Terrashroom, an automated mushroom-growing device founded by Jared Steele, aired on the 16th season of Shark Tank USA in 2024. The founder was seeking $175,000 for 2.5% equity, valuing the company at $7 million. Unfortunately, he couldn’t secure a deal with any of the Sharks. In this article, we will explore Terrashroom’s net worth in 2024, details of the Shark Tank pitch, and more.
Terrashroom Net Worth 2024 & Financial Overview
After the show aired, the company experienced significant sales, with an estimated growth rate of 10% per year. Based on the company’s growth rate and founder’s company valuation before the Shark Tank show, Terrashroom’s net worth is estimated at $8.53 million in 2024.
| Annual Sales Revenue | N/A |
| Profits | N/A |
| Lifetime sales | N/A |
Shark Tank Terrashroom Pitch
Jared Steele introduced Terrashroom, an innovative product, on Shark Tank Season 16. During his pitch, Jared sought $175,000 in funding for 2.5% equity, valuing his company at $7 million.
Terrashroom is a smart mushroom-growing chamber designed to make mushroom cultivation easy, even for beginners. The device features a mobile app that lets users remotely control temperature, light, humidity, and air circulation. It also provides real-time data to track the growth process. With Terrashroom, users can grow a variety of mushrooms and harvest them in as little as 7 to 10 days.
Using the Terrashroom is straightforward. First, choose the type of mushroom you want to grow. Next, add water to the chamber. Then, set up and monitor the process through the app. In a few weeks, you can get your tasty mushroom.
Terrashroom is priced at $399, with each unit costing $158 to produce. This gives a profit margin of 60.4% before factoring in other expenses. Additionally, the company offers a subscription service for ready-to-grow mushroom blocks at $30 per block. Each block costs $3.51 to make, resulting in an impressive profit margin of 88.3%.
In August 2022, the company started accepting pre-orders and launched Facebook ads to promote the product. These efforts led to 6,500 pre-orders, generating $780,000 in revenue.
The Sharks were surprised to learn that Terrashroom had not shipped any products yet. They asked about the delivery timeline and the reasons for the delay. There, Jared explained that the development process took longer than expected but assured them the first units would be ready soon. There, he clarified that 1,140 units were scheduled to arrive at a warehouse in Austin by July.
Also, the company built a waitlist of 22,500 potential customers through email sign-ups. However, Mark Cuban expressed concerns about the business’s ability to deliver and felt it was oversold. He was the first shark to exit. Guest Shark Daniel Lubetzky also decided to step out, citing issues with the valuation.
Since no units had been shipped yet, Robert Herjavec decided not to invest, but he believed Jared was a credible entrepreneur for the mushroom market. Lori Greiner said the product seemed over-engineered and chose not to invest.
Kevin O’Leary then offered $175,000 in exchange for 15% equity. Lori intervened as he made his offer, stating she didn’t feel Jared was ready for investment. However, Jared countered Kevin’s offer, proposing 5% equity instead and explaining his reasoning. Unhappy with the counteroffer, Kevin cut him off and firmly withdrew. In the end, Jared left the show without securing a deal.
| Company Name | Terrashroom |
| Founder | Jared Steele |
| Business | Mushroom growing chamber |
| Episode | Season 16, Episode 04 |
| Asked Deal | $175,000 for 2.5% equity |
| Final Deal | No Deal |
| Sharks | No Sharks |
Summary of the Sharks’ Deal
| Shark | Offer | Counteroffer |
| Kevin O’Leary | $175,000 for 15% equity | $175,000 for 5% equity |
| Mark Cuban | No | N/A |
| Lori Grinear | No | N/A |
| Robert Herjavec | No | N/A |
| Daniel Lubetzky | No | N/A |
What Happened to Terrashroom after Shark Tank?
As of December 2024, the Terrashroom is still in business. After the Shark Tank episode aired, Terrashroom announced it was scheduled to begin shipping in April 2024. Small batch shipments were moving smoothly, with mass production planned to start in June.
By August 2024, the company had completed its first field-testing batch, allowing customers to test the product for 30 days and share valuable feedback. In October 2024, Terrashroom began mass production in China to fulfil over 6,500 pre-orders. The first batch of 130 units will arrive at the Austin warehouse on November 13, 2024, followed by a larger shipment of 1,040 units on December 15, 2024.
Terrashroom kept customers updated through regular announcements. In August 2024, the company adjusted its order process to speed up delivery, with a pre-order deadline of September 7, 2024. They also hosted Q&A sessions to answer customer questions and provide progress updates.
Terrashroom has established its initial production line and is now preparing to scale distribution to meet growing demand. The company also plans to expand its offerings. Jared Steele is working on developing an open-source platform that will allow enthusiasts to create their own mushroom grow chambers. This initiative aims to foster a DIY community for mushroom cultivation.
You can order the Terrashroom on their website, but due to high demand, there is a long waitlist. Terrashroom prices each grow chamber at $499, but a launch discount reduces the cost to $399. Every purchase includes one free ready-to-grow mushroom cake. A HEPA Filter Pack for TS-01 (2-pack) is also available as an add-on for $24.99.
Terrashroom Founder
Jared Steele started Terrashroom in May 2022 as the sole founder and CEO. He was in marketing, entrepreneurship, and business management. His speciality is that he comes from a non-technical background, but he has created one of the best unique technical gadgets.
Before starting Terrashroom, Jared attempted to create an electronic product. In 2019, he launched Pombox, a smartphone lockbox to reduce phone use and encourage digital detox. He secured $28,000 in federal funding for the project, but after two years of running the company alone without a technical co-founder, he shut it down due to unsuccessful operations.
Terrashroom originated from Jared’s love of mycology and experimenting with decor and incense. He built his apartment’s first mushroom chamber prototype using CAD software and 3D printing. Jared launched a Facebook ad campaign to test market interest, bringing in thousands of pre-orders, even though the product was still years from completion.
However, by early 2023, progress stalled due to frequent malfunctions in the product’s core electrical system. In a last-ditch effort, Jared posted an online job for an electrical engineer. James Elliott, a recent electrical engineering graduate, responded and joined the team as head of product. Recognizing Jared’s passion and determination, James rebuilt the product’s prototype within three days, fixing key electrical issues and laying the groundwork for future development.
Terrashroom Achievements and Awards
| Year | Achievements and Awards |
| 2024 | The company was featured on Shark Tank Season 16 In March 2024, Terrashroom successfully raised $294,154 through a crowdfunding campaign to support its product development |
Conclusion
Shark Tank is a TV show showcasing different business ideas, helping them succeed. The show featured Terrashroom as one of the ventures. Despite the loss of deal, the company showed that success is possible with the right idea and execution. Now, we eagerly await to see how their success story unfolds in the future.
