The latest episode of Shark Tank Vietnam Season 7 featured several startups with substantial financial backing. Yeast Era, the first startup to pitch, prompted Shark Binh to exclaim, “Your family must be wealthy,” upon hearing their investment amount.
Founder and Director of Yeast Era, Le Thanh Hoai Phuong, introduced their company as a provider of 100% protein derived from microorganisms, utilizing exclusive biotechnology and holding four patents.
This protein offers abundant and sustained energy and contains beta-glucans, known for their cardiovascular, digestive, and immune-boosting properties. It caters to everyone, including vegetarians, those with special dietary needs, and individuals with medical conditions.
Phuong identified their target customers as individuals passionate about sports and fitness, a demographic open to trying new products and technologies.
Yeast Era sought 5 billion VND for a 5% stake, valuing the company at 95 billion VND pre-money.
– “How did you arrive at this valuation?” Shark Binh inquired.
– “We’ve invested a total of 100 billion VND in this project, a combination of my personal funds and investments from two angel investors.”
– “Is that a lot of money?”
– “Yes.”
– “Your family must be wealthy. Who are your parents?”
“My family is in the animal feed business. That’s why I wanted to create something that could sustainably and healthily replace traditional animal farming. I was fortunate to find two angel investors who joined me in this research journey,” Phuong shared.
Well-Funded Startup Invests Nearly 70 Billion VND in a State-of-the-Art Facility, Confidently Ranking in the Top 3 Globally in Producing Yeast-Based Technology
CEO Phuong highlighted their competitive advantages in technology and pricing: “In terms of technology, we are one of the first three factories globally to produce yeast-derived products. Regarding pricing, our product is affordably priced for markets outside Vietnam. For instance, in Indonesia, our product is mid-range, and in European markets, it’s even half the price of similar products. However, in Vietnam, Yeast Era is positioned as a premium brand.”
A unique feature of Yeast Era’s technology is its ability to recycle 99% of the water used in the production process, reducing CO2 and methane emissions compared to traditional protein production.
Additionally, their technology is weather and season independent, allowing production anywhere.
Financially, Yeast Era began in 2019 with a total investment of 100 billion VND, primarily from the founder and two angel investors, along with a 3.5 billion VND bank loan. The startup invested 67 billion VND in constructing a factory in Nghe An province due to the large-scale research requirements.
Phuong shared that in 2022, Yeast Era incurred a loss of 6.6 billion VND due to enterprise management and technology testing expenses.
“We were supposed to launch last year, but the biotechnology was newer than expected, and we underestimated the time needed for research. That’s why we’re only launching our product at the end of this year,” Phuong explained.
Startup Lacks Market Clarity, but Four Sharks Show Interest in Investing
Both Shark Hung and Shark Binh remarked that the startup lacked clarity, finding themselves at a “bottleneck” – a critical juncture where everything is compressed together, requiring a leap forward.
Shark Hung also questioned the startup’s valuation logic, arguing that technology, patents, and the factory don’t directly benefit investors; their value lies in generating revenue.
In response, the startup countered: “In biotechnology, large-scale operations like ours would have attracted investments in the hundreds of millions, if not billions, of dollars, even in the research phase. We’ve overcome the most challenging aspects of biotechnology: successfully transitioning from lab research to industrial-scale operations.”
Shark Minh Beta identified the startup’s biggest challenge as market-related and thus refrained from investing without certainty. However, the other four sharks expressed interest in Yeast Era.
Shark Thai offered 15 billion VND for a 15% stake, requesting exclusivity in the Vietnamese market and online business. The startup could still sell in other markets as long as pricing was maintained.
Shark Le My Nga, with her background in medicine, technology, and business, envisioned targeting patients as the primary customer segment. She also offered to help refine the product for the global market.
Shark Hung shared a similar vision and proposed a joint deal with Shark My Nga: 5 billion VND for a 5% stake, with each shark receiving a 5% dividend preference for five years.
The NextTech Chairman offered 20 billion VND for a 20% stake, emphasizing the condition of a transparent due diligence process.
In the end, the startup chose Shark Thai’s deal: 15 billion VND for a 15% stake, with the condition of exclusivity in the online business market in Vietnam for one year.
Sealing a deal worth nearly 50 billion VND with Aplus Home, Shark Hung denies the “golden age” of Shark Binh: When rice and high-quality grains are scarce, affordable housing will take the lead.
Furthermore, Shark Hung believes that Aplus’s model is addressing the “pain points” of the real estate market and generating cash flow for investors.
Shark Binh showcasing Phuong Oanh’s cooking skills on TV while expressing his views on raising children: “All assets belong to the father, the child will enter life empty-handed!”
According to Shark Binh, scarcity is the father of creativity. Startups are no different, as the lack of money forces them to think outside the box and innovate in order to succeed.
Shark Hùng Anh’s Tết Bonus: No More Gifting Female Employees with Scooters, They All Drive Cars Now!
In 2021, Shark Hùng Anh amazed many people by giving away a 1 billion VND car and 6 Honda SH motorcycles to his employees. This news came as a surprise, especially considering that it was during the time when the COVID-19 pandemic was starting to escalate, causing significant impacts on numerous businesses.
Startup Raising $1 Million on Shark Tank Season 6: 40% Surge in Sales, Securing Placement in 4 Hospitals and 4 Drugstore Chains
“When running a business, we are no longer ourselves. If you decide to start up, you must live a different life,” Founder Tracy Bee Le Ngoc Thu Trang demonstrates a strong personality that convinced Shark Hung Anh to commit to a $1 million investment, despite initially only asking for $500,000.
Shark Minh Beta at the age of 34: Holding a cinema chain worth 600 billion VND but still asked “Why doesn’t anyone know you?”
After 7 years of this question, now a businessman named Bui Quang Minh, or also known as Shark Minh Beta, has become quite familiar with the media.
