Shark Tank US | Kevin Gets Pushed Out Of Simply Good Jars Deal

Summary

Jared Cannon, a chef from Philadelphia, pitches Simply Good Jars, a company revolutionizing packaged salads, seeking $500,000 for 7% equity. Offering fresh, nutritious salads in reusable jars, the business pivoted to retail during COVID-19, expanding from 4 to 230 locations. Despite current losses, Jared aims for national distribution and a $50-100 million valuation in two years. After negotiations, he secures a $500,000 investment for 10% equity from two 'sharks', combining their expertise to grow the business.

Takeaways

• 🍽️ Jared Cannon is seeking $500,000 for 7% equity in his company, Simply Good Jars, which offers healthy meal options in jars.
• 👨‍🍳 He is a chef from Philadelphia, passionate about creating exquisite meals, including a signature smoked salmon salad.
• 🥗 The product is a packaged salad that can be eaten directly from the jar, with a 9-day shelf life, aiming to revolutionize convenience food.
• 🌟 The jars are designed to be returnable, promoting sustainability and donating a meal for every jar returned.
• 📈 The business model pivoted from smart coolers in public places to retail due to the COVID-19 pandemic.
• 💸 The company has raised $2.5 million to date and is on track to do $700,000-$750,000 in revenue this year, after making $300,000 last year.
• 📉 Despite increased revenue, the company is not yet profitable and is expected to continue losing money for another year.
• 💼 Jared started the company with a $1,000 loan and currently owns 51% of the company, with a diverse cap table of other investors.
• 🤝 The sharks offer a mix of deals, including debt with interest and equity deals, with concerns about future funding rounds and company valuation.
• 📊 There's a debate among the sharks about the company's future, with some seeing potential for growth and others concerned about the financial burn rate.

Q & A

What is the name of the company seeking investment?

The company seeking investment is 'Simply Good Jars'.

How much equity is Jared Cannon offering in exchange for the investment?

Jared Cannon is offering seven percent equity in his company for the investment.

What is the amount of the investment Jared Cannon is seeking?

Jared Cannon is seeking an investment of five hundred thousand dollars.

What is the unique selling proposition of Simply Good Jars?

Simply Good Jars offers fresh, nutritious salads packed into easy grab-and-go jars that can be eaten directly from the jar or shaken to mix.

What is special about the smoked salmon salad prepared by Jared Cannon?

The smoked salmon salad is described as having pearled couscous, fennel, radish, feta, and aji amarillo vinaigrette that is claimed to be exquisite.

How does Jared Cannon plan to scale the business?

Jared Cannon plans to scale the business by taking it to national distribution within 18 months, leveraging relationships, production, and distribution.

What was the revenue of Simply Good Jars last year?

The revenue of Simply Good Jars last year was just shy of three hundred thousand dollars.

What is the projected revenue for Simply Good Jars this year?

The projected revenue for Simply Good Jars this year is between seven hundred thousand and seven hundred fifty thousand dollars.

What was the loss of Simply Good Jars last year?

The loss of Simply Good Jars last year was nine hundred thousand dollars.

How much money has Simply Good Jars raised to date?

Simply Good Jars has raised two and a half million dollars to date.

What is the current ownership stake of Jared Cannon in the company?

Jared Cannon currently owns 51 percent of the company.

What is the proposed offer from one of the sharks involving debt and equity?

One of the sharks proposed an offer to invest five hundred thousand dollars as debt at nine and a half percent interest and take seven percent equity, which would be diluted down to about four percent.

What is the final deal agreed upon by Jared Cannon and the sharks?

The final deal agreed upon was an investment of five hundred thousand dollars for ten percent equity, split between two sharks, effectively giving each shark five percent.