Robert Herjavec makes $600K deal with Copper Cow Coffee on 'Shark Tank' despite disliking its taste, here's why
Although the brand seemed to be doing well in terms of sales, the profit margins and the huge losses incurred by the business didn't please the Sharks
The finale episode of 'Shark Tank' Season 12 was filled with some juicy drama thanks to the heated exchange between Daymond John and Robert Herjavec. When Copper Cow Coffee founder Debbie Wei Mullin walked into the tank, little did she know about the drama that she would end up unintentionally unleash upon the Sharks.
The young Vietnamese-American entrepreneur made her passionate pitch for her brand Copper Cow Coffee's unique Vietnamese pour-over coffee. She shared her interest in spreading the Vietnamese culture and coffee with people. Debbie then pitched for $600,000 from the Sharks in exchange for a 4% stake in her company. But before the Sharks could make any protests about the low equity offering, Debbie got them all to sample her amazing coffee. While all the Sharks loved the taste of their brew, Robert, unfortunately, didn't seem to like it, as he made a comment about the coffee being way too sweet.
Although Robert clearly didn't enjoy his hot cuppa, he still went ahead and made a deal with Copper Cow Coffee. In case you're wondering why, then we got you covered. After tasting the coffee, the Sharks couldn't stop raving about its amazing taste. While they were still in a great mood, Debbie began sharing her sales numbers, and profit margins with them. Although the brand seemed to be doing well in terms of sales, the profit margins and the huge losses incurred by the business didn't please the Sharks. The Sharks then wondered where she got her money from and if she had raised any investments.
Debbie then explained that she did raise a few million from two rounds of funding, but also made it clear that she suffered losses which ended up eating up most of the investment money. Daymond was upset on hearing that Debbie lost most of the investment money due to the huge losses she incurred while running the business. He then began questioning her purpose and objective of running the company. The other Sharks, especially Robert and Mark Cuban, ran to Debbie's rescue and called out Daymond for being disrespectful towards her "hustle". But Daymond showed no sign of calming down and continued to feel that Debbie was happily blowing through others' money.
Robert stepped in and made a statement that one needs to spend money before making any money. He also assured Debbie that since he was in the tech industry he understood that motto well. He then surprised everyone by making an offer. Robert however wanted a higher stake in the company so he made an offer of $600,000 for an 8% stake in the company.
Debbie wasn't keen on giving up that much equity in her company, so Robert made another counteroffer of $600,000 for a 5.5% stake and 1.5% in advisory chares. Debbie accepted it and closed the deal. She left the tank feeling happy about closing the deal with Robert.
Missed an episode? Been wanting to catch up? Episodes can also be viewed the next day on demand and on Hulu. Not just that, you can also watch old seasons and episodes on Amazon Prime Video and iTunes.