"I just don't like the valuation" — Shark Tank investor Kevin O'Leary shares his opinion on Rocco

Shark Tank season 16 aired a new episode on May 2, 2025. It saw entrepreneurs enter the Tank, hoping to convince at least one Shark to partner. Among them were business owners Alyse and Sam, who sought $600,000 for 3% equity in their company, Rocco, which sells a "super smart" drinks fridge. Investor Kevin O'Leary expressed an interest in their concept, but refused to accept their valuation.

"Look, I like it. I like the story. I like the pitch. I like the whole direct. I just don't like the valuation," he said.

Rocco came in at a $20 million valuation. Kevin remained dissatisfied with it, even after the entrepreneurs disclosed their sales and explained that they were profitable. Consequently, after considering all factors, the Shark Tank panelist offered $600,000 for 10% of the company. When the business owners hesitated to respond, Kevin reiterated that they were not worth more than $6 million.

The other Sharks removed themselves from consideration, expressing the same concern, and while Alyse and Sam deliberated, Kevin retracted his offer. He even turned down their royalty deal.

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Rocco owners convince Shark Tank expert Lori Greiner to change her mind and invest

During their pitch, Alyse and Sam explained that the Rocco drink fridges had a "one-of-a-kind shelving system," and were designed as furniture. It differed from a regular wine fridge because its shelving system could accommodate all sizes of bottles and cans.

"The top doubles as a pour, serve, store station. Aka, it's also a bar cart," Alyse added.

Sam also mentioned that their technology allowed users to see inside the fridge from their phones through an app. When asked by the Shark Tank panelists, Alyse revealed that the fridges sold for $1,495. However, users with an early access pass could buy it for $1,295.

Sam then explained how the app functioned, noting that it only presented visuals of the content without scanning anything, and provided the layout of the drinks shelf by shelf.

"That's an innovation I haven't seen," Kevin remarked.

The Shark Tank expert Robert Herjavec then asked the Rocco owners how much the fridges cost them to make. Sam explained that their landed cost was $575, which increased to $750 to $775 with the $130 to $160 shipping cost. He added that they had sold over 3000 units.

When Robert further questioned them if they had raised any money, Sam said Rocco had raised $1 million two years ago at a $10 million valuation on a post-money SAFE. Hearing that, Kevin raised questions about their $20 million valuation. Sam explained that they did not even have a prototype two years ago.

However, after being in the market for eight months, they had done $4 million in revenue and were profitable. Rocco's projected sales for the year were $12 million.

While Kevin offered $600K for 10% of their company, Robert backed out of consideration, saying he could not see the vision. Mark Cuban also refused to invest, citing a concern with the valuation. Daniel Lubetzky and Lori Greiner followed suit and removed themselves from the discussion.

Alyse and Sam lost Kevin's offer while discussing cash flow with Mark and making the former wait. The entrepreneurs then presented Kevin with a royalty deal "particularly tied" to his channels, but the Shark refused to entertain it.

In the meantime, Lori asked the pair how much royalty they were preparing to offer. When Alyse mentioned $50 a fridge, Lori showed interest. After some back and forth, the Shark Tank investor finalized a deal at $600,000 for a 4% stake and a $50 royalty per unit sold until $900,000 was paid.

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Shark Tank episodes can be streamed on Hulu.