Credit: Fortune
Highlights
- Kevin O’Leary has been a constant panelist on Shark Tank since its debut season.
- In his 14-year tenure on the show, Mr. Wonderful has sealed 40 investment deals.
- From BedJet to Hammer & Nails, here are some successful Shark Tank businesses that Kevin O’Leary rejected.
Shark Tank has become a global sensation not just because of the plot of the entrepreneurial show. It has made this huge owing to the weightage brought about by its experienced judges. For instance, if we ask you your favorite ‘Kevin O’Leary Shark Tank’ moment, we’re sure countless episodes will come rushing to your mind.
The raw and honest personalities of the Sharks have made the show develop an organic bond with the mass audience. If we talk mainly about Kevin O’Leary Shark Tank presence, the 70-year-old business veteran has been the most honest of all the panelists. Whether it be investing a massive $2.5 million in Zipz or openly bashing Pavlok founder, he has showcased his “on the face” attitude to all.
But not all his decisions could be correct. Here we will lay our focus on what went wrong for him on the show.
Have a look at all Shark Tank businesses Kevin O’Leary rejected that proved him wrong:
1. Hammer & Nails
Seeking a $200K for 20% equity in his company, Michael Elliot approached the Sharks with ‘Hammer & Nails.’ Describing how uncomfortable men get while availing of a manicure-pedicure service at girly salons, he pitched his business as the ideal solution.
Michael elaborated that his male-centric nail salon would offer the perfect environment for all those who hesitate to go to the female-focused ones. Hammer & Nails would be equipped with deep leather chairs, free beer, and wide-screen TVs.
Throwing light on the money made, he revealed that the company had acquired 3000 customers in 7 months and generated $150K in sales. His vision was to grow a nationwide (followed by global) string of franchises.
How did Kevin React?
Mr. Wonderful was not impressed with Michael’s pitch. He further exhibited his brutally honest side when he reiterated that Shark Tank is all about numbers. He was only interested to know how much money a business could make.
Clearly stating that he didn’t believe in the vision portrayed by Michael, Kevin marked himself out of the deal.
What is the Current Performance of Hammer & Nails?
Hammer & Nails made it huge even after getting rejected by the Sharks. In 2021, the company’s revenue grew by a significant leap of 270%. Plus, the annual revenue reached up to $25 million.
Michael’s vision of franchising the business also turned out to be confirmed with the establishment of 12 franchises by 2021, 41 franchises by 2022, and 47 franchises by 2023. This proved that Kevin O’Leary Shark Tank prediction for the product was wrong in undermining the company’s vision.
The latest update is that Hammer & Nails was valued at the massive figure of $100 million by July 2024.
2. BedJet
Mark Aramli sought $250K for a 10% investment in BedJet. Equipped with unique heating and cooling elements, this climate control system could adapt to varied temperature requirements in a single bed.
Mark discussed its functionality in detail by emphasizing the dual-zone comforter, which could be controlled by its smartphone app/bedside remote. Placed under the bed, this unique climate control system could offer desired effects in just 3 minutes from the touch of a remote.
Each unit was priced at $499 and was available online.
How did Kevin react?
Kevin expressed his criticism by narrating a short anecdote and told Mark that the business was bound to fail. He felt that it was highly overpriced and people would never choose to buy it.
But his annoyance went a level higher when he called the entrepreneur a “pig.”
This pitch was a clear example that showed the brutal side of Kevin O’Leary when he dislikes a business idea. Stating that the product was “dead” already, he stepped out of the deal.
Did BedJet Really Fail?
No, BedJet was one of the biggest Shark Tank misses as it did great business even after facing the wrath of the Sharks, especially Kevin.
In 2015, it touched the milestone figure of $1 million in sales, which further grew three times in the coming year. Additionally, the company did massive sales on Amazon.
In 2020, BedJet sold its 100,000th unit, thereby negating Kevin O’Leary’s claim that it could never sell even one unit. Going ahead in 2022, it made an annual revenue of 5 million and lifetime sales of $30 million.
3. The Lip Bar
The Lip Bar is a cocktail-inspired lipstick brand that was brought to the judges by Melissa Butler and Roscoe Speres. Presenting their lipsticks as fully organic, they elaborated on the composition, which included shea butter, jojoba oil, and avocado oil.
The broad range of lipsticks included different colors like spicy reds, casual nudes, electric blues, and neon purples. One could pick their custom-colored shade by going to their mobile app.
Seeking 125K for 20% equity, they further highlighted their ‘lip bar mobile,’ a self-distribution system that would eradicate the need to contact other retailers/distributors.
How did Kevin Reject ‘The Lip Bar?’
Lip Bar showed the viewers a classic Kevin O’Leary Shark Tank moment when he mocked the founders by asking Roscoe if she was worried about entering into a bar wearing the funky lip color. He felt anyone could ‘resuscitate’ her. Kevin further claimed that the chances of Lip Bar to grow anytime in the future was “zero.”
He went on to say that there were already many such brands in the market, so that the entrepreneurs would be “crushed like the color of cockroaches” they were. Kevin went out of the deal, saying they should “not waste their time selling lipsticks on Earth.”
Has ‘The Lip Bar’ Survived Over the Years?
The Lip Bar did amazingly well after its Shark Tank appearance in 2015. Within a year, they earned a spot on Target’s website. They also started selling in stores in 2018 and on Amazon right after that. Furthermore, the brand has expanded its horizons by offering plenty of other product ranges, namely mascara and skincare items.
It managed to generate $6.7 million in a seed funding round in 2022. The latest update on The Lip Bar is that it has 26 employees working for the company. Additionally, it has spread its reach to Meijer and Walmart, with an annual revenue of $5.5 million.
Conclusion
Sometimes, even the most experienced business figures may fail to assess the true worth of a company. The ‘Kevin O’Leary Shark Tank’ phenomenon is not only about his business acumen but also about his misses on the show.
Hammer & Nails, The Lip Bar, and BedJet underscore the fact that if you are committed to making your business idea come alive, things are bound to turn in your favor. Rejections should never be considered the end of something. It should rather drive you even more towards your set goals.
