On this latest episode, find out how a new consumer lifestyle brand has investors mushrooming with interest.
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00:00 >> Welcome to the elevator.
00:03 >> Tonight, three VIP titans.
00:07 >> You have some interesting choices here.
00:09 >> Decide the fate of our rising entrepreneurs.
00:13 >> Great pitch.
00:14 >> Determined to prove their greatness.
00:16 >> You've blown it.
00:17 >> In 60 seconds or less,
00:20 will they elevate to greatness?
00:23 >> Hey, you have 60 seconds, make them count.
00:25 >> Or fall from glory?
00:27 >> This is Entrepreneur Elevator Pitch,
00:31 presented by Amazon Business with support from State Farm.
00:37 Meet our board of investors.
00:41 Jonathan Hung, managing partner of the Entrepreneur Venture Fund.
00:47 Mark Randolph, co-founder and first CEO of Netflix.
00:52 Kim Perel, serial entrepreneur and tech CEO of 100.co.
00:58 First, in the elevator,
01:03 an entrepreneur whose innovative app
01:06 makes household cooking easy with the click of a button.
01:10 [MUSIC]
01:24 >> Hello, Charles.
01:25 Welcome to the elevator.
01:28 Your 60 seconds begins in 3, 2, 1.
01:34 [MUSIC]
01:37 >> Mom, what's for dinner?
01:39 >> It's an innocent sounding question,
01:41 but one that triggers a flood of
01:42 emotion for anyone that doesn't have a great plan.
01:45 Unfortunately, that great plan requires that a series of
01:49 decisions and chores be done before hearing what's for dinner.
01:53 My name is Chuck Whiteman, CEO of DinnerFi.
01:55 DinnerFi eliminates these decisions and
01:57 chores with an app that's fun for the whole family.
02:00 Our patent pending approach uses AI to create
02:03 the menu that you and your family would
02:05 create together if only you had the time.
02:07 We're using this everyday trigger to
02:11 cause people to answer the question, what's for dinner?
02:15 My background is, don't get stuck.
02:19 We're using this everyday question to
02:21 trigger daily use rather than angst.
02:24 In the process, we're creating valuable insight and
02:26 influence over an enormous flow of household spending.
02:29 My background is building consumer and B2B businesses,
02:33 and my co-founder is,
02:36 oh man, ran out of floors again.
02:40 I know. He actually had me at hello, what's for dinner?
02:43 It's all I hear from my kids all the time.
02:45 So I'm like, tell me the solution.
02:47 Well, the problem is, we don't know if it's a game,
02:49 we don't know if it's actually sending you dinner,
02:51 making dinner, what is DinnerFi?
02:53 Yeah. I mean, I was scared it was going to be yet one more of
02:56 those delivery companies we've already got.
02:59 I mean, do we need another one of those?
03:01 But maybe it wasn't.
03:02 Maybe it was something unique that we don't even know that we
03:05 needed until he came,
03:07 but we didn't even get to see what it was.
03:09 I mean, it's unfortunate, but you know what?
03:10 We have to do the right thing and vote now.
03:12 Let's see if optimism wins out this time.
03:15 Attention, Charles.
03:25 Your pitch has been denied.
03:34 Elevator was tough.
03:35 I had practiced this pitch a thousand times and it left me
03:41 there about three quarters of the way through.
03:43 And I just feel really disappointed in my performance.
03:47 Now that's tragic in a way.
03:50 You know, you always questions, promise, but we'll never know.
03:53 Hey, you have 60 seconds, make them count.
03:56 I agree. And practice.
03:57 It's the one thing that you can perfect, right?
04:00 That 60 seconds, you got to do it in the mirror over and over
04:03 and over and over.
04:07 No one likes to be told no after a pitch.
04:09 I've been told no many times.
04:10 And guess what? I'm still an entrepreneur.
04:12 Just because you hear no doesn't mean it's never going to be yes.
04:15 So make sure to take that motivation from the no and make
04:17 it a stepping stone into your success.
04:21 Next, two entrepreneurs hope to flow into the boardroom with
04:29 their dietary mushroom supplements.
04:31 Hello, Ali and Brian, welcome to the elevator.
04:51 Your 60 seconds begins in three, two, one.
04:57 We're the co-founders of Super Mush, and we believe that
05:00 mushrooms can actually save the world.
