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Shark Tank season 14 aired episode 7 on Friday, featuring Legacy Shave founder Mike Gutow winning hearts with his backstory.
Mike’s business Legacy Shave was the last pitch on Shark Tank season 14 episode 7. His presentation included a backstory of how his late father was the reason he and his brother started the business. Shark Mark Cuban gave a standing ovation to Mike’s presentation, while Kevin O’Leary was teary-eyed during the pitch.
However, none of the sharks were willing to offer a deal, except for Lori Greiner. But she went for royalties, which left fans wondering whether she took advantage of Mike with the offer.
However, some fans were happy that at least Lori gave a deal to the Legacy Shave founder.
Shark Tank fans had mixed reactions to Lori’s offer
After all the sharks were out, Lori Greiner decided to offer a deal to Legacy Shave founder Mike Gutow. He came into the tank with an offer of $3,00,000 for a 10% equity.
He and Lori went through a few counteroffers, but Mike decided to stick with Lori’s initial offer, which was “$700K + a royalty of 3% of net sales in perpetuity for 95% of the company.”
As the company had a deeper meaning to Mike and his brother, he decided to hold on to the 5% of the business.
Shark Tank fans had a mixed reaction to Lori’s offer as some felt she took advantage of Mike and "scammed" him. However, some felt that the shark did a good thing by offering Mike a deal.
Take a look at fans’ reactions:
Mike mentioned that Legacy Shave has products for men and women. It also provides travel-sized products. He added that apart from shaving cream, the company sells room fresheners, sunscreen spray, and many more.
The founder went into the tank to seek monetary and marketing help. Mike and his family have invested around $4,00,000 but have not yet made any profits. Their last year’s sales were $96,000.
After his pitch, the panel of sharks, including Barbara Corcoran, Mark Cuban, Kevin O’Leary, Lori Greiner, and Robert Herjavec, were ready to give 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 those reasons, she was out. Mark, too, didn’t offer a deal, citing the same reason.
Kevin mentioned that it was a challenge to bring in money to a shaving business as there were many competitors. He and Kevin also backed out, leaving the ball in Lori’s court.
Lori gave Mike a royalty deal, which he happily took.
What was Legacy Shave’s backstory?
Legacy Shave founder Mike revealed that he and his brother had the business idea 20 years ago. Along with their father, the family decided to start the business, but couldn’t find investors and faced many obstacles along the way.
A few years ago, Mike’s father passed away due to cancer. When he and his brother went to their father’s basement, they saw 3,000 prototypes of their product, and a note from their dad saying that they got only one shot. So, the brother started the business once again.
Although they didn’t profit anything and were out of money, they didn't stop. For monetary help, Mike decided to appear on Shark Tank. His story melted the sharks’ hearts, leaving most of them teary-eyed.
Viewers can watch the latest episode on Hulu on Saturday. Shark Tank season 14 airs new episodes on Fridays at 8 pm ET on ABC.
