The (dollar)8 million valuation of Must Love on ‘Shark Tank’ has the Sharks concerned.
The Sharks were immediately put off when they learned that Must Love was raising funds through seed funding and that investors would be involved as well.
‘Shark Tank,’ ABC’s award-winning show, is back with a brand-new episode featuring some intriguing pitches.
Must Love, a vegan ice cream company, made one of the pitches.
Hannah Hong and Mollie Cha, best friends, struggled to find a delicious vegan ice cream alternative, which led them to create Must Love, a 100 percent plant-based ice cream brand.
Despite the fact that the Sharks loved the ice cream, Hong and Cha were unable to secure a contract with them.
The two best friends, who graduated from UC Berkeley and went on to MIT for their MBA, were able to impress the Sharks not only with their delicious product, but also with their educational credentials.
Just as things appeared to be going their way, the Sharks inquired about Must Love’s numbers.
Hong and Cha said they expected revenue of around (dollar)1 million this fiscal year, but that they were losing (dollar)400,000.
The Sharks, particularly Kevin O’Leary, were intrigued as to why the two women entered the tank seeking (dollar)600,000 in exchange for a 7.5percent stake in their brand.
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Must Love’s founders then explained that they were losing money because the frozen food market is so competitive, and that they had to pay for shelf space in big supermarkets.
As a result, they sought the assistance of a Shark in order to gain a foothold in the big stores while also increasing production.
The Sharks wanted to know how they were currently funding their operations.
They explained that they had each put up (dollar)200,000 out of pocket, that they were raising more money through seed funding, and that the brand was worth (dollar)8 million.
The Sharks were immediately put off when they learned that they would be raising funds through seed funding and that investors would be involved.
The Sharks were of the opinion that the ladies did not value the Sharks or what they could bring to the table, so they unanimously decided to walk away from the deal.
Despite the fact that Peter Jones shared what he learned from his previous experience working with a frozen food company.
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