Samantha Meis and Connor Riley have a monthly coffee subscription business. Will they brew up a deal on
Shark Tank MistoBox Update
- Entrepreneurs: Samantha Meis and Connor Riley
- Business: Monthly coffee subscription
- Ask: $75,000 for 15% equity
- Result: $75,000 for 30% equity
- Shark: Mark Cuban
Samantha and Connor came on the tank to pitch their business, MistoBox. They shipped premium artisan coffee directly to customers’ doors each month.
Kevin O’Leary found the coffee delicious and thought he might trip up the young entrepreneurs by asking them their cost of customer acquisition. Samantha didn’t miss a beat and told him it was approximately $4.60, earning herself a compliment from Mr. Wonderful in the process.
Robert Herjavec asked who Samantha and Connor were targeting as customers. Samantha said they were going after the coffee crowd mostly, but were also receiving a great response from foodies who loved coffee and were looking to learn more about it.
Robert asked for some information regarding the pricing, and Connor shared there were three ways to pay. Customers could pay monthly for $15 per month, pay six months upfront at a $14 per month cost, or commit to a full year and pay $150, or $12.50 per month, for the subscription.
Robert asked what margins they were collecting on the subscription costs, and Connor answered they were collecting 30 % to 45%. Connor also said they were currently sourcing their coffee at a “steep discount” or for free. Lori Greiner and Daymond John couldn’t believe that they would get it for free, and asked why. Samantha answered that they were putting coffee into the hands of new customers, and serving as a distribution channel for these coffee farmers and roasters was enough incentive for them.
Lori asked how long they had been working on MistoBox, and Connor said they were entering their fifth month of operations and had recently surpassed 700 total customers. Robert asked how much they had invested into MistoBox, and Connor answered that they raised $9,000 from a successful Kickstarter campaign and put in $6,000 each of their own money as well.
Kevin asked what the plan for the $75,000 was, and Connor said they were looking to grow, acquire a space, and hire staff. At the time, he and Samantha were working from her 1,200 square foot apartment where she was also trying to live, so the situation was less than ideal.
Kevin called them a “crapshoot,” but decided to offer $75,000 in exchange for 25% equity. Samantha smiled and politely asked if there were any other offers from the other sharks. Robert said he applauded their business, but he couldn’t see the long-term vision, so he was out.
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Lori, instead, said she wasn’t a coffee drinker, and so she was not the right partner for MistoBox. Daymond said the same, and both were out. Samantha smiled at Mark and told him that he seemed to know a lot about subscription-based businesses and SEO. Perhaps he’d make a good partner for MistoBox?
Mark said he was “not all the way there yet,” and Samantha asked what it might take to get him there. Kevin, feeling snubbed, said he was considering retracting his offer. For fun, he decided to put a 30-second timer on his offer.
Mark said he was “convincible” but he’d need more equity than what Kevin asked for. Samantha asked if they could have a “standstill” and go consult in the hall, but Kevin was determined to let the clock run down and take his offer off the table.
Connor asked if Mark would accept $75,000 for 30% equity. Mark agreed and the deal was done. What happened next? Keep reading our MistoBox update to find out!
We have great news to share in our MistoBox update! In a relatively short period of time, MistoBox was able to sell more than $2.5 million in coffee and subscriptions to their customer base. They would eventually make a deal with Clive Coffee, who acquired them in November 2020 for an undisclosed amount. Connor stayed on as part of the management team, but details regarding his current equity share are undisclosed. MistoBox remains in business in 2023.
Would you like to learn about the other companies featured on Season 4 Episode 23? Follow the links below!
- Squirrel Box Update
- The Vermont Butcher Clock & Board Company Update
- Mee-Ma’s Louisiana Gumbo Brick Update
For even more on companies and products, be sure to stop by our Season 4 Products Page!
Jennifer is an avid Shark Tank fan that has been watching the show for years. She serves as Senior Editor at Shark Tank Recap and ensures that all our information is accurate and that our posts are up to date. Her favorite Shark Tank products are Le-Glue and Ring!