Coffee pods company iCapsulate’s Net Worth is $1,000 US Dollars. As of today, the company generates Zero revenue and has shut down its operations.
On the Shark Tank episode, Andrew Banks offered $2.5 million for 22.5% equity in the company and was accepted by the company’s founder.
However, later it was found out that many false and misleading claims were made by iCapsulate’s founder on Shark Tank and Andrew has dropped from the deal.
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What happened to iCapsulate after Shark Tank?
‘Due Diligence’ may be unfamiliar to the iCapsulate founder.
The legal team of the Shark who decided to invest in the business will confirm and audit every claim made by a user on Shark Tank regarding sales or performance.
Many skeletons were discovered by the Andrew’s team when auditing iCapsulate.
One, The statement made by the founder that he has long-term contracts with major coffee brands in Australia, is a total lie.
There exists no such agreement nor interest from those companies to partner with iCapsulate.
Other False Claims
iCapsulate claimed on Shark Tank that their coffee has less oxygen residue and more coffee solids than all their competitors.
After the show was aired, the competitor companies filed lawsuits against iCapsulate for making fake claims.
On top of this, iCapsulate was in huge losses at that time, but due to accounting malpractices, this fact was hidden.
Therefore, nine months after the Shark Tank episode, Andrew has dropped out of the deal.
After that, the company failed to secure any investment from venture capitalists, or any bank loan.
Due to its false claims, existing customers also left the company. Finally, after one and half years of Shark Tank, iCapsulate has closed its business.
What is iCapsulate?
iCapsulate claims that they are the largest coffee pod manufacturer in the southern hemisphere, producing 35 million capsules per annum.
iCapsulate later launched the world’s first biodegradable, hermetically sealed capsule.
The difference between this and other capsules is that it is iCapsulate is biodegradable so you can drop it straight in garden.
iCapsulate has 35 percent higher coffee sold than any other manufacturer in Australia.
They also have the lowest oxygen residual – meaning the freshest coffee capsule as well. All these statements were proven to be false.