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.

luminaid brings light to the world. our first product is an innovative solar light that is not your typical flashlight or lantern. it starts out like this -- a sleek, little package, and it inflates to diffuse the light and create a lightweight, waterproof lantern. luminaid's l.e.d. lights provide up to 16 hours of illumination, and it has two brightness settings. you don't need any aa's, c's, or d's -- just sunlight. using the built-in solar panel, you charge it in the sun during the daytime, and this energy is stored in a thin, efficient, rechargeable battery. luminaid is perfect for outdoor adventures. take it camping, hiking, and even boating because it's completely waterproof, and it floats. this product is useful in a variety of situations, and we've proven that there's global demand. but what we're really passionate about is the "aid" in "luminaid." our light shined brightest for those who are left devastated after a natural disaster. we have the perfect tool for first responders to use on the ground in areas without electricity

or that are ravaged by floods. and before disaster even strikes, luminaid is perfect in the home and car, just in case. we're committed to making luminaid a worldwide brand and hopefully making people's lives a little brighter, too. we always say, when life gives you lumens... both: ...get luminaid. who wants to join us? [ chuckles ] that was great. cuban: oh, lord. explain the technology. it's really simple. it's a solar panel, a rechargeable battery really similar to the rechargeable battery that's in your cellphone. thank you. just a bright l.e.d. light. so, it inflates to diffuse the light like a lantern, having a lampshade effect. did you create this? yeah. so, we're actually students. we were at columbia graduate school of architecture right after the haiti earthquake in 2010, people were completely without electricity, and there wasn't a lighting product that was being distributed in volume. so we spent the semester prototyping the product by hand. shreshta: we made the first 50 of these in our kitchens. and as it happens, a year later, we ourselves were in japan during the 2011 earthquake.

and even for us, our prototypes -- i mean, we used them during the power outages then. and we realized, like, this is a product that has -- you know, fills a universal need. how long does it last? it lasts 16 hours on the low setting and 10 hours on the high setting, and then you just recharge it in the sun in seven hours. [ blows ] do you have an engineering background? i do. so, i studied engineering at dartmouth college in my undergraduate degree, and then we both went on to columbia graduate school. tell -- tell us about sales, then. in the first year, we did $250,000 in sales. whoa! in this last 12 months, we did just over $1 million. greiner: wow. herjavec: impressive. whoa! [ chuckles ] so, we actually have -- i mean, there are three sort of customer types that we sell to -- it'd be individuals directly online, and then we have, you know, wholesale/retail/commercial, and that includes our international distribution, and then the last would be ngos and government agencies. tell me the margin. how are you selling the ngos? how are you selling them? what process are you using? so, we have a couple larger ngo customers. our largest is in international organizations that procure supplies and distributes them in emergency situations.

like a red cross or... exactly. so, it's actually shelterbox. you can ship 50 of these for the space of 8 flashlights. so, they have purchased 30,000 units in the past 10 months. they're one of our largest customers. and tell me what you sell it to them for. we sell to them for $8.75. and how do you sell -- what do you sell it for in the other two areas? our direct-customer price is $19.95. and what's your cost? cost to manufacture it is $4.75. and do you have some kind of funding behind you? we each put in $7,500 of our own money because we thought we had a good idea. so, then we launched the product through a successful crowdfunding campaign. we raised $50,000 on a goal of $10,000. we've leveraged business-plan competitions and grant competitions, and we won an additional $195,000. [ laughs ] and we've put $145,000 of that back into the business. bravo. it's brilliantly designed. [ chuckling ] i'm super impressed by you. did you patent this? we have two utility patents filed. our patents were filed through columbia university, where we were students at the time, so... mm. oh. do they own a piece of your company? they own 2%.

so, i mean, we were students, and we had no money... no money. [ chuckling ] ...to -- to front the patent. it all went into this. so, you -- you pay the -- how do you pay them for their 2%? so, okay, so, they also have 2% royalties for any commercial retail sales. royalties, you say? john: ah. yes. right up your alley, so... however -- however, all of our ngo, military, and humanitarian-aid sales are exempt from that. i like the fact that you have a royalty deal in place because i'm gonna tack onto that. i'm going to give you $200,000 and attach to the columbia royalty. whenever they get paid, i also get a royalty of 4%, all right? my royalty goes away after i've received back four times on my money, all right? i get no equity. once i recover $800,000, poof -- i disappear. poof. do that again. [ laughs ] you -- you experience the wonderfulness of mr. wonderful, but then he's gone like the dream he was. [ laughter ] well, that's a -- definitely an interesting offer. of course it is. well, i mean, you know, it's nice to think about you going away after a time, but we're actually here... [ laughter ] i feel like that everyday.

