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I Became the Youngest Shark Tank Judge · The Empire of Wealth

• 0:01
  Speaker 1: Yeah, come on in. Hi, I'm Davey, and this is
• 0:06
  A Day in the Life of a Real Shark.
• 0:08
  Speaker 2: I remember when I was 12 years old.
• 0:11
  Speaker 1: What are you doing?
• 0:13
  Speaker 3: Nothing. Sorry. Let's go. Last season on Shark Tank Australia,
• 0:24
  I missed so many good deals. This time I'm gonna
• 0:26
  be hungrier than ever.
• 0:34
  Speaker 1: Alrighty, the vlogs are back.
• 0:36
  Speaker 3: We're doing Shark Tank season two, so we're about to
• 0:38
  fly over to Sydney, gonna be very exciting. I thought
• 0:40
  I'd take the opportunity to answer all of your major
• 0:42
  questions about Shark Tank. The top Google questions such as like,
• 0:46
  what's your best investment? What happened to your previous investments?
• 0:49
  Are the arguments real? I saw Stephen Bartlett do this
• 0:51
  for Dragon 10, thought it was a great idea. Thought
• 0:53
  it'd be a good way to structure the vlog as well,
• 0:55
  showing you what we're up to.
• 0:56
  Speaker 2: Let's get into it.
• 1:06
  Speaker 3: I don't know why people think that sharks don't invest
• 1:09
  their own money.
• 1:10
  Speaker 1: It must have been like a rumor in the.
• 1:12
  Speaker 3: Early Shark Tank US seasons where they were using fund
• 1:15
  managers to fund them. But like the deal size and
• 1:18
  structures doesn't warrant external investors. A lot of the deals are,
• 1:23
  you know, under $ 100, 000 and you'd.
• 1:25
  Speaker 1: Have to pull them all up. But yeah, in long
• 1:27
  story short, yes, we use all of our own money.
• 1:29
  And yeah, we're not paid as well to do this show.
• 1:32
  We all do it for the love of the entrepreneurs.
• 1:35
  Speaker 3: At the moment, the two best investments that look like
• 1:39
  they're going to get a really successful exit is we
• 1:42
  have Mimi & Co.
• 1:43
  Speaker 1: She's just an absolute machine. Mum packing orders in our basement.
• 1:47
  Now she's at a 3PL. She's expanding to New Zealand,
• 1:50
  doing really well.
• 1:51
  Speaker 3: She did $ 100, 000 in one day with a lot of
• 1:53
  the daily mentor things that we kind of implemented for her,
• 1:55
  like doing offers and urgency projects. And then the other
• 1:58
  one is Suda, which is a suit rental business me
• 2:01
  and Sabree invested in. And they're doing really, really well.
• 2:04
  So they've validated in the UK and can probably get
• 2:08
  some really good results there.
• 2:09
  Speaker 1: So both of them should have really successful exits.
• 2:11
  Speaker 3: But these things just take time. Like it took me
• 2:14
  three years to start pulling money out of it, Woody.
• 2:16
  Because of the cashflow conversion cycle where you're just constantly
• 2:19
  investing money into inventory, there's huge uncertainty for the first
• 2:22
  three years.
• 2:23
  Speaker 1: So you gotta be patient with them as well.
• 2:36
  Speaker 3: It's hard for me to tell if other seasons or
• 2:40
  other countries' Shark Tank, the judges are close.
• 2:43
  Speaker 1: But you're spending so much time together. It's two weeks,
• 2:46
  eight hours straight filming.
• 2:48
  Speaker 3: And you're kind of in the dressing room in between
• 2:50
  getting makeup and stuff done. So we're all obviously like-minded
• 2:54
  individuals as well. So you definitely bond a fair bit.
• 2:57
  And you talk about investments as well. So I'm good
• 3:00
  friends with Sabree, Jane. Yeah, so I think a lot
• 3:03
  of them are actually quite close, which is good. That
• 3:06
  doesn't mean we don't argue or disagree. All of the
• 3:08
  arguments that you see on Shark Tank are 100% real
• 3:12
  because it's a heated thing.
• 3:14
  Speaker 1: You want the good deals, you don't want the bad deals.
• 3:17
  Speaker 3: And when someone says something wrong or says something bad
• 3:20
  about you, you need to correct it. Now we're off
• 3:31
  to our Airbnb. I've also got to go get groceries
• 3:35
  for the week. I'll run you through what I'm eating
• 3:37
  at the moment because I'm not a full carnivore anymore.
