On a recent episode of “Shark Tank,” three sisters shocked the world by declining a $30 million offer from Mark Cuban to buy their under three-year-old online dating company Coffee Meets Bagel. They did it without even flinching.
The company’s founders, Arum, Dawoon and Soo Kang came into the tank asking $500,000 for 5% of their company, valuing it at $10 million.
Here’s how their company works: After signing up via Facebook, their service begins privately matching you up with mutual friends. At 12 p.m. every day, you get an email with a potential match. You then have 24 hours to choose whether to “like” or “pass” on the person. If you and the other party likes each other, you can talk via text through private messages for up to seven days before you’ll need to exchange personal information to proceed.
“Single women are tired of signing up for dating websites only to get hit on by creepy strangers bombarding them with disgusting messages.”
The core service is free, but the company makes money by offering additional services users can unlock using “coffee beans,” their virtual currency.
In the episode, the girls declined to give out their exact user-based numbers, which agitated Cuban and caused him to immediately drop out of bidding. He surprised everyone, however, by reentering at the end and offering $30 million to buy their company. Perhaps more surprisingly, the girls turned it down.
Their reasoning for refusing the offer, according to Dawoon:
“We see this business growing as a big as Match.com. They’re becoming a billion-dollar-revenue company, and we think this model and the product has potential to be as big as Match.”
By the end of the episode, all the Sharks went out and the girls left empty-handed.
We recently had the pleasure of interviewing Dawoon Kang, one of the co-founders of Coffee Meets Bagel. Here we discuss what it’s like doing business with family members, the difference between pitching the Sharks and other VCs, and, of course, what it’s like turning down $30 million.
How much influence did your parents have on your entrepreneurial ventures?
A ton! My dad is an entrepreneur himself. He actually started his own business with his brother. So it’s very similar to the steps they’re following. Growing up, we watched him putting so much passion and effort into his business, which is in a commodity space back in Korea. It was very inspiring to see that growing up. So we knew from very early on that we wanted to follow his footsteps and create something out of nothing. When that time came, we decided to take the punch in the entrepreneurial space, and he was always very, very supportive. Typically for parents, when they see their kids quitting their high-paying jobs and trying to do something risky, it’s not something that every parent would approve or support. But my dad was very supportive of our decision even though he knew it was risky. He told us, “This is something you should try and you should just go for it.” Having his support on our decision meant a lot to us.
As sisters, do you guys ever fight or have disagreements over company matters?
Oh yeah, we fight all the time! [laughs] In fact, one of the concerns my dad raised when we told him that we were going to start a business together was that we fight too much. I think siblings fight a lot, but particularly the three of us have always argued about a lot of different things — relatively a little bit more than other siblings, so that was one of his concerns. We are kind of worried about that also, but I think we have put in a lot of effort to professionalize our relationship, especially at work when it involves our employees and work-related matters. I went to Stanford Business School and I had a leadership coach who was very amazing, and I actually brought her in for a few sessions to coach us on how we give feedback to each other and how we resolve conflicts in a constructive manner. So to work on some of the skills, I think we’ve gotten a lot better at it.
You and your sisters are each taking $100,000 salaries. While this seems like a fairly large number to take from your startup at first glance, you mentioned during the show that it’s still a large paycut. Can you go into more detail on what you guys did before launching Coffee Meets Bagel?
My twin sister Aroom worked in a variety of capacities but was always in the consumer field. She started her career at Avon working in marketing analytics and worked on Avon.com. She also worked at Amazon as a product manager in the children’s category. So she has a lot of experience in a tech e-commerce space.
For me, I jumped around here and there. I also worked at Avon because I love the consumer space. I kinda changed careers after business school and worked at JP Morgan in their investing group. So I dabbled in finance for a couple of years before starting Coffee Meets Bagel. And my older sister been in graphic design for over 10 years and she’s always worked with luxury brands.”
It seems like you guys complement each other really well in terms of skills and talent. You all come together like a perfect recipe.
