"I'm not gonna give up"— Kobee's founder rejects Kevin O'Leary's offer on Shark Tank

Shark Tank is currently airing season 16 on ABC, and on November 1, 2024, the network released episode 3. The latest episode featured four new entrepreneurs who pitched their ideas in front of the sharks in hopes of making a deal and taking their entrepreneurial journey to the next level.

The season features sharks like Mark Cuban, Kevin O'Leary, Daymond John, and Lori Greiner. Mark Cuban recently announced that he would be retiring from the show after the end of season 16. The episode also featured guest shark Kendra Scott, who is the owner of a jewelry brand.

Kobe Harris, the founder of Kobee's, presented his beeswax lip balm product and asked for $300,000 for a 6% stake. Although the sharks were impressed by Kobe, who started this business on his own, only Kevin made an offer. The Shark Tank investor countered with a request for a 20% stake instead of 6%, which Kobe refused, suggesting he would rather take a bank loan instead.

"So, why can I not go get a loan for $300,000 and spend it on marketing... I'm not gonna give up 20% of my company today," Kobe stated.

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Sharks wanted to bet on Kobe but not Kobee's on episode 3 of Shark Tank

In episode 3, viewers witnessed four pitches from different entrepreneurs seeking funding for their companies. The other three companies featured were Sugardoh Hair Removal, Doatnut Gluten-Free Doughnuts, and Yardsale Magnetic Ski Poles, but none of the owners made an impression like Kobe did when he shared the rise of his company.

Kobe revealed that he wanted to pursue the medical field during his early days of college, but his interests changed when he researched packaging products with one of his sustainability professors. He further revealed on Shark Tank that his mother was also an entrepreneur and supported the sudden change of heart regarding his career.

The company started when Kobe's mother gave him $200, which he used to buy all the raw ingredients. He formulated the product during the summer while working as a lifeguard. After his shift, he would make 50 balms in his room and distribute them to people at the pool where he worked. Kobe shared on Shark Tank that his fortunes changed when he made $3,000 in a single day.

"So, that first summer is really where I started to figure some things out. I had a day where I made $3,000. That was the most money I've ever seen in my entire life in my bank account. I remember it hit. I was like, I was so excited. I was ecstatic," Kobe said.

The growth and sales continued, reaching $10,000 a day, and by the end of that first summer, he sold products worth $15,000 a day. This encouraged Kobe to go into the college portal and exit from all the classes. He initially told his father that he was still attending classes, but in reality, he was busy making lip balms in his basement.

Guest Shark Tank investor Kendra Scott exclaimed that she "loved" Kobe's story and could relate to the young entrepreneur as she started her business similarly. Daymond also recalled his early entrepreneurship days, noting that his mother wanted to start her own business but could not do so as a single mother. Daymond concluded that while he wanted to invest in Kobe but not in this product.

In the first year, Kobee's generated $30,000, next year it brought in $200,000, last year the company did $864,000, while this year it has made $1.5 million. Kobe revealed that he learned to do the marketing himself and showed confidence in learning new strategies, including social media ads.