Delighted By is a company from Los Angeles, CA, that is attempting to bring humus into the desert category of food. Still chickpea based, the product is both vegan and gluten free and is positioned as a healthy alternative to a traditional desert. And despite its main ingredient, the flavor is sweet as a desert is expected to be.
The entrepreneur offered a "cookie dough" version of the product and the sharks were generally very impressed by the taste.
Though the product only launched thirteen months ago, it has already made $1,000,000 in gross sales and can be found in 1,200 stores. In order to achieve this, the founder rented a van and drove up and down to every Wegman's grocery store. The founder projects $1,500,000 in sales by the end of year.
The product, at time of airing, was still being marketed next to traditional humus products instead of with frozen or desert foods.
In terms of previous fundraising, the entrepreneur had invested $20,000 of their own money and raised an additional $400,000 from friends and family at a $4,000,000 valuation.
The entrepreneur is in the tank to raise money to hire people to support operations, including a VP of sales and the like.
Making A Deal
Mark offered the founder their desired $600,000 in exchange for 25% of equity. This represents a bite of $2,600,000 off the original valuation of $5,000,000, cutting it by half. However, as part of the deal, Mark promises to help build team and is offering a revolving credit line for inventory. Mark also said he saw value in opening retail locations to covert new customers.