Absolutely not what they’d do lol, if you go to real investors and aren’t upfront about the fact that the IP for the product you’re pitching is owned by a parent company, you’d receive an even ruder treatment. This stuff happens, plenty of valid reasons to separate IP from product, but any competent entrepreneur has good reasons and is upfront with those reasons to potential investors. Fact that they had to drag it out of him is sus as fuck.
Another guy (and a bunch of supporters!) that doesn't understand Business or *revenue, vs. profit*; and goes by _Emotion!_ The Sharks are basically like a Pawn Shop, or Sub-Prime Mortgage Co. *But they are honest about the terms!* Creating a Shell Company that _SKIMS part of the profits_ (and he attempted to keep the IP) is *not* what they do! They also offer *Themselves* as Partners & Mentors. Having *a Billionaire* as a Partner and Mentor is worth millions in itself! Try setting up aanufacturing operation, or getting into Target Stores by yourself!
The guy put 2 million of his own money into the business and is in the process of making a 1.9 million sale and the guy wants to offer him $1.5million for the whole thing.
He’s not profiting $1.9 million off of the deal and he would of been recouping $1.5 of his $2 million which is better than not recouping any of his investment he’a put in.
You forget the part that he would still have a 5% royalty on every product sold. If someone else is moving the merchandise, he gets a 1.5mil down payment and royalties in perpetuity.
@@khalid-aaa For every single device the company sells he gets 5% of the selling price. So that $1.9million dollar order...he'll get $95 000 in royalties. The next order...another $95 000. But now, he doesn't have to worry about sales or marketing or manufacturing. Steve does ALL OF THAT since he owns the company 100% So if Steve starts selling the devices in the millions worldwide, he gets 5% of each device sold. That $95 000 can become $950 000 can become $9 500 000, depending on how much Steve Sells
More like he was trying to scam them. A share is part ownership. His pitch was for shares of the product, as in, part ownership of the product. But what he was actually selling was shares of the distribution rights. He literally pitched something that's not for sale. His display should have been a big picture of a leased warehouse and some delivery trucks, since that's what he was actually selling.
Lmao he was the one scamming them, he thinks he spent 2 million creating a device some tech savvy kid could have designed at home for $50, the fact he was willing to sell the whole company for 2million when he was about to make that much from the bus company just proves something isn't right
@@lll2923 let's not forget that the 1.9 million dollars was not going to be net profit, more than likely the man is underwater, and he felt like this would be an easy way to get his head above the water line. When offered 1.5 million for both companies, and for him to counter it 2 million shows that he is trying to make up on his investment. The whole maybe you'll give me a job comment is also strange, that shows that the two million that he would have gotten would have mostly been spent paying off debts.
ebonyboye he’s trying to rip them off, not the other way around. His pitch was centred around a patent, which if they would have zero percent of. The company they’re investing in is a shell company with basically zero assets and practically worthless if not for the $1.9 million order that has yet to be fulfilled. The parent company could renegotiate for 15, 20% if there were no documents in place currently about the exclusive rights. Heck, he could screw them over and create another shell company, go to the us shark tank to do the same pitch with a company called buckle me down.
@@porridgeman on screen said business valuation never said anything about owner the man was about to make a deal so this company will net him far more than 1.5 million hell thats less than the deal he about to make
I thought that was Jennys thing? They should create new version of Shark Tank where Barbara and Jenny competes for the most vain reason to be out, and winner gets a lucrative deal from one the entrepreneurs.
No, I think you misunderstood what occurred. He was offering them a company in which has to license the IP to himself. Owning your own IP is always advantageous to licensing it. With that being said, the real problem occurs in the fact that he is taking 5% off of the company's top-line revenue. There three main reasons why that is a problem. For starters, 5% in the early stages of the company could bleed it for cash. Early companies like his usually have a very short runway, meaning that 5% could very well be the difference between life or death. Secondly, he would be getting a much better deal than them. The Sharks would be more concerned about performance, wherein he would not as he is taking 5% off of the top-line regardless of performance. Lastly, he dictates the licensing fee, which could be the biggest problem yet. In fact, he even stated in the video "at this point, to start off, it's 5%", which indicates that he has considered changing it. He could decide that he wants to renegotiate that licensing agreement to take 50% or 100% and the board would either be left with no patent or no revenue. Nevertheless, it's a very dangerous and sneaky deal that any investor really wouldn't want to be a part of.
Ben Smith depends on how solid the patent is. You could steal the source code, change a few lines and kick the parent company aside. Depends on how ruthless they want to be. But honestly, buckle me up isn’t worth the investment without the IP. The only saving grace is the 1.9million order at the moment which the company could be doing at a loss for all we know
It’s funny because Andrew thinks like them therefore they’re scared to invest because they know at the end of the day Andrew will be making most of the money and they’re not ok with that. However if they were in Andrews shoes, they will most likely do the same thing.
@Qq & @Francesca 1) Wrong about the Revenue, _read the entire article , not the summary._ 2) Oq _doesn't understand the show,_ or business finance. This is = to a _Cash Advance on your Credit Card_ or a _SubPrime Mortgage!_ It's for Businesses w/good products but _on the edge_ of failure, due to low $$, or _too New to get Normal low cost_ financing.. 3) The free publicity, Mentorship, & manufacturing connections they offer are worth (10's of) _Millions of $._
Isn’t it funny how the investors are pissed off that Andrew tried to pull a quick one on them when they are on this show doing that exact thing to entrepreneurs. This guy is going places and he’s going to save lives in the process. Brilliant
@@Alvin-1138 Yeah but they try to get the most gain they can with the least risk possible at the cost of the person who came up with the idea and got it off the ground. They're called sharks for a reason, they're not where they are because they would never take advantage of anyone.
@@kaw628 I didn't say they were nice, or pushovers. Just honest. Creating a shell company but pitching them on the 'donor' Company was disingenuous. When you borrow/solicit money from people who accept high risk they charge more.(Credit Card company vs. Home Equity Loan) That's not taking advantage. You don't get to lie to them and say "well they're charging me high interest, so they're dishonest as well".
The fact is they’re buying the entreprenuers company and needs to pay the licenses from another company in order to roll out and sell the products -> into this Buckle Me Up. It’s fair enough I guess, it’s Shark Tank though. Not charity.
The money spent was from the parent company. He wouldn't even own the IP and who knows how firm the licencing agreement is. Not only that but this guy would still be scimming 5% off the top regardless. I'm shocked Steve even made him such a good offer to begin with.
Horrible assessment of his business. This guy was smart and completely honest when asked questions. These "sharks" got triggered because they knew they were dealing with someone they couldn't take to the cleaners. He has a vested interest in seeing the company succeed for two reasons: 1). He's still would own 90% of the manufacturing company. 2). He owns 100% of the company that owns the patent and is due to receive the royalty. Do they understand how costly and time-consuming it is to get a worldwide patent?
Obviously, they do but it really is ludicrous how they assess him & his business. Honestly they probably just played it up super dramatic because of the T.V. show, still can't believe they didn't want any stake at all due to his "lack of trust".
I mean that may be true but the issue is that this wasn't revealed upfront. This guy was clearly hoping to reel one or a few of these sharks in without ever revealing that the main patent was never part of the negotiation, because you can tell how much the mood shifts in the entire room afterwards.
This is kinda amateur hr in field of big investing. The sharks are likable & sucessful im sure but really AFRAID to take risk. American version far different.
The sharks were pissed because they didnt get to own the product. They are very greedy business people in the long run. Instead of being supportive of how smart of an infrastructure he set up with the business they attacked him for it.
I’m willing to bet he knew of the sharks son, and how he was almost killed in that car accident. He definitely used a little bit of pathos in this presentation
@@bannedcrown3967 The infrastructure of the business is only "smart" in that it gives the guy the power and control to completely screw an investor. Why would an investor be supportive of themselves being screwed?
May I ask an honest question? How do you know if there are sirens coming from an emergency vehicle for example, or a horn honking for potential oncoming danger?
The man said he's got 1 order for 1.9 million dollars. Why would he sell his business for less than what the first order is going to give his business. It makes absolutely no sense.
@@randominternetguy3537 Not to mention all of the overhead costs however minimal and efficient they may be. The business probably netting a couple hundred thousand before paying his other business the royalties. That's assuming that he's running things efficiently.
That’s 1.9 million on his FIRST order not his LAST even if the 1.9 comes out to be way less that’s only his first order he will make more so yes Robert adams was right it makes no business sense 🤦🏾♂️
He "protected himself" so well that it became a very bad deal for an investor and he walked away without any investment. If you want to keep 100% ownership of your IP, don't ask other people for their money.
@@nickwendell9379 not everybody wants to give 50% of there company for 1/10th of the company value. Protected himself. He literally had a 1.9 million deal on the way that was already closed. The first offer should’ve been more than that alone.
