While appearing on The Breakfast Club, Shark Tank star Kevin O’Leary admitted that he was wrong when he decided not to invest in The Lip Bar.
The Lip Bar, a vegan and cruelty-free beauty brand founded by Melissa Butler in 2012, went on Shark Tank in 2015, Because of Them We Can reports. Butler and her business partner, Rosco Spears, gave an impassioned pitch about the brand, which was already making a name for itself in Butler’s hometown of Detroit.
They talked about their triumphs and challenges, which were mainly distribution. Butler and Spears hoped to launch a “Lip Bar Mobile” that would help bring their products to out-of-reach customers, and they asked the investors for $125,000 for a 20% stake in the company.
The investors questioned their numbers and marketing strategy and ultimately told Spears and Butler to abandon their business idea.
The Lip Bar has since gone on to become a major player in the beauty industry. It recently celebrated its 10-year anniversary, mentioning that it has sold 2 million units, Because of Them We Can reports.
Seven years after Spears and Butler’s Shark Tank appearance, O’Leary is opening up about his lack of belief in the company.
The cosmetics company came up after the 67-year-old millionaire proclaimed his business prowess, telling the hosts that he’s “never wrong” when it comes to a business. Angela Yee quickly brought up The Lip Bar, reminding O’Leary that they’ve become a success despite his rejection of them.
“Yeah they rub that in my face even on billboards,” he said, referencing billboard advertisements for the brand’s anniversary that blast Shark Tank for rejecting it.
He went on to say that even though he was skeptical at first, he’s proud of what The Lip Bar has become and what Butler and Spears have been able to accomplish.
“I’m proud of them for taking the heat, I’m proud that they’re entrepreneurs that are successful, and it’s a wonderful thing to see that happen,” he said in the episode. “But they were facing an almost impossible task because going into the cosmetics industry is so difficult to get market share, but they pulled it off so, look, you got to applaud them, there’s no question about it.”
