• Mark Cuban has an estimated net worth of $4.1 billion, according to Forbes.
• He's earned his fortune through a lifetime of business deals, including the $5.7 billion sale of Broadcast.com, his ownership of the Dallas Mavericks, and investments made on ABC's "Shark Tank."
• Cuban has spent millions on private airplanes, a yacht, and a luxurious Dallas home, not to mention $2 million in fines from the NBA.
• The billionaire investor recently sold majority stakes in his two cable networks — AXS TV and HDNet Movies — to Steve Harvey and Anthem Sports for an undisclosed sum.
• Visit Business Insider's homepage for more stories.

Mark Cuban is one of the wealthiest people in America, with an estimated net worth of $4.1 billion, according to Forbes— but getting there wasn't easy.

Cuban's journey to becoming a billionaire included living in a "dumpy" apartment, where he stayed up late eating chicken wings and teaching himself to code. In April, the mogul told attendees at the Dallas Startup Week conference of the unglamorous life of an aspiring entrepreneur — one that included no vacation time for seven years and stealing towels from the Holiday Inn, according to a report from Dallas News.

The late nights ended up paying off: The businessman and investor earned his fortune with a series of shrewd business deals starting in the 1990s, most notably the sale of his streaming site Broadcast.com for $5.7 billion in stocks. He continues to make major moves in the industry, most recently through selling a majority stake in his two cable networks, AXS TV and HDNet Movies, to Steve Harvey and Anthem Sports for an undisclosed sum, Deadline reports.

Read on to see how Cuban earned — and spends — his fortune.

SEE ALSO: A look inside the daily routine of billionaire investor Mark Cuban, who starts working the minute he wakes up and falls asleep to 'Law & Order'

DON'T MISS: A look inside the marriage of billionaire investor Mark Cuban and his wife Tiffany, who met at the gym, are worth $3.3 billion, and insist he won't run for president

Mark Cuban is worth an estimated $4.1 billion, according to Forbes. That ranks him among the 500 richest people in America.

Source: Forbes

Cuban made his fortune over a lifetime of shrewd business deals. He's the owner of the NBA's Dallas Mavericks …

Source: Forbes

… he's the co-founder of 2929 Entertainment, which owns the production companies behind films like "Akeelah and the Bee" and "Good Night and Good Luck"…

Source: Biography

… and he's also a regular on ABC's "Shark Tank," in which hopeful entrepreneurs pitch their businesses to a panel of celebrity investors.

Source: ABC

But Cuban made his fortune years before any of those ventures. He got his start in the early 1980s selling software for a company called Your Business Software.

Source: CNBC

In 1982, he started his own company, MicroSolutions, which he sold eight years later for $6 million. Cuban made $2 million off the deal.

Source: CNBC

But Cuban would really make his name with his next business venture: an Internet radio company called Audionet, which eventually became Broadcast.com.

Source: Biography

Cuban took control of the company in 1995. The site streamed broadcasts of sports games, political conventions, and other events.

Source: Biography

In 1999, Yahoo acquired Broadcast.com for a whopping $5.7 billion in stock. Cuban netted $1 billion when he sold his shares.

Source: CNN

Around that time, Cuban bought a Gulfstream V business jet for $40 million. To this day, it holds the Guinness World Record for the biggest purchase ever conducted over the internet.

Source: Guinness World Records

Cuban called the plane one of the smartest purchases he's ever made. "It's obviously brutally expensive, but time is the one asset we simply don't own," he wrote for Men's Health. "It saves me hours and hours."

Source: Men's Health

Coming off the heels of his billion-dollar payday, Cuban bought the Dallas Mavericks for $285 million in 2000.

Source: Biography

He raised his profile by sitting courtside at Mavericks games and drew attention for his animated reactions and media outbursts.

Source: Orange County Register

His frequent criticisms of NBA refs have cost him a small fortune — as of February 2018, the NBA had fined him close to $2.6 million for his comments and antics over the years.

Source: The New York Times

He's given to numerous charities over the years, including Autism Speaks, Cedars-Sinai Medical Center, the Christopher & Dana Reeve Foundation, and the Elton John AIDS Foundation.

Source: Look to the Stars

After Hurricane Maria devastated Puerto Rico in 2017, Cuban lent his private plane to Mavericks point guard and Puerto Rico native J.J. Barea to fly food, water, and supplies to the island.

Source: ESPN via Business Insider

In response to an NBA investigation — prompted by a Sports Illustrated report — that unearthed evidence of the Mavericks organization having been a discriminatory and toxic workplace for women, Cuban pledged $10 million to women's causes and domestic violence awareness.

Source: Sports Illustrated, Associated Press

Today, Forbes estimates the Mavericks are worth $2.3 billion — $2 billion more than what Cuban paid for the team 18 years ago.

Source: Forbes

Cuban has done his fair share of spending. On top of the private plane, in 1999 he paid $17.6 million for a 24,000-square-foot mansion in Dallas, where he and his family still live.

Source: D Magazine

The 7-acre property reportedly features 10 bedrooms, 16 bathrooms, a tennis court, a swimming pool, and a separate guest house in the back.

Source: Forbes

In 2018, Cuban also bought a $19 million vacation villa in Laguna Beach's exclusive Montage Residences community. The modern, six-bedroom home has walls that disappear to open up to the outdoor space and a private pool.

Source: Villa Real Estate

Read more: Mark Cuban just bought a $19 million Laguna Beach vacation home that comes with concierge service and walls that open up to views of the Pacific Ocean. Here's a look inside.

When the Mavericks won the NBA championship in 2011, Cuban reportedly spent $110,000 on his team's bar tab that night. "Worth every penny," he told The New York Post.

Source: The New York Post

The next year, Cuban chipped in $40,000 to save the local Greenville Avenue St. Patrick's Day Parade when the group running the annual event ran out of funding. "You just can't let a Dallas tradition like that die," Cuban said.

Source: KXAS-TV

Cuban leveraged his fame into a short-lived 2004 reality series called "The Benefactor," in which contestants competed to win $1 million of Cuban's money. However, the show was panned as a ripoff of "The Apprentice" and was cancelled after six episodes.

Source: IMDB

Another TV show he's on, "Shark Tank," has proven much more successful. The long-running series is now entering its 11th season.

Source: ABC

Over the course of his years-long stint on the show, Cuban has made close to 100 deals and has invested millions of dollars in startups and small businesses.

Source: Sharkalytics

The largest deal he ever offered on the show came in 2015, when he proposed to buy the dating-app company Coffee Meets Bagel outright for $30 million. The owners rejected the deal.

Source: Business Insider

Cuban recently sold his two long-standing cable networks — AXS TV and HDNet Movies — to Steve Harvey for an undisclosed sum.

Steve Harvey joined Anthem Sports & Entertainment to take over the two networks from Cuban. ASX TV's programming includes wrestling and MMA fighting, and HDNet Movies shows a variety of films.

Cuban will continue on with the two companies as an equity partner, while Anthem is taking over operational control.

Source: Deadline

Cuban previously said one of the best purchases he ever made was an unlimited first-class American Airlines ticket for $250,000 — a promotion that the airline offered from 1981 to 1994. Cuban and 25 other ticket-holders continue to enjoy free airfare for life.

Source: The Hustle

Of course, considering he now owns two private jets and a yacht, first class might actually be a step down for Cuban.

Source: Dallas News

Despite his sometimes lavish spending, Cuban keeps a frugal mentality much of the time. For example, he insists on buying items in bulk, especially items he knows he'll need such as razors and toothpaste.

Source: NPR

And he advocates for people to achieve financial independence by paying off debt and stashing six months' worth of income in the bank.

Source: Entrepreneur

It's a combination of relentless work ethic and financial smarts that have not only made Cuban one of the richest people in America, but kept him that way. As he once said, "Work like there is someone working 24 hours a day to take it all away from you."

Source: Inc.

• Katrina Lake is the founder of the personalized-clothing service Stitch Fix, which passed $1 billion in net revenue for fiscal year 2018. She will also be a judge on the new season of "Shark Tank."
• She attended Harvard Business School with an idea of the company she wanted to start and focused more on practical experience than the degree itself.
• Business Insider correspondent Shana Lebowitz interviewed Lake about her mindset going into business school and how well it served her.
• Click here for more BI Prime stories.

Katrina Lake knew she would spend more time pursuing her goals outside class than in it. She applied to Harvard Business School anyway. 

The idea, Lake told Business Insider correspondent Shana Lebowitz, was to make sure she had a fallback plan just in case her big idea for a company didn't work. In this case, her plan B would be most people's unattainable plan A. 

"I went to school thinking I can be a mediocre student and just get by in school, but spend as much as my free time as I can on getting this company off the ground," Lake said. "I wanted to get the company off the ground and pay back my salary, pay down my student loans the day I graduate. And if I wasn't able to do that, then the risk profile of entrepreneurship wasn't going to be for me."

Lake went on to found Stitch Fix, a personalized-clothing service that continues to grow exponentially. The company went public in 2017. The service passed $1 billion in net revenue for fiscal year 2018, and based on its most recent quarterly report, it has raised its revenue expectations for fiscal year 2019. It sits at a $1.89 billion market cap as of this writing.

When Lake was considering business school, however, she didn't know Stitch Fix would succeed as spectacularly as it did. Lake has previously said she was risk-averse growing up and even thought about applying to medical school. That perspective on risk should be interesting to watch, as Lake is going to be a guest judge on the newest season of "Shark Tank."

Lake ultimately decided against medicine. She majored in economics at Stanford and got her MBA at Harvard.

The idea for a company in the retail space had already taken root by the time she applied to business school, but she didn't outright admit in her essays that she wanted to start a company.

"I think I said that I'm going to lead a company that is transforming apparel retail and I talked about the space and why I was interested in it, but even in my application essay I wasn't bold enough to say, I'm going to start a company," Lake said.

When she got to campus, though, she did everything around entrepreneurship that she could, in classes and clubs and everything in between.

"I was able to set goals and to have a plan where I could pursue entrepreneurship, but in a way that didn't feel like crazy, scary, disruptive to me in my life," Lake said.

The key, she said, is understanding the potential of your idea when you have it and then structuring a plan so that you navigate entrepreneurship in the best way for you. Lake's approach stands in contrast to the stereotype of the Silicon Valley dropout, and that's because she matched her path to the level of risk she would face along it.

"That was the way that I could find entrepreneurship tenable given my risk profile," she said.

SEE ALSO: After cleaning out my closet, I realized all my favorite clothes came from personal styling services — here's why they're such a smart way to shop

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NOW WATCH: Kylie Jenner is the world's second highest-paid celebrity. Here's how she makes and spends her $1 billion.

• A new company called MindMed just raised $6.2 million in a bid to make psychedelics without their characteristic hallucinogenic qualities.
• Investors in the round include 'Shark Tank' host Kevin O'Leary, as well as Bruce Linton, the architect behind the world's biggest cannabis grower, Canopy Growth.
• MindMed says it's currently focused on turning a drug inspired by the psychedelic ibogaine into a treatment for opioid addiction.
• Click here for more BI Prime stories.

