‘Shark Tank’ Investment Was Passed On, Now Worth Billions
When fans watch Shark Tank, the idea is to see entrepreneurs make their dreams a reality. There are two ways this can happen. One is that the billionaires on the panel will invest in their company for a percentage. In other cases, it is about the exposure, and even without a deal, some businesses will still explode thanks to the appearance.
One such company that the investors rejected is now worth billions. Here is what you need to know.
Shark Tank Rejected Company Now Worth Billions
Many entrepreneurs on Shark Tank have seen their products rejected by investors. Some of these rejections were because the entrepreneurs might not have been ready for the big time. Other times, the investors didn’t get the allure of the product.
That happened with one invention that ended up becoming a billion-dollar company. This happened in 2013 when all the sharks missed out on the huge success story. The company might not sound familiar because, at the time, it was called DoorBot.
Jamie Siminoff, the company’s founder, appeared on the show and asked for $700,000 for a 10% stake. This offer valued ‘DoorBot’ at $7 million. Only one shark made an offer — Kevin Leary.
Mark Cuban saw a future for the product.
“I like it, I think you’re going to do great. But I’ve got to be able to say that when I jump in, I’m going to be able to add enough value that this company that’s worth $7 million could be worth $80 million, $90 million,” Cuban said. “I just don’t see that progression and for that reason I’m out.”
Mark was right. The company didn’t end up worth $90 million. Kevin Leary offered up $700,000, but only as a loan with a 10% sales commission until the loan was paid off. He also wanted a 7% royalty on all future sales and a 5% equity in the company. Jamie turned the offer down.
What Happened To DoorBot From Shark Tank?
Jamie Siminoff left Shark Tank without a deal. No one saw a future except Cuban, and he even considered DoorBot a smaller company in the future. Jamie ended up changing the company’s name to Ring. It is now the biggest doorbell camera company in the world.
Jamie ended up selling Ring to Amazon for $1 billion. In 2016, Shaquille O’Neal gained an equity stake in the company and became its spokesperson. If Jamie had taken Kevin’s offer, it would have made the Shark Tank investor $100 million in equity for just his $700,000 loan.
Did you know that Ring was one of the rejected Shark Tank products from the reality TV show? Are you surprised that no one saw a future in the product? Let us know your thoughts about this in the comments below.
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