• 3:39
  I did that for a little bit. And then we also, yeah,
• 3:41
  I've got to get my Patek fixed as well because
• 3:45
  it's just stopped ticking.
• 3:46
  Speaker 1: Which is not good. After that, then we'll relax. And
• 3:48
  then tomorrow is the big media day.
• 3:53
  Speaker 3: So we jump on a call with them and hash
• 3:56
  out a couple of other terms, parts of the deal
• 3:59
  and make sure, you know, they're still really comfortable because
• 4:01
  they get a lot of emotion during the pitch. And
• 4:03
  then we go through a due diligence process because sometimes
• 4:07
  these are new founders and they just get things wrong.
• 4:10
  Like they might not understand the difference between gross profit
• 4:12
  and net profit. And that's, look, that's fine. Some people
• 4:15
  are just brand new to business. So we go through
• 4:17
  a due diligence process to handle that. Some people will...
• 4:22
  We can use to use like an accounting agency for that.
• 4:24
  We can even use some of our lawyers to do that.
• 4:27
  And they go through all of the details and kind
• 4:29
  of provide a summary report. And then I also get
• 4:32
  into the details and look at a bunch of things
• 4:34
  to make sure that, you know, the growth.
• 4:36
  Speaker 1: Opportunity is still there.
• 4:37
  Speaker 3: Then the contract stage and then you sign and you
• 4:40
  kind of get going. I'm at this stage like a
• 4:43
  lot more heavily involved with my investments compared to the
• 4:46
  other partners. people are the sharks and that's simply because
• 4:50
  daily mentor is like one of my main businesses so
• 4:52
  i have all of those resources and it's kind of
• 4:54
  like one of the main things that i do whether
• 4:56
  that's always going to be the case i don't know
• 4:59
  but yeah it's a pretty demanding process so i did
• 5:02
  the most deals the first shark tank i don't think
• 5:05
  i had the capacity to do that many deals this
• 5:07
  year so i'll have to be a bit more selective
• 5:11
  no oh they certainly didn't with us none of it's
• 5:14
  scripted It doesn't need to be scripted. We know what
• 5:19
  we want to hear about their story, so we ask
• 5:21
  about that. There's really kind of no need for us
• 5:23
  to have earpieces in.
• 5:27
  Speaker 1: So Bondi is.
• 5:28
  Speaker 3: Some of the most expensive property in the world. Robert Herjavec,
• 5:32
  he's got like properties in New York, Penthouse, whatever. And
• 5:36
  he said, for what you spend in Sydney is the
• 5:39
  most expensive. Like you just don't get much for your money.
• 5:42
  Last time I was staying here, last season, I was
• 5:44
  staying at Tamarama Beach.
• 5:46
  Speaker 1: It was like the beach over. And it was like $ 6, 000
• 5:49
  a night.
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  Speaker 3: And it was a pretty nice property. Ooh. Ooh. Can't
• 5:59
  see the lights. This is the shopping list. This is
• 6:01
  all I've been eating for the past two weeks. Haven't broke. Blueberries, apples, meat.
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  Gotta have the 100% peanut butter, nothing else added to it.
• 6:09
  And then beef tallow. and salt, pretty much all I've
• 6:12
  been eating. Used to be full carnivore, got to avoid
• 6:15
  trigger foods. Some people can have an autoimmune response or
• 6:18
  eat insulin, but I don't know what it is. But
• 6:20
  if you eat processed shit, you can get anxious. This
• 6:22
  keeps my energy completely stable, gets the best performance as well.
• 6:26
  So hanging out for a cheat meal, but I will
• 6:27
  do that after Shark Tank.
• 6:44
  Speaker 1: Hello mate, good to see you again.
• 6:45
  Speaker 3: You look like a bloody rock star.
• 6:48
  Speaker 2: Do I?
• 6:48
  Speaker 3: Oh, thank you. What's happening today?
• 7:00
  Speaker 2: We are doing photos, media, making some interviews as well.
• 7:05
  Speaker 3: Hello mate, how are you? We've got you again. Hello. Hi.
• 7:16
  How are you doing?
• 7:19
  Speaker 2: Hello.
• 7:19
  Speaker 3: Oh, good to see you.
• 7:23
  Speaker 2: We're back.
• 7:25
  Speaker 3: I'll hold you for.
• 7:29
  Speaker 2: The next two weeks. Look, I just think it's like
• 7:39
  when it's two weeks of work, you just don't get
• 7:40
  any other work done. It's definitely worth it. It's so enjoyable.
• 7:44
  And life's not always about keeping the same routine, working
• 7:47
  on the same things all the time. You want to
• 7:49
  mix it up, you learn a lot from being here.