Turning a promising compound into an FDA-approved prescription drug is hard work. Add in side-effects that can include questioning the nature of your reality, and it gets even harder. 

A new company called MindMed just raised $6.2 million to try to make psychedelics without their characteristic hallucinogenic qualities, so that the compounds can be used in medicines for diseases like addiction. Those qualities can include powerful sensations like feeling outside of one's own body.

Investors in the latest round include Shark Tank host Kevin O'Leary, Bruce Linton, the former CEO of the world's biggest cannabis grower, Canopy Growth, and James Bailey, a partner at private equity firm Bail Capital and early investor in psychedelics company Compass Pathways. Linton also joined MindMed's board of directors.

Founded earlier this year, MindMed aims to capitalize on the recent wave of interest in psychedelics to create versions of the drugs without hallucinogenic effects — that is, medicines that don't induce the classic psychedelic experience also known as a "trip." 

MindMed aims to get FDA approval for a treatment inspired by the West African drug ibogaine

The company's cofounder and director, JR Rahn, spoke to Business Insider exclusively about its latest fundraise and the company's ambitions, along with Kevin O'Leary, the "Shark Tank" host.

Based in the US and Canada, MindMed's team of 11 is scattered across Toronto, New York, and San Francisco. The company's first goal is getting approval from the US Food and Drug Administration for a drug candidate inspired by the psychedelic West African drug ibogaine. 

Someresearchsuggests that ibogaine could help treat opioid addiction in people who've struggled to see results with other therapies. But the drug has also been linked with serious, potentially life-threatening side-effects.

MindMed's compound, called 18-MC, was developed to remove ibogaine's hallucinogenic properties while maintaining its medicinal ones, Rahn said.   

'This is going to be a renaissance for psychedelics or an apocalypse'

Rahn believes the psychedelics industry is at a make-or-break crossroads.

Either the recent resurgence of interest in drugs like psilocybin and MDMA could fuel new therapies for hard-to-treat conditions such as depression and addiction, or it could lead to disaster as people in the industry tire of working out a sustainable business strategy for the drugs, which are widely illegal and tough to administer.

"This is going to be a renaissance for psychedelics or an apocalypse," Rahn said.

A full psychedelic experience can take anywhere from 4 to 12 hours. During a trip, people can experience troubling hallucinations, visions, and out-of-body experiences. If and when these drugs are approved as medicines, patients will most likely need to visit special clinics to receive them. 

Read more: Investors just launched the first VC dedicated exclusively to psychedelics, which they call the 'next wave' after the cannabis boom

Rahn's hope with 18-MC is that it can help treat addiction without the inconvenience and expense tied to traditional psychedelics. Earlier this month, MindMed acquired the drug development program for 18-MC from now-shuttered drug company Savant HWP, Biospace reported. Savant's leadership team and scientists also joined MindMed, Rahn said. 

The idea of prescription-based, non-hallucinogenic drugs are appealing to Rahn for another reason, too. He believes they would bring in revenue that could free them up to work on potential addiction therapies involving more intensive hallucinogenic drugs, such as psilocybin or LSD. 

"I think you need to have both in your pipeline to actually deploy these medicines," Rahn said.

O'Leary agreed. He said a key reason he chose to invest in MindMed is because they are exclusively focused on creating FDA-approved medicines. O'Leary added that he turned down several opportunities to invest in cannabis companies who were pursuing recreational use, for example.

MindMed is currently preparing to test 18-MC in a second clinical trial, according to Rahn and MindMed's chief medical officer, Scott Freeman. An early-stage trial of the drug's safety, which included 14 people and took place in Brazil, was completed in 2014, Scientific American reported. Rahn and Freeman said they had not yet published the results because they contain some of the company's intellectual property.

Trip treatment without the trip?

Some clinicians see tripping as vital to the psychedelic healing process. Rahn and his team do not.

In recent years, scientists have studied the potential benefits of a full, trip-inducing dose of psychedelics on mental illnesses that range from anxiety to depression and addiction. They have come to promising, but early, conclusions using psilocybin, the main psychoactive component of magic mushrooms, to treat severe anxiety and depression, as well as using MDMA or ecstasy to treat veterans with PTSD.

In March, the FDA approved a treatment for severe depression that's based on the semi-psychedelic drug ketamine. Patients have to take the treatment, called Spravato, in a clinic, because of the potential for side effects like the"out of body" sensation known as dissociation.

The idea of taking a full dose of a drug like LSD — not to mention a 12-hour treatment window dotted with colorful hallucinations — may be intimidating to some people, Rahn said. And he believes MindMed could help people without making them trip.

"If it's not a trip-based therapy, I'm ok with that," Rahn said. "We can't be purists about how we use these substances." 

Ibogaine has some big drawbacks

Still, ibogaine is not discussed in today's psychedelic circles with quite as much fervor as compounds like psilocybin or ecstasy, despite its long history as a healing tool among members of the Bwiti religion in West Africa.

Ibogaine has been involved in more than 30 deaths, according to the Multidisciplinary Association for Psychedelic Studies (MAPS), and its side-effects include an increased risk of heart attacks and seizures. 

Nevertheless, some recent studies of the drug have been promising. In 2017, in comments it submitted to President Barack Obama's Commission on Combating Drug Addiction and the Opioid Crisis, MAPS asked the Commission to recommend further federal funding for research and development of ibogaine as a clinical treatment for opioid abuse.

Rahn said MindMed aims to start its second clinical trial on 18-MC late next year. He added that the company is hiring more research scientists and plans to open an office in Europe.

"We're focused on creating something that people can access and afford," Rahn said.

SEE ALSO: Tim Ferriss just helped launch the world's first research center dedicated to turning psychedelics into medicines

DON'T MISS: Investors just launched the first VC dedicated exclusively to psychedelics, which they call the 'next wave' after the cannabis boom

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NOW WATCH: This summer may be hotter than you expect. Here's how hot it will get in every state.

• There are ways to eliminate single-use plastics from nearly every aspect of your life, including the way you clean your home. 
• Blueland is a new startup that makes reusable cleaning products so you never have to throw a plastic household cleaner in the trash can again. 
• The Clean Essentials kit ($38) contains sturdy reusable bottles and dissolvable tablets for multi-surface, glass and mirror, and bathroom cleaners and hand soap. All you need to do is add water and a tablet to the bottle.
• Since tablet refills are small and cost only $2 each, this system also saves you money and space on cleaning products in the long run. 

It's becoming easier to eliminate single-use plastic. When you go grocery shopping, use a nylon tote bag. Instead of buying plastic water bottles, use water filters at home and carry a reusable water bottle when you go out. To wash your hair and brush your teeth, use shampoo bars and mouthwash tablets. 

If you look hard enough, there are now ways to "de-plasticize" nearly every aspect of your life, including the laborious, expensive, and wasteful chore of cleaning your home. 

New startup Blueland is giving you both a cleaner home and a cleaner planet through a clever and cost-efficient system that involves dissolvable cleaning tablets, reusable bottles, and your own sink.

In the opening episode of the newest season of "Shark Tank," it successfully convinced investors how and why its non-toxic cleaning tablets and sustainable packaging would change the way people clean — and after trying it ourselves, we're converts, too. 

Here's how Blueland works

Blueland's starter kit is called The Clean Essentials and costs $38. Blueland provides three sturdy bottles made from acrylic and all labeled for different uses: multi-surface, glass and mirror, and bathroom. It also includes a soap dispenser constructed with the same acrylic material. 

Then you have the tablets. There's one tablet for each purpose. The cleaning tablets make 20 ounces of solution each, while the soap tablet makes 9 ounces of solution. 

To make the cleaning solution, you fill the bottle up to the designated line with warm water, then drop the corresponding tablet in the bottle. Within seconds, it's ready to use, no shaking or stirring necessary. 

The ingredients in each Blueland cleaner and how they perform 

You can visit The Clean Essentials product page for a detailed ingredient list for each cleaner. The key highlights are that all the products are free from volatile organic compounds (VOCs), known particularly to harm pregnant or nursing women and children, and anything on the Environmental Working Group's restricted list.

They're also free from traditional disinfecting ingredients such as chlorine bleach. All the ingredients are natural or naturally derived, so the cleaners are hypoallergenic, and they're pet-safe and cruelty-free. 

Such stringent requirements are a product partly of the times, as more shoppers demand cleaner labels, and partly of cofounder Sarah Paiji Yoo's personal stake in the game. As a new mother, she became hyper-aware of all the products that came in contact with her baby, from microplastics contaminating water supplies to chemical-laden air pollutants like VOCs. Blueland is the carefully formulated result of such concerns. 

I tested the cleaners in my own home and found them to be effective and easy to use. Each one except for the glass and mirror cleaner is scented, but with none of the overpowering or harsh scents I've come to expect from household cleaners. 

My bathroom, in particular, is prone to dust and grime buildup, but the Blueland Bathroom Cleaner quickly and effectively removed stubborn (or what I thought were stubborn) stains in my tub and sink. Meanwhile, theHand Soap foamed up well and made my hands feel soft with each wash. TheGlass and Mirror Cleaneris probably the weakest product of the four products in the set — it left my mirror slightly streaky. 

How Blueland reduces waste and saves you money and space

The most obvious way Blueland is more environmentally friendly is the design of its cleaning products. Instead of throwing out a plastic bottle every time you're done with the cleaner, you can use your Blueland bottles over and over again. This system also takes advantage of the water you're already using in your home. In addition, every part of its packaging is recyclable, and the tablet wrappers are compostable and biodegradable. 

Ultimately, cleaning with Blueland saves more than the planet, making it a superior product all around. The tablet refills take up a fraction of the space in your cabinets of traditional cleaning products, and they're more affordable. Each refill costs only $2, while traditional competitors cost $3 to $5 for the same amount of cleaner. 

The bottom line

Blueland's cleaning products are innovative, sustainable, effective, and affordable. All these benefits make us question why all household cleaners — and many other types of consumer products — aren't made this way. You have little to sacrifice by trying Blueland, but much to gain. 

Shop The Clean Essentials for $38 at Blueland

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• Mark Cuban says there's "no chance" that bitcoin can become a reliable currency.
• The most popular cryptocurrency is "too difficult to use, too easy to hack, way too easy to lose, too hard to understand, too hard to assess a value," the Shark Tank star and billionaire owner of the Dallas Mavericks said in an email to Forbes.
• Cuban added that given the raft of rival cryptocurrencies available, it's "too much work for people to know why BTC over everything else."
• View Business Insider's homepage for more stories.

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Mark Cuban says there's "no chance" that bitcoin can become a reliable currency.

"Not because it can't work technically," the Shark Tank star and owner of the Dallas Mavericks said in an email to Forbes. "But rather because it's too difficult to use, too easy to hack, way too easy to lose, too hard to understand, too hard to assess a value."

Given the raft of rival cryptocurrencies available, Cuban said, it's also "too much work for people to know why BTC over everything else."

The billionaire has experience in commercializing new technologies. He made his fortune by building Broadcast.com — a pioneer in video-streaming technology — then selling it to Yahoo! in a $5.7 billion stock deal in 1999.

