"Our defense contracts aren't as lucrative as we'd like, so 3 months ago we made this education program with obnoxious profit margins so we can overpay ourselves. We're VERY passionate about education." Great exposure guys.
If you or these idot investors would have listened instead of over looking them because of their age, you would have heard them say it is a great commercial idea play. They're planning on using that company to recruit the next "them". Which is a great idea.
@@polymath1666 you think smart engineers are going to see them behaving like this, bragging about how much they're ripping off their students on international tv, and still sign up for their program? It might've been a good idea on paper but they did a mighty fine job screwing it up.
That's literally your own interpretation, based on grabs of a pitch on a show deliberately edited for drama, yet you're touting it like it's the gospel truth. I'm not saying it's not true; I'm just saying you can't know that it is, and pretending you do is a tad obnoxious in itself.
Why? The sharks didn't seem to mind. I think they were far more concerned with the business details - something that has nothing to do with pocketed hands.
I doubt it, there is a lot of compliance issues involing to be part of any defence tender. Possibly they may have interest from few areas of ADF but not sure about real money being poured in from defence.
Praneet Castelino the lochie guy actually came to my school today and i just looked this up. But their program actually looks very good, and I believe the business will go well
It could've been so easy as to say "We can't discuss those military agreements, especially here, due to the Non Disclosure Agreements we signed when taking up the project." And I think that would've been more than reasonable than the Rich Kid answer he kept regurgitating
Yes it would have been. Unfortunately it doesn’t matter for them. The one boys father is Jack Cullen who serves as Vice Chairman of the Board for the Institute of Regional Security (also a retired General). Through daddy’s connections they were gifted lucrative contracts with the government. To date their “company” hasn’t contributed dick to the advancement of drone applications in warfare.
That answer would have gotten me intrigued because of the fact it's a good enough company to get the contracts with the military. When asked why, they should have responded with brand identity and promoting stem. They could have also disclosed the profit margin.
Probably the first time these four have ever been challenged and forced to explain themselves and been shown they aren't getting away with good lucks and quick thinking. Hope they enjoyed being humbled and use it going forward. Did they actually think they were on the same level as these sharks?
I just really didn't like how the leader talked in circles over the most simple of things, how they didn't even bother to demonstrate how their product works, their ridiculous valuation and then pocketing during the presentation as if to say, "I don't really need you. I know I look good on tv". LOL
keep in mind they do splice and cut a what is said. By the guys exiting comments it sounds like they probably talked more about their education business and it was cut out since it didn't fit the narrative they decided to go with for the company. Which was to show a group of guys trying to avoid questions about a business they weren't there to talk about. I found this whole thing cringey since they sharks never asked a lot of the basic questions they usually ask. Which I assumed were cut.Just a bunch of circles.
@@sirstriped5233 Pretty much. I've binged enough of this show to realize it's a drama show about pitching businesses. At least what they upload to TH-cam.
"what's the profit?" "well you see, in 1903 the Wright brothers had their first flight and then in 1957 the Sputnik was launched in to space. I was born in 1995 to my mother Karen and my father Steve, via C-section and grew up in a loving family, as a child I was paid $1 for chores which led to a revenue of $52 per year per chore with a strong margin, then I started working at McDonalds at 16 and got paid $15/hr and put that in to my Commonwealth Bank super saver account that my dad set up for me and then at uni I started my business and I was given money by people in exchange for education programs and it has a good margin and we made lots of revenue, but anyway we made some profit, definitely. " The main dude is a master of saying a lot yet saying nothing. He'll be a great businessman
Steve: the arrow point investor Janine: the nit picky investor Andrew: the smartest investor Naomi: the "I'm out" investor Glen: the hope giving investor
10:32 Holy shit... Andrew is such a fucking beast! He is nice to them and encourages them but then hes like 'I was out half an hour ago' LMAOOOOOOOOOOOOO SUCH A BEAST!
That's literal and not sarcasm. These pitches tend to run close to an hour usually. For entertainment purposes they edit to only relevant portions for tv
These kids need to learn the very important difference between confidence and arrogance. As someone who has (at least a small amount) of experience in the business world, these kids were relying on buzzwords and org charts. Smart investors and business people can look passed the technical words and just because you use them, doesn't mean you fully understand them.
Sharks started off upset because they wouldn’t openly discuss government defense contracts. But other than that then consistently dodging questions made me immediately think this was a scam
Matt W because why not applaud successful people in there 20’s.... clearly nobody can be successful without help from “mummy and daddy”.... You’ve clearly got issues in your own life you need to check 😂
@@callit3580 I mean if it's a profitable business, then that's fantastic. Unfortunately, many of these businesses have fallen to shit due to a lack of market research/asset management, etc. If they're still going, on 'em!
Nope. 4 blue ties. They're Young Liberals spending family and friends money to use their connections to get overvalued contracts for under-performing products. Kiddie version of the current defence/primary/energy Industry. They are the perfect example of why our country is screwed.... Australia is just the Western version of the Russian Oligarchy, but without the more extreme elements of "Political Persuasion"... No Fraud Charges for these kids. National Security will bury the fallout....
