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00:00Entrepreneurs Board of Investors is challenging America to pitch the next big idea during a 60-second elevator pitch.
00:12Time's up. Pitching in this elevator is hard.
00:16After each pitch, it takes just one investor to say yes to open the doors and hear more.
00:20I'm in.
00:22But only the ones who say yes can go on and invest.
00:26Elevator pitch, baby!
00:27Straight from home or the home office.
00:29When the world turns upside down, women still need bras and undies.
00:32This has never happened in the history of elevator pitch.
00:35This is going to be so awesome!
00:39It's Entrepreneur Elevator Pitch, with support from Michigan Economic Development Corporation and U.S. Bank.
00:47Going up.
00:49Welcome to a work-from-home edition of Entrepreneur Elevator Pitch.
00:53We have four amazing investors ready to dish out some money, so let's hear the first pitch.
00:58Your 60 seconds begins now.
01:01I'm Erica Halpern, bride-to-be.
01:03I've planned and re-planned a wedding, so that makes me an expert at all things bridal.
01:08I'm Erica's lucky fiancé, Dr. Ryan Chow.
01:11I'm a dentist, so that makes me an expert at all things dental.
01:14Together, our business is Bridebrite.
01:16Bridebrite is a 10-minute-a-day, 10-day teeth whitening program good for anybody.
01:20It's sensitivity-free, dentist-designed, and safe for your enamel.
01:24While getting ready for our special day, I wanted wedding white teeth.
01:27I tried charcoal, whitening strips, syringe-filled trays, even the dentist's office.
01:31These options were costly, ineffective, bad for her enamel, or cost-sensitivity.
01:36We turned our original wedding day into launch day.
01:39Since our launch in May, we can barely keep up with sales.
01:42We've even secured a deal with the world's largest beauty subscription box.
01:45We're seeking $50,000 in exchange for 15% of our company.
01:49I may have to wait to walk down the aisle, but please don't make me wait to walk into the boardroom.
01:54Who's ready to say I do to Bridebrite?
01:57Two, one.
01:59Time's up.
02:02Wow, they're such a cute couple.
02:04Seems like they have a great co-founder situation going on.
02:07However, I think $50,000 sounds like a pretty small amount to get this off the ground.
02:11Love their energy and enthusiasm. Clearly, it's authentic to them.
02:15Curious about the competitive landscape, so would love to ask them a couple questions about that.
02:19I think I'm concerned whether or not there's enough customers,
02:21whether just focusing on weddings is a big enough market for teeth whitening, considering that's already out there.
02:27I'm actually a little concerned about having a fiancé duo as co-founders.
02:32There's been data that suggests that marriage combos are tough for co-founder relationships.
02:38Does anybody want to hear more and open the doors?
02:45Okay, I'm in.
02:46I'm in.
02:47I'm in.
02:48Let's open the doors.
02:52Welcome to the boardroom.
02:54First off, congratulations on your business and your marriage. Super exciting.
03:00How are you going to divide between your personal lives as well as your business lives?
03:04I will say that for me, I think we've done an excellent job since we launched Bridebrite,
03:09setting aside time for our relationship and our business.
03:12I obviously helped at the beginning in creating the product, but when it comes to leadership of the company, it's all Erica.
03:19So for me, I want to see a company that's going to have an exit strategy at some point.
03:22Have you thought about that? Where do you see this business in three to five years?
03:26We see Bridebrite taking off and making this huge.
03:30Eventually, we are prepared to sell.
03:33However, that will not happen for many, many years.
03:36Would love for you guys to speak more to your raise and revenue to date.
03:42So since we launched our product, we have generated around $20,000.
03:47We see that there is potential growth with the wedding industry taking off next year after so many weddings have been canceled this year as well.
03:54You guys are called Bridebrite and you talked about expanding your product category.
03:59How are you going to expand beyond the bridal market?
04:02We are called Bridebrite. However, we already have a few products in the works that are more of a generic name and will help us expand way past the bridal industry.
04:11Okay, you three investors, is anybody prepared to make an offer?
04:15I like the founders a lot. This feels like it's really early stage and I'm not sure how far the company can get with $50,000.
04:22So I'm going to pass this time.
04:24Like Ross said, I want to see a little bit more traction.
04:27I want you to figure out your branding because I think that's going to be a really big struggle as you look to expand.
04:32So I'm also going to pass.
04:34Unfortunately, I am out as well. We need to see a bit more traction.
04:38But I hope and I think that you guys can get there.
