"Can't cross the bridge" - When Robert Herjavec turned down Umaro's $25 million valuation in Shark Tank

Beth Zotter and Amanda Stiles presented their seaweed-based vegan bacon company Umaro Foods in Shark Tank season 13. The founders asked for $500,000 in exchange for 2% equity. After tasting the product and hearing about the company's pre-revenue status, Robert Herjavec addressed the $25 million valuation.

"I can't cross the bridge to the 25 million dollars for a 2% investment based on our bacon tastes better. I'm out," Herjavec stated.

Mark Cuban later offered $1 million for 7% equity, which the founders accepted. By 2024, Umaro expanded to over 250 restaurants and secured $3.8 million in funding from AgFunder and other investors.

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Robert Herjavec rejects Umaro due to valuation ask in

Shark Tank

Beth Zotter and Amanda Stiles brought complementary expertise to their Shark Tank presentation. Zotter's background in seaweed-based biofuels startup and Stiles' PhD in plant biochemistry supported their innovative approach.

The founders explained how their red seaweed technology created meat-like textures without traditional protein sources. Their cost analysis showed a $7.30 production cost per pound, with a planned reduction to $5.20 through scale optimization. The business model targeted food service distribution at $18.99 per pound and wholesale channels at $12.60.

The Department of Energy had backed some of their research, highlighting seaweed's dual potential for food and fuel applications. Their San Francisco Bay Area research facility focused on texture development while planning large-scale seaweed farming operations in the Gulf of Maine. The founders emphasized their intellectual property portfolio, which included multiple patents on their seaweed protein technology.

Each Shark Tank investor received samples of Umaro bacon in two forms. The crispy version aimed to replicate traditional bacon's texture, while the chewy variant offered different applications. When he removed the sample from his mouth, Robert Herjavec's immediate reaction shaped the pitch's direction.

Mark Cuban found merit in the product's taste profile, particularly in sandwich applications. The remaining Shark Tank investors tested the bacon both standalone and in prepared BLT sandwiches, generating mixed feedback about texture and flavor profiles. The founders acknowledged their product represented a prototype batch, explaining how their manufacturing process would refine taste and consistency.

The $25 million valuation emerged as the central discussion point. Robert Herjavec questioned the pre-revenue status of Umaro, expressing concerns about market validation. Guest Shark Emma Grede supported Herjavec's perspective and withdrew from consideration.

Kevin O'Leary presented a different view by offering $500,000 for 8% equity, valuing the company at $6.25 million. The founders responded by suggesting openness to $1 million for 8% equity, maintaining a $12.5 million valuation.

Lori Greiner entered the negotiation with a structured proposal of $500,000 for 4% equity. Her offer included a critical condition about maintaining equity percentage through future funding rounds. This sparked a strategic shift in the negotiation dynamics. The founders weighed multiple active offers while defending their technology's market potential.

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Post-rejection developments

Mark Cuban finalized a deal of $1 million for 7% equity after a series of counteroffers. Shark Tank Blog reported that Umaro secured its first restaurant partnerships with Sorrell in San Francisco, The Egg Shop in New York City, and D'Andrews Bakery in Nashville by 2022. The company's growth accelerated with NBA star Chris Paul's investment in September 2022.

The March 2024 funding round brought in $3.8 million from AgFunder, Alexandria Ventures Investments, Climate Capital Bio, and Ponderosa Ventures. This capital supported manufacturing automation and production relocation closer to Asian seaweed sources.

The company expanded its retail presence to California Whole Foods Markets, serving over 250 restaurants across the United States. Despite lacking profitability, Umaro's valuation reached $70 million, showing significant growth from its Shark Tank appearance.

Current operations include direct-to-consumer sales through Amazon and wholesale distribution. The company maintains its research facilities in the San Francisco Bay Area while developing seaweed farming operations in Maine. Product development continues with plans for seaweed-based pepperoni and salami variants to expand their market reach.

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Shark Tank season 16 is airing on ABC network.