'Shark Tank' contestants land a $250k deal because Robert Herjavec wanted to make his wife happy
"Shark Tank" judges consider a lot of factors before investing in a business, right from the product it offers to the numbers. But sometimes, sharks have more personal reasons for supporting a venture. This is what Robert Herjavec did after coming across the "FUNKOFF Teethrefresher." He initially dropped out, but later called the founders, Joelle Flynn and Sonia Hounsell, back to the tank to offer a $250,000 deal. He admitted that his wife wouldn't be happy if he let the deal go, so he decided to take a flyer.
Flynn and Hounsell entered the Tank seeking $250,000 for 5% equity in their company, "FUNKOFF!" “We call it funk, and you need it off,” they said, introducing their teeth refreshers. They explained that their tiny, discreet product had a built-in toothbrush with toothpaste that gets the funk off and refreshes the user's breath instantly. Furthermore, as the item is as small as lipstick, it didn't cause any hassle and could fit into a small handbag easily.
When the Sharks asked for the numbers, they shared that they sold the product on their website, Amazon, and in 50 stores and dental offices. At the time of filming, they had raised $675,00 and put $325,000 of their own money into the business. On the other hand, they had only $80,000 in lifetime sales, and they needed the investment to boost inventory and scale up their business. They shared that each refresher costs $7.50 landed and sells for $22, and they were not profitable as they were down $130,000, with only $50,000 in the bank.
Since the numbers weren't good, the sharks started dropping out, and Herjavec was the first to go out, saying that while the product should be in 7/11 stores and airport gift shops, it wasn't big enough yet for him. Mark Cuban also advised the owners to put the product in bars and common stores, but he also went out saying the numbers weren't satisfactory.
Guest Shark Emma Grede encouraged the co-founders to get a deal with a big retailer, but like Herjavec, she too felt the company was too small to invest. O'Leary didn't make an offer as there weren't enough sales. Lori Greiner also dropped out, citing the same issues. As the entrepreneurs turned around to leave the tank, a miracle happened. Herjavec called them back, saying he had changed his mind.
"Every year, I go home, and my beautiful wife Kim inevitably finds a product and says, 'Why didn't you invest in this?' I give her all these reasons, and she listens to me, and then she says it's a great product, I would buy this. And, I'm sitting thinking this is such a great product. I get the problems, you need to sell more, but I'm willing to take a flyer," he said. He then offered the entrepreneurs $250,000 for 12% equity, and they immediately accepted.
According to an update shared by Looper, it is unclear if the deal with Herjavec closed or not. Nevertheless, FUNKOFF! Continues to be in business with their website selling the teeth refreshers.
