NuMilk’s Game-Changing Pitch on Shark Tank Season 12
On December 11, 2020, NuMilk made a splash in episode 8 of season 12 of Shark Tank. Founders Ari Tolwin and Joe Savino showcased their innovative company, seeking $1 million for a 5% equity stake in their business. Their standout product was a compact machine designed to effortlessly create various types of plant-based milk, including almond and oat milk, at the touch of a button. This ingenious device was targeted at grocery stores, aiming to revolutionize how consumers access dairy alternatives.
Mark Cuban’s Strategic Offer
During the pitch, Mark Cuban, a known advocate for plant-based diets, decided to experiment with the milk-making machine himself. His enthusiasm led him to propose a deal that would propel NuMilk into the spotlight. Initially, Ari and Joe aimed for 6% equity, but Mark presented an enticing offer of $2 million for a 10% stake. Despite their desire to collaborate with him, Mark remained firm in his terms.
“That was my flexibility.”
Reactions from the Sharks
As the pitch unfolded, the feedback from the other sharks was mixed. Barbara Corcoran expressed confusion, likening her understanding to that of a second grader. Lamenting the lack of clarity, she ultimately withdrew from the deal. Similarly, Lori Greiner and Daymond John echoed Barbara’s sentiments, citing confusion as their primary reason for backing out.
Amidst this, Kevin O’Leary chimed in, expressing a different perspective. He offered $1 million for a 9.5% stake, emphasizing his understanding of the entrepreneurial vision presented by NuMilk. His proposal included a significant monthly financial commitment of $8,000 over three years.
Mark’s Calculated Moves
Mark’s keen interest lay in the portable iteration of the nut milk maker, intended for coffee shops. He perceived strong market potential for this product as a home appliance. Joe revealed it retails for $699, with a production cost of $300.
After weighing their financial status, Mark determined that with $3 million in reserves for launching two products, additional funding was necessary to sustain the operation. He projected an optimistic sales forecast, stating:
“I think that’ll sell like hot cakes at home. I think you’ll sell a million units easily.”
Final Deal and Impact
Mark proposed a complex deal structure. Initially presenting an offering that included $1 million for 7% equity and an additional $1 million as a loan at 3% interest, he emphasized that if NuMilk did not utilize the loan, interest payments and additional equity would not be required.
Ultimately, he came to a simplified conclusion, stating his willingness to provide $2 million in exchange for a 10% equity stake. Ari and Joe accepted the offer, marking this moment as one of the largest deals in the history of the show.
Fans eager to follow NuMilk’s journey and innovations can keep up with their latest updates on Instagram: @numilk.