Canadian-Irish businessman Kevin O’Leary has been one of the mainstays of the revolutionary reality series Shark Tank. In the series, O’Leary is part of a panel of investors who help upcoming entrepreneurs grow and invest in their businesses. Moreover, the businessman has snapped up some of the most lucrative deals in the tank.
Despite being one of the most shrewd businessmen on the panel, O’Leary isn’t immune to bad investments. During an interview, the shark admitted that not all of the deals he had bagged on the series were profitable. One deal went so wrong, that it cost him half a million dollars and became his worst bargain. Here is what O’Leary said about his worst Shark Tank deal.
Kevin O’Leary Revealed How His Worst Shark Tank Deal Cost Him $500,000
Kevin O’Leary co-founded SoftKey Software Products, which laid the foundation for his business empire with a reported net worth of $400 million. He gained further fame for his appearances on the reality series Shark Tank, through which he has invested in multiple business ventures.
During an interview with CNBC, O’Leary opened up about his investments in businesses through the series. The shark admitted that making deals on the series came with the caveat of having zero surety about its success or failure.
He continued to reflect on his experience by talking about the worst deal he made out of the roughly 40 companies he had invested in. O’Leary revealed that he invested $250,000 in one company, with the CEO burning through the cash within four months and asking for another $250,000.
In my stomach, I didn’t feel right about it. My gut said ‘No.’ But because I knew the guy and I liked him, and he was a friend, and yada, yada, yada … I gave him another [$250,000].
O’Leary made the above statement, without disclosing the company’s name but hinted that it was from the telecommunications industry.
However, the shark added the additional funds he put up were expended in less than 60 days, losing him $500,000 on the deal, making it his worst decision. While the half-a-million-dollar barely made a chink in O’Leary’s lofty net worth, it is a cautionary tale about how quickly things can go wrong.
Kevin O’Leary Disclosed His Winning Formula For a Successful Shark Tank Investment
In a separate interview with CNBC, O’Leary also spoke about his approach to investing in businesses on the show. The businessman revealed that in his over ten years of experience investing in Shark Tank, he had grown to realize the power of female entrepreneurs.
The majority of my returns come from the companies run by women.
O’Leary made the above statement, suggesting that investing in companies with female leadership was the winning formula that generated the most amount of returns for him.
The self-proclaimed “Mr. Wonderful” also reaffirmed that he had data to back up his claim that female-led businesses had been more profitable for him. Therefore, it is safe to say that when building a portfolio of companies to potentially invest in, O’Leary keeps an eye out for good leadership, even if some deals might not work out in his favor.
Shark Tank is streaming on Hulu.
