Learn the words that no investor wants to hear on the latest episode of "Entrepreneur Elevator Pitch."
This season on Entrepreneur Elevator Pitch, we've witnessed a steady stream of contestants who dream of making it to the top floor. All they need to do? Nail their 60-second pitch. We've seen countless entrepreneurs earn the chance to enter the boardroom with the chance to seal a life-changing deal or win cash prizes from Amazon to get their business to the next level. Some walk out victorious; some must pick themselves up to fight another day.
In this episode, a new group shows up to try their luck in the elevator. Will they succeed in reaching new heights at the press of a button? Or will they freeze up at the moment of truth? Watch and see what happens on an all-new episode!
This season on Entrepreneur Elevator Pitch, we've witnessed a steady stream of contestants who dream of making it to the top floor. All they need to do? Nail their 60-second pitch. We've seen countless entrepreneurs earn the chance to enter the boardroom with the chance to seal a life-changing deal or win cash prizes from Amazon to get their business to the next level. Some walk out victorious; some must pick themselves up to fight another day.
In this episode, a new group shows up to try their luck in the elevator. Will they succeed in reaching new heights at the press of a button? Or will they freeze up at the moment of truth? Watch and see what happens on an all-new episode!
Category
🗞
NewsTranscript
00:00 (dramatic music)
00:01 - Going up.
00:02 - This season, we've witnessed endless possibilities
00:07 to make it to the top floor.
00:09 - All you need is to nail the 60 seconds
00:11 to get through those doors.
00:13 - Countless entrepreneurs marching into the boardroom.
00:16 - I'm ready to make money, so let's get this thing going.
00:19 - Yes!
00:20 (screaming)
00:21 - Sealing life-changing deals with our investors.
00:24 - Absolutely, let's do it.
00:27 - All right.
00:28 - Oh!
00:30 (laughing)
00:31 - Receiving Amazon business cash prizes.
00:35 - Thank you guys so much.
00:36 Oh my God.
00:37 - Thank you so much.
00:38 I really appreciate it.
00:39 - Even returning once more for a chance at redemption.
00:43 - I love a good redemption story.
00:45 - Yes!
00:48 - Today, a new set of entrepreneurs step into the elevator.
00:53 - We're here 'cause we want to invest.
00:54 - Hoping to reach new heights at the press of a button.
00:59 - Again, it's called elevator pitch for a reason.
01:01 - Was that pitch good enough?
01:02 - This is Entrepreneur Elevator Pitch,
01:08 presented by Amazon Business with support from State Farm.
01:13 Meet our board of investors, Kim Perel,
01:20 serial entrepreneur and tech CEO of 100.co.
01:25 Mark Randall, co-founder and first CEO of Netflix.
01:30 Logan Stout, keynote speaker
01:33 and best-selling author of "Grit Factor."
01:35 First to step into the elevator,
01:41 an entrepreneur hopes to build financial portfolios for all
01:45 using a groundbreaking robo-advisor.
01:48 - Hi, my name's Kyle.
01:50 I'm the founder of Brave Wealth.
01:52 I was a financial advisor for over six years
01:55 and I was always discouraged
01:56 by the lack of investments in private equity.
01:59 To get an investment at elevator pitch would mean a lot.
02:02 I've got a daughter at home that I think about all the time.
02:04 And so the stakes are pretty high
02:06 to get an investment this year
02:08 and then continue growing the product and the team.
02:10 - Going up.
02:24 Hello, Kyle.
02:25 Welcome to the elevator.
02:28 Your pitch begins in three, two, one.
02:33 - Hi, my name's Kyle.
02:35 I'm a former financial advisor.
02:38 I've sold two companies
02:39 and I've raised over $25 million in venture funding.
02:43 Before Brave, only accredited investors would have access
02:47 to invest in private equity,
02:49 which is outperformed public stocks
02:51 by an average of 3.5% per year since 2001.
02:55 The Brave platform is the only way
02:58 that everyday investors will have access to exposure
03:02 to the $10 trillion alternative assets market,
03:07 which includes private equity,
03:09 venture capital, and real estate.
03:12 We are pre-revenue, but we've made meaningful traction
03:16 in development of our product for advisors and consumers,
03:19 both web and mobile.
