Vending

Burger vending machine co-founders secure $1.5 M 'Shark Tank' investment

Photo: Adobe Stock

April 24, 2024

Dan Braido, Audley Wilson and Andy Siegel, co-founders of the start-up hamburger vending machine company RoboBurger, secured a $1.5 million investment from "Shark Tank" judge Kevin O'Leary and guest judge Michael Rubin, CEO of Fanatics, according to a CNBC news report.

At the time of the episode's filming, RoboBurger had been in beta testing for 18 months, with more than 12 thousand burgers sold. They projected $1.4 million in annual revenue by the end of the calendar year, according to the report. The company needed funding to scale up its production process.

The co-founders were met with skepticism on the part of the judges, however. "This is a big idea, and for that, I commend you guys. I just don't think you have the business model right," Ruben said. "But I think this could be very successful . . . if it actually works, it could be massive. It could be a multibillion-dollar business."

The RoboBurgers proposed a $1.5 million dollar investment in exchange for a 5% stake in the company. Rubin and O'Leary countered with $1.5 million with market rate interest payments and a 10% stake. The co-founders then negotiated O'Leary and Rubin down to a 9% stake before saying yes.