In his stint as a judge on Shark Tank, billionaire Mark Cuban has made several deals that have gone to bring in great revenues for him. From Nuts ‘N Things to Ten Thirty Productions, the venture capitalist surely knows how to strike a great business. But more than this, he is always looking out for a good presentation as well as how much confidence the entrepreneurs have in their businesses.
He did the same when a company named Coffee Meets Bagel, founded by three sisters, came on the show. While all the judges were impressed by what they had to offer, their business model just didn’t make any sense as the company was actually losing money.
One by one, each of them backed out from investing except Mark Cuban, who offered the sister’s a huge sum of money to buy their business.
Mark Cuban Made the Largest Offer on Shark Tank but Was Ultimately Turned Down
The dating industry is a tough one to break into, with several apps already reigning supreme with millions of users. But this tough competition did not deter the idea and business model of three sisters Soo, Dawood and Arum Kang who founded Coffee Meets Bagel in 2012. This is a dating app and uses computer algorithm as well as social media to help Coffee (women) meet their Bagel (men).
It wasn’t until three years later, in 2015, that the Kang sisters decided to present their company on Shark Tank, seeking a $500, 000 investment in exchange for 5% equity. They appeared in the show’s sixth season, where they presented their company’s revenue and profit margins to the “Sharks.”
While the judges appreciated their innovative ideas, the company was actually losing money at that time, which led to all of them backing out – except for Mark Cuban. Initially the investor was frustrated when the sisters refused to disclose how many people were currently on the app. However, he later made an offer that was, quite literally, the largest sum ever offered by a “Shark” to a contestant.
Cuban offered $30 million to buy their company and added “If I offered you $30 million for the company, would you take it?” This was clearly his way of testing their confidence in their company. The Kang sisters proved him right by turning down his proposal and walking off the show empty-handed.
Coffee Meets Bagel Is Now Worth More Than $150 Million
Focusing more on quality rather than quantity, the Kang sisters launched the dating app Coffee Meets Bagel in 2012. The pitched their company in the sixth season of Shark Tank, but failed to capture the judges’ attention, as their company was losing money at the time. Although Mark Cuban offered to buy their company for $30 million, the sisters believed their app had more earning potential.
They walked off the show without any deal but managed to raise fundings and investments from other big names in the industry, including actor Chris Tucker. Over the last couple of years, the app has raised more than $23 million in revenue and is currently worth more than $150 million. Further, it brings in $16 million every year and has grown into a popular app for people looking out for serious relationships.
Their vision was very important for them, which is why they rejected Cuban’s offer in the first place. The idea for the app was rooted in their childhood, when they saw their father working hard to ensure his daughters received the best education possible. The sisters also left their high paying jobs in order to fully commit themselves to the business.
You can watch Shark Tank on Hulu.
