Ready. Set. Food!
DEAL
EPISODE SUMMARY
🕓 Air Date: January 19, 2020
Asking For:
$350,000 for 7%
Investor:
Mark Cuban
Deal:
$350,000 for 10%
PRODUCT SUMMARY
Ready, Set, Food! is a revolutionary food-allergy prevention protocol for babies, turning organic peanut, egg, and milk into a powder that dissolves easily in breast milk or formula, promoting early allergen introduction.
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Background Story
The founders, Daniel Zekowski, Dr. Katie Marks-Cogan, and Dr. Andy Lightner, based in Los Angeles, were inspired to create Ready, Set, Food! after Dr. Marks-Cogan’s own son experienced a severe food allergy reaction. As a practicing physician, she recognized the importance of preventing food allergies before they started.
This personal experience fueled their mission to help millions of babies reduce their risk of food allergies. With a soft launch focused on pediatricians’ offices, the company aims to provide a simple solution to a growing concern for children’s health.
The Product
Ready, Set, Food! offers a unique approach to early allergen introduction by converting organic peanut, egg, and milk into a powder form. The process involves tearing open a packet, pouring it into a bottle with breast milk or formula, shaking it, and making it ready for the baby to drink.
The founders emphasize the simplicity of incorporating this into a baby’s routine, with just one bottle a day. The product targets the most common childhood food allergens, accounting for 80% of food allergies in children.
Their patent-pending formula includes features like a bottle introduction and a guided system to ensure ease of use. The product is currently sold through their website and Amazon, with approximately 300 pediatricians recommending it in their offices.
How It Went
The company’s position before Shark Tank
Ready, Set, Food! reported $250,000 in sales year-to-date, with a projection to end the year above $450,000. The founders have raised $2.4 million at a valuation they’re inviting the Sharks to join. Sales channels include their website, Amazon, and recommendations from pediatricians.
Subscriptions, averaging 4.5 months, have an average value of around $150. The company plans to launch additional products to extend their offering for babies from birth to four years of age. With a 70% profit margin, the product has shown promising financial health.
The Negotiations:
Seeking $350,000 for 7%, the founders received offers from both Kevin O’Leary and Mark Cuban. O’Leary offered $350,000 as a loan at 2% with a $1 per unit royalty and 7% equity. Mark Cuban offered $350,000 for 12%, with 2% advisory shares and a contingency to provide a low-cost version with a free subscription to a low-income parent for every one sold. After negotiation, the deal was closed at $350,000 for 10% equity with Mark Cuban. The founders expressed excitement about having Mark on board and their shared goal of preventing food allergies in children.