• 7:59
  Speaker 3: So we've got, you'll see this on TV. This is
• 8:01
  where the entrepreneurs come in and they get all excited.
• 8:04
  And then they go through that door, the elevator, and
• 8:07
  then they come out the other side.
• 8:09
  Speaker 1: That in there is.
• 8:11
  Speaker 3: where they all prepare.
• 8:11
  Speaker 1: So they come in like three, four.
• 8:13
  Speaker 3: Hours before and they kind of practice their pitch and whatnot.
• 8:17
  Then yeah, they walk out through the elevator. This is
• 8:20
  where they pitch to us. So they stand in the
• 8:21
  middle there. They've got this big flash, this big spotlight
• 8:24
  above them. It comes down onto them. I started the footy,
• 8:38
  and in five years, I hit $ 500 million in e-commerce sales.
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  Now we're a globally recognized brand.
• 8:47
  Speaker 2: Ooh, strong.
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  Speaker 3: Very strong. So it takes about anywhere from 20 to
• 8:54
  45 minutes to pitch. We've actually had some at like
• 8:56
  an hour and a half. After they pitch, they go
• 8:58
  up there and they see the Shark Tank star to
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  make sure that they're all happy because it's obviously a
• 9:02
  stressful experience, make sure they're okay. Then they get posts
• 9:04
  around interviews. Then if, you know, they've got a deal,
• 9:08
  sometimes we're able to see them, but sometimes we get.
• 9:09
  Speaker 1: Dragged straight out.
• 9:10
  Speaker 3: So that's why, you know, we try to touch base
• 9:12
  with them as soon as the show's over to, you know,
• 9:14
  because it's quite exciting. So we get here, I think
• 9:19
  it's like 8 to 8. That was last time, but
• 9:21
  we need like an hour or so prep. So we
• 9:24
  generally can get eight or so pitches done because the
• 9:27
  setup time of the set actually takes a while. So
• 9:29
  we get downtime, we get 15, 20 minutes in between
• 9:32
  each pitch.
• 9:49
  Speaker 1: Have they got the numbers right?
• 9:51
  Speaker 3: What is the potential? What is the employee cost versus
• 9:55
  the revenue? If they've got employers, what is their marketing
• 9:57
  efficiency ratios? How much do they need to spend on
• 9:59
  marketing versus how many sales they're producing?
• 10:02
  Speaker 1: Is their sales declining month on month?
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  Speaker 3: Because sometimes it could be growing year on year, but
• 10:06
  like overall, but at the same time, that July last
• 10:10
  year was bigger than July this year. And that can
• 10:12
  kind of be hidden as well. So you're kind of
• 10:14
  just looking for an upward trajectory as well. And then
• 10:16
  you're kind of looking at things that aren't actually showing
• 10:19
  the profit and loss in the balance sheet.
• 10:21
  Speaker 1: You're looking at.
• 10:21
  Speaker 3: What future products do they have? Do they have all
• 10:24
  of their tax compliance? Are they completely compliant across their business?
• 10:27
  Those kind of things. Shark Tank.
• 10:35
  Speaker 2: Shark Tank Australia.
• 10:36
  Speaker 3: Now, Dragonstone's good.
• 10:37
  Speaker 1: I love Stephen Bartlett. I've been listening to him for
• 10:41
  a very, very long time.
• 10:42
  Speaker 2: I like how he brings that energy.
• 10:44
  Speaker 1: And it just feels a bit slower than Shark Tank.
• 10:47
  But I always grew up watching Shark Tank.
• 10:49
  Speaker 3: US, so....
• 11:06
  Speaker 1: Alrighty, that is a wrap for today. As you can see,
• 11:08
  it was just photos. The next day, I've got pictures,
• 11:11
  which is going to be exciting.
• 11:12
  Speaker 2: So, I'll see you then.
• 11:13
  Speaker 3: Week two.
• 11:24
  Speaker 1: Week one was very successful.
• 11:25
  Speaker 3: Got some great deals.
• 11:26
  Speaker 1: There was some really good pitches.
• 11:27
  Speaker 3: There was definitely arguments to get the best pitches. Ingo
• 11:31
  won most of the arguments, which was good. But yeah,
• 11:34
  all in all, the team's working really well together. It's
• 11:36
  making them a good team.
• 11:40
  Speaker 1: There's definitely some deals that fall through.