03:20 We've signed LOIs with multiple private equity feeder funds
03:25 and engaged in private equity funds.
03:30 We are raising $100,000 at a-
03:33 - Hi. - Oh.
03:36 - So close. - So close.
03:39 - And I was interested in that,
03:41 but then it was like,
03:42 ah, it's like a fumble at the five yard line.
03:44 - But guys, everyone makes mistakes
03:46 and I think he almost had it.
03:48 And up till then, I was intrigued.
03:51 I thought it was an interesting experience
03:53 having been a founder twice and sold his company
03:56 and raised 25 million.
03:57 That's just not easy.
03:58 - He wasn't terrible.
03:59 He just missed out on important information.
04:01 He knows he has 60 uninterrupted seconds to get it out
04:06 and to not have that practiced and perfect
04:09 and nailed, inexcusable.
04:12 - Well, it sounds to me like we're kind of on the fence.
04:15 Maybe yes, maybe no.
04:16 So are we ready to take it to a vote?
04:18 - Let's do it. - Let's do it.
04:19 (dramatic music)
04:22 - Attention, Kyle.
04:29 Your pitch has been denied.
04:34 - I'm disappointed.
04:39 I did my pitch a little slow.
04:42 I didn't get a chance to get into the boardroom.
04:44 I feel like I have a really great product.
04:45 I am a serial entrepreneur.
04:47 I've sold multiple companies.
04:48 I'm disappointed I wasn't able to pitch them today,
04:51 but I'm excited to continue building my business
04:53 and hopefully we finish our funding round somewhere else.
04:57 - We're here 'cause we want to invest
04:58 in a good business, an entrepreneur.
05:01 And today just wasn't their day.
05:04 It wasn't our day, but I have no doubt
05:06 that if they stick with it, they'll be successful.
05:08 - Well, I have doubts, but I'm genuinely pained
05:12 we didn't get a chance to see him.
05:14 It was the wrong pitch.
05:15 So we did the right thing in voting him down,
05:17 but it always hurts not to give someone a shot.
05:20 I don't disagree.
05:21 - Well, you got 60 seconds.
05:23 All you need is to nail the 60 seconds
05:25 to get through those doors.
05:27 He didn't nail it and we have to let it go.
05:29 Are you guys ready to see the next pitch?
05:31 - Bring it on. - Let's do it.
05:32 - And now for our entrepreneur elevator pitch
05:38 trivia question.
05:40 How many new small businesses are launched
05:43 every year in America?
05:45 A, 200,000, B, 1 million, or C, 5 million?
05:50 The answer is C, 5 million.
05:55 Next in the elevator, an entrepreneur introduces
06:06 sweet and savory condiments with no sugar.
06:11 (dramatic music)
06:14 Going up.
06:19 Hello, Abraham.
06:25 Welcome to the elevator.
06:28 Your pitch begins in three, two, one.
06:33 - True Made Foods is saving the American diet
06:36 by starting with the great American barbecue.
06:38 Did you know that ketchup and barbecue sauce
06:40 have more sugar per ounce in ice cream?
06:41 Probably two of the worst products
06:43 in the average American refrigerator.
06:45 True Made Foods products, we make True Made Foods
06:48 ketchup and barbecue sauce are no added sugar
06:51 with 100% fruits and veggies.
06:53 100% naturally sweetened from fruits and veggies.
06:55 I started True Made Foods because I was tired
06:58 of arguing with my kids at the dinner table over ketchup.
07:00 So I made a better one.
07:01 I then started partnered with the legendary pit master,
07:05 Ed Mitchell, and together we've made an entire lineup
07:08 of no sugar added condiments and barbecue sauces.
07:11 Our products are now in over 5,000 stores nationwide
07:15 and we're served in two major league ballparks.
07:18 We are now looking to raise $1.5 million
07:22 at a $15 million valuation to keep up this historic growth.
07:26 We all wanna make America a better place.
07:29 I just think we need to start with the ketchup.
07:31 - When someone starts off the pitch
07:37 with the metrics they have, I listen pretty carefully.
07:42 And what did he say?
07:43 5,000 stores?
07:45 - Yeah, it's impressive.
