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00:00Entrepreneur's Board of Investors is challenging America to pitch the next big idea.
00:08What's happening with psychedelics is extraordinarily exciting.
00:11Things got real.
00:12During a 60-second elevator pitch.
00:14Time's up.
00:15Pitching in this elevator is hard.
00:17Let's go.
00:18After each pitch, it takes just one investor to say yes to open the doors and hear more.
00:22I'm in.
00:23Yes.
00:24But only the ones who say yes can go on and invest.
00:27Best pitch I've ever heard.
00:29Yes.
00:30Straight from home or the home office.
00:32When the world turns upside down, women still need bras and undies.
00:34This has never happened in the history of elevator pitch.
00:37This is going to be so awesome.
00:42It's Entrepreneur Elevator Pitch with support from Michigan Economic Development Corporation and U.S. Bank.
00:49Going up.
00:52Welcome to a work from home edition of Entrepreneur Elevator Pitch.
00:55We have four amazing investors ready to dish out some money.
00:58Let's hear the first pitch.
01:00Your 60 seconds begins now.
01:03Going up.
01:05In North America, 50% of the food is wasted and 79% of that waste comes from industry.
01:11My name is Julie.
01:12And I'm David.
01:13Four years ago, we co-founded Loop Mission, a circular economy company that aims to reduce food waste by repurposing the outcasts of the food industry.
01:21So we partnered up with a major distributor that throws away more than 16 tons of produce every single day.
01:2716 tons a day.
01:29And we made a factory inside their warehouse to transform those misfits into awesome cold-pressed juices.
01:34We didn't push the concept further away.
01:36We also have a line of gears made with day-old bread.
01:39A gym that upcycles potato cuttings from a potato chips company.
01:43And even soaps made with recycled art from a vegan fast-food chain.
01:46We now have more than 2,000 point of sales in Canada.
01:49And we double our sales every year since the start to achieve $10 million in revenues in 2020.
01:54We're now ready to expand in the U.S.
01:56And we're looking for a $3 million investment for 10% of the company.
02:00Would you like to be part of the Loop?
02:02One.
02:03Time's up.
02:05Looking at the revenue, it's pretty significant.
02:08Obviously, a high valuation comes with that.
02:09But the double revenue looks like a great opportunity.
02:13Food waste is definitely near and dear to my heart.
02:15However, I'm really curious about their expansion into the U.S. market.
02:20Which I think when it comes to something like this, it's a tiny bit saturated at present.
02:25I also have an investment in a brewing company in Canada.
02:28So I'd like to learn more about how they plan to come to the U.S.
02:31And I'm not sure that we're talking about food waste.
02:33I want to find out if we're talking about some of the orphan food as they mentioned it.
02:37As a consumer, I'm not sure I would want to know that I'm drinking food waste.
02:41But I'm interested how they get around that.
02:45Enough talking. Does anyone want to hear more?
02:52I'm in.
02:53I'm in.
02:54I'm in.
02:55Let's open the doors.
02:57Welcome to the boardroom.
03:03My question would be, it looks like the strategic partnership that you have with the current produce distributor has been really key to your success in scaling.
03:11Do you have one of those already lined up in the U.S.?
03:14We actually have this lined up in the U.S. and also in Australia and Europe.
03:18The biggest risk I see in your business is working with all these partners in different jurisdictions.
03:23And it doesn't seem like there's anything that proprietary about what you're doing that otherwise couldn't give them the playbook to go do it themselves.
03:30How do you think about that?
03:31It's really a win-win situation when we work with them where they get to sell our products.
03:37They get to really increase their revenues with our own brand.
03:41And that's how it really works well.
03:44Got it.
03:45And can you tell us about your marketing strategy?
03:47Because we sell more than the product.
03:49We sell a mission.
03:50People will talk about us.
03:51We'll share about our mission on social media.
03:53So we basically have to invest just a little bit money in marketing.
03:56And it's crazy the coverage we get because people will just share about it because they love the mission.
04:02In terms of the product extension, you've now moved into alcohol and soap.
04:06Why have you already moved into other products?
04:09Is there not enough market right now?
04:11We really want to be in all the different aisles.
04:13We want to be in produce, in dairy, in grocery.
04:17And that's because we want the people to understand that it's so many different products.
04:21And the main line that connects all these projects together is really the mission that is reducing food waste.
04:27These guys have a serious ass.
04:29Do you guys have a serious offer?
04:35This isn't for me.
04:36I think it's too much capital for me to go it alone at this point.
04:40I see more risk in the partnerships.
04:42And I'm not sure I can get there.
04:44So I'm going to pass.