Yeah, you know it kinda reminds me of Steve Jobs’ graduation speech at Stanford back in 2004. He talks about how you should work on what you are passionate about and years later you will be able to connect dots even though you may not actually be able to see it right away where thing are going. I think that’s what happened to all of us. We kinda went off doing our own thing, doing whatever that was interesting to us, and then it kind of came together five, ten years later.
During your episode, Mark was really turned off because you guys didn’t want to reveal your actual user-base. Can you elaborate more on your reasons why?
In hindsight, I think we should’ve shared the number. Quite frankly, for investors, it is a critical number that you need to know in order to figure out if this is a good deal or not. So If I were to go back, I would just share it. “Shark Tank” is a little bit special because of the public nature of the pitch, but just in general, if you are working in a competitive space, it’s my belief that unless you have to, why bother sharing when you don’t know if it’s gonna do any good? I don’t know if it’s applicable to everyone but that’s just how I think.
“Shark Tank” is not the first time you’ve pitched investors. Aside from the obvious fact that you’re being filmed, are their any major differences you saw between pitching the sharks and the other investors you’ve pitched so far?
What I really appreciate about all the sharks is that they are very quick. Typically when you actually come in front of a VC, a lot of times these VCs are finance-oriented people — a professional financier, right? You rarely actually run into VCs or investors who were entrepreneurs before. What I really appreciate about the Sharks is that all of them are very, very successful entrepreneurs themselves and I think that is a huge plus because they understand where we are coming from and what we are trying to do. I think because of that experience, that’s why they’re very, very sharp. I was very amazed that the level of understanding and command in the business that they were able to garner in that short period of time. With the exception of Mark Cuban, I don’t think any other Sharks are tech investors but they were able to grasp whatever we were trying to do very quickly, and I think it comes from the fact that they get exposed to tons of companies through “Shark Tank” and other means and also they are entrepreneurs themselves.
When Mark offered you $30 million, was there any point at which you actually considered it?
No, not at all. There is no regret there because we know the true value of Coffee Meets Bagel. It’s a lot bigger than $30 million, and to sell now, I think that would be selling ourselves too short. I would have loved taken him as an investor, but not to sell.
As a female who has worked in industries dominated by white males, have you seen any extra challenges?
A lot of things are very, very subtle. For example, working at JP Morgan, they were pushing very towards diversity, gender but the fact of the matter is it’s still male-dominated industry. Especially my group, which was investing, it was very difficult to find a woman as a role model that I could talk to. When we walk in a room, mostly full of white men, you are constantly reminded of your own race and own gender. I think what’s great about starting my own company is that I never actually had to think about that anymore. I really do want to create a company that no matter what color your skin or gender, you never feel conscious because the company is so diverse.
How has life been since the episode aired?
It’s only been four days since the episode aired (at the time of this interview), but obviously “Shark Tank” is a very popular show and we’ve had a very big surge in sign-ups on the night of the airing, so we’re very, very pleased with the results.
What’s next for you guys?
We have very ambitious goals. We want to be the authority brand when it comes to anything involving romantic relationships. We have a very, very long way to go. We just launched our Android app which was a huge milestone and we’re going to continue to execute our expansion plan.
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FAQs
"Shark Tank" has been home to a number of record-breaking moments, but few compare to a mind-blowing Season 6 memory.
What was the biggest offer in Shark Tank history got rejected? ›
Coffee Meets Bagel
Cuban offered $30 million to buy the whole company outright — the biggest offer in the show's history at the time. The Kang sisters were not looking to part with the business, and they declined. Coffee Meets Bagel still got its needed funding.
What was the biggest offer on Shark Tank history 30 million? ›
Mr Cuban has previously made a $30million offer (£24.3million) offer for a dating app while appearing on ABC's Shark Tank, the USA's equivalent to Dragon's Den. The business he put down the offer for was a company called Coffee Meets Bagels.
Is Coffee Meets Bagel worth more than $30 million? ›
The sisters who is running the business ultimately decided to reject Mark Cuban's $30 million offer. Good thing that they rejected Cuban's offer since they went on be worth more than that after over seven years. At the moment, the company is valued at $150 million.
