The negotiation segment of “Shark Tank” is already intense, but sometimes things can get pretty explosive.
Fans have revisited a 2015 episode of the show from season 7 that captured a heated argument between Mark Cuban and guest Shark, Chris Sacca, a venture investor who has been behind the early stages of companies such as Uber, Instagram, and Kickstarter.
The company up to bat was Brightwheel, an education-based software firm owned by tech entrepreneur Dave Vasen. The Sharks were intrigued to hear the company was already being utilized in 2,500 schools nationwide, had already secured $2.2 million in seed funding, and had a solid expansion plan for the Shark investment they sought.
Vasen walked into the den seeking $400,000 for a 4 percent stake in his company at a $10 million valuation.
The Sharks made their rounds with their thoughts on Vasen’s pitch. Daymond John opted out, citing his lack of knowledge of educational ventures, which meant he couldn’t to be an asset to the company. Kevin O’Leary began negotiations with an offer of $400,000 for 10 percent equity but was instantly pushed out when Cuban and Sacca entertained the chat.
Sacca analyzed Brightwheel’s “freemium business model” and proposed $400,000 for 4.85% equity, leveraging his Silicon Valley connections. Cuban countered with the original ask of $400,000 for 4 percent, emphasizing his broader market credibility outside Silicon Valley.
Hearing their offers, Vasen presented the idea of merging them to get the most out of the investment. When presented with the possibility of the partnership, Sacca questioned if Cuban had enough tech experience to bring any value to Brightwheel, making a partnership more than beneficial for him.
“If I’m looking at the other sharks, and I’m going to let them into my deal, I have to be convinced that the piece of the deal I have left is going to be worth more as a result of that. With your company, I’m not convinced of that,” Sacca said.
His bold statement seemed to ruffle some feathers, predominantly Cuban, his direct competition.
With no stakes in negotiation, John began instigating the contest between the two. “That translates to you two are a bunch of losers,” he said with a sly laugh.
Sacca continued to push by asking Vasen what he thought he “needed” from the rest of the line — ultimately setting Cuban off.
Cuban asked, “Are you serious? Are you really that clueless?”
The fiery exchange between Cuban and Sacca continued as John broke into a playground chant of “Shark fight! Shark fight!”
Seeming to be pushed into a wall and flustered by the growing conflict, Vasen said he was taking Sacca’s offer. John jumped in to play devil’s advocate, asking if that meant he wasn’t open to “listening” to anything else.
Sacca and Cuban continued to take shots at each other, with Cuban insinuating Sacca’s “little bubble” called Silicon Valley wouldn’t take Brightwheel far and didn’t mean “sh-t.”
While the Dallas Mavericks owner threw his verbal jabs, John emphasized his stinging words by mimicking stabbing motions in Sacca’s direction.
As tensions continued to rise, O’Leary attempted to bring some order back into the den.
“While the two ends of the tank are squabbling like chickens. I just want to point out that the only shark that’s ever had a multi-billion dollar exit in your space is Mr. Wonderful,” he said, pointing to himself.
He continued. “This is my space. I know exactly how to help you, and I think, frankly, I bring a lot to the table.”
After considerable back and forth, the duo ultimately invested $600,000 into the company for a shared stake of 6.67%. When the new investors went up to seal the deal with their new business partner, the tension was still thick as they avoided the customary handshake.
Still in instigation mode, John watched the interaction jokingly urging the two to “hug it out.”
The unexpected bidding war was a theatrical display of how intense business negotiations can get before paying off.
According to Looper, Brightwheel has boomed since its 2015 appearance. Cuban and Sacca invested an additional $10 million in the company in 2017. In 2018, the company snagged a $21 million investment from the Chan Zuckerberg Initiative, spearheaded by Facebook founder Mark Zuckerberg and his wife, Priscilla Chan.
As of April 2023, Forbes reported Brightwheel’s value at $735 million.
