An entrepreneur who previously sold his company to Amazon for $1 billion appeared on the TV show Shark Tank and did not secure a deal.
Fans of Shark Tank have witnessed a wide array of pitches and products, ranging from a man presenting a cat drawing to his potential investors, to underwear designed to filter out flatulence odors.
Among the countless business owners who have sought investment on the show, Jamie Siminoff’s memorable nine-minute pitch in 2013 stands out as a missed opportunity for the Sharks.
The CEO of Doorbot demonstrated his innovative product, although it might not be familiar under that name. The company later rebranded to become the well-known Ring doorbell.
Siminoff appeared on Shark Tank requesting $700,000 in exchange for a 10 percent equity in the company, which at the time valued DoorBot at $7 million.
Ring eventually sold to Amazon for a reported $1 billion, aided by Shaquille O’Neal, who in 2016 acquired an equity stake and became a spokesperson.
Despite the potential, only one Shark made an offer.
Mark Cuban, known for his previous ownership of the Dallas Mavericks and his entertainment ventures, commented: “I like it, I think you’re going to do great. But I’ve got to be able to say that when I jump in, I’m going to be able to add enough value that this company that’s worth $7 million could be worth $80 million, $90 million.
“I just don’t see that progression and for that reason I’m out.”
Interestingly, the company did not settle at $80 million in value.
Instead, it reached a billion, though that’s beside the point.
Kevin O’Leary, also known as ‘Mr Wonderful,’ made an offer of $700,000 with significant conditions.
The sum was structured as a loan, requiring repayment with a 10 percent sales royalty until settled.
Additionally, O’Leary would earn a seven percent royalty on all future sales and a five percent equity in the company.
Fortunately for Siminoff, he declined this offer.
That five percent equity would eventually have been worth $50 million for O’Leary, and if he had initially accepted the equity offer, it would have amounted to $100 million in equity for a mere $700,000 investment.