04:42Were you both surprised that you didn't get a deal? There was so much excitement and enthusiasm, but it obviously didn't work out.
04:48You know, I was a little surprised. I was excited for the opportunity, but I do understand that we are a young company and we will get there.
04:56What would you have done differently in the boardroom?
04:58If I could do anything differently going into the boardroom, I think really just talking about the interest that we've gotten so far,
05:05the sales that we've made and also just how much the wedding industry is going to change in the next year.
05:11And I know that once we do establish ourself in this market, Bridebrite will be the go-to teeth whitening company for everybody.
05:18Let's go, investors. Next pitch. Your 60 seconds begins now.
05:25Hi, my name is Liz. I am CEO of Fog & Tree.
05:28And we are a cannabis centric personal care company that utilizes cannabis terpenes to enhance our fragrance and topical products founded by cannabis brand experts.
05:39We are introducing consumers to cannabis in ways that don't include ingesting or smoking and is legal in all 50 states.
05:47Luxury retailers like Fred Siegel in Los Angeles love Fog & Tree products.
05:53We've already raised $300,000 of our $700,000 convertible note round with a $2.5 million cap.
06:01And we invite you to finish off our round.
06:04Cannabis Beauty is estimated to be worth $18 billion by 2026.
06:09So now is the opportune time to invest in an innovative startup like Fog & Tree.
06:14Check us out at fogandtree.com to learn more.
06:17Thank you. And we look forward to partnering with you.
06:23Time's up.
06:24I've done a lot of investing in this space. It's really intriguing.
06:27I'm not sure how differentiated it is. There's a ton of brands. Nobody's really gaining a lot of traction.
06:32I agree with Ross. I think it's a very saturated market. I'm unsure of her ability to scale with this product.
06:39My challenge is I don't really understand what cannabis has to do with being in a fragrance.
06:45I've also been fairly active investing in this space. Not sure about the topical efficacy in a fragrance, for example.
06:52But maybe there are some other product lines that she hasn't explored yet that could be interesting.
06:56Enough talking. Does anyone want to hear more?
07:02I'm in.
07:03I'm in.
07:04I'm in.
07:06Let's open the doors.
07:09Oh my gosh. I'm so excited.
07:11Welcome to the boardroom.
07:13I understand why cannabinoids are efficacious in other topicals.
07:18But why fragrance? Is there actually a benefit or does it just smell better?
07:22What is the value prop to customers?
07:24The cannabis plant contains over 140 unique terpenes in a single strain.
07:30So we like to think of cannabis as aromatherapy on steroids.
07:33It all depends on the terpene profiles that you use and the effects that you're going after.
07:39So how do you plan to capitalize this company going forward?
07:43How are you going to get that kind of scale?
07:45Our next round, we are going to be doing a Series A probably next year.
07:49We've actually got a really low burn rate.
07:52So we can run really lean and just focus on top line growth, focus on branding, marketing and sales.
07:57So I'm just curious how you're navigating what's going to be a really saturated market.
08:02Yeah, I mean, fragrance is definitely difficult.
08:04And a lot of people want to experience fragrance before they purchase it.
08:08So we do a ton of sampling. We send out, we put them in subscription boxes.
08:13We just try to get our fragrance in the hands of the people.
08:16Are any of the three judges prepared to accept Liz's offer or make one of your own?
08:21I unfortunately am not going to be moving forward.
08:24I super appreciate the pitch and I think the products all sound amazing, similar to Alison.
08:28I think I might be a customer, but not a fit for me today.
08:31Yeah, Liz, I'm going to echo Amanda.
08:33I think it seems like you have a fantastic product.
08:36I am concerned about customer acquisition and scaling the product as well.
08:41But I do wish you the best of luck and appreciate you pitching us today. It was wonderful.
08:46The investment that we're discussing right now is not something I'm going to participate in.
08:50However, one of the things that you should always look for in investors is a Rolodex in relationships.
08:56I would be interested in opening up some of these strategic relationships in exchange for acquiring some equity in the company.
09:02For some participation that wouldn't be on your convertible note.
09:06So Liz, what Ross is proposing is an advisory agreement. Is this something that you're prepared to say yes to?
09:17Knowing your experience in the industry and your Rolodex, I would be more than happy to do that. Yes.
09:22Congratulations. Congratulations, guys. I'm so excited. Thank you so much.
09:27Congratulations on working a deal with Ross.
09:30Nobody, unfortunately, hit the deal that you offered.
09:33What do you think you needed to do different with the differentiation and how your product would stand out amongst the very crowded space?
