Shark Tank The 14th season aired its seventh episode on Friday, capturing hearts with the backstory of Legacy Shave founder Mike Gutow.
Mike’s business, Legacy Shave, was the last step Shark Tank season 14 episode 7. In his introduction, his late father was the reason he and his brother started the business. Shark Mark Cuban greeted Mike’s introduction with a standing ovation, while Kevin O’Leary was teary-eyed during the pitch.
However, none of the sharks were willing to offer a deal except Lori Greiner. But he went for the royalties, which left fans wondering if he was taking advantage of Mike with the offer.
However, some fans were happy that Lori at least gave the Legacy Shave founder a deal.
Shark Tank Fans had mixed reactions to Lori’s proposal
After all the sharks were out, Lori Greiner decided to pitch a deal to Legacy Shave founder Mike Gutow. He tanked with an offer of $3,00,000 for a 10% stake.
He and Lori went through several counter offers, but Mike decided to stick with Lori’s original offer of “$700k + 3% royalty on net sales for 95% of the company in perpetuity.”
Because the company had a deeper meaning for Mike and his brother, he decided to keep 5% of the business.
Shark Tank fans had a mixed reaction to Lori’s proposal, as some felt she was using Mike and cheating on him. However, some thought the shark did a good thing to offer Mike a deal.
Check out the fan reactions:
Mike mentioned that Legacy Shave has products for men and women. It also offers travel-sized products, and in addition to shaving cream, the company sells room fresheners, sunscreen spray, and more.
The founder entered the tank looking for money and marketing help. Mike and his family have invested about $4,00,000 but have yet to make any profit. Their sales last year were $96,000.
After his pitch, a panel of Sharks including Barbara Corcoran, Mark Cuban, Kevin O’Leary, Lori Greiner and Robert Herjavec were on hand to deliver their verdict.
Barbara pointed out that Mike was not a good communicator and that he should not have told his investors that he was out of money. For these reasons he went out. Mark did not offer a contract for the same reason.
Kevin noted that it was difficult to bring money into the shaving business because there were so many competitors. She and Kevin also backed off, leaving the ball in Lori’s court.
Lori offered Mike a royalty deal, which he gladly accepted.
What was the history of Legacy Shave?
Legacy Shave founder Mike revealed that he and his brother had the idea for the business 20 years ago. The family, which decided to start a business with their father, could not find investors and faced many obstacles.
A few years ago, Mike’s father died of cancer. When he and his brother went to their father’s basement, they found 3,000 prototypes of their product and a note from their father saying they had only bought one shot. So the brother started the business again.
Although they did not make any profit and ran out of money, they did not stop. For monetary help, Mike decided to appear Shark Tank. His story melted the hearts of the sharks, and most of them had tears in their eyes.
Viewers can catch the latest episode on Hulu on Saturday. Shark tank Season 14 airs new episodes on Fridays at 8pm ET on ABC.