Shark Tank rejected his pitch in 2013. 5 years later, he built a $1 billion company and sat next to them.
The sharp criticism that comes with rejection on "Shark Tank" can either leave entrepreneurs devastated, or even more determined to achieve success. Although some do make it as entrepreneurs despite being denied an investment on "Shark Tank," it's rare for former contestants to make a comeback as sharks on the show. Jamie Siminoff's story serves as an example of how even the most cunning business minds in the country can miss out on recognizing the potential of a lucrative idea. Siminoff, the creator of the 'Ring' doorcam, walked out of the Tank empty-handed in 2013 but about half a decade later he proved everyone wrong by coming back as a judge and investor.
The Ultimate Darkhorse
In 2013, Siminoff walked into the Shark Tank to pitch his idea for a “smart doorbell". His product, "Doorbot" allowed homeowners to see the people at their doorstep from any part of the world using their smartphone. He was seeking a $700,000 investment for a 10% stake implying that his company was worth $7 million. While Siminoff had impressive online sales and a strong mission to make neighborhoods safer the sharks weren't convinced.
The celebrity investors weren’t confident about the product being sellable, and billionaire investor Mark Cuban claimed that the company did not have the potential to grow beyond $40 million. One by one, the Sharks bowed out, thinking the company could be easily driven out of the market by its competitors.
In an interview with Inc., the CEO recalled that it was a tough drive back home, where the garage doubled up as his company’s headquarters. Despite the setback, he slogged forward, gaining clarity on what went wrong. “We were at the point where we had sales, we had a good product, but we had such a complex business,” Siminoff told Inc. in 2018. He admitted that the company couldn't show how it would get to the next stage as they were in an "awkward adolescent phase" at the time.
Siminoff shared that the company got its footing after more than 100 “grueling” hours of marketing which brought in a record $22.6 million from sales in one day. The increased visibility of the product grabbed the attention of several big investors including English business magnate and Virgin Group founder, Richard Branson, and basketball legend Shaquille O'Neal.
In total, Siminoff raised $28 million in the company’s 2015 funding round with Branson reportedly taking a 5% stake in the company, and O'Neal becoming the spokesperson for the firm. In 2017, the company which was renamed to "Ring," raised another $109 million in its Series D funding round and secured a blockbuster deal with Amazon a year later, reportedly worth $1 billion.
Shark Tank Redemption
After proving the sharks wrong, Siminoff got a phone call from a producer of the show who invited him to join the panel for the 2018 season. "That was a quick yes for me," Siminoff told Inc in the interview.
His return marked a historical moment in the show and after becoming a shark, Siminoff said that he understood why he couldn't secure a deal. He explained that information flies past at a rapid pace and it is difficult to gauge a company's potential in such a short time.