09:39You know, it is a crowded space and it is difficult to differentiate, but I think that we have a meaningful brand story.
09:46We have great traction. We have amazing products.
09:51And I think at the end of the day, even though it's a saturated market, we're going to be at the forefront.
10:01Businesses soar in Michigan. Michigan has really talented people.
10:05Michigan is a great place to live, which also makes it a great place to work.
10:09Michigan has a long history of innovation.
10:16Moving on. Next pitch. Your 60 seconds begins now.
10:20Hi, I'm Max, the CEO and co-founder of Caribou.
10:23Hi, I'm Max, the CEO and co-founder of Caribou.
10:25We're the leading educational family entertainment platform for kids ages 0 to 13 to have virtual playdates with family and friends when they can't be physically together.
10:33With Caribou, you can read, draw and play together in a shared screen immersive experience.
10:38As you can imagine, we grew 10X across all metrics over 24 hours in March.
10:42This led us to triple our team over the last five months, and our projected sales for this year are 1.2 million.
10:47We're the world's first multi-platform video calling experience for kids and families.
10:51And our in-app library contains thousands of books in 10 languages for the hundreds of thousands of users we have across 200 countries and territories.
10:58We closed a $3 million seed round last year with great funds and celebrity investors.
11:02And I'm now seeking $1 million in exchange for 10% of my company in a Series A round that is 90% committed.
11:08I'll use that money to keep the amazing team I just hired.
11:11And as the first mover in this category, I'll aggressively acquire customers while we have a global captive audience.
11:16If you want to invest in the company that is leading the way in the kids video calling space, we'd love to chat.
11:21Time's up.
11:23She had a lot of data packed into that. She talked about her traction, which is awesome.
11:28Very informative and succinct. She did a great job.
11:31I think it's very topical right now, given everything going on in the world.
11:35It didn't go into a lot of depth for me to really understand exactly what the company is.
11:39So it seemed like she said all the right things, but I don't know yet if there's a business there.
11:43We have to decide who wants to hear more and open the doors.
11:49I'm in.
11:50I'm in.
11:51I'm in.
11:52I'm in.
11:53Let's open the doors.
11:55Welcome to the boardroom.
11:59Hey, Max, could you speak a little bit more to the competitive landscape?
12:03Yeah, so I think the biggest differentiator between us and a FaceTime call with, we call her Glamour, by the way.
12:11So that's Glamour's grandma, calls them doing this, right?
12:14You're holding up a book and a child can't see the text and grandma's kind of looking around and it's just a very terrible experience.
12:21So this allows everyone to see the same thing on the screen.
12:24And is that licensed content or owned content?
12:27We license kind of the big name brands that kids and families recognize.
12:30We have a ton of original content.
12:32Really curious about how far that million dollars gets you when you're balancing both content creation and customer acquisition.
12:38Our strategy has been to do joint ventures with brands that we really trust.
12:42And even the content that we create, right?
12:44We create it in-house and they help us get our margins up to about 80 something percent.
12:48Where do you perceive the risks in this business?
12:50What keeps you up at night?
12:52Am I going to be able to capture all this opportunity?
12:54Can I move fast enough?
12:56Is anybody prepared to make an offer and join this journey?
13:00There are few too many unknowns for me to make a commitment at present.
13:03I'm out.
13:04Unfortunately, I'm out, but good luck.
13:07I'm out.
13:08Wish you all the best and hope for your continued success.
13:11Allie, you're going to bring this home?
13:13Max, if you'd be open to it, I'd love to make an offer to be an advisor for 1%.
13:18My entire background is in media.
13:21And as a mom of three, this is something that is a sore pain point for me.
13:27And being far away from my family, I know my grandma would be really appreciative of having this be a part of her family.
13:34So let me know if you'd like me to be a part of yours.
13:37Max, you actually have an offer from Allie.
13:39Is that something you're prepared to agree upon?
13:46Awesome.
13:47Allie, we'd be honored to have you as an advisor.
13:50Congratulations.
13:51Looks like you two have a deal.
13:53I'm excited.
13:54Thanks, Allie.
13:55Awesome.
13:56Super excited.
13:57What are you hoping to get from Allie as an advisor?
14:00Given the fact that she's a mom, a mom of three, right?
14:02That brings just another level of understanding to the work that we're doing.
14:06She will be a great advisor to us on the business side, on the operational side, and on the strategy side.
14:13Moving on.
14:14Next pitch.
14:15Your 60 seconds begins now.
14:17Going up.
