"Don't force him" — When Shark Tank's Lori countered Mark's $300,000 offer for Pan's Mushroom Jerky

The Sharks fiercely competed for a stake in Pan's Mushroom Jerky during season 12, episode 6 of Shark Tank. Michael, the founder, presented his product, highlighting its nutritional benefits and simple ingredients. Michael's pitch took an unexpected turn when he revealed that his jerky was made from mushrooms, not meat.

This surprised the Sharks, but Lori Greiner's interest increased. Michael shared his sales figures, expecting to reach $1.5 million by the end of 2020, with $620,000 already achieved. His previous sales were $300,000 in 2018 and $755,000 in 2019. Although the company's profit margin was only 10%, this impressed guest shark Blake Mycoskie, Lori Greiner, and Mark Cuban.

Blake and Lori teamed up to offer Michael $300,000 for 30% equity on Shark Tank. Mark Cuban quickly followed with a competing offer of $300,000 for 25% equity and asked Michael to make a decision, which Lori didn't take kindly.

"Wait, don't force him on the clock, Mark," said Shark Tank investor Lori.

After further negotiations, Michael ultimately accepted Mark's offer of $300,000 for 18% equity in Pan's Mushroom Jerky.

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Journey of Pan's Mushroom Jerky before and after Shark Tank

Michael Pan discovered mushroom jerky on a trip to Malaysia in 2006. He saw its potential in the US market and started importing it from Malaysia. Over the next decade, he built a customer base for the product. Michael, an electrical engineer, kept his corporate job while researching ways to turn his side business into a full-time venture.

According to the US Chamber of Commerce's November 25, 2024, article, US consumers became more health-conscious and interested in plant-based diets by the time Michael grew his business. They also started snacking on the go more often, and these trends helped Pan's business take off. In 2016, Pan's started making its products in a 14,000-square-foot factory in Portland, Oregon.

Michael even praised mushrooms for having long been valued for their nutritional and medicinal properties, both globally and among US health enthusiasts.

"On one hand, it's like they're having a 'moment,' but to me, they've always had a moment. They've always been there," said Michael.

Michael credits groups and experts, like Paul Stamets, who founded Fungi Perfecti, a company making mushroom-based supplements, for promoting the nutritional benefits of mushrooms in the US. After appearing on Shark Tank, Pan's Mushroom Jerky experienced a huge sales surge. The company made $1 million in online sales in just four days.

The sudden demand overwhelmed Michael and his 10-person team, recalled Michael. They received six times more orders than expected, forcing them to temporarily shut down their website. One week after the show aired, Pan updated customers on Facebook, assuring them that his team worked hard to fulfill orders. Despite hiring more staff, it took four months to complete the 33,000 orders.

A year later, Pan's Mushroom Jerky expanded its retail presence. In November 2022, the products became available nationwide at Sprouts Farmers Markets and in more Whole Foods locations. Mark Cuban announced that Pan's jerky would also be sold at select H-E-B stores in Texas.

By December 2022, Pan's products were available at select Albertsons and Safeway stores. Pan credited Mark Cuban's marketing expertise and wholesale connections as extremely valuable to the company's growth. Pan's Mushroom Jerky is now sold in 3,500 stores across the US. The company has added two new flavors, Curry and Teriyaki, to its lineup. All six flavors, including the four originals, are available for purchase on the company's website.

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Season 16 of Shark Tank is currently airing on ABC.