“Don’t like to be a small minority shareholder:” When Shark Tank investor Robert Herjavec questioned Boarderie’s equity

On Shark Tank season 14 episode 7, Boarderie founders Rachel Solomon and Aaron Menitoff were seeking $300,000 for 5% of their business. During their pitch, the founders explained that the demand for prearranged charcuterie boards birthed their business. Soon, their business was successful, and they ended up making $1.8 million in sales in 2021.

For the year 2022, the founders predicted sales of $4 million along with a profit of $400,000. Shark Tank investor Robert was impressed by how much they both had invested in their business; he praised the founders but wasn't satisfied with the equity. Robert said he didn't want to be a "small minority shareholder" and would love for other sharks to place offers for this business. He continued:

"Rachel I couldn't be more impressed with the two of you but $300,000 for 5% I just don't think the amount of equity, I just don't like to be a small minority shareholder like that. I'm going to clear the deck and make room for the other sharks. I'm out."

The founders received three individual offers from Barbara, Kevin, and Lori. However, they ended up securing a deal of $300,000 for 9% equity with Lori after placing multiple counteroffers.

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Shark Tank investors pointed out the risks Boarderie would face competing with other companies

The sharks liked the concept behind the business and praised the founders for their dedication to their ideas. However, Kevin thought it would be difficult for them to scale and build a brand due to the immense competition in the food industry. The founders shared that this was one of their fears when they first established Boarderie, but their sales prove that the future of their business is bright.

Shark Tank investor Cuban agreed with Kevin's concerns about big companies replicating Boarderie's concept and adapting to the same easy-to-use products customers prefer. Cuban predicted that those companies would want to keep Rachel Solomon and Aaron Menitoff from building their own brand, he explained:

"So guys I think what you have done is phenomenal right you deserve a ton of credit. You showed curiosity to go into a new space I just think this is replicable. To Kevin's points those big companies here are not stupid, they know that it's in their best interest to keep you from building that brand. I'm 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."

Kevin further added that other companies had "really good customer acquisition," which is why the offer he was about to place was reflecting the "risk" he could see in the business. O'Leary continued:

"I'm very worried about competition because I fought them for years."

He made an offer of $300,000 for 17.5% equity meanwhile, Barbara made an offer of $300,000 in cash and a $300,000 line of credit for 15% equity.

However, Shark Tank investor Lori didn't agree with Kevin and stated she had been in this space for quite some time. Initially, Lori's offer included much more equity, but after back-and-forth negotiations, she decided to lower the equity to 9% for $300,000. This was accepted by the Boarderie founders. As of December 2024, the business is worth $10 million as it continues to expand and grow.

All episodes of Shark Tank are available to stream on ABC.