BANKER REACTS – Shark Tank Pitch – EasyTatt – Capital Raises – Investment Banking

Alrighty, in this video, I’m going to be reacting to Shark Tank. Usually I hate Shark Tank, but I’m going to do it because I’ve been getting a lot of requests and Shark Tank is something else. So let’s take a look at it. I don’t even know who these people are, but from a capital raising perspective, especially for people who want to raise capital for assets, I’m going to provide my candid reactions.

And I may skip over some of the intro. Australia. I don’t think the Sharks have seen anything like this ever before. If they’re scared of commitment, I’ve got the perfect temporary fix. I am gunning for Davy because I’m a big fan of his. We are both from the same hometown of Adelaide. I can’t deny the nerves that I’m feeling.

So yeah, it’s quiet. So quick side note, I don’t know people who did Shark Tank, but I know people that did the Canadian alternative. And I was told that a lot of it is really like the deals are real, but all the theatrics are fake. So Going in, I know that it’s really like a reality TV show, but there are some real, the deals are actually real.

And so probably Shark Tank is the same. Quite a handful of emotions right now.

Hello, Sharks. My name is Pascal. I’m the founder at EasyTat Inc. Co. I’m here today asking for 300, 000 in return for 15 percent of my company. So you test drive a car, why don’t you test drive it? So my first thought here is, so for the, so a lot of these deals, like I’d be, I’d be just curious on how to create an evaluation because they’re saying that their company is worth Over three million dollars.

So it’s like, what really, what, how did they come to that valuation? So if this was a raises. com member, we would have a, we would connect them to a chartered financial analyst and they would do a, uh, DCF model, discounted cash flow model or something similar, or they will do a, um, you know, a comparable model to just get the price of each share.

And then based on that, Then they would say, Oh, my company is worth this. So what I always wonder is how do these guys even determine the value of their company? A tattoo. This is the basis for my company, Easy Tat Ink Co. Wait, what does it do? We enable people to test drive their tattoo ideas before they get the needle.

They can experiment with different designs. Oh, so it’s like a test drive tattoo. Not only do we have a library of over 6, 000 designs, we also allow people to upload their own design. And it’s all direct to consumer. It’s all self applied. Today we have some models wearing some of our tattoos. These are not stickers.

Can I That looks very, very real. Yeah. Yeah. The tattoo cannot be removed. You must wait until the skin regenerates itself naturally. How long does that take? So is that safe? A little over two weeks. The big thing, of course. 100 percent organic, vegan ink. No nasty chemicals. So that’s cool. So like, You know, for this type of stuff, I don’t know much about this type of business.

Uh, obviously, but, One thing I do know is, If there’s a demand for it, it can do really well. Like, I had a good buddy back in the university days and he was, he was older than me and he had a business that was to sell, uh He raised money and he sold it to private equity and it was to It was, uh, male perfume.

And it blew up and it exploded. Uh, it did really well. So sometimes the products that may sound weird, it depends on if there’s a demand for it. So, I’m not sure. Because I have the worst bias remorse. I changed my mind and I’m like, I would hate it in an instant. And so you literally came in and solved that problem.

So that’s brilliant. I’d love to know how you came up with this idea. So, so, so when they say come up with the idea, this is what I don’t like because coming up with an idea. Is just in response to solving a problem. So it’s really hard to come up with an idea that you don’t know people want, unless you ask people what the problem is and get sales for it.

So hopefully he says it’s based on what people are saying. This idea came to me in a tragic circumstance. Um, in 2017, uh, I, I lost my brother. He took his own life.

This moment completely broke me. Sorry to hear that. When I found out this new, so yeah, so it’s bad and it’s really sad, right? That’s, that’s horrible, you know, but you know, he’s a capitalist and sometimes what I’ve learned in these pitches, especially the startup ones, sometimes they use emotions to draw people in and when they use emotions to draw people in, it builds a good narrative and story.

So you emotionally resonates and sell the dream. So while, yeah, it’s a legit, legitimate, it sounds like a legitimate problem in a sad story. There is also a capitalist aspect of using the motion to get people to make irrational decisions to sell them something right. I dropped to my knees and I howled like a wolf.

I wasn’t the same person for a very long time. And as I came out of that grieving period, I wanted to get a tattoo to commemorate him. And obviously it was a very important tattoo. I couldn’t believe there wasn’t a way for me to see what it would look like on the skin before going in that day and getting it needled in.

