PlateTopper – Airtight Food Storage
DEAL
EPISODE SUMMARY
🕓 Air Date: November 2, 2012
Asking For:
$90,000 for 5%
Investor:
Lori Greiner
Deal:
$90,000 for 8%
PRODUCT SUMMARY
PlateTopper transforms plates into airtight food storage containers, solving problems associated with plastic lids and wraps.
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Background Story
PlateTopper was born out of Michael Tseng’s frustration with conventional food storage methods during his college years. With a background in electrical and biomedical engineering, Michael conceived the idea of a suction plate dome combined with a microwave plate cover. He dedicated himself to launching PlateTopper, leaving behind his medical career to pursue entrepreneurship. The product garnered attention on QVC and Walmart’s website, attracting significant purchase orders and validating its potential as a household brand.
The Product
PlateTopper is a simple yet innovative solution to food storage. It transforms plates into airtight containers with a strong seal, making use of a handle to press down and create the seal. It works on circular plates, china, and kitchen counters, preventing the loss of plastic lids and the messiness of plastic wraps.
It’s microwave-safe, and dishwasher-safe, and facilitates easy organization in kitchen cabinets. The product is available for purchase online and has expanded to major retailers like QVC and Walmart.
How It Went
The company’s position before Shark Tank
PlateTopper has received significant attention, with over $1 million in purchase orders within four months, leading to wholesale revenue of $500,000. It’s partnered with major retailers like QVC and Walmart, indicating a strong market presence. The company’s funding primarily comes from sales revenue, with a focus on retaining as much equity as possible.
The Negotiations:
Michael initially sought $90,000 for 5% equity but faced criticism for his valuation strategy. After a series of negotiations, Lori Greiner offered $90,000 for 8%, which Michael eventually accepted after declining other offers. Despite challenges in communication and valuation, the deal was closed with Lori’s investment. In summary, PlateTopper’s journey in the “Shark Tank” showcased the challenges of entrepreneurship, the importance of clear communication, and the potential for success with a compelling product and strategic partnerships.
