'Shark Tank' contestants prefer Kevin O'Leary over three judges — Mark Cuban's reaction said it all
Kevin O’Leary may be known for his business acumen, but he isn't exactly popular among entrepreneurs on "Shark Tank" because of his ruthless demeanor. But recently, Mr. Wonderful was preferred by the founders of a venture over three other sharks, much to the surprise of Mark Cuban. O’Leary had changed his offer at the last minute to make things interesting, and he ended up sealing the deal.
The entrepreneur was a woman named Miranda Vaughn, and she sought $200,000 for 10% of her company, The Tomte Cake. She believed that gingerbread houses were a hassle to assemble and that they did not even taste good. That’s where The Tomte Cake comes to the rescue as a 3D gingerbread house baking pan.
That’s not all that comes if one buys a set. It comes with a children’s book, written and illustrated by the entrepreneur. The name Tomte is one that Vaughn had given to the main character in her stories, who is a gnome. The stories are about how Tomte falls into a cake batter and gets made into a gingerbread house. Of course, being a children’s book, Tomte comes out happy and healthy. It was a nice concept that the sharks liked.
Vaughn then revealed that a miniature gnome also came with the product, which could be placed in the batter and baked inside a gingerbread house, just like the story, to make it a great experience for the kids. All of the sharks had gingerbread houses in front of them, and Mark Cuban was the one who found the gnome. According to the entrepreneur, finding the gnome signified good luck throughout the holiday season.
When it comes to revenue, Vaughn has done fairly well for herself. At the time of taping, she said that she had sold out 5,000 units in 25 days, earning a revenue of $200,000. She spent $40,000 on ads to attain that revenue, making the business profitable. However, when she said that she wanted to go into retail, O’Leary wasn’t a fan of the idea, as the company had done so well online.
Mr. Wonderful still offered $200,000 for 25% equity and 25% of any distributions taken. Lori Greiner came in next, and she offered $200,000 for a third of the business. Next up was Barbara Corcoran, who said she did not want to be as greedy as the others and said she’d do the deal for 20%. Daymond John then offered to do the deal for 25%.
With four offers on the table, Vaughn had a good problem. However, she had to make a decision. O’Leary then said he’d do the deal for 15%, to make things interesting. That is the offer that the entrepreneur accepted, much to the surprise of Mark Cuban. “Hello! I’ve never seen a Mr. Wonderful swoop before. Wow!” Cuban exclaimed in surprise.
More on Market Realist
'Shark Tank' contestants get a deal from two judges even though their brand had a confusing name
'Shark Tank' contestant who teaches young girls to make robots gets a life-changing deal
'Shark Tank' contestants value their business at $10 million — but fail to convince a single judge
