"25 or nothing" — When Shark Tank's Kevin O'Leary gave ultimatum to mcSquares

In Shark Tank season 11 episode 23, Anthony Franco presented mcSquares, seeking $300,000 for 10% equity. To highlight office waste, he scattered thousands of sticky paper notes across the stage. The magnetic whiteboard creator shared sales numbers of $214,000, with a monthly revenue of $110,000.

After the pitch, four sharks declined to invest. However, Kevin O'Leary stepped forward with an offer of $300,000 for 25% equity. Franco requested a reduction to 20% equity, but O'Leary responded firmly:

"No. I've been where you are already multiple times, my friend. This is not going to be easy. It's hell for me. That's 25 or nothing. What do you want to do?"

Franco accepted the original terms. However, according to Shark Tank Blog, the partnership later changed to $50,000 for 11% equity.

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mcSquares leave Shark Tank with Kevin O'Leary’s deal in season 11

The mcSquares’ presentation on Shark Tank focused on workplace efficiency and sustainability. Franco demonstrated how one pack of mcSquares magnetic boards could replace 12,000 paper sticky notes. The math made business sense. A mcSquares pack retailed at $20, while 1,000 paper sticky notes cost $22.

The company manufactured all its products in Colorado, ensuring quality control under direct supervision. Franco's track record included selling five previous companies. His awards included 74 technology honors, 62 design recognitions, and 37 innovation acknowledgments.

At the time of the pitch, the Shark Tank company had generated $214,000 in revenue, with a monthly income of $110,000 and year-end projections aimed at $1 million. Between 2017 and 2019, three separate Kickstarter campaigns raised $65,563 for development and expansion. The company also showed social responsibility by supporting Trees for the Future.

The mcSquares concept came from Franco's consulting work. He noticed that while many meeting participants stayed quiet during discussions, they shared valuable ideas in writing. This observation led to the development of magnetic tablets. The design featured three distinct surfaces that stacked together. Users could write on a whiteboard, blackboard, or clear surfaces based on their needs.

Each surface magnetically attached to walls or boards. Early production faced obstacles when a manufacturer lost the product molds. This setback impacted inventory but pushed the team to improve their supply chain.

Mark Cuban was the first to exit the negotiations, citing a conflict with a similar company already in his investment portfolio. This conflict prevented his participation despite showing interest in the concept. Lori Greiner evaluated the products carefully. She appreciated the design but stated magnetic boards did not spark enough passion for investment.

Rohan Oza pressed Franco about sales projections. The numbers raised questions when Franco explained manufacturing complications. Barbara Corcoran observed Franco's communication style. She noted his tendency to provide extended answers.

When asked about his organizational skills, Franco admitted there was room for improvement. In the end, only Kevin O’Leary remained interested and eventually invested.

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Post Tank development

The mcSquares growth story turned significant after the show aired. As per Shark Tank Blog, the company secured a major contract with Michigan's Novi School District, supplying 6,000 whiteboards for students and teachers. Business expansion required larger facilities, leading the team to relocate to a 25,000-square-foot building in Thornton, Colorado.

Sales grew 600% in 2020, driven by the rise in remote work and increased demand for home office solutions. The company launched additional crowdfunding campaigns on Start Engine and WeFunder, raising over $650,000. The brand also changed its name to M.C. Squares. Product distribution expanded through Amazon and direct website sales.

However, in December 2023, the Shark Tank company filed for Chapter 11 bankruptcy protection. Financial records showed approximately $900,000 in assets, while operating losses reached $5.7 million, and creditor obligations totaled $3.4 million. Kevin O'Leary remained among the creditors.

The company attributed its bankruptcy to rapid scaling attempts and cash flow management issues. Despite the setback, the reorganization plan aimed to stabilize the business, and its Amazon store continued to maintain full stock levels.

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Shark Tank season 16 is airing on ABC network.