'Shark Tank' contestant gets $500,000 deal from judges who teamed up to push Kevin O'Leary out
Usually, entrepreneurs on "Shark Tank" have to impress the investors to get a deal, but some founders turn the tables. One such contestant was Jared Cannon, who was pitching Simply Good Jars. He walked into the tank and swooped a deal away from under Kevin O'Leary's nose to strike a multi-Shark partnership with Mark Cuban and Lori Greiner. While Mr Wonderful thought he had the best offer on the table, things soon changed after his fellow Sharks offered $500,000 without any strings attached.
In the episode, Canon entered the Tank seeking $500,000 for 7% of his business. During his pitch, he shared that he left his 18-year career as a chef in 2017 to create Simply Good Jars, which sells jars of prepared salad for a healthy meal. He added that he started the company with a $1,000 loan and a vision to start a revolution. Cannon said, “All our jars are returnable, so for every jar that we get back, we not only reuse it, but also donate one meal to feed someone in need."
When asked for the numbers, Cannon shared that each jar cost him $2.50 to $3.60 to make, and they sold for $8.99 to $10.99. Furthermore, the company was on track to do $750,000 in sales in the current year and be profitable by the following year. He shared that his products were in 175 convenience stores and some local Walgreens stores. The jars were also delivered via Grub Hub using using cloud kitchens.
Despite the lack of profits, multiple sharks were interested in making a deal. O’Leary made the first move, offering $500,000 as a loan at 9.5% interest for 7% equity, and his support to raise more funds. Cuban then interjected that raising more money wouldn't be a good idea, as the company needed to focus on sales. “I would not be a billionaire if I just kept on raising money over and over again,” Cuban told Cannon.
After this, both Robert Herjavec and Daymond John dropped out to make things easier for the other Sharks. Lori Greiner jumped in to partner with O'Leary in the same deal. However, when Cuban made an offer of $500,000 for just 8% equity, Greiner pivoted, saying she would also like Cannon to focus on the business. “I like to get so many sales and do it so fast that you’re not going to have to do a whole bunch of raising," she said. Greiner and Cuban then joined forces to collectively offer $500,000 for 10% equity, leaving Mr Wonderful in the dust. After a brief back-and-forth, Jared accepted the multi-Shark deal.
According to "Shark Tank Recap," Simply Good Jars witnessed immense demand after the episode, and the company's revenue touched the $4 million mark within a couple of years.
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