05:03 Over one eighth of the population suffers from some sort of
05:06 a mental health condition.
05:07 Mushrooms are one of the biggest levers that we can pull to
05:10 solve this problem.
05:11 So we created Super Mush because we want to bring the magic of
05:15 these legal superfoods to the masses.
05:17 We're a consumer lifestyle brand inspired by the 60s and 70s
05:21 that create superfood supplements, streetwear and media.
05:24 Since our launch in January of last year, we've sprayed
05:27 $1.5 million worth of mushroom mouse sprays into people's
05:30 mouths. We've created an online viral community of 300,000
05:33 people and have hosted events over 2,000 attendees.
05:37 We're now one of the fastest growing consumer brands on
05:39 TikTok. And today we're looking to raise $250,000 on a safe note.
05:44 We built an iconic investor community with founders from
05:47 Thrive Market, Vega, Zumba and so many more.
05:52 Today, we'd love to introduce you to our brand.
05:55 We're inspired by other...
05:56 Well, I guess they missed a little bit, but they really got
06:03 most of it in, I think.
06:03 Yeah, they did.
06:04 It was a good pitch, honestly.
06:06 And 1.5 million mushroom sprays is intriguing.
06:10 Big online community, personal events, hitting it on TikTok.
06:14 I mean, I heard a lot of things there that I like.
06:16 Also, these are two founders, very strong, it seems like.
06:19 They're really representing their brand.
06:21 What's interesting to me is what are they selling?
06:23 It seems a lifestyle brand, which I love, but what's
06:25 actually driving the sales?
06:27 That's what I'm curious to learn.
06:28 Well, there's one way to learn.
06:30 Shall we vote?
06:31 Let's do it.
06:32 Let's do it.
06:32 Attention, Allie and Brian, your pitch has been...
06:46 Approved.
06:49 Oh, I guess.
06:50 Okay, amazing.
06:51 Hello.
06:55 Allie and Brian, congratulations.
06:57 Welcome to the boardroom.
06:59 Great job on the pitch.
07:00 You got the thumbs up from all three of us, but that doesn't
07:04 mean you're home free yet.
07:05 We have a bunch of questions.
07:06 You covered some interesting stuff.
07:07 There's one piece that's missing from me.
07:10 You say it's on a note.
07:12 You didn't say what the cap is going to be.
07:14 It's 8.5 pre-money.
07:16 Oh, okay.
07:17 And how much are you raising?
07:18 We're raising three.
07:19 We've already raised one and a half.
07:20 What are you selling right now?
07:22 Yes, when we first launched, we wanted to pick retailers that
07:25 really focused on marketing.
07:26 So we launched with Erewhon to really validate the consumer in
07:28 LA.
07:29 Then we went to Central Market in Austin and primarily sell
07:33 DTC.
07:33 So 95% of our sales are online.
07:36 We've sold $1.5 million so far since we launched in January of
07:40 last year.
07:40 Our first product to market was our mushroom mouth sprays.
07:44 So energy, immunity and chill.
07:45 And then we just launched our flow and creativity mints.
07:49 A few months ago.
07:50 And then our newest product we're launching are gummies for
07:53 sex, energy and sleep.
07:54 We actually brought our new gummies for you to try if you
07:57 want to try.
07:58 I mean, I'd love to try them.
07:59 We have our sex gummies.
08:00 A sex gummy.
08:02 They're a cordyceps and reishi mushrooms.
08:05 And then it has horny goat weed and Damiana, which are great
08:08 for-
08:09 Wait, wait, wait.
08:09 Horny goat weed.
08:10 Yes.
08:11 Okay, let's do some shrooms.
08:14 All right, amazing.
08:16 So this is not the final packaging, but this is the final
08:20 formulation for our super mush sex gummies,
08:23 taste and texture as well.
08:25 What is this supposed to do?
08:29 So they're incredible for libido.
08:31 Obviously, you know, sex is a really great marketing name
08:35 for these super mush sex gummies.
08:36 It would look great on a billboard, but incredible
08:38 for libido, gender neutral.
08:40 It has a blend of adaptions.
08:41 Am I supposed to let it melt or chew?
08:42 What should I do?
08:43 Chew.
08:44 Chew.
08:45 Chew like normal gummies.
08:46 I'm getting delicate notes of sexy goat weed.
