Highlights
- Robert Herjavec has made over fifty deals in his Shark Tank journey.
- He has earned the love of audiences owing to his calm and charming approach.
- Apart from the successful Tipsy Elves, some of his most significant investments include Sand Cloud, Buttercloth, and more.
From starting his tech background as a computer equipment salesman to quitting his job and establishing his own internet security service provider company, Robert Herjavec is an embodiment of entrepreneurship. For this reason, he has been associated with Shark Tank since it aired.
For the past fifteen years, Robert has consistently been a judge, building his unique presence with his vibrant personality and sharp business instincts. Using his business skills, he has made over 50 deals through solo and partnership investments on the show.
One of his investments, Tipsy Elves, has even found a place in the list of rapidly growing Shark Tank businesses. Robert made an investment of $100K for 10% equity in this company selling holiday-themed winter clothes with the most bizarre designs. Its current lifetime sales is $317 million.
But here we will emphasize the following top investments by Robert Herjavec:
1. Sand Cloud
Seeking $200K for 8% equity, entrepreneurs Bruno Aschimanini, Brandon Leibel, and Steven Ford approached the investors with Sand Cloud. The company offered beach towels made from pure Turkish cotton.
Starting their pitch with a funny presentation, the entrepreneurs stated that each of the towels included a pillow insert, which enhanced the comfort value like never before. They had started the business in 2014 via a Kickstarter initiative, which offered them a little over $15K.
Other than towels, they sold beach blankets, apparel, and jewelry. The entrepreneurs also revealed that about 10% of the sales profits were kept aside for the protection and preservation of marine life.
How Did Robert Grab the Deal?
The entrepreneur trio claimed that they made about $2.4 million in sales in 2016, which impressed the judges. As a result, offers came flying in. Mark Cuban made the first offer at $400K for 25% equity.
Next was Daymond John, who offered $300K for 25% equity. The entrepreneurs countered with $200K for 10% equity.
Kevin O’Leary continued the conversation by offering $200K for 15% equity. Robert Herjavec, who also proposed $200K for 15% equity, made the last offer.
To stand out from the others and convince the entrepreneurs, he instantly told the success story of Tipsy Elves. He further stressed his presence in that deal, which helped the brand leap towards glory.
Eventually, Robert seemed to influence the entrepreneurs, and they agreed to his deal of $200K for 15% equity.
As of 2024, Sand Cloud is making an annual revenue worth $7 million.
2. Buttercloth
Gary Falkenberg and Danh Tran tried their luck on the show with their comfy shirts, Buttercloth. They were joined by Ron Artest, aka Metta World Peace, who was an investor and spokesperson for the brand.
Explaining their shirts as sustainable, soft, and comfortable, they sought $250K for a 10% equity stake. While Gary talked most about the products, Danh stole the show with his immigration story.
Originally from Vietnam, Danh always dreamt of making it big in the fashion domain. Seeing his passion, his family migrated to California, and Danh started his first job as a designer for Barbie Dolls.
How Did Robert Earn Big Through This Deal?
Danh’s heartwarming story touched each of the Sharks, but Robert Herjavec was teary-eyed because he could relate to the immigration story on a personal level. Going ahead in the pitch, the entrepreneurs revealed to have earned $500K by the year 2017.
However, they were struggling with customer acquisition costs, which were as high as $40.
Kevin O’Leary wasn’t happy to hear this; he stepped out of the deal for the same reason.
Mark Cuban felt they were not spending enough on marketing, which should have been a priority, so he was out.
Lori Greiner and Guest Shark Charles Barkley felt the fashion industry was intensely competitive; they opted out, citing the many risks involved in a saturated market.
Danh’s only hope left was Robert, who stated that he was willing to make an offer only if they would give away 25% equity for the $250K investment. The entrepreneurs happily accepted the offer.
As of 2024, Buttercloth is earning an annual revenue of $6 million.
3. Drain Strain
Aspiring entrepreneur Naushad Ali approached the panelists seeking $110K for 15% equity in Drain Strain. The product was a drain stopper that helped to avoid clogging in sinks and tubs. He had raised a small amount of $2K through an Indie Go-Go campaign in 2014.
Throwing light on the many benefits of the product, Naushad stated that with Drain Strain, one could say goodbye to the mess of cleaning dirty drains. Plus, it avoided the need to use any harmful chemicals for drain cleaners and eliminated expensive plumbing.
Equipped with TLC technology, the product was already patented. But production was yet to be made.
How Did Robert Succeed In Making The Deal?
The only Sharks interested in making an offer were Kevin O’Leary and Robert Herjavec. Kevin reiterated that this was a licensing deal and offered the entrepreneur $110K for 20% equity, provided that he agreed to the licensing deal.
Additionally, Kevin said that he was the best choice for Naushad as he was always available to make calls.
Robert agreed to the licensing aspect, as Kevin proposed. However, he stated that 20% equity just for a phone call was not fair. Plus, Naushad should look for someone who is ‘nice’ and eager to make mutually helpful financial decisions.
Robert offered $110K for 10% equity, which was contingent on the licensing deal requirements. Naushad accepted his offer.
As of 2023, Drain Strain made $5 million in lifetime sales.
To Conclude
In his long history on Shark Tank, Robert Herjavec has consistently shown his sharp eye for potential businesses through many landmark deals. The success stories of Sand Cloud, Drain Strain, and Buttercloth demonstrate his ability to take risks and the confidence he has in his business instincts.
His decisions are based on business analytics and his personal experiences, which is what makes him one of the most loved Sharks.
References
1. The new list of best-selling ‘Shark Tank’ products of all time, USA Today, Gary Levin
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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