Do you have a fat dog? You know what it's problem is? Eating meat! It's true! Have you ever seen a fat vegan? Of course not! And, no longer, will you ever see fat dogs if the entrepreneur behind Wild Earth has their way. The entrepreneur claims to have been inspired by human "bio-hacking" a movement popular (mostly in the San Francisco Bay Area where people attempt to "optimize" their eating, caloric intake and other aspects of their lives through super foods and home made medicines.
Mr. Wonderful, of course, is having nothing to do with it and claims that the entrepreneur is trying to force dogs to be vegan. The entrepreneur replies that dogs may crave protein but that not eating meat is always healthier than eating meat. That's why he has introduced koji into the recipe, something that boosts the "umami flavor" while still containing "the ten amino acids required in dog food."
The entrepreneur offers samples to the sharks and claims that it's entirely produced in a human grade kitchen. He also says that all of their koji is grown in the company's bio reactors.
Currently, the Wild Earth treats have been released and the company is preparing to release the kibble. A treat costs $3.50 per unit to produce and retails for $12.99. Mainstream dog treats typically cost $6 for about the same amount. The entrepreneur predicts that the pet food will retail for $40 per bag. He plans to sell the dog food exclusively online with a minimal marketing plan.
The entrepreneur behind Wild Earth claims to have been previously a successful bio-tech entrepreneur. In fact, he says, he helped start the movement and had co-founded Indie Bio.
In terms of investment, the company has raised $4,000,000.
This deal aired on Episode 10.16.
Making A Deal
When pressed on the $11,000,000 valuation of the company, the entrepreneur states that the last round of fund raising was led by Peter Thiel and raised $2,000,000 on a $7,500,000 pre-money valuation and a $9,500,000 post-money valuation. Following this fundraising, the entrepreneur states that he hold "about" 20% equity in the company.
Kevin says that he just doesn't see an $11,000,000 valuation and drops out. Lori thinks it's crazy to assign that value to a pet food company before the product has even hit the market and also drops out. Guest shark Matt Higgins states that he believes the entrepreneur is trapped in a "prison of an inflated valuation" and is unable to hear people's objections and also drops out.
Daymond says that when he heard the pitch he thought of Turbopup, a company he invested in on episode fourteen of Season Six. However, he also thinks that it would be a slap in the face to Turbopup were he to invest $550,000 being asked given that product isn't even on the market. Needless to say, he was out as well.
Mark comes in at the last minute and offers $550,000 for 10% in equity. Naturally, this would bite the value of the company in half and the entrepreneur attempts to get Mark to lower it. Mark states that he knows it puts pressure on the entrepreneur and the investors but that he thinks his value of half of what's being offered. He also states that the entrepreneur should know what kind of deals get offered when someone sets foot in the Shark Tank.
Facing this kind of pressure, the entrepreneur accepts.
- This is just awkwardly phrased. The entrepreneur said that he had a "minimal marketing plan." However, one must assume that this means a fully thought out plan on how to minimize the amount of marketing while maximizing sales rather than a poorly thought out marketing plan that is still bare bones.
- In episode 6.14, Daymond invested $100,000 for 35% equity, valuing the business at $285,714.