Kevin O'Leary tells 'Shark Tank' contestant to 'get out' of the show after making a major blunder
It's hard to impress "Shark Tank" investors, who may not necessarily offer a deal even after being impressed by pitches and products, if the numbers don't cut it for them. But when it comes to Kevin O'Leary, entrepreneurs need to make sure they don't face his wrath. Eben Dobson, the founder of "Wisp," learned this the hard way when he got too interested in clinching a deal with Lori Greiner and ignored O'Leary's $500,000 deal. When Dobson kept trying to get Greiner on board, O'Leary's patience ran out, and he threw him out.
Dobson entered the Tank seeking $ 500,000 in exchange for 10% equity in his company. He introduced the Wisp, a revolutionary broom with a handle that extends over four feet to allow efficient sweeping. The broom came with an innovative dust pan as well that could be used hands-free. "Simply apply pressure with your foot, and it creates a perfect seal," Dobson explained.
After his demonstration, Barbara Corcoran and Greiner joined the entrepreneur on stage to try the product. Dobson then shared that while Wisp had sold 100,000 units, generating a total of $3.5 million in sales, the company hadn't turned in a profit. In fact, the company had lost over $600,000 in the past couple of years, due to poor personal financial decisions of the founder. Overall, the company lost $2 million and had accumulated a staggering amount of debt as well.
Mark Cuban was the first Shark to make a move, and he summarized the company's situation. He said the company had $50,000 left in cash, $300,000 worth of unsold inventory, a few pieces of intellectual property, and a crushing debt of $2.1 million. Hearing this, Corcoran became the first shark to drop out, and Cuban followed suit. Guest shark Sara Blakely also declined to invest, but she told the entrepreneur that she would buy the product as a customer. While most of the sharks dropped out, O’Leary acknowledged that the product itself was strong. But, due to the lack of profits and issues with the company, he had to take a substantial chunk of it to get his money back. "You want $500,000, I'll do it, but I want 50%. Not 51, but 50 because that's a lot of money. I don't like losing $500,000, I don't do that ever," he said.
Dobson then dropped a bombshell, saying he had 22 other investors who wouldn't like him to give up so much equity. "Oh my god, this story just keeps getting longer," O'Leary said in response. At this point, Greiner jumped in saying that she couldn't invest in the business as it was a big amount for her, but if Kevin puts up the money, she will help the business sell.
However, O'Leary refused to partner with Greiner as she wasn't giving any money. "We will talk about it later. I can give you a call anytime," he said. After much hesitation, Dobson accepted Kevin's offer, but as the Shark stood up to shake hands, he went back to Greiner, saying, "Don't lose her number." He then engaged with Greiner again, asking if she would want to add anything to the deal. At this point, O'Leary's patience ran out. "I'm out! Get out of here! I'm gone! I'm an investor, okay? You had the $500,000 it was in your hand, and you're talking to her. You're out of here. See you, buddy! Goodbye! Take the broom with you, bye!" he said, lashing out at Dobson.
Thus, in the end, Dobson walked out of the Tank without a deal, regretting yet another decision. "Kevin's offer was amazing, but I don't believe that I had the ability to make that decision that quickly," he said in the end.