@@vikumwijekoon3166 the gvt contract business is the business they wouldn't discuss, except "perhaps at a later point behind the doors. " And I doubt that line was even true, just a way of saying our investors for that are secure (and the sharks additional investment would be abysmal pocket change to comparatively) and we've agreed to not disclose that info.. why they were pitching a subsidiary
Lara Russell I thought the same and just did a bit of googling. Seems like sometime prior to the federal election last year they launched a partnership with the Air Force cadets to educate the kids on using drones as a STEM program. Weirdly, they announced this under the banner or JAR aerospace, and not JAR Education the subsidiary. So I’m thinking it’s a bit of both - they probably really do have some traction on their education bit, and they technically have a partnership with government via aerospace, but it doesn’t seem like they are providing top secret tech to the Air Force.
Andrew is a proper showman. Gets on an edge of the seat, holds his book on left hand and shuts it down on thier face and he tells them they make him laugh!👍
@@alekseydrotenko3289 they more than likely got the contracts based on their ability to provide a reliable service 🤔 you know what you're probably right I'm sure the military is just handing out tons of contracts based on people's inexperience, that makes way more sense when you think about it 🙄
@@baconscoobysnacks3135 well for example here in US joe bidens brother was given a two billion dollar contract for construction in Iraq and he has never been to Iraq before and zero background in construction. and since the aussie military is our vassal I doubt they operate much different except maybe softer recruits?
@@Eric-Truong Not really. Two months of being effective and profiting isn't enough to create a reliable business valuation and unless it was cut in the edit they also never demonstrated how they got to a $5 million valuation. They said the program is 15k for the school? Lets be generous and assume that's per term not for the year, lets also be generous and say they get it into half the schools in Australia. That's less than $300k a year revenue, probably closer $200k. If its 50% profit multiplied then $150k multiplied by a P/E of 25 (upper end of normal) then that's not even $3.75mill. That's probably best case scenario and it still doesn't add up to a good investment, without even considering the huge amount of unknowns. If the investors asked for 10% its maaaybe line ball, 25% would probably be a good investment given the risk.
@@Eric-Truong the subsidiary company is being valued at 5 million dollars, it's 3 months old. That's not greed, that's prudence. Maybe the company will be a success, maybe not, but 5 million at that stage is idiotic. They have nothing that will prevent other people from doing what they are doing, even if they succeed in one year competitors will come out next which means that 5%'s value will diminish. At that price range, at that point in time and with no other math to show for it, it's a scam.
Drone business is so competitive, most Governments work in conjunction with Universities on these projects. About 5 years ago I was watching a clip about the Portuguese government working with various Portuguese Universities on their drone for military use. I think these kids realised their government model is not going very far to make money so they are searching for other avenues to make money. Also, they have lots of competitors just in Australia trying to get a slice of the government contract pie.
I got into software for the military back in the 80's, when it was the "cool" thing at the time. It's a buyer's market for the military as there are so many competing for an illusory piece of the pie. When tendering for a contract you had to make a ridiculously low estimate which you knew you could never achieve and hope that, if you won it, either a miracle would happen and you'd somehow not do it at a loss, or pin your hopes on "follow up" work, which was not guaranteed. Long hours, ridiculous stress and an (often) abusive customer. You'd be burnt out by 40 having little to show for your career. So, I think you're right. These guys have already been spooked by the defence market and are hoping the quick bucks are in "education".
Their typically juvenile arrogance makes them....I would say, if I were a minority shareholder....impossible to work with. They are a true gang and an investor does not stand a chance. I believe they will be very successful, but a gang to stay away from.....The investor will ALWAYS be an 'outsider.'
Very smart business plan. Build interest in the aerospace sector from primary school and high school levels, get your brand into the heads of the young up and coming engineers while getting your education side of the business backed by investors. Then reap the benefits from the young innovative engineers benefiting your main company when they graduate and want to enter the industry 😂
They went out of business in 2019. They only know how to talk but they don't know shit about business. I'm the same age as them and I'm a businessman. The difference is that I know what I'm doing because I planned everything for more than a year alongside a team of experts: my family. Education is of utmost importance. If a family is well educated they can enter the market in their field and crush the competition.
@@greatarabia8091 hahaha the irony. they go to a university, but not educated. they must be looks and party type of guys. they have the looks and attitude, but no brains.
@@hassansabra9392 going in there to flex WAS their whole flex; and they did it admirable well. Sure they're douchey rich kids most likely but it was priceless seeing the sharks react to their flexing.
They didn’t even demo their so called aerospace education, not to mention all the had to show for it was like a 30 dollar drone and controller you could buy off Amazon. worst pitch on shark tank so far 😂
That was the worst pitch I have ever heard on this programme. There may have been worse pitches as I have not seen all the episodes! If there is one thing that is important in business, it is focus. I have also met lots of people like this in my time.
the learning initial package was" build and fly a drone". Mate these are the jobs of the future have a look at what airspace companies are buiding and you see that almost everything, from military to civilian public transportation is going to be remotely or AI driven in the years to come. Flying a drone commercialy is already a very well paid job, for surveys, movie industry, military, etc. Its just the future, you know......
