From a Friend's Kitchen to $1M Sales –'I Congratulate You,' Kevin O'Leary Says After Tasting the Cookies

When Saphira and Maurizio Rasti started baking cookies in a borrowed kitchen during the COVID-19 pandemic, they could hardly have imagined it would lead to a $1.6 million valuation on Shark Tank. 

But the Costa Mesa, California-based couple didn't just wow the Sharks – they made them believe in Nowhere Bakery's potential to revolutionize the dessert industry.

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The story began in March 2020, just as the world went into lockdown. With $400 to their name, Saphira began baking allergen-friendly cookies and brownies to address her dietary restrictions. 

"We're free from dairy, eggs, gluten, soy, refined sugar, sugar alcohols and we're paleo-friendly," she explained. The name "Nowhere Bakery" reflected their humble beginnings – no storefront, no commercial kitchen, just homemade goods hand-delivered to customers.

Fast-forward to 2023 and the couple walked into the Shark Tank with a commercial kitchen, an impressive $770,000 in 2022 revenue and a projected $1 million for 2023. Even with those numbers, the taste of their cookies won over the Sharks.

"This tastes like a real cookie," exclaimed Barbara Corcoran, visibly surprised. "This tastes absolutely delicious." Kevin O'Leary, known for his sharp critiques, agreed: "I congratulate you. We've had so many plant-based cookie deals and they all taste like s—. This is incredible."

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Despite the rave reviews, O'Leary raised concerns about their profit margins. With $770,000 in sales, the company netted just $32,000 in profit, which he attributed to high production costs. He urged the Rastis to partner with a co-packer, offering $200,000 for 20% equity with the condition that they outsource their baking.

"That's a possibility, but right now, we can control everything ourselves," Maurizio countered. Saphira added, "We value the quality and consistency of our treats."

Barbara Corcoran, however, had a different perspective. "Every food product [founder] I've invested in who moved to a co-packer regretted it," she said, sharing a cautionary tale from her portfolio. Corcoran offered $100,000 cash and $100,000 as a line of credit for 15% equity.

Guest Shark Jason Blum, CEO of Blumhouse Productions, proposed teaming up with O'Leary, splitting the investment and equity equally. O'Leary, sold on the idea, noted, "Two Sharks are better than one."

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But the Rastis ultimately struck a deal with Corcoran, negotiating her stake down to 12.5% in exchange for $200,000. "Barbara understands our vision," Saphira said after the deal.

The Rastis' rise mirrors a growing trend in the U.S. food industry. According to a 2020 Meticulous Research report and as cited by Business Insider, the plant-based food market is projected to grow at a compound annual rate of 11.9%, reaching $74.2 billion by 2027. 

Meanwhile, according to Meticulous Research, The Clean-Label Ingredients Market is expected to grow at a CAGR of 6.9%, reaching $80.69 billion by 2030. "We started in a friend's kitchen and now we're on a national stage," Maurizio said. "It's time to take Nowhere everywhere."

Following its appearance on Shark Tank, Nowhere Bakery experienced a surge in sales, expanded to 75 U.S. stores and gained further attention through a collaboration with Gwyneth Paltrow. With an estimated annual growth rate of 10%, its current net worth stands at approximately $1.94 million.

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