07:46 - My question is this, yes, sugar is awful
07:49 and people have no idea how much sugar
07:51 they consume every day.
07:53 I'm curious about the other ingredients though.
07:55 I get the healthy ketchup and all that, that makes sense,
07:58 but it's more than just sugar for it to be healthy.
08:00 - I love a story.
08:01 So to be honest, for me, it's all about a story
08:03 and he explained really clearly that the story
08:06 was from his own need and his own children.
08:09 And I get it 'cause I have four children
08:10 and they like all the sugary stuff too.
08:12 So there is a need.
08:14 - Well, you know, I was in the supermarket yesterday
08:16 and I swear that condiment aisle,
08:19 it must be 200 feet of every single possible
08:24 kind of ketchup and salsa.
08:26 What an amazingly crowded market.
08:27 I don't even use ketchup, but my kids do, okay?
08:30 So I have an interest because a lot of times as parents,
08:33 we want what's best for our kids
08:34 and we'll violate ourselves sometimes
08:36 and make bad decisions, but I'm interested,
08:38 but I'm kind of on the fence about this.
08:40 Well, why don't we all find out what we think?
08:43 - Let's do it. - Ready to vote?
08:44 - Ready.
08:45 (dramatic music)
08:48 - Attention, Abraham.
08:53 Your pitch has been approved.
08:58 - Woo hoo!
09:02 (claps)
09:03 Let's go!
09:04 (bell dings)
09:05 Abraham, welcome to the boardroom.
09:07 Congratulations.
09:09 - Thank you so much.
09:09 Thanks for having me here.
09:11 - So the thing that kind of raised my eyebrows
09:13 was 5,000 stores, which is pretty good.
09:16 But tell us about sales.
09:17 Tell us about revenue.
09:19 - So we're on track to close about 4 million
09:21 in top line sales this year.
09:23 About 80% of that is from retail.
09:24 Most of our historical sales in this year
09:27 are from grocery stores.
09:29 That's our main primary driver of sales right now.
09:31 We do about 20% in food service right now
09:34 and we're looking to grow that.
09:35 We see food service really as a marketing channel
09:37 'cause we're a front of the house product.
09:39 It gets people trying our product.
09:40 It gets people familiar with the brand, right?
09:42 We do only about 1 or 2% direct to consumer,
09:45 Amazon, things like that right now.
09:47 We're looking to grow that as well,
09:48 but obviously we make more money
09:50 and we have better margins in the retail channel.
09:53 - Congratulations on a great company.
09:54 I think it's awesome what you're doing
09:56 to try to make America better.
09:58 You say you're using fruits and vegetables.
10:00 I'd like you to elaborate on that
10:01 and then I have a question to piggyback on that.
10:04 - We're using things like apple, carrots,
10:05 butternut squash, pureed, not juices,
10:08 full pureed fruits and vegetables
10:10 to add that natural sweetness.
10:11 This is how people used to cook.
10:13 - Tell me what the source is of the fruits and vegetables
10:16 because that's important to me.
10:17 - So the tomatoes all come from California,
10:19 like majority of the tomatoes in America,
10:21 tomato paste in America, things like that.
10:23 The apple we get from one supplier
10:26 in the Pacific Northwest in Oregon.
10:28 The carrots and butternut squash we get
10:29 from a farmer cooperative in North Carolina.
10:31 - Okay, what kind of third party testing are you doing?
10:33 So like I know for us at ID Life,
10:34 we get the raw materials sent in.
10:36 We do three different levels of third party quality control
10:38 'cause I'm not gonna trust a raw material manufacturer,
10:40 no disrespect to them, but a lot of things could happen.
10:43 I wanna make sure the product is exactly what we say it is.
10:45 - All our suppliers and our co-packers,
10:47 our co-mans are SQF certified, the highest level,
10:51 audited every year.
10:52 And then we have a bunch of certifications
10:54 like Whole30, Paleo, Keto certified, non-GMO,
10:58 all of our products are non-GMO.
10:58 - Okay, we can get to, I agree, like okay.
11:01 You guys can go down the rabbit hole
11:03 of how we're actually getting the ingredients.
11:05 I'm gonna go with trust that I believe
11:07 you're sourcing them from a very reliable place.
