MrBeast Joins The Sharks And Likes What He Sees!? | Shark Tank US | Shark Tank Global – Transcript

00:02Next up is a company using AI to re-imagine the ultimate classic toy. Hey Sharks, I'm Andrew. And I'm Kevin. We're both dads from rural Pennsylvania and we're here seeking $200,000 for a 10% stake in our company.

00:24Sharks, play isn't what it used to be. Kids glued to their phones, their tablets, video games. We love technology, but not like this. Well, we want to see kids get up, get outside, get in the backyard and just invent crazy games. That's why we created Ball 2.

00:40Ball 2 is a toy that gets people moving and creating with AI. Anybody can code a game by just talking to the Ball 2 app and then within moments, you're playing. Ball 2 is filled with sensors that measure every kick, toss, spin, throw and turn. It feels like magic.

00:59You could make a game where you see who can roll the ball the farthest and maybe try to keep it on the green groove. Or a game where you toss it and try to spin it exactly 21 times without going over. Or just see who can shake the ball. The hardest. Our community has made thousands of games.

01:15Over 100 of the best are available for everyone to play. Sharks, the ball's in your court. Who wants to get the good times rolling? With Ball 2. Good job. All right. If we could have two people come up as volunteers, we'd love to actually have a little time to play.

01:31Yeah, I would love to try it. Yeah, let's go. I'm going to step over here. So I'm going to show you quick. But what we want to do is play a game. So we're going to do a really simple one where we're just going to shake the ball to as hard as we can for 10 seconds. Shake it good. Give it a little shake. Shake it down. Okay, so your player too.

01:46Ready to shake for 10 seconds. It's going in three, two, one. One, two, one. Yes, come on. Come on. Five seconds. Come on, shake it. Yes, yes.

02:02All right. You feast. That was actually really fun. I'm actually very impressed. This is cool. I mean, you know more than anybody, like little challenges like that. It doesn't have to be a deep video game, but like little challenges like that. It worked way better than I was expecting it to work. That was cool. So that's playing. One piece of it is making the game.

02:19And I think that's really important to show because it is done with AI. So what we want to do is spend a little time to actually make a game. We want to prove this as a live demo. So we want to know, do you want a throwing game? Could you just do one closest to 10 feet high?

02:34Can we make that? Perfect. Okay. But make it where if you go over, you lose. Okay. If you can do that. We're going to make a game. Who can throw it as close to 10 feet as possible? And you can't go over. If you go over, you lose.

02:49Name the game 10 feet of death and go ahead and code it. I think you got it. Welcome to 10 feet of death. Puss the ball straight up and get as close to 10 feet as you can. Do not go over. Too short. 5.8 feet. Safe.

03:04New personal best. Yeah. That's really cool. So, Salas, what are your sales? So we just launched less than six months ago.

03:19You did. And our sales right now are $74,000. We've sold around 1,300 of these. Direct to consumer? We sell direct to consumer just on our site right now. Was it a costume? What do you sell them for? Yes. So the ball itself, our first production run was 1329 landed in the states, including packaging.

03:39And you sell them for what? $69. Tell us about the two of you. So Kevin and I are actually first cousins. This is actually the fourth company we've worked together. The third we've founded together. We are the product team. We are like the electrical engineer, the designer.

03:55My background is in game design. We know how to make this product. And now we're learning how to sell it. There are many toy inventors. It's a brutally competitive market, obviously. The only way this works is if you get a low-cac with a high ROAS and sell them one at a time direct to consumer, there's no other play.

04:11Unless it goes viral. Yep. And we know, especially if you put this next to another thrown ball on a shelf, it's a tough sell because what is it, right? We need video. I think that's your major problem. You have to demonstrate it. And if you look at the package itself, you just don't get it.

04:27And I don't think it looks like fun either. So for that reason, I'm out. Just to clear the deck, zero interest in this because of the mountain you've got to climb. You'll be pushing that ball up the mountain the rest of your life. I'm out. Jimmy, do you think these would get virality?

04:43Actually, you know, as someone who grew up very creative, I could see myself back when I was 13, 14 years old, you know, talking to the AI and telling it, hey, I throw this ball at the wall, figure out who threw it the hardest and a bunch of stupid stuff like this. So I actually see this being very fun, to be honest. Like, this is really cool.

04:59But 60, whatever, you said 69 dollars. That is a lot of money, though. And I do see a lot of people going, wow, 69 dollars for a ball. I mean, what do you think you could get the cost down to in the long run? The cost of making it landed can be under $10, which gives you an idea of where we could go retail.

05:17We have seen a customer acquisition cost of about 37 or profitable. $37? Yeah. So Andrew, Kevin, you're asking for 25 times this year's revenue. That's a crazy valuation. Well, we're expecting to have 800,000 this year in revenue.

05:34And I've ordered the inventory to do that. Jimmy and I, we're doing nine figures in toys in our third year, and we know something about virality. So we can make your customer acquisition cost our cac, basically zero. So here's what Jimmy and I prepared to do.

05:50We will give you $300,000 for 66% of the business. Wow. Wow.

06:14Two sharks are out. Kevin and Andrew have a potentially life-changing offer on the table from Teen Beast for their AI-enabled toy, Ball 2. But they want a much bigger stake than the 10% the founders came in offering. We will give you $300,000 for 66% of the business.

06:33Ooh. Wow. How about giving up control of your business? How do you feel about that? I think we're open to it, like, with this particular offer, because I know where you guys are coming from.

06:52And if they say, yes, will you wire the money or will you bird in an island and they'll have to find you? I was thinking we'd bring it and Wilbur was a cash. Like, yo. But think about Jimmy playing 10 different games and TikToks and Instagrams and YouTube shorts and blowing this up.

07:07Yeah. It's a great offer. What a partnership. If you guys don't take that deal, I'm going to take it for you. I like this. It's really, really... I don't know about Hype Man over there. No, but for real, like, I can see this becoming I'm getting goose bumps. I'm getting goose bumps thinking about it.

07:23I'm getting goose bumps thinking about it. Are you out? I'm out. I like the idea, but I think you have an incredible offer. So I'm out on this one, but I wish you good luck. Yeah, thank you so much. We're going to do the heavy lift.

07:38We already have a toy company. We distribute in Walmart and Target on Amazon. We have manufacturing and we have the best marketer in the entire world in Jimmy Donaldson. Yeah. Obviously, it's a steep ass, but the company, I mean, you've done 70,000 in sales, so it's essentially ground zero.

07:57I'm wondering, like, would you be willing to drop down to 51%? We can do $250,000 for 55%. Be small!

08:20That's a great deal. That's cool. Yeah, thank you. I can't wait to make TikToks with these things. We could do some crazy stuff. Congrats, guys. Thank you very much. Thank you. I think this is history in the making.