Overview
Minus Cal was a protein bar startup founded by Crom Carmichael and Barrett Jacques. The company claimed that their protein bars could block fat absorption using an ingredient called Choleve, which was derived from green tea.
Minus Cal appeared on Shark Tank in 2020 but failed to secure a deal. The company went out of business in the same year.
Shark Tank Pitch
Crom and Barrett appeared on season 11 of Shark Tank, asking for $500,000 in return for a 20% equity stake. The Sharks were not impressed with the product, with Robert Herjavec stating that it didn’t taste good.
Mark Cuban was skeptical and questioned the validity of their claims. The Sharks also did not like the valuation, especially as they did not have substantial sales to fall back on.
The duo left the Tank empty-handed.
The Downfall of Minus Cal
After the episode aired, Minus Cal’s sales began to decline, and the company struggled to compete in the highly competitive weight loss industry.
The lack of scientific research and negative reviews from customers were red flags for potential buyers.
Minus Cal’s social media presence went quiet in 2019, and the company later shut down its online store. The company officially went out of business in 2020 and did not release any sales figures.
Today, Crom Carmichael is the CEO and founder of Nashai Biotech LLC, a pharmaceutical research and development company.
The Founders’ Backgrounds
Crom Carmichael and Barrett Jacques both attended Vanderbilt University.
Crom received a master’s degree and later worked as a columnist for the Nashville Tennessean. He then worked as a business and political commentator for WLAC-AM and WSMV-TV before becoming an angel investor.
Barrett initially made a name for himself in the music industry, signing as a recording artist with Sony Music Entertainment after college.
Founding Minus Cal
Barrett discovered Choleve while creating a healthy protein bar startup. Choleve is an ingredient derived from green tea that has the ability to keep the small intestine from taking in fat.
He worked with Crom to extract Choleve from green tea and increase its concentration by 20 times.
The business launched in 2017.
Lessons From Minus Cal’s Success
Based on the Shark Tank episode about Minus Cal, here are three practical tips for aspiring young entrepreneurs:
1. Clearly define and communicate your product’s benefits
Make sure you can clearly and concisely explain what your product does and how it benefits your target market. The Minus Cal entrepreneurs struggled to effectively communicate their product’s main selling points, which led to confusion among the Sharks.
2. Have realistic expectations and valuations
When seeking investment, ensure your business valuation is realistic, especially if you have little to no sales. The Minus Cal entrepreneurs asked for $500,000 for 20% of their business, which the Sharks found to be too high given their lack of revenue.
3. Be prepared to defend your claims with data
Investors will scrutinize your product’s claims, especially if they sound too good to be true. Having solid data and evidence to back up your claims is crucial.
The Minus Cal team faced skepticism about their health claims and struggled to provide convincing evidence, which hurt their credibility.
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