"No point"- When Shark Tank investor Robert Herjavec rejected Calm Strips for discussing with Lori Greiner

Robert Herjavec secured a deal with Calm Strips during Shark Tank season 13 following a dramatic negotiation. Michael Malkin and Luce Fuller pitched their anxiety management product, seeking $250,000 for 10% equity. Their presentation showed $2.5 million in first-year sales, with a return rate of less than 1%.

Kevin O'Leary offered a royalty deal, while Robert proposed $250,000 for 35% equity, before revising to a royalty structure. During negotiations, Malkin and Fuller turned to discuss options with Lori Greiner, which caused Robert to drop out. Herjavec immediately commented,

"Hang on. Look, I learned a long time ago, there's no point in crashing a party that people don't want you in. You obviously don't want to deal with me. I'm out."

However, after further discussion, they managed to bring Robert back to the table and finalized a deal with no equity for $250,000, with a royalty of $2.50 per unit until $250,000 repayment, followed by $1.50 per unit until reaching $750,000.

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Calm Strips secured a deal with Robert Herjavec on Shark Tank despite a temporary exit

Malkin and Fuller started the Shark Tank presentation for Calm Strips by showing two distinct textures—sandy and "river rock" patterns. The strips can stick to phones, computers, or any surface where users want quick access to sensory calming. Their pricing structure revealed $12.99 for a pack of five strips, with classroom packs of 30 selling for $49.99.

The founders shared their origin story, explaining how Malkin created the product while managing an Apple Store, to handle workplace stress. The Shark Tank presentation highlighted their distribution in over 3,000 classrooms across the US.

With five full-time employees and more than 100,000 customers since their April 2020 launch, the company showed strong market validation. Their profit margins proved compelling; production costs ranged from $1 for sandy texture to $2 for river rock texture strips.

Robert Herjavec connected personally with the product, sharing that several of his family members with autism benefit from tactile objects for calming. His opening offer of $250,000 for 35% equity valued the company at approximately $714,000. The founders expressed concern about the equity percentage in this deal, calling it "a lot of percents."

Kevin O'Leary then stepped in with an alternative structure - $250,000 for zero equity but demanding $2.50 per unit until recovering his investment, plus $1 per unit ongoing.

This prompted Herjavec to modify his deal, matching O'Leary's royalty concept but with a finite cap. Herjavec's revised offer kept the $250,000 investment and proposed $2.50 per unit until repayment, followed by $1.50 per unit until reaching $750,000 total.

However, the deal dynamics changed when Malkin and Fuller asked about Lori Greiner's potential interest. Herjavec immediately pulled his offer, making his position clear with his statement about not wanting to 'crash parties where he is not wanted.' Malkin and Fuller then tried to re-engage Herjavec, with a new proposal of $250,000 for 20% equity.

This counter-offer came after Lori mentioned she would structure a deal similar to Kevin's while also wanting 8% equity. Meanwhile, despite the founders' efforts to bring Herjavec back to negotiations, he outright declined their 20% equity proposition. The entrepreneurs made one final attempt by asking if Herjavec would return to his last royalty-based offer, which Robert accepted, securing the deal.

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Development after Shark Tank

As per Shark Tank Blog, the company expanded significantly after its show appearance, reaching 240 retail locations by November 2023. Their product line grew to include new items such as Box Breathing sets and custom strip options. The financial growth continued steadily, with annual revenue of over $1 million, as their total customer base grew beyond 200,000 users.

By July 2024, Calm Strips achieved $10 million in lifetime revenue. The company maintained its presence in educational markets while expanding into new retail channels. The retail expansion included major outlets like Walmart's online platform, marking significant distribution growth from their initial direct-to-consumer model.

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Watch new episodes of Shark Tank season 16 airing on ABC network.