‘Shark Tank’ investors ‘really, really hated’ this CEO's idea—he got a 5-figure offer anyway
Walking away with a "Shark Tank" investment offer is no easy task — especially when the investors "hate" your idea.
Jonathan Dusing, co-founder and CEO of Snow in Seconds, seems to have cracked the code. On Friday's episode of the ABC show, he pitched his company, which aims to "bring the magic of snow indoors," he said. It uses a chemical called sodium polyacrylate, which expands more than 10 times in size when introduced to water, to create "fake snow."
Dusing has run the small business for the last 15 years, while also running a larger sports tech company called Fanmaker, he said. Snow in Seconds is available on Amazon and the company's website — but most of its sales are in bulk for movie sets and large events, Dusing noted.
"In 15 years, out of our one-stall garage, with my children and I packing and shipping every single bag, we have sold $2 million," he said. "Last year, we sold about a quarter million, $241,000, [and profited] $40,000."
Dusing sought $50,000 in exchange for a 10% equity stake in his company, saying the money — and his investor's mentorship — would go toward shoring up his retail distribution. The company's revenue and profit figures were decent, multiple investors said. But Lori Greiner, Kevin O'Leary and Mark Cuban still all withdrew immediately.
"It is so seasonal and so specific," said Greiner. "It's just not broad enough for me."
O'Leary's rejection was more grim: "Sometimes a deal comes in that I really, really hate and this is top of the list for this season." He also disliked Snow in Seconds' seasonal nature, and called its sales figures "irrelevant" due to its small customer base and slow revenue growth over 15 years.
"I hate the fact that it distracts you from a real business," O'Leary said. "This deal sucks."
Barbara Corcoran expressed some concerns too, but decided to make an offer anyway: $50,000 for one-third of the company.
"$40,000 in profits doesn't get anybody excited. A 15-year-old business is always suspicious. Low profits consistently, year after year, and you're busy," she said. "But I think the business has great upside potential."
Daymond John, the last investor remaining, declined to offer a deal after hearing how "healthy" Corcoran's was. Dusing tried to talk Corcoran down to 25%, but she wouldn't budge.
Ultimately, Dusing accepted her offer, much to O'Leary's dismay.
"Jon, the fact that you got a deal is a Christmas miracle," O'Leary said.
Disclosure: CNBC owns the exclusive off-network cable rights to "Shark Tank."
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