'Shark Tank' judges couldn't believe Barbara Corcoran made a deal with an inexperienced founder
Barbara Corcoran is one of the sharpest businesswomen and investors in America. However, sometimes, the decisions she makes can come as quite a shock to her colleagues. That’s what happened on an earlier episode of “Shark Tank” in which she offered a good amount of money to an entrepreneur who admitted to knowing nothing about the industry he wanted to be successful. The other sharks were left stunned, and they did not hide their feelings.
The entrepreneur was a man named Dan Mackey, and he sought $50,000 for a 10% stake in his company, Chill Soda. Mackey claimed that it was a healthy alternative to sodas. He revealed that his product had 85 calories, which was indeed a lot less than any other such product in the market at the time. The only problem was his lack of knowledge about the beverage industry.
Kevin O’Leary, at one point, asked what the most important thing to be successful in the beverage industry was, and Mackey could give the correct answer, which was shelf space. He then confused Daymond John by saying that he had sold 250 cans only, later clarifying that it was 250,000. He then revealed that he was working with a beverage management company, which was basically a consultancy firm, that helped him to get a distributor on board.
When asked why he needed a consultant, Mackey made the grave error of revealing that he knew nothing about the beverage industry. At this point, the sharks looked stunned. “That’s not something you should have just said to me,” John said. “Well, I’m a marketing guy. I’m not in the beverage industry,” the entrepreneur added, making his situation even worse than it already was. At this point, the sharks had heard enough, and everyone was out.
Well, almost everyone. Barbara Corcoran was mostly silent throughout the whole pitch, but had a smile on her face. The other sharks were worried about the high risk investing in this business would bring, but she didn’t see that at all. “I love the product. I don’t know what to be afraid of, so maybe I’m as naive as he,” she said. “I guess you’ll find out the hard way,” Mr. Wonderful retorted.
Corcoran appreciated the way Mackey worked his way all by himself to where he was and mentioned that she liked the fact that he wasn’t slick, but just a straight-shooting, honest businessman. “Barbara, please don’t give this guy any money! No!” O’Leary exclaimed, trying to dissuade his colleague. He wasn’t the only one trying to do so. “Are you crazy?” John asked, still seemingly in shock.
“I’ll give you $20,000 for therapy,” Mr Wonderful said, which lightened the mood. Even Herjavec asked her not to make the offer. However, Corocoran had already made up her mind. She offered Mackey the $50,000 but asked for 20% of the business. This was an acceptable deal, and the entrepreneur happily agreed to do it.