08:49 What's your number one seller right now?
08:55 The Hero.
08:56 Yeah, so this is our newest Hero.
08:58 This is our flow statement.
09:00 It uses mushrooms and people like it as a sugar-free,
09:03 healthy alternative to an Altoid.
09:06 Where our first product, they still taste delicious,
09:08 but this is purely supplements for the OGs.
09:10 How do you justify all the science and the efficacy?
09:13 You know, it's this new blossoming industry, right?
09:15 Like everyone's paying attention to mushrooms right now,
09:17 in part because of what's happening
09:19 in the psychedelic assisted therapy space,
09:20 in part because of the functional mushroom brands
09:23 that are exploding onto the market.
09:25 But mushrooms have been used for thousands of years.
09:27 They're actually one of the only medicines
09:29 that have stood the test of time.
09:30 And so there's incredible research showing
09:32 the adaptogenic benefits of functional mushrooms.
09:35 The active ingredient in mushrooms is called beta-glucans.
09:38 And in mycelium, it's usually only 5%.
09:41 In fruiting body, it can be 20, 30%.
09:44 So all of our products, they're fruiting body,
09:46 they're really effective.
09:48 For example, Forest Brazer Energy Spray
09:50 is equivalent to a cup of coffee without the jitters.
09:53 Oh, can I try it?
09:54 Yeah, definitely.
09:55 Part of me is going, "This is all BS."
09:59 And then part of me goes, "This is all really cool."
10:02 And the two sides of me are struggling with it.
10:05 Yeah, I'm in the same camp, which is,
10:07 we're gonna find out within how many seconds?
10:10 It's usually like five minutes.
10:11 For the onset, but yeah, spray it on your tongue.
10:13 You can spray it close to your mouth,
10:14 like four times, one dose.
10:16 I take it up to 20 times a day.
10:18 Something I think important to speak to
10:20 is that we really misunderstand energy
10:22 in the United States, especially.
10:24 We're taught that energy is how you're supposed to feel
10:27 when you're jacked up on a cup of coffee,
10:29 and then the brain fog and fatigue you feel from the crash.
10:32 And so what mushrooms do
10:32 is they bring your body to homeostasis.
10:34 They function like adaptogens in your system.
10:37 We're not trying to replace your triple espresso
10:41 in that feeling you get.
10:41 We're trying to put you in a calm, adaptogenic,
10:44 even-keeled flow so that you can operate most optimally.
10:47 I'd like to make you an offer.
10:53 I'm not gonna do the whole thing.
10:54 How about I do half?
10:57 I'll do $125,000,
11:02 but I'm not gonna do it in the full eight and a half.
11:05 I'll do it at eight million cap.
11:06 What do you say to that?
11:10 (upbeat music)
11:12 It's definitely an interesting offer.
11:13 Thank you very much.
11:14 We're open to hearing other offers as well,
11:17 if both of you are interested.
11:18 What, a gift horse in the mouth?
11:21 Well, hey, we're here too.
11:23 I think, I don't want you to take it down on.
11:29 I think you've earned your eight and a half million.
11:32 I'll let you keep your valuation,
11:34 but I'll do a little less.
11:35 I'll do 100,000, but you don't have to go down.
11:38 (dramatic music)
11:40 Before you decide,
11:42 I'm the guy for you.
11:46 I do know the D2C business.
11:48 I do know direct selling inside and out.
11:49 I've been doing that for 40 years.
11:51 I've guided my own companies through that.
11:53 I've guided lots of other companies through that.
11:56 And I can really help you with nailing your metrics,
11:59 bringing you best practices,
12:01 not to mention coaching you guys as you scale your company.
12:04 My turn.
12:07 (dramatic music)
12:08 I think it's great.
12:09 You're what, 80, 90% D2C,
12:11 but you're gonna have to get in retail stores.
12:14 You have to get people to see it, touch it, feel it,
12:16 just try it out.
12:17 That's more important.
12:18 We gotta get you into whole foods.
12:19 We have to get you into sprouts.
12:22 I've had products in both these companies.
12:24 That's the way to go through it.
12:26 I mean, guys, I don't know,
12:32 but my heart's starting to race.
12:33 I don't drink any caffeine.
12:34 So this is like I've gone from zero to hero.
