'Shark Tank': Why did Nirav Tolia take a lower equity than Kevin on 54 Thrones' deal?
When it comes to closing a deal on 'Shark Tank', the Sharks aka investors fight tooth and nail to get the best bang for their buck. From Kevin O'Leary's infamous royalty deals to Mark Cuban's constant demands for higher equity stake, the Sharks go above and beyond to ensure that their investment yields a profitable return to them. So, when guest Shark Nirav Tolia volunteered to take a lower percentage of equity just to ensure that he doesn't lose out on closing a deal, everybody was shocked.
Nirav, the founder and former CEO of Nextdoor, made his big debut on Season 13 of 'Shark Tank' as a guest Shark. The tech mogul wasted no time in not only getting into bidding wars but also doing things that no other Shark has ever done before, such as closing a deal in the hallway after initially saying he didn't want to make a deal. But what really left everybody surprised was his keen interest in closing a deal with 54 Thrones. Christina Tegbe, the founder of 54 Thrones, an African beauty rituals-inspired clean skincare beauty brand, made a stellar pitch for her brand on the show. The young entrepreneur showcased her passion for promoting clean beauty and also how she was interested in trading with the co-operative groups in Africa and not just providing them with aid.
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After impressing Sharks with her impressive shea butter-based skin-care products, Tegbe went on to spit out some impressive numbers about her business. She calmly explained to the Sharks that her company made half a million in sales last year and used only $8000 for marketing. This grabbed all the Sharks' attention. She also explained that her brand was set to close in on a million dollars this year. So, she came into the tank for raising $250,000 for a 10% stake in her company and also the Sharks' guidance to help her with navigating the tricky world of advertising and marketing.
Despite her flawless pitch, unfortunately, Robert Herjavec and Mark Cuban chose to sit out of making a deal with her as they didn't feel that they were the right people for the skincare brand. Kevin too expressed the same concerns but added that he saw a lot of potential in the product and declared that he had no doubt that it would do extremely well in the market. Lori Greiner too had to sit out as she already invested in a makeup brand that is expanding into the skincare line and she felt it would be a conflict of interest if she invested in 54 Thrones.
Nirav agreed with his fellow Sharks that he wasn't the right representative for the product as well, but he also added that his wife Megha Tolia, was a huge advocate of skincare. He shared how his wife always said that skincare was a lifestyle and not a fad. Aside from his wife's passion for skincare, Nirav was also moved by Tegbe's inspiring journey and entrepreneurial drive, so he decided to make an offer. Nirav explained that he was willing to invest half the money and wanted another Shark to team up with him to make the deal.
To nobody's surprise, Kevin jumped in and agreed to foot in the remaining money, but Mr. Wonderful wanted higher equity. So he made a counteroffer seeking a higher equity stake for both Nirav and him in exchange for the $250,000. But Tegbe didn't seem comfortable with giving up such a high equity stake, so he once again made a counteroffer seeking a 20% stake for both Nirav and him. Sensing her hesitation, Nirav stepped in and said he was willing to take lower equity than Kevin as he wanted to make a deal with her. So, finally, the Sharks and Tegbe decided on closing the deal for $250,000 at a 17.5% stake, wherein Kevin got a 10% stake and the remaining 7.5% was owned by Nirav.
Tegbe left the tank feeling giddy with joy at getting two Sharks to help her out with 54 Thrones.
'Shark Tank' Season 13 airs every Friday at 8/7c on ABC. 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.
