Shark Tank: Mark Cuban Takes A $150k reduce Of Echo Valley Meats

March 13, 2015

Dave Alwin, of Echo Valley Meats, would favor the Shark Tank to imagine investing in his firm. It’s his second time in the tank, after being turned down about a year and a 1/2 in the past.

Now he’s prepared to take a look at once more, and says he that now that he has his advertising strategy down and his customer acquisition costs beneath regulate, he’s ready for the sharks to invest in his company.

After he used to be on the convey sooner than, trade boomed, however he nonetheless took the sharks’ advice and seemed into his industry practices, and now he says he desires to center of attention on the mail-order aspect of his division.

He’s asking the sharks to spend money on Echo Valley Meats so he can buy inventory in bulk at its lowest costs, with a purpose to supply lower prices.

For a $ 150k funding, Alwin is offering fairness within the quantity of 20%. this is 1/2 the funding he wanted for the same equity last time.

He’s projecting $ 1.8 million in sales in the mail-order meat sector this year.

The sharks’ major problem was that final time, Alwin couldn’t name a value of purchaser acquisition, didn’t have a sufficient valuation, and otherwise gave the impression undecided of his numbers. This time, although, he rattled off prices, percents of repeat shoppers, profits, and other numbers simply, and it was once clear the investors were impressed with the advance.

despite this, Alwin had barely finished his pitch earlier than the primary shark was out: Lori Greiner said she often is the improper companion, since she’s no longer much of a meat eater.

Kevin O’Leary was once the primary to make a proposal. He’d supply the quantity asked, however for 20% of the entire industry, no longer simply the mail-order phase, and add one further situation — Alwin would also promote depraved good cupcakes on his site, with Alwin getting a cut of the profit.
Herjavec was subsequent, with a proposal of $ 300,000 for 35% of the entire trade.
At this, Kevin modified his provide, pronouncing he’d take simplest 17.5% of the corporate for a similar $ 150k, with a purpose to healthy Robert’s valuation.
Mark Cuban had a suggestion too: $ 150k as asked, but for 25% of the mail-order business, with an option to buy 25% of the opposite part of the trade for another $ 150k. on the other hand, he stated, he wanted a solution immediately.

with out a hesitation, Alwin agreed. “you might have a deal.”

ultimate Deal: Mark Cuban invested $ one hundred fifty in Echo Valley Meats’ mail-order division for a 25% stake, with an method to make the same deal in the retail division.

photo: Echo Valley Meats

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