A 'Shark Tank' argument had turned so intense, it caused 3 investors to furiously storm off the set
In one of the most dramatic moments in ‘Shark Tank’ history, three Sharks stormed off the stage after a heated argument over a business pitch. This moment occurred during Season 6, when Christopher Gray, a young entrepreneur, pitched his app ‘Scholly’, a platform designed to help students find scholarships. What started as a typical pitch quickly spiraled into something far from ordinary.
Gray walked in looking for a $40,000 investment in exchange for 15% equity in his company. Sitting before him were five Sharks: Lori Greiner, Mark Cuban, Daymond John, Kevin O'Leary, and Robert Herjavec. Greiner and John were supportive of Gray and praised the concept, each offering to invest, seeing it as a worthwhile cause to help students find scholarships. However, not all the Sharks were on board with the decision. Mark Cuban, Kevin O'Leary, and Robert Herjavec believed the pitch was being rushed and raised concerns about the timing of the decision.
They argued that the business hadn’t been thoroughly evaluated, suggesting that investing in ‘Scholly’ might be driven more by charity than smart business sense. "You know, when I had nothing and couldn't rub two pennies together, you know what I really hated?" he asked. "I hated when people wanted to give me a break because they felt bad for me,” Herjavec said during the heated discussion, as per Business Insider.
Cuban, on the other hand, was upset with the way Greiner and John entered the deal so easily without asking any deeper questions about the business’s potential of the application and the details of the algorithms and revenue model it used to generate returns. “You just bent over backward for $40,000. If you're truly trying to help the guy. If you're truly trying to help the guy, what I wanna do is ask him questions. He started talking about an algorithm. What do you know about algorithms?” Cuban said furiously.
Cuban was offended that he wasn’t doing due diligence. He felt shut down on the technical side of the app, but he wanted to know more about it. Herjavec sat quietly listening, then got up from his seat. Standing, visibly angry, he said he was walking off the stage because the pitch was being handled all wrong. Sharks O'Leary and Cuban soon followed suit, storming off the stage a little while later. The tension between Sharks was palpable. While Greiner and John thought they had struck gold, the other Sharks were in complete disagreement.
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Despite the dramatic exit, ‘Scholly’, Gray’s app, went on to achieve phenomenal success. From the early investment by Greiner and John, the company grew quickly, eventually producing millions of dollars in revenue. The company has earned $30 million in revenue and has helped over 5 million users, as per Forbes. One of the most significant achievements for Scholly is its deal with Sallie Mae, a financial services company. This deal has enabled Scholly to make its app free, which previously cost $2.99 per month.