If you can't talk about something don't mention it like imagine going to business with someone they mention something and can't talk about it yeah he sounds like a jackass but people thinking their small business need that much protection is jackasses too
They asked because they were probly lied and don't bring it up if u cant tell that's like saying I got a million bucks but cant spend or let anyone see it.. bullshit
I have very lucrative contracts with Mab, the Queen of Air and Darkness, but I can't discuss them because she will freeze the flesh from my bones. But they're real, trust me!
Yet another presentation in which Im still not sure what they were 'selling.' I know there are parts always edited from these shows but it seems nobody ever just states what the product is... or Im just missing it 🤔
Seen this personality type before. Silver spoon yes. Easy to spot, based on education and speech articulation, and comfort wearing a suit. And they are well fitted suits. And the lead guy was also very intelligent. And ambitious. They are intimidating characters to be around because you can’t keep up with them in a discussion and they never have anything to lose. They are deluded to realities of life but they can thank their hardworking ans successful parents for that. Or not.
Drones. Government contracts. Political consultants. Yeah, definitely military applications. Which is why they can't say a word. But they should have just said that they signed an NDA or the organization with which they are working do not want them to talk about their aerospace product applications and operations.
Legend has it that they are all 4 still wearing matching suits with their hands in their pockets talking to their political consultants to this very day!
It's written on each of their faces, thous boys are defiantly coming form a super rich class!!! they look very well educated and smart, but I can't ignore the rich kid ignorance in each one of them!!
From what I'm understanding is there aerospace or drone business is attracting government people possibly the military. And when they're interested in anything it always has to do with defense stuff. Basically weaponizing something. If that's the case and these guys are trying to get into schools, and teaching kids about technology and drones, while potentially their drones are overseas mowing people down. I don't want them anywhere near my damn School, or affiliating with my students and anything to do with that, and I'm sure the parents would feel the same way. I mean just imagine it Raytheon had some business deals in your classroom, It just comes off as extremely shady.
Even in this edited video, it was quite clear that the main company deals with defence contracts. It is anyone's guess why the sharks thought they were going to talk about that sector openly on TV.
I worked on defence projects and despite NDAs and NDCs you can always still discuss what your business is about without discussing on specific projects. The fact that they werent even prepared to discuss how their business model works properly is a red flag
@@alfieturner3431 my point is its funded by the Government not private investors. Its a recipe for corruption and incompetence. Look at the car industry in this country. Billions were pumped into it by the clown government and GM for example, ran huge loses for years. In the end they cut and ran with our hard earned. Anything that isnt organic and market driven is a complete and utter waste of tax payer money. I could listen to an argument involving the medical sector for different reasons but thats about it.
I actually don't like Steve very much, however, on this occasion... man, I was almost jumping into the screen to teach that guy a lesson. He is smart and well spoken, but he has a long way to go in terms of business acumen and attitude.
we are super passionate about education, and cant wait to make them overpay for our educational product and bending the australian taxpayer over..... makes me sick how they all just smile after he says how fat the margins are and no one has an ethical issue with this.
The guys saying one thing at a time. Attacking focus. Having a big team to take on two projects, is fine. As long as both are profiting over a few years with good track record.
I agree. I think they should've come in with a fairer valuation, and kept their hands out their pockets. they would've left with the investment. Smart chaps, for sure
@Alpha's Path a simple math based P/E ratios, investors accept a 20:1, so $280k x 20 = $5.6M AU = overall organisation value. Margins are arbitrary as COGS would be their main problem. The subsidiary of education, 35k in 3 weeks, so their valuation is $700k AU For early investors, P/E is around 10:1 or 15:1 at best. That should summarise how off their expectations are.
The Sharks really saved these boys (who look like they've just attended a year 12 formal as the slightly older boyfriends of their private school dates) but seriously the most plausible business plan they could really have at 21 would be Year 1: Drones r cool, gets investment. Year 2: Realise all the hard work involved is not only boring but takes up too much time. Year 3: Lose interest, investors sue, mummy and daddy bail them out.
“Tad arrogant” just because someone has a different opinion and has researched on a DIFFERENT market doesn’t mean they are arrogant because they know more than you jeez
Say what you will, but Steve is the main character of the show
Steve is the Gordon Ramsay & Simon Cowell of Shark Tank Australia..😂🤣😂
Where u from mate?
He is the most clever person I've ever seen!!!
Yeah I only watch it for steve and sometimes Jeanine
he is my favorite shark from aus.
"Our defense contracts aren't as lucrative as we'd like, so 3 months ago we made this education program with obnoxious profit margins so we can overpay ourselves. We're VERY passionate about education."
Great exposure guys.
Ikr business is really going down hill woth younger generation same with education
If you or these idot investors would have listened instead of over looking them because of their age, you would have heard them say it is a great commercial idea play. They're planning on using that company to recruit the next "them". Which is a great idea.
@@polymath1666 you think smart engineers are going to see them behaving like this, bragging about how much they're ripping off their students on international tv, and still sign up for their program? It might've been a good idea on paper but they did a mighty fine job screwing it up.
@@polymath1666 Right so pyramid scheme i mean that sounds like a pyramid scheme
That's literally your own interpretation, based on grabs of a pitch on a show deliberately edited for drama, yet you're touting it like it's the gospel truth. I'm not saying it's not true; I'm just saying you can't know that it is, and pretending you do is a tad obnoxious in itself.