14:19Every day, more people are training at high intensities like elite athletes.
14:23The problem is they're not spending the time on recovery like elite athletes because they're busy and on the go.
14:28At the same time, nobody's really spending time helping their CrossFit gym, boot camp, or yoga studio owner recover from COVID.
14:35O2 is helping solve both these problems.
14:38We make a recovery drink that people love, and I'm happy to tell you all about it.
14:42But I think what's even more special is the type of company we are.
14:45In March, we developed a program that generated hundreds of thousands of dollars to give back to gyms shut down by COVID.
14:51At the same time, it propelled our D2C business alone into the seven figures.
14:55And you can read all about it here on the cover of Entrepreneur's Startups Magazine.
15:01The best part is we're just getting started.
15:04So while we don't need money, we want good people.
15:07If you live and breathe our values of honesty, humility, and hustle like we do,
15:11then we have $400,000 to fill up in a convertible note, and we would love to have you on Team O2.
15:17Time's up.
15:18I didn't learn enough about the business and the product,
15:22but I think this is a company that's probably got its corporate ethos in the right spot.
15:26I love a good give back component, especially in today's world.
15:31He said that he's helping gyms. He's got a drink product.
15:35He's not asking for money, but he's asking for $400,000.
15:39I know that there's a sports drink involved, but I'm not sure what it does, why it's special, or what it is.
15:45Does anybody now want to hear more and open the doors?
15:54I'm in.
15:55Well, it looks like Ross is thirsty to hear more. Let's open the doors.
15:59Welcome to the boardroom.
16:01All right.
16:03Let's start with really what the base business is,
16:05because I liked all the things you said about what you're doing ethically,
16:08but let's help me understand what the core business is today.
16:11So we make a drink. It's a recovery drink. This is one of four flavors. It's called O2.
16:16And all of our flavors are made with seven times more oxygen than normal water
16:21to help the body clear lactate and toxins faster.
16:24Give me a perspective on the scope and size of the business today.
16:27We're mid-seven figures today.
16:29We have a really strong D2C business and a really strong grocery business.
16:35Although, like every business, our business has changed pretty significantly since COVID.
16:40Talk to me about the size of the infrastructure, how many people you have.
16:43So I have eight people total.
16:45We're in about half of the Kroger stores in the United States,
16:48all the public stores, all the Sprouts, and a few regions of Whole Foods.
16:51Then we have our direct-to-consumer operation and our fitness operation.
16:55There's still a lot of risk in this company, so here's what I'd be prepared to do.
16:59You're looking for $400,000, right?
17:01We've got $400,000 left in the convertible note, yes.
17:05The most I'd be willing to go up to would be $200,000,
17:08but I'm going to want 5% of the company for that $200,000,
17:12straight up-priced round, and a board seat.
17:18Dave, what do you want to do?
17:21Ross, I'd respectfully decline that offer.
17:25Whoa, Ross, he just turned you flat down.
17:28Well, Dave, I'm not sure you're taking into consideration the value that I could bring.
17:33Maybe we could bridge a little bit of a gap here, unless you think we're so far off we can't.
17:37We'll probably be far off, Ross, but let me take you through kind of what I envision.
17:41I left a really nice, cushy, six-figure day job.
17:45I don't care about your prior day job. I'm not investing in that.
17:48I would imagine that you want to know what I'm doing and why I'm doing it.
17:51So the reason that I left that day job was to build a company that society would be proud existed.
17:56And so that doesn't necessarily mean flip something as fast as I possibly can
18:01and sell it to the highest bidder.
18:03The only way it's going to matter is if we build a meaningful business,
18:06which is where our focus is today.
18:08Well, it looks like there's no deal to be made today.
18:10Dave, wanted to thank you for coming on the show.
18:13Thank you, guys.
18:15I want you to be honest with me.
18:17Were you insulted by Ross's offer?
18:20I wasn't insulted.
18:21I just don't think that Ross has a very good idea of where we're at as a business.
18:25And ultimately, that's on me.
18:27I have many wonderful investors today who have backed O2 and who continue to back O2.
18:33So it's really tough for me to envision a scenario where I give somebody who I just met
18:38a more favorable deal than our existing backers, some of which have been with us from day one.
18:46Elevator pitch. I can't be beat.
18:48Coming up on the next Entrepreneur Elevator Pitch.
18:52I want to make your company Rossum. Awesome.
18:54Are you willing to take his counter?
18:56Oh, my goodness.
18:58And to apply for Season 7, go to entrepreneur.com slash elevator pitch.