"Highest valuation ever"— When Shark Tank entrepreneur asked $50 million valuation

Justin Wang presented his self-cleaning water bottle company Larq to Shark Tank investors in season 12 episode 18, asking for $500,000 in exchange for 1% equity. As Wang requested the $50 million valuation, Mark Cuban and Daymond John burst into laughter.

"Congratulations, highest valuation ever requested in the Shark Tank," Kevin O'Leary remarked.

The numbers backed Wang's confidence. Larq maintained $6.5 million in cash reserves, recorded $9 million in recent sales, and sold bottles at $95 with $40 production costs. The company demonstrated strong market performance since 2017 through successful crowdfunding campaigns and retail partnerships.

Wang protected his innovation with 10 patents while expanding distribution channels.

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Self-cleaning water bottle pitched at $50 million on Shark Tank

After Justin Wang pitched the product, the Shark Tank investors responded immediately to a $50 million valuation. Daymond John spoke first, announcing his exit. He pointed to Larq's substantial bank balance of $6.5 million as proof they didn't need additional investment. Mark Cuban followed similar reasoning and stepped away from negotiations.

Kevin O'Leary made the first offer, proposing $500,000 for 4% equity. Lori Greiner countered with $500,000 for 5%. Robert Herjavec presented a third option, offering $500,000 for 3% equity plus 2% in advisory shares. The multiple offers validated Wang's business model despite initial reactions to the valuation.

Wang assessed the three offers and proposed a strategic counter. He invited all three Sharks to invest together, suggesting a $1.5 million total investment for 4.5% equity plus 1% in advisory shares. This structure would have provided $500,000 from each Shark while maintaining a strong company valuation.

Robert Herjavec withdrew his interest after the counter-proposal. However, Lori Greiner and Kevin O'Leary saw an opportunity to collaborate. They joined forces to offer $1 million, splitting the investment equally between them for a total 4% equity stake, which Wang accepted.

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Product background

Wang established Larq in July 2017 to address drinking water purification challenges. The company's first major success came through Kickstarter, where backers contributed $1.37 million for the innovative water bottle. By December 2017, the campaign closed with strong market validation. Wang shipped all products by July 2018, meeting delivery commitments to early supporters.

The company maintained strong financial momentum. Their 2019 performance showed $5.5 million in sales. The growth accelerated as they approached their appearance, reaching a $9 million run rate. Wang projected $14 million in revenue for the upcoming year (2020), based on sustained sales velocity and expanding distribution channels.

The Larq bottle's UV-C LED PureVis technology stood as its key differentiator in the water bottle market. This sanitization system matched methods used in medical facilities for sterilization. Users could choose between two cleaning modes based on their needs.

The standard mode completed a cleaning cycle in 60 seconds for regular usage. A second intensive mode ran for three minutes when users needed extra purification assurance.

The company protected its technological advantages through a comprehensive patent portfolio covering 10 unique innovations. These patents secured Larq's market position while they expanded product lines. Shark Tank entrepreneur revealed plans for a water pitcher using similar purification technology, showing potential for market expansion beyond portable bottles.

The company demonstrated social responsibility by donating 1% of its revenue to organizations working on clean water access globally. This initiative aligned with their mission of providing safe drinking water solutions.

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Post-tank performance

Shark Tank investor Kevin O'Leary (Image via Getty)

As per Shark Tank Blog, while Wang accepted this partnership deal on camera, the agreement with Lori and Kevin didn't proceed to closing. Instead, Larq secured over $10 million in funding from external investors. The company expanded distribution significantly, placing products in major retail chains including Best Buy, Bloomingdale's, and Williams Sonoma.

By 2023, Larq's annual revenue reached $30 million with continued growth in both direct-to-consumer and retail channels. The company maintained its original vision while scaling operations and market presence without Shark Tank investment.

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Shark Tank season 16 is airing on ABC network.