Entrepreneurs win a ‘Shark Tank’ deal for Quabo

Investor Daniel Lubetzky

Twenty-two-year-old entrepreneurs Nick Hamburger and Zack Schreier started their first business in sixth grade, charging students at their school in the Chicago area $ 3 for some cool Japanese soda pop they bought for $ 1.25. Until the administration closed them. Ten years later, their latest venture – a line of healthy egg protein-based chips called Quevos – simply promised an investment of about $ 400,000 in the reality TV show ABC “Shark Tank” by Daniel Lubetzky, who invented Kind Bars.

“I’m excited to help Nick and Zack realize the potential of Cavos. They’ve created a very cool and distinctive product with tremendous mainstream appeal, and I love that they’re best friends and co-entrepreneurs since childhood,” Lubetzky said after announcing the investment on Friday (January 22) in – “Tank Shark”.

Hamburger told PYMNTS in an interview that Lubetzky agreed to purchase 10 percent of the company for about $ 200,000 in cash and a credit line of $ 200,000, as well as provide instructions to 22-year-olds.

“We were hoping to make a deal with Daniel because he is experienced and incredibly successful [the] Healthy dining space, “Hamburger said.” We’re going to be with him on repeat calls to check in and get his strategic advice, and he also has an entire staff in his investment firm that can help. “

An idea born of a dirty omelet pan

It’s a big move by a company that started when Schreier, a type 1 diabetic, reminded Hamburger that he likes the crispy leftovers and chip figures that will remain in the pan after he has made a healthy egg white omelet.

“Zack came to me at the end of high school and said, ‘Hey I make these crispy egg pieces and I love them. They’re like French fries. What if we made an egg snack?'” Hamburger recalled. “We both immediately saw the promise of it, because there really were no high-protein and carbohydrate-rich chips [on the market]. ”

Hamburger said he and Schreier – who have been friends since elementary school – always thought they might start a business someday, so they were always in
Look for ideas for good products.

They chose the name “quevus” as a combination of the word “fast” and “huevos”, Spanish for “eggs”. The couple then began working on a recipe, even when Hamburger went to the University of Chicago to study philosophy and Schreier studied at Williams College of Economics and Philosophy.

The idea started in high gear in 2018, when they attended a 10-week entrepreneurship course and won about $ 15,000 in seed money through the University of Chicago’s new challenge.

“At this point we were addicted,” Hamburger said.

Two months later, the couple won a spot in a Kraft-Heinz incubator program for new consumer products, which Hamburger said was “crazy, because there were several hundred candidates for five places and we were the only company before income. We also did not raise money, and we had a team of all college kids.” They have experience. “

Sets off

By then the idea had progressed enough that Hamburger and Schreier decided to leave school to continue in full-time quibus.

They began selling French fries in the fall of 2018. About two years later, the snacks are available at Quevos.com, Amazon.com and over 1,000 whole food markets, Wegmans, Vitamin Shop and other retailers, which are available in four lacto-friendly flavors. And two “classics.”

The lactose-adapted versions of the chips offer eight grams of protein and four grams of fiber per bag, with only four grams of net carbs. Quevos is currently offering a “Shark Tank Intro Pack” package of five packages for $ 14.99, while the chips are in stores for about $ 2.49 per package.

Hamburger said the company, which has 15 production staff and seven full-time employees or business consultants, sells about 75,000 bags a month, but expects to temporarily triple the “shark tank” publication. He predicts that sales will eventually stabilize at about 125,000 bags a month, which will allow Quibus to break down by the end of the year.

The developers have raised about $ 2 million to date through development grants, angel investments and a $ 72,000 Kickstarter campaign (donors have received free chips and no equity).

Hamburger said Cavos plans to use Lubetzky’s $ 400,000 investment to hire more workers, including someone who will develop more retail distribution.

Five-year program

Hamburger and Schreier recently thought they would sell the company after putting in another five years. Hamburger, however, said Lubetzky encouraged them to stay longer and develop the company further. It recently sold the Kinds bars to candy giant March in a deal that reportedly made the company about $ 5 billion.

Schreier returned to college after Kibbutz received production from the field, but remained on the company’s board of directors. Hamburger serves as CEO and has yet to return to school, but expects to do so one day. He wants to return to his original plan to pursue a career in meditation or mental health, and vows he will eventually take a year off to live in the convent and ponder. “It’s something I always wanted to do.” Said Hamburger. “But it’s obviously pushed now.”


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