These 3 Pitches Will Make You HUNGRY | Shark Tank US | Shark Tank Global

Summary

In this *Shark Tank* episode, Michael pitches his plant-based jerky business, seeking $300,000 for 10% equity. Despite a strong product and high margins, the sharks negotiate aggressively. Lori and Blake propose 30% equity, while Mark offers 20%. Michael is hesitant to give up too much ownership but ultimately agrees to Mark's offer of 15% equity for the investment. The deal is finalized with Mark, who is excited about the company's growth potential, though there is playful tension among the sharks during the negotiations.

Takeaways

• 😀 The entrepreneur, Michael, is seeking a $300,000 investment for his plant-based jerky business.
• 😀 The company currently has a 77% profit margin, but Michael is projecting minimal profit with only $1,000 netted so far this year.
• 😀 Investors are considering equity offers of 20-30% for the $300,000 investment.
• 😀 The business is valued at a stage where significant growth is needed to make a return on investment, especially for equity offers above 10%.
• 😀 Michael receives an offer from Lori and Blake for 30% equity, focusing on leveraging their relationships in large retailers like Starbucks and Whole Foods.
• 😀 Mark Cuban offers $300,000 for 20% equity, emphasizing his experience in building plant-based brands like Toms and his existing portfolio.
• 😀 Blake stresses the importance of working with a partner who will help grow the business on a global scale, similar to his past experiences.
• 😀 Michael finds the decision between two offers challenging, especially when considering the long-term impact of giving up a significant portion of equity.
• 😀 After some negotiation, Michael agrees to Mark’s offer of 15% equity, compromising on the initial 20% offer.
• 😀 Michael is excited about the deal but shows some hesitation, suggesting he's still reflecting on the weight of the decision.
• 😀 The final agreement between Michael and Mark leaves Blake disappointed, as Michael decides to go with Mark alone rather than the joint offer from Lori and Blake.

Q & A

What is the product being pitched in the script?

The product being pitched is plant-based jerky, marketed as a healthier alternative to traditional jerky, with superior taste and texture.

What is the main selling point of the jerky being pitched?

The main selling point is that the jerky is healthy, plant-based, and has great taste and texture without the high sodium content typically found in traditional jerky.

How much equity is the entrepreneur, Michael, offering in exchange for the investment?

Michael is offering 10% equity for a $300,000 investment.

What is Michael's current profit margin and how much profit has the company made so far?

Michael's company has a profit margin of 77% across all channels, and the company has made a net profit of $1,000 so far this year.

What are the terms offered by the Sharks during the negotiation?

The Sharks offer different terms. One group offers $300,000 for 30% equity, while Mark Cuban offers $300,000 for 20% equity.

Why does Michael find it difficult to accept the offers on the table?

Michael is hesitant to give up too much equity in his business, as he feels the offers involve sacrificing too much of the company, especially when the company is still in the early stages of growth.

What offer does Michael ultimately agree to?

Michael ultimately agrees to Mark Cuban's offer of $300,000 for 15% equity in the business.

How does Mark Cuban pressure Michael to make a decision?

Mark Cuban pressures Michael by telling him he needs to make a decision quickly, offering the deal on the spot and emphasizing the need to choose between two Sharks or one.

What does Mark Cuban emphasize as crucial for success in the business?

Mark Cuban emphasizes the importance of partnership and working with the right people to build and scale the business successfully. He believes having the right partner can help Michael grow the business faster than holding onto more equity.

What is the strategic advantage that Blake and Lori offer Michael in their deal?

Blake and Lori offer strategic partnerships and connections, such as relationships with major retailers like Starbucks, Whole Foods, and Walmart, which they believe could help blow up the business on a large scale.