'Shark Tank' contestants bring an Olympic gold medalist to win a massive deal with two judges

Celebrity endorsements are often used by brands to woo customers, and entrepreneurs on “Shark Tank” don't shy away from using those to their advantage. When founders on the show wanted to justify a $20 million valuation of their firm, they roped in an Olympic gold medalist for their pitch. Anthony Kjenstad and Lauren Campbell asked for $500,000 for 2.5% of their company, Firefly Recovery, and were accompanied by professional beach volleyball player Kerri Walsh Jennings.

The company’s product was a small band that can be attached to the legs to help the body pump more blood, in order to support recovery after an intense workout session or sporting event. The product was a lot more portable than other products available for the same purpose at the time. The three-time Olympic gold medalist Kerri Walsh Jennings was brought in as a loyal customer of the brand, and she gave her two cents on the product.

“When I’m training and trying to be the best in the world and win gold medals, I would use them and I would notice my legs are lighter. I’m fresher,” she said. The sharks were impressed by the product, but the problem was valuation. A $20 million valuation is massive, and no shark wanted to pay half a million dollars for only a 2.5% stake in a company. Kevin O’Leary flat-out said no as he did not believe it was worth it.

Daymond John was also concerned about the valuation, and his lack of knowledge and experience in the fitness industry at the time also prompted him to back out. Mark Cuban simply believed that the product was too expensive. Paying $48 per month for recovery did not seem like a feasible price. However, despite the high price, the company had made $7.5 million in lifetime sales and $4 million the past year at the time of recording.

While Cuban was adamant about his point about the price, Lori Greiner defended the company and soon made a joint offer alongside guest shark Rashaun Williams. Williams had been in the fitness industry for quite a while and had the necessary experience and expertise to make the company go big. Greiner, too, had her connections in the retail industry that would make the product more accessible to the masses.

However, what the entrepreneurs were offering was too low. Instead, the sharks offered $500,000 for a 5% stake in the company with a $1.5 per unit royalty until the money was paid back and a 50-cent royalty in perpetuity. This was a decent offer, but the entrepreneurs did not want to make a royalty deal and played hardball with the sharks. They said that they would do the deal with no royalty and for a 3.5% stake.

This, again, was too little for two sharks to bite. They did away with the royalty bid but would not budge from the 5% stake they had asked for. The entrepreneurs did not have much of a choice at that point and accepted the terms.