Detroit entrepreneur Mike Gutow appeared on “Shark Tank” to current Legacy Shave, a shaving brush attachment designed to suit any shaving cream can. The product is aimed to resolve frequent shaving issues whereas honoring a significant household legacy.
The entrepreneur not solely walked away with a deal, however he did what appeared unattainable: obtained the hardest shark to shed a tear.
Throughout the season 4, episode 7 presentation that aired on Nov. 22, 2022, Gutow successfully demonstrated how his product labored in comparison with conventional shaving strategies.
“Hello, Sharks, my identify is Mike. I’m from metro Detroit, Michigan, and I’m searching for a $300,000 funding for 10 % fairness in my firm,” Mike started confidently. “We have now patented expertise set to disrupt a $50 billion-a-year international business — the shaving business.”
He went on to elucidate that shaving lotions are usually allotted in a method that isn’t best. As an alternative of exfoliating the pores and skin, they shut pores and mat down hair follicles. Legacy Shave was created as the primary common pendant shave brush dispenser, delivering the right quantity with a single pump.
Mark Cuban mentioned it was the perfect presentation ever. Rob Herjavec leaned ahead and requested, “How does it work, Mike?”
After demonstrating the product’s performance, Mike shared the deeply private story behind Legacy Shave.
“Twenty-eight years in the past, we gave my dad a present for Father’s Day. My dad was a each day shaver, and he at all times complained about razor bumps and burns.”
He defined how he and his brother had developed a prototype many years in the past however hesitated to maneuver ahead with it.
“That’s the place it sat for actually 20 years,” he mentioned.
Gutow’s voice softened as he mentioned, “Sharks, sadly, my dad handed away from most cancers. Years after, my brother and I went all the way down to his basement, and there sat 3,000 of our unique prototypes from 28 years in the past. And my dad had assembled them throughout his chemo therapies to maintain himself busy.”
“He knew we’d ultimately see this,” he continued. “And, Sharks, he left another factor for us.”
“A message past the grave that mentioned: ‘Don’t wait. Life’s quick,’” the son mentioned.
Mike revealed that Legacy Shave had offered over 100,000 items and generated greater than $1 million in gross sales over 5 years. Nonetheless, the corporate had been working at a loss, along with his household investing over $400,000 of their very own cash.
Barbara Corcoran was direct in her evaluation, “You’re an outstanding salesman, however you’re not a transparent communicator. You’re all around the map… For that purpose, I’m out.”
Mark Cuban additionally dipped out.
At one level, after listening to the story, O’Leary began wiping his eyes. The notoriously ruthless investor, typically the primary to close down hopeful entrepreneurs with reducing remarks, was undeniably moved.
This explicit shark has constructed a status along with his blunt, typically ruthless critiques of entrepreneurs.
Many know he’s fast to dismiss pitches with harsh remarks like “You don’t have an actual enterprise, you have got a fantasy.” He has even decreased numerous hopeful founders to tears.
As soon as, he referred to Black girls as “cockroaches” and appears to get pleasure from his position because the present’s most feared investor.
However one thing about Gutow’s story had pierced by that hardened exterior. The message from past the grave — a father’s remaining phrases urging his sons to not wait, to grab life’s alternatives — had touched a uncommon vulnerability in O’Leary that few had ever witnessed.
Regardless of being moved, O’Leary returned to enterprise.
“The shaving class… is extremely crowded and dominated by behemoths,” Lebanese & Irish Canadian mentioned. “I’m not going to take that journey with you.”
Lori Greiner, nonetheless, noticed one thing particular. “I actually just like the interchangeability of this cover onto something — and that you’ve a patent.”
She added, “I’m going to take an actual flier on you, Mike.”
She supplied $1,000,000 for one hundred pc of the corporate with a 3 % royalty for all times. After some negotiation, they settled on $700,000 for 95 % fairness, permitting Mike and his brother to retain 5 % possession.
“Mike, what would your dad consider this second?” When Corcoran requested because the deal was sealed.
Gutow mentioned, “I feel he’d be rattling proud. I even wore his ring right here immediately so he might be with me. I do know he’s standing subsequent to us proper now, saying, ‘Approach to go, you two knuckleheads! Let’s go!’”
The impression of his “Shark Tank” look was quick. Legacy Shave merchandise offered out on QVC inside days of the episode airing, in accordance with Geeks Round Globe.
Beneath Greiner’s steering, the corporate’s web value skyrocketed to $7 million by 2025, with month-to-month income climbing to $170,000. It was only a nice state of affairs for the founder. The shark’s $700,000 funding turned out to be one among her most profitable “Shark Tank” ventures, incomes her practically $5.7 million by 2025.
