Blaine Anderson, the CEO of online dating coaching company Dating by Blaine, has detailed why she declined an offer from billionaire Mark Cuban after initially accepting the deal on “Shark Tank.”
What Happened: Anderson’s company, which provides online dating courses and personalized coaching, was pitched on the ABC reality TV show. Anderson initially sought $100,000 for a 2% stake in her company, which would have valued it at $5 million.
Founded in 2020 after Anderson lost her job due to the pandemic, the company has since generated over $2.2 million in sales, with a profit of around $500,000 on sales worth $1 million in 2022.
According to a report by Business Insider, despite initial interest from the Sharks, Anderson’s inability to provide detailed revenue breakdowns led to some Sharks dropping out.
However, with assistance from Shark Barbara Corcoran, Anderson struck a deal with Cuban for $100,000 in exchange for a 10% stake, reducing the company’s valuation to $1 million.
Although the deal was agreed upon on the show, Anderson later decided not to proceed with Cuban’s investment, citing the complications of having an external investor as the reason for her decision.
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“Mark is down to earth, easy to work with, shockingly accessible, super smart, and funny. He cares about his entrepreneurs, and I’d be glad to work with him someday,” she said.
Why It Matters: Anderson’s decision to reject Cuban’s investment highlights the challenges faced by entrepreneurs when considering external investments. While such investments can provide much-needed capital, they can also introduce complexities and potential conflicts of interest.
Anderson’s experience also underscores the importance of entrepreneurs being able to provide detailed financial information about their companies. Her inability to provide a detailed revenue breakdown was a significant factor in some Sharks’ decision to drop out.
Despite the setback, Anderson remains optimistic about the future of her company and expressed a desire to work with Cuban in the future. Her experience serves as a reminder to other entrepreneurs of the importance of being prepared and understanding the potential implications of external investments.
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