@@beans7709 A 1.9 million dollar "deal" does not mean 1.9 million dollars of profit but the main point is that trying to keep the IP is basically just offering nothing and asking for money in return. A waste of everyone's time.
Oh wow thanks for explaining that one problem it can have you know what having seatbelts themselves will make your escape slower let's remove those too
Wow yeah bc they’d only buckle you in a seatbelt if they kidnap you not like tie you up or duct tape you up or tie you down, cuff you, or blindfold you or anything like that nope.
in the US show a lot of the times when one of the investors take 100% of the company, they say the will give the person a job in the compan for at least a set amount of time.
Wrong. He was the one trying to rip them off by holding the IP in a separate company which receives royalties paid by the company he is asking for investment in.
@@aayushkhadka6763 he was just tryna explain to everyone how this investment would be a scam or could be at risk of failing the party of the investor. They pay money for a company that owns nothing.
scam is a deceptive scheme or trick used to cheat someone out of something, especially money. Scam is also a verb meaning to cheat someone in such a way. he did not do this , they questioned licensed activity, this is called due diligence as an investor.
Luckily he didnt make a deal, the sharks were trying to undercut him. He was asking for 390k for 10 percent of the company worth 3.9 million. This is a good deal. The shark was trying to pay him 1.5 million for 100 percent of a company worth 3.9 million. He didnt even go above half of what the company is worth. I actually think the company is successful and has made more then 1.5 million since then.
Because from the pitch itself he's not being transparent, who want to work with a dishonest person? let alone invest in their company? He is as fishy as a fish
The way businesses are set up is and should be for the benefit of the owner, idk why having someone on the show refuse to get screwed made them throw such a fit
Sure, it was a very good way to protect his IP but an absolutely terrible way to try and get investment, which is why he walked out of there with nothing.
The problem is the value was in the patent. His unwillingness to give investors a slice of the company which owned the patent was his downfall. The structure is a great way to protect your ip, but a terrible way to get investors.
Wrong. They said no because they don't want to pay 390k for a 10% ownership stake in a shell company that owns no IP or anything else of value. The fact that you think they should have taken that deal is why they are sitting in those chairs on TV and you are sitting in your bedroom.
@UCrIlwq_l5JScXeD37nkvIEA If you think I'm wrong, let's make a deal. I'll happily take 390k from you in exchange for 10% of a shell company that owns zero IP. Since you think that such a great deal I'm sure you will be happy to pony up the 390k.
He was not upfront about it. He only admitted what he was trying to do after they asked him multiple questions about it. Beeing upfront means you provide the information before people start asking you about it.
It was an interesting experience however the facts were grossly misrepresented as Steve originally offered me $2m plus 5% of revenue for Steve to own the entire company. They edited the 5% rev offer?????
I would've explored selling a majority (say up to 95%) and loosen up on the royalty to some degree, but that's just me and the "facts" are skewed for ratings (not to mention the cutting and chopping of scenes and dramatic reactions) so I can't really know for sure! Good job and good luck expanding upon the application and its potential for the future, and hopefully finding a good partner or two along the way!
"We are here to make deals, not just consider them" - that's bullshit. These 'sharks' say " Deal.. " but it's just hot air. It is not binding & they can walk away whenever they want. The entrepreneurs have to sign waivers, etc., etc.
The business structure of owning two companies; one which owns the intellectual property and licenses it to the other, is not a "tricky structure", it's in fact recommended. I've heard the exact same thing advised in presentations on business legal support. If the customer-facing business dies for whatever reason, you don't lose your rights to the technology you built. The panel here are either unaware of this (which is completely unlikely) or dishonest in pretending to be surprised at the setup. I'd say it's the latter.
The problem is -exacly what you say in your comment - he comes to ask money for his customer-facing business - so if it dies - HE doesnt lose his patent and can make another company. While the sharks lose their investment.
if that company dies he's still losing his 90% of it and any profit it would make for him to take 5%. he'd lose everything but the patent and thats a company that he needed to start by selling his own house. its not like he can just bounce back from that. it doesnt make sense to act like he's tricking them from a safe place when he's still bearing most of the risk.
@@gamongames yeah but he still can start a new company with exlusive rights, or just to sell/rent the patent. He sold his own house... but can get his money back just with the power of the patent alone. While the sharks must trust him that the 400 k they give him will turn profit eventualy. There was a statistic that 3 out of 4 new buisnesses never make it. So its a gamble.
..you realize everything you said about the investors goes 90-10 for him right? having a patent after complete life bankruptcy vs still being a rich investor? really?
@@gamongames So they are rich so fuck em? Their risk of losing money doesnt count? Well, you are rich in comparison with a lot of people in 3rd world countries - invest part of your earnings in some startups in Africa. Im sure you dont care if you lose..lets say 2000 dollars.
Mate I'm not sure what the tax setup is in Oz now, but it used to be that literally all retail companies had to have 2 companies, one was a wholesale company that bought in, and then internally sold to your retail company at zero profit, so you didn't have to pay tax until the retail sales. My point is, the intrinsic thinking is not unique by a long shot.
I’m so happy this guy didn’t take the deal. Business is never all up front, these sharks are just talking for the show. This guy is a real business man.
@Al Bundy Yeah Compared to us Me or You yeah it's fantabulous no doubting that..But coz of having a total Net worth of few Million quids continuosly Being Unable to invest a decent amount and For companies or startups worth more than her whole net wroth Bickering and sighting a shit reason to not invest is Bad. But all compared against other sharks and other shark tanks
he did it the way he did it so that if things went South down the road he could sell buckle me up while still making money off of the product and owning the rights to the product. They're just mad they weren't able to take advantage of him.
10% equity is also called selling, you now see how the number helps people understand how much they are selling, almost as if % equity exists for a reason.
Yes, but check out his webside, it has not been updated for 2 years at least( supported devices are aged )so he probably went under. And social media was also last in 2017
@@CrIMeFiBeR patents do not protect you from "similar products" only the specific unique design characteristics and original intellectual property. It would cost less than $1 for major car makers to add a sensor to the back belt sockets in addition to the front ones. Its a simple double circuit. But, hey, he deserves to make some money for creating a product for which there is a need, especially as a retrofit. I doubt he'll ever be sitting on $1.5M all at once any time soon though... I'd have bitten his hand off. His legacy if it ever went global would be that he helped save lives... like the guy who invented cat's eyes road markings and gave the idea away to the world.
Consider that he already invested 2 million to date, sold his house, received an offer for 1.5 million for the entire company, and then seriously considered it. He's in over his head and just wants an out where he doesn't have to think about numbers anymore.
No he would get 5% over every product until his patient expires. If the company gets really big part of his debt will be paid off but next to that will get a payout for the patent until he dies
@@joshuawiedenbeck6944 If I could get just the profits with none of the work, I would take that deal too, even if the profits were $10. He wanted to sell the company for every dollar he put in then also get 5% of all future sales. If he wants to license out his patent, he is in the wrong place.
@@abonynge He put in most of the work, though lol He invented the damn thing, paid for R&D, sold his house to keep it up. Like you're looking at the final product and going "marketing is the only work that matters" and not taking into account everything else.
"were not here to consider offers were here to make deals" have these sharks ever actually made a deal on here yet? I watched like 20 of these already lmfao
Ikr? Especially like this one, trying to pressure him into doing a deal rather than considering. Imagine trying to make the decision about a multi-million deal while you just stand there?
Mark Cuban actually discussed this in an interview. While we may only see 10 minutes of the pitch, these can go on for up to like 2 hours. Just has to be edited for time and they get the key features in the show.
@@tidritblag9877 no the due diligence phase and all the documentation usually what ends up taking weeks even though the pitches are an hour long. And these millionaire investors don't need months of procrastination to invest a small business worth under a million as theres not much detail to look into as with partnerships with bigger companies.
@@camcruise9600 If "protecting himself" means asking for money to invest in a product but not giving any ownership of that product in return. Why would anyone take that deal? I can't believe you actually think giving someone 380k and not owning any part of the patent in return is a good business deal. You wouldn't last a day in the business world.
@@nickwendell9379 I can see why they want to own the patent, but no, just because they don't own the patent does not mean they don't have a stake in the company. They are putting money to get a return on investment. Not all companies have IP for the products they produce.
@@donramanayake1505 Why would they invest in a company that has to pay royalties to another company owned by the same guy who owns the company you are investing in. Total conflict of interest and misalignment of incentives.
Not gonna lie, this version is not as good as the American version, these sharks are bland and dont really have the best personality Edit: Grammar and spelling, but Kevin from the American version would blow these guys out of the water
I see where you're coming from, but investing in a company, that can get their IP contracts terminated by the owner at any time is a pretty shitty deal if you ask me.
@@snowshoe3274 The owner has no reason to do that, he owns 90% of the other company. The first one is just a way for him to secure a bonus for himself.