"Guys.... you are super super smart....I'm out". She is a savage.
Can't handle the truth
@@mccc4559 U totally got it...Haha 😂
@@jcwyu for sure bro
Smarter than her
@@gdog7391 I doubt that. Maybe when their in that chair instead of her. Til then, no dice.
It’s literally like a school group project funded by their parents
Now that I think of it, it is 😂
@@djlumi1969 and if you google them the GENERAL is his dad LOL
@@dubayyuae8696 XDD
@@dubayyuae8696 wow that makes so much more sense now.
Yeah right. A bunch of spoiled kids lol nothing else. Yet nothing behind it i‘d say „woow“…..
Guys, first tip when standing in front of five millionaires let alone potential investors: get your hands out of your pockets. 🙄
And into theirs!
Exactly!! That was the most annoying thing about them.
Why? The sharks didn't seem to mind. I think they were far more concerned with the business details - something that has nothing to do with pocketed hands.
@Darren Mcclean that's entirely arbitrary.
cocky look
If you're wondering, those sensitive parts of the bigger company they didn't wanna talk about are defense contracts with the Australian military.
Really?
I doubt it, there is a lot of compliance issues involing to be part of any defence tender. Possibly they may have interest from few areas of ADF but not sure about real money being poured in from defence.
Praneet Castelino the lochie guy actually came to my school today and i just looked this up. But their program actually looks very good, and I believe the business will go well
i call bullshit 🤣😂
Fake contracts they made it up
'I was out half an hour ago" - Andrew. What a hero.
He was enjoying their smug attitudes.
@@whyisblue923taken he's too old for thier anticks
Brilliant - never before did I hear a shark declare that they were already retrospectively out
Andrew is a straight savage
something is wrong here... Steve's first question was not about where they are from
the editors messed up
he only likes to ask when he likes the people lmao
He only asks that question when the idea is quite good.Not like the dodgy oaks.
He's not interested. He's in battle mode.
It could've been so easy as to say "We can't discuss those military agreements, especially here, due to the Non Disclosure Agreements we signed when taking up the project." And I think that would've been more than reasonable than the Rich Kid answer he kept regurgitating
Yes it would have been. Unfortunately it doesn’t matter for them. The one boys father is Jack Cullen who serves as Vice Chairman of the Board for the Institute of Regional Security (also a retired General). Through daddy’s connections they were gifted lucrative contracts with the government. To date their “company” hasn’t contributed dick to the advancement of drone applications in warfare.
That answer would have gotten me intrigued because of the fact it's a good enough company to get the contracts with the military. When asked why, they should have responded with brand identity and promoting stem. They could have also disclosed the profit margin.
Janine: "How much profit have you made?"
Frat bro: "Really good, thanks. Above and beyond."
makes sense like most frat guys hahaha
Came for Steve, stayed for Steve; wasn't disappointed.
Thanks Steve.
Probably the first time these four have ever been challenged and forced to explain themselves and been shown they aren't getting away with good lucks and quick thinking. Hope they enjoyed being humbled and use it going forward. Did they actually think they were on the same level as these sharks?
I just really didn't like how the leader talked in circles over the most simple of things, how they didn't even bother to demonstrate how their product works, their ridiculous valuation and then pocketing during the presentation as if to say, "I don't really need you. I know I look good on tv". LOL
keep in mind they do splice and cut a what is said. By the guys exiting comments it sounds like they probably talked more about their education business and it was cut out since it didn't fit the narrative they decided to go with for the company. Which was to show a group of guys trying to avoid questions about a business they weren't there to talk about. I found this whole thing cringey since they sharks never asked a lot of the basic questions they usually ask. Which I assumed were cut.Just a bunch of circles.
did any of them clock in above 5'9? lol
@@alekseydrotenko3289 relevance?
@@alekseydrotenko3289 braindead thinking about people's hieght all the time
@@sirstriped5233 Pretty much. I've binged enough of this show to realize it's a drama show about pitching businesses.
At least what they upload to TH-cam.
So they resell Chinese drones with an information pack for schools...
With English manual
Yup . They basically sell an unfinished product from China and and let the customers builder them instead . They such conmans
but what isnt made in china these days
@@RocksmithPdl corona 😄
@@MrNaveen48 i mean corona *did* come from china
"what's the profit?"
"well you see, in 1903 the Wright brothers had their first flight and then in 1957 the Sputnik was launched in to space. I was born in 1995 to my mother Karen and my father Steve, via C-section and grew up in a loving family, as a child I was paid $1 for chores which led to a revenue of $52 per year per chore with a strong margin, then I started working at McDonalds at 16 and got paid $15/hr and put that in to my Commonwealth Bank super saver account that my dad set up for me and then at uni I started my business and I was given money by people in exchange for education programs and it has a good margin and we made lots of revenue, but anyway we made some profit, definitely. "
The main dude is a master of saying a lot yet saying nothing. He'll be a great businessman
100% even the website is written the way he talks
Or politian
That's where you're wrong. He'll be a great corrupt politician ;)
Politician not businessman
I wish mark cuban was there to put them in their position theres a difference between intelligent people and good talkers
Also Kevin O’Leary ?