no. everyday. we also want a strategic partner. so, you want to sell equity. you want to sell equity. yeah, we think the time is right. we want a partner. herjavec: for sure. you know, we want to build the infrastructure around it. so, ladies, here's my concept. hat's off. you're brilliant. i want to give you $300,000 for 20%. my main goal is to license it. i want you to be inventors. thank you very much for your offer. i mean, i think that is a little bit more equity than we were hoping for, but it's a -- but you won't have to raise again. ah...equity -- it's so expensive. [ chuckling ] it is expensive. we know. that's why we're... yes, sell your soul and your future. you know, this product can change the world. i love products that actually help make the world a better place and help people that are in hard situations. so, my offer is $200,000 for 20%. i just believe in you guys. i think that you're amazing and brilliant [ chuckles ] but she's taking more equity. i know i am asking -- i'm making a stiffer deal here, but i think that it's going to require a certain amount of my time

in working with you and helping you for -- you did impress me, lori, by actually being greedier than kevin on that one. [ laughter ] well, that's my offer. i like my deal a lot, by the way. i like you. i believe in you. i think itki br anbett bthe minute. well, we're taking all things into consideration. lori, thank you. that being said, you know, that is a little steep in terms of the valuation of the company that we were -- attagirl. i love you. oh, my god. i love these girls. [ stork laughs ] i love these girls. so, if there's any way you could come down in your equity to maybe -- it's the greed problem, isn't it? that's what brings you back to team wonderful. [ laughs ] this kind of savagery -- 30%, 20%. [ laughs ] we know we're gonna need more money... of course you are. ...so, right off the bat, taking more cash out of every unit just doesn't -- you may not need more money if you license. you're gonna need a lot of capital. my deal -- they don't need more capital. they can be designers, and they can be creators. they do. with your deal, they have to start shipping. they have to handle to handle being a salesperson... do you want to do daymond's deal or not? yes or no?

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for their solar-power light, luminaid. lori's offer is $200,000 for 20%. daymond's is $300,000 for 20%. kevin's is $200,000 for a royalty of 4% that expires once he receives a return of $800,000. john: my deal -- they don't need more capital. they can be designers, and they can be creators. o'leary: they do. with your deal, they have to start shipping. they have to handle to handle being a salesperson... do you want to do daymond's deal or not? yes or no? cuban: wait. hold -- hold on. hold on. how big can you make the inflatables? because if you can make them big, that creates a whole new category that changes the game. shreshta: yeah, i mean, that's the idea behind our -- you know, the combination of the solar l.e.d. and the inflatable, so you have to open yourself up to even, like, new shapes, applications, and integrations, like life vests or raft-type integration. i mean, i like it. obviously, it's a great product. i'm more interested in where you're going to go. yeah. and i'm sure you're not doing this just to build this, right? no, we're not. so i'm gonna make you an offer, and i'm gonna show kevin what creativity's all about. he tries. so, i'm gonna offer you 200k for 15%, and i want the option to lead through your next round of financing in the amount of $300,000.

i want you to know that you got a foundation to grow from, 'cause, again, where you're going is more important than where you are. thank you. that's exactly the amount i was gonna offer. my offer is $200,000 for the 15%. yes, you will need more money. i-i do see a slightly different path. i'm not sure you're 100% crystal clear on the future. exactly, and i love that. i see a retail market. i do see the ngo market continuing to grow. um...and then you create the next round. ladies, you have five offers on the table. that's rather rare in the shark tank. now you have to make a decision. thank you to all of you. yes. would it be okay if we stepped out? i would not leave the tank at this juncture. okay, thank you for the advice. bad things can happen. we won't, but okay. [ laughs ] so, one thing we didn't think about

coming in here as much was the future and, you know, somebody really being there to help us fund that. we appreciate everyone's offers. mark, i think you got a deal. thank you. i'm excited to work with you guys. what was it? you guys are awesome. i'm so confused. i don't know. oh, it's gonna be great. stork: thank you very much. thank you. cuban: you guys are amazing. thank you, thank you, thank you. i'm excited. thank you all for your time. greiner: really smart, ladies. great girls. great ladies. ahh! high five. [ laughs ] smart girls. i'm gonna -- i'm gonna go apply for a job. we won't hire you. [ chuckles ] you don't know the future. something could surpass this in two seconds. right. well, that's the risk of investing. yep, that is. i think we made the right choice. i mean, we really couldn't go wrong. they're all great partners. exactly. but mark really saw the vision for the company and the technology, and that was really important to us, because we do, too. narrator: earlier this season, navy s.e.a.l. eli crane and his wife, jen, made a deal with kevin and mark for their unique bottle-opener company, bottle breacher. you guys are awesome! let's do it!! [ laughter ]

let's see what's happening now. things have been really crazy since "shark tank" aired. our website crashed. it was total chaos. within the first week, we probably had 60,000 bottle breachers sold. now we have to figure out, "okay, how do we make all of these?" where are we at for the day? right now, we're at 975, so we're doing pretty good. awesome. we went from making 175 a day to having to make over 1,000 a day. we had to move into this new facility. we went from 8 employees to 32, and we've also been able to hire a lot of veterans, so we're pretty proud of that. jen: when we pitched, we were at a half million dollars in sales. now, in three months, we're at $2.5 million. eli, jen. hey. how you doing? o'leary: i wanted to come here and thank jen and eli for the tremendous success they've had since they aired on "shark tank." you are at $2.5 million -- that's great news, but i've also heard about the backorders. bottle breacher is a classic success story, with the problem success brings. whenever there's a huge surge in the interest in a product and you get a whole bunch of orders, you've got to fulfill them. otherwise, you end up with a lot of unhappy customers.