And that was my aha moment. And so that, I mean, that’s a good idea. Because some people, they solve the problem for themselves. And then, that’s the first, uh, demo of them seeing if there’s a problem to be solved. Pascal, what was your brother’s name? Uh, Paris. Yeah. So, the idea came from a tragic place, but it, it’s, it shows that adversity can really seed success.

So, I mean, it’s smart because from a marketing perspective, how are you going to say no to somebody that doesn’t have a story like that? So I’ve got a little gift for you guys. I want you to pick any of these. Thank you. Oh my God. It is a picture of David. Because notice how at this point, this is the difference between small startup that raises small amount of money.

Institutional because notice how there is no talk about money except just in terms of the ask Very nice. Yeah. So what you saw on the girls, it’s the same technology. Why don’t you have a go? You’re getting a picture of Dean. Oh, hi! Hey, look out. I’ve got Kat. Yeah. Bravo. That just leaves Jan. Yeah. I thought you had a double up.

Our partners are gonna be very suspicious. We’ve got tattoos of each other.

Pascal, can you tell us about What? Sales you have to date over what period so we’ve got the best question has been asked so far I’m tremendously this year and I’ll tell you why it’s all thanks to Davey because we’re doing any Advertising on Facebook before this financial year as soon as we started doing that and I use some of Davey’s YouTube videos We started scaling the company.

Are you giving Davey a royalty and how much? So he didn’t see the actual number of sales I’m trying not to show it. I’m trying not to show it. I think you’re showing it. Yeah, I think I’m showing it. I love it. I love it. He does amazing things. I jump the gun and I put a Davey one on. Aww. Yeah. They’re pretty good, actually.

Oscar, let me ask the question. I ordered Davey’s face. I pay X dollars. What shows up at my house? You get one of those brown envelopes, beautiful packaging, you get the primer wipe, you get the instructions. When you apply it, it’s actually completely invisible. And then they’ll develop over two days.

Interesting. So, you’re the only one that makes a tattoo that looks permanent last for two weeks? Well, it’s a good question, but I think for him, he doesn’t have to be the only one. Because, if he’s the only one, it shows that maybe he’s a genius. Or maybe there’s no validation. Uh, because look at MySpace and stuff.

It’s timing, right? Have competitors in the U. S. doing a similar thing? You do? Yeah. And what do you do that they don’t do? Our tattoos can be applied in 30 seconds. The competitor in the U. S., when you apply it, you actually have to leave it on there for an hour. Got it. Can you tell us about the business? So, where you’re based, and then what?

So that was a good answer, and a good differentiator. I’m from Adelaide, so I was pursuing my legal Yeah, so she’s asking for the sales again, because notice how you didn’t actually say the actual money. That’s like the most important question. We’ve talked about everything, about, we danced around a point.

career, so I have a degree in business and law. A lawyer selling tattoos. Yeah. It’s a degree in business. Oh, that’s kind of cool. That’s cool. Kind of cool. Well, that’s, that’s what I am. So, this year, sales are 1. 3 million There we go. So that’s a, that’s a good, that’s good. So then 1. 3, so then now the next question we’re going to start asking are the margins and the suppliers.

What were they last year? 700, 000. Wow. So that’s good, that’s a good increase. Solid. You’re gonna love gross profit margin of 89%. Whoa. Whoa, 89%? On a product like this? That’s insane. That’s, that’s really good. Hmm, that’s really good. Wow. So what were you net on the 1. 3 mil? Just under 100k. Why? Wait, wait, wait, wait, wait, wait, wait, wait, wait, wait, wait.

I don’t understand. The pro so the net profit and gross profit, probably they’re talking about that. Why is it only 100k on that much? So it’s kind of deceptive because like the gross profit he said is 89 percent but all of a sudden it’s like 5 percent so then that’s the danger. In this business. Wow. So what were you net on the 1.

3? Let me play it again. What were they last year? 700, 000. Wow. A degree in business and law. A lawyer selling tattoos. Yeah. Although that’s kind of cool. That’s cool. Kind of cool. Well, that’s, that’s what I am. So this year sales are 1. 3 million year to date. Wow. What were they last year? 700, 000. Wow. You’re gonna love gross profit margin of 89%.

Whoa. So gross profit margin and then net profit margin. Wow. So what were you net on the 1. 3 mil? Just under 100, 000. Why? You’re making 800, 000, 900, 000 in gross profit. Yeah. What are you spending that on? Rent, wages, um, we, we invested heavily in inventory as well. Why aren’t you just doing every single thing?