12:38 And now I'm really into the mushrooms.
12:40 So I understand both retail and D2C,
12:44 and I love what you guys are doing.
12:46 And I can feel it.
12:47 I'm an Air One with some of my brands.
12:50 I understand how hard it is to get in retail,
12:52 but I also know,
12:54 and I've got 20 years in marketing expertise.
12:57 So I feel like you guys are the brand.
13:00 You're so passionate about it.
13:01 Now I'm so passionate about it.
13:02 So I feel like how am I gonna be able to help you guys
13:05 get to where you wanna go?
13:07 I'm in for 150K at the 8 million
13:11 that Mark had previously come in at.
13:13 Wow.
13:16 Okay, we have 100,000 from Jonathan
13:21 at the existing 8.5 valuation.
13:24 You have $125,000 from me
13:28 at $8 million cap valuation.
13:31 And you have $150,000 from Kim
13:34 at the $8 million valuation.
13:36 Wow.
13:37 You have some interesting choices here.
13:39 Brian, do you have any thoughts?
13:45 I do think we need to get into retail eventually.
13:47 However, right now we're growing so fast on D2C
13:50 that we really wanna bring that to the moon.
13:52 And right now with the economy,
13:54 a lot of companies are actually pulling out of online ads.
13:57 So I feel like it's our time to strike.
13:58 I also think it's really important
14:00 to have someone who understands the brand
14:02 and has similar investments.
14:04 And then the third thing I'm thinking is
14:06 on the media side, in addition to D2C,
14:09 we have an amazing podcast
14:10 and we're making a TV show next year as well.
14:13 And when it comes to distribution,
14:14 that's not our expertise.
14:15 That's something that you could really help out with.
14:17 So you're saying?
14:21 So?
14:22 Man, I think they're all really good points.
14:29 You're giving me the final say?
14:30 You are the CEO.
14:31 Oh wow.
14:32 Wow.
14:33 Oh, it's so cool.
14:35 Mark, we'd love to partner with you.
14:48 Shrooms, baby.
14:49 Shrooms.
14:50 This is awesome.
14:51 I am so excited.
14:53 Thanks for your sound judgment and good points.
14:55 And it comes with a bandana as well.
14:58 We have them for you guys as well.
14:59 Oh wow, thank you.
15:00 Thanks, thank you so much.
15:02 Nice styling, yeah.
15:03 I love it.
15:04 But actually, before you guys split,
15:05 hold on one second, okay?
15:06 I had an idea.
15:07 Come here.
15:08 Go for it.
15:15 So, on behalf of Amazon Business,
15:19 we would like to award you $10,000 in cash
15:22 to help grow and invest in your business.
15:26 Thank you guys so much.
15:27 It was so nice to meet you.
15:28 It was so great to meet you guys.
15:30 Good luck.
15:31 Thank you.
15:32 Thank you so much.
15:32 Bye guys.
15:33 Oh my God, amazing.
15:34 In the boardroom,
15:37 it was really exciting getting the three offers
15:39 'cause all the judges added so much value.
15:42 In the end, we're super excited to go with Mark.
15:44 To get the 10,000 from Amazon Business was amazing
15:47 and we're so grateful for that.
15:49 Such an unexpected gift.
15:51 Congratulations.
15:52 I know.
15:53 They are awesome.
15:54 The way they thought it through, it was really smart.
15:55 And this is what they need now.
15:57 When you're ready, you call me.
15:58 (laughing)
16:00 Well, let's see if we can get another great deal.
16:03 Entrepreneur Elevator Pitch is presented by Amazon Business
16:10 for every organization at every stage of growth.
16:13 Last in the elevator,
16:20 an entrepreneur hopes to nourish plant life
16:23 with a fortifying carbon-based fertilizer.
16:26 (dramatic music)
16:29 Hello, Nick.
16:42 Welcome to the elevator.
16:45 Your 60 seconds begins in three, two, one.
16:50 Hi, I'm Nick.
16:53 I'm the CEO and co-founder of Rooted Leaf Agrotech.
16:55 We're a manufacturing company
16:56 and pioneers in the field of carbon-based fertilizers.
16:59 I'm here today seeking $1 million in a safe note.
17:02 We've been in business since 2019
17:04 and have generated approximately $1 million in revenue.