Has any Shark Tank deals failed? ›
What Shark Tank deals have failed? ToyGaroo, ShowNo Towels, Sweet Ballz, Body Jac, CATEapp, Breathometer and You Smell Soap are some of the companies that went through Shark Tank and later on shut down.
What percentage of Shark Tank deals actually go through? ›
90% of the deals fall through because the Founders believed the conditions weren't good for their business even though they took the deal on TV. Then, some deals have taken so long to negotiate that the episode has already aired.
What was the worst Shark Tank investment? ›
Mark Cuban says this was his worst 'Shark Tank' investment ever: 'Next thing you know, all of the... After more than a decade on ABC's "Shark Tank," Mark Cuban recently singled out the worst investment he's ever made on the show: the Breathometer.
How many Shark Tank deals failed? ›
But more often than not, those hand-shake agreements change or fall apart after taping. FORBES found that 319 businesses accepted deals on-air in the first seven seasons of Shark Tank. We spoke to 237 of those business owners and discovered 73% did not get the exact deal they made on TV.
What was the most profitable idea on Shark Tank? ›
What Is the Most Successful Product on "Shark Tank"? With more than $225 million in lifetime sales, Bombas has generated the highest sales on "Shark Tank". The company, which sells comfort socks and T-shirts, donates one item per item sold to help the homeless.
Which Shark has the most successful deals? ›
Billionaire Mark Cuban, who closed 54% of the 37 deals we tracked, invested in more than double the number of companies as other investors.
Mark Cuban is one of the richest people in the US with a net worth of US$4.6 billion, according to Forbes. The Dallas Mavericks NBA team owner has grown his fortune from investing in Shark Tank projects after he joined the series as a guest in season two.
What are the cons of Coffee Meets Bagel? ›
Free account limitations: The features available in the free version may not provide a good experience. Fewer matches: when using Coffee Meets Bagel, I was given fewer potential matches than on other dating apps and none seemed compatible, even with the app's promise to curate high quality matches.
What country uses Coffee Meets Bagel the most? ›
coffeemeetsbagel.com Website Traffic by Country
| Country | | All devices |
|---|
| United States | 43.13% | 284.4K |
| Thailand | 15.93% | 105K |
| Taiwan, Province of China | 8.34% | 55K |
| Canada | 6.95% | 45.9K |
1 more rowCoffee Meets Bagel (CMB) takes the lead over Tinder and OkCupid, with 25% of females voting for CMB as their favourite. Compared to other dating apps, CMB 'feels more trustworthy and secure' (66%) and people using it are 'able to have more genuine connections' (60%).
Who rejected Shark Tank offer? ›
The four sharks who joined its cap table were Amit Jain, Aman Gupta, Anupam Mittal, and Namita Thapar. (Vineeta Singh was the only shark that opted out of the deal, citing conflict of interest.)
Who is the least successful shark? ›
Worst: Barbara Corcoran
Throughout Shark Tank's 11- season run, Barbara has closed less than 20 deals. According to Forbes, an almost equal number of deals have failed to materialize. With a net worth of $80 million, she's the least wealthy among the main sharks, so her reluctance to invest is understandable.
Do companies pay to go on Shark Tank? ›
Nonetheless, many entrepreneurs who left without deals have gone on to enjoy great success with their products. It's important to note that while the sharks are paid to be on the show, the money they invest in the entrepreneurs' companies—if they choose to do so—is all their own.
How scripted is Shark Tank? ›
Yes, Shark Tank is a real television show that features entrepreneurs who pitch their business ideas to a panel of successful business executives, known as "sharks," in the hopes of securing an investment in exchange for a percentage of their company. "Shark Tank" is an adapted television show.
Why is Robert no longer on Shark Tank? ›
In Robert Herjavec's case, it was reported that he left Shark Tank because he wanted to spend more time with his family and focus on his other business ventures.
What are 5 Shark Tank failures? ›
5 'Shark Tank' Fails That Cost Big Money
- Amazon. Breathometer. The Breathometer sounded too good to be true, and maybe it was. ...
- Sweet Ballz. Sweet Ballz. Everyone loves cake, even investors. ...
- Amazon. Show No Towels. ...
