Mark Cuban, Kevin O'Leary and Other Sharks Reject Young CEO Doing Better Than 90% of Entrepreneurs They Meet

Sophie Nistico, the 24-year-old founder of Connecticut-based apparel brand See The Way I See, appeared on ABC's "Shark Tank" with all the pieces in place for a big investment deal. She had started her business in 2020 with just $500, and by the time of the episode's taping, she had brought in an impressive $2.3 million in year-to-date sales. Despite spending no money on advertising because of a large social media presence, Nistico had more than $400,000 in the bank.

Don't Miss: Why Jason Calacanis and Other Silicon Valley Elites Are Betting On This Startups Vision For Re-Uniting American Families

Nistico’s business sells clothing emblazoned with mental health-related phrases, a concept born out of her personal experiences battling severe anxiety throughout high school and college. The initial success of See The Way I See came from the sale of mental health-based stickers on social media that sold out in just two days, far exceeding Nistico’s expectations. The success of the stickers allowed her to expand into apparel.

But despite Nistico’s impressive accomplishments, every Shark declined her request for $250,000 in exchange for 10% of her company's equity. The simple reason behind this decision was that the panel didn’t see any way to help her get better. Daymond John told her, "What do you need a Shark for? You're doing so well." Similarly, Mark Cuban added, "You are making a boatload of money. You're a star." Nistico received high praise but not the investment deal she had hoped for.

The investors were impressed with Nistico’s success, considering her lack of business experience. Kevin O'Leary stated, "This thing where you don't know anything about business, I don't really buy it anymore. You're doing better than 90% of the people who stand in front of me there." Cuban and Lori Greiner went further, saying it would feel morally wrong to take a percentage of Nistico's company without being able to offer her mentorship in return.

Cuban offered Nistico some heartfelt entrepreneurial wisdom, saying, "Let your community grow your business, not a team. Be who you are to your community and you'll grow with it. And you don't want an investor for that because you're already putting money in the bank and all we'd be doing is taking what you earned."

To stay updated with top startup news & investments, sign up for Benzinga's Startup Investing & Equity Crowdfunding Newsletter

Although Nistico didn't secure a deal, she left the show feeling more confident than ever before. "That was really difficult for me to do, but they really did give me a boost of self-confidence," Nistico said. "After today, I really feel as though I can do anything."

Since appearing on "Shark Tank," Nistico has continued to grow her business. Her website showcases a range of T-shirts, sweatshirts and hats featuring mental health-related slogans such as Mental Health Matters and End the Stigma. In addition to her successful business, Nistico has used her platform to raise awareness about mental health issues and share her own experiences. Her Instagram account has grown to over 44,000 followers, with her posts and stories focused on destigmatizing mental health and promoting self-care.

It’s not every day that a company gets turned down on the show for being too successful. But when an entrepreneur is already thriving, the investors may feel that their resources could be better used by helping another business that could benefit more from their expertise and guidance. 

Want to invest like a Shark?

Thanks to changes in federal law, anyone can invest like the sharks. Kevin O'leary-backed StartEngine allows anyone to browse dozens of the top startup investments and invest in startups, like the sharks. This includes the ability to invest in StartEngine itself for a limited time.

See more on startup investing from Benzinga.

Posted In: NewsStartupsDaymond JohnKevin O'LearyMark CubanShark Tankstartup crowdfundingstartup investingVenture Capital
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...