SHARK TANK STORY | My First Million Podcast

This My First Million podcast episode features Shaan Puri and Sam Parr interviewing Julia Cheek, founder of Everlywell, about her Shark Tank experience. Cheek details the extensive application and preparation process, highlighting the importance of crafting a compelling human interest story. She also discusses the post-show deal-making process, revealing that the final deal with Lori Greiner was even better than the one initially agreed upon on-air.

• Shark Tank Application Process: Cheek describes the rigorous application process, including a 50-page written application, multiple interviews, and months of collaboration with producers to refine her story and pitch. She emphasizes the significant time commitment involved, stating that preparing for Shark Tank consumed 80% of her time in 2017.

• The Shark Tank Pitch and Deal: Cheek recounts her experience on the show, mentioning her initial nervousness despite prior public speaking experience. She successfully secured a deal with Lori Greiner, the largest deal for a female entrepreneur at the time, based on a $20 million valuation. The deal involved a line of credit at an 8% interest rate for 5% of the company, which later improved in Everlywell’s favor during post-show negotiations.

• Post-Shark Tank Diligence and Deal Changes: Cheek explains that many deals made on Shark Tank never materialize or undergo changes after the show. She describes Lori Greiner’s due diligence process as thorough and fair, ultimately resulting in a more favorable deal for Everlywell.

• Lori Greiner’s Investment Strategy: Shaan, Sam and Julia discuss Lori Greiner's investment approach and her success with several prominent Shark Tank companies. They speculate about the source of Greiner's capital, questioning whether it stems from direct investments, a fund, or the cash flow from successful portfolio companies.

• Everlywell’s Post-Shark Tank Traffic and Sales: Cheek shares the impact of the Shark Tank appearance on Everlywell’s website traffic and sales. While the company experienced a 30x increase in traffic, the sales boost was more of a sustained increase over the following days and weeks rather than an immediate spike. This resulted in $1 million in sales within four days of airing and continued growth in the months that followed.

• Everlywell’s E-commerce Platform: The conversation briefly touches upon Everlywell’s choice of e-commerce platform, with Cheek mentioning their custom-built solution on Stripe and acknowledging that Shopify might have been a better option in retrospect.