04:45It worries me that you have so many products at such an early stage in the company that you won't be able to focus.
04:50So I'm going to pass.
04:53I'm passing as well because I would just really need to know that these products are the best products in the market.
05:01I would love to sample them.
05:04I don't know how we do that through Zoom.
05:08How do you guys feel?
05:09I mean, you had such promising prospects that none of the judges ultimately wanted to do a deal.
05:14Well, I think it's just a no revoir, as we say in French.
05:18I think they'll see us on the shelves and they might think back.
05:21For us, we're just launching really good products that taste good, that people use them because they're just amazing.
05:26And then if there's a mission on the extra and it doesn't cost more, then why not?
05:33Let's go, investors.
05:34Next pitch.
05:35Your 60 seconds begins now.
05:37Going up.
05:39Imagine if I asked you to go to one site to tell me who represents your favorite athlete, what their stats are, their business ventures, the charities they work with, or maybe even what their email address is.
05:49Where would you go and how long would it take you to find?
05:52Well, I can tell you that you couldn't.
05:54Until now.
05:55Hi, I'm Ryan Rotman.
05:57And along with Aaron Rodgers, we've created OSDB, or Online Sports Database.
06:01OSDB shares elements of IMDB, a database that's the standard for the entertainment industry.
06:07IMDB was purchased by Amazon, is valued at $3.8 billion, and has 250 million site visits a month.
06:13Now, if this works for the entertainment world, why wouldn't it work for the much larger sports world?
06:18OSDB is a digital sports platform with the most extensive and accurate information on those athletes and teams that you love.
06:25Now, we're disrupting the market by consolidating and aggregating all those sites, and we're seeking $1 million at a $7 million cap with a 20% discount.
06:34So please join Aaron and I in setting the new sports standards.
06:39He had a really great pitch, and I can see how he probably has an audience.
06:43I'm a huge sports and Packers fan, but this just is not in my wheelhouse.
06:47Did leave a little questions, but this is actually a sector I'm really focused on.
06:51Yeah, I think he did a great pitch, but this is not in my wheelhouse.
06:56I think we know the answer, but does anyone want to open the doors?
07:06If it's a touchdown, I'm in.
07:08Open those doors.
07:11Yes!
07:12Welcome to the boardroom.
07:13Let's go!
07:14Hey, Ryan, congratulations.
07:16I really like the pitch.
07:18You said you want to be the IMDb of sports.
07:20Why wouldn't IMDb just be the IMDb of sports?
07:23Well, our differentiator is we have researchers that are going out and actually pulling, aggregating, calling managers, athletes, agents.
07:32It's a ton of work, but eventually, you know, we'd love to be acquired by IMDb.
07:37How much money has been in the company so far and how many people do you have?
07:40How big is the enterprise?
07:41So there's three founders, myself, Aaron Rodgers, and Nate Raby.
07:44We have a cap table of four.
07:46Then we've got committed $750 of the $1 million thus far.
07:51So tell me about your monetization strategy.
07:53How do you make money?
07:54Subscription-based, so much like the IMDb Pro.
07:57You get a subscription, so the athlete representation information is hidden behind a paywall.
08:02We have an affiliate program where we work with DraftKings, Cameos, so they can live on the actual player profiles.
08:09We're also looking to help these athletes generate revenue outside of the game.
08:13It's time to make an offer or not.
08:20Okay, so Ryan, I have a number of professional athletes, former and current, that are investors with me.
08:25I think I can add more than just bringing capital.
08:28My offer is I'll fill out the balance $250,000 of your convertible note if you also assign a board seat for me along with that.
08:36Ryan, do we have a deal?
08:39So $250,000 and a board seat.
08:48Yeah, I think, yes, we have a deal.
08:50Fantastic. Congratulations.
08:52From one winner to another, let's do a virtual high five.
08:54Absolutely. Yes, sir. Let's get it.
08:56What do you think is the strategic value that you're going to be able to get from Ross?
09:01He's steeped in sports. He's got some athletes that invest with him.
09:04And, you know, we're really trying to create a team here where everyone has a voice, everyone has some input.
09:09Looking forward to having those different insights and knowledge into that world.
09:18Michigan is about grit. We work hard. We play hard. It's about getting things done.
09:22The Michigan business culture is very collaborative.
09:25The key to the startup community in Michigan is that everybody helps everybody else.
09:29We are proud to be a Michigan business.
09:35Time to move on to the next pitch.
09:37Your 60 seconds begins now.
09:39Going up.
09:41You may have heard that we're in the middle of a psychedelic renaissance.
09:44Magic Mushrooms, LSD and MDMA are discovering new medicines for mental health
09:50and uncovering connections between physical well-being and consciousness.
