Robert Herjavec may need made his cash from cybersecurity, however the quirky investments he is made on “Shark Tank” have paid off, too.
Of all the businesses and merchandise he is invested in because the begin of the present, Herjavec says ugly sweater firm Tipsy Elves has been his most profitable.
“They were selling $600,000 of ugly Christmas sweaters online. I couldn’t believe it,” he tells CNBC Make It of the corporate’s preliminary pitch on “Shark Tank” in December of 2013. “Everybody went out, I went in.”
Tipsy Elves was began by associates Evan Mendelsohn and Nick Morton in 2011. The former lawyer and dentist created the corporate after realizing they did not have sufficient festive put on for vacation events they attended. Their enterprise sense and fervour for his or her product impressed Herjavec, who invested $100,000 and owns a 10% stake within the firm.
“I didn’t bet on the product, I bet on the guys,” Herjavec says. “They left these secure, cushy jobs to sell inappropriate, ugly Christmas sweaters online. Anyone nuts enough to do that must really believe in the idea.”
Herjavec says the important thing to any worthwhile enterprise is not the energy of the product, however the energy of the entrepreneur.
“Give me a great entrepreneur and he can take a so-so product, and make a great business out of it,” Herjavec says. “A bad entrepreneur can take a great product and run it into the ground.”
Today, Tipsy Elves has remodeled $100 million in lifetime retail gross sales, making it his most financially profitable investment on the present. It’s a formidable haul, however his co-stars have additionally discovered success of their investments.
Fellow “Shark Tank” investor Kevin O’Leary’s investment into meal-kit supply service Plated generated the most important returns of any firm within the present’s historical past.
“Plated, one of my deals, got sold to Albertsons, the grocery chain, for $300 million dollars. That’s the biggest exit in ‘Shark Tank’ history, ” O’Leary informed CNBC Make It in October 2018.
O’Leary referred to as Plated founders Nick Taranto and Josh Hix “a classic ‘Shark Tank’ story — excellent in executional skills and marketing logistics.”
Like Herjavec, Daymond John additionally discovered investing success in attire, albeit promoting socks. John invested in athletic sock firm Bombas. Their mannequin — donating a pair for each pair bought — is a part of what drew John in.
“Number one, the socks are amazing, they have no seams on the front so your toe doesn’t get jammed up,” he says. “Number two is they donate a pair to the homeless shelter, because the homeless, one of their biggest challenges are the care for their feet.”
Disclosure: CNBC owns the unique off-network cable rights to “Shark Tank.”
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