A bakery that began with a $400 investment has now become a successful "Shark Tank" venture worth $1.6 million.

A bakery that began with a $400 investment has now become a successful "Shark Tank" venture worth $1.6 million.
A bakery that began with a $400 investment has now become a successful "Shark Tank" venture worth $1.6 million.

According to Saphira and Maurizio Rasti, the key to winning over a "Shark Tank" investor is by appealing to their taste buds.

The Costa Mesa, California-based couple, who founded Nowhere Bakery in March 2020 with $400, received an offer valuing their company at $1.6 million on Friday's episode of the ABC television show.

If the cookies and brownies didn't taste so good, the investors might not have been surprised. Saphira mentioned on the show that they are free from dairy, eggs, gluten, soy, refined sugar, sugar alcohols, and are paleo-friendly. The recipe was inspired by her own dietary restrictions.

"This tastes like a real cookie," Barbara Corcoran exclaimed, expressing surprise. "This tastes absolutely delicious," Kevin O'Leary agreed. "I congratulate you. We've had so many plant-based cookie deals and they all taste like s---."

Saphira, the founder of Nowhere, sought $200,000 from investors for a 5% stake in her business, which was named after its pandemic-era location.

Saphira stated that by the time of filming, Nowhere was operating out of a commercial kitchen. In 2022, the company generated $770,000 in revenue, including a $32,000 profit, and was projected to finish 2023 with $1 million.

O'Leary initially raised concerns about the company's profit margins. He proposed that the couple could increase their earnings by moving from a commercial kitchen to a co-packer.

Maurizio replied, "That's a possibility, but we can control everything ourselves right now." Saphira added, "We value controlling the quality of our treats."

O'Leary proposed an investment offer with a contingency, stating that he wanted to expand the brand in major grocers. He offered $200,000 for 20% ownership, and also mentioned bringing in a co-packer he believed they would like, giving him half of his equity.

He added, "Otherwise, I'm sorry, I'm not interested."

O'Leary disagreed with Corcoran, and advised the Rastis to deviate from their plan — offering them $100,000 cash and $100,000 as a line of credit for 15% of Nowhere.

""I have never had a food product [founder] that went into a co-kitchen and did it themselves again. Co-packers always work for them," she said."

Two investors, Mark Cuban and Lori Greiner, declined to extend offers. Cuban said, 'It tasted amazing until I looked at the back.' Now he's going to be in the gym for 17 hours tonight as one cookie is 300 calories.

Jason Blum, CEO of Blumhouse Productions, agreed to join O'Leary's deal, splitting the money and equity equally. O'Leary was happy to have two Sharks on his side.

Corcoran informed the Rastis about a company from her investment portfolio, Kate's Kookies.

"Corcoran stated that the founder of the business left the kitchen and the business went out of business. The founder told her that she would never leave her kitchen again or let it be in anyone's hands. According to Corcoran, the most crucial aspect of running a bakery business is being a baker. It is too early for you to leave the kitchen."

Corcoran was offered $200,000 by the couple in exchange for 12.5% ownership of Nowhere. The investor agreed to the deal, valuing the company at $1.6 million, according to a CNBC Make It estimate.

"We got a deal with Barbara and we're excited to take Nowhere everywhere," Saphira said, adding, "It's time to take Nowhere everywhere," Maurizio exclaimed.

CNBC has the exclusive rights to air "Shark Tank" off-network.

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