17:06 We sell to retailers and direct to end user
17:09 with active and repeat customers in 42 states,
17:11 plus we're expanding into Canada and Mexico.
17:14 But it's not just the nine fertilizers we sell
17:16 that are revolutionary, it's the way we make them.
17:18 And part of the capital we raise
17:20 will allow us to continue developing
17:21 and implementing our proprietary manufacturing platform.
17:24 This platform is a semi-closed loop,
17:26 zero waste, carbon negative way
17:28 of creating the full spectrum
17:29 of any plant's nutritional needs,
17:31 from house plants to food crops.
17:32 It runs on rapidly renewable inputs
17:34 such as plants and microbes,
17:36 combined with natural minerals
17:37 and it produces next generation fertilizers.
17:39 Our mission is to prove that sustainable agriculture
17:42 is possible to achieve on a global scale.
17:44 And I hope you'll join us as we grow
17:46 to become one of the world's leading manufacturers
17:48 of carbon-based fertilizers.
17:50 Are you ready to grow with Rooted Leaf?
17:53 Oh, great pitch.
17:55 There you go.
17:56 There's someone who actually went from start to finish,
17:59 no flubs, all the information.
18:01 It was impressive.
18:02 The only thing you left off was on the valuation.
18:04 What was the cap?
18:05 Only a million in sales since 2019.
18:08 That's not the number I was expecting to hear.
18:10 But on the other side, look,
18:11 agriculture tech, climate tech is in right now.
18:14 This isn't NFTs or Web3,
18:16 this is something the planet absolutely needs,
18:17 sustainability.
18:18 Yeah, and maybe he bootstrapped it,
18:20 he's just getting going.
18:22 But let's see, you guys wanna vote?
18:24 That's the only way we're gonna know
18:25 whether he's coming up or down.
18:27 Let's do it.
18:28 Attention, Nick.
18:37 Your pitch has been
18:41 approved.
18:44 Yes.
18:45 Welcome to the boardroom, Nick.
18:49 Thank you, what an honor to be here.
18:51 I mean, personally, I thought you did a great pitch.
18:54 And Mark also voted you up,
18:56 but Jonathan left a little bit.
18:58 My issue wasn't with your pitch,
18:59 I think you did a fabulous pitch in 60 seconds.
19:02 My issues are with your numbers.
19:04 How would you only do a million dollars since 2019
19:07 if this is such a revolutionary product?
19:09 Well, we started off kind of demonstrating
19:10 that there was a product market fit first
19:12 before we got really heavy into the research
19:14 and development.
19:15 And we demonstrated the need for farmers
19:17 to actually be able to utilize these products.
19:20 And a good way of thinking about this
19:21 is that the knowledge of how fertilizers perform on crops
19:25 is very old and it's very outdated.
19:27 If you think about how fast technology advances,
19:29 for example, things come out so rapidly
19:32 you can barely keep up with it,
19:33 yet we're still using technology,
19:35 fertilizer technology from approximately
19:36 50 or 60 years ago.
19:38 So there has not been much innovation.
19:40 So what's new?
19:41 The new part for us is the carbon-based fertilizer aspect.
19:45 What we've come to understand over the past 50 to 60 years
19:48 is not so much how the fertilizers are made,
19:50 but rather what are the plants made out of.
19:52 And if you take a look at carbon,
19:53 it is the number one macronutrient for all crops.
19:56 So I got a C-minus in organic chemistry.
19:59 So carbon is a different ingredient
20:01 than what most fertilizers are made of or from?
20:04 Correct.
20:05 In fact, most fertilizers that are manufactured today
20:08 don't have any carbon inside of them at all.
20:10 Why are you perfectly positioned to build this company?
20:13 Do you have an experience in this or how'd you get here?
20:16 I have a background in chemistry,
20:18 industrial chemistry and fermentation chemistry.
20:21 I've started a lot of companies
20:22 that haven't been successful in the past,
20:24 but I seem to fail a lot and I learn even more.
20:28 Can you talk about the failures you've had in the past?
20:30 Largely, and this is me being a little bit vulnerable here,
20:34 I would say that it's kind of a lack of business acumen
20:37 in the business development.
20:38 And the thing I've had to realize
20:40 is that I'm not the person that I'm trying to pitch to,
20:42 which is why I'm here today.
20:45 A million dollars in sales, how many bottles did you sell?