Cuban compared bitcoin to baseball cards, comic books, and artwork in a Wired video in September, arguing the cryptocurrency has no intrinsic value and is "only worth what somebody will pay for it." He added that he'd "rather have bananas, I can eat bananas."

The price of bitcoin has plunged from about $12,000 in August to below $7,250 at the time of writing.

Join the conversation about this story »

NOW WATCH: A big-money investor in juggernauts like Facebook and Netflix breaks down the '3rd wave' firms that are leading the next round of tech disruption

• Matt Higgins, a "Shark Tank" investor and vice chairman of the Miami Dolphins, leveraged his entrepreneurial spirit to overcome the financial challenges he experienced early on in life.
• Now he pays it forward by bestowing life-changing investments on entrepreneurs who demonstrate that same passion.
• He dropped out of high school knowing that a high score on his GED would allow him to expedite his entrance into college.
• Higgins shared the three specific criteria he looks for when making a deal.
• Click here for more BI Prime stories.

Matt Higgins, a "Shark Tank" investor and vice chairman of the Miami Dolphins, started at square one. 

"I grew up dirt poor — no other way to describe it," he said during a recent appearance on the "Millennial Investing" podcast. "I was born to a single mom in Queens, NY, and we just struggled a lot."

But a lack of resources wasn't enough to deter Higgins — and his entrepreneurial instincts started to kick in. 

He started selling anything he could get his hands on on New York City's streets. Flowers and handbags were commonly churned as an adolescent. 

Still, Higgins' dire situation wasn't getting much better. His mother's health was deteriorating, and his job at McDonald's scrapping gum off the underside of chairs wasn't bringing in enough income to make ends meet. He knew he had to act fast.

Higgins figured out that if he could earn a high enough score on his GED, he would be able to get into college — a path to a higher income — a full two years before he was scheduled to graduate. So at 16 years old, he made the decision to drop out.

"It was the first time I took a I took a very unconventional path that everybody told me was crazy," he said. "Dropping out of high school was probably the single most important decision I made to send my career on its trajectory."

By no means is Higgins advocating for students to start dropping out of high school. Given his pressing circumstances, it was a gamble he viewed as worth taking — and it paid off. He was able to enter college shortly thereafter and received the education that would change his life forever.

Today, Higgins boasts an estimated net worth of $150 million. 

Higgins' dealmaking criteria

Higgins managed to hustle his way through life in a scrappy and unconventional manner until he eventually made it work. Unrelenting grit and determination were paramount throughout his journey — and he looks for many of the same attributes when he sizes up an entrepreneur on ABC's "Shark Tank."

For the uninitiated, "Shark Tank" features an array of entrepreneurs who make business pitches to a panel of five investors — or sharks — who decide whether or not to invest in their companies.

To Higgins, the decision whether to invest in a business comes down to three criteria.

1. Scalability

"No. 1: Is it a big enough business?" he said. "Is it scalable? How large is the total addressable market?"

Higgins' first dealmaking criterion echoes an integral portion of a competitive-advantage calculation touted by Columbia Business School professor Bruce Greenwald. Without an ability to scale, a company has a low likelihood of garnering a foothold in a competitive landscape.

"I ask myself when deciding whether I want to back a deal: Is this really worth my time?" he said. "Because small ideas and big ideas take almost the same amount of energy."

The opportunity cost of Higgins' time is something that he pays close attention to. If he chooses to invest, he wants to make sure he's not sacrificing his time for an idea that can't grow. 

2. Early traction

"Are there signs or indications of early traction — whether the business or if it's prerevenue or hasn't launched — of the fundamental behavior you're trying to tap into?" he said. "Demonstrate that there's traction."

Higgins provides an example of an entrepreneur that made a compelling case for a drone-racing league (where drone operators competitively race remote-controlled aircraft around a series of obstacles). The entrepreneur came prepared with a series of PowerPoint slides that demonstrated how drone racing was materially expanding throughout the world. It showcased exactly the type of traction that Higgins was looking for.

"I want to see the ramp-up," he said. "I want to see — however you define 'traction' — mind share or in revenue or viewers." 

3. Voracious tenacity

"I prefer to back people who God put them on this earth to make this company," he said. "You were born to do this. You were destined to do this — and only you could do it." 

Higgins is looking for entrepreneurs with an undying passion for their craft or company, but he also needs them to be self-aware.

"Then I'm assessing whether or not the entrepreneur has the unique blend of confidence and humility to go the distance," he said. "Are they confident enough to recognize that they're heading in the wrong direction and the humility to do something about it?"

If you can demonstrate those three things, Higgins said, "then I'm interested."

SEE ALSO: A self-taught coder turned hedge fund manager explains why traders should be positioning for a Trump re-election — and lays out a big bet he's making on healthcare

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NOW WATCH: A big-money investor in juggernauts like Facebook and Netflix breaks down the '3rd wave' firms that are leading the next round of tech disruption

• We love watching "Shark Tank" because it gives us a preview of the startups and products that have the most potential to make it big.
• As these 9 products underscore, the show's contestants don't necessarily need to secure a deal from the investors in order to go on to succeed. 
• Notable examples of "Shark Tank" rejects that became very successful include home security company DoorBot (now known as Ring) and protein breakfast brand Kodiak Cakes. 

Throughout its 11 seasons, the show "Shark Tank" has averaged two to nine million viewers. It's the biggest public platform that an entrepreneur could hope for, and a 10-minute pitch on the show can translate to huge sales.

Household names like the Scrub Daddy and Tipsy Elves all got their start after successfully striking deals on the show, but even companies that walked away without securing an investment have done as well as — if not better than —companies that did. 

The founders of these companies took their "Shark Tank" rejections in stride, using them as learning lessons to make millions in sales. Money from the judges would've been nice, but it turns out the national exposure can be just as valuable. 

Check out the 9 companies that you'll be surprised didn't get deals on "Shark Tank" 

The Bouqs Co.

Shop flower bouquets at The Bouqs Co.

Online flower delivery service The Bouqs Co. left the Tank in 2014 without an investment, but Robert Herjavec kept them in mind three years later when he was planning the flowers for his wedding. Herjavec eventually ended up investing after getting a firsthand glimpse into the process behind creating the beautiful arrangements. Co-founder and CEO John Tabis said that there were several days in 2017 when the company sold $1 million in flowers in a day. It's now valued at $43.1 million. 

Ring

Ring Wi-Fi Enabled Video Doorbell in Satin Nickel, $99.99, available at Amazon

This smart video doorbell gives homeowners peace of mind about who's at their door, whether they're at home or not. When Ring founder Jamie Siminoff appeared on the show, he valued his company, then called DoorBot, at $7 million.

Since then, it's counted prominent investors like Kleiner Perkins Caufield Byers, Qualcomm Ventures, Goldman Sachs, and Richard Branson among its supporters. Most recently, Amazon bought Ring in a deal worth over $1 billion, a testament to its versatile capabilities beyond home security.

Kodiak Cakes

Kodiak Cakes Power Cakes Pancake, Flapjack and Waffle Mix (3-Pack), $16.50, available at Amazon

Kodiak Cakes Power Cakes Unleashed Flapjack On the Go Baking Mix (12-Count), $24.38, available at Amazon

The co-founder and COO of Kodiak Cakes, a natural food brand that makes whole grain, protein-rich breakfast options, went on the show seeking a $500,000 investment for 10% of the business. Though the Sharks all liked the taste and nutritional benefits of these pancake mixes, none of them agreed with the valuation. 

Now, it's the fastest-growing pancake mix brand in the US, growing 80% year-on-year and approaching $100 million in revenue. 

Nerdwax

Nerdwax, $10.99, available at Amazon

Glasses that are always sliding off your nose are an annoying distraction, but according to the "Shark Tank" judges, not annoying enough to justify the cost of $10 per tube of Nerdwax. The natural, non-irritating wax can be applied directly to the nosepads of your glasses to help them stay up and now has thousands of mostly favorable reviews on Amazon. 

Before appearing on the show, the founders say their sales were $136,000, but glasses-wearers across the country who watched the show loved the concept and helped bring sales to $1 million. 

The Lip Bar

Shop The Lip Bar lipsticks at Target

Former Wall Street executive Melissa Butler sought to create an affordable, vegan-friendly, and cruelty-free makeup brand that showcased more diverse imagery than the rest of the current beauty industry. In an interview with Rolling Out, she said she saw the harsh "Shark Tank" rejection more as a "spring forward" because it made her realize that she needed to focus more on an audience that understood the problem she was solving.

Actress Taraji P. Henson wore The Lip Bar lipstick to the 2018 Oscars ceremony, and the products are now available in 44 Target stores nationwide.

Xero Shoes

Shop Xero Shoes on Amazon

After constantly getting injured while running, cofounder Steven Sashen switched to barefoot running and loved the effects, so he created a thin running sandal. He and his wife Lena Phoenix ultimately turned down the $400,000 for 50% equity offer from Kevin O'Leary for Xero Shoes.

Though they didn't find a celebrity investor, they did find plenty of other supporters among the public and have raised $1 million through crowdfunding. 

MealEnders

MealEnders Signaling Lozenges (25-count Pouch), $30.99, available at Amazon

The idea of MealEnders, a two-layered candy lozenge meant to prevent overeating, intrigued the judges, but some did not like the taste. Others doubted its expensive marketing strategy. However, it still caught the attention of plenty of viewers who wanted a little help with their willpower. 

When the episode aired in early 2017, the company had sales of a modest $1.2 million. One short year later, sales were at $5 million. 

Eco Nuts

Eco Nuts Organic Laundry Detergent, $10.99, available at Bed Bath & Beyond

Eco Nuts are dried berries that act as a natural laundry detergent, making them a great option for people sensitive to traditional detergents. Though the judges didn't like the pitch, the company has since grown to $1 million in annual sales. Beyond the original soap nuts, Eco Nuts now also sells other natural home cleaning products like surface sprays and floor cleaners. 

Copa Di Vino

Shop wine at Copa Di Vino

Copa Di Vino founder James Martin walked away from Sharks' offers not just once, but twice, and he's now notoriously known as one of the most disliked entrepreneurs on the show. Despite his arrogant attitude, you have to admit that his patented, single-serving wine containers are a fun idea. The appearances on the show led sales to skyrocket from $500,000 to more than $14 million. 

• LoveSync, a device that lets you silently indicate to your partner you're in the mood for sex, went viral in 2019 among internet users who mocked the device.
• The couple behind LoveSync, Ryan and Jenn Cmich, recently appeared on "Shark Tank" to ask the show's famed investors to fund their "sex button."
• All five investors declined to put money into LoveSync, criticizing the product's intent to replace communication and slamming the founders' lack of a persuasive business plan.
• Visit Business Insider's homepage for more stories.

The married couple who created a button to send a signal to your partner when you're in the mood for sex has faced a setback in their attempt to take their product to a bigger stage.

LoveSync gained the internet's attention — much of it satirical — after launching a crowdfunding campaign on Kickstarter in 2019. After raising more than $20,000 for their product, founders Ryan and Jenn Cmich appeared earlier this month on the reality-TV show "Shark Tank," where they were given the opportunity to present LoveSync to a panel of famed investors including Barbara Corcoran and Mark Cuban.

