This video illustrates how Slice of Sauce, a dehydrated ketchup and hot sauce startup, secured a $200,000 investment from Alex Rodriguez for 15% equity based on a $2 million valuation despite having zero retail sales and only $30,000 in Kickstarter funding. The company collapsed within months because they lacked manufacturing equipment to fulfill orders, demonstrating that high valuations without proven revenue or production capabilities can lead to business failure.
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The $200K Shark Tank Deal That Completely Destroyed Them 🛑 #shorts #sharktank #usaAdded:
Sandwich catastrophe.
>> Fear not my sharky friends. Your saucy heroes have arrived with slice of sauce.
>> This is pretty damn cool. Let me just tell you that is a good idea. Thank you.
We put the Kickstarter on in 2018 and here 2 years later you're still proud.
>> Correct. We discovered really quickly that manufacturing this is really hard.
>> But how are you making these?
>> We've been manual.
>> I see these as a proof of concept that are going to be really hard to sell. No chance you're doing 1.8 8 million of these selling online.
>> Mark, you're on the fence. I'm not. I'm going to make him an offer. Okay, >> do what you got to do.
>> I'm going to offer you $200,000 for 20%.
When you hit your 1.8, it will convert into equity.
>> Would you do it for 15%, Alex?
>> So guys, before you jump, >> before you go, >> I'll do it for 15%. But that means you can't listen to Mark. Alex, you have a deal.
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