20:48 Yeah, so because it's difficult to answer
20:51 because we sell to big retailers, we sell to big farms.
20:53 What percentage is big retailers
20:55 versus big farms versus consumers?
20:57 When we first started off,
20:58 it was a focus on commercial producers.
21:00 And so we were dealing almost exclusively
21:02 with very large scale producers.
21:04 And as we have continued to grow,
21:06 we've actually shifted out more and more
21:07 into selling to end users
21:09 that may just have a couple of plants at home.
21:11 And we've also expanded to new retailers,
21:13 new distributors, and also internationally.
21:16 Why internationally?
21:17 I mean, it seems like you have big enough market
21:19 right here, right now.
21:21 Why even go through the trouble of looking outside of the US?
21:24 The world needs better solutions, honestly.
21:26 Back to the raise.
21:29 We're raising $1 million.
21:31 What's the cap?
21:32 The cap is 25 million.
21:35 This is all for you, Mark, please.
21:39 He's choking on a strawberry over here.
21:41 (Mark grunts)
21:43 What they're saying is that's a very high valuation
21:46 based on the current traction you have.
21:48 And for that valuation in the current market,
21:51 it'll be very hard to get a million dollars
21:53 from these investors.
21:55 Well said, Kim.
21:56 I think you know exactly what you're doing
21:59 from a scientist's side.
22:00 I think you have amazing IP.
22:02 But my biggest problem from a startup point of view
22:04 is that you need someone to be ahead of sales.
22:07 I don't think you're the person.
22:08 So for that reason, I have to pass.
22:12 I think it's scattered.
22:16 That's my first comment,
22:18 is that you're basically spreading your efforts
22:21 over multiple products.
22:22 You're spreading your efforts over multiple geographies.
22:25 You're a great pitchman.
22:28 I mean, you're articulate, you know your stuff.
22:30 But you, in a way, have given the answer.
22:32 You're learning.
22:34 I think it's time for you to bring someone in as a partner
22:36 who can balance out your scientific expertise
22:39 with the business side expertise you need.
22:42 Because of that, I pass.
22:44 Thank you.
22:45 You can tell that you know what you're talking about
22:48 and you've developed something really unique and special.
22:51 But based on your past experiences,
22:54 I also agree that having someone to compliment
22:56 like your intelligence will be huge for you
22:59 as you continue to grow the company.
23:01 Investors like us would love to come along the journey,
23:05 but at that valuation, it's a big risk.
23:09 So unfortunately, I too must pass.
23:11 Thank you for your interest.
23:12 I appreciate it very much.
23:14 Yeah, good luck.
23:15 Thank you.
23:15 I appreciate it.
23:16 I'm feeling pretty good.
23:19 Even though that didn't go the way that I wanted it to,
23:21 I feel like I learned quite a bit
23:22 and I'm very grateful for the opportunity.
23:24 I think I could have prepared it just a little bit better
23:26 as far as the business side of things,
23:27 but overall, I feel like the pitch was really strong
23:29 and we have a very strong business.
23:31 I was hoping that was gonna be a great deal,
23:33 but at the 25 million valuation
23:36 and the lack of traction in market already,
23:39 it just isn't a deal that we could get over the line.
23:42 I was definitely not ready for a $25 million cap.
23:45 I mean, I just feel they're scattered.
23:47 There is too much going on here.
23:49 I wanted to see some focus.
23:50 I was skeptical from the beginning.
23:52 That's why I voted down
23:53 and then he couldn't convince me more.
23:55 Honestly, it made me wanna hit the button twice.
24:01 - While two entrepreneurs were able
24:03 to secure a high-flying deal,
24:05 two were sent back down with nothing to show.
24:09 Whether it's a unique invention
24:12 or a new way of living life,
24:14 anyone could be 60 seconds away from rising to greatness
24:19 or fall from glory.
24:22 Tune in next week as Entrepreneur Elevator Pitch continues.
24:26 - You got really two great offers.
24:28 - Just take the deal.
24:29 - Better not do that once I put money in here.
24:31 (both laughing)
24:32 - And to apply for the next season,
24:34 go to entrepreneur.com/elevatorpitch.
24:38 Investors personally styled
24:40 by celebrity stylist, Kim Bolofay.
24:42 (logo whooshing)
24:45 (gentle music)