we've got to make sure this gets fixed. all right, now i know what the challenge is. jen: you're gonna grow and be tall? yeah. no, you're gonna stay my baby. [ eli laughs ] i just got out of the navy a couple months ago. jen and i were really concerned with, "how are we gonna pay our bills? because of the "shark tank," we've actually been able to provide for ourselves and a lot of other people in the area. even though i don't wear a uniform anymore, i still feel like i get to serve this country, and "shark tank" has given us the opportunity to do that. all: breacher up! ♪ max, what [ car honk ] do today?

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explore cost support options. narrator: next up is a young couple with a mission to help a global community. hi, sharks. i'm jack. and i'm alley. and we're the co-founders of taaluma totes. we're here seeking $110,000 for 15% of our company. it's time to kick those boring, generic backpacks to the curb. alley and i went to uganda during a summer break from college, and we couldn't take our eyes off all the crazy fabrics there. so, we picked out a fabric at the local market and found a seamstress to sew alley a beautiful skirt. and jack got a little jealous, 'cause he couldn't pull off a skirt, so he came up with another idea. he handed the seamstress his boring, generic, solid-black backpack and asked her to make a more exciting one out of the local fabric. and just like that, the taaluma tote was born. so, taaluma totes are backpacks paired with countries. each one is made of traditional fabric from that country

and then funds a microloan for a person in that country. so, when you carry taaluma, you carry a country. so, we started the business from our college apartment. and with graduation around the corner and taaluma's momentum really building, we traded our calculators in for totes and made this nights-and-weekends project our full-time jobs. so, sharks, the question is... both: ...which country will you carry? [ chuckles ] we'd like to pass out some samples, as well, if that's all right. yeah. jack, where'd you go to school? we both went to virginia tech. we studied engineering there. alley, what country is this? that one's an indonesia tote. greiner: what country is this? mali. mali? that's right. beautiful. and a beaut -- this is mr. wonderful. we know you like green, so we picked you the green india tote. thank you. john: thank you. daymond, that's the ghana tote, and, mark, the ivory coast. so, each of these backpacks have a story. this one funded a microloan for an artist in indonesia to buy more crafts and supplies. and each stor-- each tote has a story like that. jack, it's beautiful. thank you. it really is, and it's beautifully made. thank you. thank you.

the quality is incredible. what are your sales? we've sold $60,000 of backpacks in the past 10 months, and that's funded $6,000 in microloans. how in the world did your dad let you go to uganda? [ laughter ] my dad is in the state department, so i moved around the world my whole life. you say that these are different territories. are you actually making them in the territory, or the fabric is just inspired by it? so, we get traditional fabrics from the countries. all of the fabrics come to where they're made, outside of richmond, virginia, and they're assembled there. and why don't you make them in those countries? because that also helps provide jobs. we actually did consider that, but we're really excited about providing some local benefits here in the u.s., as well. the facility that makes them hires adults with disabilities to help do the assembly, so... okay. wow. greiner: i think that's great. jack, what do you sell it for? $65. and what does it cost you to make it, all-in? $27. john: i would pay more for this bag. why isn't it $100? well, so, our target market

is college students and young adults. greiner: i don't think you're wrong in your price point. kids are on a budget, right? you're making it affordable to many, as opposed to just a few. herjavec: what -- what's the larger strategy? how is the business gonna get bigger? well, so, that's what part of the money is gonna be allocated for. we want to expand our campus ambassador program. do you have the ambassador program in place today? we've -- on a very small scale, yes. so, we're finding two students on each campus to represent taaluma totes and spread the word on their campus. do they get paid for this activity? this actually came from an insane number of e-mails that we get from students just asking to be involved. so, they just want to help the cause? yeah, there's no payroll or anything like that. o'leary: don't worry -- when you get older, you'll turn into a capitalist. [ laughter ] how -- how are you doing the microloans? i'd like to clarify that. yeah, so, it is a loan. it's a small loan that's given to an entrepreneur in the developing world to grow their business. right. once they can do that and generate their own income, they pay it back within 12 months, and we use that money to buy fabric from that country for the next backpack, closing the loop.

