On this family-focused episode of 'Elevator Pitch,' see which entrepreneur scores an unexpected payday.
This episode of Entrepreneur Elevator Pitch may be about child-centric products, but no one is kidding around when it comes to cash. Contestants came ready with serious pitches and serious asks. Will anyone score the hundreds of thousands they're seeking to grow their business? There are many factors at play, including this critical pitch component, pointed out by Netflix co-founder Marc Randolph: "A product can't just be useful, it has to be something that a lot of people want."
On this family-focused episode of 'Elevator Pitch,' see which entrepreneur scores an unexpected payday.
Going up! #ElevatorPitch #Entrepreneur
This episode of Entrepreneur Elevator Pitch may be about child-centric products, but no one is kidding around when it comes to cash. Contestants came ready with serious pitches and serious asks. Will anyone score the hundreds of thousands they're seeking to grow their business? There are many factors at play, including this critical pitch component, pointed out by Netflix co-founder Marc Randolph: "A product can't just be useful, it has to be something that a lot of people want."
On this family-focused episode of 'Elevator Pitch,' see which entrepreneur scores an unexpected payday.
Going up! #ElevatorPitch #Entrepreneur
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NewsTranscript
00:00Hello, investors. Welcome to the elevator. Going up. I'm Mark Randolph, co-founder and
00:11first CEO of Netflix. I'm Kim Peral, CEO of 100.co and serial entrepreneur. I'm Gary
00:17Swart, player's partner and serial entrepreneur. And today I'm seeking entrepreneurs who will
00:21shape and develop future generations. This is Entrepreneur Elevator Pitch. Presented
00:31by Amazon Business. First to step into the elevator, an entrepreneur who strives to empower
00:42parents everywhere with her innovative child care app. Going up. Hello, Nikki. Welcome
01:03to the elevator. Your pitch begins in 3, 2, 1. I'm Nikki, a former global HR executive,
01:13a two times TEDx host, a twin mom and founder of Miss Poppins, a 24-7 digital platform offering
01:20real time support and coaching to parents in every phase and challenge of their parenting
01:25journey. Only 12% of parents feel supported and prepared and end up wasting thousands
01:30of dollars on defragmented, decentralized solutions. Imagine if Uber and Yelp had a
01:35baby. Our platform curates a new gig economy ripe for disruption for 1 million child care
01:41providers just in the US. By positioning Miss Poppins as an enterprise benefit that will
01:46help companies reduce health care costs and increase employee productivity, we already
01:53have a line of sight towards quarter million ARR and thousands of interested providers
01:57in just a couple of months of beta. We're now seeking 500K safe with 10 million cap
02:03as we enter our pre-seed. Thank you. Well, she seemed a little nervous to me, but it
02:15is a pretty big problem. As we all know, being parents is hard. So I'm curious to learn more.
02:21So it sounds like it's just a resource for parents and caregivers. Is that what you picked
02:26up? I think a marketplace for parents. It's surprising that we're all kind of wondering
02:31what it actually is. We were guessing that's what it is. But I hate the tagline. Imagine
02:37if Uber and Yelp had a baby. I think of reviews for drivers and cars. What would you name
02:43it? Isn't there already a solution in market? A solution. There's a million solutions. Like
02:48I'm curious to know how are they going to show up at the top of search, which we all
02:52know is very expensive. She also said enterprise. So I don't think they're going direct to
02:56parents. It seems like they might be going to enterprise. So it's pretty sophisticated.
