'Shark Tank' offers a life-changing deal to couple who started their own bakery with just $400
By connecting entrepreneurs and star investors while providing exposure on TV screens across the globe, "Shark Tank" has enabled several businesses including those that focus on health. One such venture was Nowhere Bakery whose founders, Saphira and Maurizio Rasti, wanted to give the world allergen-free desserts. The success story of the Costa Mesa, California-based duo is as incredible as their cookies.
The Rasti couple appeared on Shark Tank Season 15 to pitch their business with an ask of $200,000 for 5% equity. They explained that while Maurizio had a bulletproof stomach, Saphira had a lot of allergies. Since the two had a sweet tooth and they couldn't find anything in the market that was allergen-free, made with healthy ingredients, and tasty, they founded Nowhere Bakery, to make their own desserts.
Nowhere Bakery specializes in cookies and brownies, that are made from healthy ingredients, and are free from dairy, eggs, gluten, soy, refined sugar, sugar alcohols, and also paleo-friendly. The couple shared samples of their products with the Sharks which included a chocolate chip cookie, a candy bar cookie, and an almond butter brownie. “This tastes like a real cookie,” Barbara Corcoran said, expressing surprise. “This tastes absolutely delicious.” Kevin O’Leary commented. “I congratulate you. We’ve had so many plant-based cookie deals and they all taste like s---," he added.
Coming down to the numbers, the Rastis shared that in their first year, 2020, they closed with $92,000 in sales. The next year, they went up to $524,000 in sales, and in 2022, they had $770,000 in sales where they made $32,000 in profits. Finally, for 2023, they projected $1 million in sales. The sharks weren't really impressed with their profit margin. However, the founders explained that given how they started the company with only $400, they have come a long way with their online direct-to-consumer model and the wholesale model.
O’Leary still expressed concern over the company’s profit margins and suggested that they would make more money by switching from a commercial kitchen to finding a co-packer. He then offered them the $200,000 but for 20% equity, given they worked with a co-packer. “Otherwise, I’m sorry, I’m not interested,” he said.
Barbara Corcoran disagreed with O’Leary and assured the Rastis that their plan was the one to go with. She too offered them $200,000, out of which $100,000 would be a cash investment and the $100,000 would be a line of credit for 15% of equity. Meanwhile, Mark Cuban said he was rather concerned with what he saw on the packaging of the cookie. “It tasted amazing until I looked at the back, now I’m going to be in the gym for 17 hours tonight. One cookie is 300 calories!" he said before opting out.
Guest judge Jason Blum, the CEO of Blumhouse Productions, offered to join O’Leary’s deal, splitting the money and equity down the middle. However, Corcoran countered the deal by sharing how she had helped a similar business called Kate’s Kookies.
Kicking off the negotiations, Maurizio countered Corcoran's offer by asking for $400,000 for the 15% equity. When she turned him down, Saphira countered the offer by offering 12.5% equity for the $200,000 split. Corcoran agreed to the deal, which valued the company at $1.6 million, according to a CNBC Make It estimate.
As per Shark Tank Blog, Nowhere Bakery is going strong with its products in 75 stores across the West Coast. Their cookie, brownie, and blondie mixes are also available online at Amazon and on their website.