I lost all respect for these sharks when they sit and try to corner him about the “structure” of the business. Granted good questions but does he deserve a roast for the structure hell no. Andrew is a smart guy he will be on the beach with out these sharks lol. Thing is they see that no matter what Andrew gets paid he wont have an issue selling anything grow it scale it then sell it and forget about it. At least you made it on TV 🥂🍻 Cheers Mate.
Yes. But can you fault the man for protecting the IPO from sharks - he told them so honestly.. How many patents have been stolen by investors that shore up high equity stakes and take over the company through the small print and contingencies, shells and buyouts, etc.
@@SwampHeatRG You clearly don't. A pyramid scheme is about recruiting new members who pay an upfront cost to pay higher ranked members. This has nothing in common with a pyramid scheme. If anything you may be thinking of a Ponzi Scheme in which you pay off previous investors with new investor's money, the problem is a Ponzi Scheme doesn't work when you give equity as you will eventually run out of equity. As mentioned in the video by the sharks he had built a shell company in which the company they were investing in had no actual assets and could have been dissolved immediately after their investment and he could still manufacture and sell his product without paying them any of the equity they were owed.
Steve said, “Everything to operate it”, when asked if the offer was for the patent-owning company too. Since the buckle company has a worldwide license to the patent, buying just that company would give Steve “everything needed to operate it”. Steve did not say, “Yes, both companies”.
Most cars have something superior to this already build in today. Even back then a lot of cars had sensors that would tell you if somebody is unbuckled.
For those that don’t get why the sharks are hesitant: with it being a licensed patent; there’s nothing stoping the parent company from pulling the license and selling it to another company for more value down the line. The inventor went into there for money to get his numbers up (more money = more manufacturing/ sales = more of a household name). Once a item becomes a household name he could pull the patent from the child company with the royalty investments and put it into another company that all profits go to him. The child company would have no right to use the patent then which means no money for the sharks, but the inventor would still be making money off the patents.
A license agreement would be for a certain period of time with various stipulations, including exclusivity and other provisions. The parent company could not simply walk away with the patent or just sell it to someone else. The sharks disliked that he would be generating revenue from the royalty regardless of whether the company was losing money overall or not.
“I answered as honestly as I can” = I left a few vital pieces of information out. One of those guys who makes you feel uneasy the moment the presentation starts.
Vehicles already have integrated sensors for the front belts. Easy enough for the OEMs to add the same feature to the rear seats and report directly on the gauge cluster, just like a door ajar. It might cost them upwards of $1.63 / seat using the existing CANbus network, no BT, no phone, no driver distraction. Sidenote: nobody asked how often you have to replace the batteries in every bluetooth unit... or what happens if you don't.
If the bluetooth unit is dead, there are several things it could do - show the seat as greyed out, show the seat as red, give a low battery warning, not show that seat at all, etc. What it probably wouldn't do is continue showing that seat as green, which is the only situation where it potentially becomes dangerous.
@@leotamer5 The device actually portraits seats not used as ok (meaning green). So if they get no readings from the sensors that somebody is sitting in the back they will register those seats as green. Not sure if they fixed that, but that is how the first edition was, when a friend of mine got one for his old car that did not have build in sensors (like every car nowadys has)
This guy was honest, respectful, and polite, the sharks are upset because he kept himself safe and made sure he was always gonna make money. There was no reason for them to get as agitated as they did
@@AJ42069 no because it would do that same thing but with a different system. If I design a revolutionary ice cream maker I can patent it but it doesn't mean no one else can make other designs. That's why apple can patent phone parts but Google can still make phones. They do the same thing but differently.
@@AJ42069 It doesn't matter about his patents because if it becomes a required standard, manufactures will just integrate it the same way they do for the front seats. No need to add a whole new wireless system.
They are getting mad for doing what they would do to protect themselves. But why get mad? Just negotiate with him for a % of the IP. I mean if you you really want to make a deal.
Good for him, he was all in with his house. Totally respect entrepreneurs like him who bet everything into an idea they're passionate about. A good entrepreneur is willing to die and lose everything for their company.
That's balls. Think about it. What makes you think he only got 1 house? We assumed he only has one house. He mentioned worrying about risks. Don't you think he is more capable of that.
I respect him doing that but you don’t mortgage the roof over your head no matter how much you believe in the dream always make sure home is taken care of
The story of his kid falling out of the car happened to me too. I fell out of the car when I was five. Passenger door somehow opened up when I was leaning on it. I fell onto the highway. The back wheel ran over my leg and a passing jeep barely missed me.
I don’t understand the “we’re losing money” shtick. If they get a 10% owner equity in the company then they get 10% of ALL profits. Dude only gets 5 due to royalty. so they’re still screwing him. They’re all billionaires, 390k is nothing to them
Dude gets 5% from sales not profit then again gets 90% from the profit sharing. This guy is being super greedy which isn’t wrong per se but $390k for 10% and you have to pay royalties is too much. But the counter offer is definitely great for the investors even if they have to pay royalties.
@@adityadrinkswater8087 the investors aren’t having to pay the royalties though, the company is. So their 10% goes to them as a business expense. 5% of the sales goes to the IP owner, etc. why would they have to pay royalties too, it just doesn’t make sense. They don’t own the whole company, they have a 10% equity in it which entitles them to 10% of profits, it doesn’t make them liable for losses
@@drummerboy81000 Their 10% decreases because of the 5% they have to pay. Note that the 5% is paid from sales which means that 5% could be higher than their 10%. The problem here is the patent holder is the guy with 90% of the company which makes it look like he isnt confident in his company or depicts the image to it’s investors that the risk is solely on them.
The issue is the company there investing in doesnt actualy own any of the tech for this product so if it went under they would be out all the money and this guy would still own the tech and could take it and sell it off for himself without giving them squat.
He secured his “skin in the game” in the IP company and offers the sharks to put their “skin in the game” in another company that has a license to sell his product. This appears to be a common theme on shark tank Australia and I applaud their due diligence. However the fact that he got an offer to buy 100% of his company is disturbing to me. But I am still laughing at the part where he asked to have a job at the company that would get bought out.
@Cameron Sole he didn't make 2 mil from any bus company. And even if he didn't, it's revenue, not profit. So minus all the overheads - manufacturing, end - he'd probably be left with under 1 million.
Lol the guy spend $2 million and a bus company just buy their products worth $1.9M And steve want to buy the whole company for $1.5 Million Even a 5 year old would not fall for that
@@juan125873a When did i say it is also a 1.9 revenue All i want to point out that if someone buys a product worth the same as tge money u spend on ur company that means it is worth alot more than that Considering he will probably will het a profit of 20% in that 1.9
@@umyes4944 but he told them! If they wouldve made a deal then later discovered that would be omission. Honestly, this whole thing was a joke. Offering him 1.5 for 100% when the guy already put 2 million in, now that's disrespectful. I wouldnt want to be any of their partners
Surprised none of them simply asked him if he'd be willing to transfer the IP into the company. They could have done a smart deal whereby his $2million gets paid back and the IP becomes a company asset.
Get paid if he owned a patent that would require the government to use his tech over another company that has copied it tho, his idea was good, just a little too late
@@amandalee4735 his tech involved bluetooth...car companies would simply hardwire the back seatbelts like they already do with the front ones. so his patend has no effect
Sell a company for 1.5mio,and set a royalty to 5-10% per net profit of a piece sold. You still own a patent and the rights of it, without any hustle needed.
@BS Handle Created Yes but that's just the show being edited. It stands to reason he would not buy a shell company for $1.5M, when the IP was held by a holding company and he has to pay royalties to it. Indeed he did say he was offering to buy 'everything he needs to run this operation himself', which would include the IP. The value is mostly in the patents after all. My guess is Steve was not planning on taking this business any further, and would just take the patent and then approach high end car manufacturers like BMW, Merc and Bentley, to leverage the patent. He could quite easily make his money back with a lot of profit from that alone, without having to waste time manufacturing and selling these retro-fitted bits of plastic
@BS Handle Created Ok, I guess we will just have to disagree. A lot of the deals agreed on camera never actually reach fruition anyway, after due diligence. They also edit out important details which viewers might find boring. For example he claimed to have a $1.9M order, and it's inconceivable the Sharks would make any sort of decision without first asking to see a concrete purchase order for this... but it makes for boring viewing so it gets chopped.
From pre school to high school. All the buses I rode on had no seat belts or air conditioning. Only the kids in subdivisions got air-conditioned busses with tinted windows.
I'd love to see this product go on the American shark tank. I feel this would have played out way differently because of how they actually handle their own businesses and the risk they are willing to take.
I love how the Sharks got offended at exactly what they do
Hahahaha I know! It’s pathetic
😂😂 so true!
Absolutely not what they’d do lol, if you go to real investors and aren’t upfront about the fact that the IP for the product you’re pitching is owned by a parent company, you’d receive an even ruder treatment.
This stuff happens, plenty of valid reasons to separate IP from product, but any competent entrepreneur has good reasons and is upfront with those reasons to potential investors.
Fact that they had to drag it out of him is sus as fuck.
