Cabinet Health Net Worth 2023 – What Happened After Shark Tank
From fighting the problem of plastic waste to creating sustainable containers and pouches, Cabinet Health is breaking through barriers in the medical industry.
Achel Patel and Russell Gong went onto the tank seeking an investment of $500,000 for 2.5% equity – and while that might not seem like a lot, in a Ludacris business, it is everything.
Continue reading to get an in-depth overview of Cabinet Health’s time on Shark Tank.
What Is Cabinet Health?
Cabinet Health is one of the most well-known healthcare companies out there today.
They drive their focus toward creating plastic-free and sustainable medicine containers and pouches.
So, how does it work? Customers can order medicine from this online pharmacy, where they will receive a reusable container and refill pouch. They must then put the pills from the pouch into the glass container.
The pouch is compostable and made from very specific and economic biomaterials, whereas the glass container is 100% recyclable.
Cabinet Health has partnered with Valisure, rePurpose, Grove, and more over the last four years to create an environmentally friendly name for itself.
In December 2022, Cabinet Health raised over $17 million, led by the Global Impact Fund, an incredible achievement for the company.
As of January 2023, the healthcare company has raised over $23.6 million in investments from multiple different investors, including TechStars, Gaingels, SOGAL Ventures, and more.
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Who Is The Owner?
Achal Patel (CEO) and Russell Gong (President) founded Cabinet Health in 2019.
Mr. Patel studied at the University of Virginia and worked in multiple positions at Deloitte. He is one of the co-founders of Cabinet Health and the CEO.
Russel studied AI at MIT Sloan School of Management and served as an infantry officer in the US Army for eight years. He is one of the co-founders and the President of Cabinet Health.
What Happened During The Pitch?
Compostable and sustainability are the main selling points they shared with the Sharks as they entered the tank. Grabbing the investor’s attention, they sought a $500K investment for 2.5% equity.
The duo continued their pitch by explaining how much their products start for and what their margin is. For their standard starter set, it sells for $10-20 with a 60-80% makeup.
As of January 2023, they have over 700,000 customers and have made over $14 million in the past year. The co-founders are proud to explain how they are now profitable on a unit basis and are investing more in research and development.
Barbara believes that too much risk is involved in investing, so she’s out. Continuing, the duo said they seek to make $25 million in revenue and improve their -20% net income by 10%.
With all these big numbers and high-risk values, Mark didn’t think it was the right fit for him, so he pulled out. However, Kevin went in for an offer of $500K for 12.5%, whereas Tony Xu shot in with a counteroffer of the same investment for only 10% equity.
Patel suggested that Kevin, Tony, and Lori team up, which Lori declined, but the former two agreed.
The co-founders walked away with new business partners, Kevin O’Leary and Tony Xu.
The investors offered the duo $500K for 7% equity and 2% of royalty until $1 million was given back to the sharks.
Cabinet Health received some great media attention from Shark Tank. Although they won’t reach profitability until late 2023, we have no doubt with Kevin and Tony on board; they will get there.