• 11:42
  Speaker 3: Due diligence because the founder just doesn't even know their
• 11:44
  numbers so there's definitely can be some issues there then
• 11:49
  even in the process of doing dd you can find
• 11:52
  out that you know they don't have a patent it's
• 11:54
  it's not a patent at all it's a registered design
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  or something like that so it's completely understandable then they're
• 11:59
  often new to the business but that's generally why the
• 12:02
  deals fall through in dd so for those reasons So
• 12:05
  recent pitch was definitely difficult for the entrepreneur. They have
• 12:09
  been running for a decent amount of time and they
• 12:12
  just have so many diluted focuses.
• 12:15
  Speaker 1: They're online, they're starting retail.
• 12:17
  Speaker 3: And due to that lack of focus and clearly communicating,
• 12:21
  I'm going to take this investment money and pour gasoline
• 12:25
  on the fire for this opportunity really cost them and
• 12:29
  caused a Bit of carnage.
• 12:30
  Speaker 1: What's been your best investment on Shark Tank so far?
• 12:32
  Speaker 3: I've had a few.
• 12:34
  Speaker 2: I've had a few that probably worth a few hundred
• 12:36
  million dollars. But I think the best investment globally was
• 12:40
  Scrub Daddy. That company's going to get sold.
• 12:42
  Speaker 1: That was Lori, wasn't it?
• 12:43
  Speaker 3: Lori.
• 12:44
  Speaker 2: That company will get sold for $ 800 million.
• 12:46
  Speaker 3: Wow.
• 12:47
  Speaker 1: That's huge.
• 12:47
  Speaker 3: And you got into clothing as well.
• 12:49
  Speaker 1: Tipsy O's.
• 12:50
  Speaker 2: I am the clothing guy. Clothing guy.
• 12:52
  Speaker 3: The U.S.
• 12:52
  Speaker 1: Shark Tank.
• 12:54
  Speaker 3: I am the Udi guy. I'm the... The main things
• 13:04
  that you write in your book, first is the names,
• 13:06
  so you don't forget, because I forget names so easily.
• 13:09
  Then you're writing the valuation, and then you're just writing
• 13:11
  any key figures that they mention, because sometimes they'll mention
• 13:15
  certain numbers, like even the margin of their product, and
• 13:18
  then they'll mention their profit, and it doesn't actually match
• 13:21
  with how many units they've sold, what margin, and it
• 13:23
  doesn't match their profit. So that indicates that they've been
• 13:26
  bleeding money somewhere, and the company isn't that efficient.
• 13:29
  Speaker 1: So really, you're just writing mostly numbers.
• 13:31
  Speaker 3: Okay guys, we're back. Did you miss us?
• 13:34
  Speaker 2: Because we missed you.
• 13:37
  Speaker 3: That's not bad, we nailed it, we're back. Let's do
• 13:47
  one more, let's do one more. No, let's do one more,
• 13:54
  one more. I think he nailed that one.
• 14:02
  Speaker 1: They technically can't pay themselves unless they've raised money.
• 14:05
  Speaker 3: So the founder's gonna use their savings until they're producing profit.
• 14:09
  Sometimes that can take a little while. Then, so generally
• 14:12
  they need to have a job to support them while
• 14:14
  they're building up their business to be enough where the
• 14:17
  profit can offset their living expenses. This is why it's
• 14:20
  very important when you're very young to start a business
• 14:22
  because you've got no responsibilities and you don't need to
• 14:24
  pay yourself much. You can just eat ramen noodles.
• 14:26
  Speaker 2: You know, people always think you have to have a
• 14:28
  certain amount of money to start a business.
• 14:30
  Speaker 1: And they say, oh, I don't want to start a
• 14:31
  business with a certain amount of security. And I'm like,
• 14:33
  the best time to start a business is.
• 14:35
  Speaker 2: When you have nothing to lose.
• 14:36
  Speaker 1: When you're young.
• 14:36
  Speaker 2: Because you have nothing to lose.
• 14:39
  Speaker 3: How was it today? It was good. I think there
• 14:42
  were definitely smaller businesses today in terms of what was
• 14:45
  being pitched. But I think it was a good TV,
• 14:48
  which is the main thing. And there was a good
• 14:50
  deal as well. So, yeah, we're going to repeat that
• 14:52
  five more times, which should be good. I'll also summarize
• 14:55
  a couple more lessons as the pitches go on. I'll
• 14:58
  make you an offer. So I'll offer you $ 250, 000 for
• 15:00
  the 40% that you're willing to give up because I
• 15:04
  think that you're still going to need those incentives. But
• 15:07
  I'll also need.
• 15:08
  Speaker 1: A $ 5.
• 15:09
  Speaker 3: Royalty every unit sold until my $ 250, 000 is paid back.
