Kane Bodiam has landed the biggest deal in Shark Tank Australia history. The 36-year-old snagged a whopping A$2.5 million ($2.6m) from Andrew Banks for 22.5 per cent of his iCapsulate coffee company.
Bodiam says the deal was done after a nerve racking two hour presentation which saw Banks battle with sharks Naomi Simson and Glen Richards for a share of the business.
The biggest deal on Shark Tank Australia prior to this episode was for A$750,000.
The former global coffee manager for Gloria Jeans' did his homework before appearing on the Channel 10 show. He researched all the sharks and rehearsed his presentation 500 times.
"As soon as the doors opened and the sharks were looking at me the shakes started and the sweats came," Bodiam says.
"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 produces tens of millions of coffee capsules each year for some of the biggest brands in Australia.
In August, the company will launch the first Australian standard biodegradable coffee capsule.
Bodiam served coffee to the sharks as he told them that iCapsulate, which is only 18 months old, had A$4m in sales last year and produces 35 million pods per annum.
A nervous Bodiam wanted the sharks to stump up A$2.5m for 15.5 per cent of the company - which valued the business at A$16.6 m.
Bodiam needn't have worried. Banks was quick to offer A$2.5m for 25 per cent. Simson and Richards said they would pay up but wanted 33.3 per cent and 40 per cent respectively.
Things turned fiery when shark Steve Baxter questioned Bodiam's figures and demanded more time to think about an offer. In the end, he passed.
Bodiam says he targeted Banks from the start. After a bit of to and fro, 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," Bodiam says.
"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."
Banks says that putting such big money into iCapsulate was a no-brainer.
"The world is desperate for bio degradable coffee pods," Banks says. "Australia alone uses a billion pods and they go into land fill.
"iCapsulate could scale up to be a A$50 million to A$70 million business if all went well."
Bodium's clients currently include Woolworths, Coca-Cola, and Robert Timms.
Shark Janine Allis didn't take part in the bidding because she has an interest in a competing coffee company.