- eclipse_images / Getty Images. Toygaroo.
Production. Shark Tank is produced by Mark Burnett and based on the format Dragons' Den, which originated in 2001 with the Japanese show, Tigers of Money.
How much did Lori make off Shark Tank? ›
How did Lori Greiner get rich? Lori Greiner got rich as an inventor and entrepreneur. Her first debt business venture of jewelry organizers made $1 million in revenue in the first year. She's also made a lot of money as an investor and makes about $1.2 million per season of Shark Tank.
Who is the richest person on Shark Tank? ›
Mark Cuban - $5 billion (estimated 2023)
Mark Cuban is without a doubt the wealthiest shark on Shark Tank. He is, by a wide margin, significantly wealthier than everyone else on this list. He worked hard and paid close attention to every detail as he built his fortune and empire.
How often should I replace my Scrub Daddy? ›
2 weeks is considered the normal lifespan for this product, however, the number will vary depending upon individual use.
Has anyone been on Shark Tank twice? ›
Six years later, Rebecca became an investor and co-owner of another Shark Tank product: The Hoodie Pillow. The Hoodie Pillow became a fast success, and after appearing on Shark Tank a second time, Rebecca left with a deal from Robert Herjavec for $90,000 in exchange for 20% of the company.
Which Shark has made the least deals? ›
Only 27% of these handshake deals were legally closed under the terms agreed to while filming the series. In this same survey, Lori Greiner and Robert Herjavec were still ranked the lowest two sharks in terms of closing — though Herjavec was three points lower than Greiner (about 46% and 49%, respectively).
What is the most successful business in the world? ›
In 2022, the Saudi Arabian oil company Saudi Aramco posted the highest net revenue of any company in the world, with profits of over 300 billion U.S. dollars.
Which shark has invested the most? ›
In all, about Rs 50.3 crore has been invested across start-up deals in the reality show. In the previous season of Shark Tank as well, Thapar invested roughly Rs 10 crore across 25 deals, the highest among all sharks.
Which product has been the most successful? ›
These are the best-selling products of all time.
- PlayStation. > Category: Video game console. > Total sales: 344 million units. ...
- Lipitor. > Category: Pharmaceutical. > Total sales: $141 billion. ...
- Corolla. > Category: Vehicle. > Total sales: 40.7 million units. ...
- Star Wars. > Category: Movies. ...
- iPad. > Category: Tablet.
New research from the University of South Florida suggests that one of the evolutionary secrets of the shark's success hides in one of its tiniest traits -- flexible scales on the bodies of these peerless predators that make them better hunters by allowing them to change directions while moving at full speed.
The speartooth shark (Glyphis glyphis) is one of the rarest shark species on earth, found only in tropical rivers in New Guinea and northern Australia.
Did Barbara Corcoran leave Shark Tank? ›
After 14 years on the show it might be impossible for viewers to imagine Shark Tank without Barbara Corcoran. Yet when the series was in its early stages of production the real estate mogul was dropped from the line-up for the only female-occupied seat on the panel.
Who is the most successful investor alive? ›
The story of the top 5 richest investors in the world
- Warren Buffett. Net worth: $103 Billion. Founder & CEO of Berkshire Hathaway. ...
- Jim Simons. Net worth: $28.6 Billion. Founder of RenTech, a quantitative hedge fund. ...
- Ken Griffin. Net worth: $27 Billion. ...
- Ray Dalio. Net worth: $22 Billion. ...
- Carl Icahn. Net worth: $17.5 Billion.
Mark Cuban is a smart guy.
Who is the youngest investor on Shark Tank? ›
Six-year-old Kiowa Kavovit holds the record.
Are there fake profiles on Coffee Meets Bagel? ›
Fake profiles and romance scams
Coffee Meets Bagel (CMB) strives to protect the integrity of its community and provide users with a safe, positive online dating experience. Unfortunately, fraudulent users can spoil the fun for the daters who are truly looking for love.
What is the average user age for Coffee Meets Bagel? ›
While CMB targets the same core group as Hinge, the majority of Coffee Meets Bagel users are in the 30 to 49 age range, with only 36% age 29 or younger.
