On this episode of "Entrepreneur Elevator Pitch," one contestant has a very good problem to solve.
On every episode of Entrepreneur Elevator Pitch, contestants looking to uplift their businesses — and their lives — must prove to our panel of elite investors that they have what it takes to take their startups to the next level. And as if pitching your business wasn't stressful enough, they only have 60 seconds to make their case.
During this tension-filled episode, we'll see some entrepreneurs make it all the way to landing their dream funding, and some who walk away empty-handed. The difference maker? Preparation, preparation and more preparation. Leaving out critical information from a pitch is a big influence on whether the door will open or not. "You need to answer the big questions with your pitch," notes Kim Perell. "Don't just tell me how many units sold — how much does your product cost? How much revenue have you brought in?"
On every episode of Entrepreneur Elevator Pitch, contestants looking to uplift their businesses — and their lives — must prove to our panel of elite investors that they have what it takes to take their startups to the next level. And as if pitching your business wasn't stressful enough, they only have 60 seconds to make their case.
During this tension-filled episode, we'll see some entrepreneurs make it all the way to landing their dream funding, and some who walk away empty-handed. The difference maker? Preparation, preparation and more preparation. Leaving out critical information from a pitch is a big influence on whether the door will open or not. "You need to answer the big questions with your pitch," notes Kim Perell. "Don't just tell me how many units sold — how much does your product cost? How much revenue have you brought in?"
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NewsTranscript
00:01Going up.
00:04Today, entrepreneurs looking to uplift their lives
00:08must prove to our elite panel of investors that they have what it takes
00:14in 60 seconds or less.
00:17They left the field before the clock had run out.
00:20You don't always have to use all the time.
00:22Well, they need to answer the questions.
00:24This is Entrepreneur Elevator Pitch.
00:28Presented by Amazon Business.
00:32Today, in the boardroom,
00:35Kim Perel, CEO of 100.co.
00:39Mark Randolph, co-founder and first CEO of Netflix.
00:44Dahadi Jones, a former NFL player and serial entrepreneur.
00:49Our first entrepreneurs hope to set sail with our investors
01:00with their convenient anchoring solution.
01:10Going up.
01:12Hello, Fernando and Kelsey.
01:15Welcome to the elevator.
01:17Your pitch begins in 3, 2, 1.
01:23Picture this.
01:25You're on that pristine, sandy shoreline,
01:27but then you're tackling that very heavy,
01:31outdated and very bulky boat anchor.
01:34Enter Shore Hitch.
01:36Our patent-pending design is revolutionizing shorelines
01:39one hitch at a time.
01:41Trying to anchor our stake into a $240 billion marine accessories market
01:47In the past six months, we've two times our growth
01:50and sold just over 1,100 customized units.
01:53We are here today asking for $250,000 in a safe note
01:57to help us with our product development,
01:59our market penetration and also our content production.
02:02Why can't your anchor be extraordinary?
02:05So investors, would you like to stake your name in the sand
02:08and join the Shore Hitch family?
02:10Because at the end of the day, anchoring your boat
02:12should never be as embarrassing as you launching it.
02:17They left the field before the clock had run out.
02:20You don't always have to use all the time.
02:22Well, they need to answer the questions
02:24from a pitch perspective, right?
02:26They said, I sold 1,100 units.
02:28How much is the product?
02:30And how much revenue and sales is that?
02:32What really turned me off a little bit was him saying,
02:35this is the $18 gazillion market.
02:39Well, sure, that's for every possible boating thing.
02:42I want to know how many of these guys are actually
02:44possible boating thing.
02:46I want to know how many of these is it possible to sell?
02:49I have a boat and I think about my anchor all the time.
02:52Could be interesting, could be unique, but I don't know.
02:54I think we probably should just put it to a boat.
02:56All right.
03:04Attention, Fernando and Kelsey.
03:07Your pitch has been denied.
03:15It's a lot harder than you think.
03:17I think there was a lot of margins and metrics
03:19that we left out just based off memory, fortunately.
03:23So I'll take that one on the team and go from there.
03:28Do you know what it takes to start a business?
03:32Check out Entrepreneur's newest book
03:34for insights on how to create, grow and scale.
03:41Our next entrepreneur of the day
03:42is on a mission to change women's lives everywhere
03:45with her Intimates brand
03:47tailored for post-mastectomy care.
03:50Hi, Mom.
03:52Hi, Jasmine.
03:54Do you have any advice or any tips
03:56before I have my big moment?
