"Almost just closed the business" - When Shark Tank company Kreyol Essence's founder got emotional

Kreyol Essence founders Stephane Jean-Baptiste and Yve-Car Momperousse presented their hair care business on Shark Tank season 11 seeking $400,000 for 10% equity in their Haitian black castor oil beauty products company. During the pitch, Lori Greiner asked Yve-Car about her visible emotion. Yve-Car responded with raw honesty:

"That time period was really tough for us in 2016. I mean even to the point where we almost just closed the business down. It challenged our relationship, you know, feeling as if we sort of failed our community, failed ourselves... It's my culture, it's my identity, it's everything that my parents sacrificed to get us here. I mean, we shouldn't be here."

The Shark Tank company business, which started in 2014, had built momentum by reaching $1 million in revenue in 2018 and secured a major retail partnership with Ulta Beauty across 1200 stores.

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Kreyol Essence founder shares heartbreaking past on Shark Tank pitch

Stephane Jean-Baptiste and Momperousse entered the Shark Tank with confidence, showcasing their line of Haitian black castor oil beauty products. The entrepreneurs detailed their company's growth trajectory, highlighting their 2018 revenue of $1 million. Their presentation emphasized their vertically integrated business model, which included ownership of a castor seed plantation in Haiti, allowing complete control over their production process.

Barbara Corcoran stepped away from a potential deal first, expressing worry about the company's dependence on Yve-Car's direct involvement for success. Mark Cuban appreciated their product quality and mission but decided against investing, stating the business model needed refinement.

Daymond John withdrew his interest, mentioning his limited knowledge of beauty industry dynamics. Lori Greiner raised questions about missing clinical trials for their hair growth claims and opted out of investing.

The Shark Tank’s mood transformed when Yve-Car addressed their company's challenges in 2016. Her voice filled with emotion as she described contemplating business closure during that period. She shared how the stress impacted her partnership with Stephane and created pressure regarding their responsibilities to the Haitian community.

The conversation deepened when she connected their business mission to their family background, describing how their parents moved to America seeking better opportunities.

Kevin O'Leary showed interest despite other Sharks' concerns, offering $400,000 for 37% ownership. The founders responded firmly, stating this percentage would significantly dilute their ownership. The negotiation moved through several stages as both parties worked to find acceptable terms.

Yve-Car and Stephane maintained their position while showing openness to creative deal structures. Kevin adjusted his approach, moving toward a royalty-based arrangement that would let the founders keep more equity. The discussion shifted when they proposed combining a smaller equity portion with ongoing royalty payments.

The negotiations led to Kevin O'Leary modifying his proposal to $400,000 for 5% equity with a $0.25 per unit royalty in perpetuity. After careful consideration, the founders accepted this revised structure during the show.

The agreement balanced Kevin's desire for ongoing returns with the founders' wish to maintain majority control of their company.

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Post tank performance

Kreyol Essence experienced significant expansion following their Shark Tank appearance. The company's revenue grew by 540% post-show, reaching approximately $4 million in annual sales. They successfully expanded their retail presence by securing partnerships with major chains.

Their products gained shelf space in Whole Foods Market locations nationwide. The company added JC Penney Salons to its distribution network, marking their entry into the professional beauty market.

Their growth earned recognition in the business community. The company ranked as the 44th fastest-growing company in the Southeast region according to Inc. Magazine's rankings. Their retail partnerships continued to strengthen, with Ulta Beauty maintaining its products as a strong performer in its hair care category.

The Shark Tank company founders ultimately decided not to proceed with Kevin O'Leary's deal after the show aired. They cited concerns about the perpetual nature of the royalty agreement as the main factor in their decision. The founders wanted clarity about long-term involvement and support in exchange for ongoing payments.

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Fans can watch new episodes of Shark Tank on the ABC network.