Square Wants to Give You Money and a Shark Tank Deal Gone Sour

Details on Real Biz with Rebecca Jarvis 5.28.2014.
11:08 | 05/28/14

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Transcript for Square Wants to Give You Money and a Shark Tank Deal Gone Sour
Hello and welcome to real -- I'm Rebecca Jarvis here in New York City and here's what's happening today. -- -- Line with the man behind two multi billion dollar tech ventures Jack Dorsey -- -- in it for the long haul with his mobile payment company square. And he tells me all about his new way to get small companies some cash also ahead. A shark tank deal and then no deal the brains behind -- holly is here to explain. This morning mobile payment company square announcing a plan to give small companies thousands of dollars to help them build out their businesses. It's called square capital and according to CEO Jack Dorsey. It lets -- start -- to get cash without dealing with a backache. I sat down with the man who brought you Twitter and now square for a one on one about the new venture the future of square and much more Nicholas. But the biggest -- for any seller is access to capital doesn't matter how -- are helping you are. Just getting access to capital to grow so we wanted to build a very simple service that works right and square register. Seat unless we're registering you run your business -- and then you have the option to take in advance of working capital. And you. You can use that to buy inventory can buy equipment in this particular case Kathy Karpin York city. They opened the store and -- terminal and some six location. And the way this is payback there's just swiping your customer's credit cards we -- -- design something that actually worked in the course of your business. -- -- case -- Kathy crappy they are literally paying this money this advance back. Two square by a percentage of their sales over time. Just by swiping their customers' records just by doing a business. Event it's been. A lot of small businesses will go out and trying get a loan which can take. Lots and lots of time -- can be very time consuming and you don't know what the end game will be you don't know you're gonna get the money -- not here. You're guaranteed to get the money. In this particular case. Just in your registry have a little fun. And it and you get access to capital inside the next business morning concern easing concern spending. And then you just payback after customers fired guns fire services Soviet news and -- course your business but the most important -- this. Thanks to its fair and it's a -- parents. Process. So you know how to predicts what will be spending and we're gonna. When you -- my -- How is it fair what what what is somebody paying -- access to this money. Security get a cash advance. 101000 dollars you might be -- -- thousand dollars. Another merchant cash advance service typical do you get -- 101000 dollars and you could be paying 181000 dollars. So it's fair chance parents and it's -- lowest just like we did return what some are sent -- enable people to access credit cards. So so in the number that somebody could expect to have to pay if their interests for example in in those news. It hurts -- an aggressive isn't so what do pay more when the businesses aren't really -- -- back faster. And unless one of -- sort of fact sheet is flexible with your business so you've had more going to business during world you can affect us -- us. And you don't think about it as a long. In the -- about Islam is that because of the way that the loan business would be regulated so which is required different types of work by -- part it would require a little bit more infrastructure. This is just fast it's easy it's understandable and that she works -- mark thanks good morning what's the end game. Per square. There's an end game we wondered why are you selling your -- -- now. When you're not gonna sell anybody we are independents is as you -- -- us we are not selling. And -- an -- because we are from -- Bring nothing to payment device and needs and a device that comes across the -- want to make sure that our merchants can accept it because that means there's always make San. And we're building a registered service for and we're building something six in the cloud is with you everywhere and sits on account ericsson's senior policy. An election to run your business from from anywhere but also gives -- services like access to working capital instantly. We're not focused on valuations -- acquisitions room where the market work focus on building a great business. And that's exactly what we're. That you are forecasting yourself to be profitable next year we will be profitable. Next year morning giving -- If you want to hold yourself to be profitable -- certain today no way in Providence about -- the business of making food program room and that's exactly. And how the cash flow but has screen you're you're not end there there's been some articles. About the fact that you're just burning through cash. I mean so any. Any business. That grows. -- -- friends and and a lot of businesses. Especially in our sector. State investment from -- -- to grow as quickly as possible uses. But fairly standard practice. I think one of the biggest. Aspects of this was I was school. And a lot of venture capitalists and business model for six years and then became the most profitable company in the world so. These things happen very quickly put in us essentially carefully in this capital to grow just like our businesses just like ourselves you. You -- -- on people's hands. And the people running these businesses and an experiment succeed. -- you don't