"Take it behind the barn" — When Kevin O'Leary declined Liberate founder's royalty proposal on Shark Tank

In Shark Tank season 13 episode 11, Liberate Studio founder Olivia Bowser pitched her mental fitness startup, seeking $200,000 for 10% equity at a $2 million valuation. After Mark Cuban, Robert Herjavec, Daymond John, and Lori Greiner declined, Bowser turned to Kevin O'Leary with a last-minute royalty suggestion. In the episode released in December 2021, O'Leary responded immediately, saying:

"This idea is going to zero. You will never make any money. Oh God, you will never get an investor. Take it behind the barn and shoot it and do something else. I'm out."

The pitch ended with zero offers. However, by 2024, Liberate Studio has served over 200 corporate clients, as per Shark Tank Recap. Bowser earned a spot on last year's Forbes 30 Under 30 list. The company, which started during the 2020 pandemic shutdown as a virtual wellness service, now operates with 10 instructors as a profitable six-figure business.

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Shark Tank season 13 sees all Sharks decline Liberate Studio pitch

Olivia Bowser walked into Shark Tank carrying a yoga mat and journal, ready to share her vision for mental wellness training. She structured her company around virtual classes and training sessions.

Her business offered two main services. Basic membership gave access to recorded content for $19 monthly. Premium members paid $49 monthly for live virtual classes. She focused heavily on business clients, who made up 65% of her revenue stream.

The Liberate Studio founder reported $50,000 in total sales since starting the company. Her most recent monthly revenue at the time reached $7,500. She maintained 90% profit margins on her services. Her team included certified meditation teachers and yoga instructors who created new content weekly. They added four fresh classes to their library every seven days.

She explained on Shark Tank how she built her business model, combining traditional fitness class structures with mental wellness techniques. Her program included confidence-building exercises, stress management tools, and meditation practices.

The subscription model allowed clients to access both recorded sessions and live training. Corporate packages offered team-building activities and group wellness programs. Her pitch emphasized the growing demand for mental wellness solutions in workplace environments.

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Shark reactions

Mark Cuban responded first with his market insights. The Dallas Mavericks owner mentioned his team already employed full-time psychologists. He also questioned the scaling potential at current price points. Robert Herjavec followed, raising concerns about market timing and stating that the business stood too early in its growth cycle for investment. The numbers failed to show enough market traction to justify the valuation.

Lori Greiner examined the business model. She acknowledged the mission but cited concerns about execution. Daymond John agreed with his fellow Sharks about market readiness. After both highlighted gaps in the current strategy, the discussion shifted to pricing strategy when Kevin O'Leary took his turn.

Then, the $2 million valuation came to light. Shark Tank investors questioned how Bowser calculated her company's worth with $50,000 in lifetime sales. While Robert Herjavec pointed out issues with the corporate program pricing structure, Mark Cuban suggested the fees ran too low for B2B services.

Additionally, a monthly revenue of $7,500 indicated limited market penetration. The Sharks saw challenges in growing beyond current numbers at existing price points. O'Leary delivered his final verdict with the barn statement, marking the end of investment discussions.

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Post-show developments

As per Shark Tank Blog, Liberate Studio changed its course in 2022, expanding its corporate client base to over 200 businesses. Service offerings grew to include team-building programs and single-event packages. Furthermore, the instructor team expanded from one to ten certified professionals.

Bowser's achievements also gained media recognition, with The Washington Post, Forbes, and Business Insider featuring her company's growth story. Liberate Studio added product lines, including branded merchandise and mental fitness journals. By July 2024, the business operated as a profitable six-figure enterprise, showing significant growth from the company's initial Tank appearance.

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Fans can watch new episodes of Shark Tank on the ABC network.