Transcript

00:00 Next is an easier way to get into the habit of a popular practice. Hey, Sharks. My name is Yuna and I'm from San Francisco. My company is simply Habit and we are looking for $ 600,000 in exchange for 5% of the Company. Now before we get stressed out by these numbers, I would like to invite you all to close your eyes with me. Let's just take one deep breath together, take a deep breath. 600,000 dollars, 12 million valuation, 5%. These people are terrible. This Neve. Don't do it. Do not do business with them. They are just horrible people who exhale slowly. Now open your eyes. Oh it's only 2 million. Do you feel better. You just meditated. Simple habit is Meditation made simple. Our five minute meditation app is designed for your busy lifestyle. It is so easy to use. Let me show you. First download the app and open it. Second Tell the app you are working on. For Example. Let's try for work today. I'm feeling the Monday Blues. Welcome to Simple Habit session on the Monday Blues. Let's try and shift our mindset today and take it one moment at a time. Voila, there is a 5 minute meditation for you. We create thousands of meditations by top teachers from around the world. You will find meditations led by mindfulness experts to executive coaches who usually charge thousands of dollars for their instruction. But with simple Habit you can manage them all at your Fingertips. So guys, please join me today to help the world reduce stress, improve focus and sleep better. The voice we heard is that the real voice on the application. We have many teachers. It's one of the teachers on our app. Do you pay people for their vote? We give 20% of our net income to our meditation teachers.How long has the business been going Now? Less than a year in your first 12 Months. Now it is less than one year since our launch, We have had more than half a million users. Use this product. We grew from zero to $ 750,000 in annual recurring revenue. Wow.

02:19 What is your own personal background? My father came to the states of Korea from the south to study engineering. My mother worked at Dunkin' Donuts to support Him and I was born. And then they went back to South Korea for a job. When I was 14, I decided to come to the states by myself to study at a boarding school in Portland, OR. I went to Duke for my undergrad, where I double majored in economics and Chinese. And my first job out of college was an investment bank. One day I had a business idea that I wanted to pursue, so I quit that job. And that's how I started my previous startup. What was this a software business, call Close it. And what happened to that company? So we sold a company a few years ago. After selling the company, I went to Stanford Business School. And it was there that I started working on simple. Keep doing more with your life. You just don't pack enough. So if you have $ 750,000 in the first year, what do you think you can get in the second year? We grew at 50% quarter over quarter. So last month we did $ 75, 000 to buy and this month. We are on track to do $ 90, 000.And what is the cost? This is a free download app, but if you have unlimited access to some of our premium content, For example meditation before an interview, meditation for engineers. 1199. Per month or 9999 per year. So how many people do the subscription service? More than 5000 subscribers as of today. Do you have a main competitor? Yes there are meditation apps out there. And in fact, that was why I started the business because most programs out there only have one teacher and it's all about his or her voice. And after a while you start to tune. So you create a collection of large amount and that differentiates you. We are a marketplace for teachers and Students.

04:08 Were you profitable or did you lose money in the first year? We have lost money even now because profitability is not our main component. When would you expect to be profitable? Isn't it nice? So we are expected to do over $ 5,000, 000 next year. How much money did you raise? We raised about $2.8 million. Oh. What? Wow, 2.8 million? Yes. For what? Percentage round was that $12 million valuation cap? We use convertible notes. How much of the 2.8 million is left? We have most of it in the bank. Today we have approximately more than 2.3. So what do you need the 600,000 of us for? I'm here because I think you guys can add so much value to it. If you think we can add so much value, why do you value our contributions exactly the same as any other investor in this note? Because that note was from many months before when we had much less Income. We didn't even have half of our team at that time. So now the The risk of the business is much lower. So what exactly do you think we can contribute? For example I think Sir Richard can help us a lot because your brand embodies coolness and coolness and it is a simple habit. You said you have over $ 2,000,000 left and you're not going to run out of cash and you're offering us 5%. What do you want us to do That for? We plan to scale users Acquisition. We are also going to start partnering a lot with celebrities and influencers because we like who.Is right there. I'm so out. I'm so out, so out, so out. Did you hear what you just said? Do you want us? Paying you and not being compensated. Basically pays us a bunch of other people, but you want us to pay you the same thing they're going to do. Can I explain?