03:58Yeah, one of the things that I just want to tell you
04:01is that your grandmother would be so happy
04:04you took her struggle
04:06and turned it into a mission to empower other women
04:10who are struggling with breast care.
04:12That's the answer.
04:14You make me proud
04:16and you surely will be making her proud at this moment.
04:19We do this just for her
04:21and for all the other women who are like her.
04:23And we just keep going.
04:25Love you and I pray it all goes well.
04:36Going up.
04:38Hello, Jasmine.
04:40Welcome to the elevator.
04:42It begins in 3, 2, 1.
04:47Do you know a breast cancer survivor?
04:50Where does she shop for post-mastectomy bras and breast forms?
04:53Any idea?
04:55You may be surprised to know that 1 in 8 women
04:57will be diagnosed with breast cancer in their lifetime
04:59and that number is expected to double by 2030.
05:02And these women are shopping in medical supply stores
05:04behind aisles of bedpans and adult diapers
05:06for the rest of their lives.
05:08I know this firsthand
05:10because I watched my grandmother suffer
05:12with her shopping experience.
05:14Maya is changing it.
05:16We're the first fully encompassing
05:18direct-to-consumer post-mastectomy care brand.
05:20We offer bras and prosthesis
05:22and we handle all medical billing
05:24in-house for our patients
05:26because these items are covered by health insurance plans.
05:28Today, I am requesting $100,000
05:31for one person of my company.
05:33As we scale across the nation
05:35through hospital, non-profit, and retail partnerships,
05:39I'm so happy to be here today
05:40to provide dignity
05:42to the post-mastectomy shopping experience.
05:46I love a purpose-driven entrepreneur,
05:48but is she in market?
05:50Is she not in market?
05:52I don't really understand.
05:54Yeah, you said it was purpose-driven.
05:56I get that, but I'm not sure how far
05:58she's actually driven so far.
06:00I need to understand at least what's going on.
06:02Where are they?
06:04How far along is she?
06:06The fact that a lot of people, unfortunately,
06:08have to have mastectomies
06:10to adjust to the procedure.
06:12I'm interested about that.
06:14You guys want to take it to a vote?
06:16Take it to a vote.
06:18All right.
06:20Attention, Jasmine.
06:23Your pitch
06:26has been
06:30approved.
06:35Welcome, Jasmine.
06:37Hi, thank you so much for having me.
06:38Well, I was truly impressed
06:40with your pitch,
06:42but what you missed in your pitch was
06:44are you making money?
06:46Are you in market?
06:48Where are you in the business?
06:50We've done about $1.3 million in sales to date.
06:52We've helped over 20,000 patients,
06:54and the best part about our business
06:56is that we have a recurring revenue model.
06:58We offer a few different options.
07:00So we have custom breast prosthetics
07:02that can come in 36 different skin tones.
07:04You can customize them.
07:06You can add freckles,
07:08you can add veins, nipples, all of that,
07:10and insurance covers the cost.
07:12And then additionally,
07:14we have traditional breast forms, too,
07:16that live inside of the pocket of a bra,
07:18and so that patients have the opportunity
07:20to just wear that and feel whole again.
07:22Can you give us a little background
07:24of how you initially got started?
07:26Yeah, so I watched my grandmother
07:28shop for post-mastectomy bras and breast forms,
07:30and I remember thinking that her experience
07:32was just incredibly disappointing.
07:34So I partnered with a breast surgeon
07:36who noticed that her patients
07:38needed a brick-and-mortar store.
07:40After five years,
07:42we realized that we had the opportunity
07:44to reach more patients across the country,
07:46so I built a virtual fitting platform
07:48so that patients can just open up their laptops,
07:50they log in,
07:52they meet with a certified mastectomy fitter,
07:54and we deliver these items to her doorstep.
07:56There's a recurring revenue program,
07:58a subscription?
08:00Yes.
08:02How many of your customers are on that program?
08:04About 21,000 patients.
08:0621,000?
08:08That's a lot of clients for things.
08:10Their insurance is being billed,
08:12and it's every three months or one year,
08:14depending on their health insurance plan.
08:16And what's the annual subscription price?
08:18Well, for bras, they sell for $60,
08:20and women are eligible for up to 12 of them a year.
08:22And then for our breast forms,
08:24they're $450.
08:26But I'm still lost on the numbers.
08:28Are you?
08:30I'm completely lost.
08:32If you have 20,000 customers
08:34and they do $50 a year,
08:36that's a million dollars right there.
08:38It sounds like just a single bra
08:40is more than $50,
08:42so there's something not adding up.
