When pitching your business, always know the value of your company. At least that’s what the Shark Tankinvestors repeatedly tell contestants who appear on the show.
The investors on Shark Tank repeatedly tell contestants to know the value of their company, and they just put that advice to the test.
On the most recent episode, Kelechi Anyadiegwu pitched Zuvaa, an online global marketplace where designers sell items like clothes and jewelry directly to consumers. Anyadiegwu asked for $460,000 in return for a 10 percent stake in the company. The sharkswere impressed with Anyadiegwu, who grew a $500 investment into more than $2 million in sales in under two years. But they were hesitant to invest $460,000 for such a small percentage of the company.
“I’m really proud of you and proud of what you have done,” Sara Blakely, a guest shark and the founder of Spanx, told Anyadiegwu. “I feel like from what you’ve been able to do so far on your own, I’d count on you to keep going without having to give up a big chunk of equity that I would need.”
Anyadiegwu argued that while she’s grown the company tremendously on her own–to the point where she sees $50,000 a month in revenue–she needs a shark’s help to scale up and build a larger online platform. Her dream is to expand Zuvaa, which had 85 designers at the time of the show’s taping, to include home decor and art.
Mark Cuban, Daymond John, Lori Greiner, and Blakely showered her with accolades but said they didn’t want to take a percentage of her company. John said he feared Zuvaa would become a target for lawsuits if he joined, while Blakely and Greiner encouraged her to keep going on her own.
“You are making a tremendous difference in African women’s lives. I think you’re doing amazing all on your own,” Greiner said. “I don’t want to take a chunk of your company and for that reason, I am out.”
O’Leary was the last to speak. He offered her a $460,000 loan at a 12 percent interest rate in exchange for 10 percent of Zuvaa. Anyadiegwu declined, and the sharks applauded her decision to maintain control of her company.
See the clips below.