Successful Shark Tank guest values company.
The podcast transcript reveals a conversation with Alexiou, one of the most successful Shark Tank guests. The host acknowledges Alexiou's achievements and mentions that he has received investments from Mark Cuban and Kevin Hart, two prominent figures. The host expresses excitement about the opportunity to discuss Alexiou's success and mentions that he must have had an amazing pitch to secure such investments.
Alexiou confirms that his pitch was well-received and mentions that his TikTok team considers it one of the best pitches on Shark Tank. He admits that he was unaware of the positive reception until after the episode aired. He emphasizes the pressure he felt to not disappoint his community and the CMOS community. Alexiou had already established a successful business before appearing on the show and did not want to embarrass himself or receive negative publicity.
The host fast-forwards to the investment details and asks how much Mark Cuban and Kevin Hart invested in Alexiou's company. Alexiou reveals that they invested $600,000, with each taking a 10% stake, resulting in a combined 20% ownership. However, he emphasizes that the monetary investment is not the most significant part of the deal. He mentions that he devalued his company to work with them, as he initially wanted to sell 5% for $500,000, which would have valued his company at $10 million. Mark Cuban and Kevin Hart wanted a larger percentage to be more involved in the business. Alexiou expresses his gratitude for the opportunity to work with them, acknowledging that their consultation alone is invaluable.
The host questions Alexiou's audacity in valuing his company at $10 million. Alexiou justifies his valuation by stating that his company generated $4 million in its first 10 months and had not even tapped into platforms like TikTok or launched new products. He believed that there was untapped potential and growth opportunities, which were later proven right when his company reached $16 million in revenue in 2023.
The host suggests that Alexiou undervalued his company, to which Alexiou agrees. He confesses that he primarily wanted to work with Mark Cuban and had his eyes set on him even before appearing on the show. Alexiou explains that Mark Cuban rarely invests in supplements or food products, so he was prepared for the possibility of rejection. However, during the negotiations, Mark Cuban showed interest and partnered with Kevin Hart to invest in Alexiou's company.
The conversation then shifts to the financial aspects of Alexiou's business. He confirms that his company made $16 million in revenue in 2023. When asked about profit margins, Alexiou explains that the previous year's profits were lower due to investments in building a 20,000 square foot warehouse and developing new products like gummies. However, he mentions that their profit margins are above 35%, which is considered quite good. Alexiou anticipates that as the business grows and all the investments are in place, their revenue will triple.
In conclusion, the podcast transcript highlights the success of Alexiou, a Shark Tank guest who received investments from Mark Cuban and Kevin Hart. It emphasizes the value of the relationships formed and the potential for growth in Alexiou's company. Despite initially undervaluing his company, Alexiou's success and future prospects justify his audacious valuation.