Shark Tank USA Season 16 Episode 04

Shark Tank USA is back with the highly awaited Episode 04 of Season 16. The episode brought a fresh wave of innovative startups eager to pitch their game-changing business ideas. The episode was packed with excitement as entrepreneurs showcased their groundbreaking concepts, hoping to secure investment and support from the Sharks. As always, the Sharks were ready to dive deep into the business models, questioning profits, scalability and potential for growth.  The Sharks had tough decisions to make about which ventures were worthy of their partnership with their sharp insights and high expectations. Let’s dive into the highlights of this episode and see which entrepreneurs walked away with the deals of their dreams.

The panel of Sharks for season 16 Episode 04 of Shark Tank USA includes:

Mark Cuban:  Owner of Dallas Mavericks and the author of How to Win at the Sport of Business 

Lori Greiner: Known for the QVC show Clever & Unique Creations 

Kevin O'Leary: Founder of O'Leary Ventures

Robert Herjavec (Guest Judge): A businessman, investor and television personality

Daniel Lubetzky: Founder and executive chairman of snack company Kind LLC., philanthropist and author

Contestant No. 01 of Shark Tank USA S16 Ep04: Finneato Fysh Foods

The episode kicked off with a fantastic pitch by a couple named Zoya and Alex, founder and wife of founder, of a plant based startup called Finneato Fysh Foods.

What does Finneato Fysh Foods do?

Finneato Fysh Foods is a plant-based seafood company that offers FYSH. Fysh is a delicious seafood alternative made from tapioca, vegetables and sea algae. FYSH tastes similar to tuna, salmon and yellowtail. It is packed with omega-3s, protein, iron and fiber. It’s a versatile option that can be used for sushi, tostadas, crispy rice and can be enjoyed as a healthy fish-free choice. FYSH is safe for pregnant women, people with fish allergies and anyone who prefers to avoid raw fish. It is also gluten-free, soy-free and free from artificial coloring. FYSH is made by chefs who focus on creating delicious flavors.

What did Sharks say?

Sharks were impressed with the taste of Fysh.

Shark Kevin expressed that the Zoya and Alex has around 3 million followers, they should be focusing on retail rather than solely selling B2B. He was disappointed with the business model of Finneato Fysh Foods and for that reason he opted out.

Shark Robert said the product is fantastic and delicious but felt the sales weren’t strong enough to justify an investment, so he passed as well.

Shark Lori said she understands the founder is going slowly with B2B to understand the market of the product. But she felt it was too early to invest in the business and for that reason she passed the deal.

Shark Cuban said he doesn’t mind the wholesale unlike Kevin. it would be difficult for the business to scale enough to make the investment worthwhile and opted out by saying that.

Shark Daniel found the taste of Fysh delicious and believed the product can actually solve a problem but he was cautious about entering the frozen food market, which could be challenging due to the high shipping costs. And finally, he offered $150k for 40% of the stakes.

Zoya was hesitant to give up 40% of the business so early and negotiated for 20% for the same investment. Daniel didn’t agree to the proposal.

Zoya tried to convince Daniel by saying that she believes in the product and knows it has the potential to go longer distances in the market. She would love to get Daniel on board to grow the business. She proposed 25% for $150K as she can’t risk future stakes that are early in the business.

Daniel revised his offer for $150K for 30% and closed the deal successfully.

Contestant No. 02 of Shark Tank USA S16 Ep04: Terrashroom

Next in line to pitch was Jared Steele, founder of an intriguing startup named Terrashroom.

What does Terrashroom do?

Terrashroom is an intelligent plug-and-play mushroom growing system. The technology makes it easy for anyone, anywhere to grow mushrooms at home. Terrashroom allows the cultivation of any type of mushroom in as little as a week without any experience. The system is fully automated. It manages everything from temperature and humidity to air circulation and ensures the perfect growing environment and minimizes the risk of contamination. It also allows users to monitor and adjust mushroom microclimate remotely and even change the mood lighting with the app-controlled system. Terrashroom is designed to be sleek, minimalistic and easy to use. It helps in growing high-quality mushrooms while keeping the space clean and odor-free.

What did Sharks say?

Sharks were impressed with the product’s concept, but they were concerned as the Terrashroom didn’t sell even one unit in 2 years. The company had thousands of pre-orders but could not deliver a unit of the product.

Shark Cuban said it is a cool product and it would be great if it works in the market. Furthermore, Cuban said that the founder has oversold the product without actually delivering a unit, which created too much uncertainty for him. As a result, he decided to opt-out.

Shark Daniel said it is an exciting product but the valuation of the business is too high and unrealistic, and for that reason he passed on the deal.

