Struggling founder brings vegan jerky on ‘Shark Tank’ — gets second chance after life-changing $300K deal
Mark Cuban may have bid farewell to the 'Shark Tank,' but his lasting legacy continues to live on. Unlike his fellow Sharks, Cuban is mostly seen investing in people on the show instead of business. In one such instance, the former Shark changed a struggling founder's life with his 6-figure investment. The CEO, who was struggling with a negative bank balance, not only got a second chance, but now his business is worth multi-millions, making for a 'Shark Tank' success.
Michael Pan, founder of vegan mushroom jerky company Pan's Mushroom Jerky, revealed on 'Shark Tank' that he was struggling and was one of 5.2 million business owners to receive a Paycheck Protection Program (PPP) loan from the government amid the COVID-19 pandemic, per CNBC. Talking about his struggles, Pan said, 'It's been a really crazy year. Being an entrepreneur for so long, you go through so many peaks and valleys, this year especially. Seeing your bank account go negative, seeing people's lives at risk. Pan explained that he first got the idea for his shiitake mushroom jerky in 2018 while visiting family in Borneo, Malaysia.
Pan's vegetarian Buddhist cousin made a mushroom snack that he at first thought was pork. Pan explained that he was so impressed with the taste and texture that he wanted to bring it to the US. To launch the business, Pan invested $100,000 of his own money, which he borrowed through several loans. On the show, he stated that his funds were all bootstrapped, meaning he hadn't raised any outside investment. Pan further shared, "We're about $95,000 to $100,000 a month in sales right now." At that time, his mushroom jerky was sold in over 700 stores, including Whole Foods.
However, his business faced challenges during the pandemic, which affected both Pan and his company's growth. To support the business, Pan sought a $300,000 investment in exchange for 10% equity on 'Shark Tank.' After tasting his product, the Sharks were impressed. "This is great," Daymond John said. "Incredible, I have none left," added guest Shark Blake Mycoskie. Lori Greiner, Cuban, and Mycoskie then made offers. Cuban offered $300,000 for 20% equity, while Greiner and Mycoskie teamed up with $300,000 for 30% equity.
Cuban shared about his plant-based portfolio, saying, "I've done this before. We already have Alyssa's [vegan cookies], we have Snacklins, and we have Unreal Deli. And I'm a vegetarian. So, I live this." After negotiations, Cuban agreed to invest $300,000 for 18% equity. After sealing the deal, Pan shared, "I've been on this path for a while, and to have this happen is extremely emotionally satisfying." After his 'Shark Tank' appearance, Pan’s Mushroom Jerky saw explosive sales, hitting $650,000 within 24 hours and surpassing $1 million in just a few days, as per Shark Tank Recap. Since then, Pan has expanded into Whole Foods across several states, HEB in Texas, and online via his website and Amazon, while also adding new flavors and merchandise to the brand.