'Shark Tank' contestant gets a $300,000 deal for his impressive pitch about saving houseplants
Products pitched on "Shark Tank" are often appealing because of their relevance in everyday life, and some can be lifesavers. The founder of 'Flora,' Aabesh De, came to the show with a product that saved houseplants. Pitching his plant health monitor, the entrepreneur convinced the Sharks that it was time to stop the mass "herbicide" and help people take care of their plants. Most sharks weren't sold on his product, but De managed to get a good deal with Lori Greiner, who believed in the idea.
De, a former Microsoft employee who quit his job to save plants, entered the Tank seeking $300,000 for 10% equity in Flora. De shared the story of how he was given the responsibility of looking after his beloved rosebush plant, but he killed it in all but eight days. Thus, to make up for his lack of a green thumb, the entrepreneur came up with the idea of a device that helps take care of plants.
Pitching the patented Flora “pod”, De explained that the device measures moisture, humidity, light, and temperature for different kinds of plants. When paired with the company's app, De explained that the device gave data insights on houseplants and allowed users to ID over 10,000 varieties of plants. Furthermore, the app also tells people the moisture, light, and humidity levels to help people manage watering schedules or set alerts. He added that the app was free, but it had a $60 per year “plus” version as well because the free version allowed users to ID only one plant per day unless they watched an ad.
After his pitch, the Sharks threw a slurry of questions in the entrepreneur's way. Kevin O'Leary made the first move, asking how much the device cost De to make. The entrepreneur shared that a single device costs $28 to make, and it sells for $64. "I can buy 10 plants for that!" O'Leary exclaimed, dismissing the need for the device. De countered by explaining that a single device could be used for multiple plants and save people more money. Plus, the device took all “the guesswork out of plant care" by giving users 24/7 plant diagnosis support, and the premium version gave access to “expert plant doctors” as well.
Robert Herjavec also told De that he wasn't the right Shark for this, as he couldn't even recall if he had one plant at his home. Barbara Corcoran said she loves plants, but she had a problem with the company's business model. “I would never go for a subscription model after buying [the soil meter]. That’s a problem, so I’m sorry, I’m out," she said.
With this, De was left with Greiner who luckily seemed interested. "I think you're a little bit stuck. I mean you've done a lot of raises, you've taken in a lot of money you've come in not unreasonable ask at all but I just think for me to be involved, it wouldn't be fair the percentage," she said. Greiner said she would invest $300,000 but for a whopping 30% equity. De countered with an offer of $300,000 for 15% equity but with 5% in advisory shares. He also offered a royalty component to the deal.
With multiple judges calling De a clever negotiator, Greiner asked for a $2 royalty per unit along with the same offer, which De accepted. “I think you’re smart as hell, and I like to invest in people who are smart as hell,” Greiner told the entrepreneur in the end.