herjavec: jack, alley, very impressive. you know, you took an idea, you ran with it. i think the product is just beautiful. thank you. thank you. you know, we're -- we're here to help businesses where our capital and expertise can take them to the next level. i mean, at this point, really, this investment is gonna kick it -- kick-start us up to the next level. i mean, the things that are holding us back -- inventory. we've run out a few times in the past 10 months because we couldn't keep up with demand. right, but they already have to be at a certain level to springboard. i think that you're trying to figure out the strategy, the price point, you know, the ambassador program. you're gonna figure it out. i just think it's a little early. i'm out. we're moving quick. we're -- i mean, we're fast learners and -- oh, you are, and -- and you're going to, and that's how you learn, right? absolutely, yeah. you're -- you're gonna try, you're gonna fail, you're gonna fall down, and you're gonna do what? pick -- pick right back up. i mean, that's what we've been doing for 10 months.

guys, what i see, you should be proud -- great product, but you're a product, not a company. like you said, you've fallen down, and you've gotten back up. you haven't fallen down enough yet. and for those reasons, i'm out. all right, well, we thank you, anyway. thank you. you know, when i first started my business, i had one product idea, same as you, and one of the greatest things for me was that i had to figure everything out. i was alone. but as i grew a business, i then knew how to run all facets of it, and i could continue to make more and more products. i think you have all these steps ahead of you. the two of you together, if you learn them, you're gonna become much stronger. but for me, it's too early. i'm sorry. i'm out. all right, well, thank you for your feedback. thank you for your feedback. we appreciate it. john: i have to take -- my hat's off to you because too many kids these days are just trying to make money and develop an app because that's the new gold rush, and you're actually trying to make change. [ chuckles ] thank you. here was my challenge --

you really weren't thinking about the margin, and that means you will not be able to sustain at the current price. and i say this to one company every season -- first you have to make it, then you have to master it, and the you can matter. i'm out. herjavec: well, there's only one country left. kevin? i had a little connection with this when alley said that her dad worked at the state department and traveled a lot. that was also my story. i lived in cambodia, tunisia, ethiopia, cyprus, japan, switzerland, france. wow. every two years, we moved. the problem with this, you know, and i always get dragged back to reality, but that's what i love about myself. that's why they call me "mr. wonderful." you guys are not worth $700,000 -- nowhere near it. it's way, way, way too early. but i don't think your company's even worth $110,000 yet. so, as far as the valuation goes, we're valuing the company on something more than that.

and what we've learned from this -- these first few months was how to build a community around our mission, rather than just sell a product to a customer. and that is so much more valuable and so much more genuine, as you -- no, you're -- you're right. it's -- it's beautiful to stretch, but what happens is when you end up in front of a financial investor like me, who's got tremendous discipline, 'cause he's been around a long time, i look for the potential of free cash flow in the next 36 months. that's when you can determine whether this is a hobby or a business. look, you're way too embryonic for me. i'm out. all right, thank you, anyways. thank you for your feedback. maybe we chose the wrong strategy in our first year. we should have chased the -- cuban: no, no, no. you just -- you -- you go through the process, and you learn. okay. it just doesn't all happen in one year. you're right. right. it takes time. all right. thank you for the feedback. thank you. we appreciate it. good luck, guys. good luck, guys. good luck. good luck. alley: thanks. john: i love entrepreneurs like this. i love them. they want to make a change, but you can't make a change if you don't stay in business. i probably would pay $200 for this if i --

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my name is ryan fant. and i'm nayeem hussain. we're from new york city. and we're the co-founders of keen home. taxi! ryan and i met studying at the nyu stern school of business doing our mbas.

we became very good friends. look at this. keep going. [ both laugh ] oh! nyu has an amazing entrepreneurship program. we entered a business competition called the entrepreneurs challenge. they awarded us an $18,000 grant. and this year, we earned a spot in inc magazine's "coolest college startups." so, hear, hear! it really gave us the confidence that the business that we were creating really had legs. we're gonna look at some boxes. i like the sleeve concept here. we've since graduated from nyu. now ryan and i are full time at keen home, and we're looking to bring our first product to market. there we go. we need an investment from the sharks to help us scale to meet demand and grow the company even faster. i think part of being an entrepreneur is really just believing that you're gonna succeed no matter what. and we really believe that keen home is something that's gonna take us very far in life.

