Season 5 | Episode 505 | EP505
In Season 5, Episode 5 of Shark Tank, Terasa & Robert Fraijo approached the Sharks seeking an investment of $75,000 in exchange for 15% equity in ‘Veggie Mama’. The company is currently based in Orange County, California.
Veggie Mama is the brand for a group of products designed to be a healthier alternative to standard frozen popsicles. The products are very similar to normal frozen popsicles with the major difference being that these products are crafted from fruit & vegetables as opposed to sugar water; otherwise known as garden pops. The product is flavoured with Agave Nectar. They are 100% all-natural, organic, and gluten free so they are great for vegetarians and vegans alike.
The Veggie Mama brand had already gained a little traction in the west of the United States. It can be found in a number of different stores dedicated to healthy eating, vegan foods and vegetarian desserts. Their sole retailer on the east coast in the United States can be found in New York. Veggie Mama also operates two stores of their own. The duo’s reason for entering the Shark Tank was to secure investment in order to expand distribution of their product. The team had achieved sales of $30,000 over the past few months. They had already invested $140,000 of their own money into a production facility. This means that the company already has the tools that it needs to expand at a rapid pace. It just needed to increase its distribution to make full use of the production facility.
Kevin O’Leary: $75,000. He would earn a royalty of 50% on each product sold until he earns his initial investment back. He would then earn an additional 25 cents on each product sold after that.
Robert Herjavec: $75,000 in exchange for 20% equity in the company. He would then feed the company a further $75,000 a year down the line. At this stage he will have 25% equity in the company.
Lori Greiner: $75,000 for 20% equity in the company.
Kevin O’Leary: $150,000. There would be a royalty of 50 cents per unit sold until the initial investment is paid off. He would then receive 25 cents per product sold after this.
Robert Herjavec & Lori Greiner: Combined offer of $150,000 for 20% investment in the company. There would then be a 20 cent royalty on each product sold.
Barbara Corcoran & Mark Cuban: $75,000 in exchange for 20% equity in the company.
The duo opted for Barbara Corcoran & Mark Cuban’s offer of $75,000. This meant giving up 20% of their company.
Mark Cuban has invested into over 80 ventures and counting. Mark looks for unique companies and products that can be game changers or strategic to a theme he likes or to another portfolio company. Avoid the word “passion” at all costs.
Barbara Corcoran is a compassionate investor that likes to give capable entrepreneurs a chance. If you want to land an investment with Barbara avoid collegiate name dropping, technical jargon and business plans that only look good on paper.