iLOLA Tea

Tim and Su-Mari Hill, from Vancouver, British Columbia, asked for $750,000 for 5% of iLOLA, a company that makes patented single-serve loose leaf tea discs designed to replace conventional tea bags, sold with an accompanying humidor to preserve and age the tea. A box of 14 tea discs retails for $25 and is sold online and at select retail locations; the founders plan to build a subscription model and to license the patented disc-making process to other tea brands. The founders invested over $750,000 of their own money, funded partly by selling their family home, and reported $300,000 in sales over a six week period, valuing the business at $15 million based largely on the value of their patent and licensing potential.

Michele Romanow went out citing concerns about the numbers, and Vincenzo Guzzo also declined to make an offer. Manjit Minhas offered $750,000 for 10% plus a 5% royalty until repaid, while Arlene Dickinson and Wes Hall each offered $750,000 for 25%. The founders countered asking for 18%, but Arlene Dickinson held firm at 25%, and after Wes Hall maintained his same terms, Tim and Su-Mari Hill accepted Arlene Dickinson's offer.

iLOLA Tea is still operating and sells through its website.