5 Sharks Invested: The Rarest and Most Impressive Deals on Shark Tank
Securing an investment from even one of the savvy investors on ABC‘s hit business reality show Shark Tank is a major feat. With tens of thousands of people applying and only a small percent making it onto the show, the sharks are extremely selective with the companies they choose to invest in. However, on very rare occasions, entrepreneurs are able to convince not just one or two but ALL five sharks to invest in their business together – marking tremendously successful and often historic deals.
According to data from more than 200 episodes spanning 11 seasons of the Emmy-award winning show, less than 1% of the deals featured on Shark Tank have resulted in all 5 sharks – Mark Cuban, Barbara Corcoran, Lori Greiner, Robert Herjavec and Daymond John – deciding to invest together in a company. Securing the unanimous approval and combined capital from all the investors together in one deal is considered hugely impressive and a rare endorsement of a product‘s viability to scale into a national or global brand.
While each investor has their own criteria and specialties, some factors that convince all 5 sharks to invest together include: extraordinarily innovative products that tap into major consumer needs, large market potential into the billions, skilled and knowledgable entrepreneurs with experience and drive as well as businesses leveraging technology, apps and sophisticated design that have competitive differentiation. Additionally, deals where all investors team up usually have some level of involvement from billionaire Mark Cuban – the richest shark on the panel – as the other investors look to partner with him to secure the deal.
Let‘s take a look at 3 of the most popular and successful examples of businesses that secured investments from all 5 Shark Tank investors:
BuggyBeds – The Bed Bug Detector
In season 7, sisters and entrepreneurs Maria Curcio and Veronica Perone pitched BuggyBeds, a first-of-its kind bed bug detection device aimed at addressing the global bed bug epidemic, which has seen infestations increase by 500% in recent years across the U.S and Canada.
The innovative waterproof pouch designed by the sisters detects bed bugs through integrated attractants, with users simply having to place it under their bed sheet while sleeping. A built-in indicator alerts you to the presence of bed bugs. At a retail price of $24.95, the product provided a affordable and effective solution to a billion dollar problem – with bed bugs costing the U.S economy alone around $1.5 billion per year in exterminator costs, legal fees and medical bills.
Seeing the clear innovation, market need for this invention as well as the passionate pitch by the entrepreneurs, all 5 Sharks made offers to invest together – making it one of the first deals in the show at the time to have secured bids from all investors. After intense and protracted negotiations, which saw multiple Sharks increasing their investment offers, the sisters managed to convince the Sharks to agree to a shared deal. They gave up 30% equity in exchange for a collective $1 million dollar investment from Mark Cuban, Lori Greiner, Barbara Corcoran, Daymond John and Robert Herjavec to scale up BuggyBeds.
Post Shark Tank, BuggyBeds saw exponential growth in sales and distribution with Mark Cuban and Lori Greiner‘s connections and mentorship proving invaluable. The product is now available nationally via retailers like Home Depot, Bed Bath and Beyond and Walmart. They have sold over 500,000 units to date, grossing over $10 million in lifetime sales just two years later in 2019. BuggyBeds has expanded its line to new products detecting other household pests showing the massive scalability of this patented early pest detection technology.
The Spooner Board – Compact Surfboard Storage
In season 6, engineer Rick Hopper wowed the sharks when he presented his invention – The Spooner. It was the world‘s first portable and fully maneuverable surfboard rack system, allowing surfers to neatly transport their boards on car rooftops securely. The unique shape-adapting design meant boards could be stacked and fit together when idle while also remaining damage-free.
Seeing how America‘s surf community spanning over 2.8 million people were desperate for better storage solutions and the clever innovation that his invention brought, all the investors again came together to make a joint offer. After Hopper negotiated to only give up 12.5% equity in his company Surfset Fitness, the 5 sharks invested a collective $375,000 to grow the Spooner brand.
True to their word, the high-profile investors leveraged their expertise and networks to help popularize this device globally. The Spooner is now distributed internationally, and the company has expanded into making paddle board racks as well catering to windsurfers. Revenues today for Surfset are over $7 million annually – a testament to Hopper‘s vision and the boost in expansion potential from securing backing from the combined star power and capital from all 5 investors on Shark Tank.
COATZ – Multi-wear Children‘s Coats with Accessories
Natalie Ellis and Heidi Elliott are moms and entrepreneurs who came up with COATZ in 2018, an innovative children‘s wear solution built to "grow with your child". It centered around a basic coat that came with colorful zip-on accessories such as hoods, sleeves, pockets and trims allowing for mix-and-match combinations to change styles. This meant parents could limit having to buy new coats every year as their kid grew while also offering cost savings and personalization.