hello, sharks. my name is ryan fant. and i'm nayeem hussain. and we're the co-founders of keen home, headquartered in new york, new york. we're seeking $750,000 in exchange for 10% of our company. hussain: the keen vent is a wirelessly connected air vent that automatically opens and closes to intelligently redirect airflow throughout a home. the keen vent is easily user-installed. a customer simply removes the existing vent from the duct opening and inserts our product in its place. once installed, the vent automatically connects to the internet. the average u.s. household spends half it's energy bill on heating and cooling. now, you wouldn't use a single light switch to control all the lights in your home,

so why are we still reliant on a central thermostat for the heating-and-cooling needs of individual rooms? with the keen vent, you can use your smartphone to take control of your airflow. so, sharks, are you ready to help us make every home... both: ...a keen home? so, it's a thermostat, in essence? not really -- it's an airflow -- so, is it just a airflow -- think about it as a complement to an existing thermostat. so, if you have a smart thermostat, like a nest, it'll make your nest smarter. how much money do i save in a month? if my typical bill is 600 bucks... sure. yep. ...how much money do i save? the average homeowner spends $2,000 per year on heating and cooling. if we can reduce the cost by even just 10%, which would be way less than what our tests have shown. you have a two-year r.o.i. it's a two-year r.o.i. how many units did they put in each one of those houses? four to up to six. four. we had a -- our product costs $80 per vent. okay, so, not -- not -- okay, so -- so, a system of four is $320. how much have you all invested, and how much have you gone outside to get? this is about -- this is about to get to investors and all kind of stuff right now. yeah, so, we invested $50,000 --

of our personal money, and then we raised, right at the beginning of the year, $120,000 as a part of the techstars accelerator program. uh-huh. and then, in may, we closed a seed round of $1.5 million. there you go. that's what i was looking for. [ laughs ] silly goose. oh, the punch line, right? you didn't think we were gonna get to that, huh? what was the pre-money -- what was the pre-money value on the $1.5 million? $3.75 million. mm-hmm. so, that round puts you at a post-money of about $5 million? about -- roughly $5 million, yeah. $5 million, yeah. what is the added value that makes me pay an additional $2.5 million, 'cause you're asking me to give you $7.5 million. no, more than that. what's happened since may that would make me pay that much more? we de-risked the business from being an idea to now it's the product. we have -- no, you haven't sold any yet. we've presold 35,000 units to lowe's. greiner: presold 35,000 units to lowe's. oh, yeah. yeah. punch line number two. now you're talking dirty. did they ask for exclusivity for a certain amount of time? yeah, so there's -- how long? so, there's a two-year exclusive in -- whoa! no -- in the home-improvement channel -- only in the home-improvement channel. in the home improvement -- mm-hmm. now, can you still sell, though, online? yep, mm-hmm. oh, yes. oh, yes.

and can you sell to independents? yes. yes. and can you sell it to other corporations, b2b? yeah. 100%, yeah. all right. guys, when i look at this, i say this is a feature, not a product. okay. right? you're a feature of the automated home. it's very difficult -- when someone walks into that lowe's store, they are looking to automate their homes, not automate their vents. mm-hmm. right? that's the challenge. i don't think that you have an automated cure for that. you have an opportunity. you're a long ways from it. and for those reasons, i'm out. greiner: here's my problem -- i'm a little confused about what exactly this is going to do and how it's going to work. i get the overall concept. mm-hmm. but i still don't have it really clear. and to me, that's a problem. you need to have something really fast, where people stop in the aisle, and they go, "i know what that is." because i find that it's confusing, and i think you're gonna have difficulty explaining quickly in the retail store what it is, i'm out.

my issue's strictly financial with you guys 'cause i put up $750,000 -- i get 10%, which is marginal, which bothers me as a shark, i must tell you, because i like deals. well, we learned it from you. no, i know, but, listen, i'm looking at it, saying, "only a few months ago, "somebody else bought in at under $500,000 or just around $500,000, and i've got to pay $750,000." that doesn't sit well with me -- i have to be honest with you. well, what are you gonna do? fant: well, make an offer. well, i think, for my value, which is always a lot... cuban: wait for it. [ laughter ] ...okay? wait for it. ...i'm thinking what makes sense is $750,000 for 25%. it's a little rich. not really. [ chuckles ] and we have a fiduciary responsibility to our existing shareholders, of course. no, i understand that, but there's only one mr. wonderful. there's value in that. thank god. [ laughs ] i think that's a reasonable offer, actually. so, kevin's offer was $750,000 for 25%. mm-hmm. gives you a value of about $3 million. makes sense. i agree with kevin. i don't think you've demonstrated enough uplift in the value from the period of time.

ah. all right, daymond, what are you gonna do? $750,000 for 25%. that's my offer. that's your offer. i'm gonna match that -- $750,000 for 25%, but i would like to manufacture the goods if i can match or beat the price so that i can make money on that side. interesting. okay. that's interesting. i'm looking at the commercial application. i'm looking at trying to go and approach hotels -- all those areas that you're not blocked out of due to lowe's, all right? so -- we've been in discussions with a very large hotel chain to place these into every single one of their rooms all across the country. well, 'cause that's where the efficiency matters. mm-hmm. mm-hmm. yep. if you have 3,000 or 2,000 rooms, you can cut them off. yep. mm-hmm. herjavec: i think you've done a good job. you're a feature, but that's okay. once cisco controlled the big i.t. market... sure, mm-hmm. ...and there's lots of little companies that control features of it. mm-hmm. so, i'm okay with that. today, it's vents, tomorrow, it's that. correct. i mean, i don't think you really need the help with the manufacturing. sounds like you're on track. you know what? gonna make you an offer. this is where he tries to stab us in the back.