• 15:14
  Speaker 1: So what do you think?
• 15:16
  Speaker 3: We decided to go all stick.
• 15:17
  Speaker 1: Awesome.
• 15:19
  Speaker 3: Great choice.
• 15:28
  Speaker 1: Along all my shots equally.
• 15:30
  Speaker 3: Robert's like my dad though, he's like, I found that
• 15:32
  Jane is like our best friend. $ 450, 000. Alrighty, so they've
• 15:43
  seen us at work, but little do you know there's
• 15:45
  a huge crew that actually made this possible. We've got
• 15:48
  a camera over here, this is on the big jib,
• 15:51
  that goes all the way up here and gives us
• 15:52
  those tiny shots. We've got a camera up here, we've
• 15:56
  got a camera Over there, which gets the side profile.
• 16:00
  Then we also have a big stabilizer where they kind
• 16:03
  of walk around and they can trap people.
• 16:05
  Speaker 1: And each of these cameras is actually on one of
• 16:08
  our faces.
• 16:09
  Speaker 3: So they'll zoom in very closely and that's just so
• 16:12
  that they don't miss any reaction. So we've got a
• 16:15
  bunch of people and then there's actually a team of
• 16:17
  producers and technicians up there somewhere. They're the voice of God.
• 16:22
  Speaker 1: They tell us when we do something wrong or when
• 16:24
  we're not paying attention to it.
• 16:26
  Speaker 3: Another successful day. Got an investment today, which I'm very
• 16:29
  excited about. Obviously can't disclose anything yet, but I will
• 16:34
  as soon as we close the deal, which is good. Tomorrow,
• 16:36
  we'll probably skip tomorrow, but then I'll show you the
• 16:40
  final day, cover a bit of the wrap party, and then, yeah,
• 16:43
  I've got the weekend. I'm probably going to fly over
• 16:45
  to the Gold Coast to inspect a property that I'm
• 16:47
  looking at and potentially buy that before Bali. Trying to
• 16:50
  squeeze it in because I really, really love it.
• 16:53
  Speaker 1: And, yeah, see you tomorrow.
• 16:57
  Speaker 3: Final day. Final day. It's going to be sad to go,
• 17:00
  but at the same time, I'm so excited to do
• 17:02
  other work. What happened yesterday, we had a pretty interesting investment.
• 17:06
  They were real, like their product was incredible. Their branding
• 17:09
  was incredible. Their sales were great, great space, but their
• 17:12
  cap table was a mess. So what a cap table is,
• 17:15
  is basically the investors that are actually already in the business.
• 17:19
  And they just had so many different people that were
• 17:22
  invested in the company. And as an investor, it gets
• 17:24
  very difficult because you don't know certain shareholders' rights. There's
• 17:28
  a lot more legal paperwork. What happens if everyone disagrees?
• 17:32
  And it can sometimes also be an indication that they're
• 17:35
  just gonna burn cash because they've been raising lots of
• 17:37
  money and complicating things.
• 17:39
  Speaker 1: So that was a really interesting one.
• 17:40
  Speaker 3: So keep your cap table clean if you're coming onto
• 17:43
  Shark Tank.
• 17:44
  Speaker 2: Let's do it. Morning.
• 17:57
  Speaker 3: It was the best pitch ever.
• 17:58
  Speaker 2: I can't show the product.
• 18:00
  Speaker 1: She is incredible.
• 18:01
  Speaker 3: She's gone into all these retail stores in year two.
• 18:04
  Speaker 2: She's going to do print money.
• 18:05
  Speaker 3: I reckon she'll do $ 5 million in her third year.
• 18:08
  I reckon $ 60 million in the year after that. It's
• 18:11
  going to explode.
• 18:12
  Speaker 1: Very impressive. The last time.
• 18:19
  Speaker 2: Yes.
• 18:19
  Speaker 3: The last pitch. The last hairspray in the eyes. Yes.
• 18:29
  Speaker 2: Level of professionalism this year.
• 18:31
  Speaker 3: I just want to thank all of you for this
• 18:36
  amazing production.
• 18:37
  Speaker 2: I didn't mean.
• 18:37
  Speaker 3: To get up here and talk. But I had a
• 18:41
  lot of fun and I just want to thank everybody.
• 18:43
  I know all the charts from all of us.
• 18:46
  Speaker 2: I'm here for you.
• 18:59
  Speaker 3: And that is a wrap. Shark Tank Season 2. Make
• 19:02
  sure you tune in.
• 19:03
  Speaker 1: That's a wrap for the vlog as well.
• 19:04
  Speaker 3: See you next time.