Credits – ABC, YouTube
Snapshot
- Sometimes, entrepreneurs present a valuation much higher than the Sharks might expect in an attempt to project their business as promising.
- Mostly, the Sharks become brutal when they encounter such pitches on the show.
- But even after facing rejection, you can learn how to rebrand themselves and thrive in the long haul.
The cut-throat competition in today’s rapidly increasing business world is hidden to none. With new companies and startups emerging daily, standing out in a sea of similar companies becomes supremely challenging for budding entrepreneurs.
Thanks to shows like Shark Tank, aspiring or even struggling entrepreneurs can present their business ideas to the world. In a bid to showcase something unique from the others and acquire investments from the witty Sharks, every entrepreneur brings out their best side to the tank. They come well-prepared with their pitch and product to make the best impression in one go.
But there are times when the entrepreneurs’ confidence in themselves and their company begins to trouble the Sharks, who prefer opting out of the investment. The entrepreneurs request a hefty valuation, which does not go well with the experienced Sharks.
Below is a list of the most outrageous Shark Tank valuations that upset the Sharks in the past:
1. Brumachen
Ross Smith and Kweku Larbi came up to the Sharks with Brumachen, a portable coffee brewer seeking valuation of a whopping $1 million for 10% equity stake. Yes, you read it right – $1 million!!
Before getting into the reactions of the Sharks here’s a quick precap on the product details.
Brumachen is a portable coffee brewing machine that helps you make coffee anytime and anywhere at just the push of a button.
Larbi, a civil engineer, and Smith, an influencer, collaborated on this business plan so that you can save the excessive money spent on buying coffee otherwise. Additionally, they were inclined towards preserving the environment with their biodegradable coffee cups.
In terms of economics, in a Kickstarter campaign, they managed to raise over $41K in January 2020. The reason why they came up to the Sharks was to combat issues concerning overseas manufacturers.
The Sharks couldn’t believe the offer proposed to them.
Mark Cuban expressed his apprehensions regarding the product’s complicated design and felt it didn’t deserve the requested valuation. Kevin was simply shocked at the high price offered by the entrepreneur duo. Robert Herjavec said the same thing and even called the offer ridiculous.
Daniel Lubetzky and Lori Greiner followed the same pattern and marked themselves out. Eventually, Smith and Larbi had to walk out without grabbing any deal.
The current state of the company doesn’t seem good either. By 2023, they received only a few orders, which met with multiple complaints. So, it seems the Sharks may have been correct in assessing that the product was not worth the outrageous valuation.
2. Project Pollo
Project Pollo was another shocker for the Sharks due to its massive valuation. Before getting into the figures, here’s a little backdrop about the company.
Lucas Bradbury came to the tank with high hopes about his brand Project Pollo, a thriving chain of vegan chicken restaurants. The idea emerged during the pandemic when Lucas’ bar owner friend asked him if he was interested in starting a food truck venture at his bar. Doing so would help him re-open his bar. Lucas agreed; the business was a hit, so he opened his first ever brick and mortar store.
Project Pollo offers plant-based chicken, burgers, mac n cheese, vegan milkshakes, and more. Focusing on quality food and sustainability, he further stressed on the many benefits of his venture and offered food samples to the Sharks. Each of them loved what was given to them and complemented Lucas.
What was the proposed valuation?
Lucas sought an investment of $2.5 million for a 5% equity stake. Each Shark displayed signs of shock and anguish on hearing the hefty amount proposed to them. Kevin O’Leary said that he was “choking, not on the chicken but on the valuation” and went out of the deal.
Mark Cuban, too, didn’t invest, due to the high valuation price. Additionally, he felt that the trend of plant-based meat would soon fade away.
Guest Shark Kevin Hart feels there’s a lot of risk involved and hence opted out of the investment. Barbara and Lori too followed a similar approach. So, ultimately Lucas went out without finding any offers from the Sharks.
Despite receiving no deal, Project Pollo added 5 new stores and reached a total number of 17. Additionally, it added 2 food trucks and is adding franchises across the USA.
3. BeSomebody
BeSomebody is a motivational app created by Kash Shaikh that is committed to connecting people with similar interests and passions. Through this, you can scout people with skills you wish you had, and pay them to acquire the same by connecting and sharing the final experience. Kash coined a term for people using the app, i.e., “passionaries.”
The proposed valuation was a massive $1 million for a 10% equity stake.
During his presentation, Kash revealed that he first got this idea back in 2009. His hashtag #besomebody reached about 5 million people spread across 180 nations. Using the app, users in Austin were earning $100 by teaching others about the area they wished to know about. With a seed funding of $2 million, Kevin felt that BeSomebody would soon emerge as an educational platform allowing people to learn and grow.
Raising a lot of apprehensions regarding exclusivity and liability, the Sharks stepped out of the deal one after the other. An annoyed Mark Cuban was the first one to mark himself out. Calling Kash “abrasive,” Barbara was out as well. Citing his inability to understand the business, Robert was the next to reject the offer. Lori, Daymond, and Kevin shared similar thoughts and didn’t offer any investment.
But the story didn’t end for Kash.
His company, which the Sharks rejected, was then bought by Utivity Holdings in 2017 and shut down in 2018. But, he kept going and rebranded the company, which resulted in earnings over $20 million revenue.
References
1. Brümachen: Here’s What Happened After Shark Tank, Food Republic, JenniferMathews
Entrepreneur, auteur, raconteur. Rob Merlino is a blogger and writer who enjoys the Shark Tank TV show and Hot Dogs. A father of five who freelances in a variety of publications, Rob has a stable of websites including Shark Tank Blog, Hot Dog Stories, Rob Merlino.com and more.
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