'Shark Tank' judge invests $100,000 in a product — moments after she dismissed it as a 'gimmick'

“Shark Tank” investors are some of the sharpest minds in the business, and they always have their eyes on the potential and profits that a venture offers, beyond their personal opinions. On many occasions, sharks have refused to offer a deal to entrepreneurs even after being impressed by their pitches, and sometimes they may back a product that they aren't fond of. That happened when a couple of entrepreneurs pitched an innovative solution for hair removal. Guest shark Bethenny Frankel believed that the product was nothing more than a gimmick, but ended up teaming up with another shark and investing $100,000 in the company.

Founders Jennifer Paschall and Gita Vasseghi sought $100,000 for a 25% stake in their company, No Mo-Stache, which sells products to facilitate the removal of hair from the upper lip. The entrepreneurs claimed that, unlike traditional waxing, their product, which is essentially a waxing strip, did not require a high temperature.

The strips also came in small containers, which were portable and could be used anywhere. While waxing strips aren’t anything new, the innovation was the portability and discretion. The entrepreneurs claimed to have made $400,000 from sales, but the guest shark did not believe that their product was special or unique.

“I really do think this is a gimmick. It’s what you buy on the way out of the lingerie store,” she said. Robert Herjavec challenged her notion and said, “It’s a $400,000 gimmick.” The product at one point was in all 200 Sephora stores across the country, but the number had come down to 60.

While this was a concern, some of the sharks still saw value in the product. Kevin O’Leary, who had been ranting about how there was nothing proprietary about the product, perhaps saw the numbers and changed his mind. He offered $100,000 for a 10% stake and a $1 per strip royalty until he received $300,000.

However, Frankel also believed the product needed rebranding as a part of an emergency kit for women. She asked for 40% of the business for $100,000. Lori Greiner liked the idea and wanted to be part of the deal with Frankel.

Mr. Wonderful then made his offer better and reduced his royalty to 50 cents per strip. Frankel and Greiner then offered $100,000 for 35% and a $1 royalty per strip until the money is recovered. The entrepreneurs were not keen on giving up that much of their company. Therefore, they offered 25% of the company for $100,000 along with a $1 royalty until $200,000 was paid. That was an agreeable deal for all parties, and they ended up shaking on it.

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