‘Shark Tank’ investors turn down $400K deal after big mistake by eco-friendly startup
The founders of Boona, an eco-friendly shower products startup, made a daring pitch for a $400,000 investment of 10% in the company during one of the episodes of ‘Shark Tank’. The team behind Boona, led by entrepreneur Maria, introduced an array of shower accessories aimed at bringing luxury and sustainability into showers. Their pitch, highlighted by innovative products like the easy-to-use, reusable shower cap and a line of biodegradable shower gels, provided all the ammunition needed to counteract the growing demand for eco-conscious alternatives to everyday routines.
Yet, with this very promising product, the Sharks-Mark Cuban, Lori Greiner, Robert Herjavec, Kevin O'Leary, and Barbara Corcoran-just weren’t convinced. According to the investors, one huge mistake the founders of Boona made was to put too much emphasis on building a brand before the business was standing on its legs. Yes, the product line was impressive, but the company had yet to turn a substantial profit or show a clear plan for scalability.
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Mark Cuban showed skepticism and explained, “They want to be a brand, as opposed to just executing on selling their product. [But] what builds a brand is your execution.” Generally investing in mass market-friendly products, Lori Greiner also gave her no because it needed much better market fitting if it wanted to be out for a very long period. Robert Herjavec chimed in, reinforcing that without a clear business plan and roadmap to profitability, an investment could be sure to fail.
They did mention Boona had a long-term vision, but somehow, the feedback had hit home from the Sharks. Despite the initial skepticism of the Sharks, offers were made to Boona’s founders, Skaloud and Feiereisen, but things fell apart due to indecision. Kevin O'Leary came up with two options: the first was $400,000 for a $40 royalty per unit until $1.2 million was paid back, plus 10% equity in the company, while the second was $400,000 for a 33.3% equity stake, making him their third partner.
The founders countered with a request for $600,000 in exchange for 20% equity, but Mark Cuban said that he would not give up that much equity because their sales did not warrant such a large investment. “But that’s not conducive to an investor because if it’s $400,000 for 10%, you have to generate $4 million in after-tax profits just for me to get my money back ... I’m out,” Mark Cuban told the investors. Meanwhile, the founders spent too much time deliberating, which led O'Leary to retract both offers. Frustrated, he told them, “You’ve got to make a decision, and you can’t do it, that tells me you’re not sharp enough ... You came to the advice tank.” Thus, the opportunity fell apart, and the founders left without a deal.
Boona Tandem Showerhead, as of 2024, has sold over 3,000 units and is projected to make $1.7 million in sales by the end of the year, as per Shark Tank Recap. Over 1,000 5-star reviews from customers have been received, and their products are available on Amazon and their own website.