come on real bids without doing our real -- rapid fire first it was buffet and human. Now Jack Dorsey is -- Ready program OK what book is on your nightstand these programs -- -- -- -- your Twitter must. And what's -- guilty pleasure. Should Mark McGwire be in the hall of fame. Yes. You know you love the cardinals if you drink Budweiser. Don't think -- a lot of there. If you could have lunch with one of these two guys who hippie -- -- -- -- I think -- both fascinating people. Jeff cable TV and. Have you ever had you can see it now -- you never cut the court your court never. Right now record in the -- -- Do you watch team. I went through reason and favorite -- house. -- -- -- -- -- -- -- Now off camera he told us of course real business -- favorite show any watches it regularly. I kid but he does like real office. Okay now entered US startup that went into the shark tank and got a deal on the show. And it fell apart. The company is in -- holly they make cinnamon rolls but there's a twist. These rules are begin and there are also lactose and cholesterol free and here to tell us all about the company in life after shark tank is -- -- -- the -- in pockets and I thank you Larry and thank -- -- -- -- I have to say these look delicious eye on its face he would never know they were eight. That is absolutely the trick about it so so what kidnapped. You know it's what's not. -- them they have there's no dairy in no way -- them therefore making them. Making them very free make them lactose free and also making making them cholesterol yeah. And less calories and you got the deal and sharks that's correct we we took the deal on the show. And we didn't follow -- I can't disclose any details why. But I can say that we took -- we took the deal and so the Robert and even though he didn't sign the deal without -- we didn't and the deal with them. And his team has been more than amazing helping us out reaching out even before the -- -- and we knew. They knew they didn't have to deal with us. They reached out and -- super helpful enough that they can do anything to help us which was fantastic I was blown away by that so maybe that's because they really believe that you. Maybe. I think he's just a very very nice and Smart -- -- that's so take us behind the scenes -- shark tank you're on the show. Big yet. You get the deal yes that was also -- thing I got that adrenaline rush was really -- the was. Going on there it felt like jumping out of -- -- -- kind of because that's what it felt like but being on the show us some of the cameras term we actually come down quite a bit I figured an island just helps you. You know. Not realizing that there's millions of people watching and how much does life change afterwards and a lot that the -- -- of the show air we headlines out the door. There were people standing in line for sixty minutes waiting to place -- -- -- and then another 25 minutes until the rules were prepared. We had a hostile -- -- the line and just talk to people and -- them on the doing everybody was just amazing celebrating everybody and I -- yet exactly. An outage trial that begins sentiment -- absolutely so there is the terms tucked into effect of the real thing it's really incredible why -- get. -- and well I'm an ethical -- -- I I would be in twelve years ago and just for ethical reasons. But there's so many other reasons right now -- -- one of the strongest reasons -- to environmental reasons there is no way we can sustain our environment by relying on animal products. That's just not happening. Okay expect and make this taste delicious -- and I I wouldn't know that it was without. Be what I would consider to be fundamental ingredients of -- cinnamon girl. Now you want to become franchise exact want to turn this into something that people can take an open up at malls in their own city yes hi Kennedy that. Well here's the thing right now we we created a national -- by being instructing everybody saw us and what we doing now to each other band. As we do shipping so he can go to our website you can ought to box like this. -- we ship it to your dog that way we have a brand that we you know is available all over America. Which gives us the advantage of being in national band and then we -- franchises from this we teamed up with the very great -- -- who knows what they're doing with franchising and was helping us to scale. And that the deal -- -- ideas in five years -- -- half a hundred locations up and running in the United States. Even army and they still have calories about lessening calorie count -- -- Well the calorie let let me put it that way I don't get it disclaimer but it does Kelly flat cap it's about a 150 less than our biggest competitor which -- less -- Iran and we have like. 400 if so it like 600 calorie wanted to become record in fifty calories OK so you're you're winning on some levels but it's still 450 calorie up well you can claim its healthy. I'm and we don't do that but I think it's if you -- to enroll that the healthier. Alternative and that's more environmental front in the alternative it's been -- the animals and that's you know it's I think opponents and that it's called that a hot. And all -- holly you're Florian Radke the founder congratulations thank you some -- after shark tank still looks good to us and -- attempt. Exploration and thank you for joining us for real -- -- what is hear from you. Are you -- -- -- who likes meat and food tweet us your favorite dish at -- -- with RJ and until next time. This is -- -- artist from New York.

This transcript has been automatically generated and may not be 100% accurate.

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