Additional Coverage:
- ‘ Shark Tank’ contestant showed up as a pierogi and lost the deal because she wouldn’t lower the value (marketrealist.com)
Pierogi Pitch Falls Flat on ‘Shark Tank’ After Founders Refuse to Budge on Valuation
Jaju Pierogi, a promising instant food company, recently faced the sharks on “Shark Tank,” seeking a $300,000 investment for an 8% stake in their business. While the company’s projected $2.7 million in sales impressed the investors, a past misstep ultimately cost them a deal.
The entrepreneurs, Casey and Vanessa White, revealed a $100,000 loss the previous year, attributing it to a poorly negotiated contract with a major grocery chain. This raised concerns among the sharks, despite their initial enthusiasm for the pierogi product itself.
Robert Herjavec, a self-proclaimed pierogi enthusiast, expressed strong interest and even sought to partner with fellow shark Daniel Lubetzky, hoping to leverage his food industry expertise. However, Lubetzky, already invested in a similar company, declined to avoid a conflict of interest, prompting Herjavec to withdraw his offer as well.
Mark Cuban, while admitting his love for the product, humorously declined, fearing a potential weight gain from indulging in the tasty treats. Lori Greiner also opted out, feeling she wasn’t the right fit for the business, although she expressed a willingness to partner with Kevin O’Leary.
O’Leary, true to his reputation, presented the sole offer, but with a catch – a 20% equity stake. The Whites countered with 10%, but O’Leary remained firm, leading to an impasse. Impressively, the entrepreneurs held their ground, refusing to relinquish more equity than they were comfortable with.
While leaving the Tank without a deal, the Whites remained optimistic, suggesting the sharks might eventually regret their decision. Only time will tell if Jaju Pierogi can achieve the success the founders envision.