‘Shark Tank’ founder rejects $350K offer to avoid becoming an employee in his own business: ‘You’re dead...’
‘Shark Tank’ investor Kevin O’Leary doesn’t sugarcoat when it comes to making business deals. He is known for calling a spade a spade and can sometimes be harsh while doing it. On the contrary, he’s a great strategic investor who has backed businesses like BasePaws, the pet DNA testing service, and Greenbox, the innovative pizza box that doubles as a plate. But it takes a lot of conviction from the entrepreneurs to get him on board. Paul Watts, the founder of Graffiti Removal Services, didn’t want to pay the price to have O’Leary as an investor in his company, and he received an earful!
The contestant appeared on ‘Shark Tank’ season one, seeking $350,000 investment in exchange for 15% equity. His intention behind seeking investment was to streamline the business and make it an eco-friendly brand. ‘Shark’ Robert Herjavec made a shocking counteroffer, asking 75% stake in Graffiti Removal Services. The offer would essentially turn the founder into an employee, and O’Leary was intrigued by this proposal and chose to partner with Herjavec. The contestant was clear that he didn’t want to be an employee in his own company and outrightly rejected the offer. But the ‘Sharks’, especially Mr. Wonderful, were offended, to say the least.
O’Leary couldn’t make peace with Watt’s verdict and shot back aggressively. “What do you mean no? There’s no ‘no,’” he asked the contestant. “When you walk out of here, I won’t even think of you again,” he added. “Yes, you will,” the entrepreneur retaliated. “Every time you see graffiti on a sign, you’re gonna say I should have invested in the company,” he added. Meanwhile, O’Leary kept emphasizing: “You are dead to me if you turn around.” The investor explained that there are a million entrepreneurs seeking opportunities who would take his money and get rich. “Are you certain you don’t wanna think about it?” Herjavec asked.
“No, there’s nothing to think about. This deal that you are offering me is a ‘Shark’ deal,” the contestant replied. At this point, O’Leary had had enough and asked the contestant to leave if he couldn’t appreciate the chance. “Opportunity knocked. No one was home. Turn around and get out of here,” the investor agitatedly announced. “Paul, you are a good guy, but you’re going to get run over,” Harjavec said as the contestant walked out. After he left, the ‘Sharks’ discussed that he overvalued his company and lost a great opportunity.
For O’Leary, business deals are about control, power, and alignment with entrepreneurs and their ability to make bold decisions. The contestant refused to bow down, and the rejection clearly hurt his ego. The YouTube comment section was filled with praises for Watts, who kept his dignity intact. “There's no price for this mans dignity.. You gotta hand it to him!” one fan wrote. “Kudos to him for having the strength to continue down his own path,” another YouTube user commented. “So much respect for this guy. He bet on himself. Win or fail, he believes in himself,” a third fan added.