for a 7% stake in their mission-based hammock company,
Yellow Leaf Hammocks.
Daniel is interested and has made a staggering offer.
What?!
I want 33% of the company... O'Leary: Yowza!
...and I'll give you $1 million. Herjavec: What?!
Say yes or no, and then it's done.
O'Leary: Whoa!
$1 million, 33%. Demin: We -- The reason --
Connors: Wait. Actually -- Can I explain to you
the reasoning that -- Demin: You --
You mentioned our profitability on last year.
I want to mention our profitability on this year
and what we're doing next year, to be fair to us.
Yeah, but that's a little wishful thinking, right? And I think you wo--
No, 'cause they got the order. Go ahead. Connors: Yeah.
So, on the $1.3 million that we're doing this year,
we're doing $360,000 in profit.
One of the biggest things
that we're looking to do with this money
is we have a huge product road map of solutions.
Rachel, stop talking and take the deal! So we started here.
He's paying you over eight times --
Why? There might be another deal. Cuban: Good for you.
That's an amazing offer.
We also recognize
that we might not need all of that money right now.
Oh! No!
Well, we also might not -- What are you doing?
Well, we might not -- O'Leary: Oh!
Alright, well, hey, if you don't need all the money right now...
Good for you, Joe. Good for you. ...I'm gonna make you an offer.
Want to hear my offer? We don't -- We're not prepared to give away
that much of our company.
[ Sharks groaning ] Greiner: Do you want to hear my offer?
-Listen to Lori. -Alright.
Ohh. Oh!
I mean, I sit here, I listen.
-Oh! -I watch --
It's a hammock company! Demin: It's not enough.
Well, listen, he just said
maybe he doesn't need all that much money.
So I will give you an offer.
I'll go $400,000 for 20%.
[ Chuckles ] Now, granted,
his might be a better offer for you.
$1 million for the 25% and both of you.
I don't want to go to the million.
How about $500,000 for 25%?
No. No, that dilutes --
Lubetzky: What is your counter?
For 25%?
$600,000 for 14%.
Oh, wow. Ugh!
Herjavec: I love the idea,
and I think you guys are the real deal.
Thank you. I will give you
the $400,000 for 15%.
Lubetzky: If you take the million dollars from me,
you won't need to dilute yourselves again.
You might. You know how much money Kind has raised
in its entire lifetime for the business?
The total we ever raised in our entire history
was $5.2 million, and we sell over $1 billion in sales.
I'll teach you, and I'll help you
run the business in an efficient way.
Are you okay with 33%, or is that too much for you?
I think it's too much because --
What's the maximum that you're willing to do
for someone that's gonna really roll up their sleeves
and help you?
We're looking at the future.
If you took 33% now, I worry that we would --
it would hurt us at a subsequent round when we grow.
Why? What subsequent round?
Greiner: When I started my business, started with one product,
I took out a bank loan, it was about $325,000.
I paid it back within a year, and I never had to take a loan
or bring in an investor again.
So listen, I don't think you need to just sit there
and take on all these investors
and take in a whole ton of money.
You just need to be strategically smart
and take in the right investor.
But you need somebody. That's the bottom line.
So I'm gonna change my offer.
My offer is this -- I'm gonna go $200,000 flat,
then I'm gonna give you a loan of $200,000 at 7%,
I'm going to fund purchase orders if you need them,
and I'm going to ask for 17%.
I just offered you $400,000 for 15% first. You may not like it, you may not,
but the one thing that I can offer is,
is I can offer somebody who will hold your hand,
take you down the road, do everything that you need.
Lori. I care about helping women,
I care about helping environment,
I care about helping the world,
and I really like the two of you,
so I care about helping you.
I love the two of you.
Lori, thank you so much. Love you guys.
We love you guys.
We're making it hard on them.
What's the minimum percentage,
and what dollar do you want?
Yeah.
Focus, Joe.
Would you do...?
[ Chuckles ]
[ Whispering indistinctly ]
Would you do $1 million for 25%?
♪
Just because I love you.
Yes! [ Lori laughs ]
We're gonna make a huge difference in the world. Mm!
[ Laughs ] We're gonna change some lives.
I never thought he'd go down to that.
It's never happened before in "Shark Tank" history
when someone came in here for $400,000
and walked out with a million.
I'm really excited to work with you.
We're gonna make a huge difference. I'm so thrilled. 00:04:14.087,00:00:00.000 I'm so thrilled. Thank you. Thank you.