'Shark Tank': Why did Barbara Corcoran call the Frias sisters 'messy' before investing $250,000 in Luna Magic?
Barbara Corcoran has always said that she invests in people, rather than businesses. If a person manages to impress her, then the shark immediately invests in their business, even if the other sharks might not want to have anything to do with the business. We see Barbara practice what she preaches on the latest episode of 'Shark Tank'. Two Afro-Latina sisters, Shaira and Mabel Frias, entered the tank with a pitch for their beauty and lifestyle brand — Luna Magic.
They explained how there's a gap in the market when it comes to catering to the needs of women of color, especially Latinas. So, the sisters teamed up to create a line of cosmetics that not only catered to the needs of melanin-rich skin but also celebrate their Afro-Latina culture.
Shaira and Mabel managed to shock the sharks when they revealed that they invested $250,000 of their own into the business and that in the short span since starting their business, they not only managed to bring in some revenue but also landed a deal with Walmart. The girls explained that they secured a deal with Walmart to stock their products in over 1000 outlets of the giant retailer, alongside online retailers like Amazon.
Mark Cuban backed out of the deal because he felt that the amount of work that needed to be put in that company was way too much for him. Alex Rodriguez opted to sit out due to a conflict of interest that would arise because his fiance Jennifer Lopez also has her own line of cosmetics. Kevin O'Leary gave an analogy of a person fishing a whale sitting on a small boat and how the whale would eventually drag the fisherman down while revealing why he wasn't going to invest in the company.
Kevin felt that it was exceptionally rare for a business at such an early stage to land such a huge Walmart deal, and was worried about the logistics that would go into fulfilling the Walmart orders. So, he backed out. Finally, it was left to Lori Griner and Barbara. Lori too backed out while agreeing with Kevin's analogy, while Barb surprised everybody by showing interest.
However, before she made her offer, Barb pointed out how the numbers that the entrepreneurs were sharing didn't seem to add up and called it "messy".
Barbara felt that something was missing from what they were sharing, but she seemed to have taken a liking for them. So, she decided to go ahead and invest in the company. Although the ladies came into the tank seeking $200K for a 10% stake in their company, Barbara felt that the amount they were asking wouldn't be sufficient for them. So she offered to give them $250K as a line of credit for a 30% stake in the company.
Since none of the other sharks seemed interested in investing, the sisters decided to accept Barbara's offer. Later, they explained how the shark calling them "messy" stung a bit but they weren't going to take it personally since she offered to help them and was investing in their company. Hopefully, with Barbara's help, the "mess" can be cleaned up, and their business continues to grow and prosper.
'Shark Tank' Season 12 airs every Friday at 8/7c on ABC.