09:55Michael Pollan writes about this in his bestselling book, How to Change Your Mind.
10:01And Joe Rogan writes about it or talks about it on his very popular podcast.
10:05I'm Ken Jordan. I'm the CEO and the editorial director of Lucid News,
10:11an online psychedelic journalism platform that's covering what's happening in this space.
10:17Lucid News is the Wired magazine of this topic.
10:22And we were founded by some of the leading experts in the space.
10:26Our revenue comes from advertising and membership.
10:30And we are now raising, for 10% of the company, $350,000 to pay for our coverage.
10:41Not to be funny, but that guy was a trip.
10:44Things got real. Things got real.
10:47Yeah, Peter, you know, I love this space. It's a sector I'm really, really excited about.
10:51I can't say that that pitch got me very excited, though.
10:54Those small niche businesses in the media space really concern me.
10:57Yeah, that was an interesting pitch. I've seen a lot of interesting opportunities in that space.
11:02I am very confused. What is an online psychedelic journal?
11:06And how big could that audience really be?
11:09Does anyone want to open the doors?
11:11None of the investors wanted to hear more. So send them down.
11:23Going down.
11:25Is there anything now thinking back at it that you could have done or said to make it pop a little bit more?
11:30I think the people who are responding to what we're doing just get it.
11:35Some people get it.
11:37It's not the easiest thing to get across in 60 seconds.
11:40I obviously have a lot to learn, too, about how to talk about it.
11:43I'm ready for the next pitch. Let's go.
11:46Your 60 seconds begins now. Going up.
11:50Hello, my name is Erica Foyt, the CEO of Distilled Bath and Body and the co-creator of Pitlaker deodorant.
11:56Before Pitlaker, we faced the deodorant conundrum.
11:59You could either stink, get a rash from a natural deodorant or risk getting cancer from one of the more traditional options.
12:04And none of that worked for us. So we made Pitlaker from whiskey and vodka.
12:09It works because alcohol kills bacteria. Bacteria is what makes you stink.
12:13And liquor is simply very natural alcohol.
12:15We hear often from our customers that their painful pit problems have been solved by patent pending Pitlaker.
12:21Our funny, shareable online marketing makes us the poopery of natural deodorant.
12:24And we look forward to growing our viral traction with investment.
12:28We are profitable with an 86 percent profit margin and a one million dollar annual revenue run rate.
12:33Our manufacturing and shipping is done in-house, which makes us agile for scaling.
12:37We have tripled annually since 2017.
12:40We're looking for $500,000 at a $7 million valuation, hoping that you will quench your stench.
12:51Well, according to that, I always smell good.
12:53But I'm really confused about whether or not this is a long term business or just something that's a little bit gimmicky.
12:59Similar for me. I'm worried that it is gimmicky and it's sort of a one hit wonder.
13:03Her creativity is really inspiring. And so is her growth.
13:07The energy was infectious. I think she's got a great product.
13:10Does anybody want to hear more?
13:18I'm in.
13:19I'm in.
13:20Let's open the doors.
13:26I'm curious to learn more about how many SKUs you currently have.
13:30Are you strictly D to C?
13:32We sell mostly DTC online.
13:35We also sell in Urban Outfitters right now and have worked with Nordstrom in the past.
13:39So we have been working on our wholesale.
13:41And what is your revenue today?
13:43Our trailing 12 months is about $650,000.
13:46And we are currently at a $1 million annual revenue run rate.
13:49A $7 million valuation is extremely high for this business.
13:53Have you raised any money in the past?
13:55We've raised friends and family and we've also put in our own savings.
13:59Erica, I want to cut in. I'm really curious about something.
14:02I've never looked at a martini and been like, I'd rather put that on my armpits than drink it.
14:06So how did this happen?
14:07During my pregnancy, I gave up on natural deodorant because I'd been through two years of total disappointment.
14:12And my husband kept wanting me to try more.
14:15And I was like, all right, genius, then you figure it out.
14:17So because he's a super nerd, he then spent the next year doing research and development
14:22to find the most perfect product for me and my very sensitive armpits.
14:27Okay, investors, we have an ask on the table.
14:30Does anybody want to accept that offer?
14:37I do like what you've been able to build.
14:39And it's very impressive that you've gotten $650,000 this year alone on this product.
14:45But unfortunately, I think that for me, I'm out.
14:49Oh, okay.
14:50Erica, I still have too many questions.
14:53I wish you the best, but I'm out as well.
14:55Okay.
14:56We were all rooting for you, but it doesn't look like a deal is going to be happening today.
15:02I'm going to use my wild card.
