From Triangle Inno.
A sales rep turned entrepreneur scored a $350,000 investment pledge for her North Carolina seafood startup on the hit show "Shark Tank."
Danielle Mahon, CEO and founder of Topsail Steamer, won a deal from two investors on the ABC show: Raising Cane’s CEO Todd Graves and serial investor Lori Greiner.
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The deal is now in the due diligence process, Mahon said. But her appearance on the show led to a 500 percent increase in orders for the company, which is based in Topsail on the coast.
“And we’ve got a ton of interest in franchising,” she said.
For years, New Jersey-native Mahon was in pharma equipment sales in the Research Triangle Park area, most recently at EpiCypher. She moved to Raleigh with her family in 2003.
But she missed the Jersey Shore.
“We said, let’s go see where our beach is going to be, where our shore is going to be,” she said. When her family found Topsail, it was unanimous: “Oh, this is going to be it.”
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But it was a girls' trip more than a decade later that would change everything. They were at a restaurant serving seafood boils when she saw some of the pots going out to customers. Why not turn just that into a business? Mahon, nostalgic for flavors from her childhood summers at the Jersey Shore, started researching and talking to local clammers and shrimpers.
She opened her first store in 2017 and moved to Topsail full time.
The single-use pots Topsail Steamers makes contain all the ingredients for a traditional boil — from seafood to sausage.
Lauren Ohnesorge covers technology, startups, banking, lawsuits, transportation and economic development. Her reporting has won numerous awards. Before joining TBJ, she previously worked in both TV and print media in North Carolina.
As she explained it on the episode, which aired Oct. 25, “You just add two cups of water or beer if you like, to steam at home, at the beach, tailgate, campground, with our easy instructions.”
Topsail Steamer now has locations in North Carolina, New Jersey, Alabama, Delaware and Florida. In North Carolina, there are stores in Topsail Island, Wrightsville Beach and Charlotte.
The company also does online orders.
Mahon told the "Shark Tank" investors that the company did $4.5 million in sales last year and should reach $5.7 million in 2024.
The "Shark Tank" appearance was a whirlwind. Mahon asked for $350,000 in exchange for an 8 percent stake in her company. Graves, the guest Shark on the show, and e-commerce expert Greiner signed on, initially countering with $350,000 for 20 percent.
“We’re going to take you to the moon fast,” Greiner said on the show.
Mahon talked them down to 16 percent and a deal was made. Mahon said due diligence is happening behind the scenes.
But the immediate impact has been exposure. After the episode dropped, the company's website saw 50,000 visits, resulting in a major order boost.
“Where we know we’re going to see the real impact is the holidays, for gifting, all of those things,” she said.
Knowing that appearing on the show can result in widespread exposure, she started making arrangements to prepare before the episode aired.
“We’re coming into our busy season. We just increased that preparation,” she said.
In the meantime, she’s also trying to capitalize on the interest when it comes to franchise opportunities — which was actually a controversial subject on the Shark Tank episode.
Lauren Ohnesorge covers technology, startups, banking, lawsuits, transportation and economic development. Her reporting has won numerous awards. Before joining TBJ, she previously worked in both TV and print media in North Carolina.
Graves told Mahon on the show that franchisees “will never run restaurants or businesses as well as the founders,” claiming his company is worth four times more than it would be if it were a franchise.
But Mahon told TBJ it’s still the direction she’s leaning when she thinks about growing Topsail Steamer.
“It will be interesting when the deal closes and we’re partnering up,” she said. “I’m somebody who has always been really open to listening to advice and looking at different business models.”
Mahon said she looks at franchising as “partnering with other entrepreneurs, likeminded people who want to grow and build a business.”
“I’m going to be very intentional about the people I partner with,” she said.
In the meantime, Mahon said the plan is to expand in both directions — both brick and mortar “where we’re going to be spreading out” and online, where Topsail will beef up its online presence.
The plan includes Raleigh. Mahon said a Raleigh franchisee has already signed an agreement and is looking for a location, with plans to open in the first half of 2025.
Topsail Steamer has about 30 employees now, a headcount that swells to 70 during the holiday rush.
Lauren Ohnesorge covers technology, startups, banking, lawsuits, transportation and economic development. Her reporting has won numerous awards. Before joining TBJ, she previously worked in both TV and print media in North Carolina.