03:00It sounds like I'm just not sure, to be honest. Well, should we vote? Attention, Nikki, your
03:16pitch has been approved. Hi. Congratulations, Nikki. Thank you. Welcome. We appreciate your
03:33pitch and we're really curious to hear a little bit more about your business. OK, so it's
03:37a nontraditional marketplace model which puts child care experts, providers, specialists
03:43all over the U.S. in touch with parents in real time. So it's an expert network, so to
03:49speak. It's an expert network marketplace that's real time, hence the nontraditional
03:54marketplace model that's connecting in real time. So it adds up. I get it. I think that's
04:00actually fairly interesting. So I like the fact that it's an enterprise model. I really
04:05like the idea of it being an H.R. benefit. You said, if I heard you correctly, that you
04:10had line of sight to a quarter million dollars of ARR. So just how good does my eyesight
04:17have to be to see that quarter million dollars? So we are pre-seed. We're pre-revenue because
04:21we just launched a couple of months ago. I wanted to make sure that the prototype was
04:25live. It's on the App Store and it's ready for enterprise. So no revenue yet. We are
04:30pre-revenue right now. And no commitment, no contract commitments? Letters of intent
04:34or interest. I am the founder of LetSales that has an extensive network that's ready
04:39to come on board. I like that you're tapping into your network. I think that's very smart.
04:42How am I accessing, as a parent, these individual health care providers? So when you go into
04:48the landing page, Kim, you're going to be looking at multiple different specialties
04:53in any phase or challenge that you'll see in your parenting journey. You're going to
04:57be tapping into whatever need you have. At 2 a.m., your baby's not sleeping. You're going
05:02to click on sleep and there's going to be a live coach available. That is going to be
05:06where you can start chatting with them and you can start video call with them instantly.
05:11And they have their coaching packages so you can talk to them and then go ahead and buy
05:15the coaching package or whatever it is. Is that built out in the app, like an actual
05:18video chat? Everything is built out. You answered a question that I really had, which is that
05:23the benefit that the company pays for is purely to access it. But if you actually want to
05:28talk to someone, you have to pay extra? No. That's a really good question. So the way
05:32benefits work, HR benefit works, is that you're going to pay us for providing access to the
05:38app. And in return, it's about, let's say, 5 free coaching sessions, 10 free coaching
05:44sessions. So based on 5 to 10 free coaching sessions, they pay us and that's what every
05:50employee gets access to. After that, they will have to pay for the coaching session.
05:53So Nikki, you're a marketplace business. You have chickens and eggs. First, you have to
05:57get the coaches and then you have to get the customers. And you have to worry about utilization
06:01and making it synchronous, like the coaches are available when I want to access them.
06:05So you have a utilization problem as well. How do you manage all of it? We don't have that
06:10problem. It was already solved as soon as I launched one week of opening up recs for
06:14providers. Thousands of providers, including pediatricians, registered nurses, applied
06:19on our platform. We had to stop. And how did they get paid? They get paid because they
06:23bring in their packages, their specialty that they want to sell. And then we connect them
06:29to the parents and then the parents pay them directly. When we go into the enterprise model,
06:33we're going to be paying them for the X free number of coaches, coaching sessions that
06:37the employees get on the enterprise model. They're looking for something like that. We
06:41have amazing coach testimonials. The other half is the clients, the new parents, which
06:46we're solving by entering it into as an enterprise HR benefit. We have a huge global
06:52insurer that gave me a call because of my network that I've built over the last 15 years.
06:57They want this to go international. And they were like, when you're ready to take, you
07:02have not made any revenue yet. Right now, the raises for $500,000 at a $10 million valuation
07:08based on a site into a $250,000 run rate on an annualized basis based on letters of intent,
07:15HR Advisory Council and the global reinsurer that is coming in and looking to fill in the
07:21rest. Actually, the idea of parenting on demand, the model's still gray in terms of execution,
07:28which concerns me. The economics really scare me a lot. What is the PPM you're charging? It's
07:34going to be anywhere from a dollar PPM to $1.50 PPM, which is average. So it's a breakage model
07:39because basically for $1.50, you're not going to get a pediatrician to get on the phone at
07:44four o'clock in the morning for 75 cents. At the moment, we're not focusing at all on medical
07:49specialty. We're doing everything that's non-medical, which is certified specialists,
07:55providers. They still want to get paid. So if you're offering, I mean, still, that's where it
07:59gets a little gray. Isn't there now HR fatigue, HR benefit fatigue? They're getting offered so
08:04many of these different services. And there are other places to go to get information. So I think
08:10that it's going to be difficult to one, get the LOIs converted to customers. And then that's just
08:17a hunting license. You have to get users to actually use it. So I think I'm a pass.