@@upliftstv he went clean on the first pitch so.. 😁 hence why every company has its due diligence dept.
Another guy (and a bunch of supporters!) that doesn't understand Business or *revenue, vs. profit*; and goes by _Emotion!_
The Sharks are basically like a Pawn Shop, or Sub-Prime Mortgage Co. *But they are honest about the terms!*
Creating a Shell Company that _SKIMS part of the profits_ (and he attempted to keep the IP) is *not* what they do!
They also offer *Themselves* as Partners & Mentors. Having *a Billionaire* as a Partner and Mentor is worth millions in itself! Try setting up aanufacturing operation, or getting into Target Stores by yourself!
Entrepreneur:
"Good evening"
All sharks:
*takes notes violently*
lmao
First impression
Cesar Perez L.M.A.O. that’s close to the funniest thing i’ve ever heard
Jalen Perry you must not hear very many things.... not only did you not hear it. You read it. You sir are very silly.
Geo Vani nerd
The guy put 2 million of his own money into the business and is in the process of making a 1.9 million sale and the guy wants to offer him $1.5million for the whole thing.
And he would have sold it for 2 million, so there's something wrong here
He’s not profiting $1.9 million off of the deal and he would of been recouping $1.5 of his $2 million which is better than not recouping any of his investment he’a put in.
You forget the part that he would still have a 5% royalty on every product sold.
If someone else is moving the merchandise, he gets a 1.5mil down payment and royalties in perpetuity.
Leon Njuguna what does 5% royalty mean ?
@@khalid-aaa For every single device the company sells he gets 5% of the selling price.
So that $1.9million dollar order...he'll get $95 000 in royalties.
The next order...another $95 000.
But now, he doesn't have to worry about sales or marketing or manufacturing. Steve does ALL OF THAT since he owns the company 100%
So if Steve starts selling the devices in the millions worldwide, he gets 5% of each device sold.
That $95 000 can become $950 000 can become $9 500 000, depending on how much Steve Sells
“Fuck he’s too smart to scam” I’m out
More like he was trying to scam them. A share is part ownership. His pitch was for shares of the product, as in, part ownership of the product. But what he was actually selling was shares of the distribution rights. He literally pitched something that's not for sale. His display should have been a big picture of a leased warehouse and some delivery trucks, since that's what he was actually selling.
but he had a 1.9m dollar deal coming up so it didnt make any sense to take it
Lmao he was the one scamming them, he thinks he spent 2 million creating a device some tech savvy kid could have designed at home for $50, the fact he was willing to sell the whole company for 2million when he was about to make that much from the bus company just proves something isn't right
@@lll2923 let's not forget that the 1.9 million dollars was not going to be net profit, more than likely the man is underwater, and he felt like this would be an easy way to get his head above the water line. When offered 1.5 million for both companies, and for him to counter it 2 million shows that he is trying to make up on his investment.
The whole maybe you'll give me a job comment is also strange, that shows that the two million that he would have gotten would have mostly been spent paying off debts.
@@catsrule256 thats not profit
Basically all the sharks....I'm out because the guy pitching has a smart sense of business and can't get ripped off
ebonyboye he’s trying to rip them off, not the other way around. His pitch was centred around a patent, which if they would have zero percent of. The company they’re investing in is a shell company with basically zero assets and practically worthless if not for the $1.9 million order that has yet to be fulfilled. The parent company could renegotiate for 15, 20% if there were no documents in place currently about the exclusive rights. Heck, he could screw them over and create another shell company, go to the us shark tank to do the same pitch with a company called buckle me down.
@@porridgeman the business valuation is 3.9 Million accepting 1.5 is stupid
@@KOSFaulty Valued by who? The owner? He was ready to take 2million including the parent company. There's no way it's worth 3.9 million
yan de that’s when I knew for sure it was sketchy
@@porridgeman on screen said business valuation never said anything about owner the man was about to make a deal so this company will net him far more than 1.5 million hell thats less than the deal he about to make
Barbara: I’m not in this country or in this episode, so for that reason, I’m out
Best comment ever 😂 i said it in her voice too
Lmfao wtf 😭😭😭
😂😂😂
I thought that was Jennys thing? They should create new version of Shark Tank where Barbara and Jenny competes for the most vain reason to be out, and winner gets a lucrative deal from one the entrepreneurs.
😂😂 typical Barbara and her CVC
They are just mad because he had all his shit together and they couldn’t own anything
yeah nothing wrong with what he did, these fucks do the same thing all day.
Yea they knew they couldn’t shaft him
Of course. They are capitalist pigs.
No, I think you misunderstood what occurred. He was offering them a company in which has to license the IP to himself. Owning your own IP is always advantageous to licensing it. With that being said, the real problem occurs in the fact that he is taking 5% off of the company's top-line revenue. There three main reasons why that is a problem. For starters, 5% in the early stages of the company could bleed it for cash. Early companies like his usually have a very short runway, meaning that 5% could very well be the difference between life or death. Secondly, he would be getting a much better deal than them. The Sharks would be more concerned about performance, wherein he would not as he is taking 5% off of the top-line regardless of performance. Lastly, he dictates the licensing fee, which could be the biggest problem yet. In fact, he even stated in the video "at this point, to start off, it's 5%", which indicates that he has considered changing it. He could decide that he wants to renegotiate that licensing agreement to take 50% or 100% and the board would either be left with no patent or no revenue.
Nevertheless, it's a very dangerous and sneaky deal that any investor really wouldn't want to be a part of.
Ben Smith depends on how solid the patent is. You could steal the source code, change a few lines and kick the parent company aside. Depends on how ruthless they want to be. But honestly, buckle me up isn’t worth the investment without the IP. The only saving grace is the 1.9million order at the moment which the company could be doing at a loss for all we know
It’s funny because Andrew thinks like them therefore they’re scared to invest because they know at the end of the day Andrew will be making most of the money and they’re not ok with that. However if they were in Andrews shoes, they will most likely do the same thing.
This was effectively a pyramid scheme deal
@@SwampHeatRG all business is.
Somebody that’s fucking smart thank you, this show is all a scam it’s all about them making the most money!!
@@ZzirFamo-qp1qn cry more poorling
@@SwampHeatRG What? This isn't a pyramid scheme at all.
His company has made 67 million in a year. This guy is smart for not falling to the shark schemes
Proof?
@@unpopularfacts4461 just look it up
@@francescagolden1061 tried to, didn't see nothing. Calling BS til proof
@Qq & @Francesca 1) Wrong about the Revenue, _read the entire article , not the summary._
2) Oq _doesn't understand the show,_ or business finance. This is = to a _Cash Advance on your Credit Card_ or a _SubPrime Mortgage!_ It's for Businesses w/good products but _on the edge_ of failure, due to low $$, or _too New to get Normal low cost_ financing..
3) The free publicity, Mentorship, & manufacturing connections they offer are worth (10's of) _Millions of $._
In 2019 the estimated revenue of the company was $67 million according to Forbes
Isn’t it funny how the investors are pissed off that Andrew tried to pull a quick one on them when they are on this show doing that exact thing to entrepreneurs. This guy is going places and he’s going to save lives in the process. Brilliant
They are open and honest.
They are in effect a Payday Loan or SubPrime loan for Business. That's not 'pulling a fast one'.
@@Alvin-1138 Yeah but they try to get the most gain they can with the least risk possible at the cost of the person who came up with the idea and got it off the ground. They're called sharks for a reason, they're not where they are because they would never take advantage of anyone.
@@kaw628 I didn't say they were nice, or pushovers. Just honest.
Creating a shell company but pitching them on the 'donor' Company was disingenuous.
When you borrow/solicit money from people who accept high risk they charge more.(Credit Card company vs. Home Equity Loan) That's not taking advantage. You don't get to lie to them and say "well they're charging me high interest, so they're dishonest as well".
Saving people who should've been taken by natural selection ;)
@@kaw628 What are you talking about? The businesses are basically begging the sharks to buy their businesses. How is that a scam?
Him: “I’ve put $2 million into this and a lot of time.”
Shark: “I’ll buy you out for $1.5 million.”
And also an existing order of 1.9 million.
The fact is they’re buying the entreprenuers company and needs to pay the licenses from another company in order to roll out and sell the products -> into this Buckle Me Up. It’s fair enough I guess, it’s Shark Tank though. Not charity.
The money spent was from the parent company. He wouldn't even own the IP and who knows how firm the licencing agreement is. Not only that but this guy would still be scimming 5% off the top regardless. I'm shocked Steve even made him such a good offer to begin with.
Figgy Newton the 1.5 million for everything,including the ip.
@@louiscyfer6944 if his business is going very well , no wonder why would he consider selling his company for $2m
Horrible assessment of his business. This guy was smart and completely honest when asked questions. These "sharks" got triggered because they knew they were dealing with someone they couldn't take to the cleaners. He has a vested interest in seeing the company succeed for two reasons: 1). He's still would own 90% of the manufacturing company. 2). He owns 100% of the company that owns the patent and is due to receive the royalty. Do they understand how costly and time-consuming it is to get a worldwide patent?