But the pitch for LoveSync didn't go as the Cmiches hoped. The married couple and cofounders asked for $100,000 from investors for a 10% stake in LoveSync. Their presentation — complete with two people acting out a scenario on stage in which LoveSync would be used — was met with skepticism from the investors.

"I'm having a hard time with the basic premise," investor Kevin O'Leary told the couple. "What about you two guys. Why dont you just talk to each other? 'Look, I want some sex — you in or you out?'"

The investors (called "sharks" on the show) echoed the negative reactions that many have had since first hearing about LoveSync. People online have ridiculed the device for its intent to replace sexual consent and communication, referring to it as a "central horniness server." Others drew similarities between LoveSync and the "nut button" meme that emerged online in 2016.

For their part, the Cmiches have defended their product in the face of mockery. The Cleveland couple, who have been married for more than 15 years, told Business Insider in early 2019 that skeptics were guilty of "black or white" thinking painting LoveSync in a poor light.

As explained in LoveSync's marketing material, the product is designed to eliminate the risk of getting rejected when you try to initiate sex. If you're in the mood to have sex with your partner, you press the bedside LoveSync button. If both partners tap their buttons within the same 15-minute "consensus window," both buttons will glow green to indicate both parties are in the mood. A pair of LoveSync buttons costs $57.

The Cmiches told Business Insider that LoveSync helps overcome the barrier between wanting to have sex and actually having sex, and that it's intended as a "tool" to improve communication between couples.

"We're not trying to stop people from talking. We're not trying to end the world," Ryan Cmich told Business Insider in 2019. "We're just trying to introduce a fun little dynamic to relationships."

All five investors on "Shark Tank" declined to put any money at all into LoveSync. The investors also criticized the couple for having a lack of a business plan for where LoveSync was heading beyond its successful Kickstarter. After the episode aired, "Shark Tank" investor Daymond John called out the couple on Twitter for failing to communicate their idea and failing to listen to criticism from the panel.

"Here's the real problem with your business plan: It's Ryan," Barbara Corcoran told the couple. "You're so in love with your idea that you're tripping over yourself to express your love again and again, and you really haven't adequately answered any objection that has been raised here."

In the moments backstage after they were dismissed, the Cmiches said they failed to adequately express their ideas for LoveSync.

"We are so excited about this product and this technology and all the ideas that we have for it that I think we let that get the best of us," Jenn Cmich said on the show. "We weren't effective enough in communicating the plan that we actually have to do that."

Nevertheless, the couple has highly publicized their failed "Shark Tank" appearance across their website, social-media platforms, and in a request to Business Insider for coverage and another interview.

SEE ALSO: Jake Paul says his controversial influencer squad Team 10 would be lost without him: 'I'm the special secret sauce'

Join the conversation about this story »

NOW WATCH: Most maps of Louisiana aren't entirely right. Here's what the state really looks like.

• The Oracles is a networking group of the world's most prominent entrepreneurs and CEOs. 
• They understand that it's easy to feel inundated with money advice regarding how much you should be making, where you should be saving it, and how you should be investing it.
• While there is a lot of good financial advice available, there are also common misconceptions about how you should handle your money, especially as a business owner or entrepreneur. 
• While investing in the stock market may pay off after 40 years, they recommend investing in yourself now, by learning a skill you can monetize.
• "If you're always sharpening new skills, you'll make incrementally more money ... you can't save your way to wealth, but you can educate yourself there."
• Visit Business Insider's homepage for more stories.

There's so much money advice out there that it can be difficult to differentiate the good ones from the bad ones.

To save you some trouble, we asked nine financially savvy business owners and advisors in The Oracles to share the biggest money myths that can stunt your financial success:

SEE ALSO: Gary Vaynerchuk and 8 other executives reveal their secrets for building a successful business while living a life you love

SEE ALSO: The biggest mistakes that ruin a first impression, according to Jay Leno and 8 other millionaires

1. To make money, you have to worry about money

The more time I spend thinking about money, the less time I have to think of the next great idea that can make money. Overthinking always limits creativity.

Instead, I just trust my gut. When something doesn't feel right, it's usually for a good reason, even if I can't put my finger on why. Your gut is a collection of past experiences — and mine has never steered me wrong!

— Barbara Corcoran, founder of The Corcoran Group, podcast host of "Business Unusual," and shark on "Shark Tank."

2. Stick to the status quo if you want to get rich

Don't be romantic about how you make money. Whether you're an entrepreneur or an employee, your current revenue stream isn't necessarily how you'll make money in the future.

When you climb the ranks, it's easy to lose creativity and that desire to change the status quo — until you're replaced by someone who still has those things. Never let money make you comfortable. Always be innovating and thinking ahead.

— Gary Vaynerchuk, founder and CEO of VaynerX, five-time New York Times bestselling author of "Crushing It!"

3. Save your pennies and watch the dollars grow

Many people will tell you to invest in the stock market and let compound interest turn your paychecks into millions. The problem with that advice is that you have to work for 40 years.

Instead, invest in yourself by learning a skill you can monetize. If you're always sharpening new skills, you'll make incrementally more money. That's real compound interest. You can't save your way to wealth, but you can educate yourself there.

— James Sixsmith, founder and CEO of Trade Context, cofounder of SpeedUpTrader, and former professional hockey player. Follow him on Instagram and LinkedIn.

4. Financial success relies on past performance

Companies like Blockbuster, Pets.com, and MySpace were household names — until they crashed. In contrast, many that Wall Street dismisses outperform the market significantly.

The right investments are the ones that genuinely interest you, whether that's Bitcoin, stocks, or any other asset classes. If you talk to people, read the news and actually use the products you invest in, you'll have a better understanding of where your investments should go than the "experts" do.

— Dan Schatt, cofounder and CEO of Cred. Follow him on LinkedIn.

5. Prioritize security over market volatility

An annuity salesperson convinced my client to sell his Tesla stock because of market volatility, so he gave up control and liquidity in exchange for "security."

But when he lost his job, he had to pay an early withdrawal fee to access his money. His $500,000 annuity was only worth $300,000, compared to the $3.2 million his stock would be worth today.

The salesperson didn't disclose that he owned stock in the annuity and was working on commission. Always question others' interests and how they align with yours. Are they getting a commission, or do they only make money when you do?

— James Daily, founding partner of Daily Law Group. Follow him on LinkedIn.

6. Build a nest egg as soon as possible

The highest rate of return on your money is not in a house or savings account, where it will sit and get eaten by inflation. Invest in your primary asset: Yourself — and your business, if you own one.

This multiplies the abilities that create your income, so you can achieve financial independence. When your money is still, it's ill. When it's flowing, it's growing.

— Corrie Elieff, cofounder and chairman at YESA,and founder of Cardone Canada.

7. It takes money to make money

Don't let the idea of starting a business — or even a side hustle — intimidate you; the barrier to entry in business is lower than ever. Using tools like WordPress, PayPal, and social media, you can create a website, advertise with how-to content and accept payments for free.

As long as you know how to sell and you're solving other people's problems, all you need is a little creativity and willingness to take risks and outwork everyone else.

— Bedros Keuilian, founder of Fit Body Boot Camp. Follow him on Instagram, Facebook, and YouTube.

8. Having a 'normal' routine will make you richer

I do my best thinking between midnight and 3 a.m., when I'm free from dinging email and text alerts. Figure out when your mind works best, capitalize on it, and don't feel bad if it's not during the standard 9 a.m. to 5 p.m.

The world's wealthiest people didn't become successful because they were coloring inside the lines or doing what everyone thinks they're "supposed" to do.

— Michelle Luchese, cofounder and chief product officer of wedding band company Manly Bands. Follow her on LinkedIn.

9. Real wealth means having an enormous bank account

Real wealth isn't just about having a lot of cold, hard cash. It's also proportionate to your happiness, health, and overall quality of life.

So don't just focus on what's in your bank account. Set aside time to take care of your mind and body. Stick to doing things you're passionate about. Surround yourself with positive energy. When you do all these things, money and success will eventually follow.

— David Hoffmann, cofounder and CEO of GlobalTQM, a division of the international trade company Global Regency. Follow him on LinkedIn.

The Oracles is a mastermind group of the world's leading entrepreneurs who share their success strategies to help others grow their businesses and build better lives. For more, follow The Oracles on Facebook, Twitter, and LinkedIn.

• Jamie and Brian Ratner are the husband and wife team behind the parenting and family-deals website CertifiKid.com, which they started 10 years ago with just $5,000 in savings and zero business experience.
• In an interview with the Bigger Pockets Business Podcast, the Ratners explained how they were able to achieve profitability within their first their months. They have since made more than $40 million in total sales.
• Last year, they were featured on "Shark Tank," where they landed a deal from Kevin O'Leary that was one the top five deals he has done on the show. It has enabled the Ratners to take their business nationwide.
• Visit BI Prime for more stories.

Jamie Ratner says she thought of the idea for her business on a family holiday trip a little over 10 years ago.

She and her husband Brian were avid users of online deal sites like Groupon, but the available options weren't catering to their needs and interests as new parents, especially in their local market of Washington, DC.

In an interview with the Bigger Pockets Business Podcast, the Ratners explained how they launched the family-deals website CertifiKid.com and were able to achieve profitability within the first three months.

The Ratners started the site 10 years ago with just $5,000 in savings and zero business experience, and say it has since made more than $40 million in total sales.

Last year, they were featured on the popular pitch show "Shark Tank," where they landed a deal from judge Kevin O'Leary (known sarcastically as Mr. Wonderful, due to his brusque style). In January, the Ratners announced that CertifiKid was going national.

Starting with a phone book and shoe leather

Jamie already had a sizable online following by blogging about discount deals. Plus, she and Brian had a dedicated savings account set aside expressly for the purpose of starting their own business.

With an initial investment of $5,000 from those savings, the Ratners hired a web developer to build out a website, and they set a goal of reaching 1,000 subscribers in the first month.

They sourced their initial business partnerships from their local phone book, and Jamie hit the streets to connect with customers in their home market.

"I did it by literally standing out on the corner and finding every mom who walked by with a stroller and handing her a flyer that I'd made, and telling her about it," Jamie said. "It was very grassroots, and it worked."

"We were profitable after three months," Brian added. "We earned our first million dollars in sales within 18 months of that start date. We are now doing about $5 million per year in sales."

Today, CertifiKid boasts an audience reach of over a million people, and sends daily deals to roughly 500,000 subscribers via email, fueled in part by their appearance on"Shark Tank."

Reaching a primetime national audience

Competition in the deals space had grown more crowded since CertifiKid started, and the Ratners were betting on a big boost from the exposure of being featured on the "Shark Tank."

"It's easier to get into Harvard than it is to get on 'Shark Tank,'" Brian said. "There's 30,000 applications, and they only put 100 on, they only tape 100, and then like 50 get aired."

"We thought that this could be a once-in-a-lifetime opportunity for the business, and that if we have the chance to do it, we should go for it and do it. And we did," he added.

A typical Shark Tank valuation comes in between $500,000 and $1 million, but the Ratners were looking for a deal that would value their business at $7.5 million.

