“Don’t like being dumb money:” When Shark Tank investor Mark Cuban questioned The Seventy2 founders

On Shark Tank season 9 episode 2, The Seventy2 founders Christian Scahauf and Mike Escamilla sought $100,000 for 5% of their business. The founders explained that their product was a survival kit for unforeseen circumstances such as natural disasters. It contained all the information and tools to survive when a calamity occurs.

Since launching their products, the founder has made $700,000 in sales within the past six months, $400,000 from a crowdfunding campaign, and $300,000 from their website. Despite being able to reduce their customer acquisition cost from $209 to $144, the founders were still in need of expanding their business for more production capacity.

The sharks, including Lori and Robert, were interested in making an offer. Mark Cuban and Barbara backed out. Cuban said:

"Guys I don't think you need a lot more than cash and I don't like being dumb money so for those reasons I'm out.'

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Shark Tank investor Robert placed an offer to The Seventy2 founders

All Shark Tank investors were impressed by the sales; Robert Herjavec was the first one to place an offer to The Seventy2 founders. He predicted that their business might face challenges when it comes to execution and operation, which can be fixed through more money investment. Herjavec shared that he was ready to invest more money but for ten percent of the company. He said:

"So guys I'm sitting here thinking all the executional challenges, operational challenges but you'll figure it out. I do think you need a little more money. You're looking for a hundred thousand for five percent, here's my offer. I'll give you two hundred thousand for ten percent."

After Robert placed an offer of $200,000 for 10% equity, Lori stated she was interested in securing a deal with The Seventy2 founders as well. Upon hearing this, Herjavec mentioned he wouldn't back out if only the founders agreed to his offer on the spot. Christian Scahauf and Mike Escamilla said they wanted to hear Shark Tank investor Lori Greiner's offer. Herjavec responded by saying that, by that time, he would have already backed out.

Herjavec expressed willingness to work with The Seventy2 founders by saying:

"I don't want to get into bidding with more people I'd love to do business with you, two hundred thousand for ten percent or you can move on to the other sharks. I'm happy to sit out I'm happy to do a deal right now."

In the end, the founders accepted Robert's offer, securing a deal. Mark Cuban concluded by saying:

"I trained Robert well. In nine years that's the first time he's been able to pull that off."

As of 2022, the company has been successful and has generated revenue of $1.5 million per year. Even though Robert was no longer part of the company, the founders expanded their products, including the Zeus life-charger, the Rapid Raft, and The First Aid Plus life raft. Back in 2021, they collaborated with Global Outdoor Emergency Support.

New episodes of Shark Tank are available to stream on ABC.