Fiasco Gelato

James Boettcher of Calgary, AB asked for $500,000 for 10% equity in Fiasco Gelato, a handmade gelato and sorbet company he took over in 2009 and has grown from scoop shops into grocery retail across Alberta and the Prairies. Products sell in cafes, restaurants and retail stores for about $10 a jar, cost of goods is 40%, and the company has grown to about $3 million in sales with roughly $450,000 in profit this year. James explained the funds would help pay down debt from a new $2 million, 9,000 square foot production facility built with about $1 million in debt, and improve manual packaging efficiencies.

Jim Treliving offered the full $500,000 as a 10% royalty rather than taking equity, citing his experience in franchising and restaurants. Joe Mimran offered the full equity ask of $500,000 for 10% but was undercut by Jim's quick move. Michael Wekerle went out saying he was not confident in scaling the niche business, and Michele Romanow raised concerns about a discrepancy between store count and reported sales before going out without an offer. James accepted Jim Treliving's royalty offer.

Fiasco Gelato is still operating and sells through its website.