In the history of Shark Tank, the five venture capitalists have invested in a number of products. While some managed to thrive in the market and generate great revenues, others failed to capture the attention. But this was definitely not the case for a brand called The Longhairs, which, despite its rather unique premise, managed to grab the attention of Mark Cuban.
While he is known to have invested in some of the weirdest ideas out there; only a few have been unexpectedly successful. And The Longhairs definitely fall into the latter category.
How did The Longhairs become Mark Cuban’s most unexpected win on Shark Tank?
Mark Cuban has been quite vocal about his investment journey on Shark Tank, even detailing that he’s almost lost $20 million in them via Yahoo. But this definitely doesn’t stop him from investing in some rather bizarre and wild products. While he has always been an admirer of out-of-the-box ideas, only a few of these have truly managed to bring him good revenue.
The same was true for The Longhairs as well, which unexpectedly became one of his most successful deals on the show in 2018. Founded by Lindsay Barto and Chris Healy, the company focused on hair care products designed specifically for men with long hair. While this concept alone raised some eyebrows, it was their pitch that truly stole the show.
In order to understand their product, the founders handed out wigs to the judges. Robert Herjavec, clearly committing to the bit, pulled his wig into a makeshift “man bun.” This prompted Cuban to burst out laughing, and he joked, “He looks like a freakin’ Hamilton reject,” referencing the hit Broadway musical. But under all the humor, the company also promised a huge business opportunity.
They had already seen impressive growth, raking in $25,000 in its first year and projecting $140,000 in its second. Like always, Kevin O’Leary made the first move with an offer of $95,000 for a 10% equity with a $2 royalty per order until he recouped $200,000. However, Mark Cuban saw the potential of the company beyond the numbers and jumped in with an offer of $100,000 for 25% of the company.
After some negotiations with the founders, he dropped the equity to 20%, and they agreed to his offer. Since then, the company has flourished to a great level, proving that sometimes investing in bizarre products can also pay off. In just two years (2020), The Longhairs doubled his original investment (via CNBC), turning his deal into the show’s most surprising success story.
The reason why Bee Free Honee failed to deposit backing from Shark Tank
Sometimes the most interesting and profitable business ideas take shape from mistakes. The same happened with Katie Sanchez as well, who in 1999 tried making apple jelly but instead ended up with a thick, sweet liquid that looked and tasted like honey.
Many years later, when the price of honey reached an all-time high and bee populations declined, she saw an opportunity in this situation. So, she teamed up with Melissa Elms and turned the thick, sweet liquid into Bee Free Honee, a plant-based substitute for honey. Evidently, they went on the Shark Tank stage as well and pitched their product for $100,000 for 10% equity.
The founders also explained that just one pound of traditional honey required over 60,000 bees, thus making their alternative a more ethical option. This, as well as the fact that it had already generated $78,000 in its first years, intrigued the judges. So, Mark Cuban, Barbara Corcoran, and Chris Sacca jointly offered $210,000 for a 30% equity.
After the show, Bee Free Honee expanded its presence in major grocery stores. But due to consumer awareness and market adoption, mainstream consumers didn’t embrace it as they had hoped. Eventually, the company shut down, marking the end of Bee Free Honee.
You can watch all the seasons of Shark Tank on Peacock.
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