Obviously, they do but it really is ludicrous how they assess him & his business. Honestly they probably just played it up super dramatic because of the T.V. show, still can't believe they didn't want any stake at all due to his "lack of trust".
@@Hachiimane but to be fair person judgment he looks like a person that would do me wrong in the end
I mean that may be true but the issue is that this wasn't revealed upfront. This guy was clearly hoping to reel one or a few of these sharks in without ever revealing that the main patent was never part of the negotiation, because you can tell how much the mood shifts in the entire room afterwards.
This is kinda amateur hr in field of big investing. The sharks are likable & sucessful im sure but really AFRAID to take risk. American version far different.
2 words. PYRAMID. SCHEME.
This guy is going places. He’s low key smarter than the sharks. Almost got em 😂
The sharks were pissed because they didnt get to own the product. They are very greedy business people in the long run. Instead of being supportive of how smart of an infrastructure he set up with the business they attacked him for it.
I’m willing to bet he knew of the sharks son, and how he was almost killed in that car accident. He definitely used a little bit of pathos in this presentation
Lowkey the sharks clicked on
@@bannedcrown3967 The infrastructure of the business is only "smart" in that it gives the guy the power and control to completely screw an investor. Why would an investor be supportive of themselves being screwed?
Yeah, so smart that he walked out of there without any of their money. Absolute genius.
either way he got what he came for. free advertising for his product
It’s not free but yes he got advertisement
@@druminjames119 not free?
Bob they would have to give a royalty or equity stake to producers to be on the show but nvm they stopped having that requirement
James Yeah because of Mark Cuban. He put that crap down the drain real fast.
@@Fireman12402 care to explain? I mean paying royalty just to be on the show? That's pretty fucking dumb to me thank god it got taken down.
Good for deaf parents too. Id never hear them unbuckling.
There is a sign too.
bmayenco thats what hes saying u dumb boi
May I ask an honest question? How do you know if there are sirens coming from an emergency vehicle for example, or a horn honking for potential oncoming danger?
If you're deaf you shouldn't be driving... So your comment is irrelevant
@@cwgzz81 Say that again, I didn't hear you. Something about diving with a relative?
The man said he's got 1 order for 1.9 million dollars. Why would he sell his business for less than what the first order is going to give his business. It makes absolutely no sense.
because the actual net profit could be a very small on that 1.9 million
You have to subtract the cost of making, shipping, and maintaining them.
@@randominternetguy3537 Not to mention all of the overhead costs however minimal and efficient they may be. The business probably netting a couple hundred thousand before paying his other business the royalties. That's assuming that he's running things efficiently.
That’s 1.9 million on his FIRST order not his LAST even if the 1.9 comes out to be way less that’s only his first order he will make more so yes Robert adams was right it makes no business sense 🤦🏾♂️
Plus he clearly said he put 2 million into the business which would be the cost of everything so the 1.9 would be profit
Digging at him for having a "tricky" business structure, he wasn't dishonest he protected himself
He "protected himself" so well that it became a very bad deal for an investor and he walked away without any investment.
If you want to keep 100% ownership of your IP, don't ask other people for their money.
Yes he "protects himself" from getting investments
@@GinEric84 and from getting scammed by the sharks into getting a shitty deal
@@nickwendell9379 not everybody wants to give 50% of there company for 1/10th of the company value. Protected himself.
He literally had a 1.9 million deal on the way that was already closed. The first offer should’ve been more than that alone.
@@beans7709 A 1.9 million dollar "deal" does not mean 1.9 million dollars of profit but the main point is that trying to keep the IP is basically just offering nothing and asking for money in return. A waste of everyone's time.
Imagine getting kidnapped and trying to escape and the kidnapper's phone suddenly alerts them that you've undone your seatbelt
Oh wow thanks for explaining that one problem it can have you know what having seatbelts themselves will make your escape slower let's remove those too
Dang I didn't think of that
Wow yeah bc they’d only buckle you in a seatbelt if they kidnap you not like tie you up or duct tape you up or tie you down, cuff you, or blindfold you or anything like that nope.
Yeah that’s a huge issue
4d chess
Shark Tank already exists.
Shouldn’t this show be called
Dingo Cage.
In Germany it´s called Höhle der Löwen (engl. Cave of the lions) ;)
At least they don’t make the entrepreneurs drag their collection of junk up the stairs, like that goofy Dragon’s Den.
@@Schalalai in Denmark it is also called Lions Den or Cave of the lion
lmao too funny
@@MrJamberee they've got an elevator now 😂
Looks like the shark didn’t take that “he might even give me a job” joke too well lol
He was like "I would never hire someone like you" 😂😂😂
I thought it was a funny joke but my gosh that was a tough audience
@@lauraeliza1997 haha true😂
in the US show a lot of the times when one of the investors take 100% of the company, they say the will give the person a job in the compan for at least a set amount of time.
"I cant rip you off" I'm out
Wrong. He was the one trying to rip them off by holding the IP in a separate company which receives royalties paid by the company he is asking for investment in.
@@nickwendell9379 lol again 😂😂 you ain't got any work. Man?
@@aayushkhadka6763 he was just tryna explain to everyone how this investment would be a scam or could be at risk of failing the party of the investor.
They pay money for a company that owns nothing.
@@nickwendell9379 what in heavens name are you talking about
scam is a deceptive scheme or trick used to cheat someone out of something, especially money. Scam is also a verb meaning to cheat someone in such a way. he did not do this , they questioned licensed activity, this is called due diligence as an investor.
I felt so bad for him when he said “
And you might even give me a job” and just realised that no one wanted to work with him
I know he seems like such a nice guy
Luckily he didnt make a deal, the sharks were trying to undercut him. He was asking for 390k for 10 percent of the company worth 3.9 million. This is a good deal. The shark was trying to pay him 1.5 million for 100 percent of a company worth 3.9 million. He didnt even go above half of what the company is worth. I actually think the company is successful and has made more then 1.5 million since then.
Braden Jackson you realise he’s the one who valued it not the company itself
If it was the US version, they would buy the company and make him a full time employee, hes the expert. They have done it before. I hope he succeeds.
Because from the pitch itself he's not being transparent, who want to work with a dishonest person? let alone invest in their company? He is as fishy as a fish
That structure was extremely smart to protect himself. God forbid.
funnily enough this is the exact kind of people he was trying to protect himself from, he just didn’t know it until he went on
You know the sharks would choose a structure like that for themselves, but can't stand it when regular people work that way.
The way businesses are set up is and should be for the benefit of the owner, idk why having someone on the show refuse to get screwed made them throw such a fit
Sure, it was a very good way to protect his IP but an absolutely terrible way to try and get investment, which is why he walked out of there with nothing.
The problem is the value was in the patent. His unwillingness to give investors a slice of the company which owned the patent was his downfall.
The structure is a great way to protect your ip, but a terrible way to get investors.
They're just salty that he wasn't dumb enough to let them take advantage of him.
By avoiding a pyramid scheme? Lmao
@@SwampHeatRG you don't even know what a pyramid scheme is, do you
@@SwampHeatRG pyramid scheme??? you just learn a buzzword but not the definition, aye?
No they are salty because he wanted to take advantage of them.
They all said no because they can’t scam him for money
Wrong. They said no because they don't want to pay 390k for a 10% ownership stake in a shell company that owns no IP or anything else of value.
The fact that you think they should have taken that deal is why they are sitting in those chairs on TV and you are sitting in your bedroom.
@UCrIlwq_l5JScXeD37nkvIEA If you think I'm wrong, let's make a deal.
I'll happily take 390k from you in exchange for 10% of a shell company that owns zero IP. Since you think that such a great deal I'm sure you will be happy to pony up the 390k.
Nick Wendell stfu it’s a joke but I guess that flew over your simple minded head
Nick Wendell STFU ITS JUST A SCAM SHOW DAM
@@Tempvo There was no joke. You honestly think he was offering them a great deal.
Bru he was being brutally honest with them like wtf there was sign of dishonesty
He just wanted to make some money back and they were getting triggered
That is because he is playing their game at their playground and he is winning
What
@@user-lm4sl7rb2w it's not shady a lot of businesses have this type of business structures. He just wants to protect his IP
Well Que It’s business. You work with people with far worse ethics than wanting to protect their intellectual property.
Are you kidding me. 2 million in development?!?! It’s an app with a bluetooth sensor.
You can get small door alarms that do something similar then that and app looked to be quite delayed
Its the patent that is worth the money, not the tech
azorah see you understand business
@@azorah3986 patents dont cost that much
@@CheesyTornado when you have a patent for something good its priceless
I’m in automotive and a fellow inventor. This guy is genius. Don’t sell anything brother.