On their episode in 2019, the presenters really impressed the Sharks with their pitch highlighting the billion dollar children‘s apparel industry and the recurring revenue model of selling accessories separately. Mark Cuban said he would be "an idiot not to invest" also commenting to the other sharks "Can you guys see all the possibilities?". Robert Herjavec called the business "fantastic" while Barbara Corcoran was excited by the entrepreneurs themselves and the scalability of COATZ globally. In another rare instance, all 5 investors offered the $350,000 the founders were seeking for 25% equity in the company.
Since featuring on the show, COATZ has expanded across America and Canada selling popular accessories like plush characters and emojis that can be zipped onto coats. Through Barbara‘s strategic retail connections, COATZ launched successfully in over 300 Nordstrom stores. The company has also broken into the European market and forecasts gross sales revenues of $50 million by 2024 – proving that compelling products combined with the backing of star business talent can result in tremendous growth and fortunes for entrepreneurs daring enough to enter the Shark Tank.
Shark Group Investment Dynamics – Fierce Bidding and Increased Confidence
One of the key reasons why entrepreneurs try desperately to get all 5 sharks interested in investing together is the incredibly valuable sign of confidence this provides towards their business. Hearing multiple sharks evaluate your idea as worth investing in causes intense bidding scenarios between the investors on how much equity they require or how much capital they are willing to contribute. This culminates in richer combined offers for the business owner, not just financially but in the diversity of value investors can provide from operating experience to retail partnerships.
This was clearly on showcase in season 9 during 12-year old San Diego native Mikaila Ulmer‘s pitch of her lemonade brand Me & the Bees Lemonade. All the Sharks bar Barbara were clamoring to invest in Mikaila‘s mission-driven business of using bee-friendly honey and giving back a share of profits to organizations working to save bees from habitat loss. This culminated in an unprecedented on-air battle between Daymond John, a pioneer in apparel and branding wanting to focus Mikaila on product, and Mark Cuban disagreeing saying software should be her priority being in the technology space himself. The heated exchange ended with Mark and Daymond deciding to join forces instead and invest together with the other sharks into the future fortunes of this uniquely socially minded business.
Another aspect that gives entrepreneurs confidence towards making a deal with all or most sharks is realizing the collective power of market reach, resources and skill sets each investor wields. We saw this play out in season 7 when Walter Schroeder and Anastasia Lopez presented their subscription chewing gum company Glee Gum to the panel. While unsure initially, a turning point came when Kevin O‘Leary emphasized how Lori Greiner‘s proficiency in branding and scaling newly launched consumer goods would prove the perfect complement to Mark Cuban‘s distribution strengths. This led to a joint deal with other sharks also joining for $250,000 towards a 20% stake in the natural chewing gum favorite. Post investment, Glee has achieved major retail growth through Lori and Mark‘s contacts clinching deals with Walmart, Safeway and CVS stores where millions of new customers now discover their organic gum line.
Tips for Entrepreneurs Looking to Get All Sharks to Invest
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Innovation Is Key: Every shark values creativity and IP protected products that provide real solutions to customer pain points in a demonstrable way. The Coatz children clothing line was a fine example of an adaptable invention centering on a coat add-on concept we had not seen executed before in the sector.
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Traction Counts: One commonality amongst companies that got all sharks investing was strong evidence of early sales and interest indicating market appetite. BuggyBeds pointed to $173k in Kickstarter pre-sales while COATZ had $140k in the first few months along with interest from a national children‘s chain store. Revenue traction helps de-risk the opportunity.
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Leverage Tech: Inventions in gadgets, apps and consumer technology pique the interest of tech sharks like Mark Cuban given the investability into potentially going viral and securing a loyal following through software often. Products like surveillance cameras, fitness trackers and sleep devices have secured this advantage.
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Fill Clear Market Gaps: As an aspiring business entering the Tank, identify blindspots and needs major consumer groups or industries want resolved. The Bev Buckle filled the need for securing beverages in cars costing the industry billions in spill damages making all investors take note of their pitching around market gaps.
In Conclusion
Getting acceptance from all 5 sharks to invest into your fledgling venture is the pinnacle of success an entrepreneur can achieve on ABC‘s wildly popular Shark Tank show. It marks a resounding endorsement of your idea, the skills you bring to the table as business owners as well as the growth trajectory investors who have the midas touch can clearly recognize. As evidenced by some of the most successful and memorable group deals the show has produced over 11 years, gaining the backing collectively from high-profile billionaires like Mark Cuban, Daymond John Barbara Corcoran or Lori Greiner can be a rocket fuel catalyst towards global brand recognition and multi-million dollar exits for innovative products solving real needs. And for the viewers at home who dream of one day securing their own career-making deal, witnessing the conviction and unified support of the full shark panel investing together makes for inspirational TV viewing reminding dreaming entrepreneurs that with unique ideas and dedicated drive, absolutely anything is possible.