05:56 OKAY. We would love to work with other celebrities and influencers, but from an investment perspective, you don't need the cash. It's a nice problem. She's going to get exposure to be on this show. She is a gold digger. No she is not a gold digger. You just call me a gold digger. Yes a gold digger. Yes. You know what it is? There are so many people around the country. It's standing on that carpet and they broke their **** and they sold their house and mortgaged everything they had and their kids college fund to hopefully get two $ 300,000 to run their business. Every time someone steps on this carpet who has some $ 1,000,000 in the bank, you're taking the opportunity of someone who might sell their house or sell their kids college fund and you're taking that opportunity away from them if you have a little of money elsewhere. It's so unfair. This is not right. We can only cause so many people, because if you make money from her, you have more money to give her other people. This is not the case. This show was because of people who had nowhere else to go. And you know what? I would rather give my time and opportunity to someone else who desperately needs it. I know OK, so I like meditation, I do, but I don't think you actually need to raise more money. I am not even sure that it is not responsible at this point for your Investors. While I may be a Client I will not be an Investor.I'm sorry. I'm out. That's why I have you a gold digger. It was not a personal issue. It was more about coming here not really wanting a deal, but looking for the ad. It sounds pretty personal.

07:29 I think Shot tanks for people of all kinds from different businesses and all different kinds of backgrounds. That's Funny I was talking to my son earlier today. And he learned meditation recently and he just said how great he felt. I did not meditate. I tried once and I just fell asleep and I tried to try to meditate. I would like to be converted to meditation because the people who do meditation seem much happier than the people who don't. So I would be reluctant to get involved with 600,000. Oh shocking. Oh what a hand. Shocking. Just because you on her with a fancy voice doesn't mean the same. I'm not alone. I'm about to throw water on these two guys. Could we possibly come in for 300,000 and maybe for 10%? No, Mr. Richard Branson must be 600. I think the water just has to. Let me tell you what I think. My god. Three sharks are out and things get heated between the sharks as they debate the motivation for Yuna to get into the tank with her meditation app, Simple Habit. Let me tell you what I think.

08:53 Come. My God, I'm out of here. I mean, if the show can't go on, the show can't go out. I think it's so disrespectful to say just because you've done a good job raising money. You don't deserve to be here. Everyone who can make it here deserves to be here. So welcome to the Shark Tank. Well, hold on. Richard offered you. 300,000 for 10%, you need 600,000. I will give you 300,000 also for 10%. So you have 600,000. If Richard will come in with me at 20%, at 20%, There you go. Excuse these very rude people on this panel, which of course I punished one. We'll sort out the other one in a Minute. The last thing anyone should be ashamed of is having collected good money for their Company and I think the bigger the war chest. You have the chance is good that you will reach millions of people around the world and I would like to. If I can help you reach those millions of people. I really appreciate the offer, but I do have an obligation to remain fair to some of the investors who invested in me earlier and gambled on me. I mean you have to agree that there is a value in having a shark. So I think as Markus said, we are not I, I do not feel obliged to offer at the same value. As the other investors have, with all due respect to them, we make a counter. Will you be able to do 10 million? Evaluation.Yes we are going to be the world's largest platform for health and wellness. We change people's Lives people going through cancer, going through divorce. You know, why are you crying? I simply get a lot of letters from people with whom we change our lives. And I'm not lying. We get so many letters from people who are going through difficult times in their lives. I understand this is an investment opportunity. But I really think that we can really change the world together. I love your drive with it. Of course it's deeply personal. Your counter is about 6%. I can come there. I mean I will drop to 15%. I would love to be involved in that. I don't want to speak for Richard. I am very happy to do it on that basis. You have the Wise. There is tremendous value in being here. I actually think that's what she said.

11:46 I actually think there is a value addition to your investors that you may not be taking into account. You appreciated the visibility, you appreciated the increased marketability and the value for your Product but you really didn't appreciate us. I and I get my position that The three months of yo-yo bro happy. We like to do 15%. If you want it was excited. I would love to be involved in that. I just can't do 15%. You and I think you are a little short sighted. I'm out I don't think she is short , she is doing what is right for her and her shareholders. For a company, she has the money. Congratulations on creating an incredible company. Best wishes but unfortunately I'm out. Wish you all the best. Thank you. Best wishes. Happiness. I did it because out of passion, I wanted to change many people's lives. But just to see it as a financial opportunity like that and say it is gold digger. Also felt a bit harsh. Part of what we are showing in our nine years is educating potential entrepreneurs. I do the show because children who show learn. If I this woman a gold digger, was not a disrespect towards her or her company or what she could achieve. It was the fact that she didn't care if she got a deal. She was just real Markus here. Oh no doubt. And she sees us all the time. Let's take the other Point. Hang on a second. Right. To be here. No.

13:32 What it takes to get a deal. On this show, we've seen people, especially from Silicon Valley, look at us as a growth hack. They could care less if they have our money or our expertise. They just wanted the ad. I think that's wrong. We are blowing something up completely unfairly. And she is smart. This Is Shark Tank, Right? You are here to come in and a Deal. And the whole idea that we have sharks is because we are supposed to add more value than Anything. Why can't she get the deal she wants? Tell you what I find slightly Embarrassing. We are talking about a Meditation. A meditation? We need meditation. I have a hair dryer.