11:11 Besides that, four million in sales.
11:14 Is that last year or this year?
11:16 - This year we're tracking towards four million.
11:17 Last year we did 3.5.
11:19 - You have a 1.5 raise
11:20 and how much has been committed so far?
11:21 Or is any-- - This is a new raise,
11:23 we're just launching it.
11:24 - Okay, and how much have you raised already?
11:26 - Last year we raised $2 million.
11:29 - What was the valuation?
11:30 - Valuation was a $10 million pre-money.
11:32 - Okay. - Are you getting
11:34 the same thing I'm getting?
11:35 This is not coming racing out of the barn here.
11:38 I mean, this is reasonably slow growth.
11:41 - It's difficult.
11:42 We've only been able to raise a marginal amount of money
11:45 just to stay alive.
11:46 Like we are at an inflection point right now
11:48 where we need to start raising more money
11:50 and put it towards marketing and really growth.
11:53 Plus we were suffering from post-pandemic.
11:54 Most grocery stores didn't do new shelf placements.
11:57 They didn't even do category reviews.
11:59 It's very hard.
12:00 It's been very hard post-pandemic
12:01 to get new products on the shelf.
12:02 So we haven't been able to grow distribution
12:04 much in the last two years.
12:06 - What's the money gonna be used for?
12:09 - It's gonna be used to fund growth capital
12:11 'cause like every time we launch a new product on a shelf,
12:13 you know, you're paying slotting fees and free fills.
12:16 And we also wanna start pumping it into marketing.
12:19 We did a great marketing, digital marketing test
12:21 this past summer for 12 weeks.
12:23 We only spent 100K,
12:24 but we had 175% ROAS on it.
12:27 And we have the data where we could see the sales lift
12:29 by store with the digital marketing.
12:31 We just did 280 stores.
12:32 We wanna be able to do that
12:33 with a lot more than 280 stores.
12:35 - And how does it taste?
12:36 I mean, more importantly, right?
12:37 - That's the most important question.
12:38 - Honestly, it is the most important
12:39 because people only gonna repeat buy if they like the taste.
12:42 - One of the things I mentioned earlier
12:43 was that there is a thousand other products like this.
12:46 And so you've got to cut through somehow.
12:48 - We are the only product out there
12:50 that's using real vegetables and fruits
12:52 as a natural sweetener in any of these channels.
12:55 - Ava, I'm gonna, I'll let them taste it.
12:57 - Oh, he doesn't eat ketchup.
12:58 - I don't eat ketchup.
12:59 So I don't mean to be disrespectful at all.
13:01 - Wow, it's very good.
13:05 - Go ahead and give me some ketchup.
13:16 - Oh, look at you.
13:16 - I'm gonna do this.
13:17 I don't even eat ketchup,
13:18 but I'd be an absolute hypocrite
13:20 if I didn't at least try it.
13:21 If I wanna actually invest in this.
13:22 - First of all, I gotta point out,
13:23 this is surprisingly good for no sugar on it.
13:27 - Real food tastes better.
13:28 - As opposed to Logan, I am a ketchup aficionado.
13:32 For example, I consider a hamburger
13:34 basically a ketchup delivery system.
13:36 - Much like my kids.
13:37 - The formula you sold last year,
13:40 how much was sold in ketchup versus the barbecue sauce?
13:42 - So the ketchup is the oldest
13:43 and the most established product.
13:45 And that is the majority of our sales.
13:47 In retail, it's about 59% of our total sales.
13:49 So we think we have a lot of growth with the barbecues.
13:51 We've only recently launched the barbecues
13:53 and the mustards in the last couple of years.
13:55 There's very little competition in the barbecue sauce
13:57 for in the barbecue category for a better for you product,
14:01 and especially a better for you product
14:03 with a real Hall of Fame pit master on it, Ed Mitchell.
14:05 We just launched these brand new rubs
14:08 and the rubs are,
14:09 we think these are gonna be an absolute game changer.
14:12 There's nobody else who's doing it.
14:13 - May I see one of those please?
14:15 - Yeah, please.
14:15 Nobody else is doing rubs like this.