"Unlike a lot of other businesses that have been on that show, we had been in business for nine years, we had tens of millions of dollars in sales, we were highly profitable," Brian said. "We had to obviously get that across to the Sharks and explain why we wanted that partnership at this phase of the business."

Going toe to toe with Mr. Wonderful

Jamie is the primary owner and CEO of CertifiKid, while Brian is still a full-time lawyer who serves as president of the company during his spare time. But Brian's professional skill would come in handy on the big stage.

The Ratners told the Bigger Pockets podcast they decided their best bet was to target "Shark Tank" judge Kevin O'Leary, known as "Mr. Wonderful." In preparation for their appearance, Jamie had Brian watch all the back episodes of the show to formulate his negotiating strategy.

"I had a sense that he respects the sparring, because remember, this is a television show after all. So my sense was he respected people that would negotiate hard," Brian said.

Brian managed to convince O'Leary to invest the $600,000 they were asking for, although he ended up having to trade more equity than originally planned. Still, the deal was one of the top five investments O'Leary has made in the 10 seasons of the show.

"It looked like I was getting blood out of a stone at the end," Brian said. "I've never fought so hard for so little, but it showed, that we believed in our business and what we were doing."

Overall, Jamie says the experience has been a good one for their business, and that their efforts are seeing results, like enabling their business to scale up to a national reach.

"I think it's been great on a multitude of levels, from getting new businesses, to getting subscribers, to PR opportunities," she said.

"This is going to be a game changer for the business," she added.

SEE ALSO: A couple who have stayed together through 6 company launches share their secrets for balancing serial entrepreneurship with a happy marriage

Join the conversation about this story »

NOW WATCH: The rise and fall of Pan Am

• Matt Higgins, a "Shark Tank" investor and the CEO of RSE Ventures, eschewed conventional wisdom to pull himself out of poverty at an early age.
• His success snowballed through the strict adherence of time-tested principles and an unconventional mindset.
• Today, Higgins is passing along his business acumen to others at Harvard Business School, where he coteaches Moving Beyond Direct to Consumer with Len Schlesinger. 
• Higgins' net worth is about $150 million.
• Click here for more BI Prime stories.

Matt Higgins, a "Shark Tank" investor and the CEO of RSE Ventures, lives a life today that's diametrically opposed to his upbringing.

"We literally had no money," he said in an exclusive interview with Business Insider. "When you grow up poor, you live a life of shame. You don't want to share what is really happening in your life; you're actually trying to disguise it."

In the early years, to help support his single mother, Higgins sold flowers on New York City street corners, worked graveyard shifts at delis, and even scraped gum off the undersides of chairs at McDonald's for $3.75 an hour — anything to make ends meet.

Though his circumstances were bleak, Higgins found himself developing a keen business sense during this time — and he'd soon put that knowledge into practice.

At 16, he dropped out of high school, took the GED test, and started college two years earlier than he was scheduled to.

That first unconventional maneuver doubled Higgins' salary overnight — and paved the way for his future success. Eventually, he parlayed this unorthodox way of thinking into a $150 million net worth.

Today, Higgins is passing on his business acumen at Harvard Business School, where he coteaches Moving Beyond Direct to Consumer with Len Schlesinger. 

Here are four of investment pillars that Higgins has leveraged to find success throughout his life.

1. Opportunity arrives before evidence

"I liken it to lightning and thunder," he said. "Lightning travels, and the speed of light is thousands of times faster than the speed of sound," Higgins said. "So you see that flash of light, that hint of an epiphany, and then it's gone. But something inside you tells you that the opportunity is real. Thunder arrives — makes itself known, unmistakenly — but everybody else heard it too, and by that point, it's too late to act." 

"Just make little decisions to act on opportunity before evidence," he added. "The universe gives us the ability to cultivate pattern recognition."

Higgins said: "We all have a dataset that we sit in the stream of, and we watch data go by — and through that watching and learning, we develop pattern recognition, which then enables us to act on signals earlier than other people because we've seen it play out before."

2. When you don't know, do nothing

"Hit pause for a bit," he said. "Mark Cuban says it best: 'When you don't know what's going on in the markets, do nothing.'"

He added: "I think that's generally true for a period of time. You want to watch, learn, and listen."

3. Challenge conventional wisdom

"The way you find them is you look for the groupthink," he said, referring to investments. "Anywhere you have unchallenged groupthink and conventional wisdom, there is a sleepy TAM looking to be disrupted."

Higgins added: "I sit around and just meditate on that topic."

4. Aim high

"Small opportunities and big opportunities take almost the same amount of work, interestingly," he said. "You get tremendous economies of scale going after bigger opportunities than you do going after small opportunities because the problems are the same.

"The same amount of effort is going into the same type of problems — only slightly more amplified with the big project — but the return on the big project is exponential. And yet, they almost took the same amount of time and the same amount of headache.

"We tend to erect barriers to our own progression. We say: 'I'm not ready to be a $100 million company because first I need to be a $1 million, then a $5 million.'

"You're going to look back one day when you run that $100 million company and realize, 'Oh, those were generally the same problems I was dealing with it was $5 million.'" 

SEE ALSO: 'Refinance your mortgage, and take the money, and buy some stocks': An investment chief overseeing $7 billion says he's all in on equities amid the mass coronavirus sell-off — and shares 5 stocks he just bought

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NOW WATCH: The rise and fall of Pan Am

If social distancing and self quarantine have you looking for something to watch, you may want to join the nearly 5 million viewers who tune in to the hit TV show "Shark Tank."

Season 11 of the popular series is nearing its home stretch, so we've rounded up stories covering past participants that show key lessons and advice from the successful businesses that have appeared on the ABC show.

Check out these stories to hear how they prepared their pitches, negotiated their deals, and used the experience in the spotlight to their advantage.

Subscribe to BI Prime to read them all.

Meet one of the guest judges:Katrina Lake explains how a Harvard MBA fit into her decision to become an entrepreneur — and how she founded a personal-styling company worth $1.9 billion

Landing one of  Kevin "Mr. Wonderful" O'Leary's top five deals of all time:Married founders reveal the strategy that got them on 'Shark Tank' — and how their winning deal helped their startup expand nationwide

Raising funds after getting a "Yes":This 9-slide pitch deck helped a cookie startup that competed on 'Shark Tank' close a seed round while bringing in $1.4 million last year

See the deck used by a nutritious coffee drink startup:3 brothers used this deck to pitch their healthy energy drink on 'Shark Tank.' 8 months later, the company was worth $50 million.

Getting your head — and heart — ready for the spotlight:The founders of a cookie startup used a rehearsal trick from Beyoncé to conquer their nerves before going on 'Shark Tank' — and won $300,000 from Alex Rodriguez

Building a win out of a "No":Entrepreneurs who launched their $50 million company in a dorm room say the biggest benefits of going on 'Shark Tank' had nothing to do with money

Holding out for a bigger shark:A startup founder who built a mock set in his backyard to practice his 'Shark Tank' pitch ultimately turned down a Shark's offer — and Amazon later acquired his company for $1 billion

Turning adversity to your advantage:An entrepreneur who landed a $250,000 offer on 'Shark Tank' was thrilled when a Shark said her company 'sucks' and questioned its valuation

Entering the Tank for more than just money:People think startup founders go on 'Shark Tank' for big-name investors and a pile of cash, but entrepreneurs who have done it say that's not really the point

Knowing what is the right deal for your business:A startup founder who turned down $100,000 for his 3-month-old startup on 'Shark Tank' says he doesn't regret it one bit

From drawing a mental blank to landing a deal:A 'Shark Tank' entrepreneur who panicked and forgot her own name during rehearsals stayed up all night practicing her pitch for 12 hours, and ultimately landed a $250,000 offer

Using the "memory palace" method to nail your pitch:An entrepreneur who went on 'Shark Tank' to pitch his 3-month-old startup in front of a national audience relied on an unusual memory technique to avoid panicking and forgetting his script

Anticipating every curve ball:'Shark Tank' founders who were called 'sock cockroaches' on national TV prepared answers to about 300 questions before they even appeared on the show — and they landed a $200,000 deal

How to become impervious to distractions:Startup founders who landed a $55,000 deal on 'Shark Tank' rehearsed their pitch while running, dodging a hair dryer, and even punching each other in the face

When you almost miss the boat:'What the hell were we thinking?': Startup founders who landed a $55,000 deal on 'Shark Tank' nearly missed their big break

Making the case for why you are the right person:Startup founders who convinced 'Shark Tank' sharks like Mark Cuban to invest say too many entrepreneurs overlook a crucial element of a winning pitch

Remember that it's still a reality TV show:The 'Shark Tank' founders who were called 'sock cockroaches' on national TV before landing a $200,000 deal have become one of the show's biggest success stories

Know that your investors are your equals:The founders of a 'Shark Tank' success relied on a key piece of business-school advice to stay calm during the pitch that won them $100,000

When things start to feel a little too real:'Shark Tank' entrepreneurs who won $100,000 decided to audition the night before casting, waited 7 hours in line, and typed out their answers to every question ever asked on the show

Trusting your gut:When the founders of dating app Coffee Meets Bagel turned down Mark Cuban's $30 million offer on 'Shark Tank' 3 years ago, they got dozens of emails calling them 'crazy,' 'greedy,' and 'stupid' — but they still aren't sorry

Join the conversation about this story »

NOW WATCH: How networks treat the Democratic debates like reality TV

• Boho Camper Vans built Encore, a tiny home on wheels constructed on a 2019 Ford Transit 250.
• Encore holds an exterior shower and an interior kitchenette, couch, toilet, dining table, bed, and garage.
• The company was recently featured on the March 20 episode of "Shark Tank" where they agreed on a deal with Barbara Corcoran to the tune of $150,000 cash upfront and a $150,000 line of credit for a 10% stake.
• Visit Business Insider's homepage for more stories.

"Shark Tank"-approved Boho Camper Vans created Encore, a tiny home on wheels built on a 2019 Ford Transit 250 with a high roof.

The Encore camper van was converted for a customer named Melodie. She had recently retired and wanted a converted van to both relive the time she had spent several years ago driving around the East Coast in her Volkswagen bus and to have the ability to do charity work, according to Boho Camper Vans.

"We're just really enjoying working with customers because the clientele that lends itself to living in a camper van and living this lifestyle is pretty laid back," Boho Camper Vans partner Brett Ellenson told Business Insider. "It's a real community around the camper van lifestyle."

Boho Camper Vans was recently featured on "Shark Tank"'s March 20 episode as a "mobile real estate company." The company initially applied for the show as a "joke," founder and partner David Sodemann told Business Insider. However, that "joke" ended with Sodemann and Ellenson on the show with an offer from Barbara Corcoran to the tune of $150,000 cash upfront and a $150,000 line of credit for a 10% stake.

"We're over the moon," Sodemann told Business Insider. "The response we've gotten from the community in Phoenix [where the company is based] has been amazing."

