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Shark Tank US | Top 3 Biggest Deals

Sony Pictures Television・33 minutes read

Vengo seeks $2 million for 12.5% equity to revolutionize vending machines with slim, cashless designs and video advertising opportunities. The Sharks negotiate a $2 million deal at 7% interest for 3% equity with Kevin and Lori investing, leading to excitement from the founders about growth prospects.

Insights

  • Vengo, a modern vending machine company, seeks $2 million for 12.5% equity, offering slim, digital machines with advertising space for $200 per SKU per month.
  • New Milk, a dairy-free milk startup, faces challenges with revenue projections, aiming to sell almond milk bottles with a refill charge while targeting Costco for significant market entry and valuation growth.

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Recent questions

  • What is Vengo's revenue model?

    Vengo sells hardware for $2,500 and charges $20 per machine per month for software and maintenance. They also sell advertising space on the machines for $200 per SKU per month.

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Summary

00:00

"Vengo: Modern vending machine revolutionizes traditional model"

  • Vengo presents a modern vending machine, seeking $2 million for 12.5% equity, aiming to revolutionize traditional vending machines.
  • Vengo's slim design and cashless, digital operation set it apart, fitting up to 100 products despite its small size.
  • The company sells the hardware for $2,500, charging $20 per machine per month for software and maintenance.
  • Vengo's revenue model includes selling advertising space on the machines for $200 per SKU per month.
  • Despite a $16 million valuation, Vengo expects to lose $300,000 this year but aims to break even next year.
  • The company partners with major vending and chocolate companies, focusing on point-of-purchase video advertising.
  • The Sharks negotiate a deal for $2 million at 7% interest for 3% equity, with Kevin and Lori each taking 2%.
  • Vengo ultimately agrees to a $2 million deal at 7% interest for 3% equity, securing Kevin and Lori as investors.
  • The founders express excitement about the partnership with the Sharks, highlighting the potential for growth and expansion.
  • A new pitch introduces New Milk, offering fresh, organic, dairy-free milk made on-site in grocery stores using a custom machine.

15:00

"Entrepreneur's Revenue Challenges in Manhattan Location"

  • Footage reveals details about a street location in Midtown Manhattan, costing $3,000 per square foot.
  • The machines at this location generate an average of $50,000 per year each, resulting in significant revenue.
  • The machines cost $30,000 each, with no rent expenses as the location is unmanned.
  • The entrepreneur has a background in food and beverage, previously working in aviation catering and owning a co-packing company.
  • The entrepreneur had a previous brand called Happy Tree Maple Water with national distribution in 8,000 stores.
  • The almond milk bottle costs $2, with a $3.99 refill charge, of which the grocery store takes a third.
  • The entrepreneur has raised $12 million, with a last valuation of $40 million.
  • A countertop device for the product is showcased, priced at $85 for consumers and planned to be sold at $199.
  • Financial details over the last three years include revenue of $40,000 in 2018, $320,000 in 2019, and projected sales of $400,000 in the current year.
  • Despite initial projections of $6 million in revenue for the current year, challenges have led to a revised estimate of $400,000 in sales.

28:44

"Costco Deal Propels Wine Business Growth"

  • In the wine business, sales of $650,000 are considered low, with most aiming for a 299% increase to reach the tipping point and test the market.
  • A story is shared about approaching Costco, the largest wine buyer globally, with a challenge to prove significance in the wine industry, leading to negotiations for a new price point and product placement.
  • The importance of achieving a sell-through of 10 million units in two years at a price of $2.99 is highlighted to avoid failure in the market.
  • A deal is proposed by Kevin for $2.5 million for a 10% equity stake, with an option to buy more at a $25 million valuation upon exit, contingent on successfully entering Costco.
  • After discussions with partners, Andrew accepts Kevin's deal, recognizing the value of Costco's involvement and the potential for increased company worth.
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