Billionaire Mark Cuban Loved This ¡®Shark Tank¡¯ Company Until Its CEO Made A $40 Million Mistake

Imagine having a powerful idea for your startup, impressing the Shark Tank judges, but still ending up without an offer of investment from the sharks. And that too, due to a $40 million mistake.

This is exactly what happened with a contestant recently.

What Happened At Shark Tank?

sharktankrecap

A powerful mission alone did not turn out to be enough for billionaire Mark Cuban to invest seven figures in a Shark Tank (US) contestant's company. Contestant Micah Truman learned that lesson firsthand on this month's earlier episode of the business reality show, when Cuban, alongside the rest of the show¡¯s judges, declined to cut him a deal.

CEO Truman¡¯s 4-year-old Washington-based startup Return Home, a green burial company, works to turn human remains into compost within 60 to 90 days. It bills itself as an environmentally-friendly and cost-efficient alternative to cremation and traditional burials.

How A $40 Million Mistake Blew The Deal?

getty

¡°Micah, you blew it,¡± Cuban told the startup's CEO Truman. ¡°I¡¯m out.¡± In other words, ¡°brand grab¡± wasn¡¯t enough of an argument for long-term financial viability to snare a ¡°Shark Tank¡± investment offer ¡ª at least, not at such at an inflated valuation. Guest judge Daniel Lubetzky, for example, said he could only justify $40 million ¡°if I closed my eyes and kept them shut with Krazy Glue.¡±Truman, alongside Return Home services manager Katey Houston, asked the Sharks for $2 million in exchange for 5% of their business ¡ª a deal that would value the company at $40 million, as per CNBC.

The request grew bolder when Truman said that Return Home is ¡°a money-losing company¡± that brought in $350,000 in 2022 revenue. At the time of its most recent fundraise, ¡°about a year¡± prior, Return Home was only valued at $20.6 million, Truman said.

Cuban and Kevin O¡¯Leary wondered how the company¡¯s valuation could nearly double in such a short time frame, opening the floor for Truman and Houston to make their case.

¡°Micah, this is your moment,¡± Cuban yelled. ¡°Go, go, go!¡± ¡°Funeral homes are the worst marketers in the world. This is not about land grab, it¡¯s about brand grab,¡± Truman responded. ¡°Tell me, guys, how many funeral homes do you know that are amazing? That are cross-country?¡±

In a way, Truman was right: Few people have a go-to funeral home, and not many can speak knowledgeably about the ¡°human composting¡± industry.

Also Read: "I Would Be Just As Happy Without 99% Of My Wealth" Says Mark Cuban

Why The Contestant Still Stands By What He Did

allsharktankproducts

On the show, Truman expressed disappointment that the Sharks didn¡¯t invest. Today, he stands by the $40 million valuation for two reasons.

¡°First, our method isn¡¯t just another drop in the death care industry ocean ¡ª it¡¯s more like a tidal wave. We are the first major disposition method the funeral has seen since the civil war,¡± Truman says, as per the report

Second, he adds, ¡°By setting our price where we did, we are asking every everyone: What¡¯s the true worth of supporting a loved one in their toughest hour? Our stint on ¡®Shark Tank¡¯ was all about sparking this vital conversation. In today¡¯s world, a higher price often turns heads and raises eyebrows.¡±

For the latest and more interesting financial news, keep reading Indiatimes Worth. Click here.