Additional Coverage:
- ‘Shark Tank’ contestant gets $500,000 deal from Mark Cuban to make chips from food waste (marketrealist.com)
Mark Cuban Bites into Food Waste Chip Company on ‘Shark Tank’
In a compelling “Shark Tank” pitch, entrepreneur Kaitlin Mogentale landed a $500,000 deal with Mark Cuban for her company, Pulp Pantry, which produces gluten-free chips made from food waste.
Mogentale entered the Tank seeking $500,000 for a 10% stake in her company, highlighting the staggering 50 million tons of annual food waste in the US and her innovative approach to transforming it into tasty, healthy snacks. The Sharks were impressed with the chips’ flavor, but Mogentale’s $5 million valuation, based on $250,000 in previous sales and a projected $500,000 for the current year, raised concerns.
Kevin O’Leary and guest Shark Emma Grede balked at the valuation. O’Leary countered with an offer of $500,000 for 25% equity, while Grede declined to make an offer.
Barbara Corcoran also opted out, citing the challenging road ahead for the company. Lori Greiner, intrigued by the concept, proposed a $500,000 loan at 6% interest over three years, in addition to the requested 10% equity.
Mark Cuban, recognizing the potential of Pulp Pantry, stepped in with an offer of $500,000 for 20% equity. After a brief negotiation, the two settled on a 17% stake for Cuban, a deal that ultimately trumped the other offers on the table.
Mogentale impressed the Sharks not only with her product but also with her sustainable business model, explaining how Pulp Pantry helps suppliers reduce composting and transportation costs by purchasing their food waste. At the time of filming, the company was already profitable, a promising sign for its future. While the path to nationwide success is undoubtedly a long one, with Cuban’s backing, Pulp Pantry seems poised to take a significant bite out of the snack food market.