"That's an integrator" – When Shark Tank investor Mark Cuban challenged Chefee Robotics' claim of being a robotics company

Shark Tank season 15 episode 17 aired on March 8, 2024. The episode featured Assaf Pashut pitching Chefee Robotics, a robotic kitchen system designed to automate meal preparation. Seeking $500,000 for 4% equity, Pashut demonstrated how Chefee could plan meals, weigh ingredients, and cook food with minimal user input.

As Assaf explained the machine's functionality and technical aspects, Mark Cuban questioned whether the company was truly a robotics firm, stating:

"That's an integrator!"

He argued that Chefee was assembling existing technologies rather than developing new robotics. Despite concerns about execution and market adoption, Kevin O’Leary offered $500,000 for 15% equity.

During Shark Tank negotiations, Pashut asked Kevin O'Leary if he would lower his stake to 12%, but the Shark remained firm. The deal was closed at O'Leary's initial offer.

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Chefee Robotics’ Shark Tank pitch: Details explored

Assaf Pashut entered Shark Tank seeking $500,000 for a 4% stake in Chefee Robotics. He introduced Chefee as "the world's first embedded robotic chef," capable of meal planning, cooking, and grocery ordering.

The system required users to restock ingredients weekly, after which Chefee automated the entire cooking process. Pashut emphasized that the product was designed to help parents who lacked time or cooking skills.

To demonstrate Chefee’s capabilities in Shark Tank, he prepared three dishes for the Sharks: Spanish paella, spicy ratatouille, and tofu tikka masala. The Sharks approved of the food and asked to see the machine in action.

Chefee, integrated into a kitchen counter, dispensed and weighed ingredients before transferring them to a cooker. Pashut explained that the system combined off-the-shelf components with custom software and hardware.

Mark Cuban immediately questioned Chefee’s classification as a robotics company, stating:

"So let's just be clear here. You're not a robotics company. You're an integration company. You're taking off-the-shelf or stuff you've licensed, and maybe you've written some software and you have some IP, and you're doing that to integrate it, right?"

He pointed out that Chefee did not manufacture motors or key components but instead combined existing technologies. Robert Herjavec sought clarification, asking, "Is that true?"

Pashut responded:

"We have patents pending for the entire system, the custom parts, and the embedded form factor. I spent 8,000 hours on this."

He also mentioned that he had personally invested $90,000 and had already raised $450,000. However, Mark remained unconvinced, stating:

"Nothing wrong with that, but you've got to say who you are and what you're doing."

He added that a truly innovative robotics company would attract significant investor interest. Pashut insisted that Chefee was a robotics company, leading Cuban to repeat, "That's an integrator!"

Chefee’s business model included plans for a base version priced at $9,500 and a premium model ranging from $40,000 to $50,000, with higher ingredient capacity. The company was pre-revenue, relying on social media marketing and discussions with appliance manufacturers. Pashut stated that Sub-Zero’s CEO had shown interest in licensing Chefee’s technology.

Kevin O’Leary shifted the discussion to maintenance, asking who would service Chefee if it malfunctioned. Pashut assured the Sharks that anyone with plumbing knowledge could follow instructional videos to repair the unit.

Despite this, Barbara Corcoran expressed doubts about execution and dropped out. Robert found the design appealing but questioned its market potential and also opted out. Lori Greiner was uncertain about consumer adoption and declined as well.

Kevin O’Leary, however, saw potential in the high-end kitchen market. He was not concerned about the pricing but found the valuation too high. He offered $500,000 for 15% equity. Mark Cuban, despite liking the design, did not believe Pashut had effectively explained the technology and exited the deal.

Pashut countered O’Leary’s offer with 8% equity, but O’Leary insisted on 15%. Pashut then proposed 12%, to which O’Leary replied with a simple "no." The deal was finalized in Shark Tank at $500,000 for 15% equity.

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Shark Tank airs every Friday on ABC at 8 pm EST.