After a $1 million tug-of-war on ‘Shark Tank,' Mark Cuban beats Lori Greiner to back planet-loving founders
Founders Beth Zotter and Amanda Stiles appeared on ‘Shark Tank’ in Season 13, prompting some of the show's most memorable offers. The show isn’t just about contestants chasing deals, it’s also about Sharks competing to win over entrepreneurs. Umaro Foods ultimately secured a $1 million deal on the show. The founders introduced the Sharks to a 100% plant-based seaweed bacon alternative. Their unusual pitch received mixed reactions from the panel. However, it caught the attention of Lori Greiner and Mark Cuban.
According to Market Realist, Zotter and Stiles asked for $500,000 in exchange for 2% equity. The founders explained how their backgrounds in seaweed research inspired them to bring its benefits to the world and help the planet. Zotter shared that the idea began with her research on seaweed and biofuel, while Stiles focused on seaweed as a food source. "So first of all, let me tell you, my mission is to protect this amazing planet that we live on. My background is in renewable energy," Zotter spoke on the show. She also mentioned receiving a $5 million Department of Energy grant to develop offshore seaweed farms for fuel.
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That’s when Zotter first envisioned using seaweed as a protein source. "I knew that animal protein was a huge contributor to global warming, and I realized that seaweed had an immense potential to be a planet-friendly source of protein," Zotter explained. The founders explained they had patented both their seaweed protein extraction method and its application in plant-based meats, making the product fully proprietary. The seaweed bacon was a prototype intended to showcase their technology’s potential. According to the founders, it cost $7.30 to produce a pound of their product. They hoped to reduce that to $5.20. They sold it to distributors for $12.60 per pound and to food service companies for $18.99. At the time, they had no sales, as they planned to launch the product by year’s end.
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As they offered the Shark their dish, it was only Robert Herjavec who said, "I love bacon; I don't love this. It doesn't really taste like bacon." Mark Cuban disagreed, saying the seaweed bacon tasted just like traditional American breakfast bacon. Moving forward into the bidding war, Herjavec backed out. Kevin O'Leary offered $500,000 for 8% but declined the counteroffer, which was 8% for $1 million. Eventually, Cuban for the same deal.
Greiner said, "You are badass women, and I love badass women. You blow me away, you're so impressive. I want to be on this journey with you, really badly," and offered $500,000 for 4%. She, however, asked that her stake remain undiluted in future funding rounds. This was when Cuban reminded the founders that his offer was still on. The contestants then asked him for a 7% stake, to which he agreed, stealing the pitch from Greiner. As per Shark Tank Blog, by 2024, their product was in over 250 restaurants and available on Amazon and their website, with $3.8 million in seed funding, and also partnering with NBA all-star Chris Paul.
