Lisa and Abe Fetterman are two young entrepreneurs from San Francisco which created a product that can turn any dish into a gourmet one: the Nomiku. With a proposal of $250,000 for 5% stake in their company, will the sharks take a bite out of this delicious business or will they ask for the check and leave?
Who has ever heard of Sous Vide? This cooking method takes vacuum-sealed food and puts it in a precise low-temperature water bath. it’s a top chef’s secret weapon because it allows you to craft delicious perfect dishes conveniently and consistently. And there is a reason most of us don’t use this technique at home: each machine costs thousands of dollars. But that all changed when Lisa, an aspiring chef met Abe, a plasma physicist. Together they created an at-home version of this expensive machine. And thus Nomiku, the first-ever home Sous vide immersion circulator was born!
How does it work? All you have to do is take any pot and fill it with water, then you clip the Nomiku to the side of the pot, you put your ingredients and seasonings into a zip-sealed plastic bag, put the bag in the water and walk away! The machine controls the time and temperature automatically, so all you have to do is relax and come back to a delicious meal. It takes 2 hours to cook but you don’t have to babysit it you just put the bag in and walk away! The only downside of Sous vide? The food doesn’t have that delicious crust we usually associate with food, such as steaks.
Now let’s talk about the company’s finances. Each Nomiku has a retail cost of $189, although the entrepreneurs didn’t specify the cost of production. It has been sold since 2012 and so far the company has made $3 million in sales, mainly through their website and from online retailers. On top of that, they have recently signed a contract to sell it in Williams-Sonoma!
In 2012 alone, the company raised $875,000 in a seed round to get their business started, and in 2015 they raised a jaw-dropping $2 millions. After the first round of fundraising back in 2012, the company has a valuation of $6 million which they believe is the value of sales they will reach by the end of the year.
Mark was the first shark to offer his opinion on the Nomiku. He thought the company didn’t have as much momentum as it should have at this point and on top of that, he claimed he didn’t know that market well enough to invest in it, therefore backing out of the deal.
Next up, it was Lori’s turn to share some of her insight. She saw another roadblock on the product that made her not want to invest. Since the Sous vide technique doesn’t lead to a nice char or crispy outer layer in the food, she believes most people wouldn’t want to have to char or toast their food after it had been already cooked using the Nomiku.
Robert was quite quick to deny an investment opportunity by claiming this was just not the business for him.
After further discussing the company’s valuation, Kevin decided to place an offer, claiming he not only has expertise in this field but also people trust his judgement in the food and wine area since due to his other business ventures within this market. He ended up setting his offer at $250,000 for 10% stake in the company.
The two entrepreneurs didn’t seem to eager to readily accepted the offer and instead decided to hear what Chris Sacca’s offer was.
Chris was quite curious to know more about the equity, the company’s valuation, and the 10 million dollar cap, which had all been previously mentioned but never fully explained. His worries lied on the fact that, as the investors created such a huge cap, that the two entrepreneurs would end up with a very small equity, therefore losing ownership over the company. At the moment, they own 51% of the company, although if a deal is made on air, their equity will decrease and the company will no longer be theirs. In what was truly a gesture of kindness, Chris showed some concern when it came to Lisa losing equity and therefore no longer being the face and voice of Nomiku. Quite suddenly, Kevin dropped out of the race, leaving the company to rely solely on an offer from Chris.
It all came down to Chris asking the young couple how much equity they would like to own after the deal was made. His concern to maintain the couple with a high equity and an eagerness to keep working on Nomiku was truly a first in the Shark Tank. And one that paid off! After a long negotiation, Chris ended up making an offer of $250,000 for 10% of the company as long as the equity would be deducted from the other investors in the company so Lisa and Abe would own 40% of the company. The couple was reluctant but ended up accepting this sweet deal!
Although it’s still early to discuss how the company is doing financially after the episode was shot, Nomiku keeps cooking up some sweet dishes! They have updated their product to include Wifi control, so you can have full control of your sous vide machine at any time! If you would like to know more about Nomiku or would like to get your own machine, don’t forget to visit their website www.nomiku.com or buy directly online.
Original Air Date: December 2, 2016
Entrepreneurs: Abe and Lisa Fetterman
Proposal: $250,000 for 5% stake
Investor: Chris Sacca
Final Deal: $250,000 for 10% stake contingent on Lisa and Abe owning 40% of the company
Can you cook food with your smart phone? Well, the answer is yes! With the new Nomiku Immersion Circulator, you can control the cooking temperature and even create and send recipes directly to the machine with your phone. This product is designed to withstand commercial restaurant use. It is made in USA and has a 1,100 watt semiconductor heater that never burns out.
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