Fast forward he gained connects from Toyota and Tesla
@@dinerodoonies3674 how do yk🤔
@@dinerodoonies3674 did he? Show me. Prove it actually
@@kap1526 im pretty sure it was a hypothetical. As to say that his product is so good and the sharks missed a great opportunity
He makes sure he gets paid no matter what the sharks are pissed because that's what they would do to him 😂
He was trying to have them invest in a company that owns nothing so they get nothing from investing
The value is in the patent. To invest and not have a stake in the company that owns the patent is stupid.
Respect to Andrew, if he values his company at 3.9mil he shouldn't be taking just 2M for 100%.
He literally asked for $2M for 100%…
@@jobeporter1288 edited
But he was about to take that 2 million, quick as fuck lol. He knew his numbers were off
@Jalopezlag stop spreading lies it's only valued at $1m as of 2021
@@KGR4NT well some sites says its 30,20 million some says its 1
He was transparent & upfront, he didn’t hide anything, he answered all the questions
When you sell a used car, and I have to ask you if the engine is sold separately, this is not honesty. This is you trying to trick me.
He was not upfront about it.
He only admitted what he was trying to do after they asked him multiple questions about it.
Beeing upfront means you provide the information before people start asking you about it.
It was an interesting experience however the facts were grossly misrepresented as Steve originally offered me $2m plus 5% of revenue for Steve to own the entire company. They edited the 5% rev offer?????
The best decision here was to refuse. Kudos to you
You made the right decision here. Best of luck with your business.
I would've explored selling a majority (say up to 95%) and loosen up on the royalty to some degree, but that's just me and the "facts" are skewed for ratings (not to mention the cutting and chopping of scenes and dramatic reactions) so I can't really know for sure! Good job and good luck expanding upon the application and its potential for the future, and hopefully finding a good partner or two along the way!
If you have the full video, post it. Also post videos regarding how to safe guard ourselves in such deals. As you did by making a parent company.
Andrew what’s happening with your company today? I’ve gone on all your social media pages you haven’t posted anything for 4 years ?
"We are here to make deals, not just consider them" - that's bullshit. These 'sharks' say " Deal.. " but it's just hot air. It is not binding & they can walk away whenever they want. The entrepreneurs have to sign waivers, etc., etc.
This guy and the sharks are on the same level.
All sharp , cut throat and shifty.
This guy aint stupid !
These guys seem so scummy. He’s being honest and I think it’s fair to separate the IP.
If he is smart how are they going to scam him, thats why they are out
zXTheFoxXz the problem is he can easily scam the by making another shell company
Bruh Bruhhh sharks probably have shell companies themselves
@@vzbm3515 Theres nothing wrong with a shell company if you say outright that it is when looking for an investment
Bruh Bruhhh didn’t say anything about it being wrong just saying they probably have them themselves
The business structure of owning two companies; one which owns the intellectual property and licenses it to the other, is not a "tricky structure", it's in fact recommended. I've heard the exact same thing advised in presentations on business legal support. If the customer-facing business dies for whatever reason, you don't lose your rights to the technology you built.
The panel here are either unaware of this (which is completely unlikely) or dishonest in pretending to be surprised at the setup. I'd say it's the latter.
The problem is -exacly what you say in your comment - he comes to ask money for his customer-facing business - so if it dies - HE doesnt lose his patent and can make another company. While the sharks lose their investment.
if that company dies he's still losing his 90% of it and any profit it would make for him to take 5%. he'd lose everything but the patent and thats a company that he needed to start by selling his own house. its not like he can just bounce back from that.
it doesnt make sense to act like he's tricking them from a safe place when he's still bearing most of the risk.
@@gamongames yeah but he still can start a new company with exlusive rights, or just to sell/rent the patent. He sold his own house... but can get his money back just with the power of the patent alone.
While the sharks must trust him that the 400 k they give him will turn profit eventualy. There was a statistic that 3 out of 4 new buisnesses never make it. So its a gamble.
..you realize everything you said about the investors goes 90-10 for him right?
having a patent after complete life bankruptcy vs still being a rich investor? really?
@@gamongames So they are rich so fuck em? Their risk of losing money doesnt count? Well, you are rich in comparison with a lot of people in 3rd world countries - invest part of your earnings in some startups in Africa. Im sure you dont care if you lose..lets say 2000 dollars.
Guy is pretty smart for having another licensing the product from his other company
How is that smart? It basically guarantees that no rational investor will give you any money.
Smart to protect his IP, but the value is in the patent. You can't get an investment if you aren't willing to give the investors value.
Mate I'm not sure what the tax setup is in Oz now, but it used to be that literally all retail companies had to have 2 companies, one was a wholesale company that bought in, and then internally sold to your retail company at zero profit, so you didn't have to pay tax until the retail sales.
My point is, the intrinsic thinking is not unique by a long shot.
I’m so happy this guy didn’t take the deal. Business is never all up front, these sharks are just talking for the show. This guy is a real business man.
I love how Steve looks disgusted every time Naomi opens her mouth.
We are all Steve
Isn't She also one of the worst sharks out there with the least Worth and the least innovative business or value in any of them
Dude, all these facial expressions are edited in, this show is far from being linear, it's all cut and paste
@Al Bundy Yeah Compared to us Me or You yeah it's fantabulous no doubting that..But coz of having a total Net worth of few Million quids continuosly Being Unable to invest a decent amount and For companies or startups worth more than her whole net wroth Bickering and sighting a shit reason to not invest is Bad.
But all compared against other sharks and other shark tanks
They’re both assholes to be honest.
he did it the way he did it so that if things went South down the road he could sell buckle me up while still making money off of the product and owning the rights to the product. They're just mad they weren't able to take advantage of him.
Read the definition of pyramid scheme
@@SwampHeatRG thats not it.
@@SwampHeatRG you're a dumbass, it's not a pyramid scheme
@@SwampHeatRG not a pyramid scheme
I love this.... as a blind driver... I struggle with knowing if they unbuckled or not. Now I can drive in peace!
u are not blind. u are brainless
Jason Chow ‘tis the joke good sir!
Jason Chow alright whoosh gang! Let’s get him! I’ll start. r/whoooosh
Jason Chow welcome to the joke
@@JasonChowTV Woosh!!!
100% equity?
Isn’t that called selling?
He was handing over his company!
USS Trekky well not if he’s paying
duh...u dumb?
@@JasonChowTV explain then
10% equity is also called selling, you now see how the number helps people understand how much they are selling, almost as if % equity exists for a reason.
I like when people are dismissed, come back, and rub it in the shark's faces.
Ikr
Yes, but check out his webside, it has not been updated for 2 years at least( supported devices are aged )so he probably went under. And social media was also last in 2017
CrIMeFiBeR One of the sharks probably made a similar product to put him out of business
@@owenlackey4407 that is why patents exist, to prevent it so highly unlikely. But more and more cars include it by default
@@CrIMeFiBeR patents do not protect you from "similar products" only the specific unique design characteristics and original intellectual property. It would cost less than $1 for major car makers to add a sensor to the back belt sockets in addition to the front ones. Its a simple double circuit.
But, hey, he deserves to make some money for creating a product for which there is a need, especially as a retrofit. I doubt he'll ever be sitting on $1.5M all at once any time soon though... I'd have bitten his hand off. His legacy if it ever went global would be that he helped save lives... like the guy who invented cat's eyes road markings and gave the idea away to the world.
Consider that he already invested 2 million to date, sold his house, received an offer for 1.5 million for the entire company, and then seriously considered it. He's in over his head and just wants an out where he doesn't have to think about numbers anymore.
No he would get 5% over every product until his patient expires. If the company gets really big part of his debt will be paid off but next to that will get a payout for the patent until he dies
@@abram7716 Right, my point was more he doesn't want his business anymore. He just wants the profits.
@@joshuawiedenbeck6944 If I could get just the profits with none of the work, I would take that deal too, even if the profits were $10. He wanted to sell the company for every dollar he put in then also get 5% of all future sales. If he wants to license out his patent, he is in the wrong place.
@@abonynge He put in most of the work, though lol
He invented the damn thing, paid for R&D, sold his house to keep it up.
Like you're looking at the final product and going "marketing is the only work that matters" and not taking into account everything else.
@@KingNefiiria Yeah I had to have been drunk when I wrote that or something
"were not here to consider offers were here to make deals"
have these sharks ever actually made a deal on here yet? I watched like 20 of these already lmfao
Ikr? Especially like this one, trying to pressure him into doing a deal rather than considering. Imagine trying to make the decision about a multi-million deal while you just stand there?
Exactly! How do we make a deal if I’m not allowed to consider your offer???? Yeah get back in your box!!!!
They usually offer really bad deals. Stuff that nobody in their right minds would accept
@@rajeshthebeast9487 just so they can say they made a offer and the show doesnt look like a complete waste of time
I cannot stand that woman and her crap red dress. The person presenting has the right to consider offers. Smart ass comment
Americans call it Pat tents. They call it PAY tents
RockstarFlipper
brits be like “they’re not called chips mate, they’re called jellyfloppingwallopcrisps, GET IT FOCKING RIGHT”
Ask yourself where English originated from, ever wondered?
