Highlights
- Sometimes on Shark Tank, entrepreneurs present a valuation much higher than the Sharks might expect in an attempt to project their business as promising.
- Mostly, the Sharks become brutal when they encounter such pitches on the show.
- But even after facing rejection, history shows that founders can rebrand themselves and thrive in the long haul.
The cut-throat competition in today’s rapidly increasing business world is hidden from none. Thousands of new businesses launch every day, all fighting for the same customers and funding.
Standing out in a sea of similar companies becomes supremely challenging for budding entrepreneurs, especially where TV platforms like Shark Tank can make or break a dream.
Thanks to Shark Tank, aspiring or even struggling entrepreneurs can present their business ideas to millions of viewers. In a bid to showcase something unique from the others and acquire investments from the witty Sharks, every entrepreneur brings out their best side to the Tank.
To stand out, they arrive pitch-perfect, armed with innovative products, polished presentations, and a story designed to hook both the Sharks and the audience in under 10 minutes and to make the best impression in one go.
But there are times when the entrepreneurs’ confidence crosses into overconfidence, and their company begins to trouble the Sharks, who prefer opting out of the investment.
The entrepreneurs request a hefty, eyebrow-raising valuation, which does not go well with the experienced Sharks, as it quickly raises a question whether the numbers are based on reality or pure ambition.
Why High Valuations Can Sink a Shark Tank Deal
On Shark Tank, confidence is essential, but when that confidence turns into a sky-high valuation, it can quickly kill the interest of the Sharks/ investors.
A valuation is what a founder believes their company is worth. If that number feels unrealistic compared to revenue, profits, or growth potential, the Sharks start questioning the founder’s judgment.
High Shark Tank valuations can signal ambition, but they also raise red flags:
- Risk vs. reward imbalance: Sharks worry they’ll pay too much for too little equity.
- Unproven traction: Without strong sales or market share, a big valuation feels like guesswork.
- Founder inflexibility: Refusing to negotiate can make even great ideas unattractive.
In many cases, a valuation mismatch overshadows the product itself, leading the Sharks to walk away, even from businesses with potential.
Most Outrageous Shark Tank Valuations That Left the Sharks Stunned
From portable coffee brewers to plant-based chicken chains, these sky-high valuations tested the Sharks’ patience and sometimes their poker faces.
Below is a list of the most outrageous Shark Tank valuations that upset the Sharks in the past:
1. Brumachen
Ross Smith and Kweku Larbi came up to the Sharks with Brumachen, a portable coffee brewer, seeking a valuation of a whopping $1 million for a 10% equity stake. Yes, you read it right – $1 million!!
Quick Facts
- Founders: Ross Smith & Kweku Larbi
- Investment Asked: $1 million for 10% equity
- Product: Portable coffee brewer with biodegradable coffee pods
- Sharks Interested: None
- Outcome: No deal
- Reported Sales: Minimal orders by 2023, with customer complaints reported
Before getting into the reactions of the Sharks, here’s a quick precap on the product details.
Brumachen is a portable coffee brewing machine that helps you make coffee anytime and anywhere at just the push of a button.
Larbi, a civil engineer, and Smith, an influencer, collaborated on this business plan so that you can save the excessive money spent on buying coffee otherwise.
Additionally, they were inclined towards preserving the environment with their biodegradable coffee cups.
In terms of economics, in a Kickstarter campaign, they managed to raise over $41K in January 2020. The reason they came up to the Sharks was to combat issues concerning overseas manufacturers.
The Sharks couldn’t believe the offer proposed to them.
Mark Cuban expressed his apprehensions regarding the product’s complicated design and felt it didn’t deserve the requested valuation.
Kevin was simply shocked at the high price offered by the entrepreneur duo. Robert Herjavec said the same thing and even called the offer ridiculous.
Daniel Lubetzky and Lori Greiner followed the same pattern and marked themselves out. Eventually, Smith and Larbi had to walk out without grabbing a deal.
The current state of the company doesn’t seem good either. By 2023, they received only a few orders, which met with multiple complaints. So, it seems the Sharks may have been correct in assessing that the product was not worth the outrageous valuation.
2. Project Pollo
Project Pollo was another shocker for the Sharks due to its massive valuation. Before getting into the figures, here’s a little backdrop about the company.
Quick Facts
- Founder: Lucas Bradbury
- Investment Asked: $2.5 million for 5% equity
- Product: Plant-based chicken restaurant chain
- Sharks Interested: None
- Outcome: No deal
- Reported Sales: Expanded to 17 stores and 2 food trucks post-show
Lucas Bradbury came to the tank with high hopes about his brand, Project Pollo, a thriving chain of vegan chicken restaurants.
The idea emerged during the pandemic when Lucas’ bar owner friend asked him if he was interested in starting a food truck venture at his bar. Doing so would help him reopen his bar.
Lucas agreed; the business was a hit, so he opened his first-ever brick-and-mortar store.
Project Pollo offers plant-based chicken, burgers, mac n cheese, vegan milkshakes, and more. Focusing on quality food and sustainability, he further stressed the many benefits of his venture and offered food samples to the Sharks.
Each of them loved what was given to them and complemented Lucas.
What was the proposed Shark Tank valuation?
Lucas sought an investment of $2.5 million for a 5% equity stake. Each Shark displayed signs of shock and anguish on hearing the hefty amount proposed to them.
Kevin O’Leary said that he was “choking, not on the chicken but on the valuation” and went out of the deal.
Mark Cuban, too, didn’t invest due to the high valuation price. Additionally, he felt that the trend of plant-based meat would soon fade away.
Guest Shark Kevin Hart feels there’s a lot of risk involved and hence opted out of the investment. Barbara and Lori also followed a similar approach.
So, ultimately, Lucas went out without finding any offers from the Sharks.
Despite receiving no deal, Project Pollo added five new stores and reached a total of 17. Additionally, it has two food trucks and is adding franchises across the USA.
3. BeSomebody
BeSomebody is a motivational app created by Kash Shaikh that is committed to connecting people with similar interests and passions.
Through this, you can scout people with skills you wish you had, and pay them to acquire the same by connecting and sharing the final experience. Kash coined a term for people using the app, i.e., “passionaries.”
Quick Facts
- Founders: Kash Shaikh
- Investment Asked: $1 million for 10% equity
- Product: Motivational app connecting people to learn skills from “passionaries”
- Sharks Interested: None
- Outcome: No deal
- Reported Sales: Acquired by Utivity Holdings in 2017 and shut down in 2018; rebranded later with $20M+ revenue
During his presentation, Kash revealed that he first got this idea back in 2009. His hashtag #besomebody reached about 5 million people spread across 180 nations.
Using the app, users in Austin were earning $100 by teaching others about the area they wished to know about.
With a seed funding of $2 million, Kevin felt that BeSomebody would soon emerge as an educational platform allowing people to learn and grow.
Raising a lot of apprehensions regarding exclusivity and liability, the Sharks stepped out of the deal one after the other.
An annoyed Mark Cuban was the first one to mark himself out. Calling Kash “abrasive,” Barbara was out as well.
Citing his inability to understand the business, Robert was the next to reject the offer. Lori, Daymond, and Kevin shared similar thoughts and didn’t offer any investment.
But the story didn’t end for Kash.
His company, which the Sharks rejected, was then bought by Utivity Holdings in 2017 and shut down in 2018. But, he kept going and rebranded the company, which resulted in earnings of over $20 million.
References
1. Brümachen: Here’s What Happened After Shark Tank, Food Republic, JenniferMathews