08:22I certainly respect the pass. A lot of the work you do is with healthcare and health services.
08:28I'm scared, even though I don't know anything about it. And the guy who knows a lot about
08:32it is even more scared than I am. So I'm afraid I'm going to pass as well.
08:40I honestly love the idea of parenting on demand. I'm still afraid of the execution risk. I love
08:46your passion. I also think from a valuation standpoint, that'd be very hard for me to
08:50invest at a 10 million safe cap. So for that reason, I'm going to pass.
08:57Unfortunately, we don't have money for you today, but we wish you a lot of luck. And
09:02we think you're working on something really important. Awesome. All right. Thanks, everyone.
09:05Best of luck, Nikki. Thank you.
09:07I'm feeling oddly a little more motivated than before, because like they said, it's a beautiful
09:12business model, and it's a really good idea. And we just need time for conversion as we've
09:16just launched a beta. So let's give it time and see where it goes.
09:22Attention, Nikki. Your presence has been requested back in the boardroom.
09:29Are you kidding?
09:33Nikki, welcome back to the boardroom. Thank you. What a surprise.
09:37We were so impressed with your business idea, your concept. We love the idea. We just
09:43couldn't get around investing at this time. Okay.
09:47But we have something very special. And on behalf of Amazon Business, we want to gift you
09:55$10,000 cash in order to grow your business. Thank you so much. That is phenomenal.
10:02Thank you, Kim. So, so impressive.
10:04Yes. Thank you, Mark, for your time.
10:07Congratulations.
10:08Thank you. Thanks, everyone.
10:16Entrepreneur Elevator Pitch is presented by Amazon Business,
10:20for every organization at every stage of growth.
10:29Next into the elevator, an entrepreneur with a groundbreaking innovation making
10:35baby care effortless.
10:38My name is Chris Danis. Wet Wipe Wizard is my product. It is a patented,
10:43powered wet wipe dispenser. Twelve years ago, while I was assisting my first grandchild in
10:49the bathroom with potty training, there was nowhere I could find a wet wipe. And I thought,
10:53why aren't these as accessible as dry toilet paper? They were the ones that actually started
10:57the process. Going up.
11:07Hello, Chris. Welcome to the elevator. Your pitch begins in three, two, one.
11:17Good morning. I'm Chris Danis. I'm a retired surgeon. Twelve years ago, while assisting my
11:23oldest grandchild with potty training, there was a need for a wet wipe and none could be found.
11:28I thought at that point, why aren't these as accessible as dry toilet paper?
11:33The problem with wet wipes is either they're inaccessible, difficult to dispense,
11:38or wasteful dispensing occurs. The solution is the Wet Wipe Wizard, a patented,
11:44powered wet wipe dispenser that can hang from most existing toilet paper holders,
11:49or it can be placed on a counter or baby's changing table. In the United States,
11:54baby wipes alone exceed $1.2 billion a year. In 2024, my goal is to bring the Wet Wipe Wizard
12:02to market. I am seeking a $400,000 investment for a 15% interest in order to achieve that goal.
12:11I thank you for the consideration and hope to explain it further.
12:20Well, that wasn't necessarily a bad pitch. I always love entrepreneurs who are trying to
12:25fill a need, but do we really need wet wipes in every bathroom? I mean, I've got four kids and
12:30I'd like a wet wipe in every one of my bathrooms, Mark. So struggle is real for sure. How big the
12:36market is, I don't know. Well, it's also another one of those products which sounds like it hasn't
12:41even launched yet. So I think there's a lot of conjecture in this. I might want to hear more,
12:46hear what he has to say, but I worry about the competition as well. Yeah, I mean, I guess what
12:50you're competing with is basically a box of wet wipes sitting on the counter. I mean, is there
12:55really a big advantage of putting it on the wall? Well, let's vote. I think at this point, don't we
12:59know enough? Let's take it to a vote.
13:09Attention, Chris.
