren't with a distributor they used -- you know, we're not big enough yet, they said, "call us when you get in." so that door is still open, you think? oh, yeah. it's still -- i talked to her two weeks ago. you know, i remember what it was like to be just like you. i don't agree with mark. i don't mind doing hard work. and you don't mind doing hard work. no, i don't. so i think we'll put our heads together, do a lot of hard work, and get it out there everywhere. but i also was sitting here thinking, when you said, "it would be good in stadiums." i've got a guy next to me. he's got some stadiums, himself. i think it's a great product for stadiums. i've also got great contacts in hotels. i think this in a hotel room -- slam dunk. would you want to partner with me?

go fifty-fifty? yes. and you get two sharks with different contacts, different connections, different opportunities. we like that. we like that. yeah. greiner: it's a lot. how about we give you $100,000 for a 30% stake? i think we should offer $100,000 for 40%. okay. and we see this also paired with a large ice cream -- guys, guys! that is a sweet deal. what are you gonna do? did you hear what they said? it's a lot of dough for your dough. i would rather do $50,000 for 20%. we don't want to give up much more than 20% of our company. joan, i'm gonna give you some rolling papers so you can smoke this stuff. you should take that offer. are you out of your mind? 40% of our company? oh, my god.

how about this: we'll go back to $100,000 at 30%. steve, are you okay with that? i'm okay with that. girls, do you accept our offer? yeah. we'll do it. done? it's a deal. yes, it's done. tisch: thank you, ladies. good job, girls. ladies. thank you! thank you! thank you so much. tisch: thanks, guys. yeah, the rookie closes his first deal. congratulations, rook. [ laughs ] we are so excited and happy we got a deal. we feel like it'll build our brand 10 times faster than we could have done on our own. yeah. 100 times faster. yeah. yeah.

narrator: last season, tanya petruno along with company spokesman nfl running back brandon jacobs, struck a deal with daymond john for their protein-infused water pro-nrg. i'm gonna give you $250,000 for 30%, contingent on me taking it to a protein and supplement company. that's a yes, daymond. that's a yes. all right. let's see how they're doing now. before "shark tank," we had $165,000 in sales. since airing a year ago, we have $1.5 million in sales and growing. we now have a fulfullment warehouse, we've completely reformulated and repackaged our product, and we have created over 30 new jobs. after making my deal with daymond, he introduced us to kevin from rightway nutrition, who is a big player in beverage manufacturing. and he helped me launch my product into the mainstream market. we are now on sale at every walgreens nationwide. over the next year, we're projecting over $3 million in sales.

brandon jacobs has been instrumental to our company. he's constantly pushing our product to his friends, his teammates, his fans -- anybody who will listen. yo, brandon, what's up? we're on the field here today because we're gonna talk to brandon jacobs about our new national campaign. we need to make people aware that it's not only for athletes. it's for everyday moms and kids. and with the new developed flavors and the way that they're improved, kids actually like it. this thing is bigger than we thought. man, you've been a great partner. let's keep rocking. now why don't you show me some football? show us some moves. patruno: "shark tank" instantly put us in the spotlight and has given us every tool to succeed. i'm so thankful for this experience because it has completely changed my life.

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( ♪ ) and your free wi-fi will start shortly. enjoy your flight mr. jones. world's best inflight entertainment. fly emirates. fly better. rrator: next up is ant inflight entertainment. entrepreneur from austin, texas, with a new way to work out while having fun. hello, sharks. my name is terry jones, and i'm the c.e.o. of nexersys. we're seeking a $2-million investment for a 10% stake in our company. nexersys, the next-generation exercise system, is an interactive and intelligent fitness and gaming platform that delivers a fast, fun, and effective workout for everyone. it doesn't matter if you're an average joe or if you're an olympic medalist, like my friend marlen esparza.

