Viewers of the television series ‘Shark Tank’ have seen many entrepreneurs deliver pitches that have led to them winning investments from the Sharks that, in turn, has transformed both their businesses and their lives. Some of the entrepreneurs have started with nothing and their business success following their ‘Shark Tank’ appearances have made them financially successful. There are some examples that could even be described as rags to riches stories. One such story is that of two young men who went from living on the breadline to selling their business for $300 million.
After graduating from Harvard Business School in 2011, Nick Taranto served with the Marine Corps before landing a job with Goldman Sachs. However, he lasted just seven months as working on Wall Street was making him miserable and he decided to start his own business in January 2012.
While at business school, he had met Josh Hix. He invited him to start the business with him. They knew that they wanted to do something in the data and technology industry, so they spent five months brainstorming. They came up with the concept of tackling the experience of dinner. They realized that microwave meals are not the tastiest option, eating out at restaurants is too expensive, and people do not want to stand in long grocery queues after a tiring day at work.
They came up with the idea of ‘Plated’. This is an e-commerce business that ships boxes of ingredients to customers so they can create quick, simple, and healthy meals at home without the hassle of shopping.
The pair incorporated the company on June 7, 2012, from Taranto’s home on West 14th Street. They also bought a domain from GoDaddy for $9.99 to start their website. Taranto says that it has been a case of testing and learning ever since.
At the start of the business, both partners were on the verge of bankruptcy. It was a high-risk time in their lives as they experimented with what would work and started their ideas with credit cards and maxing out their 401ks. They were packing the meal packs by hand and neither Hix nor Taranto were receiving paychecks from their business.
To expand their business, the pair needed further investment to develop different aspects of the company. They decided to deliver a pitch on ‘Shark Tank’ in the hope of impressing the Sharks and landing an investment. They appeared in an episode which was aired in May 2014 and tech investor Mark Cuban was impressed enough to make a deal with Plated. Unfortunately, this deal later fell through.
However, appearing on ‘Shark Tank’ helped them in other ways as when their episode was aired, it raised awareness of their business and they generated more revenue in the month that followed than they had since they had founded their business.
They also appeared on ‘Beyond the Tank’, which is a follow-up series highlighting how those who have appeared on ‘Shark Tank’ have fared since appearing on the show. Kevin O’Leary was so impressed with the progress the business had made that he decided to invest in the company himself. The pair also got investment from a variety of other sources and accumulated $100 million in venture capital.
Since then, the company has come a long way. In September 2017, they announced that Albertsons Companies had purchased Plated for $300 million. Taranto remains the chief strategy officer while Hix is the chief executive officer. Elena Harp. Who joined the company in January 2013 to lead the culinary aspect of the business, has retained her role since the acquisition.
This acquisition has been beneficial for both Albertsons Companies and Plated. The benefit for Albertsons Companies is that they get the innovation and technology of a meal-kit delivery service. Plated benefits because it now has the scale, size, and resources of Albertsons Companies, which has approximately 2,300 stores across the United States. The company also has an estimated 35 million customers weekly.
This is just one example of how people who are struggling to establish their company can completely transform their fortunes following an appearance on ‘Shark Tank’. The television show significantly raised the profile of Plated and its co-founders, contributing to the pair developing their business to a point where it was worth $300 million.
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