13:13Your pitch has been approved. Great.
13:22Well, Chris, welcome to the boardroom. Thank you. Glad you're here, but I will warn you,
13:27it was not unanimous. So that means there's some interest, but you haven't sold us yet.
13:32And my first question I think is, it sounds like the product is not in the market yet.
13:37It's not. Give us a sense where it is, how far you are away from that. These prototypes, we have
13:42our fourth patent. We have a fifth patent pending. We have a manufacturer in China lined up to
13:49produce it. We've lined up a distributor. We're ready to go. I just need a little extra funding
13:54to take it there. What is patentable about a wet wipe dispenser? Well, actually, what the most
14:00patentable thing is, is the cartridge itself. It's a drop-in cartridge, but there are features to it
14:06that it'll only go into this unit, and it makes the dispensing easy and reliable. The old razor
14:12and razor. Razor blade. Yep. So 400K, my question to you is, how are you actually going to get to
14:19market, and who are you going to sell this into? Direct to consumers initially, because it just
14:24makes the most sense from an economic standpoint. Chris, there's a lot of products in the market,
14:29and I wonder how differentiated is it beside the dispenser? Is it possible to see it? Actually,
14:35you know, it's just a push of a button and a wipe comes out. So $400,000 for 15%. Where does
14:42$400,000 come from? What does that get you? So this is, for me, this is the third company
14:47I've started. Oh, wait. Third-time entrepreneur, you should lead with that.
14:54Well, I should. I guess I started a solo practice. I built it to seven surgeons, and then we sold it
15:00to the hospital. I also bought a building and turned it into an outpatient surgery center.
15:06So the $400,000 is going to get you what? Just to produce it, it's about $250,000. So our goal
15:12is to bring 1,000 of these units the first time out with 5,000 cartridges. What's an end user
15:18going to pay? The dispenser itself is $60, and each cartridge is $5 a cartridge. Just what you're
15:24saying in terms of your entrepreneurial practices previously, specifically in healthcare, this would
15:30maybe be a great opportunity to sell into those buildings as like a prototype and to really
15:35establish that there's market demand. I was actually invited out to California two years ago
15:40by the largest disinfecting white manufacturer in the United States. And what they told me was
15:45I was too early in development. They all said, great idea, love it, but I need to see commercialization.
15:52Honestly, as an investor, I want to see in-market sales. And it seems like there's such a huge
15:57opportunity that for me, I would really want to see sales before investing. So unfortunately,
16:02I'm going to pass. Gary, does this tickle your investing fancy?
16:10I think I'm a pass for now. Somebody told me once that the product has to be 10 times better than
16:21the existing version. And I don't know if the pain of getting extra wipes is big enough to
16:26warrant the expense. I'm always quivering when I think of a recurring revenue stream,
16:35a subscription business, so to speak. But I'm terrified about trying to get a $60 product into
16:41people's houses in any kind of cost-efficient way. So I'm afraid that I'm going to pass. And
16:47unfortunately, that means we have nothing for you today. Oh, you had plenty. This has been a
16:52great experience. I've enjoyed it. I thank you very much. Good luck. Thanks, Chris.
16:58I'm feeling pretty good about this. I think the investors had to judge for what they could see,
17:03and dollars and cents, I don't have it. I do have a product, and I think it'll
17:07be successful down the road. It was a great challenge, and I'm glad I did it.
17:15Next, entrepreneur after entrepreneur stepped in.
17:19Going up. Greetings, investors.
17:22Do you remember when you were learning how to ride a bike?
17:26You're going to buy your kids all new clothes anyways, so you might as well let them pick them.
17:30As business owners, I know you're all very busy, and what happens when you're busy? You get tired.
17:38But none of them could make it out of the elevator and were sent down to the
17:43bottom floor with nothing to show. How hard is that? It's the one thing you can practice.
17:53Next in the elevator, an entrepreneur looking to encourage learning and cognition for kids,
17:59all during a delicious snack time. Hi, I'm Tasha, and my company is Ice Lico.
