Shark Tank’s Andrew Banks invests $2.5 million
Kane Bodiam has landed the biggest deal in Shark Tank Australia history with the 36-year-old receiving $2.5 million from Andrew Banks.
The money will give Andrew Banks 22.5 per cent share of Kane’s iCapsulate coffee company.
Kane explained the deal was secured after a two-hour presentation which saw Andrew Banks compete with sharks Naomi Simson and Glen Richards for a share in the business.
Previously on Shark Tank Australia, the biggest deal was $750,000.
The former global coffee manager for Gloria Jeans practiced his presentation 500 times and rehearsed the sharks.
“As soon as the doors opened and the sharks were looking at me the shakes started and the sweats came,” Kane said.
“I’d practised my pitch so many times and it all went out the window. When I started to serve them coffee I thought I was going to drop one of the cups.”
iCapsulate makes tens of millions of coffee capsules every year and in August, the business will launch the first Australian biodegradable coffee capsule.
Kane served the sharks coffee as he informed them that iCapsulate, which is only 18 months old, had $4 million sales last year and produces 35 million pods per annum.
Kane wanted the sharks to invest $2.5 million for 15.5 per cent of the company.
Andrew Banks quickly offered $2.5 million for 25 per cent. Naomi and Glen were interested in paying up but wanted 33.3 per cent and 40 per cent respectively.
Steve Baxter questioned the company’s figures but then passed on the offer after demanding more time to think about it.
Kane targeted Andrew from the start and in the end, they settled on 22.5 per cent.
“With Andrew, it was his connections in the USA and also his close friendship with Les Schirato the owner of Vittoria coffee,” Kane said.
“Our capsules are leading the market here and in New Zealand and this (linking with Banks) is a great way to get into America which is growing increasingly espresso compatible.”
Andrew explained that investing such big money into iCapsulate was a no-brainer.
“The world is desperate for biodegradable coffee pods,” Andrew said.
“Australia alone uses a billion pods and they go into land fill. iCapsulate could scale up to be a $50 million to $70 million business if all went well.”
Woolworths, Coca-Cola and Robert Timms are some of Kane’s current clients.
Image credit: Ten