‘Shark Tank’ judge mocks beauty pitch as ‘gimmick’ — then surprises everyone with a $100K investment
Sometimes on 'Shark Tank,' investors don't offer a deal to entrepreneurs despite being impressed by their pitches, and on other occasions, they even back up products that they're not particularly fond of. During a season nine episode, Jennifer Paschall and Gita Vasseghi presented their company, No Mo-Stache, which aims to make the process of body hair removal easier. However, the guest judge, Bethenny Frankel, didn't like the hair removal product and felt that it was nothing more than a gimmick. Despite that, she ended up teaming with a fellow judge and investing $100,000 in the company.
In the episode, Paschall and Vasseghi came in seeking $100,000 in exchange for 25% of their company. During their pitch, Vasseghi said, "No Mo-Stache is revolutionizing every woman's beauty routine. Ladies, have you ever been driving to an important business meeting and noticed a glistening, hairy lip in the rearview mirror? Or what about you, busy moms, juggling a million things at once, and when you finally get a chance to look in the mirror?" Soon after, Paschall chimed in, "You need a wax. No Mo-Stache has all of these hairy situations handled. They are mess-free cold wax strips, so there is no risk of burning your skin with hot gooey wax."
When the entrepreneurs were asked about their company's finances, the duo claimed that they had made $400,000 in sales. Following that, Frankel shared her honest thoughts on the product, stating it wasn't particularly unique. As per Market Realist, she said, "Listen, I really do think this is a gimmick. It’s what you buy on the way out of the lingerie store," to which Robert Herjavec replied, “It’s a $400,000 gimmick.”
On the other hand, Kevin O'Leary saw the potential in the product and told the two entrepreneurs, "I'm gonna make you an offer. You're asking for $100,000 for 25%. You're very lucky to be here today. I might say that, too, because I'm willing to give you the $100,000 for ten percent," he said, adding that he wanted a $1 per strip royalty until he received $300,000.
Then, Frankel jumped in and said that she believed that even though the duo were very attached to the name, the company needed to be re-branded as part of an emergency kit for women that includes nipple covers, sticky tapes, and more, in addition to their hair-removal strips. With that, she made an offer of $100,000 for 40% equity. In response, O'Leary reduced his royalty to 50 cents per strip. Shortly afterward, Lori Greiner joined hands with Frankel and offered $100,000 for 35% and a $1 royalty per strip until the money is recovered. Paschall and Vasseghi weren't ready to give up a large portion of their company, so they tried to negotiate and asked the investors if they were willing to give $100,000 for a 25% stake in the company with a $1 royalty until $200,000 was recovered. Ultimately, Frankel and Greiner agreed and closed the deal.