18:05After 16 and a half years, the company I worked for suddenly laid me off. In that moment,
18:12I determined that I was going to shift my focus onto our baby girl, Gracie.
18:18She was born with Down syndrome. Spending time with her in intensive therapy,
18:23watching her learn how to walk, you understand that they're all just trying to reach their goal.
18:29Our company is focused on making products to help children thrive.
18:39Going up.
18:42Hello, Tasha. Welcome to the elevator. Your pitch begins in three, two, one.
18:52Did you know a baby is born every eight seconds, and nearly 240 million children worldwide
18:59face the unique challenges of disabilities? With over 200,000 practicing therapists in the U.S.,
19:06the need for innovative products is paramount. Hi, I'm Tasha, founder of Ice Lico,
19:12and the inventor of our flagship product, the Pinsir Pal. My daughter's special needs
19:17sparked my journey, unveiling the vital role the Pinsir Grass plays in fine motor development.
19:24The Pinsir Pal is not just a product, it's a must. It aids during meals, fosters independence,
19:31boosts confidence, and it's a therapy tool. Traction is gaining, however,
19:36cells are still in their infancy. I'm seeking mentorship. $150,000 for 10%
19:43to make an impact with you, one pinch at a time.
19:53I love her. I agree. I loved her energy and her crisp pitch. I liked it. You guys are pushovers.
20:03I mean, she had some pizzazz, a little extra. She definitely nailed the pitch. She did great.
20:08She nailed the pitch. I also love the fact that she wants to do well by doing good.
20:13Listen, maybe call me cynical, but anytime someone starts with,
20:16there's 16 trillion people in the world who need, I immediately discount the whole.
20:21You don't like the fact that a baby is born every eight seconds? Is that what you're objecting to?
20:26Yeah, I mean, come on, Mark. I thought that was an incredible pitch. What was it missing?
20:31It was missing some sense of what, I don't understand what the real market is for this
20:34thing. I mean, I don't know what it does. Maybe we find out more. I'm not sure.
20:39Just a pinch, Mark. Just a pinch.
20:48Attention, Tasha.
20:53Your pitch has been approved.
20:59Yes!
21:03Hi, Tasha. Welcome to the boardroom.
21:06Thank you so much.
21:08We are so happy you're here. And first, I just want to say you did an incredible pitch.
21:13You had me wanting to know more. And I think your pitch lacked a little bit of information
21:20that we want to get clarity on, which is even though you didn't say the number specifically,
21:25I still wanted to know more in terms of the traction you've had in market
21:29and what the product actually does.
21:31So, traction in the market. Are y'all ready for this? We have sold 150 units so far.
21:42Total.
21:43Total.
21:44You were waiting for the thousand after that.
21:47I know. So, we're just getting started. 150, I know it's small beginnings,
21:54but it's monumental to me and I'm excited about the future.
21:58There's good and bad.
22:00Yes.
22:00So, on one hand, I hear a ton of pitches and I love it when I hear something I've never heard
22:06before. The bad news is, first of all, I really still don't understand what the heck it is.
22:11What is it?
22:12So, this is the Pinsir Pal. It gives children the opportunity to use their Pinsir grasp
22:21during mealtime. You can go ahead and take it and put it on your table.
22:25What you do is put the suctions, put it on your table and you suction it down.
22:30How come Kim got snacks?
22:34Yeah, I'm going to give you some snacks as well. So, you put snacks inside of it.
22:38Oh, there you go, Mark.
22:39Yeah, here you go.
22:40Thank you.
22:40Yeah, you can put yogurt in yours.
22:42Good luck, Pinsir.
22:43Delicious, yeah. Pinching yogurt.
22:45So, this gives children the opportunity to use this motion during mealtime.
22:51This is the precursor to writing, to tying shoes, typing on a computer,
22:58plugging in your cell phone. This is very important. Every child meets this milestone.
23:03Some children learn it later, like my daughter, Gracie, who was born with Down syndrome.
23:10And I believe typical and atypical children can benefit from it as well.
23:15And what about the clinical efficacy, the proof that it works?
