Tech Developer's DEMANDS Fire Up The Sharks! | Shark Tank AUS

First in the

tank

, a couple of young entrepreneurs who never forget a special occasion. We are trying to revolutionize a fairly traditional industry. We will do it with

tech

nology. Great products. There is something great for artists. Hello, my name is Patrick and I'm Tom. We are from Melbourne and our company is called Cuddly. We're looking for $250,000 for a 7 percent stake in our business. Nothing beats the feeling of receiving a heartfelt, handwritten card, but finding quality cards and mailing them can be a real task. With card ly it's simple, you write, we publish the platform we've created uses proprietary

tech

nology to take what you write and make it look like real human writing, then we print the card and receive it in the mail the same day from a location close to the recipient , this makes Carli perfect for sending cards across the country or the world.

We have taken a close look at the greeting card industry and tried to improve it in every way. We have built an amazing curated artist community consisting of 50 branded independent artists. from all over the world and we pay them 20% instantly. We produced a super high quality card for only $6.45 including your stamp. It costs $55,000 to get to this point. We fully launched at the end of November 2016. So far we have made $30,000 in sales with a little over 50% coming from repeat customers, our plan is to increase the number of active card customers to 50,000 by the end of 2017 and 200,000 by the end of 2018 so

shark

s would you like to see how Card Lee keeps my word for the first one here is one of ours that looks very nice fantastic good evening thank you thank you did your research that's it so cute, thanks for coming, it was Patrick and Tom Tom Tom, look at your card, sorry, yeah, okay, I already did it and you're looking. for two hundred and fifty thousand for seven percent to the Evalia company about three point five seven million yes, just a second, just be careful with them, yes, okay, so we wanted to show you how the platform works, who wants to try it first .

Try it, yes I'll try, all the magic happens online so you can do it any way that's fun from your computer or you can be on a mobile device and to write, just type anywhere in those dotted boxes. However, staying is choosing your handwriting style, so it's more than just a handwriting font, it's the subject of a first patent, oh, you know, you're talking about, yeah, how we take a font of good quality base handwriting and we apply a process that we call humanization and the The essence of this is that we want to apply the type of inconsistencies that a human being makes when writing by hand, for example, when you write the lines slant, they do not They are completely straight, the characters are not perfectly aligned, they are rotated if they were all uniform.

Would you notice that it looks like a computer did it and now we also accept gift cards? It's a good idea because I was thinking I wouldn't use that any less. It had a gift card I could put in it. Tell us about the business model. because it is an enormous valuation, it is a great value, a sin, let me tell you that little by little it costs three point five seven million dollars. Hello, and you have sales of thirty thirty thousand thirty thousand dollars to give us life. Safe business model, absolutely so. I guess the most important thing is its scalability.

We have identified the potential of twenty other countries to which we could also expand. Yes, in terms of why we arrived at that valuation, most of the sales obviously occur in a beta phase. so we have actively marketed the product in any way, yeah Tom Tom, do you ever get tired of him doing all the talking? Haha, happy that he takes the business in the numbers from the other text, so although the technological development is Tom, yes, there is the advantage of having an in-house technology co-founder, mm-hmm, tell me about your 50 artists, yes , they are from all over the world, no two artists are playing the same type of style.

We are all very, very different and for an artist to get 20% by doing nothing is huge, so that's 20% of what they get, 20% of the 645, so what does the printer get? The printer gets 50%, so our costs including GST are $2. 95 okay, including publishing, including shipping, yeah, okay, so artists get 20, yeah, breaking the 50 and you keep at 30 percent, the guys are very impressed with you, obviously a great team has to give you a double tick based on your assessment and I'm not a tech boss. I'm okay, okay, yeah guys, you are an incredibly competitive space, everyone who has some kind of workforce-free lens, does creative things, is a potential competitor, not to mention the postal services of the world and a bunch of other people fighting for relevance and the way things are changing by going from paper to virtual.

I'll make you an offer of twenty-five thousand dollars to buy a third of the company, so 33.3% you have nothing right now. Thirty thousand dollars and sales spent fifty-five thousand dollars to get to where you are now. I think I'm doing you a big favor. The evaluations have just gone from three point five seven million to seven hundred and fifty thousand. Did he just say what he's going to do? a favor, yes, how do you feel? It's much more than we would be willing to give away today. Oh, come on, honestly, we know this business has a lot of potential now that you're around ten for breakfast.

I have no sales and that's exactly it Steve, we've been here since breakfast and we haven't even started mapping oh, good answer. I love the way that béchamel face looks that was really good, okay guys, 250,000, thirty percent, now there's still a way to go. They know it and they slap the little bottom feeders that take you down, you guys have so much confidence in America, that's what I'm giving you a little bit of mentoring advice, they know it's okay, it might be okay, that's really interesting, so on the bottom feeder, yes, I'll explain. To me, why is your assessment of three point five seven incorrect?

