“You’re out of your mind": When Shark Tank investor Mark called out Kevin for questioning Kahawa 1893 Coffee founder

Shark Tank Season 14 episode 14 showcased Margaret Nyamumbbo's coffee brand, Kahawa 1893 Coffee. The founder explained that her product originates from Kenya, where she grew up. Additionally, she talked about how her business empowers working women in coffee farms by sharing the overall profit of the company with them.

Margaret was seeking $350,000 for 5% of her business and ended up getting a deal with guest shark Emma Grede of $350,000 for 8% equity. All sharks were impressed by her brand's mission and the products as well. However, shark Kevin O'Leary pointed out that Margaret was asking for too much money when her business wasn't worth $7 million in the present. Cuban was quick to call out his fellow shark, he said:

"Kevin, you're out of your mind right now. You can tell which one of the two has the MBA and went to a good school."

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Shark Tank investors praised Kahawa 1893 Coffee founder Margaret Nyamumbbo

Despite Kevin O'Leary praising Margaret for her business strategy, model, and brand, he questioned the valuation. According to the Shark Tank investor, the Kahawa 1893 Coffee founder had been asking for "too much money" when her business was not yet worth the valuation she asked for. Kevin admitted that the product, as well as the story behind the brand, was impressive, he said:

"I'm very impressed but I want to go back to business. You're putting a value of $7 million on this business, I hope you have a lot of sales. You're very impressive woman, I get it. You have done a heck of a job and coffee you have established... the good news is the product and the story is good."

He continued explaining the struggles the business might face competing with larger, well-renowned brands and their potential to buy Margaret's company. Kevin mentioned that Kahawa 1893 coffee wasn't worth $7 million today, and this was his point of view and outlook towards the future of the company. He elaborated:

"To scale this business for an investor to get a return when I give you $350,000 I want a 10x. The only way that happens is you scale to pass $50 million in sales and a bigger brand with distribution buys you. It's a commodity business alright. You're not worth $7 million today. I'm just looking at it as an investor okay?''

Shark Tank investors Mark Cuban and Robert questioned Kevin's judgment and prediction regarding the business. As per Robert, Margaret was asking for enough money, meanwhile Mark stated her business was worth more. Cuban added:

"I think you're phenomenal, you're a superstar there's thousand reasons to go into this business with you but to do the things that you ave defined to be here you want to go, you're looking at having to raise $50 million possibly or more."

Guest shark Emma Grede offered $350,000 for 8% equity and Robert decided to join her by adding another $350,000 for 8% equity in the business. However, in the end, Margaret ended up agreeing to Emma Grede's solo offer. As of December 2024, the company is worth $8.75 million and has been generating revenue of more than $3 million every year.

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