Right? But they weren’t even good talkers! Just vague and constantly dancing around the topic
@@Harppuunamies Mr. Wonderful wouldn't even make an attempt to say 'I'm Out'.
He'd say 'NO'. Just 'NO'.
Or just intelligent.
Steve: the arrow point investor
Janine: the nit picky investor
Andrew: the smartest investor
Naomi: the "I'm out" investor
Glen: the hope giving investor
Good cop bad cop but more cops with more plans
Facts
Every shark tank and dragons den comment section has to have that one person who makes a comment like this. It’s tired.
The way the other 3 just nod and look at that one kid reminds me of group presentations at school 😂😂
10:32 Holy shit... Andrew is such a fucking beast! He is nice to them and encourages them but then hes like 'I was out half an hour ago' LMAOOOOOOOOOOOOO SUCH A BEAST!
"I was out half an hour ago but anyway" lmao
That's literal and not sarcasm. These pitches tend to run close to an hour usually. For entertainment purposes they edit to only relevant portions for tv
These kids need to learn the very important difference between confidence and arrogance.
As someone who has (at least a small amount) of experience in the business world, these kids were relying on buzzwords and org charts. Smart investors and business people can look passed the technical words and just because you use them, doesn't mean you fully understand them.
They all were out when he said the word " Political consultant "😭🤣🤣🤣🤣🤣🤣🤣🤣🤣
They all would've invested in the other business - because government contracts can make you insanely rich.
Probably a family member
@@rosstrue1 You mean a corrupt family member
@@alanc975 one of the kids dad is partly responsible for goverment contracts
The level of sarcasm throughout the whole sequence; left, right and centre: 20,000.
Sharks started off upset because they wouldn’t openly discuss government defense contracts.
But other than that then consistently dodging questions made me immediately think this was a scam
Mr Wonderful would have a field day.
AW MAYNEEE. A FIELD DAY!!!!
Mr Wonderful would’ve made those boys cry 😂
ROFL
Barbara: and, for that reason, I'm out.
Mr. Wonderful wouldn't even make an attempt to say 'I'm Out'.
He'd say 'NO'. Just 'NO'.
"What kids have political advisors?"
Rich kids with really rich parents.
And maybe smart
@@siddhantdhanve5111 Nah, mommy and daddy are taking care of everything for them
30k sales, 5 million valuation. Is this the craziest offer in shark tank history?
Completely totally uterlly absurd.
Probably the most insane worldwide
Love Steve and Andrew. Andrew is lowkey like the dad watching kids doing school presentations and Steve has a great brain
definitely four upper-class boys who had immense financial backing from mummy and daddy
Matt W because why not applaud successful people in there 20’s.... clearly nobody can be successful without help from “mummy and daddy”.... You’ve clearly got issues in your own life you need to check 😂
be quiet
I don't have any issues haha. I'm working in a full-time post-grad position with a decent salary. Just pointing out the obvious to girls like you
I’m just saying even with the financial backing, deciding to start a business at that age is fantastic.
@@callit3580 I mean if it's a profitable business, then that's fantastic. Unfortunately, many of these businesses have fallen to shit due to a lack of market research/asset management, etc. If they're still going, on 'em!
If a business was valued by smugness instead of money - these guys would be General Electric.
As far as I know General Electric went bust long ago.
@@michaelolson6982 That was General Motors.
Haha. Right? Its their youth and experience. They're just trying to look cool in their suits.
@@bellmeisterful I mean tbh they were being smart. Why would you want to blab about your company to the vast public
"Education" is a hook for them... watch the news for their future fraud charges.
Nope. 4 blue ties. They're Young Liberals spending family and friends money to use their connections to get overvalued contracts for under-performing products. Kiddie version of the current defence/primary/energy Industry. They are the perfect example of why our country is screwed.... Australia is just the Western version of the Russian Oligarchy, but without the more extreme elements of "Political Persuasion"...
No Fraud Charges for these kids. National Security will bury the fallout....
They’re trying to line their pockets with government grants. They should stick with the actual industry they’re in and be content with that.
No, no, no ... that means fair competition, government means daddy and mummy.
These guys remind me of the cocky, soulless young finance guys in "American Psycho"
Brybeats just watched that for the first time last week and I agree.
His character was based off kids like this exactly.
“That’s raised, what’s the profit?” LMAOOOO
Literally the most EXTRA EXTRA pitch that I have ever heard! Policial consultants for a bunch of teenage boys??? What a day 😂😂😂
“theres a little intimidation but I hope it goes both ways” uhhh why would they he intimidated by you.....
Maybe because of drone attack :eyes:
You most likely have a goverment level NDA and youre obeying it... And for that reason ... Im out.
Aliman _ lol yup
Exactly. Ignorance at its finest. These guys are so impressive for their ages!
