“I won’t do that” — Shark Tank: Lip bam company owner rejects Kevin O'Leary's offer

Shark Tank season 16, episode 3, premiered on November 8, 2024, on ABC. The episode, titled Yardsale, KOBEE'S, Sugardoh, Doatnut, featured a Lip bam company owner, Kobe Harris, seeking $300K for 6% equity in his company Kobee’s Co.

While the Sharks admired Kobe’s ingenuity and passion for the company, they were hesitant about his company's valuation and shared that it wasn't suited for them.

Kevin O'Leary proposed an offer of $300,000 for 20% equity. The contestant, Kobe, countered with a request to lower the equity to 15%. However, Kevin held firm, and ultimately, Kobe decided to trust his instincts and decline the offer.

“I won’t do that,” Kobe said after the negotiation with Kevin O'Leary fell through.

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Shark Tank: KOBEE'S founder, Kobe Harris, sought mentorship and distribution support

KOBEE'S founder, Kobe Harris, began his company in his bedroom in 2019. He dropped out of college when he sold $15,000 worth of lip balm in one day, believing he could grow it into a business.

"I'm here today seeking $300K for 6% equity in my company, KOBEE'S Co. We believe Mother Nature herself deserves the best kiss. Sharks, let's talk about lips. We all have them, we all use them, but are we treating them right? That's why I created KOBEE'S Co.

The Shark Tank contestant added that they provided 100% natural, handmade, and sustainable lip balms that "don't just lock in moisture, they lock in trust and transparency."

KOBEE'S is made from four simple ingredients: beeswax, coconut oil, sunflower oil, and mango butter. Kobe shared that he started the company with lip balms, but they quickly expanded to a lotion bar, lip scrub, cuticle butter, and even a hand salve.

When Kevin O'Leary asked if he was selling in retail, Kobe responded that his sales are all online at the moment, directed to the consumers through their website and Amazon.

The Shark Tank contestant shared that he started the company as a freshman in college. He was doing research on packaging and bees with one of his sustainability professors. Through that, he got the idea of making all-natural lip balms and personal care products.

Kobe borrowed $200 from his mother to purchase the raw materials and then spent the next three months around his summer vacation formulating the product.

"I really just spent that whole summer formulating. It was like 3 months and then I worked as a lifeguard. So I ended up towards the end of the summer, passing it out to everybody that I can find. I would go home from my shift, make 50 balms in a little hot plate in my bedroom floor, mixing up waxes with the pipe, and filling in one by one... and then hand them out to people at the pool," Kobe shared.

One particular day, he made $3k in sales, which was the most money he had ever seen in his entire life. A month later, he had a day where he made $10k in one day. Then, near the end of summer—just two weeks before classes resumed—he achieved $15,000 in sales in a single day. Afterward, the Shark Tank contestant logged into his campus portal and dropped all his classes.

"That year we did about 30k. The year after that we did about 200k. And then last year we did 864k and this year we've already done a little over 1.5 million today," he added.

Kobe said that he was on Shark Tank because he needed somebody who could guide him and help with distribution. Kevin O’Leary made an offer of $300,000 for 20% equity, which Kobe later lowered down to 15%. However, Kobe decided to trust his gut and rejected the offer.

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Shark Tank season 16 episodes are currently airing on ABC.