‘Shark Tank’ contestant walks away from $600K offer — and it all came down to one non-negotiable detail
Securing a deal on 'Shark Tank' is likely one of the major stepping stones for budding entrepreneurs to scale their brand. Partnering with the Sharks not only brings valuable exposure but also offers expert guidance that can help avoid costly mistakes and boost profits. However, there was one brand owner on the Tank who, despite having three meaty offers from the Sharks, turned them down simply because he refused to give up 10% of his business.
The founder of Rumpl, Wylie Robinson, came to 'Shark Tank' seeking $600,000 for 4% equity in his company, which sells eco-friendly, portable blankets made from plastic waste and designed to feel like sleeping bags, per Market Realist. Robinson highlighted Rumpl's mission-driven model, which donates 1% of annual sales to environmental causes, and shared strong past sales figures of $8.8 million in one year, followed by $6.5 million after losing a corporate contract. At the time of his pitch, Rumpl was projected to make $8 million, though profits were low (just 5–6% pre-tax). Robinson said he came on the show partly to land a sports licensing deal.
However, Mark Cuban and Lori Greiner quickly dropped out, doubting the business model and profitability. Kevin O’Leary was interested in a royalty deal, and Robinson proposed a $600,000 loan with 10% interest over two years, plus 5% of revenue from any sports licensing sales. Daymond John quickly jumped in with a more confident offer of a $600,000 loan at 10% interest, plus 5% of total sales for two years. John believed he could help build the licensing side. On the other hand, guest shark Blake Mycoskie also wanted in. He and Daymond teamed up to offer $600,000 as a loan, 5% royalty for two years, and 4% equity, where the duo combined royalty income with a small ownership stake.
O'Leary then offered Robinson $600,000 in exchange for a $10 royalty per product until he recouped $1.8 million, plus 4% equity. Meanwhile, John and Mycoskie raised their joint offer to include 10% equity. However, Robinson wasn't willing to give up that much ownership and was visibly hesitant. Although he said he'd prefer to work with Mycoskie, John unfortunately stepped away from the deal. Still, Mycoskie stood firm as he said he wouldn't get out of bed for anything less than 10% equity. In the end, Robinson rejected all the offers, unwilling to part with 10% of his business, a decision that surprised the Sharks.
Since appearing on 'Shark Tank,' Robinson has expanded the business operations of Rumpl with a new product line, which includes towels and mats. The brand has also grown its retail presence and is now available at Dick's Sporting Goods, Walmart, Bass Pro, Cabela's, REI, and more, per the Shark Tank Recap. Additionally, Rumpl also secured a licensing deal with the NCAA, offering officially licensed products. Rumpl products can be purchased through the official website, Amazon, and select retail stores.