08:44We bill insurance for $60.
08:46Some of them have different rates,
08:48so that's something to keep in mind.
08:50How much will your revenue be this year?
08:52I hope to do $850.
08:54But you should be growing at six times.
08:56Like, what's limiting the growth?
08:58It's cost us a lot of money
09:00to build something that has never been built before
09:02and to get things off the ground.
09:04This is our first year as a fully tech business,
09:06so acquiring new customers
09:08is a little different for us than it was before.
09:10I actually love what you're doing.
09:12Everything makes logical sense,
09:14but I can't figure out from what you're saying
09:16to the growth.
09:18What is the limiting factor on your growth?
09:20I would say things have been really expensive
09:22and more expensive than we expected.
09:24Is there one thing that you feel
09:27is going to be that breakaway moment
09:29with the overall business?
09:31Yeah, we're in talks with a nonprofit organization
09:33that would put us into 13 new states.
09:34We have $3.3 million in inventory ready to ship.
09:37We have a 3PL partner in the heart of the USA,
09:40so every customer gets two to three days shipping.
09:42We've done all of that.
09:44We just need gas on our fire so we can grow.
09:47I love what you're doing
09:49in terms of helping people,
09:51filling a need,
09:53all kinds of great entrepreneurial things.
09:55But this is a really complicated business.
09:58I mean, I'm having a hard time understanding it.
10:00You have recurring revenue.
10:02You have insurance billing.
10:04It's too much for me.
10:06I mean, I'm a simple man.
10:08I want a business that I understand well,
10:10that has minimal moving parts.
10:12So unfortunately, I have to pass.
10:17I appreciate your time, though.
10:19I like the business.
10:21I have a friend who actually just went through this,
10:23and I'm watching you present,
10:25and I'm thinking about the business.
10:27I'm thinking about the challenges that she's going through.
10:29So, you know, I'll do the $100,000
10:31for 1% of the business.
10:33Okay.
10:35It's amazing how far you've come
10:38in the complexity of the environment
10:40of which you're working in.
10:42But I want to see how to double the growth.
10:44For me, this is not about
10:46a 20% year-over-year increase.
10:48Like, we need to actually ten times your growth.
10:51I think you have the opportunity to do that.
10:54I would be willing to invest $100,000
10:56at the 1% as well.
10:58Wow.
11:00We have some choices to make.
11:02Yeah.
11:04So, what do you think?
11:08Um...
11:10Wow.
11:24I'm going to go with Kim.
11:26There you go.
11:28Yes! Come on.
11:30I get beat.
11:32Hey, I'm thrilled.
11:34Thank you so much.
11:36Oh, my God.
11:38I can't believe that this just happened.
11:40I'm so happy.
11:42I'm so grateful.
11:44I just feel amazing.
11:46My family's going to be so proud of this.
11:48They know how hard it's been sometimes.
11:50So, they're going to be so proud.
11:54Entrepreneur Elevator Pitch
11:56is presented by Amazon Business
11:58for every organization
12:00at every stage of growth.
12:02Amazon.
12:07Finally, an entrepreneur
12:09who's got a gut feeling
12:11about healthy snacking
12:13with his organic treats.
12:22Going up.
12:24Hello, David.
12:26Welcome to the elevator.
12:28Your pitch begins
12:30in three,
12:32two,
12:34one.
12:36Hello, my name is David Istier,
12:38founder and CEO of Gutsy Organic Gut Health Snacks.
12:40The American diet is sad.
12:42The majority of us today
12:44just eat mainly artificial junk food,
12:46not enough fruit and veggies.
12:48And for that reason,
12:50we don't get enough fiber,
12:52a key nutrient for gut health
12:54and overall health.
12:56The consequences?
12:58Chronic disease, digestive issues,
13:00you name it.
13:02Easy how?
13:04We've done all the hard work of chopping
13:06and blending organic fruit and veggies,
13:08all of this in this super convenient,
13:10on-the-go format.
13:12Not only our products are delicious,
13:14but they're also very good for you.
13:16With organic prebiotic fiber
13:18for gut health,
13:20botanical for immunity,
13:22no added sugar, no nasties.
13:24We're seeking 250K today
13:26and a pre-money of 18 million.
13:28So, investors,
13:30be gutsy and open the door
13:32to the future.
13:34Ask this growing brands,
13:36I don't even understand.
13:38How can you say that
13:40without telling me your revenue?
13:42Yeah, I was kind of wondering
13:44if I just missed it.