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world's best inflight entertainment. narrator: two sharks are out. nayeem and ryan have two offers on the table from daymond and kevin for their smart air vent, keen home, but robert is also interested. so, daymond and kevin are $750,000 for 25%. i think that's a little rich. i'll give you the $750,000 for 20%. thank you for your offer. that's a good offer. that's still a down round. it's still a down round. that's correct. it's still a down round. down rounds send all kinds of signals in the marketplace, as you all well know, and that's not something that we're looking to entertain right now. okay, i'll solve your problem for you. let's go debt, all right? you'll give me the 10%, i'll give you venture debt. i'll give you $750,000 at 8.5%, okay? mm-hmm. and i want 10% equity for that. mm-hmm. i'll put the money up for 36 months, all right? okay. but it solves your down-round problem, and you get a shark.

i would be willing to go in with kevin on his deal. you want to go 50-50? where you're at, venture debt is not a bad option for you. sure. if lori comes in with me, you get two sharks, and you do not do a down round. right, but i want 25%. a down round, man. no, hold on. they call him "mr. down round." daymond, they're not gonna do the down round. are you partners with them already? i think the loan offer is interesting. i get why you don't want to do a down round. i respect that. what i'm really fascinated by is the compliance that's gonna happen in this industry. it's gonna be driven by the insurance companies for smarter homes. yep. mm-hmm. mm-hmm. and i think that's gonna take all of this to another level. we agree. mm-hmm. $750,000 for 13% -- that's my offer. okay. o'leary: that deal's gonna cost you more equity. i have a lot of products that are fitting in the hardware space. we're in lowe's, we're in home depot, bed bath & beyond. there's a lot of places you can go. agreed. mm-hmm. um, i'll -- i'm willing to go down more

to, uh, $750,000 for 20%. you don't have proof of concept yet. you have a great start because of the lowe's -- doesn't mean lowe's is gonna sell it, doesn't mean it's gonna work over there. it's a little early. i never like to take debt when i'm at this stage. i'm an all-in kind of guy when you're this small. when you get bigger, sure, take on debt, but when you're small, you got to drive it, baby. you got to go. but you'll have so many sales, and you'll have so much money, it won't matter. those are the offers. what are you going to do? we're looking for, at this stage of our company, a real partner who's gonna jump all-in and -- and take this wild ride with us. oh, thanks. oh, he's talking about me. i think he was talking about me. so -- so we'd -- we'd love to accept your offer, robert. wait. what is that? greiner: good deal. ah. congrats, robert. i love it. thank you. we really appreciate it. welcome to the keen -- for sure. yeah, great job, guys. thank you. thank you. greiner: congrats, guys. good luck. thank you. thanks. thanks, guys. bye.

herjavec: yeah. thank you. man, whatever, robert. [ both laugh ] hussain: robert really seemed to understand the brand vision. he has the ability to build brands, build companies, and really, most importantly, build strategic partnerships. ♪ [ telephone ringing ] -whoa. [ indistinct talking ] -deductible? -definitely speaking insurance. -additional interest on umbrella policy? -can you translate? -damage minimization of civil commotion. -when insurance needs translating, get answers in plain english at progressiveanswers.com. ♪ -he wants you to sign karen's birthday card. it's a high honor.

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narrator: next into the tank is a product designed to help students with the high cost of college. hi, sharks. my name is christopher gray, i'm from philadelphia, pennsylvania, and my company is scholly. i'm seeking $40,000 for 15% of my company. college is expensive. i know -- i'm a student. the cost of college rises every year, and students and parents are forced to take out student loans to pay the bills. this puts many students in insurmountable debt. but there's an alterative -- scholarships. the only problem is these scholarships are extremely hard to find. this causes millions of dollars in free money to go to waste, as many students don't know this money exists. so, that's why i created scholly. scholly's a mobile app that matches students with hundreds of potential scholarships.

you simply input some information about yourself, search the state you live in, you gpa, and press "match"... and there you have it -- a list of scholarships you qualify for, literally in minutes. so, we have, like, the lori scholarship, bank of the tank, shark bait scholarship, mr. wonderful's stingy scholarship. see? $1,000. [ laughter ] cuban: i like him already. we love you already. boy, you're really sucking up to me. [ laughter ] you're stingy, man. i can't -- what can i say? scholly isn't just a business, it's my passion. i want to help students like myself find money to go to the college of their dreams. so, investing in scholly means that you, too, can make some dreams come true. so let's do this. christopher, great idea. you are 100% correct. there are so many scholarships, it's a jungle. yes. i don't know how people figure it all out. a couple of questions -- is that the actual app that you showed me? that's the actual app. the app is for iphone and android, yes. how are you curating all the scholarships? i've actually been building databases and helping students with scholarships for a couple years now. and i aggregated that list of scholarships

