Smashmallow

Shahir Amin always had good taste in food. In 2016 his firm, Sonoma Brands, founded Smashmallow, a brand of snackable marshmallows, and its “cinnamon churro” flavor was an instant hit. With over $10 million in venture funding and distribution lined up at retailers like Target and Whole Foods, Smashmallow hired a Dutch equipment maker to build custom machines for mass production. The machines that arrived couldn’t coat or stuff the marshmallows to spec. They also gave off huge amounts of noxious dust and wasted 40% of Smashmallow’s raw materials. Unable to meet its production commitments, Smashmallow lost its distribution contracts and eventually shut down.

Smashmallow filed litigation to hold the counterparty accountable. Shahir found crackerjack lawyers to take the case on a hybrid-contingency basis, but the company still needed a six-figure investment to cover case expenses. Legalist stepped in with litigation financing, which let Smashmallow and its lawyers fight all the way to trial, where Smashmallow won $21 million. Today, Shahir continues to invest in and lead innovative food and beverage companies.