The milk is boiling: Thelen and three founders engage in a heated deal fight in the DHDL finale
Things got heated at the season finale of "Die Höhle der Löwen" (DHDL) on Monday evening: Two lions worked up a sweat while negotiating with three Bavarian co-founders of Precision, the milk alternative of the future. Enthusiasm was met with skepticism – the founders behind the product were convincing, but the proposed deal terms initially left the lions with a hard time.
Between bales of straw and fake udders, Frank Thelen made it clear right at the start of a small milking competition: "Cows are not my thing." The pitch from Munich-based Precision wasn't about farmyard romance, but rather about a milk alternative that would surpass all existing ones: Fabio Labriola, Philipp von Plato, and Malte Zeeck finally entered the cave with an oversized bottle from Precision.
The Munich-based startup has set itself the goal of bringing a milk alternative to the market that not only impresses with its taste but also with its nutritional values.
The founders explained on the show that they have invested 1.5 years of research and development with the Fraunhofer Institute into their product. Their promise: The alternative tastes almost like real cow's milk and consists of 97 percent plant-based ingredients and water, and only three percent milk protein. It contains no animal fat, no lactose, and no cholesterol, but instead contains vitamins, calcium, fiber, and unsaturated fatty acids.
Furthermore, the founders said Precision Milk is significantly more sustainable than animal milk. Compared to conventional cow's milk, it reduces CO2 emissions, reduces factory farming, and uses less water. A so-called precision process is used to produce the product, which also gives the product its name.
The founders' long-term goal is not only to improve their milk alternative to the point where it will be completely cow-free in the future, but also to produce yogurt and cream cheese. To enter the market, the founders need the help of a lion: They offered them an eight percent stake for €500,000.
To convince the lions of their milk alternative, they served cow's milk and their specially developed Precision alternative in a blind tasting. All the lions immediately recognized the "right" milk. "You kind of messed up the pitch there," Thelen criticized.
While Ralf Dümmel and guest Lion and entrepreneur Christian Miele weren't convinced by the taste, Judith Williams and Janna Ensthaler seemed impressed. "I prefer the alternative," Williams emphasized in a direct comparison.
The three co-founders are no startup newbies: Fabio Labriola founded the online shop Fashionette, but now, according to his own statement, wants to dedicate himself to a project with real impact. Philipp von Plato and Malte Zeeck knew each other from their student days and founded the network InterNations in 2007. Von Plato was also co-CEO of Westwing – he and Christian Miele know each other from that time. Miele thought the three founders were great, but struggled with the taste of the milk alternative and ultimately dropped out.
Two lions were particularly interested in Precision: Frank Thelen and Janna Ensthaler. "Why are you worth over five million?" Thelen wanted to know. There's a huge market, they've invested a lot of intellectual property in the product, and they already have 20 investors on their side, the men argued.
Thelen was convinced of the potential: "You need someone with experience who can make this big." And he made the founders a counteroffer: $500,000 for 12 percent. "That's a nice offer, because I like you."
Janna Ensthaler didn't give up without a fight: The entrepreneur emphasized that she already had experience with the precision fermentation process. But her expertise came at a price: She wanted 15 percent for €500,000.
The founders withdrew to deliberate and finally made a new offer to the two lions: They increased their stake to 10 percent—their maximum limit. They were concerned that existing investors might feel unfairly treated.
"That's a disgrace," Thelen countered, insisting on the twelve percent, "we're not at the bazaar here." After a brief hesitation, the three founders finally entered into the deal with Thelen on his terms.
"We had a small watch party and invited a few friends and family," Malte Zeeck tells Gründerszene. The three founders found the several-hour recording to be intense. "What you saw on TV, the tough and difficult negotiations, was actually true. We were on stage for over two hours," says Philipp von Plato.
The performance was a special experience for the experienced founders. "The concentration was extremely high. Maintaining that level of concentration for over two hours was an enormous challenge and sets the TV pitch apart from other pitches to investors," adds co-founder Fabio Labriola. " And of course, it's also great to be able to present our product to a large audience of millions," says Malte Zeeck.
But: "The deal hasn't been finalized yet. We're still in talks with Frank and his team," says Malte Zeeck. Thelen's team is also in talks with existing investors.
Frank Thelen told Gründerszene: "Anyone who saw the pitch knows: Fabio, Philipp, and Malte can negotiate really hard. That was one of the most intense fights on The Lion's Den, and that's exactly what I love about this show: founders who compete with passion, focus, and a clear stance."
A lot has happened since the recording: The website has been redesigned, the recipe optimized. Precision, both low-fat and full-fat, is now available in stores at over 1,000 EDEKA stores in southern Bavaria. "The three co-founders have put their years of experience into it. This is exactly the kind of energy we need in the German startup scene: uncompromising, bold, and with true entrepreneurial spirit," says Thelen.
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