Of course because you need to pay something to register em, patting someone doesn't get you anything
@@joemamma8104 you realise they’re Australian right?
@@dg9444 did you know that Australia used to be where the UK would send prisoners. So technically they’re British blood.
Who else hates the new comments system? 🙋♂️
Yeah I don't get it...
Yeah why did they even change it?
Christopher Roskam i guess so that we won’t have to scroll past the video suggestions
just shut up
At first it sucked but now it’s actually better
“That’s not how business works” on a show about investing after a 3 minute presentation.
Mark Cuban actually discussed this in an interview. While we may only see 10 minutes of the pitch, these can go on for up to like 2 hours. Just has to be edited for time and they get the key features in the show.
@@AlwaysWright42 you do realize that these sorts of transactions usually last weeks, right? Even if it’s a full day it’s still crazy.
@@tidritblag9877 no the due diligence phase and all the documentation usually what ends up taking weeks even though the pitches are an hour long. And these millionaire investors don't need months of procrastination to invest a small business worth under a million as theres not much detail to look into as with partnerships with bigger companies.
Thats how it works on a staged show bud 👏 . They fooled us once again 🤣
@@jasonbender2459 The deals aren't signed there and then. Agreeing to a deal on air doesn't always lead to it actually being signed as well.
He’s smart protecting himself from sharks!!!
I’m sure they all have shell companies 😀
Yeah, he is so smart that he walked out of there without a deal, total business genius!
Nick Wendell yes he is. They tried to finesse him for protecting himself like most companies do!
@@camcruise9600 If "protecting himself" means asking for money to invest in a product but not giving any ownership of that product in return. Why would anyone take that deal?
I can't believe you actually think giving someone 380k and not owning any part of the patent in return is a good business deal. You wouldn't last a day in the business world.
@@nickwendell9379 I can see why they want to own the patent, but no, just because they don't own the patent does not mean they don't have a stake in the company. They are putting money to get a return on investment. Not all companies have IP for the products they produce.
@@donramanayake1505 Why would they invest in a company that has to pay royalties to another company owned by the same guy who owns the company you are investing in. Total conflict of interest and misalignment of incentives.
Last time I was this early, Steve wasn’t asking where people were from
Why shouldn't he have 5%, he invented the damn thing! He's too smart to be scammed by the sharks!
bc he already owns 90%? yall are fucking dense
"Sohr we dohrn't ohrn the paitent?"
Most underrated comment
@@bcarl7953 so true
They got a taste of their own medicine
Not gonna lie, this version is not as good as the American version, these sharks are bland and dont really have the best personality
Edit: Grammar and spelling, but Kevin from the American version would blow these guys out of the water
facts
Fo sho
Lil Lost dragons den is easily last place lol
Dragons den the UK version is so much better than both.
Jake Z fr
If you get such an offer, refuse it. It means something when they do this, means they see big profits beyond the 1,5 million dollar.
Yes!!!! Was thinking the same thing
The company appears to have gone under so he should have taken the offer
“ So YoU LeFt ThE rIsK tO uS” yes thats what all of this is about smh
Read the definition of pyramid scheme. This guy was effectively starting one
@@SwampHeatRG lmao no
I see where you're coming from, but investing in a company, that can get their IP contracts terminated by the owner at any time is a pretty shitty deal if you ask me.
@@snowshoe3274 The owner has no reason to do that, he owns 90% of the other company. The first one is just a way for him to secure a bonus for himself.
Ues but the risk should be balance tho.
I lost all respect for these sharks when they sit and try to corner him about the “structure” of the business. Granted good questions but does he deserve a roast for the structure hell no. Andrew is a smart guy he will be on the beach with out these sharks lol. Thing is they see that no matter what Andrew gets paid he wont have an issue selling anything grow it scale it then sell it and forget about it. At least you made it on TV 🥂🍻 Cheers Mate.
You can see the ego oozing out of them TBH
It's called Shark Tank. Not Kiddie hour.
Yes. But can you fault the man for protecting the IPO from sharks - he told them so honestly..
How many patents have been stolen by investors that shore up high equity stakes and take over the company through the small print and contingencies, shells and buyouts, etc.
John Kirk exactly
His company went under 2 years back. He probably is on a beach, he lost his house.
"Unusual business structure." Lol LOTS of folks structure that way.
Yeah. They're called pyramid schemes
@@SwampHeatRG A pyramid scheme is nothing even close to similar.
@@maxconnolly4279 do you even know the definition of pyramid scheme?
@@SwampHeatRG You clearly don't. A pyramid scheme is about recruiting new members who pay an upfront cost to pay higher ranked members. This has nothing in common with a pyramid scheme. If anything you may be thinking of a Ponzi Scheme in which you pay off previous investors with new investor's money, the problem is a Ponzi Scheme doesn't work when you give equity as you will eventually run out of equity. As mentioned in the video by the sharks he had built a shell company in which the company they were investing in had no actual assets and could have been dissolved immediately after their investment and he could still manufacture and sell his product without paying them any of the equity they were owed.
@@abonynge Except is was only offering 90% and would lose 9:1 ratio and he could be sued I'd he refused equity payment.... What are you talking about?
Steve said, “Everything to operate it”, when asked if the offer was for the patent-owning company too. Since the buckle company has a worldwide license to the patent, buying just that company would give Steve “everything needed to operate it”. Steve did not say, “Yes, both companies”.
"We are actually here to do deals not just consider them" says the one who never does deals 😂😂
But Barbara wasnt here??
this tech is absolute, eventually they're all going to have this tech built in
Yea but there is still a long way to go for that and in the meantime millions of dollars could easily be made off of this product.
Most cars have something superior to this already build in today.
Even back then a lot of cars had sensors that would tell you if somebody is unbuckled.
my tiny monke brain: how did they put a car there
For those that don’t get why the sharks are hesitant: with it being a licensed patent; there’s nothing stoping the parent company from pulling the license and selling it to another company for more value down the line. The inventor went into there for money to get his numbers up (more money = more manufacturing/ sales = more of a household name). Once a item becomes a household name he could pull the patent from the child company with the royalty investments and put it into another company that all profits go to him. The child company would have no right to use the patent then which means no money for the sharks, but the inventor would still be making money off the patents.
Also his patent is entirely useless anyways. patents.google.com/patent/AU2019203235A1/en?inventor=andrew+leary&oq=andrew+leary
A license agreement would be for a certain period of time with various stipulations, including exclusivity and other provisions. The parent company could not simply walk away with the patent or just sell it to someone else.
The sharks disliked that he would be generating revenue from the royalty regardless of whether the company was losing money overall or not.
I started watching Shark Tank recently and it’s just now that I’ve realised why they are called ‘sharks’.
They run away when punched in the nose ?
@UCWlDccUW3hpTcWQKLmQkSlg they try to fuck you... then run away when punched on the nose lmao
@@BiakSkull they aren’t dolphins lol
“I answered as honestly as I can” = I left a few vital pieces of information out. One of those guys who makes you feel uneasy the moment the presentation starts.
Entrepreneur: "good afternoon"
Shark: "I'm out"
This show doesn’t deserve to be called sharks but maybe tuna
Vehicles already have integrated sensors for the front belts. Easy enough for the OEMs to add the same feature to the rear seats and report directly on the gauge cluster, just like a door ajar.
It might cost them upwards of $1.63 / seat using the existing CANbus network, no BT, no phone, no driver distraction.
Sidenote: nobody asked how often you have to replace the batteries in every bluetooth unit... or what happens if you don't.
If the bluetooth unit is dead, there are several things it could do - show the seat as greyed out, show the seat as red, give a low battery warning, not show that seat at all, etc.
What it probably wouldn't do is continue showing that seat as green, which is the only situation where it potentially becomes dangerous.
@@leotamer5 The device actually portraits seats not used as ok (meaning green). So if they get no readings from the sensors that somebody is sitting in the back they will register those seats as green.
Not sure if they fixed that, but that is how the first edition was, when a friend of mine got one for his old car that did not have build in sensors (like every car nowadys has)
This guy looks like Michael from GTA V
Lol he does 😂👍👍
🤣🤣🤣🤣
Micheal Cityly
Michael left his crime life and began an honest business.
I like how everyone here is in a good understand of financial status and equity, could learn some stuff
Literally the only guy who knew how to do business wasnt a shark
For real tho
11:24 “It was a roller coaster ride in there.” I swear she says that every time
This guy was honest, respectful, and polite, the sharks are upset because he kept himself safe and made sure he was always gonna make money. There was no reason for them to get as agitated as they did
This app will be useless soon enough when it’s standard for card to alert the back seat
@@AJ42069 no because it would do that same thing but with a different system. If I design a revolutionary ice cream maker I can patent it but it doesn't mean no one else can make other designs. That's why apple can patent phone parts but Google can still make phones. They do the same thing but differently.
