'%20x='0'%20y='0'%20height='100%25'%20width='100%25'%20%0A%20%20%20%20%20%20%20%20%20%20xlink%3Ahref='data:image/jpg;base64,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'%3E%3C/image%3E%3C/svg%3E)
The Korean barbecue restaurant chain CupBop received $1 million from Mark Cuban on Shark Tank season 13 after multiple Sharks competed for a deal. Founders Jung Song and Dok Kwon entered seeking $1 million for 3% equity, valuing their company at $33.3 million.
After Kevin O'Leary offered a loan deal, Barbara Corcoran proposed 30% equity, Robert Herjavec bid $5 million, and Lori Greiner partnered with Barbara for a joint offer. Mark Cuban stepped in with his proposal and offered $1 million for 7% equity.
“You need someone to propel you in terms of marketing and PR and just to be able to have a national presence so when people talk about Cupbop then people say yeah I know it. I think I can provide that better than anybody because I do have that national platform and I can get word out there better," Cuban stated.
Trending
The final agreement settled at 5% equity after negotiations with Mark Cuban.
CupBop secured Mark Cuban's $1 million investment after five-way battle on Shark Tank
Song and Dok Kwon opened their Shark Tank presentation with a high-energy theatrical performance and showcased their Korean barbecue in cups concept to the Sharks. They asked for $1 million against 3% equity.
The numbers grabbed attention fast - CupBop showed consistent financial growth over five years, moving from $7 million to $8 million, then $9 million and $10 million, with projections hitting $20 million for 2021. Their business model maintained strong margins, spending $1.80 to $2.50 to make each cup while selling at $8 to $10 retail price points.
The Shark Tank company founders shared their background stories. Song created the first CupBop food truck and built it for ten locations. Kwon, initially a customer, later joined after working as an investment banker in New York for seven years.
Their combined expertise in operations and finance strengthened the business foundation. The company demonstrated market success by expanding through company-owned stores rather than seeking external funding rounds.
Kevin O'Leary moved first with a structured deal of $1 million as a loan, charging 10% interest plus 3% equity. Barbara Corcoran followed with a straightforward equity proposal of $1 million for 30% ownership.
Robert Herjavec raised the stakes substantially by putting $5 million on the table for 28% equity. Lori Greiner and Barbara Corcoran then jointly offered a $1 million loan in exchange for 5% equity.
When it came to Mark Cuban, Shark Tank investor first acknowledged CupBop's efficient operations and highlighted his ability to boost their national presence. His experience with health-focused businesses in his portfolio added weight to his offer. Cuban laid out a clear value proposition - $1 million for 7% equity, focusing on marketing amplification and PR support.
While other Sharks focused on operational aspects, Cuban stressed visibility and brand recognition. He pointed to his track record of transforming regional brands into national names. The pitch resonated with Song and Kwon's expansion goals for CupBop, as they aimed to establish the first nationwide Korean barbecue chain.
Final negotiations
The Shark Tank company founders responded strategically to Cuban's 7% equity request. They acknowledged the value of his marketing platform but countered with 4.5% equity. This move initiated rapid negotiations between both parties. As discussions progressed, other Sharks maintained their original offers but didn't adjust the terms.
Song and Kwon evaluated each proposal carefully. Kevin's debt structure would add monthly payment obligations. Barbara and Robert's higher equity asks would mean giving up more control. Lori and Barbara's joint offer matched Cuban's equity range but lacked his marketing muscle.
The final agreement emerged at the midpoint. Cuban and the founders settled on $1 million for 5% equity, valuing CupBop at $20 million. This compromise balanced the founders' desire to maintain control while gaining Cuban's marketing expertise and national platform.
The Shark Tank deal wrapped up with handshakes and celebration, marking the end of an intense negotiation session.
Catch new episodes of Shark Tank on the ABC network.