If they have a government contract, maybe they shouldn't go to a fucking live telecasting program to get funding
@@vikumwijekoon3166 the gvt contract business is the business they wouldn't discuss, except "perhaps at a later point behind the doors. " And I doubt that line was even true, just a way of saying our investors for that are secure (and the sharks additional investment would be abysmal pocket change to comparatively) and we've agreed to not disclose that info.. why they were pitching a subsidiary
Lara Russell I thought the same and just did a bit of googling. Seems like sometime prior to the federal election last year they launched a partnership with the Air Force cadets to educate the kids on using drones as a STEM program. Weirdly, they announced this under the banner or JAR aerospace, and not JAR Education the subsidiary. So I’m thinking it’s a bit of both - they probably really do have some traction on their education bit, and they technically have a partnership with government via aerospace, but it doesn’t seem like they are providing top secret tech to the Air Force.
You can tell it wasn’t going to go well by their comments in their intro “It’s gonna be a feeding frenzy. Everyone’s gonna want a piece”
Andrew is a proper showman. Gets on an edge of the seat, holds his book on left hand and shuts it down on thier face and he tells them they make him laugh!👍
5:41 Inturrepting the investors you want. These kids sound like their ego is through the roof and the lack of experience is apparent.
but their rich parents are so proud of the act!!!
Lack of experience? They're in business with the government/military and pitching a 2nd business...so inexperienced
@@baconscoobysnacks3135 noone said they got the government/military contracts based on their presentation skills
@@alekseydrotenko3289 they more than likely got the contracts based on their ability to provide a reliable service 🤔 you know what you're probably right I'm sure the military is just handing out tons of contracts based on people's inexperience, that makes way more sense when you think about it 🙄
@@baconscoobysnacks3135 well for example here in US joe bidens brother was given a two billion dollar contract for construction in Iraq and he has never been to Iraq before and zero background in construction. and since the aussie military is our vassal I doubt they operate much different except maybe softer recruits?
I think Steve’s advice was incredible. Can’t put a price on that, well possibly lots of millions if they take it.
This has been covered below.. but you never stand in front of an investor with your hands in your pockets !!!!
Of course! You want your hands inside HIS pockets!
Kinda sad they just use the show for exposure. They seem a bit too calculated for my liking
Jared M sharks were greedy, these people wanted an investment in their subsidiary, sharks wanted a piece of the parent company
Don't go on TV and not be transparent then
@@williamscott-ryan1538 lol not like they can just talk about their military contracts on tv
@@Eric-Truong Not really. Two months of being effective and profiting isn't enough to create a reliable business valuation and unless it was cut in the edit they also never demonstrated how they got to a $5 million valuation.
They said the program is 15k for the school? Lets be generous and assume that's per term not for the year, lets also be generous and say they get it into half the schools in Australia. That's less than $300k a year revenue, probably closer $200k. If its 50% profit multiplied then $150k multiplied by a P/E of 25 (upper end of normal) then that's not even $3.75mill.
That's probably best case scenario and it still doesn't add up to a good investment, without even considering the huge amount of unknowns. If the investors asked for 10% its maaaybe line ball, 25% would probably be a good investment given the risk.
@@Eric-Truong the subsidiary company is being valued at 5 million dollars, it's 3 months old. That's not greed, that's prudence. Maybe the company will be a success, maybe not, but 5 million at that stage is idiotic. They have nothing that will prevent other people from doing what they are doing, even if they succeed in one year competitors will come out next which means that 5%'s value will diminish. At that price range, at that point in time and with no other math to show for it, it's a scam.
I was waiting for them to compare their business cards the entire time
Impressive very nice let's look at Paul Allen's buisness evaluation
@@sadsworth4605 Patrick: Paul who?
Who has the biggest one?!? 😮🎉
This was one of the funniest episodes ever😂
"You guys should be concealing weapons, you're from a different planet" 🤣😂😂
Drone business is so competitive, most Governments work in conjunction with Universities on these projects. About 5 years ago I was watching a clip about the Portuguese government working with various Portuguese Universities on their drone for military use. I think these kids realised their government model is not going very far to make money so they are searching for other avenues to make money. Also, they have lots of competitors just in Australia trying to get a slice of the government contract pie.
I got into software for the military back in the 80's, when it was the "cool" thing at the time. It's a buyer's market for the military as there are so many competing for an illusory piece of the pie. When tendering for a contract you had to make a ridiculously low estimate which you knew you could never achieve and hope that, if you won it, either a miracle would happen and you'd somehow not do it at a loss, or pin your hopes on "follow up" work, which was not guaranteed. Long hours, ridiculous stress and an (often) abusive customer. You'd be burnt out by 40 having little to show for your career.
So, I think you're right. These guys have already been spooked by the defence market and are hoping the quick bucks are in "education".
“ my net worth is only 500,000 and I’m actually just on this show to pay my bills, and for that reason I’m out.” - Naomi
"It's 50,000,000 actually. But I'm out anyway." -Naomi
her networth says its 40,000,000 . idk where you got 500k from
500,000 hundreds
Steve is right. Be the reason the military spends 250k on a “stapler” and 300k on “paper clips”, then toss 1-2m of your 100m profits into education
The 4 acting over smart stoogies looked more like gangsters then entrepreneurs with hands in their pockets
Not saying the hands in their pockets isn't rude but gangsters? I'm gonna say no to that one. punks perhaps would be a better fitting word.
Barbara: I'm not on this show and for that reason I'm out
qtCambers as unoriginal of a comment as it gets
Jenny:… I’m out
@@romanbab1506, said the unoriginal comeback to the unoriginal comment.
