"Clown market" - When Kevin O'Leary rejected The Lip Bar on Shark Tank in 2015

In a memorable 2015 episode of ABC's Shark Tank, Kevin O'Leary delivered one of his most controversial rejections. He smirked at The Lip Bar founders Melissa Butler and Rosco Spears, saying:

"This is a new innovation, I can see a massive market share in the clown market,"

The insults didn't stop there. O'Leary went on to dismiss their chances of success, stating they would be "crushed like the colorful cockroaches you are."

The reality show, where entrepreneurs pitch their businesses to a panel of successful investors (the "Sharks"), has seen its share of heated moments. But this particular episode stood out for its harsh treatment of two Black women entrepreneurs who dared to challenge traditional beauty standards.

Butler and Spears were seeking $125,000 for a 20% stake in their vegan, cruelty-free lipstick brand that celebrated bold colors and diversity. Little did the Sharks on Shark Tank know that their rejection would fuel one of the show's most successful comeback stories.

What happened with The Lip Bar’s Shark Tank pitch?

Butler's journey began on Wall Street, where her frustration with the beauty industry reached a breaking point

"I hated the excessive amounts of chemicals. I hated the lack of diversity," she told CNBC.

She started making natural lipsticks in her kitchen, focusing on unconventional colors like purple, yellow, blue, and green.

Her high school friend Spears became an instant believer, sharing:

"My girl was making something with her bare hands that we could actually put on and wear outside,"

Spears later shared with Makeup.com, leading her to become the company's creative director.

The Sharks' reception was ice-cold from the start. When Spears appeared wearing sage lipstick, O'Leary asked,

"Aren't you worried if you walked into a bar with that color lip, somebody would try to resuscitate you?"

Other Sharks on Shark Tank were equally dismissive. Daymond John's response was brief:

"It's lipstick. I'm out."

Shark Tank's Robert Herjavec and Mark Cuban criticized the cocktail-themed concept and logo, while Lori Greiner couldn't see past their online-only model.

Butler refused to let the rejection define her brand.

"They were really cruel to us," she told CNBC.

She added:

"I had to reposition my thoughts in that moment, I had to reposition that anger and really use it to drive this idea... I couldn't allow someone else to be the authority on my dream."

The company evolved rapidly. They abandoned the cocktail theme, expanded beyond their initial 12 lipstick offerings to over 150 products, and focused on inclusion and sustainability. Their foundation line now includes 26 shades, with Butler proudly declaring to BeautyMatter,

"If it doesn't look good on deeper skin tones, we won't launch it."

The Lip Bar’s success beyond Shark Tank

By 2023, The Lip Bar had secured major retail partnerships with Target, Walmart, and Meijer. Their Target presence, achieved through Butler's persistent LinkedIn outreach, grew to six feet of wall space – making them the first Black-owned makeup company to claim such prominence.

The company launched Thread Beauty in 2021, targeting Gen Z with affordable, adaptable products all priced under $8. Their Detroit flagship store opened in 2019, and they even partnered with Michelle Obama for voter participation initiatives.

In a delicious twist of irony, The Lip Bar celebrated their 10th anniversary by putting up a billboard "thanking" Kevin O'Leary. With an annual revenue of $5.5 million, 25 employees, and a $15 million net worth as of 2023, Butler and Spears proved that sometimes the best revenge is massive success.

The company secured an additional $6.7 million in funding in 2022, growing faster than industry averages. As Butler noted, watching major brands now follow their lead with unusual lip shades, "when you're small, you really have to use that to your benefit and be nimble and do things that the larger companies can't do."

---

Shark Tank is streaming on Hulu and Apple TV.