'Shark Tank' judge Kevin O'leary cries after hearing founder's story — then Lori surprises everyone
"Shark Tank" isn't simply about connecting entrepreneurs to investors on TV, but the episodes also allow people to narrate their journeys, which resonate with viewers but, in some cases, leave sharks emotional as well. One such participant was Mike Gatow, one of the two co-founders of Legacy Shave, who made the judges cry with his company's heartwarming backstory. While the pitch was one of the most moving incidents on the show, it also showed that entrepreneurs can't score big without creating a superior product.
Gatow walked into "Shark Tank" seeking a $300,000 investment for 10% of the company. He claimed that the firm's patented technology was ready to disrupt the $50 billion global shaving industry. To demonstrate the product, Gatow smeared one side of his face with shaving cream with his hand. He explained that the action did not exfoliate his skin and that he was pushing the hair down, which would lead to razor bumps and other problems. He stated that while the old-school shave brush was a great innovation in the shaving industry, people "don't have time" for it.
He then pulled out his electronic shaving brush, which solves all issues. He pitched Legacy Shave as a modern shaving brush that fits on any shaving cream can. He showed how the brush automatically dispensed the shaving foam and spread it across the cheek. As he handed out samples, the Sharks praised their presentation. Robert Herjavec complimented the product as well before asking about the cost. Gatow shared that the can and brush sell for $24.95 and cost $5.39 to make, while the brush alone is priced at $19.95.
Lori Greiner then asked the entrepreneur about how they came up with the idea. Gatow went on to share a story about his father, which left the Sharks in tears. The co-founder shared that he and his brother developed the product with their father; however, after assembling just 200 units, the boys lost interest. Seventeen years later, their father passed away from cancer, and when the two brothers were cleaning out his house, they discovered a message from beyond.
Gatow shared that 28 years after they came up with the idea, he discovered that their father had assembled all 3000 units of their product at home while going through chemotherapy to keep himself busy. He also left a note for the brothers, which said, "Don't wait. Life's short. Take the shot." The story struck an emotional chord with the Sharks as Kevin O'Leary was left in tears. He later told the entrepreneur that his story was one of the most moving that he had ever heard on the show.
While the story left the judges emotional, the money-minded Sharks couldn't rely on sentiments alone. Barbara Corcoran said that the deal wasn’t for her, and so she dropped out. Mark Cuban praised the innovation but wasn't impressed with the numbers, thus, he dropped out as well.
O'Leary, who was moved by the presentation, also expressed concerns about the declining sales and the highly competitive nature of the market before dropping out. Herjavec followed suit and dropped out as well, leaving Gatow with just one shark. Greiner chose to focus on the product's strengths and offered the brother a mind-boggling deal of $1 million with a 3% lifetime royalty for 100% of their company.
However, Gatow wanted to retain some equity, which Greiner referred to as "Shmuck insurance." She revised her offer to $700,000 for 95% of the company, and Gatow accepted the deal.