Print on demand and not having any inventory. Oh, see that’s a big problem with some of these companies that are That are based on selling physical products Especially if they pay for rents because if they pay for rent because there was a client that reached out to us and then He sold inventory, but he actually purchased the Or I guess it wants it to purchase the, um, a piece of the actual warehouse and actually own the land so that you gain appreciation.

So, if you’re renting, then you’re not building a long term asset. So, I mean, I expect it to be like this. So, print after. Print after the line. It’s funny you mention that because this was our biggest problem. When you print, there’s a lamination process that happens, and then they have to be manually cut.

And it’s not possible to fulfill fast enough if you can’t pick and pack. There’s more manual labor so wages go up. What if, with all due respect, like, all businesses are a shitshow to begin with. I’m wondering if you get your You call this business a shitshow? Shit together. If you have a business that makes 200k a month, and then you take home 100k a month, there are a lot of businesses that do that.

Like, I know tons of businesses that do that. And Imagine making a hundred, imagine making like almost two million, or one million or whatever, and then taking home that same amount due to inefficiency. Like that’s just, like, like that sucks. And a lot of these businesses are based on selling physical products, like e commerce and all this stuff.

You know, that’s why information products or investments are two types of business models that I like. Are you going to be able to do that process? Because suddenly you’re a global business. If you can just set up the print on demand everywhere and without any inventory risk and you can just scale like crazy.

It can be done. It affects dispatch times. Customers get grumpy. Unless you solve the issue of having, you know, a way to do print on demand, then it’s going to be very, very challenging. What are you going to use the money for? So, international expansion is, is something that is on the cards, but I really want to enter the U.

S. market and I’ve been contacted by numerous people around Australia and the world who want our products in their stores. It’s an excellent impulse buy. You want to go retail? I want to go retail. Pascal, you’re an amazing guy, but all the problems I see in your business is I wouldn’t guess he’s going to say operational or experience.

Simply stuff that you haven’t thought of. I think you could figure it out. So experienced. Um, it’s not for me. I’m out.

Olay has done it again with my new favorite body wash. Like it’s a tough business. Like it’s a tough business. Um, and a lot of these Shark Tank shows have a lot of, um, e commerce types of businesses, I noticed. For me, I don’t have a love for tattoos. Probably not the right business for me to invest in. So, I’m out.

Sorry. I mean, that was her nice way of saying, it’s the money. Like, if he started the pitch by just saying, we make 5 percent profit margin. Then, uh, like that’s really the main thing. If he just came in saying he made 90 percent profit margin, and he didn’t say any of the suicide story or anything, he was just more about the results, then I’m telling you, he wouldn’t even have to do all the dancing about talking about, talking about their brother, talking about this, talking about that.

He would just say, hey, yo, we, we make, we make 80 percent profit, net profit margin, because we’re an operational beast. And then he wouldn’t even be needing to ask for money. So that’s why I’m wondering if he’s asking for, for, uh, I forgot what it was, 300k for 15%, what valuation metric was used? For people that are watching this video, I mean, you may either be in services or you may be in real estate or whatever, but basically if you may, if you have a business that you’re making, you know, net profit margin of like 5%, And you’re making so much money in cash.

And then you have so much stress of operating a business, of dealing with warehouses, of dealing with Chinese houses, warehouses and factories and all this. Um, you know. People don’t care about the dancing of, like, the stories and the emotion and all that if the result isn’t there. So, if you just focus on the results, and put in the results at the forefront, that’s how the institutions like it, and the big guys like it.

It’s like you have the good results, and then you focus on the numbers, you clean up the mess, and then you do it. So then, one thing is that some people, they focus on buying businesses. As opposed to starting your own business, because if you buy business, or if you find a way to leverage businesses that already exist, right, and then acquire them that way, that’s a nice way around some of the headaches, um, you know, but when people are young, they have to build businesses themselves, so they have experience.

business to acquire and raise money for, but, but it all in all, that’s, that’s, those are, that’s my feedback on the, on the thing. But what do you think about it? Uh, comment, like, make sure you subscribe. So you get into the giveaway, subscribe. And if you want to learn more, make sure you have to raise. com to learn more.

See you later.

 BANKER REACTS – Shark Tank Pitch – EasyTatt – Capital Raises – Investment Banking

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