- I'm Emily Canal, Inc.'s resident Shark Tank expert.
And this is tips from the tank.
Jenny Goldfarb was seeking $100 thousand
for 10% of her business, Mrs.Goldfarb's Unreal Deli.
And if they line a plant based corned beef.
Jenny Goldfarb grew up in New York.
And her great grandfather actually
came to the city from Romania.
When he moved to the U.S., he started working in delis.
And eventually opened his own in the city.
And that really stayed in Jenny's bloodline.
So, deli sandwiches, corn beef, pastrami,
she was telling the sharks that
these are things that she grew up on and loved.
However, about ten years ago, she moved to L.A.,
and decided to become vegan after watching
videos about animal cruelty.
- I had a meat and potatoes husband and some young kids and,
I had to figure out how to reconfigure my cooking methods.
So I bought every vegan cook book I could find.
And I figured out how to cook from the produce aisle
and the grains aisle.
Ultimately, the food started getting good.
And so I realized, there are a lot of delicious burgers
on the market in the plant-based world.
But there was no authentic, classic deli meat.
- While only being in business for six months,
Jenny has sold $10 thousand worth of product,
and was expecting to get her product
into Whole Foods later this year.
This is a relatively short pitch,
but the sharks were really excited about it.
One of the things that Jenny had going for her is that
plant-based foods are very well established.
In today's market, we know the demand for them.
We know that people are really focused on eating healthy,
and looking to those plant-based options.
So guest shark Anne Wojcicki, who's the co-founder
of 23andMe, and Kevin O'Leary, both expressed concerns.
That Jenny wouldn't be able to compete
with some of these larger companies that have
billions of dollars coming in from Silicon Valley.
And, they kept addressing that point and asking,
how she was going to defend herself.
Jenny didn't really get a chance to answer that question
because other sharks started making offers.
Kevin O'Leary offered her $100 thousand
for 20% of the business.
- I'll give you $250 thousand. - Stupid.
- For 20%. - Okay, but this is right now.
- Do or die?
- Do or die, - So more than what you were
- Tell me what you want to do. - Asking for, more than what
- I'll be on the
- front page of it. - you were asking for.
- I'll be the poster child for it, we'll go, we'll hustle.
- Mark Cuban, you've got yourself a deal.
- That's what's up!
- Very, very smart. - I know hustle.
- I don't mess around either. - Aw, sir.
- Thank you so much, mozltov. - Thank you so much.
- The first take away from this pitch is
justify your evaluation.
If you're going on Shark Tank,
or taking any meeting with any investor,
you know they're going to ask,
how you got to the number that you're presenting to them.
So, Daymond John was that person on Shark Tank.
He wanted to know how she reached a $1 million valuation,
when her business was just a couple of months old.
Jenny came ready with those answers.
She said that, other plant-based investors
had reached out to her, offering half a million dollars.
And she was approaching the sharks,
only seeking 100 thousand, that's a fraction of the cost.
Additionally, she was the creator of the recipe,
and brings value in her own way.
The second takeaway, is be willing to negotiate.
We've talked about this on the show before,
that entrepreneurs who go into the tank
unwilling to give up the amount of equity
needed to entice their shark.
They're not going to get very far.
Negotiating is so, so important on Shark Tank.
And if you're not willing to give up that equity,
you're gonna really piss off the investors.
We saw this just a few episodes ago with Blueland.
The company that was trying to make eco-friendly cleaners.
They were nickel-and-diming the sharks
when it came to equity, and really, really angered them.
Mark Cuban got so frustrated, he accused the
two co-founders of going on the show just for publicity.
Jenny's a great example of someone who is willing to
negotiate and telling the sharks that outright.
She said, "all right, I'm here to negotiate,"
and she was, she was willing to hear different offers.
And different deals.
The third takeaway, is be ready to make a quick decision.
We've seen this on Shark Tank before,
where Mark Cuban does his tried-and-true.
Where he offers a deal and says to the entrepreneur
that they cannot negotiate, they can't counter,
and they can't hear any other deals from other investors.
So you need to be ready, you need to be on your feet.
And know what you're willing to give up.
What you're willing to take in return
for that powerful investor.
Mark Cuban is that guy, he has very recognizable name.
He has a very good investment record, like the other sharks.
So he's telling you he's gonna increase your valuation,
give you more than double
the amount of money you were seeking.
You need to act fast.
I'm Emily Canal, this was Tips from the Tank.
And remember, act quickly or you might miss out.