nexersys combines the benefits of a personal trainer with the fun and excitement of today's online games. you simply select your personal profile, then you choose between circuit training, high-intensity interval rounds, or a one-on-one challenge against one of our nexersys avatars. and you're ready to go. it would kick my ass. there you go. and when you're complete, nexersys provides a detailed analysis of your work every time you train. you're gonna live a happier, sexier, healthier life using the same methods as professional boxers and mma athletes around the globe. so, which of you sharks would like to draw first blood against your ultimate opponent? we've got a, uh, special avatar that we brought. hey!

now, that's a good-looking dude. go for it, mark. be really easy on him. he's a wonderful guy. one-punch cuban. where it lights up, you hit. jones: look at him. cuban: pop. i'm just gonna... ah! [ laughter ] mr. wonderful, you're in trouble. i got to tell you. [ laughs ] oh! [ bell dings ] look at that. great work! yeah! awesome, mark! way to go, mark! but you can see mark was 36% accurate. he was hitting real hard, but not necessarily real accurate. i just wanted to knock his ass out. great job. i believe he knocked him out. i didn't feel a thing. mark, was it fun? it was a nice little workout. how long did we do? you did 15 seconds. i mean, doing three minutes on that would be a great workout. o'leary: eventually, we got to get to this. you put a huge valuation on this company -- $20 million. do you have any sales? uh, we do. we are -- sales to date are a little over $4 million. wow. $4.2 million. that's over about 18 months. do you make any money? we are not profitable yet.

we should be profitable in september of this year. and is this designed for gyms and the home? absolutely. the black model is the personal model. the silver model is the commercial model. where are the sales? give me the breakdown. currently, about 70% commercial and about 30% home. i think it's very cool. i do really like it. well, you get demonstration, i think, better than almost anyone in the world having your experience on qvc. while you're groveling up to lori, let's go back to the numbers. what's your cost to make one of those units? uh, just under $2,000 for the commercial unit. now, terry, this is really a digital punching bag. a punching bag costs about $1,200 -- a good one, leather, et cetera. what does that cost? uh, the commercial unit is $7,000. whoa! and it is -- no, that's cheaper... so i can buy a car or buy this. [ laughs ] or you can buy a -- buy a treadmill or an elliptical in the same price range. what about the home unit? how much is that, terry? uh, $2,995. john: how do you sell them? we sell -- we promote it on tv

with direct-to-consumer advertising. we sell it electronically. so you've been running infomercials? we've run one- and two-minute spots. not the long form, but, yes. all right. and how are those doing? they did very well. we ran them last year. we spent about $1 million in tv last year. it generated about $1.5 million in sales. that brings up something else. how much in debt are you? we have on our balance sheet about $7.5 million of shareholder debt. whoa! i knew i was gonna get to this after that one. whoa! terry, terry, terry. and how much of that is your own money? uh... [ stammers ] a small portion of that is mine and my family's money. and that means that now we're gonna find out you own very little of this company, correct? um, i own about 35% of the company. you know, i'm a nice guy, so i wouldn't do this to you, but if i were an opportunistic guy i would just simply wait for that debt to come due, and then i'd own your company.

basically, that's what those debtors are gonna do. if you don't figure out a way to pay them, they'll own all the equity when this is over. uh, we don't believe that's gonna happen given where we are in run rate. by the time that debt is due, our cash flow will allow us to repay that debt. but, you know, in life and in business, poo-poo happens. don't you think a savvy financial investor, of which i'm gonna include myself right now, would want to see that resolved before i put a dime into this company? because if i buy your equity at this valuation of $20 million and the debt guys aren't happy, i'm screwed, terry. we will be repaying that and addressing that. what happens if you don't? well, we'll have to deal with those creditors at that time. tisch: how many investors do you have? we have about 60 investors. 60. oh. have your investors seen any money back yet? oh, hell, no. no.