AJBoss420 his patent doesn’t apply to standardizing backseat seatbelt alerts, just the wireless system he made
maybe new cars will start having it more often, but there will still be millions of older cars on the roads for yeats
@@AJ42069 It doesn't matter about his patents because if it becomes a required standard, manufactures will just integrate it the same way they do for the front seats. No need to add a whole new wireless system.
Not everyone’s gunna have a new car mine is still 2007
"We are here to make deals, not just consider them"
You haven't bought an investment since Shark Tank Aus came out 😂
that's what I thought. These 'sharks' say " Deal.. " but it's just hot air. It is not binding, the entrepreneurs have to sign waivers, etc., etc.
Don't be faster than your shadow, try as much as possible to learn before you participate.
Yes my dear, you're right, that's why people fall into the wrong head
@@jordanbella6765 An investment In knowledge pays the best interest
I wish many people can see the wonders Bitcoin has done so far.
@@davelydavely3524 yeah...! that's true
but not everyone has the knowledge of that.
@@williamsjordan2513 you can't do it all by yourself, you need an expert who will guide you step by step.
They are getting mad for doing what they would do to protect themselves. But why get mad? Just negotiate with him for a % of the IP. I mean if you you really want to make a deal.
Last time I was this early we were still allowed to go outside
Good for him, he was all in with his house. Totally respect entrepreneurs like him who bet everything into an idea they're passionate about. A good entrepreneur is willing to die and lose everything for their company.
That's balls. Think about it. What makes you think he only got 1 house?
We assumed he only has one house. He mentioned worrying about risks. Don't you think he is more capable of that.
@@MrWhizky You, sir, are an imbecile
@@Niggalodeon323 takes one to know one!
Nice to meet you too!
I respect him doing that but you don’t mortgage the roof over your head no matter how much you believe in the dream always make sure home is taken care of
“DoEs BuCkLe Me Up AlSo CoMeS wItH sHuT mE uP¿”
Why you're writing like this oOoOoOo
Moncef Allaoui Cause she annoying as hell and said that for no reason at all.
@@quranfrazier157 yeah that pissed me off
The story of his kid falling out of the car happened to me too. I fell out of the car when I was five. Passenger door somehow opened up when I was leaning on it. I fell onto the highway. The back wheel ran over my leg and a passing jeep barely missed me.
I expected you to say, that the shark guy came out of the car to help you up.
"Someone's out to do me a disservice"
*Says the shark*
I don’t understand the “we’re losing money” shtick. If they get a 10% owner equity in the company then they get 10% of ALL profits. Dude only gets 5 due to royalty. so they’re still screwing him. They’re all billionaires, 390k is nothing to them
Dude gets 5% from sales not profit then again gets 90% from the profit sharing. This guy is being super greedy which isn’t wrong per se but $390k for 10% and you have to pay royalties is too much. But the counter offer is definitely great for the investors even if they have to pay royalties.
@@adityadrinkswater8087 the investors aren’t having to pay the royalties though, the company is. So their 10% goes to them as a business expense. 5% of the sales goes to the IP owner, etc. why would they have to pay royalties too, it just doesn’t make sense. They don’t own the whole company, they have a 10% equity in it which entitles them to 10% of profits, it doesn’t make them liable for losses
@@drummerboy81000 Their 10% decreases because of the 5% they have to pay. Note that the 5% is paid from sales which means that 5% could be higher than their 10%. The problem here is the patent holder is the guy with 90% of the company which makes it look like he isnt confident in his company or depicts the image to it’s investors that the risk is solely on them.
The issue is the company there investing in doesnt actualy own any of the tech for this product so if it went under they would be out all the money and this guy would still own the tech and could take it and sell it off for himself without giving them squat.
@@adityadrinkswater8087 dude. This guy made a pyramid scheme
He secured his “skin in the game” in the IP company and offers the sharks to put their “skin in the game” in another company that has a license to sell his product. This appears to be a common theme on shark tank Australia and I applaud their due diligence. However the fact that he got an offer to buy 100% of his company is disturbing to me. But I am still laughing at the part where he asked to have a job at the company that would get bought out.
"I keep 5% because uncertainty"
"No, you want to sit back and do nothing wile we take all the risk."
Same difference
Fair deal, you take all the risk and I take all the money
I would have fired back: "Do nothing? So you created this company up to this point?"
@@dreammachine5014 Firing back at potential investors in your business usually isn't a good idea in terms of persuasion
These Shark Tank people are like Minecraft Villagers.
There’s a one in a million chance they have a good deal.
Have you seen the devices for doors/windows and beep when they're opened? I've been using those attached to the seat belts.🤣 Price: 3 dollars
No, dude should of payed atleast 2 million for the whole company
For a pyramid scheme? No thanks
So pleased that they had a recap half way through the video. Was watching and had no idea what was going on hahahahaha
I spent 2 mil so far
Steve:I’ll offer 1.5 mil for the whole thing
@Cameron Sole he didn't make 2 mil from any bus company. And even if he didn't, it's revenue, not profit.
So minus all the overheads - manufacturing, end - he'd probably be left with under 1 million.
And the offer was still way too high
Lol the guy spend $2 million and a bus company just buy their products worth $1.9M
And steve want to buy the whole company for $1.5 Million
Even a 5 year old would not fall for that
1.9 mil revenue is not the same as 1.9 mil profit. After overhead and r n d costs its hard to say, but its completely possible hes losing money.
@@juan125873a
When did i say it is also a 1.9 revenue
All i want to point out that if someone buys a product worth the same as tge money u spend on ur company that means it is worth alot more than that
Considering he will probably will het a profit of 20% in that 1.9
@@XX-qj9sj
Damn..... small brain......
Literally what i was thinking is he’s about to make 1.9 why would he sell it for 1.5, even if he sold it after the bus deal he’d get more
Vedant Goswami they royalty’s is 5% for his parent company. Did anyone listen to the pitch??
I hate doing business with people that hide important things that only make you feel like you are always about to be hoodwinked.
He didnt lie about anything. They were butt hurt and gready bcuz he didnt offer them more. The least they could've done was ask for more.
@@jaimsish He lied by omission.
@@umyes4944 but he told them! If they wouldve made a deal then later discovered that would be omission. Honestly, this whole thing was a joke. Offering him 1.5 for 100% when the guy already put 2 million in, now that's disrespectful. I wouldnt want to be any of their partners
@@jaimsish You are an idiot. Go away.
@@umyes4944 I kno, right?! Gosh I'm such an idiot.
Surprised none of them simply asked him if he'd be willing to transfer the IP into the company. They could have done a smart deal whereby his $2million gets paid back and the IP becomes a company asset.
Cause he literally said that he put it into another company to keep it seperate and not a company asset.
Would have loved to hear Steve explain his plans if the sale would have gone through
Get rekt if gov required new vehicles to have this built in.
Get paid if he owned a patent that would require the government to use his tech over another company that has copied it tho, his idea was good, just a little too late
@@amandalee4735 his tech involved bluetooth...car companies would simply hardwire the back seatbelts like they already do with the front ones. so his patend has no effect
The government pays people for vital technologies all of the time. He could become a huge supplier.
@@dinodare1605 He has nothing to supply. They dont need his patent.
@@PremiumFuelOnly
If that's true, RIP him.
Sell a company for 1.5mio,and set a royalty to 5-10% per net profit of a piece sold. You still own a patent and the rights of it, without any hustle needed.
Steve was not offering to buy it and just let him keep the patent
@BS Handle Created Yes but that's just the show being edited. It stands to reason he would not buy a shell company for $1.5M, when the IP was held by a holding company and he has to pay royalties to it.
Indeed he did say he was offering to buy 'everything he needs to run this operation himself', which would include the IP.
The value is mostly in the patents after all.
My guess is Steve was not planning on taking this business any further, and would just take the patent and then approach high end car manufacturers like BMW, Merc and Bentley, to leverage the patent. He could quite easily make his money back with a lot of profit from that alone, without having to waste time manufacturing and selling these retro-fitted bits of plastic
@BS Handle Created Ok, I guess we will just have to disagree. A lot of the deals agreed on camera never actually reach fruition anyway, after due diligence. They also edit out important details which viewers might find boring. For example he claimed to have a $1.9M order, and it's inconceivable the Sharks would make any sort of decision without first asking to see a concrete purchase order for this... but it makes for boring viewing so it gets chopped.
From pre school to high school. All the buses I rode on had no seat belts or air conditioning. Only the kids in subdivisions got air-conditioned busses with tinted windows.
They're just mad they couldn't rip him off.
“ Buckle me up you’ll never look back” the way he looks 😂😂😂
I'd love to see this product go on the American shark tank. I feel this would have played out way differently because of how they actually handle their own businesses and the risk they are willing to take.
"I can't take advantage of you, I'm out."