I mean I that it was pretty funny, Daaamn.
Has Jenny changed her name to Barbara?
Their typically juvenile arrogance makes them....I would say, if I were a minority shareholder....impossible to work with. They are a true gang and an investor does not stand a chance. I believe they will be very successful, but a gang to stay away from.....The investor will ALWAYS be an 'outsider.'
Okay boomer.
"Hi sharks, im chad, this is chad, chad, and chad"
Very smart business plan. Build interest in the aerospace sector from primary school and high school levels, get your brand into the heads of the young up and coming engineers while getting your education side of the business backed by investors. Then reap the benefits from the young innovative engineers benefiting your main company when they graduate and want to enter the industry 😂
You said reap.... you mean rape. What a joke of four dicks, they are nothing more than that
They went out of business in 2019.
They only know how to talk but they don't know shit about business.
I'm the same age as them and I'm a businessman. The difference is that I know what I'm doing because I planned everything for more than a year alongside a team of experts: my family.
Education is of utmost importance. If a family is well educated they can enter the market in their field and crush the competition.
@@greatarabia8091 hahaha the irony. they go to a university, but not educated. they must be looks and party type of guys. they have the looks and attitude, but no brains.
@@greatarabia8091education means zero without capital. That's the real truth.
I went to school with these guys, rich private school kids with mummy and daddy making phone calls for them
everyone knows them. nobody knows you. Jealous?
@@DW_Teknos Who's everybody?
Wouldn't that make you a rich private school kid too?
They didn’t need an investment. They come from money, and plenty of it from the looks of things. They came for the recognition.
this was the biggest flex, making sharks feel like mice
You dont "flex" infront of potential investors...
@@hassansabra9392 i agree with you
@@hassansabra9392 going in there to flex WAS their whole flex; and they did it admirable well. Sure they're douchey rich kids most likely but it was priceless seeing the sharks react to their flexing.
@@jimitolkens3452 they're most probably there for free marketing.
You seriously simping for these clowns 😂
Jeez you are pathetic
They didn’t even demo their so called aerospace education, not to mention all the had to show for it was like a 30 dollar drone and controller you could buy off Amazon. worst pitch on shark tank so far 😂
Hands out of your pockets m8
I want to see mark and Kevin's reaction on this product 😂😂
4 guys coming into the room only one talks- the other ones just standing there lol
He need to support for his ego and testatorent
Its like the cheerleader effect but for guys
That was the worst pitch I have ever heard on this programme. There may have been worse pitches as I have not seen all the episodes! If there is one thing that is important in business, it is focus. I have also met lots of people like this in my time.
I’m still confused to what it is they’re presenting. How is learning to build a fly a drone valuable?
Aerospace engineering education...
the learning initial package was" build and fly a drone". Mate these are the jobs of the future have a look at what airspace companies are buiding and you see that almost everything, from military to civilian public transportation is going to be remotely or AI driven in the years to come. Flying a drone commercialy is already a very well paid job, for surveys, movie industry, military, etc. Its just the future, you know......
You guys are super super smart so I’m out 😂😂
“A little bit of intimidation but I hope that goes both ways” Definitely a flex
This just screams "One Direction Gone Business".
I met Steve in person a while ago. Seeing this I like him now :) Lesson #1 - never ever appear arrogant during a pitch.
6:05 Yes it is very rude to not tell us about your government contracts and top secret inside info on national TV.... so rude.
Same thoughts. These billionaires showed a dumb part of themselves here.
If you can't talk about something don't mention it like imagine going to business with someone they mention something and can't talk about it yeah he sounds like a jackass but people thinking their small business need that much protection is jackasses too
They asked because they were probly lied and don't bring it up if u cant tell that's like saying I got a million bucks but cant spend or let anyone see it.. bullshit
I have very lucrative contracts with Mab, the Queen of Air and Darkness, but I can't discuss them because she will freeze the flesh from my bones. But they're real, trust me!
6:00 *
9:53 turn on captions
good catch :D
youtube snitching on their "drone" business lol
Lol
Thank you
What did I miss?
Yet another presentation in which Im still not sure what they were 'selling.' I know there are parts always edited from these shows but it seems nobody ever just states what the product is... or Im just missing it 🤔
"I feel intimidated but I hope that goes both ways." Wow thats a bit cocky.
I never trust a guy with healthy hair..
😂
Your comment reminded me of "jerk nails."
If anyone’s wondering I believe they went under, the domain is gone and they stopped posting on their social accounts 4 years ago
Seen this personality type before. Silver spoon yes. Easy to spot, based on education and speech articulation, and comfort wearing a suit. And they are well fitted suits. And the lead guy was also very intelligent. And ambitious. They are intimidating characters to be around because you can’t keep up with them in a discussion and they never have anything to lose. They are deluded to realities of life but they can thank their hardworking ans successful parents for that. Or not.
I was like "This main guy didn't say anything worth a damn!"
They aren't intimidating mate it's being forced and any guy anywhere would know it
Jenny walks in: “oh shit, wrong building, wrong show.... where am I? .. I’m out.”
50 Shades of Smug.
Lol You just have to love the children of the oligarchs......
