‘Shark Tank’ investor Robert Herjavec agrees to a $250K deal — just to make his wife happy
'Shark Tank' judges take various factors into account, from the product to the numbers, before investing in a business. However, most often the Sharks back a venture over personal reasons. This is exactly what Robert Herjavec did when Joelle Flynn and Sonia Hounsell introduced 'Funkkoff Teethrefresher', a lipstick-sized tooth brush and built-in toothpaste dispenser. Initially, Herjavec wasn't keen on signing a deal with Flynn and Hounsell, but he called them back and offered them a $250,000 deal. Herjavec confessed that this was because his wife wouldn't be happy if he walked away from that deal.
During an episode of 'Shark Tank' Season 14, Flynn and Hounsell were asking for $250,000 in exchange for 5% of their company. As per Market Realist, discussing their teeth refreshers, the duo explained, "FUNKKOFF! We call it funk, and you need it off." They shared that their unique product features, a built-in toothbrush with toothpaste that gets the funk off and refreshens one's breath instantly. The selling point, they argued, was that the product was as tiny as a lipstick, which made it easy to carry.
Subsequently, the Sharks got down to business and asked Flynn and Hounsell about sales. The two entrepreneurs mentioned that they sold their product on their official website, Amazon, as well as in dental offices. At the time of filming, their lifetime sales stood at $80,000. They told the Sharks that they required the investment to boost their inventory and scale up their business. Flynn and Hounsell shared that the cost of one refresher is $7.50, and it retails for $22. Despite that, their business wasn't too profitable, and they were down to $50,000.
The Sharks weren't impressed by the numbers and began dropping out. Herjavec was the first to opt out, citing that the product wasn't big enough for him. Mark Cuban was next and advised Flynn and Hounsell to put their product in common stores and bars, backing out because he didn't find the numbers satisfactory. Guest Shark Emma Grede suggested that the founders sign a deal with a big retailer, but she felt that the company was too small to invest in. Kevin O'Leary also dropped out over their sales record. So did Lori Greiner.
As Flynn and Hounsell turned to leave the ABC business show, their prayers were answered. Herjavec had a change of heart, and he called them back. "Every year, I go home, and my beautiful wife Kim inevitably finds a product and says, 'Why didn't you invest in this?' I give her all these reasons, and she listens to me, and then she says it's a great product, I would buy this. And I'm sitting thinking this is such a great product. I get the problems, you need to sell more, but I'm willing to take a flyer," Herjavec said. He then offered the founders $250,000 for 12% equity, and they ended up accepting the deal. As per Looper, Funkkoff thrives in the market today.