from different websites, then i manually input them, and, basically, once they're in our database, we don't -- we don't have to manage the process anymore. do you do this by yourself, or do you have partners? i have two co-founders. they both are app and web developers. i am the -- i'm the business guy, the c.e.o. how'd you come up with this idea? so, i'm just right now a junior. i'm an undergraduate at drexel university. i won $1.3 million in scholarships. $1.3 million? cuban: what?! yes. o'leary: really? i'm fascinated by that. how did you achieve that? yeah, i mean, that's like a lottery win. so -- yes, so -- how did you get there? yeah, so, i -- it took me a while. it took me about seven months beginning in my junior year to really find all these different scholarships. i scoured the web. i got multiple full-ride scholarships. i got coca-- the coca-cola scholarship. what was the biggest one? the bill gates scholarship. how much? wow. it's a full ride to any college you want to go to. tell me more about your drive to get the scholarships. i had a single mom -- low income, two siblings. and i had to work really hard. i had a great gpa, i had great test scores, and i actually could not apply to some of the schools i wanted to go to because of the application fees. i think we can all relate to that story. right. i'm the first person in my entire family

ever to go to college. i get the value. what you just did was amazing. so, do you think, like, you could get me $1.3 million... yes. ...for educating these -- these bobos up here for the last five years? yeah, so -- so, actually, with scholly, every student that uses our app is matched between 120 to 220 scholarships, totaling over $4 million. so it's giving them access to win all that money. so, in other words, you -- you found the ones that are -- are -- are institutional-neutral. out-- they don't care where you go. yes, scholly focuses on outside scholarships. we're not -- we're not booked on institutional scholarships. so, to daymond... herjavec: ah. ...so, daymond, your question is -- there are about $100 million that goes unclaimed in outside scholarships, mainly 'cause students don't know they exist. okay, christopher, how do i make money with this? scho-- so, scholly is 99 cents in the app store. we already sold 92,000 apps. how many? 92,000 paid apps, less than a year, and all with zero marketing. so, it's really cool. we had a very effective p.r. strategy going for it. so, i used the fact that i won $1.3 million in scholarships and pitched reporters to the fact that i created this app for other people. it's brilliant. greiner: do you want to know something, christopher? go ahead. i'm gonna do something i've never done before.

i haven't heard a whole lot, but i'm gonna make you an offer right now. awesome. cuban: let me just ask some real questions, okay? my offer right now is the 40k for 15%. i believe in you. i believe in what you're doing -- is good. i think that we will make it together. so i hope you just say yes. i would love to hear other offers, lori. and i really appreciate that. that -- that really means a lot to me. scholly is very important to me. i'm offering you exactly what you asked for. yes, i would love to he-- i don't -- i'm not even gonna ask you, "how do we monetize this?" but i want you to say yes. john: i want to be part of this. it's really a personal matter. i started working at 10 years old. and i was raised by a single mother. me, too. when i got to about the age of 17 years old, i wanted to go to college, but i had to work because i saw her working three jobs, and there was no food on the table. i resonate with this, so i'll offer you the same thing --

the $40,000 for 15%. christopher, look at me. i believe in what you're doing. i-i-i-- i don't care about how we're going to monetize it. i just want you to take my hand and say "deal," and we will make it work. but i'd like you to do it right now. wow, that's pretty aggressive. john: if she had the best interests, i think she would let you listen to everybody. i mean it. never happened, christopher. i -- whatever way, i want to be part of this. look at me. i-i just want to hear what everyone has to say. herjavec: christopher. like, i-i love your offer. i love the money. don't get impatient with me, and, also -- so, christopher. yeah? so, the key to your site is your ability to update the scholarships. is there a back-end engine that's taking it all in? how are you doing that? how many different scholarships did you say were in your database? between 10,000 and 20,000. oh! my co-founder developed an algorithm where he gathered all the scholarships from different -- from different -- from different websites. now, see, that's what we're trying to get to. yeah. look, you have two co-founders. right. they're developers. i want to know what their skill set is because -- me -- me too, because that's what i need to understand

is how you're gonna constantly do it. you walked in here with a thought. this could be a very large business. and daymond and i both are not even asking you. [ sighs ] well, let him answer it. let him answer. i want to know what he says to that. john: yeah. greiner: we're saying-- you know what? yeah, but that's exactly the wrong thing. hang on. hang on. that's -- that's exactly what he doesn't want. herjavec: lori, you're minimizing him. just hang on. i'm not minimizing him. do you want a charity donation... he are ready -- no. ...or do you want to build a business? which is it? that's ridiculous. i mean, i -- my goal here -- i want someone that really believes in what we're doing. this doesn't mean -- yeah. i told you i did. john: i believe in it. robert and mark probably have -- how could you believe in it when you haven't even asked about the entire business and how it works? here -- because this -- because you know what? we'll figure it out. because -- that's right. we'll take affordable next steps forward. you know, christopher, you know -- we will call the other roberts and cubans of the world to give us advice on this. well, you -- you know -- you know what? you know what? you know what? yeah. you know what? i'm willing to do it with daymond. yeah, okay. daymond, if you're willing to do it with me... i absolutely will do it with you. i think that you should just say right now, "do it." okay, lori and i are gonna go in 50-50 partners. that's $20,000 from her, $20,000 from me for 15% of your company. you have to make a decision now.