Boho Camper Vans is comprised of two main businesses. Along with converting vans into campers, Boho has a rental fleet of seven vans for weekend warriors looking to take a trip. And while there has been a decrease in rental demands amid the coronavirus pandemic, the van converting component of the company is booked out until June, and this date will likely be pushed back even further with the influx in inquiries since its "Shark Tank" appearance.

Keep scrolling to see the inside of Encore, which the company says is represnativie of a typical van conversion it produces:

SEE ALSO: This $150,000 off-roading camper van built on a Mercedes-Benz Sprinter can stay off the grid for 7 days — see inside

Encore has a full-sized bed with the garage underneath it.

The bed is topped with an eight-inch memory foam mattress.

There are also cabinets above the bed for extra storage space.

The interior is filled with Aztec, agate, and southwest-inspired patterns.

There are LED lights around the van …

… which can be controlled with a dimmer switch.

Bathroom features include a portable toilet inside the van ...

… as well as an outdoor shower.

The sofa next to the toilet can seat two people.

The swivel table serves as a dining table. It can also be tucked away into the garage when it's not in use.

The kitchenette has a two-burner stove top with a sink and counter space for food preparation.

Extra work space in the kitchen comes in the form of a butcher block that can flip up to extend the counter space.

There’s also a 40-watt refrigerator integrated into the kitchenette.

Kitchenette storage includes a pantry that can be pulled out.

The window installation in Encore is custom.

Blackout curtains line the windows.

There’s also a roof fan onboard Encore.

The vinyl flooring and tile backsplash are both custom.

A "secret compartment" is also hidden in the van.

Encore's passenger seat can swivel back.

The camper falls under Boho's "tall deluxe" category with its standing room and improved solar and electrical systems that keeps the battery charged.

This allows the camper van to stay off-grid, even in overcast weather.

The solar system holds 300 watts.

There’s also a 3,000-watt inverter …

… which accompanies the 315-ampere hour battery.

Encore also comes with a 25-gallon water tank and a DC to DC isolator and charger.

There are also 110-volt alternating current (AC) outlets around the tiny home on wheels.

• Barbara Corcoran has been an investor on "Shark Tank" since the show's inaugural season.
• She has invested in many companies and is also a successful entrepreneur. She's worked through past recessions while building up her real estate company, The Corcoran group, which she sold in 2001 for about $66 million.
• Corcoran says to stay engaged with your team, draw down credit lines, and get creative.
• Click here for more BI Prime stories.

It's a scary time for small business owners. One month ago, COVID-19 was barely on anyone's radar and now, the biggest outbreak in the United States is happening in my hometown, New York City. When I leave my apartment for something as simple as food it takes hours of standing in line. Every nonessential business is closed down, and while it's the responsible decision to make, it has catastrophic consequences for small businesses and our entire economy. 

Small businesses aren't so small. There are about 30 million small businesses in the United States that employ half of working Americans. They're in small towns and in big cities, so everyone is affected. In the coming weeks, small business owners will be making impossibly tough decisions, like talking to their staff about cutting hours or being laid off.

Ultimately, we have to believe we're making these decisions in everyone's best interests. Here are a few things I've been doing with my team and Shark Tank businesses which may be helpful to you.

1. Stay fully engaged with your team

Everyone on my team is working at home but they're working harder than ever. Now is the time to keep your employees in the loop. We're scheduling daily and weekly meetings on Zoom, Slack, or Google Hangouts. Why? Because face to face is key to keep people connected, motivated and morale high. Take advantage of conferencing apps and use them to brainstorm with your team on what to focus on, what to do differently, and how to help one another.

2. Be honest with your employees

Clear communication from the boss is so important now. No one wants to reduce pay or lay people off but for many of us, it's our only option. You need to address the topic square between the eyes because it's the question on every employee's mind. Instead of firing people, I've encouraged many of my businesses to reduce pay evenly across the board. I'd rather temporarily reduce everyone's income by 25% than lose a third of my people. And, help is on the way — the $2 trillion stimulus package was approved, and most of it is directed to help small business owners. Emergency loans will be made available to keep your workers on payroll, so you should be on top of the details and share them with your employees and 1099 workers.

3. Get creative

You need to challenge everything that's worked before because only the most creative companies will survive. How can you do things differently? What can you offer your customer or client that you've never done before? The fact is everyone is still shopping and in need of services, but they have to be offered a good deal.

My Shark Tank companies are making me very proud right now. They continue to blow me away with their creativity and dogged efforts to reinvent themselves and change their business models:

• Cousins Maine Lobsterhas created take-home kits for people to make their own lobster rolls at home and is busy donating meals to hospital staff
• Grace & Lace is raising funds and donating protective masks from China to people and hospitals in need
• Nardo's Naturals Skincare donates Aloe Vera and packaging to help a local distillery produce hand sanitizer
• Pipsnacks is shipping their yummy popcorn to nonprofits and ERs across the country
• Boho Camper Vans is discounting their beautiful camper vans all of April for families to escape to the outdoors
• The Comfy brothers are keeping their customers comfy at home with free shipping and discounted prices
• Daisy Cakes, the most delicious cakes in America cook up a new cake flavor every week to keep people ordering

Everyone is thinking creatively on how to do more.

4. Draw down your credit line

If you have a credit line now is the time to draw it down and sock it away. Why? Interest rates on credit lines are cheap right now and if you wait until you need the money, the banks will pull the line. I know because I've had my credit lines pulled out from under me in the middle of every crisis.

Assess what your cash needs will be over the next 3-6 months if COVID-19 continues to rage on. With little business coming in, it's important to only draw on your credit line or spend any money when it's absolutely necessary. Take down your expenses to the bare essentials and only use the credit line cash if you have to.

5. Stay positive

However scary this is for all of us right now, it's important to remember we always come through. Every business is feeling the strain of COVID-19 so we're all in it together.

I can distinctly remember the dark days of building my little real estate business in New York City — the stock market crashed in 1987 and 2008, causing the housing crisis. Interest rates hit 18% and no one was buying real estate.

Even after 9/11, people wrote NYC off as a goner, but we came back, and we'll always come back. It's important to remember that. The businesses that succeeded after each crisis kept their teams tight, reinvented themselves, stayed positive, and were all pulled through by great leaders.

SEE ALSO: The CEO of Slack explains how a recession would make it much harder for it to hire the people it needs to sustain its growth and take on Microsoft

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• Boho Camper Vans built the "Houston" camper van on the chassis of a 2008 Ford E-350 XLT Super Duty Extended.
• The build later became the van that Boho Camper founders Brett Ellenson and David Sodemann took with them to their "Shark Tank" debut.
• The "Sharks" gave the camper van raving reviews as they climbed into Houston.
• The tiny home on wheels includes a bed, a kitchen, a multi-use outdoor table, storage units, and an outdoor shower.
• Visit Business Insider's homepage for more stories.

Boho Camper Vans created the "Houston" build on the chassis of a 2008 Ford E-350 and took the van to "Shark Tank" where it garnered rave reviews and an investment from Barbara Corcoran.

The company's founders Brett Ellenson and David Sodemann decided to apply for the show as a "joke" in May 2019, Sodemann told Business Insider. However, the joke quickly became a serious reality.

"As we were moving through the process, it started getting more serious, and we really started … honing in on [logistics like] if we were to get invested in what that would look like, how much of the company we would be willing to share or share equity with, and ultimately which type of partner we would want," Sodemann said.

Ellenson and Sodemann — who originally asked for $300,000 in exchange for a 10% stake in the company — walked away from the show with Barbara Corcoran's offer of $150,000 cash upfront and a $150,000 line of credit for a 10% stake.

Boho Camper Vans projects $800,000 in sales for 2020, and $1.9 million in sales for 2021, Ellenson told the "Sharks".

Keep scrolling to see the inside of Houston:

SEE ALSO: Barbara Corcoran invested in the company behind this RV conversion built in a Ford Transit van on 'Shark Tank' — see inside 'Encore'

The Ford van cost $15,000 used. Boho Camper Vans charged $29,000 for the final build.

Boho Camper Vans made an effort to make the inside of Houston look like an actual "tiny home," Ellenson told the "Sharks" during the show.

“I kinda love it, right?” Shark Lori Greiner said as she sat on the camper’s bed after stepping inside for the first time.

The camper van was purchased by a mechanical engineer from Houston, Texas who wanted a weekend warrior.

Houston sits on the chassis of a 2008 Ford E-350 XLT Super Duty Extended.

Using the extended series of the Ford van allowed for more bed and storage space.

The bed is 72 inches by 68 inches.

It’s also topped with a six-inch memory foam mattress.

The camper is powered by a 210-amp-hour battery and two 100-watt solar panels.

There’s also a 1,500-watt inverter onboard.

All of these work in tandem to power the vent fan, sink, outdoor shower, and lights inside the van.

The LED lights are also hooked up to a dimmer.

Houston's passenger seat can swivel back to face the interior, allowing for another seating option while lounging around in the van.

The interior is lined with wood-stained red cedar paneling.

Houston also has a 48-inch slide-out table that extends out the rear of the van.

The kitchen is topped with a butcher block top and has a sink and storage cabinets.

Water for the sink and outdoor shower is supplied via a 25-gallon water tank.

There's also a 45-quart cooler.

The curtains are blackout, ensuring privacy and a good night's sleep.

• In a time of heightened uncertainty, many startups are wondering if it's the right time to raise capital.
• "Shark Tank" judge and millionaire investor Kevin O'Leary said equity crowdfunding will take on an important role that venture capital can't fill right now. 
• Equity crowdfunding gives customers the opportunity to invest in a company they're already supporting.
• Click here for more BI Prime content.

In a time of heightened uncertainty, skyrocketing unemployment, and plummeting revenues, many startups are wondering if it's the right time to raise capital. 

According to Kevin O'Leary, great companies that are growing always need money. In a webinar with StartEngine CEO, Howard Marks, the "Shark Tank" judge said equity crowdfunding will have to pick up the baton from venture capital firms. 

"You can't even get a meeting with those guys right now," O'Leary said. "This is no different from what happened in 2007 and 2008 when Kickstarter and Indiegogo were born out of necessity." 

Marks said there's been an increase in investors on StartEngine since March 1, 2020. "It's completely the opposite with VCs," he said, comparing it to the rates of VC investments between 2001 and 2010, which took a hit during the dotcom bubble and Great Recession. "We're much more resilient as a funding mechanism than the VCs were." 

O'Leary gave three reasons now is the best time for startups to turn to equity crowdfunding.

It builds direct relationships with customers.

One advantage of crowdfunding is that it gets customers to back a company they already believe in. O'Leary used a company he owns stake in to make his case. 

Love Pop Cards makes laser-cut three-dimensional cards and lost 50% of sales in 14 days. So the company shifted to making paper flower bouquets for Mother's Day. "That was designed in 24 hours and we're doing $2 million in sales every 48 hours," he said. 

The company sells direct to consumers, rather than through Amazon or another third-party seller. That allows Love Pop Cards to collect customer data and form direct relationships. "Every single one of these is sold direct," he said. "It's no different for investing."  

Getting VC investment is a larger concentrated fund, rather than several smaller funds from individuals with a connection to your brand. 

"I think the new normal for companies like this one is to know their investor, to have a direct relationship with their own constituents. The people who buy these flowers should own a piece of the company," he said. 

