Wild Earth Has A Valuation of $11million With ZERO Sales! | Shark Tank US | Shark Tank Global

Summary

Ryan Bethencourt, CEO of Wild Earth, pitches a plant-based dog food made with Koji, aiming to revolutionize the pet food industry by offering a sustainable and protein-rich alternative. Seeking $550,000 for a 5% stake, Ryan faces skepticism from investors about his company's $11 million valuation, given that Wild Earth has yet to make sales. Despite challenges, Mark Cuban offers a deal for 10% equity, valuing the company lower, which Ryan ultimately accepts. The pitch highlights Wild Earth's potential to disrupt the $30 billion pet food market with an innovative, eco-friendly product.

Takeaways

• 😀 The CEO, Ryan Bethencourt, pitches Wild Earth, a biotech company creating cultured protein dog food using Koji, a sustainable and human-grade ingredient.
• 😀 Wild Earth's primary goal is to offer an alternative to traditional pet food, focusing on sustainability, ethical sourcing, and protein-rich, meat-free ingredients.
• 😀 Koji, traditionally used in foods like miso and soy sauce, is rich in amino acids and essential proteins, making it a viable source for pet food.
• 😀 The company is seeking a $550,000 investment in exchange for 5% equity to scale up production and commercialization of its product.
• 😀 Wild Earth is targeting the $30 billion US pet food market, focusing on eco-conscious pet owners concerned about their pets' health and the environmental impact of traditional pet food.
• 😀 Despite extensive research and development, Wild Earth has not yet made significant sales, leading to skepticism about its $9.5 million post-money valuation.
• 😀 Investor skepticism is primarily driven by the lack of proof of concept, with no major sales or market traction yet.
• 😀 Investors like Kevin O'Leary express concerns about the high valuation, the premium pricing of the product, and the risk of failure due to untested demand.
• 😀 Mark Cuban shows interest but offers a counter-deal of $550,000 for 10% equity, signaling a need for a more scalable and proven concept to justify the original valuation.
• 😀 Ultimately, Mark Cuban agrees to the deal, marking a potential turning point for Wild Earth, but with conditions to ensure the company's growth and scalability.

Q & A

What is the main product that Wild Earth offers?

Wild Earth offers cultured protein dog food made from Koji, an ingredient used in miso, soy sauce, and sake. This protein is rich in essential amino acids and provides a sustainable, cruelty-free food source for dogs.

Why is Ryan Bethencourt concerned about traditional pet food?

Ryan is concerned about the high number of unpronounceable ingredients in pet food, frequent recalls, pet obesity caused by fillers and fats, and the environmental pollution associated with traditional pet food production.

What is Koji, and why is it used in Wild Earth's dog food?

Koji is a fungus used in fermented foods like miso and soy sauce. It is rich in protein and contains all ten essential amino acids required by dogs, making it an ideal ingredient for Wild Earth's cultured protein dog food.

What was the initial investment Ryan sought for Wild Earth on Shark Tank?

Ryan sought $550,000 in exchange for 5% equity in Wild Earth during his pitch on Shark Tank.

How does Wild Earth’s production process differ from traditional pet food?

Wild Earth uses a biotech process to grow Koji in bioreactors, unlike traditional pet food production, which often relies on animal-based proteins and fillers. This process is more sustainable and ethical.

Why did some of the Sharks express skepticism about investing in Wild Earth?

The Sharks were skeptical due to the high valuation of $9.5 million, the lack of sales or proven market success, and the premium price point of the product, which they felt could limit consumer adoption.

What was the main concern regarding the price of Wild Earth’s product?

The main concern was the premium price point, with Ryan stating that their treats would sell for $12.99, significantly higher than traditional dog treats, and their kibble would likely cost around $40 per bag.

How much equity did Mark Cuban offer in exchange for the $550,000 investment?

Mark Cuban offered $550,000 for 10% equity in Wild Earth, which was a higher stake than Ryan initially proposed.

What was Ryan's background in biotechnology before founding Wild Earth?

Ryan Bethencourt is a biotech entrepreneur with experience in cellular agriculture. He co-founded IndieBio, the largest biotech accelerator in the world, and was involved in the biohacker movement.

What is the target market for Wild Earth’s products?

The target market for Wild Earth's products is pet owners looking for healthier, more sustainable, and ethical alternatives to traditional pet food. The company aims to disrupt the $30 billion pet food market in the U.S. alone.