15:10Okay, Erica, before you get too excited, I think this is an interesting business.
15:14I really like you.
15:15I have concern about the valuation too.
15:17So here's what I'd be willing to do.
15:19$250,000, which is half of your ask for 10% of the company.
15:23And I'd like a board seat with that too.
15:26Are you prepared to take his offer?
15:32Ross, we have a deal.
15:34Oh, Erica, that's great.
15:36It's going to be awesome.
15:37And I promise I'll make it Ross-some.
15:39Never say that again.
15:43What are you most excited about?
15:45I feel like I've given this 180,000% of what I've got for the last three years.
15:50And I think Ross has what will help us keep that going,
15:53that momentum growing and getting stronger.
15:57Okay, let's move on to the next pitch.
16:00Your 60 seconds begins now.
16:02Going up.
16:06Hi, I'm Travis Holloway and I'm the co-founder and CEO of Solo.
16:10Have you ever needed to borrow a few hundred dollars for an emergency?
16:13Have you ever lent money only for someone to get amnesia when it's time to pay it back?
16:18If so, I've got the solution, Solo.
16:21Solo is short for social loans and is a mobile lending exchange that connects individual lenders
16:26and borrowers for the purpose of providing affordable access to loans under $1,000.
16:31Solo is a marketplace that works like Airbnb for loans.
16:35Lenders can earn industry-leading returns while helping people who need it most.
16:40Borrowers can solve their short-term cash needs more affordably than ever
16:44with no formal application and receive funds within seconds.
16:47We make money from transactions in the platform.
16:50We've processed over 50,000 loans and have exceeded a 1 million annualized revenue run rate,
16:55growing at 40% month over month.
16:57Today, we're asking for $100,000 in uncapped safe notes.
17:01Every day, we're proving the power of financial collaboration and true community banking.
17:05Join us.
17:07I thought it was a great pitch.
17:08I have some real concerns though about being early stage, only 100,000, highly regulated markets,
17:14probably a lot more complicated than I could understand from the pitch.
17:17I think it problem solves for the current predatory lending system that is in place.
17:23An Airbnb for loans, it's an interesting concept.
17:26Travis seemed great, extremely strong founder, but unless he was the founder of SoFi
17:33or another successful lending company, I don't think I would invest on the uncapped note.
17:38Okay, investors, does anybody want to hear more and open the doors?
17:48I'm in.
17:50Let's open the doors.
17:51Welcome to the boardroom.
17:53Yes, let's go. Let's go. Let's get it.
17:57This is obviously a goldmine for borrowers, but what is the incentive for the lenders on the platform?
18:04Yeah, so great question.
18:05The incentive for lenders is that they can earn up to 12% per transaction
18:09for the loans that they process on the platform.
18:11And how are you navigating this highly regulated industry?
18:16Before we ever wrote a single line of code,
18:18we went out and we consulted with multiple law firms around the regulatory environment,
18:23and we feel extremely confident about our path forward.
18:26And are you currently profitable?
18:28We are set to be profitable by the end of Q1 2021.
18:32We're extremely excited about the growth that we've seen from a revenue perspective.
18:35It's up over 900% over the last six months, and we do have a very clear path to profitability.
18:42Okay, investors, specifically Avya, what do you want to do?
18:50This is tough, Travis.
18:51I would love to be an advisor, but your current ask is not something that I'm interested in.
18:56Would you be open to a convertible note with a potential discount?
19:01Yes, but it still worries me that it's uncapped.
19:04What if we were to put on a cap of, say, $30 million?
19:08No.
19:09How do you feel about $20 million?
19:11$20 is not bad.
19:12If you just stay quiet, you might keep going down.
19:14I know.
19:16I'm willing to do a convertible note at a $20 million cap.
19:20Obviously, that would convert at Series A with no discount.
19:23With no discount?
19:24Nope, but I'll give you 6% interest.
19:26So, Avya, is that something you're prepared to take?
19:36Yeah, let's do it.
19:37All right.
19:38Awesome.
19:39I'm super excited about this.
19:41I think it's going to be great to partner with you.
19:44Same here, Travis.
19:45What are you most excited about to be able to work with Avya?
19:49One, she has a passion about disrupting the payday lending industry, which is incredibly exciting for me.
19:55So, I look forward to working with her to provide more affordable access to small-dollar loans.
20:00So pumped for elevator pitch.
20:02Coming up on the next Entrepreneur Elevator Pitch.
20:05The future is definitely bright.
20:07And I feel like we're going to go out and change lives.
20:09I'm here for it.
20:10I'm, like, crying.
20:12And to apply for Season 7, go to entrepreneur.com slash elevator pitch.