Create value within your customer base.

Crowdfunding is also a chance to use your social media to build your business, O'Leary said. Your user base and followers often become your first advocates and investors. "That's to me the most appealing aspect of this," he said. 

Having your customers double as equity partners creates a long-term bond that could generate more revenue. "It's so unique, that model just doesn't exist anywhere else," he said. 

That purchasing power from shareholders adds value to equity crowdfunding. "There's a market price to debt or equity that is more expensive than it was nine weeks ago," he said. "The one thing that nobody's priced into the market yet is what's the value of selling equity to customers."

High-growth is key.

To return to O'Leary's initial point: a company has to be growing for equity crowdfunding to work best. "Sales is everything," he said. Those sales tell you what customers want and prove to investors that they want to buy more.

"The best time to go into crowdfunding is after you've proven the demand of your product and you can show the merit of your product to others that want to invest in it," he said. 

Though it's riskier, concept companies without sales can still find their own success. "If the concept is so different and unique and compelling, you can still use the crowd to fund it, you just have to reflect that in your evaluation," he said. 

Since founders maintain control with crowdfunding, they have an obligation to give their investors a good deal. "You want them to come at your second, third, and fourth rounds," he said. 

SEE ALSO: The founders of a beverage startup explain the crisis checklist they're using to reevaluate 2020 goals and navigate their business post-coronavirus

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• The disruption from the coronavirus pandemic is forcing many businesses to rethink their strategies.
• "Shark Tank" judge and investor Barbara Corcoran praised several of her winning businesses for how they were handling the turbulent shift.
• The founders of Cousins Maine Lobster, Boho Camper Vans, Nardo's Naturals, and The Comfy told Business Insider about their pandemic pivots and advice for other entrepreneurs looking to follow their leads.
• Visit BI Prime for more stories.

To land a deal on the TV pitch show "Shark Tank," you have to think on your feet.

Agility and adaptability are key characteristics of the businesses that catch the eye of judge and investor Barbara Corcoran.

In a LinkedIn post, Corcoran highlighted the quick response that her entrepreneurial partners have executed in the face of the disruption caused by the COVID-19 pandemic.

"My Shark Tank companies are making me very proud right now," she said. "They continue to blow me away with their creativity and dogged efforts to reinvent themselves and change their business models."

Business Insider reached out to those founders and asked them to share their pandemic pivot strategies and advice for other entrepreneurs looking to follow their leads.

Their responses have been lightly edited for length.

SEE ALSO: SWIMMING WITH SHARKS: Founders who made it on 'Shark Tank' reveal winning pitches, tips to negotiate money-making deals, and how they've used the spotlight to their advantage

Cousins Maine Lobster fast-tracked a mobile-ordering app and take-home meal kits.

Jim Tselikis and Sabin Lomac of Cousins Maine Lobster told Business Insider:

The biggest thing we did to pivot with our business was the introduction of our Cousins Maine Lobster mobile app, and that has been huge for our business.

We made sure that we expedited this to get it out to everybody because what we were finding is that the app was a natural piece that made customers feel safe and comfortable ordering.

Obviously, no one could have foreseen COVID or how extreme it was coming, but as always we try to prepare for our business to be ahead of the curve, to be better, to be ready for the next thing, and stay out in the forefront.

Innately you have something in your business that can adapt, and when these times come, you just need to really home in and focus on saying what can we do — small or big — to help our business last and to help get to the consumer.

Nardo's Naturals Skincare launched hand sanitizer and dipped into a rainy-day fund.

Danny Mastronardo of Nardo's Naturals Skincare told Business Insider:

Perseverance has been one of the keys to our success. And in recent weeks, that has meant adapting with the times. We now provide a CDC-approved hand sanitizer.

Because we operate in our home state of Florida, we were able to quickly turn around a product that is not only safe for our consumers, but the sales allowed us to donate thousands of sanitizers to local hospitals and first responders. Giving back to, and being in touch with, our community is an important part of how we choose to run our business.

From a financial standpoint, we have always erred on the side of caution, ensuring that we can cover overhead for a period of time in the event of any situation. Even if the contribution is minimal, we find that consistency is the key to setting aside a "rainy-day fund," and over time the growth will be vital to any emergency expenses that may arise.

Boho Camper Vans put plans on hold to focus on the core mission.

David Sodemann of Boho Camper Vans told Business Insider:

We are in essence, a true social-distancing travel option. It's a way to take the safety of home on the road. Our mission as a company is to get as many people on the road as possible, and the effects of COVID-19 are pushing us to accomplish this faster.

COVID-19 has made us realize the importance of our local community and Boho's place in it. During the entire month of May, Boho donated rental trips to healthcare workers in Phoenix to provide rest and refuge from their high-stress daily grind.

A few tips that have paid off are as follows:

1) Treat your employees like family. Never has our staff felt more important to the future of Boho than it has during this crisis.

2) Focus on what you do best. At Boho, we had to pause on certain opportunities to ensure we preserved what got us to where we are: building high quality vans at an affordable price.

3) Have compassion. A single kind gesture can have a ripple effect on those around you and the community at whole.

The Comfy invested in the highest return on investment: advertising and e-commerce.

Brian and Michael Speciale of The Comfy told Business Insider:

An important lesson we've learned is that business never goes the way you think it will —there are always obstacles flying at you from every direction, with the coronavirus being just the latest.

So, when the quarantine hit and all of the retailers that were selling their big wearable blankets suddenly shut down, we immediately searched for the opportunity hiding in all the chaos. Instead of crying about losing the retail side of their operation, we went to work on what we could still control—our Amazon and DTC business.

Well, it turns out The Comfy is the perfect stuck-inside-the-house product, and that combined with upping our advertising spend has led to some staggering results: Our revenue is up fifteen times over what it was a year ago.

We think it's another lesson in finding opportunity where you might not think it exists, and then — most importantly — taking action.

• Ming Zhao is CEO and cofounder of PROVEN, which uses AI to develop personalized skin care products. 
• The San Francisco startup was in the spotlight recently after it was featured on Shark Tank, the popular business reality TV show, starring investor Mark Cuban.
• The 'sharks' on the show ultimately didn't invest, but she says just being on the show provided good exposure for the company, which has seen consistent growth.

• Zhao shares how the startup made it to the hot television program, and how her team prepared personalized skin care products for Mark Cuban and the other 'sharks.'

• "That demonstration really brought to life for the Sharks what personalized skin care is, and why it's so beneficial for each person," she told Business Insider.

• Click here for more BI Prime stories.

Artificial intelligence is now used for a wide range of business operations and functions, from tech support to sales projections.

Entrepreneurs Ming Zhao and Amy Yuan, founders of PROVEN, came up with a more personal, unconventional use for AI: skin care. The startup scored a win recently when Zhao was featured in Shark Tank, the popular business reality TV show, featuring investor Mark Cuban.

"It was incredibly rewarding for our small team Zhao told Business Insider.  "Many of our team members were fans of Shark Tank. So to see something that they've been pouring their heart and soul into to be featured on a favorite TV show definitely galvanized the team."

The 'sharks' ultimately did not invest in PROVEN, but Zhao said her Shark Tank appearance gave the startup heightened exposure, boosting traffic tenfold.  The startup, which had raised about $6 million in seed investment, has been growing about 35% month-to-month since it launched late last  year, she said. 

PROVEN uses AI and a proprietary database to formulate skin care products based on an individual's skin type and needs. The startup calls its product "the world's most personalized skin care" based on the Skin Genome Project, an award-winning skincare database.

How she got on to Shark Tank

Zhao said her Shark Tank appearance in May was the result of "a serendipitous long arc." One of the show's producers, intrigued by the startup's "technology-first approach to skincare," had approached Zhao in 2018 about being featured on Shark Tank.

"But at that time, we were busy working with our dermatologists and formulators to create the products, so we didn't feel it was the right time for us to engage," she said.

Last year, after successful trials with "beta" customers who offered them "great feedback," Zhao said her team felt it was "the right time to go to Shark Tank." 

But the producer who approached her initially was no longer with the show, so Zhao's team had to go through the selection process.

Zhao, who lives in San Francisco, flew to Portland for an open casting session. "There were many fellow entrepreneurs at the event and the atmosphere is very energizing to be among so many hopeful, excited people who are going out on a limb to make their dreams come true," she said.

She was given an opportunity to tell her story to some of the producers. The startup also prepared a short video pitch clip. A few weeks later, Zhao got the call that PROVEN was in.

Personalizing her pitch for the sharks

PROVEN was the first skin care brand to be featured on Shark Tank in five years, Zhao said. "They usually don't feature skincare brands even though many apply," she said. But the startup's unique technology-based approach to skin care made it stand out. "So they were willing to make an exception."

As part of her pitch, Zhao's team actually prepared personalized skin care products for the Sharks, as the popular TV show's hosts are called.

For example, for businessman Daymond John who is known to travel a lot, Zhao's team created a product that "protected his skin from the dry airplane cabin air." For entrepreneur Lori Greiner, who is often on TV and "is therefore putting on and taking off makeup everyday, we put in extra emollients to soothe her skin barrier," Zhao said.

And for Mark Cuban, Zhao said they had to take into account that the celebrated investor and entrepreneur lives in Dallas, which is known for its "polluted air which can be damaging to our skin."

"So for his personalized skincare set, we put in anti-pollutants including glutathione, ferulic acid and watermelon extract to protect his skin from these daily environmental stressors," Zhao said. "That demonstration really brought to life for the Sharks what personalized skin care is, and why it's so beneficial for each person."

Got a tip about PROVEN or another tech company? Contact this reporter via email at bpimentel@businessinsider.com, message him on Twitter @benpimentelor send him a secure message through Signal at (510) 731-8429. You can also contact Business Insider securely via SecureDrop.

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• Ming Zhao, CEO of PROVEN, an AI-powered skin care startup, explained how she tried to overcome Shark Tank's apparent aversion to supporting tech startups that had already raised. 
• "The sharks are not the most coddling of Silicon Valley entrepreneurs," based largely on the view that tech startup founders or entrepreneurs who are known to have more access to venture capital and other investors, and shouldn't be looking for funding on Shark Tank, she told Business Insider. 
• She also prepared to be called nasty names, including "gold-digger," which was what Mark Cuban called one entrepreneur in a 2017 episode. Another "shark," Kevin O'Leary, called the African-American founders of Lib Bar "colorful cockroaches."
• "I was definitely preparing for that having seen those episodes," Zhao told Business Insider. "I was afraid of being called a cockroach or a gold digger or any of those names."
• While the show's judges ultimately chose not to invest, Zhao says that being on the show was good exposure and led to customers and partners taking PROVEN 
• Click here for more BI Prime stories.

Entrepreneur Ming Zhao, CEO of PROVEN, an AI-powered skin care startup, was excited to make an appearance on Shark Tank, though she knew she had to brace herself to be called nasty names — including "gold-digger" and cockroach.

"Gold-digger" was how Mark Cuban, one of the show's judges, or "sharks," referred to entrepreneur Yunha Kim for seeking to raise more capital for her mediation app company in a 2017 episode. "Colorful cockroaches" was Kevin O'Leary's label during a 2018 episode for a group of African-American entrepreneurs who launched Lip Bar, a lipstick company. 