14:19 And again, they are historical recipes
14:23 from a Hall of Fame pit master from Wilson, North Carolina.
14:26 - So you've partnered with a legendary grill master
14:29 who I don't know of.
14:30 - I've never heard of him either, to be honest with you.
14:33 - So he's not fully legendary.
14:35 - I love what you've created and I love your passion.
14:40 However, I am an investor
14:42 and I invest in high growth companies.
14:45 And looking at your growth from 3.5 million to 4 million
14:47 at a $15 million valuation,
14:49 just doesn't work for me.
14:52 I'm gonna have to pass.
14:55 - I've gotta say that on one hand,
14:59 I am really impressed by how this tastes.
15:01 I mean, seriously, for ketchup aficionado,
15:04 I'm ready to switch.
15:05 I'm ready to short my Heinz stock.
15:08 So I think this is really impressive.
15:10 But on the other hand,
15:11 packaged goods to begin with scares me to death,
15:16 especially a category as competitive as this,
15:19 especially with the fact that this isn't leaping
15:21 off the shelves in terms of growing.
15:23 I mean, for any brand, you've gotta be at the beginning,
15:26 multiplying much more than just a small percentage each year.
15:29 I'd love to hear from you in a couple of years,
15:33 but I think unfortunately for today, I'm gonna pass.
15:37 - I have no doubt you're gonna succeed
15:40 because one's purpose in life is a combination
15:43 of their passions and their talents.
15:45 And you're clearly passionate about this
15:46 and you're obviously extremely talented as is your team.
15:49 For me, I look for individuals that are laser focused
15:52 on dominating one main thing
15:55 before they scatter shoot into other things.
15:57 And so before I put my money into something,
16:01 A, I have to know they're laser focused.
16:03 You lost me with all the skews.
16:05 B, I don't even eat ketchup.
16:08 And for those reasons, I pass.
16:10 - Abraham, I'm sorry.
16:14 All three of us, unfortunately,
16:16 aren't gonna write you a check today.
16:18 So I'm afraid we're gonna have to send you home empty handed.
16:21 - Well, consumers, you're switching, right?
16:22 I'm switching.
16:23 - I'm switching too, actually.
16:24 - I'm definitely switching.
16:25 - I'm buying it for my kids.
16:26 - Thank you.
16:26 I mean, that's-- - Three new customers.
16:28 - Brand awareness.
16:28 - Many thanks. - Thank you.
16:29 - Good luck, Abraham. - I appreciate it.
16:30 - Good luck.
16:31 - The investor has definitely missed out
16:34 on an awesome opportunity,
16:35 but I'm excited that I got out of the elevator
16:38 and that we did well and that everybody loved the product.
16:40 That's really the most important thing
16:41 at the end of the day.
16:42 We got a great product.
16:43 It just needs to get out there.
16:44 We might have struck out with the investors this time,
16:46 but we're gonna hit a home run with these products.
16:48 These products are a home run, hands down.
16:51 - That's too bad, isn't it?
16:53 - I mean, honestly, he has all of the ingredients,
16:57 kind of like this ketchup, to be great.
16:59 It's just the velocity and the sales just don't show it.
17:02 - I was in where he lost me was when he said,
17:04 and then we have this next thing coming out.
17:06 I'm like, you're not exploding with what you already have.
17:08 And now you're gonna go spend all this money
17:10 on inventory on another thing?
17:12 I just think his focus was off.
17:14 And for me, I'm not gonna invest
17:15 if somebody doesn't have a laser-beam focus
17:17 on what they're looking to do.
17:18 - I said the same thing.
17:19 I mean, I was looking at the size of that display
17:21 on that table and thinking with the growth rates,
17:23 he's trying to make up for it
17:25 by throwing more skews at the problem.
17:27 - It was a great opportunity,
17:28 but we just couldn't get it over the line.
17:30 - So how about we move on to the next pitch?
17:32 Are you ready?
17:33 - Let's do it.
17:34 - I'm ready to see.
17:34 - Entrepreneur Elevator Pitch
17:39 is presented by Amazon Business
17:42 for every organization at every stage of growth.
17:45 Last in the elevator,
17:52 an entrepreneur introduces a plant-based formula
17:56 to improve men's health.
17:57 - Going up.