this is a story about a lot of debt. great product. too much debt. i'm out. thank you. i have gone to the future in a split second, and here's what happened -- the debt wasn't paid back, and those shareholders wiped you out. you are now an employee of the company with no equity at all. the smartest guys on the balance sheet are always the debt guys. they know your future already. luckily, those guys are also my common-stock and convertible-to-venture partners. yeah, but they're gonna own a lot more than common. that doesn't mater. they're gonna force you into bankruptcy, and anything that you own is going to be gone. any assets that you had are going to be sold. and they're gonna take their pennies on the dollar. they're not your friend. good luck to you, but i have a feeling when we meet you again, you're gonna be an employee. that's it. i'm out. you know, i'd love to, uh, be before you today with less debt. unfortunately, the markets told us how we could raise money to deliver. we're standing before you with two products with a $20-million valuation,

which is a fraction of companies like total gym, like nordictrack, like bowflex. these are billion-dollar market-cap companies that -- and you're not anything like them at all. those are very simple devices. how you even spent $7.5 million to develop this is beyond me. and the valuation -- normally i'm the one who doesn't care about valuation 'cause you can always grow past it. now you've learned from the wise one. i wouldn't call you the wise one. but it's just crazy. for that reason, i'm out. you know, you're, like, in the third round with a young mike tyson. he's given you two body blows, but he's about to cock back and crack your head to the white meat. [ laughter ] that debt is dangerous. i'm out. and then there was one. i like it. i think it looks like a lot of fun. great way to have a workout. i think that it's a great product.

you are in serious debt, but i think you'll get out of it. but i don't like to get into that type of situation. and for that reason, i'm out. thank you, lori. thank you, sharks. good luck, terry. thank you very much. all the best. john: i don't know if he's gonna get out, lori. his mouthpiece is in the third row by now. it's one of those slow-motion "aaaaaaah!" while i appreciate what the sharks said, i have no doubt that nexersys and our team will be successful. we will overcome these little balance-sheet issues and continue to grow to a profitable and worldwide company.

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narrator: next into the tank is an entrepreneur

with a product to help capture the world in a whole new way. hello, sharks. my name is bruno francois. my product is cycloramic. and today i'm seeking $90,000 in exchange for 5% of my company. cycloramic is a smartphone app that takes 360-degree panoramic photo hands-free. and you don't even need a tripod. with cycloramic, you're gonna be able to truly capture the whole picture. i'm gonna show you a short demonstration, show you how amazing cycloramic is. there you go. [ camera shutter clicks ] [ camera shutter clicks ] [ camera shutter clicks ] it took all the shots, and it's gonna stitch all the pictures together. and here it is in cycloramic's 3-d viewer.

so, the base that that's on -- do you need that base with it? no, no, it works on the glass or granite countertop. no, no, no, no, no, no, no. how does it spin? not the wood. the base that's spinning it. no, no, the base doesn't spin. it's the phone that spins. how does the phone spin? how does it do it? can we see it move? h-how do you get an iphone to spin? can we see it move without the base? yeah, yeah, of course. here. so, you see, it's gonna turn and do a 180. greiner: and it doesn't fall over. [ camera shutter clicks ] no, no, it doesn't. o'leary: cool. [ camera shutter clicks ] john: wow! i want to buy that. what is in the app that makes the phone move on its own? so, what we did is when we saw that it was moving a little bit, like, with the vibration, we play with the frequency, which we, like, turn it on and off. and then we tried the rotation with the gyro and the compass, and we see how fast it goes and we adjust. so if it gets stuck, we kind of go on and off. and we're able to do a whole 360 and then film or take pictures.

so, to be clear, the app uses the phone's own vibration to make it spin. there's no extra accessory, nothing else. there's no extra. no extra. do you have a patent on it? yes, i do have a patent. utility patent. yes. very interesting. tisch: okay, so, how are you selling this? on itunes. on the app store. how much are you charging for it? right now it's 99 cents. and how -- how much have you sold? total downloads -- around 660,000. what were your sales with that number of downloads? income is $175,000. and what are you projecting in sales for this fiscal year? well, i'm hoping to do $1 million this year. we got like 300,000 views in like a couple of days. can i ask you about the valuation? so you want $90,000 for 5%, which puts you at $1.8 million. mm-hmm. yeah. why are you valuing it at $1.8 million? since it's a startup that has never got any investment, it's difficult to put, like, a really precise value. and there's nothing else that you see out there like it on the market today? no, nobody. nobody has done it. nobody. so, here's the thing --

