Shark Tank propels many small businesses to immediate success, boosted as much by the publicity as from the investment. Although it’s perhaps expected that after their Shark Tank episode airs entrepreneurs will receive an influx of orders and interest, what’s less clear is what companies have long-term staying power.
Business Insider recently did a round-up of the most successful Shark Tank investments. The list demonstrates that as much money is to be earned in technology, some of the simplest consumer products can hit a home run for the right investor.
For QVC veteran Lori Greiner, home runs were had with two tremendously popular, simple, and effective products: Scrub Daddy and ReadeRest. Greiner invested $200,000 for 20 percent of Scrub Daddy, which at that the time of the pitch had less than $100,000 in sales. Aaron Krause impressed Grenier with a compelling demonstration of his durable sponge, with a distinctive smiley face design.
BI reported the product has made $75 million over the past three years — CNN Money quoted the more conservative figure of $50 million in May, but it’s been a significant return for Greiner and a tremendous success for Krause either way.
Greiner took a much bigger bite out of ReadeRest, gaining a 65 percent stake for an investment of $150,000. The product is a magnetic shirt clip to hold one’s glasses in place. It’s made $13 million over three years, according to BI.
Incidentally, Greiner designed her first successful product, an earring organizer, well before she had any clout in the business world. She did in-store demonstrations to sell her creation. Her husband pretended to be a random shopper and would express interest in the organizer whenever a crowd gathered.
If it’s the holidays and you’re wearing a Christmas sweater, you’re not alone — that’s part of the reason Robert Herjavec’s investment in Tipsy Elves has been one of his most successful Shark Tankventures. The internet security entrepreneur took a $100,000 bet on 10 percent of the company, which is on track to make $12 million this year. That’s up from the $8 million it made last year.
Food is another big draw on Shark Tank . BI included several food companies on its “most successful” list, including Kevin O’Leary’s deal with Wicked Good Cupcakes, Daymond John’s investment in Bubba’s-Q Boneless Ribs, and Barbara Corcoran’s partnership with Cousins Maine Lobster.
Wicked Good Cupcakes, which struck a royalty deal with O’Leary, has annual revenues of $4.8 million. Cousins Maine Lobster brought in $8 million last year. The company received a $55,000 investment from Corcoran in exchange for 15 percent. Bubba’s-Q Boneless Ribs was featured on last season’s Beyond the Tank , and John recently told Business Insider he plans to help the company go past $200 million in total sales. When those sales materialize, that will be a healthy return for the FUBU founder, who invested $300,000 for 30 percent and licensing rights.
Other successes on the list included athletic sock company Bombas and fashion sock company Grace and Lace. The companies’ respective investors — Daymond John and Barbara Corcoran — said they have each been one of their most successful Shark Tank investments.
Companies tapped by Mark Cuban, the wealthiest Shark Tank investor due to his background in technology and his ownership of the Dallas Mavericks, also made the list. Skin care company Simple Sugars and online retailer Red Dress Boutique have made him strong returns.
Shark Tank fans who want to know what happens when the pitch ends will have their chance when Beyond the Tank returns to ABC on January 7. Shark Tank will continue to air Friday nights on the network.
[Feature image: ABC]