23:19We don't have proof.
23:22But let me just tell you, doing this motion is just enhancing the Pinsir grasp. So, it allows
23:30kids to just practice while they're feeding their snacks one at a time.
23:35And so, who have you sold 150 of these to?
23:38We sell direct to consumers, so online.
23:41And how much does it cost to manufacture, and what do you sell it for?
23:45So, it costs about $7, and it sells for $29.87.
23:51Wow. That's a great margin.
23:54It is. And I realize this product isn't for everyone. If it was, it would be sold for $10.
24:00This product is for parents that want to give their children products to enhance
24:07their fine motor skills, and it's also a therapy tool.
24:10Can you tell us a little bit more about that?
24:13Yeah. So, Gary, let me just share a little bit of my story.
24:17Got a degree in child development. The company I was working for
24:21offered to pay for my tuition. One year into the MBA program, I got laid off.
24:27Sixteen and a half years, Kim, out of the blue, I made a promise to myself
24:33that I would finish school with no job and no income, and all my time would be invested into
24:40my daughter, Gracie. And it was in her intensive therapy sessions that this was birthed. This helps.
24:50I know 150 is small, but when I think of my journey and where I came from and Gracie,
24:58I have bootstrapped this entire venture myself. I've learned. I've made mistakes with my own money.
25:04I am here seeking an angel to help me reach the next level. Right now, we only have the small
25:11mat in production, but I would like to get the big mat in production.
25:15So, Kim, you're torn. I'm not torn. I mean, first, you're a very compelling presenter,
25:23but you're, at least for me, you're pitching the wrong product. It's just too niche-y. There's a
25:29lot of issues. It's very early. I mean, for me, despite how much I like you, I'm afraid that I'm
25:35not going to be able to help you. I'm afraid I'm out.
25:37Okay. Thank you.
25:39I agree with you, Mark. I think your story is heartwarming, and I love the fact that you're
25:43doing well by doing good. It just feels a little niche-y to me. And as an investor, I'm out.
25:51Well, Kim.
25:51I honestly, I love what you've created. And if you would have said $150,000, which I thought
25:58you were going to early on, I honestly would consider investing. The fact that we're talking
26:04early on, I honestly would consider investing. The fact that we're only at $150,000, I think
26:11you do need mentorship. You need to figure out your sales strategy, your marketing strategy,
26:16your financial. There's a lot more things to figure out before you go out and get investment.
26:22And so, although I, unfortunately, am going to pass, I'd personally be happy to
26:27mentor you on your journey.
26:29Thank you so much, Kim. You know, Mark, I believe time is more valuable than money,
26:35and I really appreciate that. Thank you, Kim.
26:38Unfortunately, no deal today.
26:40But you certainly got something which, as you point out,
26:43is even more valuable than the investment.
26:45Thank you.
26:45Thank you, Tasha. Good luck.
26:48What it means to have Kim by my side and mentor me, I'm so over the moon. I believe the exposure
26:56from today's show will help moms like me, who have children with disabilities, know that we
27:02have a product that will help their child thrive.
27:06Well, we did not have a super economically productive day.
27:10So many entrepreneurs come and ask me for money, and they actually need mentorship.
27:15They're not at a place where I could even invest.
27:17You know, a lot of times an investor, people say,
27:20you ask for money, you get advice. You ask for advice, you get money.
27:23Maybe they should come out and ask for more advice.
27:27Out of all the entrepreneurs who stepped into the elevator today,
27:34only three made it into the boardroom.
27:36But none were able to secure high-flying deals with our investors.
27:41However, Nikki from Miss Poppins was able to secure a $10,000 prize, courtesy of Amazon Business.
27:50In the high-stakes world of business, if you want to achieve your dreams,
27:55you must rise to the occasion, to rise to the top.
28:03Tune in next week as Entrepreneur Elevator Pitch continues.
28:08I think this is a bad idea.
28:09You're not going to build a brand that way.
28:11You guys are so harsh on them.
28:14And to apply for the next season, go to entrepreneur.com slash elevator pitch.