i love your ingenuity. thank you. and i love this. you know, i can say -- i can tell instantly if it's a hero or a zero. i think this is a megawatt hero. it's a hero. i'm sorry to interrupt the love fest. well, i... are you gonna make an offer or not? i am going to offer you... $200,000 for 10%. francois: okay. i'm an inventor, too. and i know what it's like to be you and stand in your shoes. i get that excitement and that fever, and i will work with you at lightning speed to get this out there everywhere. i think it's a very good offer. you may want to know, as well, i do have prototype for a base that will rotate, you know. and i do have a provisional patent on that. so hardware. on a base that turns. francois: for any phone. for any phone. so you can put any phone, and it rotate. bruno, you know, i have an offer on the table. yeah, i apologize. are you interested to hear any other offers? i know that -- that -- or you just want to listen to her squawk?

i really like your offer. do you mind if i listen to everybody? you know, just out of respect, if they want to talk and ask more questions? i don't think i want to sit here waiting for them to figure out what they want to do. so i'd like you to tell me right now if you're going to take my offer or not. cuban: that would be a mistake. john: she's very rude. that would be a mistake. she's very rude. you wouldn't want to do it with somebody like that. they think it may be a mistake, but i'm sitting here saying... maybe she's not the right partner at all. that's the real issue for you. ...you've got a bird in the hand. maybe you should take it. i respect lori's hustle, right? but there's obvious outlets for this that may not be obvious to someone who doesn't understand the technology, right? these are apps that i have to deal with every day. i'm an investor in a company called condition one. they do panoramic video. i have a company called motionloft that is being used by the commercial real-estate companies that tracks people as they walk by so they can count in real time. mark, it sounds like you're selling him on you. exactly. so are you going to make him an offer? well, i want to hear more. i want to hear more about what the road map is. the application is great. it's interesting. but your upside, really, is to sell it to instagram or vine

'cause they have the user base, and this is a huge add-on for them. but the exciting thing is since you've been able to capture the use of the vibrations, where else can you take it in terms of applications? because that's where the world opens up for you in terms of product development. well, there's one big application -- is games. i've got a company called mention mobile. that's all they do. john: i think i've heard enough. i will offer you $250,000 for 10%. okay. so now you have to ask yourself, "how much equity do i have to give up?" the challenge with the app market -- i've invested in lots of apps and tech companies -- is you're an app right now. you're not a company yet. and so you've got to run this app as far as you can, extract as much cash as you can -- cuban: that's absolutely not true. you're getting 77 cents from it right now. that's absolutely not true, and he knows it. that's absolutely true because the only -- it shows how little he understands the technology. let me finish talking, mark. i appreciate your input, but it's not useful to me right now. you're welcome. so i don't want to hear it. so at the end of the day,

if you can build a portfolio of technologies, then you might be able to sell your company a couple of years from now. so why give up any equity until you've had a chance to build this out a little bit? oh, my god. here comes the licensing-royalty joke. exactly is what you need. [ laughs ] you don't want to be the punch line. here's the deal. i'll give you your 90k. francois: mm-hmm. i'll take a 15% royalty only on the revenues this application. okay. i'm the only shark up here that actually made a living as a photographer. okay. and i think that this -- when was that? how did that work out for you? it went very well, thank you. so i was a professional photographer and cinematographer and an editor for years. francois: okay. that's why you and i have a commonality here. you have three offers on the table. hold on. lori, do you want me as your partner in this? will you let me come in with you? he may sweeten the pot. o'leary: interesting. i'm gonna offer bruno $250,000 for 10%. now... half mine, half yours. john: you're equaling my offer? i'm equaling your offer, but lori and i will be partners.

if that's a value to bruno, i think it's a better offer, okay? he's got a lot of connections. francois: yes. o'leary: you basically have two offers for $250,000 for 10% of the equity. if you don't want to give up any equity, i'm happy to partner with you and do all of the things you want to do. i have a question about licensing. do you think there would be any way to license the technology to the manufacturer? if you want to license this technology the hardware guys bundled with this app, that's not a problem, either. i'm the king of licensing. greiner: let's stop. tisch: bruno, do you want two real partners? close your eyes, stop for a minute, and think to yourself, "what do i really want? what feels right?" breathe. are you done playing games with these guys, bruno? i'm gonna offer you $1 million... oh. ...for 30%. that's more than a $3-million valuation. it'ssweet deal!

