"I'm in it for the long run" — When Shark Tank's Robert Herjavec invested in Stryx

Season 13 Episode 23 of Shark Tank saw Jon Shanahan and Devir Kahan seek $600,000 for a 5% stake in their company, Stryx, a unique makeup line tailored for men. The company's goal to make men's grooming easier and more acceptable appealed to Robert Herjavec, who was impressed by their sales. Consequently, he offered an equity deal, without any conditions, hoping to shake hands on it.

"I'm in this. I don't want to go in this for a short time. I don't need a royalty. I'm in it for the long run. We're gonna build something and let's go for it," Robert said.

After some thought, Jon and Devir finalized the agreement with Robert, who offered $600,000 in exchange for a 10% stake in Stryx. The founders of Stryx had another offer from Kevin O'Leary. However, they declined it since it asked for royalty on top of a 2.5% equity.

Stryx grew quickly after its appearance on Shark Tank as products made their way onto the shelves of CVS. However, by 2022, Stryx relocated to Target and Urban Outfitters with a revenue of $1.5 million. In 2023, Jon and Devir sold the company to Foundry. As of 2024, Jon is the vice president of Marketing at TRX Training, while Devir is a co-founder at Credistry.

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"Hit a new low" — Shark Tank investor Robert slams Kevin's offer to Stryx

During their Shark Tank demonstration, Jon and Devir revealed Stryx was the first cosmetic and skincare brand that came with custom formulations and packaging geared toward men. Their product line included a concealer, a tinted moisturizer, an energizing eye tool, a brow and beard gel comb, and more, each designed to cater to men's skincare needs.

After the Sharks tested some samples Lori Greiner expressed concern over their packaging and company name, as neither advertised nor hinted at what the product was. She backed out of making an offer due to the lack of clarity and direction. Meanwhile, Daymond John also decided not to invest, voicing his disagreement with their $12 million valuation.

Mark Cuban, on the other hand, appreciated the avenue they ventured into. However, he disapproved of their approach.

"You try to hide the fact that it's makeup a little bit. I think you gotta own it more because that's the only way you're gonna change hearts and minds," the Shark Tank investor explained.

Mark added that if they could persuade the "bro culture," they could leave a mark in the beauty industry. However, at that time Mark removed himself from consideration, encouraging the founders to tweak their presentation.

Meanwhile, Kevin appreciated the product, claiming that it had the potential to do well in the market. However, he was not fond of their valuation or ask. Consequently, he came up with his own proposal that offered $300,000 as a factoring loan at an interest rate of 11.5% for a duration of 36 months.

The remaining $300,000 would be offered in exchange for 2.5% equity along with a $2 royalty until $600,000 was paid off; after that, the royalty would drop to 25 cents in perpetuity. Hearing Kevin's offer, Robert remarked:

"Kevin, I think you actually hit a new low with this offer. Not only are you being a lone Shark you're also adding a royalty to it."

The Shark Tank investor advised the entrepreneurs not to take Kevin's offer and do a deal based solely on equity. Robert offered $600,000 for 10% equity, and refused to lower his ask to 7.5% when countered. After some deliberation, Jon and Devir declined Kevin's proposal, shaking hands with Robert.

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Shark Tank Season 16 airs new episodes every Friday at 8 pm ET/7 pm CT exclusively on ABC.