Featured Image Credit: ABC
Topics: Business, Technology, Film and TV
Joe Yates
An entrepreneur who sold his business to Amazon for $1 billion appeared on Shark Tank and walked away empty-handed.
Fans of the show have seen near enough every kind of pitch and product there is, from a guy drawing a picture of a cat to his six potential investors, to underwear designed to prevent farts from reaching the nostrils of people in your surroundings.
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But of all the business owners to have tried their luck on the show, Jamie Siminoff's nine-minute appearance back in 2013 perhaps leaves the most bitter taste in the mouths of some of the Sharks - who missed out on such an opportunity.
The Doorbot CEO showcased his ingenious device - although you probably have never heard of the business... at least under its former name, before it rebranded as Ring doorbell.
Siminoff went on the show to ask for $700,000 for a 10 percent stake in the company, which would’ve valued ‘DoorBot’ at $7 million.
Ring would later go on to be sold to Amazon in a reported $1 billion dollar deal, with the help of Shaquille O’Neal, who would in 2016 hire an equity stake in the company and become a spokesperson.
Of the Sharks, only one even made an offer.
Mark Cuban, the former owner of the Dallas Mavericks and entertainment magnate, said: “I like it, I think you’re going to do great. But I’ve got to be able to say that when I jump in, I’m going to be able to add enough value that this company that’s worth $7 million could be worth $80 million, $90 million.
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“I just don’t see that progression and for that reason I’m out.”
In Cuban's defence, the company didn’t become worth $80 million.
It became worth a billion, but that’s beyond the point.
Kevin O’Leary - AKA ‘Mr Wonderful’ - made an offer of $700,000, but with a major catch.
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The money would not be an investment but a loan, and he would receive 10 percent of sales until the loan was paid off.
Further, he would collect a seven percent royalty on all future sales, in addition to receiving five percent equity in the company.
Thankfully for Siminoff, this offer was turned down.
This five percent equity would’ve later equated to $50 million for O’Leary, and if he’d taken their offer straight up from the start, he would’ve received $100 million in equity for just $700,000.