The Court Of Public Opinion Oligarchs are Governments with multiple people as leaders...
@@MPHshoots No, that's an oligarchy. An oligarch is one of the members.
@@ifwecouldvote My pizza was too oligarchy.. wait no, that's garlicy.. hmm
Drones. Government contracts. Political consultants. Yeah, definitely military applications. Which is why they can't say a word.
But they should have just said that they signed an NDA or the organization with which they are working do not want them to talk about their aerospace product applications and operations.
Andrew knew right away this deal was very complicated when they mentioned X-Army connections.
Legend has it that they are all 4 still wearing matching suits with their hands in their pockets talking to their political consultants to this very day!
It's written on each of their faces, thous boys are defiantly coming form a super rich class!!! they look very well educated and smart, but I can't ignore the rich kid ignorance in each one of them!!
From what I'm understanding is there aerospace or drone business is attracting government people possibly the military. And when they're interested in anything it always has to do with defense stuff. Basically weaponizing something. If that's the case and these guys are trying to get into schools, and teaching kids about technology and drones, while potentially their drones are overseas mowing people down. I don't want them anywhere near my damn School, or affiliating with my students and anything to do with that, and I'm sure the parents would feel the same way. I mean just imagine it Raytheon had some business deals in your classroom, It just comes off as extremely shady.
Even in this edited video, it was quite clear that the main company deals with defence contracts.
It is anyone's guess why the sharks thought they were going to talk about that sector openly on TV.
I worked on defence projects and despite NDAs and NDCs you can always still discuss what your business is about without discussing on specific projects. The fact that they werent even prepared to discuss how their business model works properly is a red flag
2 million for the parent company, and 5 million for the subsidiary ...lol
Smells of government grants, hate those types of businesses.
Smells of large military contracts that legally cant be spoken about. Those usually end up making billions lol
@@dantback kick started by a government grant. Daddy has connections.
Dom Lipski the government isn’t running the business though is it? They are still the ones doing the hard work
@@alfieturner3431 my point is its funded by the Government not private investors. Its a recipe for corruption and incompetence. Look at the car industry in this country. Billions were pumped into it by the clown government and GM for example, ran huge loses for years. In the end they cut and ran with our hard earned. Anything that isnt organic and market driven is a complete and utter waste of tax payer money. I could listen to an argument involving the medical sector for different reasons but thats about it.
Grants are given to research projects and PR ventures, not to people under contract.
These kids seem like they came straight out of the movie War dogs!
5:25
Lol, after he said this they reached their hands into their pockets. Felt like they were gonna pull out a gun, as he mentioned concealed weapons.
They obviously have connections! Somebody's daddy works in aerospace and/or governm. They definitely all went to good schools.
yeah, never seen such silver spoons.
Simon Sozzi EXACTLY
St Joseph's College Hunters Hill, one of the top 10 most expensive schools in NSW.
I actually don't like Steve very much, however, on this occasion... man, I was almost jumping into the screen to teach that guy a lesson. He is smart and well spoken, but he has a long way to go in terms of business acumen and attitude.
I was out probably half an hour ago. Lol, OKAY! 😂
I love watching this again and again. They are comical. Real comedians.🤣🤣🤣🤣🤣 I can't stop laughing every time I watch this.
Conceited rich kids, disrespecting elders with hands constantly in their pockets!
They only wanted TV fame and publicity, not funding.
They weren’t looking for an investment. As Mark Cuban would say, “Shark Tank Gold Diggers.” But they’re really smart, so good for them!
Dress as Nerds NOT as Wall Street SCAMMERS.
These guys didn’t come on the show to make a deal, they came on the show to get exposure
Take your hands out your pockets 🤪🥴
whoa settle down richard branson
we are super passionate about education, and cant wait to make them overpay for our educational product and bending the australian taxpayer over..... makes me sick how they all just smile after he says how fat the margins are and no one has an ethical issue with this.
The funniest thing is the little classroom they have set up behind them with pre-fab drone kits on the desks.
The guys saying one thing at a time.
Attacking focus.
Having a big team to take on two projects, is fine. As long as both are profiting over a few years with good track record.
I agree. I think they should've come in with a fairer valuation, and kept their hands out their pockets. they would've left with the investment. Smart chaps, for sure
@Alpha's Path a simple math based P/E ratios, investors accept a 20:1, so $280k x 20 = $5.6M AU = overall organisation value.
Margins are arbitrary as COGS would be their main problem.
The subsidiary of education, 35k in 3 weeks, so their valuation is $700k AU
For early investors, P/E is around 10:1 or 15:1 at best. That should summarise how off their expectations are.
The Sharks really saved these boys (who look like they've just attended a year 12 formal as the slightly older boyfriends of their private school dates) but seriously the most plausible business plan they could really have at 21 would be
Year 1: Drones r cool, gets investment.
Year 2: Realise all the hard work involved is not only boring but takes up too much time.
Year 3: Lose interest, investors sue, mummy and daddy bail them out.
“Tad arrogant” just because someone has a different opinion and has researched on a DIFFERENT market doesn’t mean they are arrogant because they know more than you jeez
7:15 He actually compared himself to Branson lmao