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During the Shark Tank season 14 episode, Boarderie, the cheeseboard company, requested $300,000 for 5% equity, valuing their business at $6 million. During the pitch, Mark Cuban's rejection and re-entry directly helped founders Aaron Menitoff and Rachel Solomon secure better investment terms with Lori Greiner.
After Kevin O'Leary offered $300,000 for 17.5% and Barbara Corcoran proposed $300,000 cash plus a $300,000 line of credit for 15%, Cuban declined to invest.
"I think what you've done is phenomenal right, you deserve a ton of credit, you've pivot, you showed agility, curiosity to go into a new space. I just think this is replicable to Kevin's point. Those big companies they're not stupid, they know that it's in their best interest to keep you from building that brand. Not saying you can't do it, I just don't think the economics work for me as an investor, so for those reasons I'm out," Cuban stated.
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Discussions continued after Cuban left. Lori Greiner stepped up to offer $300,000 for 13%; the founders countered at 8%, and Cuban re-entered at 10%, undercutting Greiner. The Shark Tank investor expressed how Cuban re-entered with just the intention to make her reduce the equity ask.
Boarderie founders used Cuban's comeback to negotiate down from 13% to 9% equity on Shark Tank
Aaron Menitoff and Rachel Solomon entered the Shark Tank with their food product line. The founders brought sample boards for the Sharks to taste while explaining their business model.
Their production facility in Florida could make up to 3,000 boards daily with an efficient assembly line process rather than custom-made offerings. The large board shown to Sharks cost $91 to produce, wholesaled for $154, and retailed at $229, including shipping. After launching their direct-to-consumer website in July 2022, they generated $30,000 in their first month.
Aaron explained that customer acquisition costs during initial testing ranged from $40 to $60 per customer. The founders revealed they owned 75% of the company, with another partner having invested $750,000 previously. When questioned about the purpose of the requested funding, Rachel stated they needed capital for inventory, expecting $2 million in sales for December 2022 alone.
Sharks' reactions
Shark Tank investor Kevin O'Leary questioned why other companies couldn't replicate Boarderie's concept. Aaron countered that their "secret sauce" lay in their production facility and processes, which they had refined through years of catering experience.
O'Leary made the first offer, proposing $300,000 for 17.5% equity. Barbara Corcoran followed with a different structure, offering $300,000 cash plus a $300,000 line of credit for 15% equity, stating the company would need more cash than anticipated.
Mark Cuban initially praised their execution but then delivered his rejection. Lori Greiner entered the bidding with $300,000 for 13% equity. Robert Herjavec declined to invest, citing concerns about the low equity offering compared to the investment amount.
Rachel and Aaron countered Lori with 8%. Mark Cuban re-entered the discussion, saying he would invest at 10%. This competition prompted Lori to reduce her equity request to 12%, with the founders countering at 10%. Mark maintained his 10% offer, creating pressure on Lori, who ultimately dropped to 9%. The founders accepted Lori's final offer of $300,000 for 9% equity.
Post-tank journey
The Boarderie deal with Lori Greiner closed quickly after filming, and the business experienced explosive growth, per Shark Tank Blog. Sales increased by 1000% by the end of 2022, reaching approximately $70 million. This surge established Boarderie as the largest shipper of overnight packages in South Florida.
By November 2023, annual revenue reached $15 million, with 95% of sales coming through their direct-to-consumer website rather than third-party retailers. As of July 2024, Boarderie projected $61 million in annual revenue, nearly doubling their shipping volume from the previous year.
In an update segment aired in season 15, Lori Greiner highlighted her contributions to the company's growth, including marketing advice, introductions to premium cheese suppliers, and access to her social media following of millions.
Shark Tank season 16 is airing on ABC network.