i'm gonna take -- i'm gonna take your deal. done. good. done. thanks. all right. thanks. thanks. thank, man. that's awesome. thank you. i love you guys. i'm really glad. thank you so much. let's get a group hug. group hug. group -- group hug! thanks. thank you so much. good. you're amazing. thanks. thanks so much. i am feeling really great. i stepped in the shark tank thinking, like, "profit, profit, profit," but i'm really happy to find two sharks who don't -- who care more about what scholly's gonna do for the public than -- than the bottom line, so i'm really happy. i'm super excited. you know, when i had nothing and, uh, couldn't rub two pennies together, you know what i really hated? i hated when people wanted to give me a break because they felt bad for me. uh, we're not doing it because we feel bad for him. john: i don't feel bad at all. cuban: i never got one of those. [ laughs ] are you kidding? i don't feel bad at all. i'm not undermining what you did. yeah, but why do you think this was a pity move? the guy was a great guy. it wasn't a pity move. you don't know how the back-end engine worked. you didn't even know that. you know what? no, but -- but here's what -- here's what i do know -- he was 99 cents an app. but i asked, "is it a charity, or is it a business?" he was 99 cents an app. he downloaded 92,000. greiner: sometimes, it is not all about money. i'm a very charitable guy, too. sometimes, it's about helping america

and making the world a better place. is it a charity? lori, that is such crap. no, it is not crap. i telling you -- i'm not sitting here -- we are not the charity tank. no, we are not the charity tank. we're not here to give it out. that's not charity, robert. but you know what? that's not charity, and -- really? how does that work? how are you gonna grow that business? what's the execution plan? do you know what we're gonna do? we're gonna build the business -- trust me on this. we're gonna grow -- people getting educations. what? "we're gonna figure it out?" yes, we're gonna figure it out. that's right. america, come to the tank! we're gonna give you money because we like you. oh, my god. oh, you didn't invest in anybody else who's gonna figure it out. what are you talking about? you bet on the person. i never got any information. with the -- with the information -- i got information. he wasn't allowed to talk because you had to force $40,000 down his throat like a goose for pâté. [ laughing ] oh, my god. yeah. no problem, guys. that's what he came in asking! i thought, at that point, that i received enough information to feel like i want to be part of the ride. you know what, daymond? if he would have just said, "this is an idea," i wouldn't have done that. look, i-i'm not trying to give you a hard time. i agree. i'm not trying to give you a hard time. you know i really -- you guys just don't like when you get scooped. [ laughing ] oh! oh! the bottom line is that this guy -- this guy -- it -- that was so -- wait. excuse me. i'm talking. i actually believe that daymond and i, no matter what it is that this guy needs -- we'll be there to back him.

yeah, because you just bent over backwards for $40,000. it is not the charity tank. come on. come on, lori. that's ridiculous. if you're truly trying to help the guy then -- i am. wait. if you're truly trying to help the guy, what i want to do is ask him questions. this is all sour grapes. he started talking about an algorithm. what do you know about algorithms? it's all sour grapes. it's not sour grapes! you know what? you're really pissing me off right now. i'm gonna say something rude to you. [ laughs ] no, don't, because you're not a rude guy. and i don't want to say something rude to you, so i'm just gonna go, okay? because i -- there was no need to do something like that. yes, you should do that, but that's actually not you. you got -- you're smarter than that. you're not the guy to walk away and walk off. yes, we're the shark tank, we're not the charity tank. but sometimes, there's a point to being compassionate and caring about things that matter. i don't think it's not an influence. then give him $100,000. run out there and change it to $100,000. things that matter. things that matter. be compassionate. education and scholarship is important. be compassionate. you don't have to do that. the guy -- he already died 'cause you've choked him on the $40,000. oh, my god. you want to help all these kids and send a message, be compassionate. you know what? i feel really good about what i did. let's go. daymond, do you? i feel great. we feel great. i think they don't like that we jumped in.

i'm sorry that they were upset. but you know what? it's sour grapes. what we did was great. thank you. i love it. narrator: 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 multi-use accessory for new moms. hi, sharks. my name is melanie disbrow, and i'm from allen, texas. my company is milk snob, and i'm here today asking for $125,000