What happens after 7 days on Coffee Meets Bagel? ›
In the meantime, all your chats will now close after the original 7 day time limit without an option to extend. As always, you will see the expiration date at the top of the chat, and you will receive a notification when the chat is about to expire.
What state eats the most bagels? ›
Bagel eating in the US is concentrated around the Great Lakes and the NJ, NW and PA areas – topped by New Yorkers, Bagels are favored over other bread products! Bagels tend to be considered an elite food, being consumed by higher income households and individuals.
What is the gender ratio for Coffee Meets Bagel? ›
Distribution of selected mobile dating app users in the United States as of April 2016, by gender
| Characteristic | Female | Male |
|---|
| Coffee Meets Bagel | 57.3% | 42.7% |
| eHarmony | 55.2% | 44.8% |
| okCupid | 48.3% | 51.7% |
| Bumble | 46.2% | 53.8% |
9 more rowsDec 6, 2016
The data has been calculated by Statista based on the U.S. Census data and Simmons National Consumer Survey (NHCS). According to this statistic, 202.07 million Americans consumed bagels in 2020. This figure is projected to increase to 205.34 million in 2024.
How often do guys get matches on CMB? ›
Men receive up to 21 matches — or “bagels” — a day to decide on. Of the men who express interest, women will receive up to six curated matches that the algorithm finds with the most potential.
How does Coffee Meets Bagel make money? ›
Launched in 2013, San Francisco-based dating app Coffee Meets Bagel just reached a momentous milestone on Apple's App Store. According to Sensor Tower Store Intelligence estimates, the service has earned $10 million in net revenue on the platform via in-app purchases and subscriptions.
What dating site has bagel? ›
Coffee Meets Bagel is a free dating app, but you can always upgrade to Premium for special features. Plus, Premium members get up to 2x more dates. Premium features are subject to change, but here are the current perks you can enjoy: - See all your likes: Why wait?
Who turned down a million dollars on Shark Tank? ›
Deborah Torres: making it on her own
Impressed by her product, the sharks offered Torres $1 million for her company. She turned it down.
Who got the biggest deal in Shark Tank history? ›
What Is the Most Successful Product on "Shark Tank"? With more than $225 million in lifetime sales, Bombas has generated the highest sales on "Shark Tank". The company, which sells comfort socks and T-shirts, donates one item per item sold to help the homeless.
Who is the poorest shark on Shark Tank? ›
Barbara Corcoran
Corcoran has become most known for her time as a shark on "Shark Tank" where she has been featured since the first episode and has 53 deals out of more than 300 pitches. She sports a reported net worth of roughly $100 million, which makes her the least wealthy of the sharks on the show.
What is the lowest ask in Shark Tank history? ›
And yet, all Gadlin wanted was $10,000, for which a Shark would get 25 percent of I Want to Draw a Cat for You. That's the smallest pitch in "Shark Tank" history, financially speaking, and Mark Cuban agreed to support Gadlin, upping the deal to a 33 percent stake for a $25,000 investment.
Why did Anita leave Shark Tank? ›
In the upcoming episode of Shark Tank India 2, the sharks landed into an ugly fight on national television. However, things got a bit out of control after Namita Thapar walked out of the show after shouting at Anupam Mittal. It all started over a pitch for the home furnishing brand, Netroots.
Who is the best shark to invest with? ›
Best: Robert Herjavec
Robert has also appeared on the Canadian version of Shark Tank called Dragon's Den. With a net worth of $200 million, he is not close to being the wealthiest shark but he still quite generous. He is the only shark to make two multi-million dollar investments on the show.
In all, about Rs 50.3 crore has been invested across start-up deals in the reality show. In the previous season of Shark Tank as well, Thapar invested roughly Rs 10 crore across 25 deals, the highest among all sharks.
How much does Kevin o leary make on Shark Tank? ›
Since he has amassed such a large fortune, you may be curious about Kevin O'Leary's yearly salary. He averages $30,000 for every episode of Shark Tank, and there are typically 24 episodes per year. Altogether, this amounts to around $720,000 from the program.
