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Businesses That Shark Tank Did Not Invest Is Not Necessary Bad
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In September 2013, Jamie Siminoff went on ABC’s “Shark Tank” in hopes of raising $700,000 for his company, DoorBot. He thought it was worth $7 million.
His company made a video doorbell that connected to your smartphone, so you could remotely see and talk to the person at the door through your mobile device.
The idea was largely based on the fact that burglars tend to ring the bell before breaking in. With DoorBot, you could see who is at the door and even pretend you’re at home when you’re not, making it a convenient home-security device.
Siminoff was already making about $1 million in annual sales then, and he had high hopes of getting one of the TV show’s “sharks” in as investors of his company.
But the sharks weren’t impressed. One by one, the sharks dropped out, leaving only Kevin O’Leary, also known as “Mr. Wonderful,” as the last potential investor.
O’Leary’s offer wasn’t too enticing: he would offer a $700,000 loan, then take 10% of all sales until the loan was paid off. After that, O’Leary wanted to collect a 7% royalty on all future sales, forever, plus 5% of the company’s equity.
Siminoff rejected the offer and walked away with nothing.
“It’s that moment when I say you’re dead to me, because you don’t want to take my offer,” O’Leary told him.
It was a public moment of humiliation, but one that didn’t deter the fast-growing Los Angeles company (although it did rebrand to Ring to convey a more serious image).
“We think we got at least $5 million of additional sales through the airing of ‘Shark Tank,’” Siminoff earlier told Business Insider. “It just absolutely throttled our revenue, awareness in the market from every level. Everything just popped after that.”

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