18:07 (dramatic music)
18:10 - Hello, Steve.
18:12 Welcome to the elevator.
18:15 Your pitch begins in three, two, one.
18:20 - Hi, I'm here to talk about a topic
18:24 that many men are embarrassed to talk about
18:26 with their physicians, urinary health.
18:28 My name is Steve Nemiroff,
18:29 and I am the founder and CEO of Dr. Steve's.
18:33 We've created a novel formulation for prostate health
18:36 that is different than anything else on the market.
18:38 Flosam is a unique,
18:41 has unique ingredients that are natural and evidence-based.
18:46 We've studied Flosam over the last year
18:48 with urologists across the country
18:50 and have had phenomenal results.
18:52 And now we're here to share them with the world.
18:55 We're hoping that one of these investors
18:57 will help us with some cashflow
18:59 so we could help continuing to help these men
19:02 with their urine flow.
19:04 My partners and I have created other products as well
19:07 that are in our pipeline and we're ready to launch.
19:10 We're looking for $150,000 for a 15% stake in our company
19:14 to grow the Dr. Steve's brand of products.
19:17 Thank you.
19:18 - Wow, that was interesting.
19:24 When someone in their pitch
19:27 says I'm just looking for cashflow,
19:29 that is ridiculous.
19:30 I don't even understand what you're saying
19:32 and I'm not being rude,
19:33 but that, I just need money for something.
19:35 - It sounded to me like he wants us
19:37 to fund his salary every month
19:39 is what it basically sounded like.
19:40 And I don't know if you meant it that way,
19:41 but we're not investing for cashflow.
19:43 - Well, it wasn't clear where they are in the process.
19:46 I mean, is this already for sale?
19:48 If so, how many have they sold?
19:50 How far away are they from selling it?
19:52 So there's a lot of questions here
19:54 that are kind of unanswered for me.
19:56 - This is called elevator pitch.
19:58 And the question I ask you guys is,
19:59 was that pitch good enough to let him in the boardroom?
20:03 - Well, that is the big question.
20:04 And you're right.
20:05 You really do have to make it a good pitch.
20:08 So will the size of this market, I guess,
20:10 outweigh my hesitancies?
20:13 I'm not sure.
20:13 - Let's put it to a vote.
20:15 You guys ready?
20:16 - Ready.
20:17 - Attention, Steve.
20:26 Your pitch has been
20:30 denied.
20:33 - Well, the 60 seconds was a lot of pressure
20:38 and I didn't get everything out.
20:39 I would have loved to have more time
20:40 to explain to the investors where we're at
20:43 and where we'd like to go with FlowSome
20:44 and the rest of our products.
20:46 - This is called elevator pitch.
20:48 You have 60 seconds to convince us
20:50 that you truly have what it takes,
20:52 not just passion, but also a viable business
20:55 that we want to invest in.
20:56 - Well, you can tell us all kinds of things,
20:58 what it does, what it is, which you didn't,
21:01 but you have to say why we as investors should care.
21:04 - If you're passionate, that'll get you through adversity.
21:07 And I didn't sense the passion.
21:09 Again, it's called elevator pitch for a reason
21:11 and no disrespect to the company.
21:13 I hope they succeed, but that was not a very good pitch.
21:16 - I have to agree.
21:17 - Well, the good news is there's a lot more entrepreneurs
21:20 and a lot more founders for us to invest in.
21:23 - I love that about this show.
21:25 - Absolutely.
21:26 - While two entrepreneurs couldn't get past the elevator,
21:33 one made their way to the boardroom.
21:36 In the end, no one was able to secure a high-flying deal
21:40 and were sent back down with nothing to show.
21:43 Whether it's a new innovation or a new way of living life,
21:50 anyone could be 60 seconds away from rising to greatness.
21:55 Or fall from glory.
21:56 Tune in next week as Entrepreneur Elevator Pitch continues.
22:02 - You're coming in hot.
22:03 - You are coming in really hot.
22:05 - And to apply for the next season,
22:07 go to entrepreneur.com/elevatorpitch.
22:11 Investors personally styled by celebrity stylist,
22:14 Kim Bollefe.
22:16 (upbeat music)
22:18 (door slams)