Shark Robert said the product was beautifully designed and the founder is a credible guy but Robert had trust issues with the sales product and withdrew from the deal.

Shark Lori said she loves hydroponic farming as it is sustainable and easy. But the product design was overly complicated. She suggested that the product could have a much simpler design and that the founder should reconsider it and withdrew from the deal.

Shark Kevin liked the product but found the valuation unrealistic but he was ready to take the risk and offered $175K for 15%.

Jared questioned the 15% stakes to that Kevin said if the product works in the market then they would need to raise significant funds for inventory. So he has to take risks as it is embedded in the valuation.

Jared couldn’t agree to 15% and negotiated for 5% stakes for $175K.

Shark Lori expressed concern that the product design isn’t ready yet and warned that it could hurt both the product’s future and the credibility of the company and its founder. They should consider the design and give it time.

Shark Kevin still wanted to take the risk with the same offer but Jared didn’t agree to the deal so Kevin decided to opt out.

Contestant No. 03 of Shark Tank USA S16 Ep04: Moonies

Next in line to pitch were Karisa and McKay Winkle, founders of an interesting startup named Moonies

What does Moonies do?

Moonies designs premium swimming trunks for men which combines high-quality craftsmanship with sustainability. Their trunks are made from 86% recycled polyester and offer both durability and eco-consciousness. Additionally, the company also focuses on minimizing its environmental impact by using 100% recycled post-consumer materials for its shipping bags. Moonies is committed to delivering stylish and comfortable products that align with a more sustainable and responsible approach to fashion.

What did Sharks say?

The Sharks had mixed reactions to Moonies' product.

Shark Cuban said that there was a potential market for the product, and the founders' funding request was reasonable. However, he felt there was only so much that could be done with the product, and added that the investment wasn’t a fit for him, so he passed on the deal. 

Shark Lori said that the product is fun, but the founders have not done enough market research. She further added that just because something is fun, it doesn’t necessarily mean people would want to buy it, so she opted out as well.

Shark Daniel said that the founders are not showing enough hustle to make the product a success. Daniel was not convinced about the grit of the product and withdrew from the deal.

Shark Robert recognized the founders’ passion and said that nothing sells itself. He understood the product’s appeal but he couldn’t get behind it and chose to opt out.

Shark Kevin offered $150K for 100% to buy the ownership of the product’s patent. But the founders were hesitant to sell, as they believed their product has far more potential and a larger market.

Shark Lori said she understands that the product is appealing for a lot of men, but added that it wasn’t the right investment for her.

The founders negotiated with Shark Kevin and proposed a deal for $150K to sell the patent plus $5 royalties per unit sold. Kevin wasn’t convinced as he believed that the product came with a significant risk that the product could fail in the market.

McKay proposed the deal for $500K for 100% of the patent or $150K plus the $5 royalty on each unit. However, in the end, the founders walked away without securing an investment.

Contestant No. 04 of Shark Tank USA S16 Ep04: 1920

The next and final pitch in line was from a couple named Ashley and Zach, Founder and COO of 1920.

What does 1920 do?

1920 creates innovative and multifunctional clothing designed for everyday use. Their pieces can be easily converted into bags which offer both style and practicality. 1920 aims to deliver fashionable yet functional "smart" clothing that meets the needs of today's customers by blending sustainability with modern design. The company offers a seamless combination of convenience and chic.

What did Sharks say?

Mark was impressed with the product but was concerned about the Cash flow & profit of the business. He advised the founders to gain a better understanding of these aspects before moving forward and opted out for that reason.

Kevin felt the founders were not fully committed to the business and were treating it like a gig. He made an offer of $250K for 30% equity but only if the founders were willing to leave their current jobs and dedicate themselves to the business full-time.

Daniel appreciated the spirit of the founder, but he was worried about the competitive nature of the segment of the company and withdrew from the deal.

Robert appreciated the efforts & passion of the entrepreneurs and offered and recognized the potential of the business. He offered to $250k for 25% equity.

The founder tried to negotiate for 20% but eventually agreed to Robert’s offer of $250K for 25% and joined hands with Robert to grow the business.

Conclusion

This episode of Shark Tank USA featured some exciting pitches. Each entrepreneur passionately presented their startups and negotiated for the best future for their businesses. The Sharks didn’t hold back and questioned the founders on every decision and pointed out their mistakes while offering valuable advice for growth. In the end, 2 startups secured deals, while the other 2 left with great feedback and insights for the future. It’s clear that the journey isn’t over and we’re eager to see what happens next in Episode 04 of Season 16.

Explore the Shark Tank USA: Season 16 Episode 1