Deal Strike: Spicy Sunflower Seeds Convince Dummy Investor - Negotiations Happened Post Show
The Founders' Daring Venture: Cravies on "The Lion's Den"
Every startup aims to address an issue. That's what Rio Leonhardt and Siddik Turhalli, founders of Cravies, are all about. They appeared on "The Lion's Den", expressing their frustration with the lack of disposal options and monotony in the taste of sunflower seeds, as they shared. Cravies offers a range of six distinct flavors - Grilled Onion, Smokey BBQ, Cinnamon Toffee, and more - aiming to revolutionize the concept of lifestyle snacks.
When they first appeared on the show, Cravies had solely been online for four weeks. In that brief timespan, they had raked in 5,000 euros in sales, with 1,200 packages sold. Their ambition extended beyond the online realm; they sought access to the retail food trade, as well as guidance on sales strategy. In exchange for a 200,000 euro investment, they offered ten percent of the company shares, implying a valuation of two million euros. Carsten Maschmeyer, however, found this valuation excessively high and dropped out early.
One Lion Remains: Ralf Dümmel
Maschmeyer's concerns weren't just about valuation; he was also puzzled by the method of consuming the sunflower seeds. Despite Cravies' promise of a fun snacking experience, Maschmeyer felt it was far from enjoyable. The spice mixtures that provided the taste adhered to the shells of the sunflower seeds, not the seeds themselves, which made his hands dirty after eating. Maschmeyer inquired why the spices weren't directly applied to the seeds, to which Turhalli responded that tradition, experience, and engagement play a significant role in their approach, given his Turkish heritage. Another investor of Turkish descent, Tijen Onaran, found herself reminiscing about her childhood with Cravies.
It seemed that only one lion, Ralf Dümmel, was genuinely intrigued by Cravies. Throughout the presentation, Dümmel reveled in the taste and experience, mirroring a child's delight. Onaran acknowledged that Dümmel would be the investor most likely to propel Cravies forward, advising the founders to accept his offer and exit the competition.
The Compromise Proposition
Impressed by the product but shocked by the high valuation, Dümmel posed a challenge to the founders. He proposed that they reconsider their offer, as an investment of 200,000 euros for 20 percent of the company shares wouldn't be financially feasible for him. The revised offer from the founders was 200,000 euros for 12.5 percent - a reduction in valuation by 400,000 euros. Dümmel wasn't fully satisfied with this compromise, as he had envisioned 20 percent of the company shares for an investment of 200,000 euros.
Maschmeyer intervened, suggesting a compromise figure of 16.25 percent of the company shares for 200,000 euros, equating to a valuation of 1.23 million euros. Dümmel asked for the founders' agreement to this proposal first. Once they conceded, he was satisfied, commenting that their willingness to compromise showcased their desire for his collaboration.
Turhalli's Empathy Scholarship and Future Plans
Cravies, based in Neuss, was officially founded by Siddik Turhalli in 2023. Rio Leonhardt lends his expertise from the gastronomy industry as a part-time product developer. Turhalli is no stranger to entrepreneurship; he co-founded the job and project matching platform Wonderwuzzi in 2019, which was acquired by PumpkinCareers in 2021. He also spearheaded the Empathy scholarship program, earning a spot on the Forbes 30 Under 30 list. Before founding Cravies, Turhalli served as a lecturer for entrepreneurship at the Steinbeis University and a partner at the family office Lepi Ventures. Adrian Majchrowski joined Cravies as a co-founder, handling marketing and operations, and designing their unique packaging. According to their statements, Cravies aimed to be available in 300 markets by April, with plans to expand to over 5,000 retail branches by mid-May.
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- What were Cravies' ambitions beyond the online realm? They sought access to the retail food trade and guidance on sales strategy.
- In the food-and-drink industry, Cravies aims to revolutionize the concept of lifestyle snacks with their six distinct flavors.
- During their appearance on "The Lion's Den", the founders of Cravies, Rio Leonhardt and Siddik Turhalli, were looking to invest in their business, offering ten percent of the company shares for a 200,000 euro investment.
- As they journeyed through "The Lion's Den", the founders of Cravies, specifically Siddik Turhalli, have a background in entrepreneurship, having previously co-founded Wonderwuzzi and served as a lecturer for entrepreneurship at Steinbeis University.
