'Shark Tank' contestants sell their entire company to Mark Cuban and Lori Greiner for just $100,000

The entrepreneurs had initially asked for $50,000 for a 50% stake in the company.

PUBLISHED 3 HOURS AGO

Screenshot showing Lori Greiner and Mark Cuban on "Shark Tank" (Cover Image Source: YouTube | Shark Tank Global)

Entrepreneurs usually come to "Shark Tank" looking for an investor and partner to turn their ideas into viable brands. That's why it's surprising to see founders selling the entire company to sharks for just $100,000. Since the entrepreneurs had a decent product, Lori Greiner and Mark Cuban decided to take over the small venture.

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Sisters Katherine Saltzberg and Lauri Fraser came into the tank seeking $50,000 for a 50% stake in the company. This was a lot of equity to give up for a small amount of money, and even the sharks were surprised to hear the valuation. The company was called Hugo’s Amazing Tape and was named after the father of the entrepreneurs. He came up with the product 20 years ago, but passed away in the same year when the episode was recorded. The tape did not have any adhesive coating on either side. Instead, it stuck to itself and was deceptively sturdy. One could, however, easily take it off and use it for other purposes.

Screenshot showing the entrepreneurs with the product. (Image credit: YouTube | Shark Tank Global) — Screenshot showing the entrepreneurs with the product. (Image source: YouTube | Shark Tank Global)

The lack of an adhesive material meant that the tape left no residue when it was taken off something. However, there were a lot of problems with the business. The highest sales it had clocked in one year were $68,000, and it had lifetime sales worth $500,000. The entrepreneurs did not give a clear idea of the distribution model, and their patent had also recently expired.

It was risky being an investor in such a company, and as a result, Kevin O’Leary pulled back instead of offering a deal. Robert Herjavec liked the product but did not believe that it was the right business for him to step into. Instead, he hoped Barbara Corcoran to be a part of it. However, she believed that the entrepreneurs should sell the company and said no to making an offer.

Screenshot showing Barbara Corcoran. (Image credit: YouTube | Shark Tank Global) — Screenshot showing Barbara Corcoran. (Image source: YouTube | Shark Tank Global)

Lori Greiner and Mark Cuban were seen talking all this time, and the two offered to buy 100% of the company for $100,000. They would ensure that Hugo’s legacy lived on through them. The product had potential as far as they were concerned. The entrepreneurs seemed emotional at this point at the thought of letting go of their dad’s legacy. However, they happily agreed to a deal as they believed the sharks could help it go bigger than they ever could.

All parties seemed happy about it. O’Leary chastised the product after the sisters left, and Cuban was not going to have it. Therefore, he wrapped the tape around his mouth to shut him up.