"That's so generic" — When Shark Tank investor Mark Cuban chimed on Nicepipes founder Lisa Binderow's pitch

In season 8 episode 13 of Shark Tank, Lisa Binderow, the founder of NicePipes Apparel, presented her business to the panel of investors in hopes of securing a $100,000 investment in exchange for 10% equity. Her company offers leg and arm warmers made from the same material as yoga pants, designed to keep athletes warm while wicking away sweat during workouts.

However, her pitch took an unexpected turn when Mark Cuban, one of the show's prominent investors, questioned her approach to managing the company. The Shark Tank investor stated,

"Because that’s so generic right, you got to have something you fall back on where you say I am so good at this no one can”

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Mark Cuban's critique of Lisa Binderow's pitch on

Shark Tank

The pitch and product overview

Lisa Binderow’s journey to Shark Tank began with a personal need. As a yoga instructor, she often walked to her studio in cold weather and found traditional arm and leg warmers ineffective at keeping her warm. In response, she designed her warmers made from the same material as yoga pants—comfortable, functional, and stylish.

Her product became an immediate success in her yoga classes, prompting her to leave her job and turn NicePipes into a full-time business. Binderow entered Shark Tank seeking $100,000 for a 10% stake in her company.

During her pitch, Binderow explained the business's financials. She mentioned that each unit is sold for $42, with a production cost of $7.50 per unit, which she had lowered from $10. After 18 months of operation, NicePipes Apparel had earned $80,000 in revenue through online sales and partnerships with 40 different yoga studios and gyms.

Despite the product’s apparent potential, Binderow faced skepticism from the investors, particularly regarding the $1 million valuation she placed on her business. She admitted that she wasn't sure how to properly value her company, which raised doubts among the sharks about her understanding of her business's worth and growth potential.

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Criticism and reactions from the Sharks

Mark Cuban’s critical feedback focused on Binderow’s self-description as a business executive. When asked about her core competency, Binderow explained,

“I think that I am a valuable executive. I think that I understand people. I think I understand how to manage people.”

Cuban, however, did not find her response compelling. Cuban's comment about it being "generic" indicated the need for entrepreneurs to showcase a more specific and distinct strength when describing their skills.

In addition to Cuban, other sharks expressed their concerns. Robert Herjavec felt that Binderow's $1 million valuation was unrealistic, calling it "incomprehensible." Kevin O'Leary dismissed the business outright, stating,

"At the end of the day, this is a business that did $80,000. There is no scenario on this planet where this is worth a million dollars. I'm out."

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The rejection and negotiation

Despite the pushback from the other sharks, Binderow maintained her composure and continued negotiating. Barbara Corcoran, who appreciated Binderow’s resilience, offered $100,000 for 40% equity in the business.

Corcoran highlighted that the deal would be contingent on a partnership with Grace and Lace, a company Corcoran had previously invested in. Corcoran believed that such a partnership could significantly help grow NicePipes Apparel, saying,

"They don't spend a dime and all of their sales come through social media so you'd be getting a partner that you really need."

Binderow countered with an offer of 25% equity, but Corcoran held firm at 40%. Ultimately, Binderow chose to decline the offer, stating,

"I appreciate that offer so much but I don't think that I'm willing to give away."

Despite her decision, Corcoran expressed confidence in Binderow’s ability to succeed on her terms. In response to Binderow’s decision to reject the offer, Mark Cuban advised her to “stick" to her guns and show that she made the right move.

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Where is NicePipes now?

NicePipes Apparel remains in business, with its arm and leg warmers available on its official website, priced between $38 and $46, and offering a 20% discount for first-time customers. The company donates part of its proceeds to fitness-based organizations like Bent on Learning and Back on My Feet.

Despite an initial surge in sales and online traffic after Lisa Binderow's Shark Tank appearance in 2017, the brand's presence has significantly declined. Its social media accounts have been inactive since 2018, products on Amazon are mostly out of stock, and there have been few recent updates about the business.

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