"I was definitely preparing for that having seen those episodes," Zhao told Business Insider. "I was afraid of being called a 'cockroach' or a 'gold-digger' or any of those names."

Zhao's startup uses AI and a proprietary database to formulate skin care products based on an individual's skin type and needs. The startup calls its product "the world's most personalized skin care" based on the Skin Genome Project, an award-winning skincare database.

Zhao joined an open casting session for Shark Tank and was chosen to appear in an episode recently. She said she knew it was a big break for her startup, but she knew she wouldn't have to just explain her company's technology and business model. She would have to prepare for a grilling by the sharks, who are known for sometimes being mean-spirited and intense towards the entreprenuers on the show.

The sharks did not invest in her startup, but she said being on the program gave them more visibility. In fact, her episode was recently re-broadcast "which means our show got pretty good accolades," she said.

Preparing for a grilling

The experience of Kim, a serial entrepreneur, in a 2017 Shark Tank episode, which can be viewed on YouTube, stood out for Zhao.

During Kim's appearance, Cuban led the grilling, saying, "From an investment perspective, you don't need the cash." To his fellow host, Richard Branson, the Virgin Group founder, Cuban added, "She's a gold-digger."

"No, she's not a gold-digger," Branson disagreed.

"Did you just call me a gold-digger?" Kim asked smiling.

"Yes," Cuban answered.

Businessman Daymond John endorsed Cuban's argument as he pointed to where Kim was standing before the sharks, saying: "There are so many people around the country that stand on that carpet and they've busted their butt and they've mortgaged everything they have to hopefully get $200,000 to $300,000 to run their business. Every time somebody steps on this carpet with a couple of million dollars in the bank you take away the opportunity from somebody who may have lost their home or sold their kids college fund."

Branson chimed in again to defend Kim, saying, "That's so unfair." Branson later recalled in a blog post how that comment led to a misunderstanding with Cuban, and said that they reconciled later.

Zhao said studied that episode closely as she prepared for her own appearance: "They called the woman a 'gold-digger' because they were like, 'Oh, you know you don't you're not desperate for money, and there are all these other entrepreneurs who you know if they didn't have this money then they would go bankrupt' or something like that."

Zhao knew she was in a similar situation since PROVEN had "already raised a healthy amount of seed money." That's shy decided to come up with "a few comebacks that I prepared beforehand."

She said that had the sharks called her a "gold -igger" for seeking more startup capital, she would have responded: "This show is not a charity show. This is a show where great companies go to meet great investors, so that we can both grow and you know really bring these wonderful products to all of America. That's why I'm here."

'The sharks are not the most coddling of Silicon Valley entrepreneurs'

As she expected, there was "a lot of commotion" among the sharks when she disclosed that the company had raised a few million dollars in capital. Ultimately, no one called Zhao a "gold digger" or any other name, but she said her experience underscored what she said Silicon Valley or tech entrepreneurs should understand about Shark Tank.

"The sharks are not the most coddling of Silicon Valley entrepreneurs," based largely on the view that tech startup founders or entrepreneurs who are known to have more access to venture capital and other investors, and shouldn't be looking for funding on Shark Tank, she said. 

Ultimately, she says, while the sharks chose not to invest, her appearance has had a "raw impact" on the startup's traffic, and reaffirms to their partners "that this is a legitimate business."

"There's a lot of cascading benefits from that," she said. "Even our suppliers now take us more seriously because they all watch Shark Tank."

Got a tip about PROVEN or another tech company? Contact this reporter via email at bpimentel@businessinsider.com, message him on Twitter @benpimentelor send him a secure message through Signal at (510) 731-8429. You can also contact Business Insider securely via SecureDrop.

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• Keisha Smith-Jeremie discovered she had a knack for creating unique applesauce concoctions in college, and eventually started her business Sanaia Applesauce in 2017.
• Sanaia has grown to be a six-figure business and in 2018 attracted a producer for "Shark Tank."
• While she ended up turning down a $150,000 investment from Mark Cuban, she's since raised $750,000 through her network to support the business. 
• She's grateful for her role as chief people officer of Tory Burch, as having a full-time job helped her self-fund her company, and makes sure to dedicate her full attention to her 9-to-5 job while growing Sanaia.
• Visit Business Insider's homepage for more stories.

Keisha Smith-Jeremie had an affinity for applesauce as a child that stuck with her as an adult. When the Bahamian native attended the University of Virginia, she found herself searching for comfort and nostalgia after experiencing her first snow and feeling homesick. She decided to make some applesauce in her dorm room and added unique ingredients.

"If you know anybody from the Caribbean, you know we make a lot of different things with fruits because fruits are in such abundance," she told Business Insider. Green apples are plentiful in Virginia's Shenandoah Valley, and she gave making a concoction a try.

"I didn't know that you were supposed to take the skins off or that you're supposed to use red apples, but it ended up just tasting so different," Smith-Jeremie said. "More tart, bolder, but my friends loved it."

She continued to make her applesauce after graduating and as she climbed the corporate ladder, preparing it for the holidays or when she had a craving. It wasn't until 2017, when she started adding flavors from the Bahamas like guava, hibiscus, and tamarind that she realized there was a similarity between her creations and what the brand Chobani was doing with yogurt.

"The founder of Chobani, he brought his cultural flair to yogurt, which was like a pretty sleepy category at the time, and introduced the concept of Greek yogurt to the American palette," she said.

At the same time, she noticed applesauce picking up sales with children as companies found new flavors and ways to package it, like in pouches. 

She decided that she wanted to put applesauce back on the map for adults and started her company Sanaia Applesauce in 2017, named after her goddaughter. 

"We want to be thought of in the same breath as Chobani and Fage as that healthy snack and alternative that's dairy-free," Smith-Jeremie said.

Making a decision on market value

When she decided to start Sanaia Applesauce, Smith-Jeremie knew that part of the equation would be to have objectivity when it came to her business plan. 

"Doing something that you're going to put your money in or ask other people to support financially, you owe it to yourself to take a step back and figure out, is there a market?" she said.

Smith-Jeremie did her due diligence to understand the market, consumers, and price point for her product. She found a 2017 Nielsen Brand Sales report that showed her the applesauce industry was a $900 million market, with a majority focus on children. She felt that it was ready for a disruption in the adult-snacking category. 

Learning how to scale while working full time

At the time, she was the global head of human resources for News Corp. In the beginning stages of Sanaia, she did everything herself, spending the first four months building the business out of her home. She'd wake up at 4 a.m. on weekends and start making batches of her applesauce to package and ship to customers on Monday. 

Her early customers were friends and family who helped create word of mouth for the business. She marketed her business on her website and social media but found participating in events with her products featured as snacks or gifts to be a great way to generate new customers. 

"We developed a beautiful gift box that offered customers the ability to taste all six of our flavors," she said. In September 2017, she moved the business to a commercial kitchen and hired a chef. 

"Over the course of the three years, there have been all of these transitions as an entrepreneur — you hold a lot of the tasks close to yourself, and then you have to learn to then delegate or have others replicate," she said. 

"If your goal is to have a business at scale, you have to get comfortable with the fact that the making of the product gets further away from you," she added. "Your job is basically to project manage that process and make sure that it stays as true to your brand as possible."

She's now the chief people officer of Tory Burch and hired a head of production and business to run the company full time in her absence. Because she kept her day job, Smith-Jeremie was able to self-fund her business. In the first year, she said she spent about six figures on Sanaia Applesauce to launch her e-commerce website operations and fund the first production runs with a copacker to identify the one she would work with. She also self-funded the packaging, including the glass jars and designs.

"I had the ability to do it, but for me, it was really important to make sure that the business got to a certain place before I started asking others to invest in the business," she said. 

'Shark Tank' becomes a lesson in finding the right investors

In March 2018, Smith-Jeremie received an email from an executive producer of "Shark Tank" who came across her website and asked her to apply. She had two weeks to submit her application. 

At that point, Smith-Jeremie hadn't planned to raise money, and she had never pitched her business to investors before she filmed the episode in front of panelists Mark Cuban, Barbara Corcoran, Kevin O'Leary, Lori Greiner, and Robert Herjavec. 

"One of the lessons I've learned as an entrepreneur is that sometimes an opportunity presents itself that is telling you, you are ready for it because I certainly was so scared to do this," she said.

Though viewers see seven minutes of her pitch, Smith-Jeremie said it was a rigorous two and a half hour process in the "Shark Tank" and included a real investor presentation. 

"The sharks are learning about your business for the first time, and they take the time to really dig into the business," she said.

She ended up receiving an offer from Cuban, which was a $150,000 investment and 25% stake in the company, but decided she wanted to raise money on her own for a higher valuation. "I think it just helped solidify my confidence that if I could pitch in a Shark Tank for the first time, then I could pitch," she said.

But she didn't start raising money until her second year of business. She pursued the traditional friends and family round with a nontraditional approach. 

Smith-Jeremie said that as a person of color in "a position to potentially self-fund a business, for a lot of us, we're also the person in our family or in our circle who other people are depending on; I really struggled with that."

Instead, she reached out to her network that she's created from a 20-year career and asked them to leverage their network for funding. 

"Even if they didn't invest in it, my question was, 'Can you open the door for me into your network so that I can raise money?'" she said. To date, she said she's raised over $750,000 to support the business. 

Handling retail and e-commerce distribution amid the pandemic

In summer 2019, Sanaia Applesauce began selling in 800 Walmart stores. Smith-Jeremie's opportunity to partner with Walmart came from a customer who had a relationship with the superstore and offered to make an introduction. Her chance at retail came with many early lessons learned, including understanding the capital required to market a new brand. 

"From a business perspective, the margins are better for us, and it requires less marketing dollars," she said of e-commerce.

COVID-19 has disrupted many supply chains, especially for small-business owners like Smith-Jeremie. Sanaia Applesauce was up to six figures in sales for 2020 until it sold out of product on their distribution channels. The company is trying to get production back up to replenish their stock on Walmart.com and Amazon.

"That was a huge learning curve for us, between COVID-19 and having production challenges, we sold out of the product by March," she said. But, Smith-Jeremie added, every time her "Shark Tank" episode airs, she sees a surge in sales, including a February re-airing that helped her sell out in stores.

Her golden rule for managing a senior role and business

Managing a C-suite job while running a business is no easy feat, but what keeps Smith-Jeremie going is the feeling that Sanaia Applesauce is an idea that was meant for her to build.

"It's one of those things that if I were to stop today, I would have regret," she said. 

Her golden rule is to uphold her commitment to her 9-to-5 role. Smith-Jeremie never makes her team feel like there's a conflict or an influence on her performance. 

"You honor the platform that you're on," she said. "The fact that I have an employer that is 10,000% supportive of my entrepreneurial venture, my job is to make them not feel any diminution of my effort."

SEE ALSO: The founder of popular vitamin brand Ritual was denied funding by a prominent VC for being pregnant — and went on to raise over $40 million. She shares how she found investors who believed in her company.

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