Shark Tank US | Top 3 Biggest Deals Of Season 15

Rebel Cheese: A Vegan Love Story

Introduction to Rebel Cheese

• Fred Zar and Kirsten Matland from Austin, Texas, pitch their company, Rebel Cheese, seeking $750,000 for 5% equity.

• The founders share a personal story about their relationship and how it led to the creation of vegan cheese after both became vegan.

Product Overview

• Rebel Cheese specializes in artisan vegan cheeses made from plants, using traditional techniques like culturing and cave aging.

• They offer over 20 varieties of cheese designed to appeal even to non-vegan cheese lovers.

Tasting Experience

• Sharks taste various cheeses; the pimento flavor is highlighted as particularly good.

• The Brie is noted for its authenticity with only four ingredients: cashews, water, salt, and culture.

Market Positioning

• Fred explains that while there are other vegan cheeses available, none match the artisan quality or scale of production that Rebel Cheese offers.

• Their business model includes e-commerce (16%), wholesale (17%), and restaurant sales (65%).

Financial Insights

• The cost to produce a wheel of cheese is approximately $4.67; retail prices range from $15 to $20.

• Last year's sales were reported at $2.5 million with projections of $3.5 million for the current year.

Investment Discussion

• Mark Cuban expresses concern over the valuation but shows interest in investing at a lower percentage (10%).

• Lori Greiner also expresses interest in partnering with Mark for investment but indicates she does not personally consume much cheese.

Negotiation Dynamics

• The sharks discuss potential collaboration on distribution and marketing strategies if they invest together.

• An offer is made by Mark and Lori for $750k at 10%, prompting further negotiation on equity percentages.

Shark Tank Insights: A Bionic Revolution

The Importance of Seizing Opportunities

• A long-time Shark Tank participant emphasizes the rarity of getting an offer from two passionate sharks, urging entrepreneurs not to let minor equity percentages deter them from accepting a life-changing deal.

• The urgency in the conversation highlights that this moment is pivotal for the entrepreneur, suggesting that hesitation could lead to missed opportunities.

Introduction to Psionic and Its Mission

• Dr. Adil Akar introduces his company, Psionic, seeking $1 million for 2% equity to develop advanced bionic limbs aimed at improving accessibility for both humans and robots.

• He shares a personal story about meeting a girl in Pakistan who inspired him to create bionic technology after witnessing her struggle with a missing limb.

Features of the Ability Hand

• The "Ability Hand" is presented as the fastest bionic hand on the market, featuring touch feedback and muscle control capabilities, which significantly enhance user experience.

• Notably versatile, it serves not only prosthetic needs but also applications in robotics and space missions.

Personal Testimony from Users

• Retired Sergeant Garrett Anderson shares his experience with traditional prosthetics versus the Ability Hand, highlighting its transformative impact on his daily interactions.

Funding Journey and Challenges

• Dr. Akar discusses his educational background leading up to founding Psionic and mentions raising $3.6 million so far through various funding avenues including crowdfunding campaigns.

• Despite significant interest in their product, he notes challenges in scaling production due to limited manufacturing capacity and high demand.

Market Dynamics and Pricing Concerns

• Dr. Akar explains why they chose equity crowdfunding over traditional investment routes despite having raised substantial grant funding; social media plays a crucial role in their sales strategy.

• The cost of producing each Ability Hand is significantly lower than its selling price ($155,500), raising questions about pricing strategies within healthcare markets.

This structured summary captures key insights from the transcript while providing timestamps for easy reference back to specific moments in the discussion.

Robotic Hand Technology and Investment Negotiations

Overview of the Robotic Hand's Impact

• The speaker expresses skepticism about the potential for a robotic hand to significantly change lives, indicating that the scope of impact does not align with their expectations.

• A personal anecdote is shared regarding Noah Galloway, a veteran who lost limbs, highlighting the complexities involved in prosthetic attachment and the associated medical challenges.

Business Insights and Financial Performance

• The entrepreneur discusses their confidence in the market for robotic hands but acknowledges skepticism about achieving substantial growth with limited funding.

• Lifetime sales are reported at approximately $2 million, with last year's sales exceeding $1 million and a profit margin of $100,000.

Investment Offers and Equity Discussions

• Concerns are raised about dilution as success grows; an offer of 10% equity for $1 million is deemed too high by the entrepreneur.