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narrator: bruno has four offers on the table -- $250,000 for 10% from lori and steve... $90,000 for a 15% royalty and zero equity from kevin... $250,000 for 10% from daymond... and $1 million for 30% from mark. the only deal that really makes sense is mine... of course. ...where you don't give up any of your equity. i'll go -- i'll go to $300,000 for 10%. um... greiner: and what partner do you really want? tisch: yeah, what partner or partners?

i bring sports business, entertainment business. i think your product has applications in both industries. lori, obviously -- cuban: ask them to explain how the product works. see if they understand it. as he's making decisions in what direction to go with the product, if you don't understand how software's written, how are you gonna offer any guidance, right? o'leary: i'm gonna make it more interesting for you. i'll give you $200,000 for 10%, but when you pay me back, i lose 5% of my equity. so you get back to what you wanted. you earn it back because we're gonna run like hell to sell as many of these as we can. tisch: bruno, lori and i will make the same offer as kevin. and $50,000 more. $250,000, 10%. pay us back, it's down to 5%. i will offer you $350,000 for 12%. okay. do you understand all the offers now? yeah, yeah. i do have a question for mark. how would you feel working with lori, as well? okay. i'm not opposed to it. so, how much of that would you want?

50/50. you're okay with putting up $500,000? so you just threw steve under a bus. okay. yeah. lori just kicked me to the curb. welcome to the shark tank, rook! john: she just ignores her other partner like that. oh, don't listen to them. do you see that? tisch: absolutely. horrible. don't listen to them. kevin... why don't you and daymond invite me into your deal? interesting. greiner: mark, we need to close our deal now. they're shuffling deck chairs on the titanic. this is not deck chairs on the titanic. there is not an iceberg in sight. bruno, do not give up your equity. i want to be able to decrease a little bit of the equity for future investment. yeah. but, you know, i don't want you to lower the percent for nothing, so i'm giving something back. cuban: how much money would you want out of that $1 million? i wouldn't want to give away that much equity, so probably $500,000 would be... okay. so $500,000 for 16.5%. so each of us would have 8.25% for 250k. it's a good deal. let's do it. come on. close it. i think a better deal is i like my -- do you want to hear another offer... wait. ...where you give up less equity? stop. stop. because...

we were just about to close. no, you weren't. john: no, you weren't. sit down, lori. but can you just come down? i mean, i'm really close to making a deal, but 15% seems like... tisch: bruno, we've got a... so at 15% -- lori... yeah? ...it's not worth nickel and diming. so 15%, $500,000? yes. and you know we're the right partners. yes or no. got to go. you gave up 5% for nothing. kevin. bruno, you got to make up your mind. you've got a deal. deal. yeah. yay! awesome. [ laughs ] it's gonna be great. congratulations. all right, thank you. looking forward to it. all right. congratulations, though. tisch: bruno, congratulations. thank you very much. greiner: thank you. thanks, bruno. all right. francois: 15% is a little more than what i came for, but i got a higher valuation, and you know, lori, for inventions for me, is important. and then mark cuban, you know, for all the startups he's involved and all the connections, it's a great value. i think -- i wanted to get two sharks. i didn't want just one. that was awesome, mark. no, it wasn't. yes, it was. you're just a sore loser.

all i'm saying is our deal would have been much better for him. he'll probably sleep on it and start crying. [ laughs ] oh, god. >> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ is a unique way to illuminate in an emergency. hi, sharks. i'm anna stork. and i'm andrea shreshta. and our company is luminaid. we're seeking $200,000 in exchange for 10% of our business.