You call me a bottom feeder and you've already told them that valuation sucks, so excuse me if you'd love to explain that to me. I would love to hear that it is very simple, this is a technique. the company will go somewhere exactly will make an offer I only see the executions well, the video says, I say, that's the video anyway, the kids can calm down, blah blah, I love your business, I really love it, I believe in the power of words. and give away love it absolutely love it I hate the 7% assessment that tells me we weren't really looking for an investor their knowledge they know this year I didn't ask them, there may be a little wiggle room there, but not to the extremes of the 30%, that's a lot of movement, isn't it?

It's too far, but if you're looking for something, start with one, yes, absolutely, absolutely, I know we're being harsh, but we won't be harsh. you're stupid, we believe strongly in the products, I think they're here to make a deal and I'm very angry but we're definitely here, no you're not Patrick and Tom have turned down two offers that are already spinning. 50,000 30% notice the way they live and their refusal to compromise we strongly believe in the products it's causing quite a stir among the

shark

s I don't think they're here to make a deal and I'm really mad but we are You're definitely here, no, You're not, so I don't question Naomi often, I've never been grieving, I mean, we think about that, but I'm thinking about today, I'm or I don't know if you're here. for a deal then 33 percent 30 percent are you going to make an offer no I just want to have a conversation first of all I know how hard it is to acquire customers and I know what it costs I have five hundred thousand customers every year too I have a corporate gift business a company and that also has hundreds of thousands of possibilities to ship these cards, so if you want to speed up the market, I can give it to you, but I will NOT do it for seven percent, why would I?

So I'm making an offer of $250,000 but I want to be your equal partner, so that's 33 and a third percent that's what Steve, but I bring you a million clients, well, yeah, it seems to be honest, 33 is too high, but it needs to count or something. what you're going to accept otherwise, I think it's a bit silly right, you're just kicking, so no, no, no, he said 10% 10% something close to 10 percent would be great, you have to do it. Get your head out of the clouds guys, because that's ridiculous, I mean, me and every measure, this is very hard to swallow, yeah, sure, this is where we are today, this is, we just have I just released this is a seed funding round.

There will be a different story later, so now we are stuck in the rules of the game because you ordered 250, right? Yes, we have another professional investor. I do not do it. stupid deals but drop what they think I don't make stupid deals yes sometimes I need to do something that treats our capital with the respect it deserves and in 10 percent that may be adventurous, being polite is less adventurous in 15 fifteen we are improving How trainable do you think Patrick is? Yes, probably not, but I like a person who knows what he thinks. Yes I know.

I think he's holding his own. He's obviously he's been in the business before. Look, congratulations. to get something off the ground I think the evaluation is, I won't say ridiculous, but very ambitious and, unfortunately for you, I have other options. You know, I've often said that deals are like buses and another one always comes along, so I'm thinking. What could I do with my 250,000? I might get a little return elsewhere, so no disrespect. I'm sure you'll make your business work, but I guess I'm out on this one, so here's what I do. I'm going to make and it's my final offer and the last time I speak, okay, so if I do what I say I'm going to do, I want 15% now, but I want 25% six months from now after I give it to you.

Those customers want to have a 10 percent option. I moderate one option exactly, how does it work? My request is for 15 percent for one hundred and fifty thousand dollars plus a loan of one hundred thousand dollars that converts to 25 percent in six months. If I delivered what I said I was going to do, that becomes an extra 10 percent correct. I don't see why I should give 15 years of my experience and my clients so I can sit on the sidelines for 10%, yeah. it's just rude yeah we get it and I guess the counterargument is that that would say the only way for our business to be successful is with your partnership know your speed to market.

I don't disagree, but we are very confident that this business can grow. so that's my final offer, okay and your response. I know you guys just have to be on the lookout to buy them and if you've said no to these two, no, I'm looking at 15 points. Janine is out. Oh, I'm sitting here going right. I'll come in at 10, okay, ma'am, but every time I go in to come in, you say a notice in one of those little piles. I can't understand your rating and I've done everything I can to try to get there. I'm fine, it's a shame you know you want me as a partner.

We don't do it at all. We did not submit an offer. I have made an offer. I'm at 15% for one hundred and fifty thousand. with an option to take it to 25, what happens if I reduce that option to another five percent? 15 for 2015, I'm going to 20 after six months of delivering my Namit to customers. I'm a 20/20, okay, okay, 250, right, 250. Oh, okay, same thing, so we get to the same end, yeah, yeah, but it depends on you doing a great job, so could we Put a number on how many clients you think you can bring us? Absolutely, how are your numbers.

You'll know how many I started to fit. You know this is a partnership. Today three of us would like to make a contingent if you pass. Bring us 50,000 customers. Oh, that's not too many compared to 1 million. That's exactly nothing our plan was to choose. 30 by the end of 2017, so it has to be a bit impressive, so I'll say 50,000 customers, okay, after six months of integration, okay, we expect a greeting card from you in the morning, all the best for profit, Forget it, boy.