• Two sharks express interest in making an offer: Kevin proposes $1 million for 6%, while Lori and Damon also want to collaborate on an investment deal.

Counteroffers and Share Structure

• The entrepreneur counters with a proposal to protect valuation through preference shares, suggesting 2% common shares plus advisory shares.

• Preference shares are explained as beneficial for investors but potentially problematic for shareholders due to dilution concerns.

Final Negotiation Outcomes

• One shark offers $1 million for 10% equity under standard terms, emphasizing future investment options despite dilution risks.

• A negotiation ensues where sharks discuss splitting equity among themselves; they propose various structures to reach a consensus on share distribution.

• Ultimately, an agreement is reached at $1 million for 6% equity involving multiple sharks, which is seen as advantageous for increasing production capacity.

Robo Burger: The Future of Food?

Introduction to Robo Burger

• Robo Burger is introduced as a fully autonomous robotic miniature restaurant that can cook a hamburger in under 4 minutes, aiming to simplify the food service industry.

• The product promises a restaurant-quality experience with freshly cooked burgers, emphasizing taste and quality.

Unique Features

• The multi-patented cooking platform requires no special plumbing or venting, allowing it to operate anywhere electricity is available.

• Robo Burger aims to provide hot, fresh food anytime and anywhere, positioning itself as a revolutionary solution for the restaurant industry.

Investment Opportunity

• The company seeks $1.5 million for a 5% equity stake, inviting investors (referred to as "sharks") to join in on this innovative venture.

Customer Experience Demonstration

• A live demonstration shows how customers can order customized burgers through an interactive screen interface.

• Each burger is prepared by cooking individual components separately before reassembling them, which differentiates Robo Burger from competitors.

Health and Safety Considerations

• Current operations involve using pre-cooked products due to health and safety regulations; however, there are plans for future enhancements like medium rare options.

Business Model and Brand Strategy

• The company positions itself not just as a burger brand but also as a provider of robotic solutions for other brands in the food industry.

Market Potential

• There’s potential for widespread deployment with plans to place tens of thousands of machines globally based on interest from major companies.

Competitive Landscape

• Despite competition in robotic food manufacturing, Robo Burger claims unique patents that allow it to cook and clean effectively while providing quality meals.

Leasing Options and Economics

• A leasing program is offered at $3,000 per month per machine; discussions about operational costs highlight the need for significant sales volume to ensure profitability.

Sales Performance Insights

• During beta testing, machines sold between 20–30 units daily at prices ranging from $5.99 to $6.99 per burger. This performance indicates strong market viability if scaled appropriately.

Robo Burger: Investment Pitch Insights

Initial Investment Proposal

• The investor expresses interest in acquiring 5% of Robo Burger for a $1.5 million investment, valuing the company at $30 million, questioning how he can profit from this deal.

Sales and Financial Performance

• The founders reveal they have been in beta for 18 months, selling nearly 12,000 burgers and securing contracts for 14 out of 20 machines planned for production this year.

• Projected revenue for the current year is estimated at $1.4 million with anticipated losses around $700,000; next year's revenue is projected to reach approximately $7 million.

Market Dynamics and Technology Concerns

• A shark comments on the robotics industry being prone to rapid changes due to technological advancements, suggesting that relying on physical vending machines may be a strategic error.

• The shark emphasizes that as technology evolves quickly, maintaining outdated machines could hinder business growth.

Business Model Evaluation

• Another investor shares his experience in the food business and questions whether Robo Burger's model aligns with successful ventures like his plant-based restaurant chain.

• He acknowledges the potential but ultimately decides against investing due to concerns over the business model's viability.

Operational Challenges

• An investor recounts past experiences with vending machines facing maintenance issues despite being professionally managed, raising doubts about operational reliability.

Financing Options Discussion

• The team discusses financing options for scaling operations and considers taking a loan against machine orders while offering equity in return.

Counteroffers and Negotiations

• One shark proposes a loan of $1.5 million in exchange for 10% equity but later suggests negotiating down to 5%, indicating flexibility based on perceived risk.

Final Deal Structure

• After discussions among investors about skepticism regarding order fulfillment, one investor expresses willingness to support if terms are favorable.

• Investors negotiate terms leading to an agreement where they settle on an offer of 9% equity in exchange for financial backing.

Conclusion of Pitch

• The pitch concludes successfully with Robo Burger securing investment from two sharks after negotiations solidify their partnership.