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Michael Pan has created a unique high-fiber jerky snack to help fuel the body and provide a delicious source of vitamin D using Shiitake mushrooms. This paleo, gluten-free, soy-free snack is made from six simple ingredients and can be purchased in a variety of flavors including original, salt and pepper, zesty Thai, and applewood barbeque. Michael came to the Shark Tank in hopes of securing a partnership with a Shark who is willing to invest $300,000 in exchange for 10% equity in Pan’s Mushroom Jerky. Because he is beginning to feel the pressure from other competitors in this space, Michael is hoping that a Shark can help him secure his spot as the industry leader while growing his brand.

The idea for mushroom jerky came to him whenever he was visiting family in a small fishing village in Malasia. His cousin, who is a vegetarian Buddhist, was making a similar product and Michael couldn’t believe how great the flavor was. After coming back to the states, he refined the recipe and is currently selling his products in two regions of Whole Foods, which equates to over 750 stores. Currently, 60% of Pan’s sales are through retail and 40% are through online sales. In 2019, they ended the year with $755,000 in sales and as of the time of filming, they already had $620,000 year-to-date sales in 2020. With 77% margins and 10% profit margins, the Sharks like the financials of the business as much as they like the flavor of Pan’s Mushroom Jerky.

Lori Greiner and Blake Mycoskie partner together to make Michael an offer to invest $300,000 in exchange for 30% equity. This would give them each 15% equity in Pan’s Mushroom Jerky. Because of their contacts at retailers like Starbucks, they really feel that they can get Micheal’s products into other big-box retailers and exponentially grow his sales. They are really excited about the idea of partnering with Michael and try very hard to convince him to accept their offer, explaining that he needs to consider who is the best strategic partner for him, not just the best financial deal. Mark Cuban also loves the product since he is a vegetarian and offers to invest $300,000 for 20%. Because Michael does not want to give up 30% equity to Lori and Blake, he counters Mark at 18%, which he agrees to. Both Mark Cuban and Michael Pan are excited about their partnership deal.

Would you invest in Pan’s Mushroom Jerky if you were a Shark? Would you be a customer of this product? Do you think that Michael made a wise decision partnering with Mark over Blake and Lori? Start the conversation in the comments below.

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