13:46There's a difference between
13:48making a product pitch
13:50and making a business pitch.
13:52But there's a big business
13:54and products that are like this.
13:56You can see them up and down
13:58the aisles of the different grocery stores.
14:00Up and down the aisles
14:02and you can see the difference
14:04in your health.
14:06You ready to vote
14:08and see whether or not
14:10we want to learn more?
14:12Okay.
14:14Attention, David.
14:16Your pitch
14:19has been
14:23approved.
14:26I certainly voted up.
14:28I voted up.
14:30Yes!
14:32Welcome to the boardroom.
14:34Hello, investors.
14:36You're here,
14:38but I do have some questions.
14:40One of the things missing
14:42from your presentation was
14:44where are you as a company?
14:46So, Guzzi as a brand
14:48has been around for five years now.
14:50We are about 8.5 million
14:52in sales,
14:54growing 35 to 40% year on year.
14:568.5 million to date
14:57The marketplace for this product
14:59is so crowded.
15:01What makes your product so different?
15:03So, we carved ourselves
15:05a very good place,
15:07I would say, in the produce department.
15:09Just a bit more space.
15:11There's not that many brands in there.
15:13Is the shelf stable?
15:15No, it's refrigerated.
15:17So, we are in the fresh category,
15:19which is at the perimeter of the store,
15:21which is where most of the good stuff is, right?
15:23So, we have seven flavors.
15:25I'm going to bring you some of those.
15:27I want the orange one.
15:29This is a mango.
15:31If you love mango,
15:33I can give you one.
15:35Are you just biting over the mango?
15:37I'll bring you another one.
15:39This is actually my favorite now.
15:41Mango turmeric is delicious.
15:43So, you do it like this.
15:45You twist it,
15:47and then you put it in your mouth.
15:49That's pretty good.
15:51It's very refreshing,
15:53there's no additives,
15:55none of that stuff.
15:57We're actually expanding out west.
15:59Do you all have a direct-to-consumer model as well?
16:02No, we work with Instacart,
16:04and we work with the dot-com of our retailers right now.
16:06Because it's cold.
16:08Yeah, that's tough.
16:10How much capital have you raised to date?
16:13We raised about $5 million,
16:15and we're here today because we are closing a Series C
16:17with our existing investors of $7 million.
16:19And what's your margins?
16:21We are in the mid-50s, actually, on our product margin.
16:23And what's your projected revenue for next year?
16:25$12 million, $12 to $13 million next year.
16:27I don't know.
16:29Remind me of the ask again.
16:32So, the ask today is $250,000 on a pre-money of $18 million.
16:39I think the product is great.
16:41I would buy this.
16:43But as for the business, it's beyond me.
16:46I really understand what it takes to go from 0 to 1,
16:50and maybe even 1 to 8.
16:52It's the 8 to 12 to 13 that I get nervous.
16:57And I just can't figure out how to evaluate the risks
17:01of whether you're going to pull that off or not.
17:03So, unfortunately, even though I'll be a customer,
17:06I'm not going to be an investor. I pass.
17:10Honestly, I love the taste. It tastes great.
17:14I think what makes me nervous is actually that it's not shelf-stable.
17:19And that requires a significant amount of capital
17:22to continue to grow at the pace that you want to grow.
17:24For that reason, I'm going to pass.
17:29Food is tough for me.
17:31It's so hard. Grocery stores are so challenging.
17:34When I think about the product
17:36and the overall distribution channels that you have,
17:38I think it's great.
17:40But it's hard for me because it's food.
17:43For that reason, I'll pass.
17:45All right.
17:47So, you'll be consumers, not investors.
17:49Yeah, that's true.
17:51Appreciate it. Thank you, guys.
17:52Thank you so much.
17:54So, I feel pretty good.
17:56At least I made it to the boardroom.
17:58We didn't get an investment, but this was a great experience.
18:00It takes guts to come here and get in the elevator
18:03and get in front of investors on TV.
18:06So, it's part of our name.
18:11This one didn't pan out, but we have had some good…
18:14Great success.
18:16Yeah, I think you actually walked away with a good one.
18:18She beat me out.
18:20I'm still a little bit upset about that,
18:22but next time.
18:24There's future episodes,
18:26there's future entrepreneurs out there,
18:28there's more opportunities,
18:30and today was a good one.
18:32Today was a good one.
18:35Going up next time
18:37on Entrepreneur Elevator Pitch.
18:39I actually like your pitch
18:41maybe a little bit more than her pitch.