For the first time in his time on Shark Tank, the popular American business reality television series, ‘shark’ Mark Cuban has invested in a makeup company.
In an episode broadcast last week, Marck Cunab was seen investing in the San Francisco-based makeup company Youth Foria. Mark Cuban, the American billionaire is known for investing in companies that he sees fit for himself.
Being the owner of the popular NBA team the Dallas Mavericks, most of Cuban’s decisions are also made considering his team. He is very keen and adamant about investing in companies that can benefit him or his team. But this time Mark Cuban has shocked everyone.
The most recent move from Cuban placed him in the makeup industry, which is very unlike him. Mark Cuban made the exception in investing on behalf of his two daughters and his wife.
After securing the deal, Mark mentioned that his daughters and wife would understand and love his decision and also the products pitched by Fiona Co Chan, who is the CEO of the San Francisco-based makeup company Youthforia.
Youthforia is a makeup brand, an idea conceived and developed by Fiona Co Chan, who is the CEO of the company. Youthforia was launched in April 2021.
Even though it’s only two years since their deal, Fiona stated that her company has made sales of over 2 million within a year after its launch.
The main focus of the company is makeup that you can sleep in. The idea seemed to impress the sharks and she continued to do so until she completed not just her pitching but the deal itself.
Youthforia concentrates on making makeup products that are not harmful to the face or even our environment. Fiona stated by stressing this point.
According to her, the products sold by Youthforia do not contain substances like fossil fuels or microplastics that are harmful to both our skin and the environment. The substances used in the production of makeup items by Youthforia are completely natural and do not contain any artificial substances.
The highlight of her pitch was the color-changing oil blush that could adjust to the skin tone of a person and give them the most suitable and natural-looking blush.
The company became popular through their Tik Tok videos that featured the oil blush. TikTok also accounts for the majority of sales by Youthforia. Currently, the company has around 123,000 followers on the platform.
Fiona started her pitch with a demand of $400,000 for 5% equity in her company Youthforia. Fiona did an impressive job in presenting her product to the sharks and O’Leary mentioned that the bet was on the jockey in this deal as she was very impressive.
Robert Herjavec was the first shark to move out from the deal. He stated that he did not understand the benefits of the products and the differentiation that it has from their products.
Herjavec stated that the product was not for him and that he was out. The next shart who claimed out from the deal was Lori Greiner, saying that she was not willing to work with oil-based makeup products.
Kevin O’Leary was the shark who made an offer to Fiona first. He offered her $100,000 along with a $300,000 loan for 20% of her company Youthforia.
Fiona did not seem to be sold on the offer made by Kevin, She then mentioned the three new shades that her company planned to launch shortly.
The new addition of shades confused the remaining shares, Cuban and Barbara Corcoran, who also stated that they were out of the deal.
As Kevin was the only choice left for Fiona, she tried to negotiate with him on his offer. She brought in the offer of a 50-cent royalty for Kevin on every unit that her company sold until he made $500,000, along with the initial demand of $400,000 and a 5% of Youthforia.
The negotiations went on and Kevin brought in his counteroffer by stating that he was loving it. He made his counteroffer with 10% equity in her company and a $1 royalty until he earned back $800,000, double his initial investment.
That was when Mark Cuban made his re-entry into the deal. He was very much impressed by Fiona’s pitch which prompted him to make an offer. Almost all the sharks, especially Kevin, were surprised by sudden move of Mark.
As he had no history of investing in a makeup company all throughout his years on the show, everybody, including the sharks and even the viewers were excited about his offer.
Mark Cuban offered Fiona $400,000 for 10% of Youthforia and that too, without any royalty deals.
While the decision made Kevin and other sharks equally surprised, Mark Cuban stated that his daughters and wife would understand the product. He said he was doing this for them. Make even offered demos for the product.
Kevin O’Leary countered Mark Cuban’s offer by saying that he would give $400,000 for 7.5% but that he also wanted a 75-cent royalty deal until he made $1 million.
Mark Cuban was quick to counter it by offering $400,000 for 8% without any royalty deals and he stated that the deal was ‘just to prove a point.’ It was evident that Kevin was not happy with the offer, as he almost knew the outcome.
Fiona did not think much about the last offer made by Cuban and was quick to seal the deal. It was the best that she could get for their firm and Fiona was ready to take it. She left the show by saying that she felt proud to be working with Mark Cuban.
The remaining sharks Herjavec and Corcoran complimented her again on her talents to face an argument and to negotiate accordingly, as she left. Herjavec even teased O’Leary by saying that she should get up and leave as Fiona was taking his seat.